SUMMER TRAINING REPORT On

A study of Job Satisfaction level of Financial Consultants at Reliance Life Insurance

Submitted in Partial Fulfillment for the Award of the Degree of Bachelor in Business Administration 2008-2011

Under the Guidance of: MS.POONAM CHAWLA Sr. LECTURER

Submitted By: PREETI 1361471708

Maharaja Agrasen Institute of Management Studies Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No. 1, Sector 22, Rohini, Delhi 110086

STUDENT DECLARATION

This is to certify that I have completed the Summer Project titled A study of Job Satisfaction level of Financial Consultants at Reliance Life Insurance in Reliance Life Insurance Company under the guidance of Nimit Verma in partial fulfillment of the requirement for the award of Degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

Date: Place:

Signature: Name: University Enrollment No.:

CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the summer project titled A study of Job Satisfaction level of Financial Consultants at Reliance Life Insuranceis an academic work done by Preeti submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration from Maharaja Agrasen Institute of Management studies Delhi, under my guidance & direction.

To the best of my knowledge and belief the data & information presented by her in the project has not been submitted earlier.

Signature

Name of the Faculty

: MS. POONAM CHAWLA

Designation

: SR. LECTURER

ACKNOWLEDGEMENT

I would like to express gratitude and thanks to my project guide namely Ms. Poonam Chawla for her support and guidance helping me shape my ideas about the project and mature them into a reality, for his priceless insights, tips and inputs without which my project would not have been possible. I thank her for being my mentor, educating me about the working and intricacies of the insurance sector, the distribution network and innumerable other details. I am also indebted towards RELIANCE SLIC and its employees who in one way or the other contributed towards making our endeavor a success. I hope this project serves the purpose it was intended for and benefits the organization in as many ways as possible.

Preeti

EXECUTIVE SUMMARY

Financial consultants are an indispensable part of the insurance industry. They are instrumental in selling and promoting the companys product. But it has been observed that individuals are not interested in choosing financial consultancy as a permanent career. The project report is a study of job satisfaction level of financial consultants at Reliance Life Insurance. The project is divided in the following chapters:-

Chapter 1 includes the introduction of the topic and briefly deals with the company and industry profile. Chapter 2 deals with research methodology which mentions the sources and methods of data collection and analysis. Chapter 3 includes the data analysis and the findings from the data collected through survey. Chapter 4 reflects the conclusion Chapter 5 represents the suggestions for the organization Chapter 6 provides the limitations in the project.

CONTENTS Student Declarationi Certificate from Company..ii Certificate from Guide...iii Acknowledgement.iv Executive Summary...v
1. INTRODUCTION TO THE PROJECT
1.1 1.2 1.3 1.4 1.5 Overview of Industry.07 Profile of RELIANCE SLIC..11 Problems of RELIANCE SLIC .12 Competitive Information13 S.W.O.T Analysis...30

2. OBJECTIVE & METHODOLOGY

2.1 2.2 2.3 2.4 Significance. 32 Objective of study ...33 Scope of the study .. 33 Methodology... 34

3. CONCEPTUAL DISCUSSION... 36 4. DATA ANALYSIS & FINDINGS.................................................44 5. CONCLUSINS & SUGGESTIONS..58 6. LIMITATIONS..61 BIBLIOGRAPHY ANNEXURES ATTENDANCE EVALUATION SHEET

CHAPTER - 1 INTRODUCTION
1.1 Overview of Industry as a whole

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the countrys GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC. Since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.

The origin of insurance is very old .The time when we were not even born; man has sought some sort of protection from the unpredictable calamities of the nature. The basic urge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. 1993: Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. the

History Of The Joint Venture

Discussions commenced - January 1995 Joint Venture agreement signed October 1995 Joint venture agreement renewed October 1998

Life insurance project team established January 2000 (Mumbai) Company officially incorporated - 14th August 2000 First Private Sector Life Insurance Company to be granted a certificate of registration 23rd October 2000 Shareholding RELIANCE Standard Life 81.4% 18.6%

Mission Statement of RELIANCE SLIC :

We aim to be the top new life insurance company in the market.

This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share.

Vision Statement The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry. In short, the most obvious choice for all. Values That Will Be Observed In RELIANCE SLIC: Integrity Innovation Customer Centric People Care Team Work One for all & all for one Joy & Simplicity

Integrated Financial Services

RELIANCE HOME LOANS

RELIANCE DEPOSITS

RELIANCE

realty.com

RELIANCE SLIC

CENTRE FOR HOUSING FINANCE

RELIANCE BANK

RELIAN CE
FUTURE ACTIVITIES

RELIANCE MUTUAL FUNDS

SECURITISATION

RELIANCE SECURITIES CIBIL i.e CREDIT INFORMATION BUREAU LTD

INTELNET

DISTRIBUTION

RELIANCE CHUBB GENERAL INSURANCE CO. LTD

1.2 Profile of the OrganizationRELIANCE Standard life insurance Co. ltd

RELIANCE i.e. HOUSING DEVELOPMENT AND FINANCIAL CORPORATION. RELIANCE Standard Life is a joint venture between RELIANCE of India and Standard Life of UK. The new company, RELIANCE Standard Life, was one of the first to be awarded a license in the recently deregulated Indian market and one of the first to open its doors for business and issue policies. Founded in 1977, RELIANCE is Indias market leader in housing finance, providing finance for more than 1.5mn homes. They have 83 offices in India, one international office in Dubai and three service associates in Kuwait, Qatar and the Sultanate of Oman. Like Standard Life, RELIANCE is strongly committed to providing quality products and excellent customer service and has won a number of important awards: in Jan 2001 Asia money named them as second Best managed company in India. RELIANCE is also financially very strong and for the last six years has enjoyed the highest financial strength ratings from Indias two leading rating agencies.

The RELIANCE group includes:

RELIANCE Bank RELIANCE Asset Management RELIANCE Realty Ltd. RELIANCE Securities Limited

Over the period of operations, RELIANCE group has been felicitated with various rewards. Some of them are as follows: United Nations Scroll of Honor 1991 Indias best managed company by Asia money magazine 1995 and 1996 Most competitive Indian company by Euro money 1997

One of the 5 best Indian Boards by Business Today 1997 Rated as one of the best companies in India for strategy & management and investor relations by Asia money 1998. Excellence in service industry by the Indian Institute of Marketing Management & Top Management Club (Pune) 1998 Shield for the best presented accounts for banks and financial institutions over 11 times (last 8 years in a row) 1999 IMC Ramakrishna Bajaj National Quality Award in the service category. CII-Exim Bank Commendation Certificate for commitment to Total Quality Management 2000.

1.3 PROBLEMS OF RELIANCE SLIC

Since RELIANCE SLIC is a private player in the insurance industry, it has not yet reached break-even. Hence, it has high cost due to which its premiums are high as compared to LIC.

It has to create credibility in the public. It has to compete with the wide range of products that its competitors offer. It has to focus towards rural segment also which has a great scope of growth. It has to decide on the strategies to be adopted which will help to counter competition. It has to increase its no. of branches and also enhance its network of agents so that it can compete with LIC. It has to focus on providing effective training to its agents so that the customer base can be increased and moreover customer satisfaction can be ensured.

1.4 COMPETETIVE INFORMATION

LIFE INSURANCE CORPORATION MARKET LEADER INTRODUCTION The Life Insurance Corporation of India (LIC), a public sector enterprise, is the largest insurance company in India, selling insurance products and related services. In March 2001, LIC had a total asset base of Rs.1936.2 billion and a total premium income of Rs.342.07 billion. By April 2002, the total sum assured under 23.2 million policies stood at Rs.1925.7 billion. LIC had a variety of insurance plans to cater to various categories of people and their diverse needs. The company offered life insurance and group insurance. It also provided social security schemes and pension schemes. Each of its business products offered a variety of different plans to suit different customers and situations. Investment in LIC was considered by a majority of its customers to be reliable and secure. Housing loans were granted through its subsidiary and LIC sold its market savings and investment products through its mutual fund subsidiary, LIC Mutual Fund Ltd. To serve its 140 million policyholders (2001 end), the insurance giant had 1.25 lakh employees and 6.51 lakh agents across the country. The company, which was based in Mumbai, had seven zonal offices, 100 divisional offices, and 2,048 branch offices that spanned the country. LIC's penetration in rural areas was very high; 18% of its total business came from rural areas. Since LIC enjoyed monopoly status for over four decades, it emerged as one of the key public fundraisers in India. However, things began changing in the mid-1990s, when the Government of India decided to privatize the insurance sector. The Malhotra committee's (formed to explore the possibility/feasibility? of privatizing the Indian insurance industry) recommendations in 1994 brought about a sea change in the industry.

LIC found itself in a difficult situation when the newly formed Insurance Regulatory Development Authority (IRDA) issued licenses to many private insurance companies (starting November 2000). To sustain its growth in an intensely competitive environment, the company, on the recommendations of Booze, Allen and Hamilton, started initiated organizational changes and became more customer-focused initiatives. The company's attitude towards the changing insurance scenario was summarized by its Managing Director, N C Sharma, "The element of competition will bring out the best (in us)." The concept of life insurance came to India when two British insurance companies were established in the country - the Oriental Life Insurance Company (in Calcutta in 1818) and Bombay Life Assurance Company (in Bombay in 1823). Over the next few decades, the life insurance business, which grew in an unregulated environment, concentrated on urban areas and catered primarily to the higher strata of society. In 1912, the Indian Life Assurance Companies Act was passed to regulate the life insurance. Later, in 1928, the Indian Insurance Companies Act was enacted to enable the government to collect statistical information on both life and non-life insurance business transacted in India by Indian and foreign insurers, including provident insurance societies. In 1938, the earlier legislation was consolidated and amended by the Insurance Act, 1938, to protect the interests of the insuring public. The Insurance Act of 1938 was amended in 1950, and brought about far-reaching changes in the insurance sector. These included a statutory requirement of equity capital for companies carrying on life insurance business, a ceiling on share holdings in such companies, stricter control on investments, and submission of periodical returns relating to investments and other such information to the controller. The controller could also call for the appointment of administrators and could put a ceiling on the expenses of management and agency commission for mismanaged companies. By 1956, there were 154 life insurance companies in India. Malpractices and mismanagement had crept into the management of several of these companies. More than 50 private insurance companies had been liquidated or swindled the policyholders. There

were complaints of different types of malpractices by many insurance companies. These included falsification and denial of claims, and inter-locking of funds. To protect the public, the government nationalized the insurance industry. On January 19, 1956, the management of the life insurance business of 245 Indian and foreign insurers and provident insurance societies then operating in India were taken over by the central government. The main objective of the nationalization of life insurance was to channel insurance funds for the benefit of the community at large.

Vision : "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India." Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development." Types Of Plans Offered: 1. Individual plans 2. Group schemes 3. Pension plans Individual plans
1. Whole life schemes

a. Whole life with profit b. Limited payment whole life c. Single premium plan 2. Endowment schemes a. Endowment plan with profit b. Limited payment endowment c. Jeevan mitra (double cover)

d. Jeevan mitra (triple cover) e. Jeevan anand f. New janaraksha 3. Term assurance plan a. Jeevan anurag b. Komal jeevan c. Jeevan kishore d. Jeevan chhaya e. Marriage/endowment annuity f. Deferred endowment 4. Periodic Money Back Plan a. Bima Gold b. Jeevan Rekha Plan c. Money Back Plan d. Jeevan surabhi e. Jeevan Bharati 5.. For Benefit Of Handicapped a. Jeevan Aadhar b. Jeevan Vishwas

7. Joint Life Plan a. Jeevan Saathi 8. Plan For High-Worth Individual a.Jeevan Shree-I b. Jeevan Pramukh 9.Capital Market Linked Plan a. Bima plus

10. Special Plan a. Jeevan Saral

b.

Future Plus

11. Investment Plan

a.

Bima Nivesh 05

Group Schemes 1. Group Term Insurance Scheme 2. Group Gratuity Scheme 3. Group Superannuation Scheme 4. Group Savings Link Insurance Scheme 5. Group Mortgage Redemption Assurance Scheme Social Security Schemes Janashree Prima Yojana Krishi Shramik Samajik Yojana Samajik Suraksha Yojana Shiksha Sahayog Yojana

Pension Plans a. Jeevan Nidhi b. Jeevan Akshay III c. New Jeevan Dhara I d. New Jeevan Suraksha I e. Future Plus ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. ICICI Prudential has consolidated its position as the leading private life insurer in India. ICICI Prudential's annualized premium grew more than three fold over the previous year. Continuing with its 'Customer First' philosophy, ICICI Prudential has significantly expanded its presence to 29 operational Branches (2001-2002: 16), with the Advisor. Force growing to over 18,000. Its has also strengthened its Alternate Distribution channels, i.e. Banc assurance, Corporate Agents and Direct Marketing, making purchase of insurance more accessible. Banc assurance and Direct Marketing channels have contributed to over 18% of the Annualized Premium. ICICI Prudential was amongst the first to identify the emerging opportunity in the Pension segment and launched two linked pension products- Lifetime Pension and Life Link Pension, which have been well received in the market. ICICI group ICICI Bank is India's second-largest bank with total assets of about Rs.1,676.59 bn(US$ 38.5 bn) at March 31, 2005 and profit after tax of Rs. 20.05 bn(US$ 461 mn) for the year ended March 31, 2005 (Rs. 16.37 bn(US$ 376 mn) in fiscal 2004). ICICI Bank has a network of about 573 branches and extension counters and over 2,000 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to

offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. At September 20, 2005, ICICI Bank, with free float market capitalization* of about Rs. 400.00 billion (US$ 9.00 billion) ranked third amongst all the companies listed on the Indian stock exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Mathura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both

entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transactionbanking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. Prudential group Prudential began its first Asian operations in India in 1923. Today, it is the leading European life insurer in Asia, employing over 8,700 staff and serving more than 5.7 million customers.

Prudential Corporation Asia has 23 operations in 12 countries, namely:

China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. These include strategic partnerships with some of the region's leading players, including:
o

Bank of China International for Mandatory Provident Fund business

in Hong Kong;
o o

CITIC for life business in China; ICICI Bank for life and mutual funds business in India.

Prudential Corporation Asia is Europe's leading life insurer in Asia in terms of market coverage and number of top five market positions.

Prudential Corporation Asia's distribution is predominantly through its 138,000 tied agents but also through other distribution channels such as banc assurance agreements (including Standard Chartered Bank in Hong Kong, Malaysia, Singapore, Taiwan and Thailand).

ICICI Pru offers a complete range of insurance products. 1. Protection Plans 2. Savings Plans 3. Child Plans 4. Investment Plans 5. Retirement Plans 6. Group Plans 7. Rural Plans 8. Plans for NRIs 9. Key man Plans Protection Plans a. Life guard b. Invest shield life c. Invest shield cash d. Invest shield gold
e. f. g. h. i. j.

Premier life Life Time & Life Time II Secure Plus Cash Plus Save n Protect Cash Bank Smart Kid regular premium

Child Plans
a.

b. c. d.

Smart Kid unit-linked regular premium Smart Kid unit-linked regular premium II Smart Kid unit-linked single premium II a. Life Link II

Investment Plans Retirement Plans a. Golden Years b. Invest Shield Pension c. Lifetime Pension II d. Lifeline Pension II e. Secure Plus Pension f. Forever Life ICICI Prudential offers 2 specially designed rural plans. a. ICICI Pru Mitr endowment plan b. ICICI Pru Suraksha regular premium TATA AIG Tata AIG Life Insurance Company Ltd. and Tata AIG General Insurance Company Ltd. (collectively "Tata AIG") are joint venture companies, formed from the Tata Group and American International Group, Inc. (AIG). Tata AIG combines the strength and integrity of the Tata Group with AIG's international expertise and financial strength. The Tata Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 per cent stake. Tata AIG Life Insurance Company Ltd. provides insurance solutions to individuals and corporate. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001. Tata AIG Life offers a broad array of life insurance coverage to both individuals and groups, with various types of add-ons and options available on basic life products to give consumers flexibility and choice. The non-life insurance arm, Tata AIG General Insurance Company, which started its operations in India on January 22, 2001, offers the complete range of insurance for

automobile, home, personal accident, travel, energy, marine, property and casualty, as well as several specialized financial lines. History The Tata Group, easily India's most recognised business group, was founded by Jamsetji Tata and began with a textile mill in central India in the 1870s. From there, it has evolved into a truly diversified conglomerate spanning, among other sectors, Engineering, Energy, Chemicals, Consumer Products, and Communications & IT. The group established Tata Ltd, London in 1907, then expanded into Airlines and Commercial Vehicles between 1930 and 1950, in 1998 launched the Indica, India's first truly indigenous passenger car for the mass market and in 2000, it acquired the Tetley Group, UK. THE TATA GROUP The Tata Group is India's best-known industrial group with an estimated turnover of around US $ 14.25 billion (equivalent to 2.6 % of India's GDP). Known for its adherence to business ethics, it is India's most respected private business group. With more than 220,000 employees across 91 major companies, it is also India's largest employer in the private sector. Founded by Jamsedji Tata in the 1860s, the Tata Group's early years were inspired by the spirit of nationalism. The Tata Group pioneered several firsts in Indian industry: India's first private sector steel mill, first private sector power utility, first luxury hotel chain and first international airline, amongst others. In more recent times, the Tata Group's pioneering spirit continues to be showcased by companies like Tata Consultancy Services (TCS), today Asia's largest software and services company, and Tata Motors, the first car maker in a developing country to design and produce a car from the ground up. The business operations of the Tata Group currently encompass seven business sectors Engineering, Materials, Energy, Chemicals, Consumer Products, Services, and Communications and Information Systems. The scale of the Tata Group's operations is increasingly turning global. Tata Tea was the first Indian MNC in the global tea industry; Tata Steel is one of the world's lowest cost producer of steel; Tata Chemicals is one of

Asia's largest manufacturer of soda ash; Titan is one of the world's top six manufacturerbrands in the watch segment, and Tata Motors is amongst the top six commercial vehicle manufacturers in the world. The Tata Group is increasingly focusing on new technology areas, and has the largest footprint in the information technology and communication sector in India. Besides being the largest software services provider in the country, it is also one of the leading private sector telecom service providers and is also India's largest international long distance and Internet services provider. The Tata brand is recognized as the largest homegrown brand in India and the most respected brand. The Tata Group's stable of brands also includes many national and some internationally renowned product and service brands, including Tata Indica, Tata Indigo, Indigo Marina, Tata Safari, Tata Indicom, Taj Group of Hotels (Luxury, Business and Leisure), IndiOne, Tata Tea, Tetley, Tata Salt, Tata Steelium, Tata Shaktee, Tata Tiscon, Tata Bearings, Titan, Tanishq, Voltas and Westside. The Tata Group has always believed in returning wealth to the society it serves. Thus, nearly two-thirds of the equity of Tata Sons, the Tata Group's promoter company, is held by philanthropic trusts, which have created a host of national institutions in science and technology, medical research, social studies and the performing arts. The Trusts also provide endowments, grants and programmed aid to NGOs in the areas of education, healthcare and social upliftment, and financial assistance to deserving individuals. By combining ethical values with business acumen, globalization with national interests and core businesses with emerging ones, the Tata Group aims to be the largest and most respected global brand from India whilst fulfilling its long-standing commitment to improving the quality of life of its stakeholders. THE AIG GROUP American International Group, Inc. (AIG) is the world's leading international insurance and financial services organization, with operations in approximately 130 countries and jurisdictions. AIG member companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer.

In the United States, AIG is the largest underwriter of commercial and industrial insurance and is one of the top three life insurers. AIG's global businesses also include financial services, retirement savings and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making. AIG's growing global consumer finance business is led in the United States by American General Finance. AIG also has one of the largest U.S. retirement savings businesses through AIG Sun America and AIG VALIC, and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed in the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo. Products: 1. Children Plans 2. Adult Plans 3. Retirement Plans 4. Life plans Children Plans a. Assure educare b. Assure career builder c. Mahalife gold d. Assure 21years money saver Adult plans a. Tata aig invest assure b. Assure lifeline c. Life plus d. Assure 21years money saver e. Assure security and growth f. Tata aig health first g. Mahalife gold

Retirement plans a. Assure golden years b. Mahalife gold c. Nirvana d. Nirvana plus BIRLA SUN Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life Financial of Canada to enter the Indian insurance sector. The Aditya Birla Group, a multinational conglomerate has over 75 business units in India and overseas with operations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and Egypt to name a few. Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a leading international financial services organization. The local knowledge of the Aditya Birla Group, coupled with the expertise of Sun Life Financial Inc., offers a formidable for your future. The Aditya Birla Group has a turnover close to Rs. 33000 crores with a market capitalization of Rs. 30500 crores (as on 31st March 2005). It has over 72000 employees across all its units worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of the key organizations within the group are Hindalco, Grasim, Indian Rayon. Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, United States, United Kingdom, Hong Kong, Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Financial Inc. had assets under management of over US$298 billion, as on 31st Dec 2004. Sun Life Financial Inc. is a leading performer in the life insurance market in Canada. Birla Sun Life Insurance, in just over 4 years of its launch, has catapulted itself to, and cemented its position as a leading player in the private life insurance industry with an annualized new business premium of Rs.627.4 crores. The total premium income for the last financial year was Rs 915.5 crores. It has covered in excess of 6,50,000 lives with a

total Sum Assured of over Rs.22000 crores (as on 31st March 2005). The company has a presence in 40 cities through 55 branches and in over 200 towns & cities through its Corporate Agents and Bank partners. The company has a capital base of Rs. 370 crores currently. Aditya Birla Group The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. A US$ 7.59 billion conglomerate, with a market capitalization of US$ 7 billion, it is anchored by an extraordinary force of 72,000 employees belonging to over 20 different nationalities. Over 30 per cent of its revenues flow from its operations across the world. The Group's products and services offer distinctive customer solutions. Its 66 state-of-the-art manufacturing units and sectoral services span India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in which it operates. Such as viscose staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators and financial services. It is: The world no. 1 in viscose staple fiber The world's largest single location palm oil producer Asia's largest integrated aluminum producer A globally competitive, fast-growing copper producer The world's third largest producer of insulators Globally, the fourth largest producer of carbon black The world's eighth largest producer of cement, and the largest in a single geography India's premier branded garments player Among India's most energy efficient private sector fertilizer plants

India's second largest producer of viscose filament yarn The no. 2 private sector insurance company, and the fourth largest asset management company in India

The Group has also made successful forays into the IT and BPO sectors. Sun Life Financial Sun Life Financial is a leading international financial services organization. With a history that dates back to 1871, Sun Life Financial has evolved from a single mutual life insurance to one of the most highly rated insurance and wealth management institutions in the world. Sun Life Financial knows its value lies in more than assets and history. It also lies in the culture of integrity and the pursuit of excellence that have marked all of the organizations endeavors. Today, the Sun Life Financial Group of companies and partners are represented globally in Canada, the United States, the Philippines, Japan, Indonesia, India and Bermuda. Boundless Expansion In March of 2000, Sun Life Financial Services of Canada, Inc., Sun Life Financials parent company, listed its shares on stock markets in Toronto, New York, London and the Philippines. This new access to shareholder equity provides Sun Life Financial with even greater opportunities to grow around the world.

Products:
1. 2. life companion 3. flexi life line plan 4. flexi cash flow money back plan 5. flexi save plus endowment plan 6. Flexi securelife retirement plan 7. Classic life 8. Classic life premier 9. Birla sun life term plan 10. Single premium bond 11. Premium back term plan 12. Flexi long term savings 13. Flexi access money 14. Woman first plan 15. My Child Plan 16. Bima Kavach Yojana Prime life

1.5 S.W.O.T ANALYSIS OF RELIANCE SLIC

STRENGTHS Premiums are increasing and so are commissions.

The variety of products is increasing.

Transparency in working is followed.

Fund charges are less i.e. 0.8% Employee centric organization.

Stronger financial base.

WEAKNESS Strong competitors like LIC, ICICI Pru, and Birla Sun Life etc. Premium is priced high as compared top the market leader. Infrastructure cost is high. Less expenditure on promotion. Products not customized for lower segment.

OPPORTUNITIES The ability to cross sell financial services barely being tapped. Technology is improving to the point that paperless transactions are available. The client's increasing need for an "insurance consultant" can open new ways to service the client and generate income. THREATS Government regulations on issues like health care, mold and terrorism can quickly change the direction of insurance.

The increasing expenses and lower profit margins. Intense competition from LIC.

CHAPTER 2 OBJECTIVE & METHODOLOGY

CHAPTER 2 OBJECTIVE & METHODOLOGY

2.1

Significance

1. Firstly, information about the insurance industry was collected from various sources like the Internet, the managers in the branch, newspapers, etc. This information was helpful in having a good understanding about the various aspects of the insurance industry including its scope for growth in India (where most of the population is still uninsured). 2. During the course of the 8 weeks training, knowledge about the company was also gained and it was understood chronically how the company works and provides insurance services to the people through managing their employees. 3. The process of recruiting a financial consultant was stressed upon during this training cum learning period. The criteria and requirements for becoming a Financial Consultant were understood. 4. It was also learned how the company supports an individual to follow the norms given by IRDA to be a registered Agent of the company. The provision of product training to the prospect agent by the company is mandatory as per the IRDA norms. 5. A detailed observation was done during the entire period starting from the receipt of application from a prospect financial consultant till one logins in the Companys database. 6. A questionnaire was then developed that was to be filled by financial consultants. It was made easy and simple to understand deliberately. 15 of the financial consultants agreed to fill up that questionnaire.

7. The data in the questionnaires was then interpreted in detail and an analysis was done to draw out conclusions out of it. 8. Finally, recommendations and suggestions were made out of the conclusion so interpreted.

Objective
Primary objectives: To get aware of the satisfaction level of the financial consultants from the Company. To study the role of a financial consultant in the insurance industry.

Secondary objectives:

To have a clear picture of the insurance industry in India. To distinctively locate the Company in the industry. To study the recruitment procedure of a financial consultant in RELIANCEStandard Life Insurance Company.

2.4

Scope of The Study

The study helped in assessing the customers attitude towards RELIANCE

SLIC. The findings can be generalized from regional level. The product offerings of different companies in insurance industry to create awareness and to increase market share were studied. The awareness of endowment policies in particular was also studied. This provided scope for understanding the consumer preferences and retaining present customers while adding new ones. The study helped to understand the customer expectations, the potential customers requirement and customers problems and has helped to keep customers highly satisfied.

2.5

Methodology

For the purpose of the project report, a summer training program was initiated in the RELIANCE-SLIC. During the 8 weeks training program, a survey was conducted on the Financial Consultants as well as guidance received from the Sales Development Managers (SDMs).

Sample size:
The research was conducted on 15 financial consultants in the Ashok Vihar branch of RELIANCE-SLIC.

Primary data:
A well-structured questionnaire was developed for the research that was to be filled by the Financial Consultants. The questions were deliberately made easy and simple which covered all the relevant information.

Limitations:
1. 2. 3. Non-availability of the Financial Consultants as the work requires only a Non-cooperation on the part of the Financial Consultants as it involves False information given by the respondent which maybe due to pressure

part-time devotion from them. dealing with the human element, which is always uncertain. from the peer group or from their seniors.

CHAPTER 3 CONCEPTUAL DISCUSSION

CHAPTER 3 CONCEPTUAL DISCUSSION

REQUIREMENTS FOR AN INDIVIDUAL TO BE A FINANCIAL CONSULTANT: The individual must have attained the age of 18 years. He/she must possess a degree of +2 He/she is required to submit his/her age proof as well as a copy of his/her highest education. He/she must also give his/her 8 passport size photographs. After signing all the documents, the individual is required to undergo training for 100 hours within 3 months. After that, the individual has to appear for an exam conducted by IRDA. On clearing this exam, the individual is then given a license according to which he/she can carry on functioning as a life insurance agent.

Role of a Financial Consultant Financial consultants have a major role to play in the insurance industry as well as for the company. In India, most of the population is still uninsured. And those who are insured are mostly underinsured. This means that that there is a vast chance to expand life insurance business in India. RELIANCE-SLIC as well as other private life insurance players needs intermediaries to reach the population of insurable people. Life insurance agents i.e. financial consultants serve as these intermediaries to help the company to sell their life insurance policies to the people. Thus, a financial consultant reduces the gap between a customer and the company by analyzing the customers financial needs and selling him the most suitable policy. Individuals join RELIANCE Standard Life Insurance as a Financial Consultant and help analyze their customers financial needs, provide customized financial solutions to each one and conduct reviews on a regular basis to keep their customers on track.

Q1. What is insurance? Insurance is the business of providing protection against financial aspects of risk, such as those to property, life, health and legal liability. It is one method of the overall concept known as risk management. In insurance, the insured makes payments called "premiums" to an insurer, and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is usually drawn up in a formal legal contract, also known as a policy. The

contract will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums. In one classic example of insurance, a ship-owner insures a ship and receives payment if the ship is damaged or destroyed. This example is one of the earliest uses and developments of concepts like insurance. Interestingly, ships are now more often insured through risk pooling and spreading organizations such as Lloyd's of London because the loss of a large ship going down is too great for one insurer to accept. In the case of annuities, such as a pension, similar concepts apply, but in some sense in the reverse. When applied to annuities, the terms risk and loss are somewhat different from traditional insurance as they concern the chances of living beyond life expectancy and the need for income during the period between amortization and death. Insurance attempts to quantify risk by pooling together a large number of risks. This makes use of the law of large numbers. As applied to insurance, this means that the greater the number of similar risks, the greater accuracy with which insurers can estimate the overall risk. For example, many individual people purchase health insurance policies and they each pay a small monthly or yearly premium to an insurance company. When a policyholder gets ill, the insurance company provides money to cover medical treatment. For some individuals the insurance benefits may total far more money than they have ever paid into the insurance policy. Others may never make a claim. When averaged out over all of the people buying policies, value of the claims even out. Insurance companies set their premiums based on their calculated payouts. They plan to take in more money (in premiums and in profit from the float, see below) than they pay out in the end to cover expenses. For-profit insurance companies set their rates to make a profit rather than to break even. Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful, they may earn large profits, even if the insurance company pays out in claims every penny received as

premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their cost of float. Insurance can also be thought of as a wager or bet that executes over the policy period. The insurance company bets that you or your property will not suffer a loss while you put money on the opposite outcome. The difference in the fees paid to the insurance company vs the amount they can be held liable for if an accident happens is roughly analogous to the odds one might expect when betting on a racehorse, i.e. 10:1. For this reason, a number of religious groups including the Amish avoid insurance and instead depend on support provided by their communities when disasters strike. In closing, supportive communities where others will actually step in to rebuild lost property, this arrangement can work. Most societies could not effectively support this type of system. Q2. Why should you take insurance? Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children and loved ones need not be compromised. Insurance planning equips you to smooth out the uncertainties and adversities that life might send your way, so that the best that life has to offer, secure in the knowledge that your beloved ones are well provided for.

Q3. Who provides insurance? Insurance companies may be classified as

Life insurance companies, who sell life insurance, annuities and pensions products. Non-life or general insurance companies, who sell other types of insurance.

In most countries, life and non-life insurers are subject to different regulations, tax and accounting rules. The main reason for the distinction between the two types of company is that life business is very long term in nature - coverage for life assurance or a pension can cover risks over many decades. By contrast, non-life insurance cover usually covers shorter periods, such as one year.

Companies may sell both life and non life insurance, in which case they are sometimes known as composite insurance companies. Insurance companies are also often classified as either mutual or stock companies. This is more of a traditional distinction as true mutual companies are becoming rare. Mutual companies are owned by the policyholders, while stockholders, (who may or may not own policies) own stock insurance companies. Reinsurance companies sell insurance cover to other insurance companies. This helps insurance companies to spread their risks, and protects them from very large losses. The reinsurance market is dominated by a few very large companies, with huge reserves. There are also companies which are known as Insurance Brokers. Like a mortgage broker, these companies are paid a fee by the customer to shop around for the best insurance policy amongst many companies.

Q4. What are the alternatives to insurance? These days, when everyone seems to be suing everyone else, insurance premiums continue to soar. Yet some insurance companies, fearing that the possibility of such lawsuits is too great, actually refuse to make certain types of insurance available to businesses. So in most cases you have insurance you can barely afford, and in some cases you can't even get insurance. What's a small business owner to do? One solution is to explore alternatives to traditional insurance. In this discussion we'll examine a couple of insurance alternatives. As we do this, please remember that some insurance is required as a matter of law (auto liability for example) and that some types may be so important given your line of work (general liability insurance, malpractice insurance) that you don't belong in business if you can't afford it or can't get it at all. With self insurance you simply set aside money some businesses choose to set aside what they would be paying in premiums if they had purchased insurance and use that money when an unfortunate event occurs. For a small business, the best place to think

about self insuring is with property insurance rather than liability insurance because the risks are more manageable. For example, suppose you are paying for auto theft, fire, and collision (that is, the kind of insurance that replaces your car if it's in an accident, not someone else's) protection on your vehicle. If you dropped this coverage and put your savings in premiums into a bank, eventually you would save enough money to replace a vehicle from these funds. Of course, one of the dangers with this approach is that you could have an unfortunate incident before you have enough money in your fund. You also cannot use this approach if you have financed the property in question and are required to maintain insurance by your lender. But even if you can't totally self insure, you may be able to self insure a little by purchasing policies with higher deductibles. Suppose, for example that you maintain fire, theft, and collision protection on a vehicle, but agree to be responsible for the first $1,000 of any damage to the vehicle rather than the first $250 as is standard in many policies. Your additional risk is not that great only $750 and you may realize substantial savings on your auto premiums. Postal Life Insurance Postal Life Insurance is 117 years young. It was started in 1884 as a welfare measure for the employees of Posts & Telegraphs Department under Government of India dispatch No. 299 dated 18-10-1882 to the Secretary of State. Due to popularity of its schemes, various departments of Central and State Governments were extended its benefits. Now Postal Life Insurance is open for employees of all Central and State Government Departments, Nationalized Banks, Public Sector Undertakings, Financial Institutions, Local Bodies like Municipalities and Zila Parisads, Educational Institutions aided by the Government etc/ Q5. What are the benefits of insurance? The benefits are: 1) Superior to any other savings plan. 2) Encourages & forces thrift.

3) Easy settlement & protection against creditors. 4) Administering the legacy of beneficiaries. 5) Ready marketability and suitability for quick borrowing. 6) Disability benefits. 7) Accidental death benefits.
8)

Tax Relief.

CHAPTER - 4 DATA ANALYSIS & INTERPRETATION

CHAPTER - 4 DATA ANALYSIS & INTERPRETATION

The financial consultants were not required to disclose their names, but they were asked about their term of service in RELIANCE-SLIC.

TERM OF SERVICE

NO. OF FCs (in percentage)

More than a year More than 6 months but less than a year Less than 6 months TABLE I

53.33 20 26.67

This shows that most of the financial consultants are more than a year old in the Company. Very recently more financial consultants have been added to the company. Since the branch is not more than 2 years old, the options in this question did not have much scope. This also shows that most of the financial consultants are not willing to change the company at least before a year.

term of service

60 50 40 30 20 10 0

53.33

26.67 20

>1 year

>6 m ths but <1 year

<6 mths

percentage

The above diagram shows the percentage of financial consultants working since when in Ashok Vihar branch. It was tried to know how much target were the financial consultants given for this quarter (in terms of policy premiums). It was found that the target for all the financial consultants was ranging from 10,000 to 3 Lacs. The target for an individual financial consultant depended upon his past performance and future expectations of him.

26.67% of the financial consultants were given a target of Rs. 1 Lac 20% of the financial consultants were given a target of Rs. 2 Lacs. 13.33% of the financial consultants were given a target of Rs. 1.5 Lacs. 13.33% of the financial consultants were given a target of Rs. 3 Lacs. 13.33% of the financial consultants were given a target of Rs. 0.5 Lacs. 6.66% of the financial consultants were given a target of Rs. 75,000. 6.66% of the financial consultants were given a target of Rs. 10,000

targets alloted

30 26.67 25 20 20 15 13.33 13.33 13.33 10 6.66 6.67 5 0

10,000 50,000 75,000 1 lac 1.5 lac 2 lacs 3lacs target

percentage

The above diagram shows the quarterly targets and percentage of financial consultants given those targets. The financial consultants were asked about the type of incentives they normally receive from the company. Following were the findings: Type of incentive Monetary Non-monetary Percentage 66.67% 33.33%

This shows that 66.67% financial consultants received incentives monetary in nature. And 33.33% financial consultants received incentives non-monetary in nature. It was also found out that some of the financial consultants also received both types of incentives i.e. monetary as well as non-monetary. The company declares bonuses to the financial consultants who perform up to a specified level. They also receive various gifts such as laptops, cameras, etc if they show outstanding performance

type of incentives
70 60 50 40 33.33 30 20 10 0 monetary non-monetary percentage 66.67

The above diagram shows the percentage of financial consultants who normally receive monetary or non-monetary incentives from the company. After knowing the type of incentives they receive, it was asked from the financial consultants that were they satisfied from these incentives. Following were the findings: 40% of them said that they were very satisfied from the incentives they receive from the company. 26.67% of them said that they were somewhat satisfied from the incentives they receive from the company. 26.67% of them said that they were not much satisfied from the incentives they receive from the company. And only 6.67% of them said that they were highly dissatisfied from the incentives they receive from the company.

satisfaction level
40 35 30 25 20 15 10 5 0 40

26.67

26.67

6.67 very satisfied somewhat satisfied not much satisfied highly dissatisfied

percentage

The above diagram shows what percentage of the financial consultants show various satisfaction levels from the incentives they receive from the company. The company gives the financial consultants product training before as well as after becoming an authorized agent. It was asked from the financial consultants whether they found the training given to them helpful in their work.

Following were the results:

Reactions of the financial consultants Yes No Cant say

Percentage

60 20 20

TABLE III

60% said that they found training given to them helpful in their work. 20% said training given to them was not actually helpful to them in their work. While 20% said they could not make out whether the training was actually helpful to them or not.

satisfaction from training

60 50 40 30 20 10 0 yes no percentage The above diagram shows what percentage of the financial consultants found training given to them helpful, not helpful and what percentage of people could not make out whether it is helpful or not. It was enquired from the financial consultants whether they work in the company for the full-time or part-time. Following were the results: Nature of work Percentage cant say 20 20 60

Full-time Part-time TABLE IV

20 80

Only 20% of the financial consultants preferred to work full time for this job. While, 80% of them work on the part-time basis for time basis for this job.

time devotion
80 60 40 20 0 20 80

part time full time percentage

The above diagram shows how many financial consultants work for the full time in the company and how many for a part of the time. The financial consultants were then asked to rate the support received by them from their Sales Development Manager (SDM). Following are the findings:

Reaction of the financial Percentage consultant Excellent Good Bad Very bad 53.33 26.67 13.33 6.67

TABLE V It is seen that most of the financial consultants i.e. 53.33% were satisfied with the support they receive from their SDM.

While, only 6.67% rated the support by their SDM very bad.

SDM support ranking

60 50 40 30 20 10 0 excellent good bad

53.33

26.67 13.33 6.67

very bad

percentage

The above diagram shows the ratings given by the financial consultants for the support they receive from their SDMs. The financial consultants were then asked whether they wish to work with RELIANCESLIC in future also. Following were the findings: Response of the financial consultants Yes No Cant say Percentage 66.67 6.66 26.67

TABLE VI

It is clear that most of the financial consultants are willing to work with RELIANCESLIC in future also. This is also evident from the previous questions where high satisfaction levels are seen in financial consultants towards the company It is also worth noticing that only a small number of people i.e. 6.66% are NOT willing to work with RELIANCE-SLIC in future. This means that, overall satisfaction level of the financial consultants from the company is quite high.

future with HDFC-SLIC

70 60 50 40 30 20 10 0 yes 6.66 no cant say 26.67 66.67

percentage

The above diagram shows what percentage of the financial consultants is willing to work with the company in future also. It also shows how many people are not satisfied with the present scenario and would not like to work with the company in future. Lastly, the financial consultants were asked to give their suggestions towards any aspect of their working in the company. The suggestions so received are worth giving a thought. The most common suggestion that was received was that the managers should try and create a friendly atmosphere between various financial consultants. The present atmosphere mainly consists of competition and racing among the employees (managers, as well as the financial consultants).

The financial consultants required more phone lines as their nature of work is typically customer oriented. The number of phone lines at present is too few since more and more people are joining hands with the company to work as a financial consultant. Also, some of the financial consultants wanted the company to take personality development classes along with product training sessions. A selling skill class was also desired by a few of the financial consultants.

CHAPTER - 5 CONCLUSIONS & SUGGESTIONS

CHAPTER - 5 CONCLUSION & SUGGESTIONS

CONCLUSION
A change in the job by him/her does not mean work dissatisfaction but it may be because of higher job opportunities in other areas or maybe in the same industry. More and more targets are given to the financial consultants each quarter to bring in them a feeling of satisfaction through goal achievement. Achievement of higher targets means higher rewards to the financial consultant. Agents (financial consultants) are generally motivated by giving them monetary incentives. Although some of them are also given non-monetary incentives for an outstanding performance such as laptops, watches, cameras, etc. 40% of the financial consultants are satisfied with the kind of incentives they receive. While only 6.67% of them are not at all satisfied by these incentives. Out of 15 financial consultants, 8 find the training given to them very helpful

in their work. This means overall the training provided to them is quite good. However, 3 of them could not categorize the training to be helpful to them or not. But, this doesnt mean that they were dissatisfied from the training they receive. A major 80% of the financial consultants work on the part-time basis with the company. This suggests that these financial consultants most probably work elsewhere for the entire time. This clearly indicates that the company is able to attract more and more people for the job through its generous commission structure.

53.33% of the financial consultants rate the support given to them by their SDM as excellent. This indicates one of the reasons why the company is able to attract more and more number of people for this job. Ten out of fifteen financial consultants are willing to work with RELIANCE-SLIC in future also. This can be used to presume that the company is going to face low employee attrition rate in its future.

SUGGESTIONS

The targets given to the financial consultants should be more realistic and achievable. They should not be burdensome to him/her as it would be highly denominating for him/her. The incentives given to financial consultants should be such which motivate them to achieve more targets and at a faster pace. The frequency of giving away nonmonetary incentives should be more so as to keep the employees motivated. Requirements of the financial consultants should be given preference. For instance, financial consultants require more phone lines to be installed. So, the company should add more lines in the working area. Since, most of the financial consultants work part-time in the company, more and more help and support should be given to them by their SDM so that their lesser devotion draws maximum results.

LIMITATIONS OF THE STUDY

In any work, whether big or small, there are some limitations and this project report is not an exception. The major limitations, which one should keep in mind while using this report, are pointed out below: Lack of time could not allow a detailed study and thus the vast information could not be included in this project report. Sample size is limited People are reluctant and busy enough to provide the information The study is being conducted under the assumption that all information given by respondents is correct. Information is limited to the facts given by the interviewee. Limited access to secondary data was another problem in finding accurate information.

ANNEXURES

QUESTIONNAIRE
1. Name: ________
2. 3. 4. 5.

AGE: Below 25 25-30 Gender: Male

30-35

35-40 Above 40

Female Married Divorced/widow Student

Martial Status: Unmarried Occupation: Service

Self employed Business 10001-150001 20001-25000

6.

Monthly income: Below 10000 15001-20000 Above 25000

7 Have you ever been financial consultant of any company? YES 8 NO

Since how long have you been working with RELIANCE-SLIC as a Financial Consultant? For more than a year. More than 6 months but less than a year. Less than 6 months

9. What target have you been given for this quarter? (In terms of policy premiums) _______________________________________________ 10. What type of incentives do you normally get from the company? Monetary Non-monetary

11. How satisfied are you from these incentives? Very satisfied Somewhat satisfied Not much satisfied Not at all satisfied 1. Do you find training given to you helpful in your work? Yes No Cant Say 2. Do you work: Full-time Part-time 3. How do you rate the support given to you by your SDM? Excellent Very good Bad Very bad
4.

Would you like to continue to work with RELIANCE in future also? Yes No Cant Say

5. What changes would you like to bring in your working atmosphere?

BIBILIOGRAPHY

BIBILIOGRAPHY
Books:
1. Kotler Philip, Marketing Management, Prentice Hall of India Pvt. Ltd 2. Valatie A. Zeithaml, Mary Jo Bitner, Service Marketing, TMH 5. Gupta S. P. and Gupta, M. P., Business Statistics, Sultan Chand and Sons, New Delhi, 1997.

Websites:
1. 2. 3. 4. 5. 6. 7.

http://www.licindia.com/individual_plans.html http://www.licindia.com/history.htm http://www.RELIANCEinsurance.com/aboutus/aboutus.asp http://www.RELIANCEinsurance.com/products/products.asp http://www.iciciprulife.com/index.jsp http://www.tata-aig-life.com/AboutTataAIG/AboutTataAIG.htm http://www.birlasunlife.com/insurancenet/index.htm