Recruitment of life advisor - kotak

Chapter-1 INSURANCE-OVERVIEW

INTRODUCTION
Insurance may be described as a social device to reduce or eliminate risk of life and property.

Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of Insurance, large numbers of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. Every business is exposed to different types of risks such as fire, theft, burglary, accident, etc., Some of the risks can be transferred to specialized institutions known as Insurance companies. Insurance is nothing but socialization of risks. Insurance companies indemnify the loss of the insured

EVALUATION OF INSURANCE
The evaluation of insurance dates back as early as the commencement of trade between two countries in England, especially between the European countries. During the transportation of goods, there were chances of the ship being drowned in the rough sea conditions or attacked by the pirates, leading to a huge loss to the party sending the goods. The traders of England devised a way whereby the loss of goods would be compensated by every trader putting in some amount as per their financial strength so that a single party may not be the loser. This is the earlier concept of insurance. This concept is taking shape for the last 300 years, yet in India the first insurance company was established in 1818 with the advent of Europeans widows. The name of the company was Oriental Life Insurance Company

MEANING OF INSURANCE
Insurance is a mechanism that ensures an individual to thrive on adverse consequences by compensating the individual, his/her loss financially. Every individual in the world and all activities connected with him/her, be it life, profession, business, travel or any other pursuits are subject to unforeseen and uncalled for hazards or dangers. The benefit that an individual enjoys in his life by owning a car or a house or a factory can be snatched by sudden accident which can render even the individual immobile, and his family vulnerable. At this critical juncture, only insurance helps him not only to survive but also recover his loss and continue his life in a normal manner, which would otherwise be unthinkable.

The concept of insurance is quite simple. People, who are in similar trade and are exposed to the same risks, congregate and some to an agreement that if any individual member suffers a loss, then the loss will be shared by others and minimized in order to enable the individual member recover from the loss and

cover his ground. Similarly the different kinds of risks can be identified and separate groups can be formed to counter such risks and reduce the impact to a manageable proportion, in which the share could be collected from the members either after the loss or in advance, at the time of admission to the group. This is an exemplary sign of humanity and insurance therefore serves the mankind to a great extent; a point most of the individuals tend to overlook, since monetary aspect is involved. Now such is for tangible assets. The concept of insurance has been extended beyond the coverage of tangible assets. Exporters run the risk of importers in other country defaulting as well as losses due to sudden fluctuations in the currency exchange rates, economic policies turmoil. These risks are now insured. Doctors run the risk of being charged with negligence and can subsequently liable for damages. The amount in questions can be fairly large, beyond the capacity of individuals to bear.These are insured. Thus insurance is extended to intangible assets. In some countries even the voice of a singer, legs of a footballer can be insured, even though the advantage of spread may not be available in these cases. Satisfaction of economic needs requires generation of income from some source. If the property, which is the source of such income, were lost fully or partially, permanently or temporarily, the income too would stop. The purpose of insurance is a safeguard against such misfortunes few, through the help of the fortune many, who were exposed to thsame risk, but saved from the misfortune. Thus the essence of insurance is to share losses and substitute certainty by uncertainty.

INSURANCE IN INDIA
In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers’ contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular. So Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in 1870. Other companies like Oriental, Bharat and Empire of India were also set up in the 1870-90s.

In early 20th century, it was during the swadeshi movement that insurance witnessed a big boom in India with several more companies being set up. As these companies grew, the government began to exercise control on them. In 1912, The Insurance Act was passed, followed by a detailed and amended Insurance Act of 1938 that looked into investments, expenditure and management of these companies' funds. In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure

to regulate life business.
In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies.

In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers. In 1950, The Insurance Amendment Act of 1950 abolished Principal Agencies. By the mid-1950s, there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies. Level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. In 1956, The Life Insurance Corporation of India was set up to take over around 250 life companies. An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all.

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 The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. For years thereafter, insurance remained a monopoly of the public sector. It was only after seven years of deliberation and debate - after the RN Malhotra Committee report of 1994 became the first serious document calling for the re-opening up of the insurance sector to private players -- that the sector was finally opened up to private players in 2001.

IRDA - The Insurance Regulatory & Development Authority,
An autonomous insurance regulator set up in 2000, has extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders’ interests.

GENERAL INSURANCE

LIFE INSURANCE

DEFINITIONS OF INSURANCE: GENERAL DEFINITION:
In the words of JOHN MAGEE “ Insurance is a plea by which by which large no of people associate themselves and transfer to the share holder of all risk that attach to individual“

FUNDAMENTAL DEFINITION:
In words of DS HAUSELL “Insurance may be defined as a social device providing financial compensation of for the effects of misfortune, the payment being made from the accumulated contribution of all parties participating in the scheme”

CONTRACTUAL DEFINITION:
In the words of JUSTICE TANDEL “Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a contingency “.

FUNCTIONS OF INSURANCE:
Primary functions ? Provides protection: insurance cannot check the happening of risk but can provide for losses of risk. ? Collective bearing of risk: insurance is a device to share the financial losses of few among many others. ? Assessment of risk: insurance determines the probable volume of risk by evaluating various factors, which give rise to risk. ? Provide certainty: insurance is a device, which helps to change from uncertainty to certainty. Secondary functions ? Prevention of losses: insurance cautions businessman and individuals to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions. ? Small capital to cover large risk: insurance relieves the businessman from security investment, by paying small amount of insurance against large risk and uncertainty.Contribute towards development of large industries

LIFE INSURANCE

Life insurance contract may be defined as the contract, whereby the insurer in consideration of a premium undertakes to pay a certain sum of money either on the death of the insured or on the expiry of a fixed period whichever is earlier.

Types Of Life Insurance Policies Are: TERM INSURANCE POLICY WHOLE LIFE POLICY ENDWOMENT POLICY MONEY BACK POLICY ANNUITIES AND PENSION
Most of the products offered by Indian life insurers are developed and structured around these "basic" policies and are usually an extension or a combination of these policies. So, what are these policies and how do they differ from each other? TERM POLICY: This policy covers the risk only, during a particular period. The sum assured is payable only if death happens during the term. Under this policy premium rate is lower than any other policy. Now days in order to attract more people, policies are issued with the condition that the premium paid will be returned after the term is over, if death does not occur. A term insurance policy is a pure risk cover for a specified period of time. What this means is that the sum assured is payable only if the policyholder dies within the policy term. For instance, if a person buys Rs 2 lakhs policy for 15-years, his family is entitled to the money if he dies within that 15-year period.

If he survives the 15-year period, then he is not entitled to any payment; the insurance company keeps the entire premium paid during the 15-year period. So, there is no element of savings or investment in such a policy. It is a 100 per cent risk cover. It simply means that a person pays a certain premium to protect his family against his sudden death. He forfeits the amount if he outlives theperiod of the policy. This explains why the Term Insurance Policy comes at the lowest cost. WHOLE LIFE POLICY: In whole life policy the sum assured is payable to the legal heir only on the death of the assured. It is to protect and support the family of the assured after his death. Under this scheme, premium may be payable throughout the life of the assured or for a limited number of years. As the name suggests, a Whole Life Policy is an insurance cover against death, irrespective of when it happens. Under this plan, the policyholder pays regular premiums until his death, following which the money is handed over to his family. This policy, however, fails to address the additional needs of the insured during his postretirement years. It doesn't take into account a person's increasing needs either. While the insured buys the policy at a young age, his requirements increase over time. By the time he dies, the value of the sum assured is too low to meet his family's needs. As a result of these drawbacks, insurance firms now offer either a modified Whole Life Policy or combine in with another type of policy. ENDOWMENT POLICY: Combining risk cover with financial savings, endowment policies is the most popular policies in the world of life insurance.
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In an Endowment Policy, the sum assured is payable even if the insured survives the policy term.

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If the insured dies during the tenure of the policy, the insurance firm has to pay the sum assured just as any other pure risk cover. A pure endowment policy is also a form of financial saving, whereby if the person covered remains alive beyond the tenure of the policy; he gets back the sum assured with some other investment benefits. In addition to the basic policy, insurers offer various benefits such as double endowment and marriage/ education endowment plans. The cost of such a policy is slightly higher but worth its value.

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MONEY BACK POLICY:
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These policies are structured to provide sums required as anticipated expenses (marriage, education, etc) over a stipulated period of time. With inflation becoming a big issue, companies have realized that sometimes the money value of the policy is eroded. That is why with-profit policies are also being introduced to offset some of the losses incurred on account of inflation.

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A portion of the sum assured is payable at regular intervals. On survival the remainder of the sum assured is payable. In case of death, the full sum assured is payable to the insured. The premium is payable for a particular period of time. ANNUITIES AND PENSION:

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In an annuity, the insurer agrees to pay the insured a stipulated sum of money periodically. The purpose of an annuity is to protect against risk as well as provide money in the form of pension at regular intervals. Over the years, insurers have added various features to basic insurance policies in order to address specific needs of a cross section of people. Generally in life insurance, policies may be with profit or without profit. In case of with Profit policy, the assured not only gets the policy amount on maturity but also a share in the profits of the insurer called ‘bonus’. But in case of Without - Profit policy, the

policyholder gets only the policy amount on maturity. The premium rate is lower for this policy, compared ‘With - Profit Policy’.

There are some other life insurance policies which are:
Group insurance policy: Group insurance is a plan of insurance, which provides coverage to a number of persons under one contract. Group insurance is available to the following groups. a) Employer - Employee groups Here employer takes out a master policy for the benefit of his employees. Master policy is in the name of the employer or a trust formed to administer the scheme. b) Labour Union Group A master policy is taken out by any trade union for the benefit of its members. The cost is met from the Union’s fund. c) Creditor - Debtor Group The master policy is taken by the creditor to cover the outstanding amount of Loans granted to debtors. In case of death of a debtor the claim amount can be applied towards the repayment of loans outstanding in his name.

Children’s Deferred Assurance (C.D.A): Minor children cannot enter into insurance contract by themselves. Under this policy, parent or guardian takes the policy on the life of the child. The proposer pays the premium. The Premium rate will be low. This policy develops thrift among children.

CONCEPTS OF LIFE INSURANCE: 1. Protection for the family:
The most important objective of life insurance is to provide financial protection for the family in case of an unexpected and premature death of its breadwinner. The purpose is to protect the dependents against the loss of earning power of the insured through death or disability. Those who have insured their lives for an adequate sum can live in peace and comfort, free of the gnawing worry of what would happen to their families in the event of their sudden and premature death. Life insurance has long been recognized as a necessary and essential element in a family’s total financial program.

2. Regular Savings:
Saving is not physical need, unlike hunger or sleep. Many of us may not save unless there is compulsion to do so. For such people, life insurance is a compulsory, regular savings scheme, especially the monthly salary savings schemes. Life Insurance gives the benefit of an accumulated saving at the end of a fixed term or also on regular intervals.

3. Liability Cover:
We in our lives create liabilities, for example a housing loan, a car loan or any other type of loan. It would be of immense difficulty to the family if the breadwinner of the family who had taken the loans meets with an eventuality. A life insurance policy provides the family with the security of the assets, which the individual had created in his life.

4.Annuities for Regular Income during Retirement:
Annuity products or pension offer the benefit of a regular income during the period of retirement. It can be very useful to help maintain the regular expenses and the same standard of living as one enjoyed pre-retirement. It can also help provide for some additional responsibilities like arranging wedding or higher education costs of children.

5. Tax Benefit:
There is a tax rebate under Section 88 on life insurance premium. Many investors, used to buy life insurance mainly to take advantage of these tax benefits. Additional tax benefits are available under Section 80DD and Section 80CCC applicable to specific schemes. Also returns are tax-free u/s 10(D).

ROLES OF LIFE INSURANCE:
Risks and uncertainties are part of life’s great adventure—accident, illness, theft, natural disaster – they’re all built into the working or the Universe, Waiting to happen. Role 1: Life insurance as “Investment” Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, may are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment option, and this is besides the added incentives (read bonuses) offered by insurers. You cannot compare an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total is missing in noninsurance products. In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings. In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term.

Role 2: Life insurance as “Risk cover” First and foremost, insurance is about risk cover and protection – financial protection, to be more precise – to help outlast life’s unpredictable losses. Designed to safeguard against losses suffered on account of any unforeseen event, insurance provides you with that unique sense of security that no other form of investment provides. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise. To provide such protection, insurance firms collect contribution from many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the monies. Role 3: Life insurance as “Tax planning” Insurance serves as an excellent tax saving mechanism too. There is a tax rebate under Section 88 on life insurance premium. Many investors, used to buy life insurance mainly to take advantage of these tax benefits. Additional tax benefits are available under Section 80DD and Section 80CCC applicable to specific schemes. Also returns are taxfree u/s 10(D).

Particulars of the life insurance companies and general insurance companies are as:

LIFE INSURERS
1. Life Insurance Corporation of India 2. Allianz Bajaj Life Insurance Company Limited 3. Aviva Life Insurance Company India Limited 4. Bajaj Allianz Life Insurance Company Limited 5. Birla Sun-Life Insurance Company Limited 6. HDFC Standard Life Insurance Co. Limited 7. ICICI Prudential Life Insurance Co. Limited 8. ING Vysya Life Insurance Company Limited 9. IDBI Fortis Life Insurance Company Ltd. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Max New York Life Insurance Co. Limited MetLife Insurance Company Limited Kotak Mahindra old mutual Life Insurance Reliance Life Insurance Company Limited. SBI Life Insurance Company Limited Sahara India Life Insurance Co, Ltd. Shriram Life Insurance Co, Ltd. TATA AIG Life Insurance Company Limited AMP Sanmar Assurance Company Limited Bharti AXA Life Insurance Company Ltd. Dabur CGU Life Insurance Co. Pvt. Limited Future General India Life Insurance Company Limited ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘‘ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ PUBLIC SECTOR PRIVATE SECTOR ‘’ ‘’ ‘’ ‘’ ‘’

GENERAL INSURERS
1. National Insurance Company Limited 2. New India Assurance Company Limited 3. Oriental Insurance Company Limited 4. United India Insurance Company Limited 5. Bajaj Allianz General Insurance Co. Limited 6. Cholamandalam General Insurance Co. Ltd 7. Export Credit Guarantee Corporation 8. HDFC Chubb General Insurance Co. Ltd. 9. ICICI Lombard General Insurance Co. Ltd 10. 11. 12. 13. IFFCO-Tokio General Insurance Co. Ltd. Reliance General Insurance Co. Limited Royal Sundaram Alliance Insurance Co. Ltd. TATA AIG General Insurance Co. Limited ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ ‘’ PUBLIC ‘’ ‘’ ‘’ PRIVATE ‘’

Chapter-2
COMPANY PROFILE

INTRODUCTION
KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LTD.

ABOUT KOTAK MAHINDRA
Kotak Mahindra one of India's leading financial institutions was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Mr. Uday Kotak, Mr. Sidney A. A. Pinto and Kotak & Company. Industrialists Mr. Harish Mahindra and Mr. Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. It’s been a steady and confident journey to growth and success. 1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting 1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market 1990 The Auto Finance division is started 1991 The Investment Banking Division is started. Takes over FICOM, one of India’s largest financial retail marketing networks 1992 Enters the Funds Syndication sector 1995 Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company 1996 The Auto Finance Business is hived off into a separate company - Kotak Mahindra Primus Limited. Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group’s entry into information distribution.

1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. 2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. Kotak Securities launches kotakstreet.com - its on-line broking site. Formal commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 Matrix sold to Friday Corporation Launches Insurance Services 2003 Kotak Mahindra Finance Ltd. converts to commercial bank – the first Indian company to do so. 2004 Launches India Growth Fund, a private equity funds. 2005 Kotak Group realigns joint venture in ford credit: Buys Kotak Mahindra Prime & sells Ford credit Kotak Mahindra launches a real estate fund.

2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities

The group has a net worth of over Rs.7509 crore and employs over 5565 employees in its various businesses. With a presence in 197 cities in India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5,00,000. Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset management conglomerate). Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001. Kotak Life

Insurance aims to help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent. Jeene Ki Azaadi... KOTAK JOURNEY SO FAR……..

ABOUT OLD MUTUAL
Old Mutual was established more than 150 years ago and has developed into an International financial services group whose activities are focused on asset gathering and asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. In the 2003 rankings of the World's 500 largest corporations by Fortune magazine, Old Mutual climbed 87 places to position number 366 and was also listed as the 14th largest insurance company in the world. Old Mutual is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company serves 4 million life insurance policyholders and employs over Africans in its local operations. In the USA, Old Mutual is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The company’s US Life business recorded sales of $4 billion at the end of 2002. Operations in the United Kingdom are focused on wealth management, through Gerrard as one of the leading private client stock broking businesses in the UK. 13 000 South

The Old Mutual Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups.

VISION
To be a market leader in offering innovative products and services that help Businesses achieve simplified growth.

MISSION
The company has a corporate mission of certain goals in respect of “customer satisfaction”,” employee development”, “service to society” ,which are meant to create a good image of the organization .

OBJECTIVES & PHILOSPHY OF KOTAK MAHINDRA
“Understand and actively promote the financial interests of clients.” We see your needs through your eyes, your ideas, expectations and personal situation form the basis of our counseling and service. We take time and care in the process of striking a balance between the feasible and the desirable, between the required and the tolerable. We take your time too. It is essential to understand we build a relationship of mutual trust. We understand that it is the absolute returns and not relative return to some volatile index, which is important to our clients. We are committed to the safety of invested capital.

MANAGEMENT PROFILE
Mr. Shivaji Dam is Director of Kotak Mahindra Bank Limited and Managing Director of Kotak Mahindra Old Mutual Life Insurance Ltd.
Mr. Murlidhar is a Chief Financial Officer and Company Secretary of Kotak Life Insurance.

Mr. Gaurang Shah is the Chief Operating Officer of Kotak Life Insurance. Mr. Nihar Rao is the Chief Technology Officer of Kotak Life Insurance. Mr. Chandrashekar Sathe, Executive Vice President, is a senior management resource for Kotak Life Insurance. Mr. K Madhava Rao is the Chief Human Resources Officer at Kotak Life Insurance. Mr. Nandip Vaidya is the Vice President - Tied Distribution at Kotak Life Insurance.

KEY FACTS

The Kotak Mahindra group is one of India's leading banking and financial services organizations, with offerings across personal financial services; commercial banking; corporate and investment banking, and markets; stock broking; asset management and life insurance. The Group has a net worth of Rs 5,824 Crores and assets under management to the tune of Rs 36,544 Crores (as of 31st March 2008). With a market capitalization of around USD 5.4 Billion (As of March 31st, 2008); listed on the Bombay Stock Exchange), the Kotak Group employs around 20,000 (As of March 31st, 2008) people with over 1,350 offices, spread across 370 cities, and services around 4.4 million customer accounts across India. Kotak also has offices in London, New York, San Francisco, Singapore, Dubai and Mauritius.

PLANS OF KOTAK LIFE INSURANCE
KOTAK ENDOWMENT PLAN
Kotak Endowment Plan is a protection plan that covers your life and at the same time ensures that your money does not lie idle. It invests a portion of your premium in financial instruments and ensures a considerable growth in savings. This is a participating plan (with profits).
Advantages of this plan

On maturity, you would receive the sum assured plus the bonus addition. Bonus addition is the amount in the Accumulation Account, in excess of the sum assured. The amount available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works harder for you.

The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. This facility is available after the first three years of the term. We can take a loan against your policy, after the policy has been in force for at least three years. We have the option of paying premiums quarterly, half yearly or yearly. We also have the flexibility to pay premiums through the full term of the policy or pay it for a fixed term of 3, 5, 7, 10 or 15 years. You have the benefit of a 15-day free look period.

KOTAK TERM PLAN
Kotak Term Plan is a pure risk product that aims to cover your life at a nominal cost. You may want to take this plan to cover your outstanding debts like a mortgage, a home loan etc. Since this is a pure risk cover product, there are no maturity benefits payables on survival. Advantages of this plan It is a low-cost insurance plan. You can choose between a regular premium payment option. In case you opt for the regular premium payment option, you may pay your premiums either annually, or in half yearly or quarterly installments. Your Kotak Term Plan can be converted into any other plan offered by Kotak Life Insurance (except for another Term plan) provided there are at least 5 years before cover ceases. In case you forget to pay your premium by the due date, you are entitled to a grace period of 30 days from the date of unpaid premiums.

In case of a financial emergency, you have the option to surrender the policy provided you have taken the single premium payment option.

KOTAK RETIREMENT INCOME PLAN
The Kotak Retirement Income Plan is a savings plan designed to meet our postretirement needs. It is a plan that gives you "Jeene ki azaadi". It gives us the choice to remain independent even after retirement. The Kotak Retirement Income Plan is a participating plan. The plan comes in two forms: (i) With Cover (ii) Without Cover.
Advantages of this plan

We can choose to retire at any age between 45 yrs and 65 yrs. On Retirement

We may take a lump sum in cash of up to a third of your Basic Sum Assured or Accumulation Account whichever is higher; and the balance of the benefit you are eligible for will be used to buy an annuity of your choice. Annuity we may buy an annuity either from Kotak Life Insurance (subject to the choice and rates available at that time), or from any other insurer. Early we may opt to retire early, i.e. at any age before the normal retirement date (subject to the policy being in force for 3 years or your attaining a minimum age of 45 yrs, whichever is later). We can then secure benefits with your Accumulation Account, net of an early retirement charge of 5%. If the earlyretirement is due to ill health, then we may retire before attaining the age of 45. We can then secure benefits with our full Accumulation Account.

LATE RETIREMENT BENEFITS
We may opt to retire after the retirement date originally selected, and select a new retirement date (subject to a maximum of 65 years). No further premiums will be payable and the death benefit will be equal to the balance in Accumulation Account. (However, all riders will cease at the original retirement date). We can make lump-sum injections into your policy at any time before retirement (such lump-sum injections during a year may not exceed 25% of the Basic Sum Assured). A Supplementary Accumulation Account will be created for this, and will be paid out in the same manner as other benefits. We may exercise the option of paying premiums from the Supplementary Accumulation Account, created for "lump-sum injections", if the need arises. For a "With Cover" plan, you have the facility of Automatic Cover Maintenance, which ensures that the cover remains in force even when you miss the premium payments. This facility is available after the first three years of the term. We have the option of paying premiums in quarterly, half-yearly or yearly installments. We have the facility of a 15-day free look period.

KOTAK MONEY BACK PLAN
The Kotak Money Back Plan not only covers your life, it also assures you a certain percent of the sum assured as cash payment at regular intervals of every 5 years. It is a savings plan with the added advantage of life cover and regular cash inflow. This plan is ideal for planning special moments like a wedding, your child's education or purchase of an assets

Advantages of this plan

The plan not only covers your life but also provides you with a survival benefit payout every 5 years. In the unfortunate event of death of life insured, the beneficiary would receive the death benefit. The death benefit keeps increases by 7% of the sum assured every year. On maturity, you would receive the sum of the Survival Benefit, Bonus addition* and Guaranteed addition. The amount available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works hard for you. The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. This facility is available after the first three years of the term. We have the benefit of a 15-day free look period. We have the option of paying premiums quarterly, half yearly or yearly.

KOTAK CHILD ADVANTAGE PLAN
CHILD PLANS ? Kotak Headstart Child Plan ? Kotak Child Advantage Plan KOTAK HEADSTART CHILD PLAN

Every child is different, with a unique set of dreams and aspirations. As a parent, you would like to provide your child with all the building blocks necessary to develop his or her potential to the fullest. This could mean extra coaching or tuition for talented children, special training or equipment for natural athletes, or professional training or equipment for natural athletes, or professional training for born singers. This is where Kotak's Headstart Child Plans come in.

Why An Ideal Plan These are specially tailored, cost effective plans that aim to give your children the financial means to pursue his or her dreams - and to live them.

Advantages • • Choice of 2 plan variants Maximizes wealth while providing protection • • • Joint Life option Save for 2 children with one plan Additional bonus units

KOTAK CHILD ADVANTAGE PLAN Insurance can be taken on the lives of their children, who are not majors. The proposal will have to be made by the parents or a guardian. Covers the future financial needs of your child. when the nominee is minor, an appointee should be appointed by the policyholder. The appointee must affix his signature to the endorsement either in the proposal form or on the text of the policy in token of his savings. when their is no appointee the claim amount under the policy, cannot be paid to the guardian appointed or natural it can be paid only to legal heirs. if the nominees are more than one the policy amount payable to them jointly or to the survivor or the survivors. A plan of aazadi to realize your Child’s dreams. Maturity benefits + bonus on the assured sum , Financial accumulation, life guardian benefits. Accident Disability of Guardian Benefits. This plan is ideal for you... • • If you have child below 17 years and are looking forward to planning his/her future. If you want to ensure that your child is secure even if you are no longer able to support him/her.

Advantages • On Maturity, you would receive the sum assured plus the bonus addition. Bonus addition is the amount in the Accumulation Account*, in excess of the sum assured. • The balance available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works hard to earn more for your child. • The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. This facility is available after the first three years of the Term. • • You can take a loan against this plan, after the policy has been in force for at least three years. You have the option of paying premiums quarterly, half yearly or yearly.

Key Features Bonus The premiums paid by you net of charges are credited in the Accumulation Account and invested as per IRDA norms. Being a participating plan, the returns as per declared (bonus) are credited to this account. Our team of prudent investment managers will ensure that your money continues to work hard and get you compounding bonuses, year after year. Waiver of Premium To ensure that the policy remains in force in case of any unforeseen event, two optional riders: Life Guardian Benefit (LGB – UIN No: 107C012V01) and Accidental Disability Guardian Benefit (ADGB – UIN No: 107C011V01) may be attached. The premiums for the policy will be waived in case of death of the proposer (premium payer) orin case of his permanent disability.

Thus, attaching the riders gives you the added comfort that even if something were to happen to you, your child’s future is secured. Term / Preferred Term Benefit In the event of unfortunate death of the premium payer, the sum assured under this benefit would be paid out immediately to tide over the financial emergency. Maturity Benefit The higher of the basic sum assured or the Accumulation Account will be paid on Maturity. Death of Parent (Premium Payer) In case the parent has opted for the Life Guardian Benefit (LGB), all future premiums on the policy would be waived and the policy will continue till maturity. On maturity, the beneficiary would be entitled the higher of the basic sum assured or the Accumulation Account. Death of Life Insured • If the policy has been in force for five years or if the life insured was at least 18 years old, the beneficiary will receive either the sujm assured or Accumulation Account whichever is higher, as on the date of death. • If the death occurs within five years from commencement of policy and if the insured was less than 18 years old, the death benefit would be either the total of all premiums paid (excluding rider premiums) so far or the surrender value at that time, whichever is higher.

The Kotak Child Advantage Plan is an investment plan designed to meet your child's future financial needs. It's a plan that gives your child the "azaadi" to realize his dreams.

Advantages of this plan.
• On Maturity, you would receive the sum assured plus the bonus addition. Bonus addition is the amount in the Accumulation Account in excess of the sum assured. • The balance available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works hard to earn more for your child. • The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. This facility is available after the first three years of the Term. • We can take a loan against this plan, after the policy has been in force for at least three years. • We have the option of paying premiums quarterly, half yearly or yearly. Accumulation Account is your personal account in which the premiums that you pay period. are deposited, the return declared every year is added and risk and expense charges are deducted. We have the benefit of a 15 day free look

Chapter-3
LITERATURE REVIEW

LITERATURE REVIEW
The literature review includes the academic books, journals, internet access, magazines etc. 1.Acc to khan,’ focuses that the insurance savings of there policyholders & in insurance beneficiaries a specified sum either at certain event .The Malhotra monolithic instructions, namely, committee government IRDA act 1999. players by passing organization essentially exchange invest the there

promise them or

a later stage or the happening of a

organizations in India comprise two state owned LIC & GIC . After the recommendations of has opened insurance sector for foreign

2.Acc to Shekhra’’ Insurance evolving with time’’ focuses that over a period of two centuries, the Indian insurance industry has gone through full circle. From being an open competitive market; it went through nationalization and has liberalized again. The rational behind the opening up of the sector was to give individual and corporate insurance consumers a competitive environment that can deliver product and services in tune their requirements. penetration of the risks. The two dominant factors guiding the insurance in India are affordability and a clear understanding of

3.Acc to Rao,”Asia insurance post ,king customer’’ focuses that customer will be the key for competition among the public and private insurers. Competition in the field of general insurance was always of particular interest to the government, even after the business was nationalized in the early 70s now after the opening of insurance Companies sector again for private players competition is going to be immense. have to build value in their to fight such an immense competition

product offering.

4.Acc to Gupta,’’ Asia insurance post, ready

to roar’’ focuses that a readymade

Rs10,000 toRs15,000crore health insurance market is waiting to take off. India is believe to have one of the largest private health sector in the world with government healthcare expenditure as a percentage of GDP one of the lowest in the world. health market would have to With the existing low penetration, there is considerable potential for insurance in the country. An expanding health insurance

deliver a slew of products that cater to the changing attributes of the population.

5.Acc to Rathore; “Recruitment of Life Advisor in insurance sector’’ focuses that for two years around 30 foreign have eagerly explored that the natonalised Insurance market, preparing to leap in when participation is allowed . Deregulation carries some risks. As agents and insurer enter this more competitive era, some may be tempted to exaggerate or omit some consumer information in there efforts to win business.

6.Acc to Aggarwal, ‘’ “Recruitment of Life Advisor in insurance sector’’ of insurance business in India” focus that insurance is a Rs.400 billion business in India and yet it’s spread in the country is relatively thin. LIC and GIC have enjoyed private sector monopoly till now. After the passage of IRDA bill the way of operators in collaboration with overseas partner is clear.

7. Insurance –A Booming Professional Opportunity By N.D.Gupta Insurance is the pooling of fortuitous losses by transfer such risks to insurance, Who agree to provide other pecuniary benefits on their occurrence, or to render services connected with risk .it is the transfer of financial responsibility for the risk at the point of

occurrence and conventionally involves the insurer in a commitment to play. The insured is the exchanging the uncertain cost of losses for certain and known cost of the premium. The insurance services lead to efficient and productive allocation of capital resources facilitate growth of trade and commerce, substitute for governments social security programs, and assist individuals and firms efficient management of risks. The insurance market may tremendously improve as India represents huge untapped market. 8. Customer presences in life insurance industry in India By sunayna khurana Every company in the service sector tries hard to satisfy its customers. In the insurance sector , various new private companies have entered the industry by merging with foreign companies .the regularly offer new services. With the basic plan to attract new and retain the present ones .This paper tries to understand customer behavior in the insurance sector. 9. Distribution channels in insurance By economic new Dec. 2000 volume x, Number 13 An insurance cover is an intangible product evidenced by a written contract known as the “policy” .insurers market various insurance covers either directly or through various distribution channels –individual agents corporate agents and brokers .The marketer in the distribution network is in direct interface with prospect and customer 10. Emerging paradigms in the insurance sector By Dr.S.Kaliyamoorthy, A.M.suresh. Today we are witnessing that economic borders are redrawn and a border less world is fast emerging .As world economy is getting integrated and becoming more global no country can afford to live n isolation. 11. Insurances sector in India : Towards the 2020 vision By Tapen sinha , Swiss Re visiting professor,IIRM We examine the critical understanding of the recent 2020 vision mooted by the planning commission. We show how the insurance sector will play an important role in the implementation of this vision statement. We show that by 2020, premium volume in the

India market could easily exceed USD120 billion in today’s money vision3.1, March 11,2004. 12.”Life insurance advertisements on television” By Gautam Bansal and pawan Teneja As these days there are a no of companies both private and public who are providing the service . So it becomes essential for a firm to distinguish their brand from its competitors and also make people aware about their presence. Advertisement is one such tool by which any firm can achieve the above objective s . Advertisement in the recent years has popularity in order to make people aware about emerging products and services. 13.“Critical success factors of agents in life insurance services” By Prof. R.S.Bala senthil and Dr.N.Rajasekar Intermediation in life insurance services has much significance since the intermediaries are real sellers of the life insurance products and services .Because of globalization, many private players have come into the market and provide competitive service equal to the public player. The agents of these players are playing a pivotal role for the success of their companies. 14.Acc to Gupta and Nair,-A business is based on understanding the and providing the kind of products that the customer wants. 15.Acc to Bennett Peter.D. and Kassarjian Harold - a great deal of research decision . for Retailing such as customer

activity marketing is design to shed light on the consumer 16. According to DavidM.Szymanski, director marketing at customer just by of the

center

Studies(CRS) and professor of tough to know a

Texas A&M University. Its really surfacedescriptor

taking a

male/female or age or ethnic group. To understand your customers needs today,you really have to understand their lifestyles, opinions and attitudes.

17. According to Suppli Corp Across the board, retail prices fell, year on year like or like. Lower duties, cheaper technology and strong competition drove this trend , which ensured that Indian consumers continued to buy. The icing on the cake was increasing brand and product choice seen on selves across the country. 18.According to Prof V.J Phase & Prof B.R Pati (2007) Retail is Indias largest, accounting for over 10% of the countrys GDP and around 8% of the employment. Retail Industry in India is at the crossroads. It has emerged one of the dynamic and fast industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted for success so far. However the future is promising, the market is growing, Govt policies and becoming more favourable and emerging technologies are facilitating operations.

Chapter-4
INTRODUCTION TO PROJECT

MEANING OF RECRUITMENT
Finding the right people is a make or break factor for success in business today. Recruiting for a job takes time and you have to attract quality candidates who have the knowledge the skills needed to help your company grow. The fact is your success with recruitment depends on how well your potential candidates Truly understand the job. The Clearer you are with the task description working conditions and advantages the less time you will waste examining and rejecting applications.

The essentials of any job description are: ? A brief description of your company ? Detailed outline of task involved. ? Qualification and experienced required ? Equipment and recourses used to do the work ? Skill required using them However you should Also include work benefits, general working conditions and the specific traits required. Ultimately you want to perceived as an attractive employer in a attractive employer in a competitive market. Find the right recruitment vehicle that best work for your company depending on your budget and resources. Word of mouth or simply telling your employees friends and colleagues about a job opening is less expensive strategy but generates fewer candidates. The advantages are that to u already know something about your recruires and their skill knowledge and achievement. This is preferred method with companies that have a finder’s fee program For their employees.

Advertisement is a toss of the dice. if it goes to well it can help you find ideal candidates in a regional, national or international pool. If not it’s a costly investment yielding few results. Make sure of factor in the time it takes to get through a large number of resumes. Employment agencies cost more but generally provide a good range of candidates. and only send you the application that meet your requirements. Bear in mind that the largest employment agencies do not necessarily offer the best choice of candidates. There are numerous agencies do not necessarily offer the best choice of candidates. There are numerous agencies that specialize in recruitment in specific sector. Recruiting online such as monster workopolis.com and jobboom.com. These can provide inexpensive worldwide access to employees. In fact 65% of job seekers have access to these types of services. Using the internet for recruiting usually involves regular visits to specialized recruitment sites joining newsgroups and posting your job opening on recruitment sites electronic publications and on your own Web sites.

After recruitment the next part is selection of best candidates. Make the interview deliver
Since the purpose of an interview is to identify and verify the candidate’s potential, it Should be structured to bring out all the desired competencies and aptitudes. Remember That you have decide between the candidates to you could create a point system or analysis grid for comparing their strengths and weakness. Here are a few point’s to consider when structuring an interview; ? Make a list advance of the points for discussion and corresponding questions.

? Present the candidates with a situation they could face on the job and ask them how they would react. This will enable you to evaluate the candidate’s knowledge skill’s and work methods. ? Ask the candidates to describe a difficult situation involving collegiums and how it was resolved. this will enable you to test their aptitude for teamwork. ? Ask the candidates about their ambitions and plans to ensure they fit your

company profile. Beware of asking question about personal interests. They can get the interview off track or any body people who want to keep their work and private lives private live separate.

DEFINITION OF AGENT
? According to section 182 of Indian contract act, An agent is person employed to do any act for another or to represent another in dealing with a third party. In the insurance industry the term agent is ordinarily applied to a person engaged by the insurer to procure new business. The insurance Act as definers and insurance agent as one who is licensed under section 42 of that act and is paid by way of commission or other wise in consideration of this soliciting of procuring insurance business including business relating to the continuance renewal or revival of insurance . he is for all purpose an authorized salesman for insurance and needs a licenses. ? An agent is one who acts on behalf of another. The another on behalf the agent act is called the principal in this case. The insurance company is the principal in this case. The lawyer is the agent of the client when he argues the case in court. An ambassador is an agent of his country. The agent represents the principal and acts on his behalf. Some insurers designate their agent as advisors consulates etc. as if they are independent advisor or consulates etc. As if they are independent advisor or consulates would not t be appointed by an insurer company. He would be knowledgeable enough as a person to be approached for advice or consulation. some insurance agent may acquire that status. All insurance agents should strive to attain that status.

PROCEDURE FOR BECOMING AN AGENT
• The insurance Act 1938 lays down that an insurance agent must process a license under section of that Act. The License is to be issued by the IRDA. The IRDA has authorized designated persons in each insurance company to issue to behalf of the IRDA. In term of the insurance Act a licenses will not be given if person is Authorized designated persons in each insurance company to issue the licenses on behalf of IRDA.

In Term of the insurance Act, a license will not be given if the person isa) (b) (c) Minor Found to be of unsound mind Found guilty of misappropriation or criminal misappropriation or criminal breach of trust of cheating of forgery or an an abetment of or attempt to commit any such offence (d) (e) (f) (g) Found guilty of or knowingly participation in or conniving at any fraud dis honesty or misrepresentation against an insurer or an insured, Not possessing the requisites qualification and specified training. Found violating the code of conduct as specified training. The fees for a license in Rs. 825 for indidual. A license is granted for 3 years it may be renewed after 3 years and again valid for 3 years. • A license issued by the IRDA may be act as an agent for a life insurer for general insurer or as a composite insurance agent working for a life insurance as well as a general insurer. No agent to work for more than one life insurer or more than one general insurer.

The qualification necessary before a license can be given are that the person must be
(a) Not a minor. (b) Have passed at least the 12th standard equivalent examination he is to be appointed in a place with a population of 5000 of more ( 10th standard otherwise) (c) Have undergone practical training for at least 50 hours in life or general Insurance business as the case may be form institution approved and notified by the IRDA. In case of person wanting a composite insurance agent the applicant should have completed at least 75 hours practical training in if and general insurance business which may be spread over six to eight weeks. (d) Have passed the pre- recruitment examination conducted by insurance institute of India or any other examination body authorized by the IRDA.

FUNCTION OF AN AGENT
? Understanding the prospects needs and persuade him to buy a plan of life insurance that suits his interest best. ? Complete the formalities: - paper work, medical examination, which necessary to get the policy expeditiously. ? Keep in touch to ensure that changing circumstances are reflected in the arrangement relating to premium payment nomination and other necessary Alterations ? Facilities quick settlement of claims ? Be totally honest with both prospect and their insurer ? Not to induce prospects to submit wrong information.

CAREER WITH KOTAK MAHINDRA LIFE INSURACE ? Opportunity to earn unlimited income. ? Career growth ? Be your own boss ? High quality training & support to improve productivity ? Compensation among the best ? Club member benefit ? Pay out structured to facilitates your cash flows better ? Pension for life

RECRUITMENT PROCESS
1. Develop a profile 2. Develop sources of recruitment 3. Approaching the target recruits 4. initial screening and interviews 5. Reality check

SOURCES OF RECRUITMEN A. Controlled Market
1. Natural Market
? Your family

? Your friend ? People art job/business ? Neighbors

2. Extended Market
? People know through children

? People know through spouse ? People know through hobbies ? People know through social games ? People know through public service ? People you do business with ? Friends of friends

3. Central of Influence 4. Agent gets Agent

B. Uncontrolled Structure
1. 2. 3. 4. 5. Job Ads/ Inserts placement consulates presentation/ seminar cold prospecting Data Base • • Primary data Secondary data

Point to be noted while recruiting the Agents
? ? ? ? ? ? ? ? ? Mature and Responsible Family person Ambitions hungry for recognition challenges. Occupation Experience and Current designation For how many years he is living in the city Greedy person Occupation of parent Family income Any experience in service sector

? ?

Leadership quality Social and amiable

Sources for recruitment of Advisor used during the training
1. 2. 3. Natural Market Market survey Secondary Data(Telephone directory)

Steps of Recruit the Advisor Step 1. Document Required:? Age proof ? Address proof ? Photo-8 ? Education proof ? Agency application ? Form V A. ? Fill NAAF.

Step 2.

Interview Section:-

During interview the senior manager asked following question to the candidates to judge his ability and knowledge. ? Qualification ? Present occupation ? Knowledge or experience in insurance sector ? Number of Family member ? Household income ? Occupation of parents

Step 3.

Training:-

50 hours training and also provide a text book for pre-recruitment examination for life insurance agent which is based on syllabus prescribed by insurance regulatory & Development Authority. It may be online or offline

Step 4. During Training following things be teaches :? What is insurance ? Principle of life insurance ? Premium or bonus ? Life insurance product ? Under writing ? Insurance document ? Policy conditions ? Claims ? Insurance agency ? Laws and regulation ? IRDA Regulation 2000 ? IRDA Regulation 2002

Step 5. Examination and Code:Examination is the second last part of the requirement and selection process. It includes one hour test under which contain 50 Objective question one each marks Pass marks are 25. There are two methods of examination:? Online ? Manual

Chapter-5 OBJECTIVES OF STUDY

OBJECTIVE OF STUDY
? To understand the process of Recruitment of Agent in Kotak Life insurance. ? To Study the view of general public about the job of Agent.

? To study people`s unwillingness to work with As an Agent especially With private sector.

Chapter-6 RESEARCH METHODLOGY

RESEARCH METHODLOGY

MEANING OF RESEARCH Research is an original contribution to the existing stock of knowledge making for the advancement. According to Clifford Woody “Research comprises defining and redefining problems, formulating hypothesis or suggested solution, collection, organizing and evaluating data, making deductions and reaching conclusion and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research in common parlance refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The advanced learner dictionary of current English lays down the meaning of research as “a careful investigation or inquiry especially through search for the new facts in any branch of knowledge.” Some people consider research as a movement, a movement from unknown to known. It is actually a voyage of discovery. Inquisitiveness is the mother of all knowledge of whatever unknown, can be termed as research.

Research methodology is a way to systematically solve the research problem. This chapter describes the research methodology adopted in conduct of this study. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the research to know not only the research methods/ techniques, but also the methodology.

Every research project conducted systematically has a specified framework for collection and analysis of data in a manner that aims at combining this frame work is called research designed involves five steps. 1. Deciding the approach to be used in the design. 2. Deciding the data needed. 3. Identifying probable sources of data. 4. Deciding how the data should be gathered 5. Anticipating the results, their interpretation and presentation.

Defining the problem
Defining the research problem is first necessary for any research. This Work should be done carefully. Here research is to know wiliness of general public to know as Agent with private sector or Kotak Life Insurance.

RESEARCH DESIGN:- I used Descriptive research in my project report. DATA COLLECTION PRIMARY DATA: The investigator must identify the source from which the different items of information are obtainable and select those that will use. He may use primary data, secondary or both. Primary data are data freshly gathered for a specific purpose or for a specific research project at hand, directly e.g. -through questionnaire and interviews. When the needed data do not exist or are dated, inaccurate, incomplete or unreliable, the researcher will have to collect primary data collection. SECONDARY DATA : Secondary data are generally published sources, which have been collected originally for some other purpose. They are not gathered specifically to achieve the objectives of particular project at hand, but are already assembled.

Such sources are internal company records, government publication, reports and journals, trade professional and business firm’s records, university research organization and library. In my project I used both primary data as well as secondary data.

Sampling Plan
The Sampling Plan Calls for three decisions. A. Sampling Unit: I have completed my survey in KARNAL. B. Sample Size: The Selection of 40 respondent. The Sample was drawn from shopkeepers and student. The selection of the respondent was done on the basis of simple random Sampling. C. Contract Methods. I have conduct the respondent through personal interviews.

Research Instrument
A close friend questionnaire was constructed for my survey. Questionnaire consisting of a set of questions made to filled by various respondents. Collecting the Information

Analyze the Information
The next step is to extract the pertinent finding from the collected data. I have tabulated the collected data & developed frequency distributions. Thus the whole data was grouped aspect wise and was presented in tabular from. Thus, frequencies & percentages were to reader impact of the study.

Chapter-7
DATA PRESENTATION & INTERPRETATION

Do you have any knowledge of experience in Insurance ?
YES 80% NO 20%

20% 80%

YES NO

80% of respondent said that they have knowledge about insurance. 20% of respondent said that they have no knowledge about insurance

.

Do you have Experience as an agent?
YES 15% NO 85%

15%

YES NO

85%

15% of respondent have experience in the field of life insurance.

85%of res ponde ha no expe ncein the fieldof lifeins nce nt ve rie ura

If No, then please specify the name of the company y preferred. ou
LIC 1 7 ICICI PLI 5 OTHERS 1 2

12 17

LIC ICICI PLI OTHERS

5

?50% of respondent working with LIC

?3 % of re p e w 5 s ond nt orkingwith oth r`s e
?15% of respondent working with ICICI Prudential Life Insurance Co. Ltd

Wouldyoubeinte s din ta re te kingup th b ine s is us s opportunitywithKOTAK?

YES 12

NO 28

30%

YES NO

70%

Only 3o%re ponde we inte s d s nt re re te

How much time can you dedicate per day for this activity?(For getting Appointments)
1 hrs 8 1 hrs -2 4 3 hrs 0 5 hrs or more 0

33%

1 hrs 1-2 hrs 3hrs
67%

5 hrs or more

Can you spare 1/ 2 day on training to understand to product and how can you introduce it to your customer ?
YES 14 NO 26

35%

YES NO
65%

35 % of respondent were interesting to spare 1/2 day on training to understand to product

Chapter-8 FINDINGS & SUGGESTIONS

FINDINGS

? In these days LIC created a very well image in the mind of General public because it is semi Government Company and also an oldest company. In short most people of Indian believe upon the LIC only. ? During the training period we felt that most of people who are already working in insurance sector they think that it is easy to sell the product of LIC than to sell the product of other life insurance company. ? Most of people say that this job affects upon there social relation with other and also effect upon there business. ? Most of people believe that private insurance companies carried out fraud activity that’s why they never believe upon the private players. ? People think that it is a time consuming activity and also required huge market skills. ? Some people said that only greedy people like to work in insurance sector. • • • Customers are less aware about the private insurance company in market. Some customer are like to join Kotak LIC as LAs because it is a Part-time. Many professions like CA, tax planner want a corporate agency rather than to be a Life Advisor. • Kotak is too selective in making a LA rather than to appoint any one like LIC.

• •

Customer don’t want to join as Life Advisor because it’s on commission basis they want job on salary basis. Educated customers are now vending towards private insurance Companies, due to the attractive companies. packages and services provided by various new insurance

•

LIC has created a branded image in 3-4 decades, due to which new insurance companies are facing trouble in capturing market share.

•

If the customers are joining Kotak the segment is more of tax consultant, investment for consultant and other people who are engaged in investment business that is because they want to diversity their portfolio.

•

Kotak is having good retention strategies for their financial Life Advisor.

? Reason for not joining Kotak. ? Associated with an other company. ? Do not have time ? Low sales. ? Private Player. ? Lack of awareness.

SUGGESTIONS

? KOTAK LIFE INSURANCE company must give more advertisements on electronic media and print media, as it help in enhance its goodwill and more people are willing to work with reputed companies, through proper advertisement it become easy to sell the product. ? An insurance company must work with honesty to win the confident of its agent and general public ? Fees charged by companies from candidate for IRDA exam and training should reduce. ? KOTAK Life Insurance Company must organize more and more seminars and also participate in the job trade fairs to find out more candidates. ? Increase the commission of agents A special function must organize time to time in which the special prizes distribute among those agent who perform well. ? The duration of the process of recruitment and selection is too long (one and half month), during this process mostly candidate loss there interest, so there is an urgent need to reduce the duration of this period. ? Better career opportunity must be provided to an adviser, such as on role job, Many other extra facilities must be provide to agent to attract them such local and foreign trips, special price on achieving a target, open bank account at free of cost, promotion etc.

Chapter-9 Conclusion & Limitation

CONCLUSION
In India, there is throat cut competition in the market of life insurance that brand service which adopt new strategies for sales. I concluding the whole story it can be said that people are much more aware about the aspects of life insurance and also have knowledge about the role and act of agent but mostly people unwilling to work as life insurance agent and mostly people prefer to work with LIC because it is a semi government corporation. After collection of data interpretation is done on that basis conclusion is drawn. Conclusion prefers government insurance company other than private insurance companies due to its reliability. Customers are more brand oriented rather than product oriented. Customers are less aware about the private insurance companies. Private Players in order to encase maximum number of customers are introducing new and innovative scheme for their LA. Customers like to invest in other investment zones due to the hectic rules and regulations associated with, entering into a contract with insurance companies. Customers do not feel secure with private insurance companies. Customers don’t want commission base job. The central problem with the insurance companies is having that they are trying to convince customers for a product which do not have any present relevance, i.e. each policy which the customer is going to purchase will have a future set of action and benefits. Due to which most of the people like to invest in those securities or investment, which will give them a fruitful return in short period of time ? Life insurance Corporation has completed more than three decades and that’s where counts, inters of brand name, different number of policies for differed class and age group of customers. The Private players are on the way, but they need a lot of time investment for creating a favorable brand image.

LIMITATIONS
• I didn`t get complete feed from the shopkeepers about the question as they are busy in there work and had less time to fill questioned. • • Sincerity of answering the questions cannot be judged. Time was the major constraint for me to understand the long process of recruitment and selection. • Limited money available for project

Chapter-10 BIBLOGRAPHY

BIBLOGRAPHY BOOKS
Chhabra, T.N, “Human Resource Management”,2004 Ed,Dhanpat Rai & Co (P) Ltd , New Delhi 2003. Kothari, C.R., “ Research Methodology”, 2nd Edition, New Age International (P) Ltd. Publishers, New Delhi ,2005.

WEBSITES
• • • • • • • •http://www.economywatch.com/indianeconomy/indian-insurancesector.htmlhttp://www.businesschambers.com/sh.cfm?sq=India %20Insurance%20Companieshttp://www.Mykotaklifeinsurance.co.ib www.mykotaklifeinsurance.co.in/rcamhtml/rcam/images/ADAapp ointmentaschairman- 19June2005.pdf LIFE FIRST –magazine for Life Insurance Firms www.irdaindia.org www.irda.gov.in/ www.iii.org



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