Professional Documents
Culture Documents
ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role in the success of
any venture. In the present world of cut throat competition project is likely a bridge
between theoretical and practical working, willingly I have prepared this particular
project.
First of all I would like to thank the supreme power, the almighty Godwho is
obviously the one who has always directed me to work on the right path of my life. With
his grace this project could become a reality.
I would like to take this opportunity to thank Mr. GopiBhurani for his able
guidance, regular counseling, keen interest and constant encouragement, withoutwhich
project would have never started in the first place.
A word of praise is due to my dear parents and friends who helped me in
completion of thisproject.
I am indebted to the staff of MAX LIFE INSURANCE for their kind wordsand
help given to me duringmy project.
APRAJITA KUMARI
DECLARATION
Place: Datia
APRAJITA KUMARI
PREFACE
As a part of MBA curricular summer training was undertaking withMAX
Life Insurance Company Ltd. one of the biggest insurance company.
The purpose of this training was to have practical experience of working in marketing
organization to have exposure to various management practices in the field of marketing.
During this training apart having the practical experience this project was assigned to me.
The report is an attempt to go through the details of penetration in insurance and to study
the strategy of the organization for channel partner enhancement.
INTRODUCTION
Human Resource is a basic need of any work to be done. According to ARTHUR
LEWIS:
There are great differences in development between countries which seem tohave
roughly equal resources, so it is necessary to enquire into the difference in human
behaviors
The project report is all about recruitment and selection process thats an important part
of any organization.
Recruitment highlights each applicants skills, talents and experience. Their selection
involves developing a list of qualified candidates, defining a selection strategy,
identifying qualified candidates, thoroughly evaluating qualified candidates and selecting
the most qualified candidate.
It is said if right person is appointed at right place the half work has been done. In this
project I have tried to cover all the important point that should be kept in mind while
recruitment and selection process and have conducted a research study through a
questionnaire that I got it filled with all the sales managers of the MAX LIFE
INURANCE and tried to find out which methods and various other information related
to recruitment and selection and tries to come to a conclusion at what time mostly the
manpower planning is dont , what the various method used for recruiting the candidates
and on what basis the selections is done.
OBJECTIVE
1. To study the recruitment and selection procedure followed in MAX LIFE INURANCE
2: To study the various sources of recruitment followed in MAX LIFE INURANCE.
3: To learn what is the process of recruitment and selection that should be followed.
4: To search or headhunt people whose skill fits into the companys values.
RESEARCH METHODOLOGY
REASERCH METHODOLOGY
In everyday life human being has to face many problems viz. social, economical,
financial problems. These problems in life call for acceptable and effective solutions and
for this purpose, research is required and a methodology applied for the solutions can be
found out.
Research was carried out at MAX LIFE INURANCE. Ltd to find out the Recruitment
and selection process.
DATA COLLECTION:
Primary Data:
Secondary Data:
Data was collected from books, magazines, web sites, going through the records of the
organization, etc. It is the data which has been collected by individual or someone else
for the purpose of other than those of our particular research study. Or in other words we
can say that secondary data is the data used previously for the analysis and the results are
undertaken for the next process.
Max New York Life Insurance Company Ltd. is a joint venture between New York Life,
a Fortune 100 company and Max India Limited, one of India's leading multi-business
corporations. The company has positioned itself on the quality platform. In line with its
vision to be the most admired life insurance company in India, it has developed a strong
corporate governance model based on the core values of excellence, honesty, knowledge,
caring, integrity and teamwork. The strategy is to establish itself as a trusted life
insurance specialist through a quality approach to business.
Max New York Life is the first life insurance company in India to be awarded the IS0
9001:2000 certification.
Max New York Life was among the top 25 companies to work with in India, according to
2003 Business World magazine, "Great Workplaces In India", Max New York Life was
ranked at the 20th position. This survey is the local version of the "Great Places To
Work" survey carried out every year in 22 countries.
It is among top five most respected private life insurance companies in India according to
a 2004 Business World survey.
Financial Strength
In line with its values of financial responsibility, Max New York Life has adopted
prudent financial practices to ensure safety of policyholder's funds. The Company's paid
up capital is Rs. 587 crore, which is more than the norm laid down by IRDA.
Max New York Life offers a suite of flexible products. It now has 22 life insurance
products and 8 riders that can be customised to over 400 combinations enabling
customers to choose the policy that best fits their need. The basic categories are:
Distribution System
Max New York Life has identified individual agents as its primary channel of
distribution. The Company places a lot of emphasis on its selection process, which
comprises four stages - screening, psychometric test, career seminar and final interview.
The agent advisors are trained in-house to ensure optimal control on quality of training.
Max New York Life invests significantly in its training programme and each agent is
trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA
before beginning to sell in the marketplace. Training is a continuous process for agents at
Max New York Life and ensures development of skills and knowledge through a
structured programme spread over 500 hours in two years. This focus on continuous
quality training has resulted in the company having amongst the highest agent pass rate in
IRDA examinations and the agents have the highest productivity among private life
insurers.
201 agent advisors have qualified for the Million Dollar Round Table (MDRT)
membership in 2005. MDRT is an exclusive congregation of the worlds top selling
insurance agents and is internationally recognized as the standard of excellence in the life
insurance business.
Having set a best in class agency distribution model in place, the company is
spearheading a major thrust into additional distribution channels to further grow its
business. The company is using a five-pronged strategy to pursue alternative channels of
distribution. These include:
franchisee model
Rural Business
Telemarketing Opportunities
Bancassurance
Corporate Alliances.
With 201 agents becoming members of the MDRT in 2005 , Max New York Life has
moved up in the Top 50 MDRT global list.
Vision
Values
This vision to become India's most admired life insurance company will be realized
through its unique set of values, which are as follows:
Knowledge
Knowledge leads to expertise; and MNYL expertise is in helping people protect
themselves. Perfectly combining global expertise with local knowledge, it is India's life
insurance specialist. Max New York Life believes that for knowledge to be of value it
must be focused, current, tested and shared.
Caring
Max New York Life is redefining the life insurance paradigm by focusing on customers
first. The service process is responsive, personalized, humane and empathetic. Every
individual who represents the company is for us MNYL brand champion.
Honesty
Honesty is the heart of the life insurance business. It is all about trust. Transparency,
integrity and dependability form the cornerstones of the Max New York Life experience.
The company ensures that everyone who represents the brand carries a promise : we care
in word as well as deed.
Excellence
Excellence at Max New York Life implies the ability to perform at a consistently high
level. Focused on the value of continuous improvement in people, processes and the
organization, the company strives for the highest standards of quality in every aspect of
its business.
Mission
Be a national player
Products offered
Individual Insurance
Whole Life Participating Policy provides an insurance cover that is guaranteed for your
entire life. This policy also builds cash value, which you can use during your lifetime to
fund any unforeseen needs either by surrendering accumulated PUAs (explained below)
or taking a loan. In addition this policy is also eligible for bonuses.
KEY BENEFITS
Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.
Your DD rider premiums are eligible for an additional deduction u/s 80D up to
Your claim amounts (from death, through surrenders or on maturity) are eligible
premiums to purchase additional Sum Assured in your existing policy. It also generates
further bonuses.
2.
Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of
3.
Term / Term R&C Riders: Offers additional Sum Assured to match your changing
needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your
life.
5.
Waiver of Premium (WOP) / Payor Riders: Waives your future premiums in case
you suffer total disability. The payor rider waives future premiums on your childs policy
in case you suffer total disability
6.
1. Cash Bonuses: You can use your bonuses in the following ways:
Pay your premiums: bonus will be used to pay the next premium.
Increase your Sum Assured: bonus will be used to buy additional layers of
2. Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that
can lead to death in 6 months; you can use this money for your treatment. The balance of
the sum assured and the bonuses will be payable to your family on the occurrence of the
Insured Event.
3. Non Forfeiture Options: In case you are unable to pay your premiums, your policy
will lapse and we will utilize your cash value to buy you insurance coverage in one of the
following ways:
Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.
Extended Term Insurance: The same Sum Assured for part of the remaining term
of your policy.
In case you do not want either of the above, you can choose to take the cash value by
cheque.
1.
On death of life insured: Initial Sum Assured Plus Sum Assured of Paid Up
On survival: Money backs @ 7.5% of the Initial Sum Assured will be paid on
any.
4.
5.
Limited Premium Payment term: You can choose to pay the premiums over 4
Bonus: From 3rd policy year, we will declare bonuses every year.
7.
Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961:
1. Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every
year.
2. Your DD rider premiums are eligible for an additional deduction u/s 80D up to
Rs.10,000/- every year.
3. Your claim amounts (from death, on maturity, or Money Backs or through
surrenders) are eligible for tax exemption u/s 10(10D).
We offer you the flexibility to enhance the value of your policy by using the following
riders/options:
1.
Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of
Term / Term R&C Riders: Offers additional Sum Assured to match your
changing needs. The R&C also allows you the freedom to buy a fresh insurance plan later
in your life.
4.
case you suffer total disability. The pay or rider waives future premiums on your childs
policy in case you suffer total disability.
Cash Bonuses: You can use your bonuses in the following ways:
1.
2.
Pay your premiums: bonus will be used to pay the next premium.
3.
Increase your Sum Assured: bonus will be used to buy additional layers of
Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that
can lead to death in 6 months; you can use this money for your treatment. The balance of
the sum assured and the bonuses will be payable to your family on the occurrence of the
Insured Event.
Non Forfeiture Options: In case you are unable to pay your premiums, your policy will
lapse and we will utilize your cash value to buy you insurance coverage in one of the
following ways:
Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.
Extended Term Insurance: The same Sum Assured for part of the remaining
KEY BENEFITS
Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961
Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.
Your DD rider premiums are eligible for an additional deduction u/s 80D up to
Your claim amount (from death) is eligible for tax exemption u/s 10(10D).
We offer you the flexibility to enhance the value of your policy by using the following
riders/options
Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of
This plan can be renewed every 5 years and is convertible to any permanent plan
Money Backs i.e. a part of the Sum Assured at regular intervals to take care of
KEY BENEFITS
1.
On death of life insured: Initial Sum Assured Plus Sum Assured of Paid Up
On survival: Money backs @ 7.5% of the Initial Sum Assured will be paid on
any.
4.
5.
Limited Premium Payment term: You can choose to pay the premiums over 4
Bonus: From 3rd policy year, we will declare bonuses every year.
7.
Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961:
every year.
Your DD rider premiums are eligible for an additional deduction u/s 80D
We offer you the flexibility to enhance the value of your policy by using the following
riders/options:
Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of
Term / Term R&C Riders: Offers additional Sum Assured to match your
changing needs. The R&C also allows you the freedom to buy a fresh insurance plan later
in your life.
case you suffer total disability. The pay or rider waives future premiums on your childs
policy in case you suffer total disability.
1.
Cash Bonuses: You can use your bonuses in the following ways:
2.
3.
Pay your premiums: bonus will be used to pay the next premium.
4.
Increase your Sum Assured: bonus will be used to buy additional layers of
5.
Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that
can lead to death in 6 months; you can use this money for your treatment. The balance of
the sum assured and the bonuses will be payable to your family on the occurrence of the
Insured Event.
6.
Non Forfeiture Options: In case you are unable to pay your premiums, your
policy will lapse and we will utilize your cash value to buy you insurance coverage in one
of the following ways:
Reduced Paid Up: A lower Sum Assured for the remaining term of your
policy.
Extended Term Insurance: The same Sum Assured for part of the
In case you do not want either of the above, you can choose to take the cash value by
cheque.
Group policy
Group Term Insurance is the mainstay of our employee benefit platform. Here are some
of the key features and benefits:
Easy and convenient administration one single master policy for all employees.
Uniform or a graded cover can be provided on any basis chosen by your subject to
New members can join and out going members can leave the scheme at any time
All establishments with at least 10 full-time permanent employees and to whom the
Employee's Provident Fund and Miscellaneous Provisions Act, 1952 applies, have a
statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme (EDLI),
1976 to provide for life insurance for all their employees. The organization has to make a
contribution @ 0.51% of each employee's wages (Basic + Dearness Allowance +
Retaining Allowance), subject to a maximum of Rs.6,500 per month, to the Provident
Fund Authorities as part of its compliance to the Act. The death benefit payable under
this scheme is based on the provident fund account balance of the individual member,
subject to a maximum of Rs.60,000.
Under Section 17 (2-A) of the Provident Fund Act, the Central Provident Fund
Commissioner may, if requested to do so by the employer, by notification in the Official
Gazette, exempt, whether prospectively or retrospectively, any establishment from the
provisions of the EDLI scheme, if he is satisfied that the employees of such
establishment, without making any separate contribution or payment of premium, enjoy
life insurance benefits more favourable than the benefits under the EDLI scheme.
Max New York Life Insurance Co. Ltd offers Group Term Insurance Scheme, a unique,
simple and flexible scheme, that is a far better alternative to the Employee Deposit
Linked Insurance Scheme (EDLI) because of the benefits it offers to both the employer
and the employee. The Employees Provident Fund Organisation has approved this
scheme as an alternative to EDLI scheme.
The organization will enjoy the following advantages by subscribing to the Max New
york Life Group Term Insurance as compared to the EDLI scheme:
The premium payable by the employer under the Max New York Life Group
Term Insurance Scheme will be usually less than the total contribution being paid by the
employer to Regional Provident Fund Commissioner, particularly when average age of
the group is low and the employer is in a low-risk industry.
Flexibility to opt for either a uniform flat cover for all employees or a graded
Well defined and simplified claim process will ensure quicker and hassle-free
claim settlement.
elaborate paperwork.
Credit Shield is a protection cover, which ensures that the loan amount is paid back to the
lender in case of an untimely demise of the borrower.
Convenient Structuring
The plan can be conveniently structured in a way such that the entire loan amount or the
balance loan amount is paid up in case of the untimely demise of the borrower. The
premiums can also be adjusted every year according to the reducing loan balance amount.
This plan provides total peace of mind because in case of an untimely demise of the
borrower, the family is not burdened with the loan.
After an employee has rendered continuous service for at least five years, he/ she is
eligible for 15 of days pay for each completed year of service. The employer can also
structure a gratuity benefit that is higher than statutory requirements. The gratuity benefit
is payable on cessation of employment (either by resignation, death, retirement or
termination etc), by taking last drawn basic salary as the basis for the calculation.
Gratuity payment is a statutory liability for an organization and tends to increase as the
salaries and tenure of employment increase annually. In case of big, developing &
growing organization, gratuity payout can work out to a substantial amount. If the
employer pays gratuity from its current revenue, it may become difficult to meet the
liability, it is therefore prudent and also beneficial that a gratuity fund is set up.
fund income.
Employees can be insured for the future service gratuity for full-anticipated
service.
Max New York Life will provide statement of account every quarter.
For a new fund Max New York Life can assist in formation of the Trust and its
documentation.
An existing Gratuity Fund can be taken over by MNYL and we will offer
assistance in documentation like Deed of variation to the original Trust Deed etc.
Basic Guidelines for Max New York Life Group Gratuity Scheme
1. Eligibility: All employees (members) above the age of 18 are eligible for this plan.
Existing fund approved by the Income Tax Commissioner should be administered
through Trustees under a Trust.
2. Contribution: The Trust will make the contribution to the fund. Contribution can be
made quarterly, half-yearly or yearly.
3. Surrender Fee: In case a Policyholder wants to surrender the policy, a surrender fee is
applicable. This fee is based on the realizable market value of the assets and depending
upon the duration of the association with Max New York Life.
The insurance cover will also form part of Group Gratuity policy.
Gratuity is a statutory benefit to the employees under the Payment of Gratuity Act 1972.
After the employee has rendered continuous service for at least five years, he/ she is
eligible for 15 days pay for each completed year of service. The gratuity benefit is
payable on cessation of employment (either by resignation, death, retirement or
termination etc), by taking last drawn basic salary as the basis for the calculation.
Gratuity payment is a statutory liability for an organization and tends to increase as the
salaries and tenure of employment increase annually. In case of big, developing &
growing organization, gratuity payout can work out to a substantial amount. If the trust
pays gratuity from its current revenue, it becomes difficult to meet the liability, it is
therefore beneficial that a gratuity fund is set up for prudent financial planning.
Apart from being used as an effective tool to reward loyal employees, Gratuity can be
considered as a powerful tool to retain employees as well. This can be done by
structuring a higher gratuity benefit than the statutory requirements. Max New York Life
has made the Group Insurance portfolio more robust by launching the Unit Linked
Gratuity Plan.
Max New York can now offer you two options of:
1.
2.
Unit Linked Group Gratuity Plan: which facilitates steady funding and the
Opportunity for growing the fund safely and prudently by managing the fund
investments properly and maximizing the returns on the investments and thereby bringing
down the costs of the funding liability in the future.
Multiple Flexible Investment options based on the risk taking ability of the trust.
Product Features
Eligibility
Employer-Employee Groups
Group Size of 25 members or more
Employees between age 18 and retirement age of the company
Contributions
MNYL will open and manage a Unit Account for the Trustees in which units are
allocated and cancelled for the purpose of paying Gratuity
The trust also pays a premium for the life insurance cover. This cover could be either the
future service liability or a uniform/graded cover
On receiving a claim, MNYL will redeem the units in the investment fund and pay the
gratuity benefit
In case of death of an insured member, MNYL will also pay the sum assured applicable
for that member in addition to the gratuity benefit
Contributions to be made towards the Gratuity Liability by the Trust to MNYL would be
as per Actuarial Valuation Post AS-15 certification
Past Service Gratuity Liability payment can be made over a period of 5 years
The annual contributions can be made annually/half yearly/quarterly/monthly
Redirection
Annual contributions can be invested as per new fund break-up, not adhering to the initial
investment break-up. This gives more flexibility for better financial planning as per
specific requirements.
Charge Structure
MNYL unit linked Gratuity has one of the most transparent charge structures in the
market currently. The Fund Management charge is also extremely competitive.
Fund Management Charges - The fund management charge is levied as a percentage of
value of assets and shall be appropriated by adjusting the Net Assets Value.
Switching: MNYL UL Group Gratuity plan offers its clients a flexibility to switch funds
from exiting fund to any other fund options, as per trust rules. Two free switches in one
policy year can be availed by the clients.
Surrender Fee: is applicable if a policyholder wants to surrender the policy. This fee is
based on the length of association with Max New York Life.
Fund options
MNYL Group Gratuity plan is a market linked investment product, which offers 3 fund
options to choose from.
Govt. Securities
20-40 0-30
0-20
Equities
Nil
0-20
0-20
10-40 20-60
Saving
KEY BENEFITS
1.
On death of life insured: Sum Assured plus Sum Assured of Paid Up Additions
On maturity: Sum Assured less money backs already paid plus 10% of SA as
Bonus: From 3rd policy year, we will declare bonuses every year.
4.
Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961:
Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every
year.
Your DD rider premiums are eligible for an additional deduction u/s 80D up
We offer you the flexibility to enhance the value of your policy by using the following
riders/options:
1. Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the
ten diseases covered e.g. Heart Attack, Cancer, etc.
2. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case
of death or disability caused by an accident.
3. Term / Term R&C Riders: Offers additional Sum Assured to match your changing
needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your
life.
4. Waiver of Premium (WOP) / Pay or Riders: Waives your future premiums in case
you suffer total disability. The pay or rider waives future premiums on your childs
policy in case you suffer total disability.
1. Cash Bonuses: You can use your bonuses in the following ways:
2. Withdraw in cash: bonus will be paid to you by cheque.
3. Pay your premiums: bonus will be used to pay the next premium.
4. Increase your Sum Assured: bonus will be used to buy additional layers of insurance
cover in the existing policy by buying Paid Up Additions (PUA).
5. Non Forfeiture Options: In case you are unable to pay your premiums, your policy
will lapse and we will utilize your cash value to buy you insurance coverage in one of the
following ways:
Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.
Extended Term Insurance: The same Sum Assured for part of the remaining
In case you do not want either of the above, you can choose to take the cash value by
cheque.
KEY BENEFITS
On death of life insured:
In the first 5 years- Sum Assured plus additional insurance coverage purchased
from
bonuses.
After 5 years- Double the Sum Assured plus additional insurance coverage
purchased from
bonuses.
Bonus: From 3rd policy year, we will declare bonuses every year.
We offer you the flexibility to enhance the value of your policy by using the following
riders/options:
1. Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the
ten diseases covered e.g. Heart Attack, Cancer, etc.
2. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case
of death or disability caused by an accident.
3. Term / Term R&C Riders: Offers additional Sum Assured to match your changing
needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your
life.
4. Waiver of Premium (WOP) / Pay or Riders: Waives your future premiums in case
you suffer total disability. The pay or rider waives future premiums on your childs
policy in case you suffer total disability.
1. Cash Bonuses: You can use your bonuses in the following ways:
2. Withdraw in cash: bonus will be paid to you by cheque.
3. Pay your premiums: bonus will be used to pay the next premium.
4. Increase your Sum Assured: bonus will be used to buy additional layers of insurance
cover in the existing policy by buying Paid Up Additions (PUA).
5. Limited period of premium payment: so that you pay only during the years that you
are earning, while you enjoy the insurance coverage for a longer period.
6. Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that
can lead to death in 6 months; you can use this money for your treatment. The balance of
the sum assured and the bonuses will be payable to your family on the occurrence of the
Insured Event.
7. Non Forfeiture Options: In case you are unable to pay your premiums, your policy
will lapse and we will utilize your cash value to buy you insurance coverage in one of the
following ways:
Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.
Extended Term Insurance: The same Sum Assured for part of the remaining
In case you do not want either of the above, you can choose to take the cash value by
cheque.
20 year Endowment (Participating) Policy helps you save for specific need 20 years from
now viz.
Children's marriage, or
To buy a house, or
Provides you with an insurance cover to protect your family from financial
This policy will mature exactly 20 years after you buy it, and during this period, it also
builds cash value. This policy is also eligible for bonuses. You may use the cash value
and/or the bonuses to fund any unforeseen needs either by surrendering accumulated
PUAs (explained below) or taking a loan.
KEY BENEFITS
On death of life insured or on maturity: Sum Assured plus accrued bonuses.
On Surrender of Policy: Surrender value.
Bonus: From 3rd policy year, we will declare bonuses every year.
Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961:
o
Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every
year.
o
Your DD rider premiums are eligible for an additional deduction u/s 80D up
We offer you the flexibility to enhance the value of your policy by using the following
riders/options:
1. Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the
ten diseases covered e.g. Heart Attack, Cancer, etc.
2. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case
of death or disability caused by an accident.
3. Term / Term R&C Riders: Offers additional Sum Assured to match your changing
needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your
life.
4. Waiver of Premium (WOP) / Pay or Riders: Waives your future premiums in case
you suffer total disability. The pay or rider waives future premiums on your childs
policy in case you suffer total disability.
1. Cash Bonuses: You can use your bonuses in the following ways:
2. Withdraw in cash: bonus will be paid to you by cheque.
3. Pay your premiums: bonus will be used to pay the next premium.
4. Increase your Sum Assured: bonus will be used to buy additional layers of insurance
cover in the existing policy by buying Paid Up Additions (PUA).
5. Limited period of premium payment: so that you pay only during the years that you
are earning, while you enjoy the insurance coverage for a longer period.
6. Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that
can lead to death in 6 months; you can use this money for your treatment. The balance of
the sum assured and the bonuses will be payable to your family on the occurrence of the
Insured Event.
7. Non Forfeiture Options: In case you are unable to pay your premiums, your policy
will lapse and we will utilize your cash value to buy you insurance coverage in one of the
following ways:
Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.
Extended Term Insurance: The same Sum Assured for part of the remaining
In case you do not want either of the above, you can choose to take the cash value by
cheque.
KEY BENEFITS
On death of life insured: Sum Assured plus accured bonus
On maturity: Sum Assured plus Guaranteed Addition @ 10% of Sum Assured plus
accrued bonus plus terminal bonus (if any).
On Surrender of Policy: Surrender value.
Bonus: From 3rd policy year, we will declare bonuses every year.
Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961:
o
Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every
year.
o
Your DD rider premiums are eligible for an additional deduction u/s 80D up
We offer you the flexibility to enhance the value of your policy by using the following
riders/options:
1. Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the
ten diseases covered e.g. Heart Attack, Cancer, etc.
2. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case
of death or disability caused by an accident.
3. Term / Term R&C Riders: Offers additional Sum Assured to match your changing
needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your
life.
4. Waiver of Premium (WOP) / Pay or Riders: Waives your future premiums in case
you suffer total disability. The pay or rider waives future premiums on your childs
policy in case you suffer total disability.
1. Cash Bonuses: You can use your bonuses in the following ways:
2. Withdraw in cash: bonus will be paid to you by cheque.
3. Pay your premiums: bonus will be used to pay the next premium.
4. Increase your Sum Assured: bonus will be used to buy additional layers of insurance
cover in the existing policy by buying Paid Up Additions (PUA).
5. Limited period of premium payment: so that you pay only during the years that you
are earning, while you enjoy the insurance coverage for a longer period.
6. Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that
can lead to death in 6 months; you can use this money for your treatment. The balance of
the sum assured and the bonuses will be payable to your family on the occurrence of the
Insured Event.
7. Non Forfeiture Options: In case you are unable to pay your premiums, your policy
will lapse and we will utilize your cash value to buy you insurance coverage in one of the
following ways:
Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.
Extended Term Insurance: The same Sum Assured for part of the remaining
In case you do not want either of the above, you can choose to take the cash value by
cheque.
Retirement
Easy Life Retirement Plan (Participating) Policy
Easy Life Retirement Plan (Participating) Policy helps you to save money for your
retirement, and also provides you with an opportunity to take home a regular retirement
income (i.e. pension) for your entire life from your chosen date of retirement. This
income is a guaranteed amount, guaranteed when your annuity starts. In addition this
policy is also eligible for bonuses.
KEY BENEFITS
On death of life insured: Refund of accumulated premiums plus cash value of
additional pure endowments purchased from bonuses.
On the chosen retirement date: Sum Assured plus additional insurance coverage
purchased in way of bonuses.
On Surrender: Surrender value (minimum guaranteed @ 55% of premiums paid).
Bonus: From 3rd policy year, we will declare bonuses every year.
Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961:
o
Your premiums are eligible for deduction u/s 80CCC (1) up to Rs.10,000/-
every
year.
eligible for
Bonuses: Your bonuses are used to purchase pure endowments, which add to the
Annuity Options: You can use the maturity value to buy an annuity from us or
any other IRDA approved annuity provider. We currently offer the following annuity
options:
Annuity for life: you will receive a fixed amount for your entire life.
Annuity for a guaranteed minimum period of 5/10/15/20 years and for life
thereafter: In case death occurs to you before the guaranteed minimum period, we shall
still pay the annuity to your family for the balance of the guaranteed minimum period
chosen by you.
Life Annuity with Return of Annuity Purchase Price: In case of your death,
we shall refund the original maturity value you had used to buy your annuity.
Endowment to age 60 policy is a quasi retirement policy that helps you to save primarily
for your retired life. It will mature on the policy anniversary after your 60th birthday, and
enables you to use the maturity proceeds in many ways viz.
Purchase that house in your hometown where you want to lead your retired life
Pay for your childs higher education or marriage and also provides you with an
insurance cover to protect your family from financial uncertainties in case of your
untimely death before reaching age 60.
Till age 60, this policy also builds cash value, and is eligible for bonuses .
You may use the cash value and/or the bonuses to fund any unforeseen needs
KEY BENEFITS
On death of the life insured: Sum Assured plus accrued bonuses plus terminal
On maturity (attaining age 60): Sum Assured plus accrued bonuses plus
Bonus: From 3rd policy year, we will declare bonuses every year.
Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961:
every year.
o
Your DD rider premiums are eligible for an additional deduction u/s 80D
We offer you the flexibility to enhance the value of your policy by using the following
riders/options:
1. Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the
ten diseases covered e.g. Heart Attack, Cancer, etc.
2. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case
of death or disability caused by an accident.
3. Term / Term R&C Riders: Offers additional Sum Assured to match your changing
needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your
life.
4. Waiver of Premium (WOP) / Pay or Riders: Waives your future premiums in case
you suffer total disability. The pay or rider waives future premiums on your childs
policy in case you suffer total disability.
1. Cash Bonuses: You can use your bonuses in the following ways:
2. Withdraw in cash: bonus will be paid to you by cheque.
3. Pay your premiums: bonus will be used to pay the next premium.
4. Increase your Sum Assured: bonus will be used to buy additional layers of insurance
cover in the existing policy by buying Paid Up Additions (PUA).
5. Limited period of premium payment: so that you pay only during the years that you
are earning, while you enjoy the insurance coverage for a longer period.
6. Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that
can lead to death in 6 months; you can use this money for your treatment. The balance of
the sum assured and the bonuses will be payable to your family on the occurrence of the
Insured Event.
7. Non Forfeiture Options: In case you are unable to pay your premiums, your policy
will lapse and we will utilize your cash value to buy you insurance coverage in one of the
following ways:
Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.
Extended Term Insurance: The same Sum Assured for part of the remaining
In case you do not want either of the above, you can choose to take the cash value by
cheque.
Children
Children's Endowment 18 & 24 Policy enables you to provide for specific needs of your
growing children viz.
Child Endowment to Age 18 enables you to provide for higher education of your
child.
Child Endowment to Age 24 enables you to provide for the best possible wedding
of your child and also builds cash value, which you can use during to fund any
unforeseen needs by taking a loan.
KEY BENEFITS
On death of life insured: Refund of premiums plus interest plus accrued bonus.
On Maturity: Sum Assured plus accrued bonus.
On Surrender of Policy: Surrender value.
Bonus: From 3rd policy year, we will declare bonuses every year.
Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961:
o
every year.
o
We recommend that you enhance the value of your policy by buying the following rider:
Pay or Rider: Waives your future premiums in case you suffer total disability or meet
with an untimely death. This ensures that your child will still get the lump sum money on
attaining age 18 or 24.
On maturity of the policy, the benefits payable under the policy shall automatically vest
with your child so that your child received the benefits.
KEY BENEFITS
On death of life insured: Sum Assured along with additional insurance coverage
purchased in way of bonuses. Five years before maturity 30% of Sum Assured, Two
years before maturity 35% of Sum Assured, at maturity 35% of Sum Assured plus
30% of Guaranteed Sum Assured.
On Survival / maturity: Five years before maturity 30% of Sum Assured, Two
years before maturity 35% of Sum Assured, at maturity 35% of Sum Assured + 30%
of Sum Assured as Guaranteed Additions plus additional insurance coverage purchased
from bonuses.
Bonus: From 3rd policy year, we will declare bonuses every year.
Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961:
every year.
o
Your DD rider premiums are eligible for an additional deduction u/s 80D
We offer you the flexibility to enhance the value of your policy by using the following
riders/options:
1. Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the
ten diseases covered e.g. Heart Attack, Cancer, etc.
2. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case
of death or disability caused by an accident.
3. Term / Term R&C Riders: Offers additional Sum Assured to match your changing
needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your
life.
4. Waiver of Premium (WOP) / Pay or Riders: Waives your future premiums in case
you suffer total disability. The pay or rider waives future premiums on your childs
policy in case you suffer total disability.
Cash Bonuses: You can use your bonuses in the following ways:
Pay your premiums: bonus will be used to pay the next premium.
Increase your Sum Assured: bonus will be used to buy additional layers of
Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that
can lead to death in 6 months; you can use this money for your treatment. The balance of
the sum assured and the bonuses will be payable to your family on the occurrence of the
Insured Event.
Non Forfeiture Options: In case you are unable to pay your premiums, your policy
will lapse and we will utilize your cash value to buy you insurance coverage in one of the
following ways:
Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.
Extended Term Insurance: The same Sum Assured for part of the remaining term
of your policy.
In case you do not want either of the above, you can choose to take the cash value by
cheque.
LITRATURE SURVEY
Meaning of HUMAN RESORCE MANAGEMENT
Human Resource plays a crucial role in the development process of the modern economics.
ARTHUR LEWIS observed
There are great differences in development between countries which seem to
have roughly equal resources, so it is necessary to enquire into the difference
in human behaviors
Human resource management is the management of employees skill,
knowledge, ablities, talent, aptitude, creativity, ability etc. Different terms
are used for denoting Human Resource Management they are labour
management, labour administration labour management relationship,
employee employer relationship, industrial relationship, human capital
management, human assent management etc. Though these terms can be
used differently widely, the basic nature of distinction lies in the scope or
coverage and evolutionary stage. In simple sence, human resource
management means employing people, developing their resources,
utilizing, maintaining and compensating their services in tune with the job and
organizational requirements.
Administration:
Strategic planning, organizational
policy
Benefits:
Compensation:
Salary and benefit surveys, job evaluation, job descriptions evaluation, job descriptions
Employee relation:
Employee services:
Enrolment in benefits, employee discounts for recreational spots, resolution of enrolment
or claim problems, employee newsletter. Educational assistance, employee service
awards
Fiscal:
Leaves of absence:
State and/or Federal Family and Medical Leave rights, County approved leaves of
absence, rights upon return to work, light duty assignments for temporary periods.
Payroll administration:
Performance appraisal:
Employee files, litigation files, payroll records, safety records and other administrative
files
Record-keeping:
Job posting, advertising, testing administration, employment interviews, background
investigations, post-offer employment testing.
Recruitment:
Recruitment is defined as a process to discover the sources of manpower to meet the
requirement of the staffing schedule and to employ effective measures fir meet the
requirement of the staffing schedule and to employ to employ effective measures for
attracting the manpower in adequate numbers to facilitate effective selection of an
effective workforce.
Selection:
After identifying the sources of human resources, searching for prospective employees
and stimulation helps too apply for jobs in an organization, the management has to
perform the function of selecting the right man at right job and at the right time.
Rights
upon
termination
of
employment,
severance
benefits,
unemployment
This department looks after the needs and Requirement the present employees. This
Department includes number of function which are as
Follows:
1. Training and Development it includes technical, soft skills and process related to
training
2. Process and policies it contains all the rule and regulations that need to be
followed by the employees.
3: Appraisal and increment- it is in the formal feedback to the employees about their
performance and the conduct of work.
4: Induction-involves the information to the new employees about the company, job,
departments etc
5: Motivational activities and entertainment- involves motivating the employees to
improve their productivity.
6: Roles and responsibilities-that every individual employee needs to fulfil
7: Key Result Area (KRA) it is the measurement quantifiable of output for the roles
of responsibilities.
12: Helpdesk
13: Employee verification-take place at the time of joining of the new employee.
14: Surveys
15: Project trainees
16: Counselling and grievance handling-both are different as counselling is basically
helping out in personal problems whereas, grievances Handling involves the handling of
complains that the employees has towards the management.
All the above head are included in the human resource development and involves the
over all development of individual employees which in turn increases the over all profit
of the company.
RECRUITMENT
RECRUITMENT
Recruitment is hiring of employees from outside. Recruitment has been regarded as the
most important function of the HR department , because unless the right type of people
are hired, even the best plans, organization chart and control system would not do much
good.
Recruitment is the discovering of potential applicant for actual or anticipated
organizational vacancies. Accordingly the purpose of recruitment is to locate sources of
manpower to meet the job requirements and job specification. It is defined as a process
to discover the sources of manpower to meet the requirements of staffing schedule and to
apply effective measures for attracting the manpower to adequate number to facilitate
effective selection of an effective workforce Yoder points out that recruitment is a
process to discover the sources of manpower to meet the requirement of the staffing
schedule and to employee effective measures to attracting that manpower in adequate
number to facilitate effective selection of an effective workforce.
Edwin B Flippo defines recruitment as the process of searching for prospective
employees and stimulating them to apply for the jobs in the organization. It is the
process of finding and attracting capable applicants for employment. The process begins
when new recruits are sought and ends when their application are submitted. The result is
a
pool
of
applicants
from
which
new
employees
are
selected.
METHODS OF RECRUITMENT
Dunn and Stephens summaries the possible recruiting methods into three categories,
namely
1: Direct method
2: Indirect method
3: Third party method
DIRECT METHOD
The direct method includes sending of the recruiters to different educational and
professional institutions, employees contact with public, and mannered exhibits. One of
the widely used methods is sending the recruiters to different colleges and technical
schools. This is mainly done with the cooperation of the placement office of the college.
Sometimes, firms directly solicit information form the concerned professors about
student with an outstanding records. Other direct methods include sending recruiters to
conventions and seminars, setting up exhibits at fairs, and using mobile offices to go the
desired centers.
INDIRECT METHOD
Indirect method involves mainly advertising in newspapers, on the radios, in trade and
professional journals, technical magazines and brochures.
Advertisements in newspapers and or trade journals and magazines are the most
frequently used methods. Senior post is largely filled with such methods. Advertising is a
very useful for recruiting blue color and hourly worker, as well as scientific, professional,
and technical employees. Local newspaper can be good sources of blue collar workers,
clerical employees, and lower level administrative employees. The main point is that the
higher the position in the organization the more dispersed advertisement is likely to be.
The search for the top executive might include advertisement in a national periodical,
whereas the advertisement of the blue color jobs usually confine to the daily newspaper.
According to the Advertisement tactic and strategy in personnel Recruitment, three
main points need to be borne in the mind before an advertisement in inserted. First, to
visualize the type of applicants one is trying to recruit. Second, to write out a list of
advantages the company offers, or why should the reader join the company.Third, to
decide where to run the advertisement , not only in which area, but also in which
newspaper having a local, state or a nation- wide circulation.
THRID PARTY
These include the use of commercial or private employment agencies, state agencies, and
placement offices of schools colleges and professional associations recruiting firms,
management consulting firms, indoctrination seminars for college professors, and friends
and relatives.
Private employment agencies are the most widely used sources. They charge a small fee
from the applicant. They specialize in specific occupation; general office help, salesmen,
technical workers, accountant, computer staff, engineers and executives.
State or public employment agencies are also known as the employment or labour
Exchanges are the main agencies for the public employment. Employers inform them of
their personnel requirement, while job seekers get information for them about the type of
job are referred by the employer. Schools and colleges offer opportunities for recruiting
their student. They operate placement services where complete biodata and other
particular of the student are available.
Professional organization or recruiting firms maintain complete information records
about employed executive. These firms maintain complete information records about
employed executives. These firms are looked upon as the head hunters, raiders, and
pirates by organization which loose their personnel through their efforts.
Objective of recruitment
1: To attract with multi dimensional skills and experience that suite the present and future
organization strategies.
2: To induct outsider with new perspective to lead the company.
3: To infuse fresh blood at all levels of organization.
4: To develop an organizational culture that attracts competent people to the company.
5: To search or headhunt people whose skill fit the companys values.
6: To seek out non-conventional development grounds of talent
7: To devise methodology for assessing psychological traits.
8: To search for talent globally not just with in the company.
9: To design entry pay that competes on quality but not on quantum.
10: To anticipate and find people for position that doesnt exists yet.
There are two types of factors that affect the Recruitment of candidates for the company.
1: Internal factors: These includes
Companys pay package
Quality of work life
Organizational culture
Companys size
Companys product
Growth rate of the company
Role of trade unions
Cost of recruitment
Information system
Government polices
Recruitment sources
Recruitment needs
Recruitment cost
The objectives theory views that the process of organizational choice as being one of
weighing and evaluating set of measurable characteristic of employment offers, such pay,
benefits , location, opportunity for advancement, the nature of job to performed, and
education opportunities.
Whereas, the critical contact theory suggests that the typical candidates is unable to
make a meaningful differentiation of organizations offers in terms of objective or
subjective factors, because of his limited or very short contact with the organization.
Choice can be made only when applicant can readily perceive the factors such as the
behaviour of the recruiters, the nature of the physical facilities, and such as the efficiency
in processing paper work association with the application.
On the other hand, the subjective theory emphasizes the congruence. Here the choices
are made on highly personal and emotional basis.
Recruitment Process
The actual steps involved in recruitment follow a well defined path:
Application shortlist : In this step, we shortlist the resume received from various sources
based on the suitability for the requirement.
Preliminary Assessment : The short listed candidates go through a preliminary round of
interviews. This interview lays more emphasis on functional competencies. To have more
data on the functional skills, the candidates may be given a business case for analysis and
presentation (This is done for certain positions only).
Final interview : Here the candidates who successfully clear the first round of interview
go through another round of interview with one or more of the functional heads.
Medical Evaluation: Candidates who are selected by Colgate are asked to undergo a
medical test.
PHILSOPHIES OF RECRUITEMT
Basically there are two Philosophies of recruitment. These are as follows:
1: REALISTIC JOB PREVIEWS (RJP)
Realistic Job Previews provides complete job related information to the applicants so that
they can make the right decision before taking up the jobs. It includes positive and the
negative aspects of the job.
2: JOB COMPATIBILITY QUESTIONNAIRE: (JCQ)
Job compatibility Questionnaire was developed to determine whether an applicants
preference for the work match the characteristic of the job. The JCQ is designed to collect
information on all aspects of the job which have a bearing in on employee performance
.absenteeism, turnover and job satisfaction. The underlying assumption of JCQ is that,
greater the compatibility between an applicants preference for the job and characteristic
of the job as perceived by the job seeker, the greater the probability of employee
effectiveness and longer the tenure.
SELECTION
Selection is a negative process and involves the elimination of candidates who do not
have the required skills and qualification for the job proposed. Also it is a process of
differentiating between applicants in order to identify and hire those with grater
likelihood of success in job.
The objective of selection decision is to choose the individual who can most successfully
perform the job from the pool of qualified candidates. It is the system of function and
devise adopted in a given company to ascertain whether the candidates specifications are
matched with the job specifications and recruitment or not.
Selection process or activities typically follow a standard patter, beginning with an initial
screening interview and concluding with final employment decision. The traditional
selection process includes: preliminary screening interview, completion of application
form, employment test, comprehensive interview, background investigation, physical
examination and final employment decision to hire.
Until recently the basic hiring process was performed in a rather unplanned manner in
many organizations. In some companies, each department screened and hired its own
employees. Many mangers insisted on screening their own employees as they thought no
one else could do that as efficiently as they themselves
But now selection is centralized and handled by the Human Resource Department. This
type of arrangement is also preferred due to some of these advantages:
applications to a single
centralized department.
responsibilities. This
is especially helpful during the chief hiring period.
variety of jobs.
important that
people who know about these rules handle a major part of the selection
process.
The main objective of selection process is to hire people having competence and
towards the given job profile. But due to some reason the main purpose of
commitment
effectively selecting
Includes:
- Profile matching
- Organization and social environment
- Multi correlations
- Successive hurdles
1. Personal Interview.
2. Telephonic Interview.
PERSONAL INTERVIEW
This is regarded to be the BEST FORM of interview. In such form of an interview the candidate
personally appears in front of the interviewer and gives his interview. This is regarded to be the
best form of interview as the interviewee has the best chances of making his points clear in front
of the interviewer.
TELEPHONIC INTERVIEW
Sometimes an interview is taken on the phone. A telephonic conversation is done between the
interviewer and the interviewee where the interviewer calls up the candidate via phone and
conducts the interview.
DATA ANALYSIS
DATA ANALYSIS
Internal
9%
External
18%
Both
73%
About 75% of the manager say that they prefer both internal as well as external source for
recruitment and selection where as only 9% go for internal source and 18% go for external
sources.
Question: Which method do you mostly prefer for recruitment and selection preferred way
of recruitment?
Third party 3%
Indirect
32%
Direct
65%
About 65% of the mangers go for direct recruitment and selection and 32% go for indirect and
only 3 % go for third party recruitment way.
20%
30%
50%
Yearly
Quaterly
No fixed Time
Around 50% of the managers go for Quarterly manpower planning and 20 % do not follow any
pattern they dont have any fixed time where as 20% go for yearly.
Question: What are the sources for external recruitment are preferred?
Campus
25%
interviews
34%
Placement
33%
agencies
8%
Around 34% of manager go for campus interviews, 33% go for data bank, 25% from the casual
application that are received and only 8% go for any placement agencies.
Bibliography
Source for Primary Data
Respondents 80
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