Training and development at IDBI Federal Life insurance co. ltd.

Submitted to,
Ms. Piyushi verma
Manager director.
Submitted by,
N. Kruthika Reddy
BBA - II
St. Josephs Degree
and PG college.

PREFACE:

Training is the acquisition of knowledge, skills, and competencies as a result of

the teaching of vocational or practical skills and knowledge that relate to specific
useful competencies. Training has specific goals of improving ones capability,
capacity, productivity and performance. It forms the core of apprenticeships and
provides the backbone of the content at institutes of technology. In addition to the
basic training required for a trade, occupation or profession, observers of the

labour-market recognize as of 2008 the need to continue training beyond initial

qualifications: to maintain, upgrade and update skills throughout working life.
Training methods are of two types On the job training and Off the job training.
The on-the-job training method takes place in a normal working situation, using
actual tools, equipment, documents or material that trainees will use when fully
trained. The off-the-job training method takes place away from normal work
situations implying that the employee does not count as a directly productive
worker while such training takes place.

DECLARATION:
This is to certify that the projects titled: training and development regarding IDBI
FEDERAL LIFE INSURANCE COMPANY Products are a bonafide work
completed by N. KRUTHIKA REDDY, Enrollment Number 124060656, in partial
fulfilment of the requirements of the BBA program and submitted to St. Josephs
Degree and PG college.
I declare that this project is a result of my
own efforts and has not been copied from any source. References from which
information has been taken have been given in the references section. This work
has not been submitted earlier at any other university or institute for the award of
the degree.
N. KRUTHIKA REDDY
12406056
St. Josephs Degree and PG college.

ACKNOWLEDGEMENT:

I wish to express our sincere thanks to Ms. Piyushi Verma for providing us an
opportunity to work in IDBI Federal Life Insurance co. Ltd. I would also like to
express my gratitude to Ms. Piyushi Verma (My company guide) for providing
there valuable feedback and intense support relentlessly throughtout the project.
I sincerely express my gratitude to Anitha (My faculty
guide), for giving her valuable guidance, healthy support and suggestions to make
the project a successful one. I am really thankful to my parents and friends for
helping me to study and giving feedback in all possible ways to make me feel
comfortable during my project. There have been numerous influences, big and
small that have helped me to work on my project successfully. Regardless of the
source, I thank all those who may have contributed to this project.

Framework of the project is as follows:

I. Internship certificate
II. Acknowledgement
III. Preface
IV. Declaration
1. Executive summary
2. Introduction
2.1
Background of the topic
2.2
Objectives of the study
2.3
Need of the study
2.4
Methodology both primary and secondary
2.5
Scope and limitations
3. Economy and industry analysis
4. Company analysis
5. Project specific analysis
6. Conclusions and recommendations
7. Outcome or contribution
8. Learnings from SIP

9. References
10. Appendix

1. EXECUTIVE SUMMARY:
Training is the acquisition of knowledge, skills, and competencies as a result of
the teaching of vocational or practical skills and knowledge that relate to specific
useful competencies. Training has specific goals of improving ones capability,
capacity, productivity and performance. It forms the core of apprenticeships and
provides the backbone of the content at institutes of technology. In addition to the
basic training required for a trade, occupation or profession, observers of the
labour-market recognize as of 2008 the need to continue training beyond initial
qualifications: to maintain, upgrade and update skills throughout working life.
Some commentators use a similar term for workplace learning to
improve performance: training and development. One can generally categorize
such training as on-the-job training or off-the-job training. The on-the-job training
method takes place in a normal working situation, using actual tools, equipment,
documents or material that trainees will use when fully trained. The off-the-job
training method takes place away from normal work situations implying that the
employee does not count as a directly productive worker while such training takes
place.

2. INTRODUCTION:
2.1 Description of the project:
Training and development is a function of Human Resource Management(HRM)
concerned with organizational activity aimed at bettering the performance of individuals

and groups in organizational settings. It has been known by several names, including
Human Resource Developmnent, and learning and development.

Training and development encompasses three activities: Training, Education and

Development.
Training: This activity is both focused upon, and evaluated against, the job that
an individual currently holds.
Education: This activity focuses upon the jobs that an individual may potentially
hold in the future, and is evaluated against those jobs.
Development: this activity focuses upon the activities that the organization
employing the individual is part of, may partake in the future, and is almost impossible to
evaluate.

2.2 Need of the study:

Training presents a prime opportunity to expand the knowledge base of all employees, but
many employers find the development opportunities expensive. Employees also miss out
on work time while attending training sessions, which may delay the completion of
projects. Despite the potential drawbacks, training and development provides both the
company as a whole and the individual employees with benefits that make the cost and
time a worthwhile investment.
a.
b.
c.
d.

Addressing weakness
Improved employee performance
Consistency
Employee satisfaction

2.3 Objectives of the project:

1.
2.
3.
4.
5.
6.

To increase productivity.
To increase quality.
To help a company fulfil its future personnel needs.
To improve health and safety.
To improve organizational climate.
Personal growth.

2.4 Scope of the study:

The reach out of training programmes, is far and wide. Depending upon the nature,
duration and purpose of the training programmes, the trainees may acquire attributes, like
skills, knowledge, analytical acumen, concepts, attributes, and ethical values.
Knowledge: The basic purpose of any training programme is to provide the participants
with the requisite knowledge to achieve the goals of the job. Knowledge is generally
developed through the processes of perception, learning and reasoning.

2.5 Limitations of the project:

1. Training is a costly affair and expensive process
2. Training may result dislocation of work and loss of output because regular office
work is likely to be interrupted or delayed because of the time spent in the training
3. Sometimes, it is difficult to obtain good training instructors and leaders.
4. Self reliance and capacity for new ideas might be stiffed.

3. ECONOMIC INDUSTRY ANALYSIS

3.1. Introduction to Insurance Industry:

Insurance is a form of risk management that shields insured from the risk of any uncertain
of unfortunate events. In simple terms insurance can be defined as transfer of risk from
one entity to another in exchange of the payment. In a laymans term, insurance is a guard
against monetary loss arising on the happening of an unforeseen event. In developing
countries like India insurance sector still holds lot of potential which need to be tapped.

3.2. Types of Insurance:

Insurance can be classified into three categories:

 Life Insurance:
Life Insurance is a concord between the insurer and the policyholder, where insurer
promises to pay beneficiary designated sum of money upon death of the insured
person. Life Insurance covers number of contingencies like Death, Disability,
Disease.
General Insurance:
General Insurance is a non-life insurance policy including automobile and
homeowner policy. General insurance specifically consist of non- life insurance. It
includes property insurance, liability insurance and other forms of insurance. Fire
and Marine insurance are called property insurance.
Social Insurance:
Social insurance is another type of insurance for weaker section of the society. It
provides protection to weaker section of the society who are unable to pay
premium. Industrial Insurance, sickness insurance, pension plan, disability benefits,
unemployment benefits are some the type of social insurance.

3.3.

Insurance Sector in India:

Indian insurance sector has gone through different phases of competition, from being an
open competitive market to a nationalized market and then again getting back to
liberalized market. Indian insurance sector has witnessed complete dynamism in past few
centuries.
Insurance sector in India has a deep- rooted history. Its mention has been found in
writings of Manu (Manusmriti), Yagnavalkya (dharmashastra) and Kautilya
(Arthshastra). Ancient Indian history has preserved traces of insurance in the form of
marine trade loans and carrier contracts.
Insurance industry in India is governed by Insurance Act of 1938, Life Insurance
Corporation Act of 1956 and General Insurance business Act, 1972, Insurance Regulatory
and Development Authority (IRDA) Act of 1999 and other related acts. Insurance
industry in India is considered as an industry with big potential market. One of the reason
that India is seen as huge potential market is because of its huge population and untapped
market area of this population. In terms of population India has an immense potential
expanding their life insurance cover. Majority of people in India are unaware of the
functions and benefits of Insurance because of which insurance sector has a bright future
in India. But it is relevant to consider factors like different varieties of social structure,
urban and rural composition other than very important factors like age, sex, income level,
literacy level. Making assessment of Life Insurance potential of India is very difficult task
due to wide variance in every aspect of Indian circumstances and without a refined
analysis any estimate would be meaningless.

3.4.
Indian Insurance Industry at present:
Life Insurance Corporation (LIC) had the monopoly over the market till the late 90s
when the insurance sector in India was opened for private players. Before that there were
only two state insurer, one was LIC (Life Insurance Corporation of India) and GIC
(General Insurance corporation of India).
Indian insurance sector at present has undergone many structural changes in 2000. The
Government of India has liberalized the insurance sector in 2000 with IRDA (Insurance
Regulatory and development authority) lifting all entry restriction of foreign players with
a specific limit on direct foreign ownership. Under the current guideline 26% of equity
cap is there for foreign players in an insurance company and proposal is being given to
increase this limit to 49%. Post liberalization insurance industry in India have come a
long way and today it stands as one of the most competitive, challenging and exploring
industry in India. Increased use of new distribution channels are in limelight today due to
entry of private players. In the long run the use of these distribution channels and modern
IT tools has increased scope of the insurance industry. Also the changing economics
patterns, changing political scenario, modern IT tools will eventually help in reshaping
future of Indian financial market and Life Insurance business in the country.

3.5.

Major Players:

Various players in Indian Life insurance are given below:

1. Life Insurance Corporation of India
2. IDBI federal Life Insurance Co. Ltd
3. Bajaj Allianz Life Insurance Co. Ltd
4. Birla Sun Life Insurance Co. Ltd
5. HDFC Standard Life Insurance Co. Ltd
6. ICICI Prudential Life Insurance Co. Ltd
7. ING Vysya Life Insurance Co. Ltd
8. Max New York Life Insurance Co. Ltd
9. Met Life India Insurance Co. Ltd
10. Kotak Mahindra old Mutual Life Insurance Ltd
11. SBI Life Insurance Co. Ltd
12. Tata AIG Life Insurance Co. Ltd
13. Reliance Life Insurance Co. Ltd
14. Aviva Life Insurance Co. India Pvt. Ltd
15. Sahara India Life Insurance Co. Ltd
16. Shriram Life Insurance Co. Ltd
17. Bharti AXA Life Insurance Co. Ltd
18. Futute Generali Life Insurance Co. Ltd
19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd
20. AEGON Religare Life Insurance Co. Ltd
21. DLF Pramerica Life Insurance Co. Ltd
22. Star Union Dai-ichi Life Insurance Co. Ltd

Latest market share of all insurance companies as of march 2011:

3.6.

Regulatory Issues:

Insurance Regulatory and Development Authority (IRDA) is a national agency of

government of India. It was formed by an act of Indian Parliament known as IRDA Act
1999 which was amended in 2002 to incorporate some upcoming requirement. It is
responsible for protecting the interest of policy holders, to regulate and promote orderly
growth of Insurance Industry in India. To achieve this objective IRDA has taken
following steps:
IRDA has notified protection of policyholders Interest Regulation 2001 to provide
for: policy proposal document is in easily understandable language; claims
procedure in both life and non-life; setting up grievance redress machinery; speedy
settlement of claims and policy holders servicing. The regulation also provides for
payment of interest by insurer for delay in settlement of claims.
Solvency margins are to be maintained by the insurer so that they can be in a
position to meet their obligation towards the policyholder with respect to payment
of claims.
The Insurance Company has to clearly disclose the benefits, terms and condition
under the policy.
The advertisement issued by the insurer should not mislead the insuring public.
Proper grievance redress machinery should be set up in the head office and all the
other offices by the insurer.
If any complaints are received by the policyholder with respect to the services
provided by the insurer under the insurance contact, then the authority takes up
with the insurer.
Insurer has to maintain separate account related to the fund of Policyholder. The
funds of the policyholder should be retained within the country.
According to the new regime, Insurance companies will have to exposure to rural
and social sector.

3.7. Critical Success factors:

Post Liberalization Insurance industry in India has become very competitive. With
private players entering into the India market making the market lot more competitive.
Insurance industry in India has become highly competitive with different companies and
individual agents competing against each other to gain higher market share. In order to
gain higher market share companies have to differentiate themselves from others.
Companies can differentiate themselves in the market by using a number of critical
success factors:
Product Quality:
One the most important factor that differentiates companies is by the quality of
product it offers. Quality of product instills a confidence in the customer that the
product offered by the company is better. Better the quality of product, more
successful is the company.

Developing relationships with the customer:

Insurance Industry is a highly competitive industry. In order to gain the market
share first priority is to be given to the customer. Range of product and services
should be designed to give the customer what he desires.
Market Segmentation:
Greater market segmentation should be done in which target audience should be
divided into homogenous groups and products and services should be targeted
towards such market. This would tie company to their client by customized
combination of coverage, easy payment plan, risk management advice and quick
claim handling.
Designing new strategies:
Insurance Industry cannot be satisfied with consolidation of their existing market,
but have to achieve future growth and penetration. Companies must focus on new
distribution channels, strengthening their existing point of services, direct contact
with their ultimate customer, refresh their marketing setup, new comers should
focus on tapping the market which is left unexploited by public sector companies.

 Shift towards Rural market:

Rural market is India is still uncovered by this sector. Insurance penetration can be
achieved by tapping the untapped rural market of India.
Motivating sales force:
Sales force is one the major strength that the company has that could differentiate
them from their competitors. A good sales force can do wonders to the future of
the company, because of which a proper motivation of sales force is very
important for the company. Life Insurance Company should constantly involve in
motivating their sales force so that they can meet their target on time.
Use of technology:
Technology plays a very important role in the success of the company. Internet
based Life insurance will help companies to reduce time and transaction cost and
also improves quality of services to its customer.

3.8. Domestic Economic Conditions:

Domestic economic conditions play a major role in growth or downfall of an Insurance
company, No matter how financially stable an insurer is; none is immune to the slow
economic growth. In an Indian economy double digit inflation is one the uncomfortable
factor and RBI which is the central bank of India has a huge task of controlling the
inflation without hampering the economic growth. Trade off between Interest rates and
Inflation has been the core the business of the RBI and the past one year has been very
difficult for the RBI. In an attempt to manage inflation, RBI has been constantly raising
repo rate and reverse-repo rates every quarter but it has not succeeded in moderating
inflation. This simply implies that inflation is more of a supply side issue than a
monetary implication. The implications of this relatively high interest rates and high
inflation regime are unlikely to be positive for insurance industry. It would be difficult
for an Insurance industry to manage return expectations as they are likely to be high.
While competing with a fixed income product higher assured returns are required for
high.
Interest rates in order to increase penetration. There may be some reductions in actual
growth rates, but Indians long term fundamentals remain intact as life Insurance being
an industry with long time horizon, it would be able to tide over economic cycle.
Inflation on the other hand means lower disposal incomes in the hand of the consumer
leading to lower household savings which currently stands at 34.7%, though significantly
lower than china which is 50%.
3.9. Global Economic Environment:

According to the Swiss Res newly appointed Economist, Kurl Karl low interest rates
and euro debt crisis will prove to be a problem for insurance industry. According to Kurt
karl momentum of growth has been slowed down due to this two factors, but the only
bright spot according to him is the ongoing growth in the emerging market. However
Kurl is lot more optimistic looking forward to 2013 forecasting a pick-up in investment
yield and premium in a modest improvement in economic conditions.
Political Development:
Political developments are the more serious threat in Europe and US. In
Europe this can lead to serious sovereign defaults and also exit from the euro
monetary union.
Emerging markets has been negatively impacted by faltering growth in the
developed economy. Also tighter monetary policies on the part of several
emerging economies also slowed down growth.
Both global in-force and new business life insurance fell in 2011, but it again
recovered. According to the economist in order to return to the pre-crisis
profitability short- term factors like low investment returns, high hedging cost
and more onerous capital requirement. Life Insurance industrys capitalization
has improved markedly and it is in the better shape to cope up with the future
challenges.
Because of some Regulatory changes in China and India, coming two years
will see life insurance business in emerging market returning to its long term
trend of around 8%.
3.10. Demand Drivers:
Insurance industry in India has become lot more competitive in recent years. With
private players entering into the market, competition level has significantly increased
with more private players trying to gain more market share. Some of the demand drivers
that give change

to the smaller companies to compete against giants like Life Insurance Corporation of
India Ltd (LIC) which has 70% market share are:
Rural market:
According to the Mckinsey report, titled India Insurance 2012: Fortune Favors
the Bold, finds that the sector is still in a dissident with different players in
different stage of development and market presence. According to the
Mckinseys report the rural penetration is likely to increase from about 25% at
present to around 35-40% in 2012. With 65% of the Life insurance coming
from rich urban class, smaller companies can look for rural and low income
group as potential demand driver.

 Product Mix;
A better product mix would also drive growth of insurance companies, with
companies making a move to lower the share of single premium products.
Life insurance product can also fill the gap that is created by growing demand
for investment products and long-term savings.

4. COMPANY ANALYSIS

4.1 Introduction:
IDBI federal is a joint venture of IDBI Bank, Indias premier development and
commercial bank, Federal Bank, one of Indias leading private sector banks and Ageas, a
multinational insurance giant based out of Europe. In this venture IDBI owns 48% equity
while federal bank and Ageas own 26% equity each. IDBI federal endeavors to deliver
the product that provides value and convenience to the customer. Through a continuous
process of innovation in product and service delivery we intend to deliver world-class
wealth management, protection and retirement solution to the Indian customer. IDBI
federal started in March 2008 and within few months of inception it became one of the
fastest growing new insurance companies to garner Rs 100 Cr. in premium. The company
offers its services through a vast nationwide network across the branches of IDBI bank
and Federal Bank in addition to sizeable network of advisors and partners. As on 31st
March 2012 Company has issued over 3.76 lakh policies with over 21,578 Cr. in sum
assured.
Vision:
To be the leader provider of the wealth management, protection and retirement
solution that meets the need of the customer.
Mission:
1. To continue strive to enhance customer experience through innovative product
offering, dedicated relationship management and superior service while striving to
interact with our customer in most convenient and cost effective way.
2. To be transparent in the way we deal with our customer and act with integrity.
3. To invest in and build quality human capital in order to achieve our mission.
Values:
1. Transparency:
Crystal clear communication to our partners and stake holders
2. Value to customer:
A product and service offering in which customer perceive value

3. Rock solid and Delivery on promise:

This translates into being financially strong, operationally robust and having
clarity in claims.
4. Customer friendly:
Advice and support in working with customers and partners.
5. Profit to stakeholders:
Balance the interest of the customers, partners, employees and community at
large
4.2 Insurance Value Chain:

4.3

Sales Organization Structure:

4.4 Business Segmentation:

Businesses Segment can be defined as technique used by the companies to separate
business to reflect key develop, sell and develop differences. Segmentation is basically
done by grouping customer according to homogenous attributes. Segmentation of
business allows companies to focus its marketing where it is most productive. IDBI
federal has done its business segmentation by introducing different range of products
into the market.

For eg: childsurance, Healthsurance etc. that allows IDBI to very examine very closely
that how individual product is performing and it also helps to focus its marketing on
product that is most productive.
4.5

Products and Services Offered by IDBI Federal Life Insurance:

Childsurance:

IDBI federals childsurance is for the parents who are looking to make their
childs future shock-proof is its powerful insurance benefits. Childsurance
allows to you to protect your child plan with triple insurance benefits so that
your wealth-building plan remains unaffected by unforeseen events and your
child future remains secure.
Healthsurance:

IDBI federal Healthsurance Hospitalization and surgical plan offers host of

features and benefits that is designed to help the customers to manage extra
burden that comes with hospitalization.

Lifesurance:

IDBI feral Lifesurance Plan is a saving insurance plan that helps you to safeguard
your wealth at the same time will present better opportunity to earning better
return.
Bondsurance:

Bondsurance is designed for customer looking for guaranteed returns which will
not get affected by financial market conditions. It offers guaranteed return on
investment along with life insurance cover.

Wealthsurance:

Wealthsurance plan enables the policyholder to save and build wealth to meet
their financial goals. Wealthsurance plan comes up with a wide range of 13
investment option and 7 insurance benefits with low charge structure and
unmatched flexibility.

Homesurance:

Homesurance protection plan provides full insurance cover for properties under
construction, thus ensuring that beneficiary gets the full sanctioned amount in
case of an unfortunate event. It also has an innovative fixed cover for those who
would prepay their loans early.
Incomesurance:

Knowing customer helped us to combine the Endowment & Money Back plans
into a single plan. It linked the returns to the G-sec rates, transparently declared
by the government. Also, the Guaranteed Annual Payout and other benefits upon
death are tax- free under Sec 10(10D).

Termsurance:

Teramsurance protection plan of IDBI federal offers unique increasing cover

option that can automatically increase the cover every year without increasing
the premium.

4.6 Promotional Practices:

IDBI federal Life Insurance Co Ltd is been involved in number of promotional
practices. IDBI uses different modes of advertisements for promoting their products.
Following are the different modes through which IDBI federal promotes its products:
Print Media:
Print media is one the most reliable, cost effective and easy mode of
advertisement to reach the masses. Main ways of advertising via print media are:
1. Newspaper:
Paper

Pages

Cost (in Rs.)

The Economic
Times
Times of India

3rd

320 per sq. cm

3rd

320 per sq. cm

The Hindu

1st

400 per sq. cm

2. Pamphlets:
Pamphlets are distributed across India at least 5 times in a month without any
cost. This distribution is mainly done to create maximum awareness about the
products/services.
3. Magazines:
There is no specific magazine in which advertisement is given. Magazines are
selected based on their sales and reputation like outlook , money etc.
Television:
Television is another mode of advertisement used by IDBI federal Life Insurance
Co. Ltd. Like print media television is also very popular mode of advertisement
which easily grasps attention of masses. Mainly the advertisements of IDBI
federal are shown on Cricket channels, star channels because of their popularity.

Main promotion is done in the month of February and March to:

Highlight tax benefits
To combat competition as all the competitor insurance companies would
advertise during this time at great frequency.
Also the companies will soon start displaying their advertisement on satellite TV
like Sun network etc.
Following are the cost associate with running the TVC:
Region/ Channel

Cost (in Rs.)

Duration/ SLOT

Tamil Nadu

45,000

10 seconds

Local Channels

6000-8000

10 seconds

Cricket channels

60,000 onwards

10 seconds

Word of Mouth:
A strong network of distributors and parent advisors also helps a lot in promoting
products/ services of IDBI federal by Word of mouth.

 Online:
A viral campaign also runs on the internet by wherein flash videos of working of
product are explained in a very humorous manner. This video is shown on
www.bosskaboss.com
Hoarding:
As of now, total number of Hoardings which are put up in Hyderabad region
counts to be 17.
Cost (in Rs.)
Time Lease
4,00,000

3 months

Local Events:
Some are also created in and out of the city by IDBI federal to create more
awareness about the IDBI federal and free gifts were given wherein local
marketing people interact with the prospects and try to gauge their financial needs
and respectively pitch the products.
The overall costs associated with such an events totals to Rs. 2, 00,000 pm. Such
events are generally conducted in apartments and schools etc.

4.7

Business Life Cycle:

Business life cycle is referred as various stages of development of a small business.

Every
stage has its own unique characteristics and focus on. There are five different
stages of business Life Cycle:

1. Stage 0- The Aspirational Stage:

2.

3.

4.

5.

Stage 0 is referred as the aspiration stage or can also be termed as start-up stage,
this is the starting stage of business where people start their business.
Stage 1- The Entry Stage:
Stage 1 is the entry stage where people have decided to start their business and
they work actively building market and offers. IDBI federal was at entry stage on
March 2008 when it started its operations.
Stage 2- The Growth Stage:
Stage 2 is the growth stage. The entrepreneurs in the growth stage have a business
plan and are growing their revenues by meeting new clients and customers. IDBI
federal being started in March 2008 is in its Growth stage. The company is
growing very rapidly by becoming fastest growing new insurance company to
garner Rs. 100 cr. in premium.
Stage 3-The Crucible Stage:
Stage 3 is the Crucible stage or the maturity stage. In this stage the entrepreneurs
work at full stream but the demands for their goods and services exceed their
ability to meet it.
Stage 4- The Cruise Stage:
Stage 4 is the cruise stage or can also be termed as the decline stage. In this stage
the entrepreneurs have to identify the bottlenecks that arrived at stage 3 and try to
remove them. They have the necessary team that allows them to focus on their
core competencies.

4.8
Competitor Analysis:
Competitor analysis in marketing and strategic management is a judgment of strength
and weakness of the competitors. Companies generally do this analysis to understand
the strength and weakness of their current and potential competitors. This analysis
provides both offensive and defensive strategy to identify both opportunity and threats.
IDBI federal Life Insurance is one of emerging insurance company. It is one of the few
companies that have shown rapid growth since the day of its inception. In order to gain
higher market Share Company has to understand its competitors that is their strength
and weakness .Competitor analysis will help IDBI to understand strength and weakness
of their competitors. This analysis will help IDBI to come up with offensive or
defensive strategy to identify both opportunity and threats.
Some of the main competitors of IDBI federal are:
1. Life Insurance Corporation of India (LIC)
2. ICICI prudential
3. SBI Life
4. HDFC standard Life
5. Bajaj Alliance
Life Insurance Corporation of India ( LIC):

LIC was founded in 1956 with the merger of 243 insurance company and
provident societies. It is the largest insurance and investment company in India. It
is a state owned with 100% stake owned by government of India.
Products offered by LIC are:
1. Jeevan Arogya plan:
Jeevan arogya plan is a unique non-linked health insurance plan which
provides health insurance against certain specified health risk. LICs jeevan
arogya plan is a direct competition to IDBIs Healthsurance plan.
2. Bima Account plan:
Under this plan the premiums payed by the customer after deduction of all
charges, will be credited to the policyholders account maintained separately for
each policyholder. If all premiums are paid the amount held in policyholders
account will earn an annual interest rate of 6% p.a
3. Endowment plan:
Its a unit linked endowment plan which offers investment cum insurance
cover during the term of the policy.
4. Children Plans
5. Plan for Handicapped Dependents
6. Endowment assurance plans
7. Plans for high worth Individual
8. Money Back Plans
9. Special Money Back Plan for Women
10. Whole Life Plans
11. Term assurance plans
12. Joint Life Plan

.1

SWOT Analysis of LIC:

SWOT Analysis is a strategic planning method used to analyze strength,
weakness, opportunity and threat involved in a business or a project.
1. Strength:
LIC is Indias largest state-owned company and also Indias largest
investors
LIC has over 2000 branches all across India and more than 1, 00,000
agents.
LIC is the largest investor in India with largest fund base.
LIC has over 1, 15,000 employees across India.
LIC is the 8th most trusted brand of India.

 LIC has subsidiaries like LIC card services Ltd, LIC Housing finance
Ltd, LIC Nomura mutual fund.
2. Weakness:
It lacks imagination since it has an image of a government company
Red tape, bureaucracy causes the problem since it is a government
company.
During the economic crises managing a he workforce is a lot of
burden.

ICICI Prudential:
ICICI prudential Life Insurance Company is the joint venture of ICICI bank and
Prudential Plc, one of the leading financial service groups in UK.
Products offered by ICICI prudential:
1. ICICI pru care:
It is an insurance plan that protects familys future and ensures they lead their
life comfortably.
2. Save n Protect
3. Cash back
4. Home Assure
5. Life Guard
6. ICICI pru iprotect
7. Smartkid Regular premium
8. ICICI pru Elite Life
9. Group term insurance plan
10. Group Gratuity plan
11. Annuity solution
12. ICICI pru life link pension SP
13. Forever Life
14. Immediate annuity
15. ICICI pru heath saver
16. ICICI pru Hospital care
17. ICICI pru crisis cover
18. ICICI pru Mediassure
SWOT Analysis of ICICI prudential:

STRENGTHS:
1.Strong tie up
2.Brand Equity
3.Strong network
4.Huge customer database
5.Strong financial base

Weaknesses:
1.Low customer awareness
2.Less promotion
3.Untouched Rural Population

OPPORTUNITIES:
1.Untouched Rural market
2.Large Uninsured population
3.Network Building

Threats:
1.Competitors
2.Customer beliefs in LIC
3.Fast turnover of employees

Details of Companies inception:

Insurer
Foreign Partners

Date of Inception

Years of operation

LIC

None

01.09.1956

1956-57

ICICI Prudential

Prudential plc, UK 24.11.2000

2000-01

IDBI Federal

Ageas, Europe

2007-08

19.12.2008

First Year (Including Single Premium) Life Insurance Premium:

Insurer
2010-11
2009-10
2008-09
2007-08

2006-07

LIC

87012.35
(21.66)

71521.90
(34.49)

53179.08
(-11.36)

59996.57
(6.71)

56223.56

ICICI
Prudential

78262.14

6334.03

6811.83

8034.75

5162.13

IDBI
federal

444.95

400.56

316.78

11.90

-----------

5.2 ORGANIZATIONAL STRUCTURE

SALES ORGANIZATIONAL STRUCTURE

HUMAN RESOURCE ORGANIZATIONAL STRUCTURE

There are no Zonal Heads in the Human Resource Department the area Human
Resource executive only acts as the Human Resource Manager and reports all the
activities to the Head Office that is in MUMBAI.

OPERATIONS ORGANIZATIONAL STRUCTURE

The Zonal Managers are supported by Branch Support Executives and the
Operations department is present only in the Head Office which is in MUMBAI.

6.INTRODUCTION TO TRAINING AND DEVELOPMENT

6.1 DEFINITION OF TRAINING :
Training is a systematic development of knowledge, skills and attitudes required by an
individual to perform adequately a given task or job. Training refers to efforts that help
enhance employee skills for carrying out the present job. According to Edwin & Flippo ,
training is the act of increasing knowledge and skills of an employee for doing a
particular job.

Training and development is the field which is concerned with organizational activity
aimed at bettering the performance of individuals and groups in organizational settings. It
has been known by several names, including human resource development ,
and learning and development.

Training and development (T&D) encompasses three main activities: training, education,
and development.
Training and Development is a subsystem of an organization.
It ensures that randomness is reduced and learning or behavioral change takes place in
structured format.
Training is an educational process. People can learn new information, re-learn and
reinforce existing knowledge and skills, and most importantly have time to think and
consider what new options can help them improve their effectiveness at work.
Effective trainings convey relevant and useful information that inform participants and
develop skills and behaviors that can be transferred back to the workplace.

The goal of training is to create an impact that lasts beyond the end time of the training
itself. The focus is on creating specific action steps and commitments that focus peoples
attention on incorporating their new skills and ideas back at work.
Training can be offered as skill development for individuals and groups. In general,
trainings involve presentation and learning of content as a means for enhancing skill
development and improving workplace behaviors.

6.2 What is Training?

Training is the act of increasing the knowledge of an employee for doing a particular
Job.
Training is process of learning a sequence of programmed behavior. It is the application
of knowledge. It gives people an awareness of the rules and procedures to guide their
behaviors. It attempts to improve their performance on the current job and prepares them
for an intended job.
What is Development?

Development is a related process. It covers not only those activities which improve job
performance but also those which bring about growth of the personality. Training a
person for a bigger and higher job is development, this process includes not only
imparting skills but also certain mental and personality attributes.

6.3 Needs for training :

To improve the current job performance of employees.
To familiarize employees with the policies and procedures of the organization.
To enhance the creativity, adaptability and versatility of the employees and to
facilitate learning at the work place.
To prepare employees for future job.
To change the skills, knowledge and attitude of the employees on a permanent
basis.
To help employees manage their careers.
To maintain knowledgeable work force.
To gain competitive advantage through a knowledgeable work force.
To promote organizational growth through individual growth.
6.4 Areas of training :

Company policies and procedures.

Product based training.
Skill based training.
Problem solving training.

Training and development :

1.
2.
3.
4.
5.
6.
7.
8.

Deals with difficult behaviors

Critical conversations (strategies that work)
Using emotional intelligence at work
Customer service for organizational success
Managing stress before it manages you
Goal setting for success
Using strategy to manage change
Building Positive work place

6.5 TRADITIONAL AND MODERN APPROACH OF TRAINING AND

DEVLOPMENT
Traditional Approach Most of the organizations before never used to believe in
training. They were holding the traditional view that managers are born and not made.
There were also some views that training is a very costly affair and not worth.
Organizations used to believe more in executive pinching. But now the scenario seems to
be changing.

The Modern approach of training and development is that Indian Organizations have
realized the importance of corporate training. Training is now considered as more of
retention tool than a cost. The training system in Indian Industry has been changed to
create a smarter workforce and yield the best results

The stakeholders in training and development are categorized into several

classes.
The sponsors of training and development are senior managers.
The clients of training and development are business planners.
Line managers are responsible for coaching, resources, and performance.
The participants are those who actually undergo the processes.
The facilitators are Human Resource Management staff.
The providers are specialists in the field.
Each of these groups has its own agenda and motivations, which sometimes
conflict with the agendas and motivations of the others.

6.6 OBJECTIVE OF TRAINING:

To understand the environment of the company

To familiarize with the type of work

 To understand the environment of the company

To familiarize with the type of work
To get the insight knowledge of the company
To understand the operation of banks
To sell the companys product
To learn various marketing & financial technicalities
To understand various financial products
To understand the people and the market

7 . TRAINING AND DEVELOPMENT : IDBI FEDERAL LIFE INSURANCE Co.

Ltd.

7.1 Supportive management system : (Brief about IDBI Federal)

1. Infrastructure: Infrastructure pertains to organization structure and patterns of
autonomy. Patterns of autonomy include designations of responsibility and accompanying
measurement methods. IDBI Fortis was formed by the joint venture between three
leading financial conglomerates Indias premier development and commercial bank,
IDBI Bank, one of Indias leading private sector banks, Federal Bank and Europes
banking and insurance giant, Fortis, each of which enjoys a significant status in their
respective business segments. In this venture, IDBI Bank owns 48% equity while Federal
Bank and Fortis own 26% equity each. IDBI Fortis is headed by Mr. G.V. Nageshwara
Rao. Since its inception in March 2008, IDBI Fortis is marching strongly into the Indian

Insurance market with 150 branches and having Bancassurance facilities with IDBI and
Federal bank. Its flagship product Wealthsurance is making all heads turn with its unique
benefits of 11 riders combined in a single product.

2. Management Style and culture: Managerial styles can be of 2 types: Autocratic

style (external style) and Participative style (internal style). Corporate culture consists of
shared values, common perceptions, and common decision premises applied by
organizational participants to the activities and problems of the organization. At IDBI
Fortis, the managerial style is Participative in nature.
Wealthsurance advisors and their respective managers from different branches participate
to understand and satisfy a potential and existing customer. The culture at the
organization is also very encouraging. The vision statement says that IDBI Fortis wants to
be a leading provider of wealth management, protection and retirement solutions
that meets the needs of our customers and adds value to their lives.
For achieving this objective, it has values like Transparency, Value to customers, Rock
solid delivery to promise, Customer friendly and profit to shareholders impregnated into
its management culture. For not achieving the target set for the Wealthsurance advisors,
the management style is constructive and not punitive. Employees are given motivation
by their seniors on how to strike a chord with their customers and illustrate the benefits of
the Wealthsurance plan to its customers.

3. Rewards system: Rewards are the incentives to the value contributions of individuals
to the organization. Incentives can be both tangible and non tangible and include
monetary compensation as well as non- monetary compensation such as organizational
purpose, desirable associations, acceptance, status, increased autonomy, pride of
workmanship, and desirable physical conditions. Informal rewards are stature oriented.
These rewards are bestowed upon the key team members within the informal system.
They are usually more intrinsic in nature. At IDBI Fortis the rewards system plays a
major role in motivating employees to attain their goal. In my SIP days, the company
glorified the rewards system and encouraged us to attain our goals.
Programs like Quick Starter king/Queen, Hero March, Super April, Best performer and
Best Project augmented the morale of the interns. Monetary compensation in the form of
commission and non monetary compensation (Stature oriented) like Best performer and
Best project really gave us the drive to work in for the company.
4. Coordination and Integration: Coordination was proper between the different
functional groups at IDBI Fortis. The Training and development team and the Sales and
Marketing team regularly coordinated to provide all informations pertaining to the
company and the products to the students. The company was well integrated on how to
approach its customers. Its 3 pronged strategy to create a personalized plan for its

customers helped to integrate the core values of the company with the working of the
Summer Interns.

5. Control: Like every other Insurance company in India, IDBI Fortis was controlled in
its operations by its parent companies and the Insurance Regulatory development
authority (IRDA) externally. Employees in the organization were controlled by Rewards
system which was promotions and a constructive approach was undertaken to identify and
help the under- performers. As Summer Interns, we were also controlled by the level of
our performance.
As our performance increased which was selling of more no. of policies, we were given
more marks as allocated to the company guide and exceptional performance were assured
PPO. We were also controlled by the fact that as we were the brand ambassadors of the
company when we came across customers as so needed to work with the customer
adhering to full principles of TCF (treating customers fairly)
Training is must for every individual when he enters into the organization. Even
though the candidate has experience he also should get training. Why because the
organization culture, values and beliefs are different from one organization to other.
Thats why the training program plays a key role in every organization.

7.2 Training program following by IDBI Fortis is different at various levels.

Training program for sales managers:

 The training program duration is 15 20 days

They get training on product knowledge.
Motivating and encouraging Advisors
Training program for Advisors:

The training program duration is 15 20 day

They get training on product knowledge
How to convince the people.
Objection Handling

Training program for operations executives:

They will get training on customer database files
Taking care of the customer files
Well trained in product information and documentation
Renewals will be informed periodically.
Required skills for employees in IDBI Fortis:

Interpersonal skills
Excellent communication skills
Understanding nature
Aggressiveness
Convincing skills
Ability to motivate others
Interest to learn

7.3 CAREERSURANCETM:
At IDBI Fortis Life Insurance, we strive to provide a greater value to our customers. Our
employees are also our internal customers. It becomes imperative that we garner and
nurture a high-quality team that is dedicated to the common cause. We invest in this team
and provide them with exciting opportunities from time to time that can make them look
at insurance as a long term career. Let's address the myths about choosing a career in
Life Insurance, below:
# Myth:

People prefer other investments over life insurance.

# Fact:

While insurance is preferred over mutual funds and direct equities, majority of
Indians still invest in post office and bank deposits. Wealthsurance is an
innovative look at insurance, it comes with a unique proposition, that
delivers greater value than other investments.

# Myth:

The Company sets high expectations but offers no support

# Fact:

# Myth:

At IDBI Fortis, we have a different philosophy. We dedicate time & effort in

creating sales aid and training aids that empower our teams to perform.
The job is insecure

# Fact:

At IDBI Fortis, ample training and tools are created to help you perform. We
help you look at life insurance as a career, giving you opportunities at
different stage to grow and excel. This long term outlook and goal-orientation
with timely encouragement should help you perform and hence build job
security.

# Myth:

There is no career progression

# Fact:

With Careersurance, we help you look at your career path with us. In fact,
our compensation plan also has a well laid progression for every level.
Employees can get promoted up to 4 levels within 6 months!

Steps followed in CareersuranceTM program:

1.Training Logistics Planning:

- Aid the Training Manager in creation of a training calendar.

- Liaise with the Sales Teams to get nominations for the programs.
- Ensure provision of relevant training materials.
- Ensure Training Delivery takes place as planned in the training calendar.

2. Training Delivery:
- Playing the role of an effective classroom trainer with high energy and
good preparation.
- Adaptation of the Training style as per the requirements of the participants.
- Achieve the budgeted training man days and joint calls.
- Deliver a cross range of training programs on Knowledge and Skills.
- Roll out key training programs critical to the partner Banks.

3. Enhance Training Effectiveness:

- Collecting feedback received from Trainings and forwarding it to the HO
Team.
- Maintaining MIS for trainings conducted.
- Identifying needs and helping in developing relevant training modules to
ensure effectiveness.
4. Be a change agent:
- Initiate a positive and healthy culture change in the organization to ensure
that trainees look forward to attending training sessions.

TRAINING SESSIONS ON CUSTOMER PROFILES- Type of Investors

1.Safe investor- Secure Investment Options

a.
b.
c.
d.
e.
f.

Safety
Gauranteed Returns.
Flexibility to choose term of the plan.
Liquidation of entire investment after five years.
Option to generate double returns with little exposure to equity.
Money invested in safe instruments like govt. bonds and term deposits.
i. Plans to be offered:
a) Wealthsurance with Gauranteed Return Fund.
b) Wealthsurance with Dynamic Gauranteed fund.
c) Incomesurance.
d) Incomesurance Endowment and Moneyback Plan.
e) Termsurance.

2.Umbrella Investor - Diverse Investment Options

a.
b.
c.
d.
e.

Hedging against market related risks.

Long term and short term planning possible.
Expert fund manages portfolio of the customer through asset allocator fund.
Partial withdraw of money available after 3years.
Liquidation of entire investment after 5years.
1) Plans to be offered:
a) Wealthsurance Equity Growth Fund(50%) + Monthly Gauranteed
Interest Fund(50%).
b) Wealthsurance Equity gowth fung + Income Fund.
c) Wealthsurance Asset allocator Fund (Moderate).
d) Incomesurance .

3.Active Investor Dynamic Investment Options

a.
b.
c.
d.
e.
f.
g.
h.

Diversified Portfolio.
Fund management by experts.
Long term returns.
Returns as per investors risk appetite and investment time horizon.
Three risk return options available aggressive, moderate and cautious.
Partial withdraw of money available after 3years.
Liquidation of entire investment after 5years.
Save tax at the time of investment and also at withdrawal.
I . Plans to be offered :
a) Wealthsurance Equity Growth Fund/ Nifty Index Fund/ Mid cap Fund.
b) Wealthsurance Asset allocator fund (Aggressive/Moderate).
c) Wealthsurance Do it yourself (Choose your own fund combination and
actively manage with unlimited free switching and redirection.)

4.Focused Investor Goal Driven Investment Options.

a.
b.
c.
d.
e.
f.

Providing best quality education to children.

Cost of luxurious marriage ceremony to children.
Providing for a comfortable retired life for self and spouse.
Purchase of home for the family
Plan for the future with added convinience and flexibility.
Availing market linked returns to meet the increasing education costs or any other
dream.
g. Flexible withdrawal options to support financial needs at key milestones.
h. Save tax at the time of maturity as well as investment.
i. Flexibilty to continue the account for 5 more years even after the maturity.
I . Plans to be offered.
a) Incomesurance
b) Wealthsurance
c) Retiresurance

5.Aggressive investor Market based investment options.

a.
b.
c.
d.
e.
f.
g.
h.

Booking profits in growing market.

Investing in fallen market to get good picks.
Shifting the funds to safer instruments during high votality.
Equity growth fund.
Midcap fund.
FMC low of 1.35%.
Dynamic gauranteed fund.
Systemize gauranteed investments automatically moving into equity or vice versa
through auto switcher facility.
i. Facility to partially withdraw money available after 3 years.
j. Facility to liquidate entire investment after 5years.
k. Save tax at the time of investment and also at withdrawal.
I. Plans to be offered :
a) Wealthsurance (Equity growth fund/ Nifty fund / midcap fund / dynamic
gauranteed fund) : Do it yourself, choose your own fund and
combination.
b) Wealthsurance (aggressive asset allocator fund) let the fund manager
manage the portfolio avtively for no extra cost and optimize your returns.
6. Wealth protector
a. Guaranteed Return Funds.
Guaranteed return fund gives you written guarantee of minimum growth for 5
years/10years
Money is invested in short term and long term safe bonds.
On maturity you can redeem units at the guaranteed NAV or prevailing NAV
whichever is higher.

 You can enter the fund at the available NAV on the investment date.

7.4 Training Reward Point Trainer to Employee :

1. Quick start Self Learning Modules
o Period is 2days.
o Chapters:
Insurance sector, i.e., current insurance Environment.
IRDA- Detail study, acts/regulations, sections for insurance.
Industry introduction, i.e., about IDBI Federal Life Insurance Co.Ltd.
Organizational structure or hierarchy.
Brief about major competitors in the sector.
My time Credit
Motivational talks by the management Level people.
Credit Point system
Quick Starter
10 points

Silver Starter
30 points

Gold Starter
30 points

Platinum Starter
30 points
Government Bonds, Securities and Interest Rates.
Sales 2 policies to be closed.
2.Product Training
o Period is 2 days.
o Includes basic idea about the Life Insurance Terminologies.
Sum Assured - The assured amount, to the person, to be paid.
Consideration Premium.
Insurer/Proposer The person who is sponsoring the policy.
Insured The person whose life is insured or the policy is taken up.
Contract Enforceable agreement between the Insurer and the Insured.
Insurable Interest Loss due to the persons death.
Husband-Wife, Wife-Husband, Father-Child,
Creditor-Debtor, Employer-Employee.
Utmost Good Faith The mutual trust between the insurer and
the insured.
Premium Mortality, Investment, Contingency/Death Benefit, Expense.
Nominee The person who shall get the death benefit if any
contingency occurs to the insured person.
o Detailed Chapters on:
IncomesuranceTM Endowment & Money Back Plan.
WealthsuranceTM Brochure.

HomesuranceTM Protections Plan Brochure.

HomesuranceTM Plan Brochure.
BondsuranceTM Brochure.
TermsuranceTM Grameen Suraksha Brochure.
TermsuranceTM Protection Plan Brochure.
TermsuranceTM Grameen Bachat Yojana.
Homesurance TM Plan(single premium).
HomesuranceTM Plan(regular premium).
TermsuranceTM premium Insurance Plan.

7.5 Process Training:

o Period is 1 day.
o Online Console Training
Tracking NAV Net Asset Value.
Premium Calculators And Tools.
Paying Online.
o Filling up the Forms.
o Basic knowledge about the Medical Reports.

Training on AML Guidelines and KYC :

Reserve Bank of India has formulated a new set of guidelines KNOW YOUR
CUSTOMER Guidelines and ANTI MONEY LAUNDERING STANDARDS vide
their circular dated 26th November 2004. RBI has advised the banks to formulate a
policy and put it in place, duly approved by the Boards.

Definition of KYC Know Your Customer.

KYC is a term used for customer identification process.

It involves making reasonable efforts to determine true identity and beneficial
ownership of accounts, source of funds, the nature of customers business,
reasonableness of operations in the account in relation to the customers business,
etc.
It turn helps the banks to manage their risks prudently.
The objective of the KYC guidelines is to prevent banks being used, intentionally
or unintentionally by criminal elements for money laundering.
KYC has two components - Identity and Address. While identity remains the same,
the address may change and hence the banks are required to periodically update
their records

Definition of Money Laundering:

Section 3 of the Prevention of Money Laundering (PML) Act 2002 has defined the
offence of money laundering as under:
Whosoever directly or indirectly attempts to indulge or knowingly assists or
knowingly is a party or is actually involved in any process or activity connected
with the proceeds of crime and projecting it as untainted property shall be guilty of
offence of money laundering.

Money Laundering and KYC perception :

Banks are exposed to the following risks which arise out of Money Laundering Activities
and non-adherence of KYC standards.
Reputation Risk Risk of loss due to severe impact in banks reputation. This may
be of particular concern given the nature of the banks business, which requires the
confidence of depositors, creditors and the general market place.
Compliance Risk Risk of loss due to failure of compliance with key regulators
governing the banks operations.
Operational Risk Risk of loss resulting from inadequate or failed internal process,
people and systems, or from external events.
Legal Risk Risk of loss to any legal action the bank or its staff may face due to
failure to comply with the law.

Investment Basics:
What is Investment?

The money you earn is partly spent and the rest saved for meeting future expenses.
Instead of keeping the savings idle you may like to use savings in order to get return on it
in the future. This is called Investment.
Why should one invest?
One needs to invest to :
Earn return on your idle resources.
Generate a specified sum of money for a specific goal in life.
Make a provision for an uncertain future.

When to start Investing?

The sooner one starts Investing the better. By investing early you allow investments more
to grow, whereby the concept of compounding increases your income, by accumulating
the principal and the interest or dividend earned on it, year after year.
What is the Regulatory Body for Mutual Funds?
Securities Exchange Board of India(SEBI) is the regulatory body for all the mutual funds.
All the mutual funds must get registered with SEBI.
What are the benefits of investing in Mutual Funds?
There are several benefits from investing in a Mutual Fund:
Small Investments : Mutual funds help you to reap the benefit of returns by a
portfolio spread across a wide spectrum of companies with small investments.
Professional Fund Management : Professionals having considerable expertise,
experience and resources manage the pool of money collected by a mutual fund. They
thoroughly analyze the markets and economy to pick good investment opportunities.
Spreading Risk: An investor with limited funds might be able to invest in only one
or two stocks, thus increasing his or her risk. However, a mutual fund will spread its
risk by investing a number of sound stocks or bonds. A fund normally invests in
companies across a wide range of industries, so the risk is diversified.
Transparency : Mutual Funds regularly provide investors with information on the
value of their investments.
Choice: The large amount of Mutual Funds offer the investor a wide variety to choose
from. An investor can pick up a scheme depending upon his risk/return profile.
Regulations: All the mutual funds are registered with SEBI and they function within
the provisions of strict regulation designed to protect the interest of the investor.

What is NAV?
NAV or Net Asset Value of the fund is the cumulative market value of the assets of
the fund net of its liabilities. NAV per unit is simply the net value of assets divided by
the number of units outstanding. Buying and selling into funds is done on the basis of
NAV-related prices.
The NAV of a mutual fund are required to be published in newspapers. The NAV of
an open end scheme should be disclosed on a daily basis and the NAV of a close end
scheme should be disclosed at least on a weekly basis.

What is Entry/Exit Load?

A load is charge, which the mutual fund may collect on entry and/or exit from a fund.
A load is levied to cover the up-front cost incurred by the mutual fund for selling the
fund. It also covers one time processing costs.
Some funds do not charge any entry or exit load. These funds are referred to as No
Load Fund. Funds usually charge an entry load ranging 1.00% and 2.00%. Exit loads
vary between 0.25% and 2.00%.

Trainer Led Sessions:

This program is led by the Trainer and the Assistant Manager HR, This program is
exclusively done for the trainees to get into the business immediately.

There are total Three Steps in this process:

1.Welcome: The employees are put into a process with respect to their profile as coordinate with the Recruiting team. The process may be either of the following:

a)
b)
c)
d)

Sales manager ,
Tele caller,
Back office operator, and
Database administrator.

2.Basic of Sales Process:

a) Market Intelligence Market Intelligence within this context is information relating
to building network, that suit tour requirement within a specific geographical
location. It is crucial that every employee develop a process by which this type of
network is developed. This is done in the hope that an employee may discover
clients who can generate areas for profit. Within the process of the collection of this
information it is important to discover:
The details of the key contacts and decision makers who can be useful.
Potential customers within your area who may generate profit on a regular basis.

b) Regular Time to Develop Leads: The most Important point to make about time is
that a long term plan is crucial to ensure a sustained and continuous approach to
marketing. However, one day per week is often sufficient to handle these leads and
this day can often be divided into blocks of half-day at a time, thus maximizing their
potential.
Below are found some typical figures for the volumes of leads that can be handed
and the results when using the above mentioned strategy:
Up to 25 separate contacts/companies per day.
Around 8-10 new leads, 15+ recalls.
Approximately 10-12+ new letters/emails out per day.
Between 1-2 appointments agreed.
Up to 150+ contacts under development at any one time.
Generally 3-5 targeted potential HNI clients per month.
Generally one strong new connection every 6-7weeks.
c) Executive Support:
The management level employees support the sales and marketing areas of the
company. One of the best ways in which they do this is they make sure that they are
flexible in the time that they allocate for appointments with potential clients.
d) Encouragement of sales input across the Company :
In a firm it is important to remember that the sales and marketing areas is on the
only source of new prospects for the company. Instead the opposite is true because

in principle, every member of the company can come across new prospects and
projects of interest through the local press, local gossip or local knowledge, business
contacts and personal networks.
These projects are often very valuable because they are based upon personal connections
with employees with the firm. This being the case a system to encourage and reward such
input is put in place. This system is managed properly at a minimal cost to the company.
3.Product Refresher:
A quick go through about the products/plans offered by IDBI Federal Life Insurance Co.
Ltd. The products include:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)

IncomesuranceTM Endowment & Money Back Plan.

WealthsuranceTM Brochure.
HomesuranceTM Protection Plan Brochure.
HomesuranceTM Plan Brochure.
InsuranceBasketTM Brochure.
BondsuranceTM Brochure.
TermsuranceTM Grameen Suraksha Brochure.
TermsuranceTM Protection Plan Brochure.
RetiresuranceTM Brochure.
IncomesuranceTM Immediate Annuity.

MDP Management Development Program

MDP is to build on the core selling skills and to introduce more advanced sales concepts.
To analyze in depth how behaviour impacts on the way customers buy and to establish
ways of identifying these customer preferences thereby converting them into
opportunities to sell. This program is for Management Level employees, who are
responsible for major accounts, or who would benefit from further skill development.
This program also enables delegates to have a clear understanding of Sales Management
role and how to become more effective managers. The program is suitable for
experienced Managers, as well as those who have been or are about to be, promoted into
Executive Level Management

Program Objective :
Access the buying preferences of the customer.
List effective questions that can be used to develop an understanding of the
customers motivational drivers and aspirations.
Demonstrate how to build rapport with a wide variety of customers.

 Describe how to match product solutions to customers individual needs and

buying styles.
Demonstrate how to gain commitment to the next step.
Describe how to get effective results from a sales team using sales plan and target
techniques.
Explain how to prepare a successful sales plan.
Describe the recruitment and selection process for staff.
Describe an effective interview strategy.
Explain how to implement a seccessful training plan for the team.
List the ways to run effective meetings.
Describe how to negotiate to a win/win situation.
List the skills needed to tackle problems and make decisions.
Explain the rewards and benefits of team building.
List the skills required for effective communication.
Describe ways to improve performance appraisal skills.
Describe the techniques to improve presentation skills.

Evaluation :
Evaluation table is as below:Credit sessions reward points will be given by trainer
conducting the specific sessions.
Sl.No

Desposit Sessions

Training Reward Points

Self Learning Modules

01.

Quick Start

10

02.

Process Training

10

03.

Product Training

10

04.

AML Guidelines and KYC

20

05.

Investment Basics

20

06.

Get Set Go

20

07.

ABCD of Closing

10

08.

MDP

20

09.

Quick Starter

10

10.

Silver Starter

30

11.

Gold Starter

30

12.

Platinum Starter

30

Trainer Led Sessions

Sales

Awards and Functions :

Best trainee scoring maximum marks is awarded with a Certificate and a
Medal/Trophy. A function is organised to celebrate the event.
After the completion of each starter, every employee is given a certificate and a
Medal/Trophy.

Training Reward Point Employee to Distributor

Training given to the Distributor

Investment Basics and Taxation :

Life Insurance and retirement plans are out of the most effective ways of saving
taxes.
Life Insurance Plans and certain types of annuity plans are eligible for deduction
under section 80C.
Specified pension Plans are eligible for a deduction under sectionb 80CC.
The contributions/payments made towards the life insurance plans and
annuity/pension plans are eligible for an overall tax deduction of Rs 1,00,000/-.

 Health insurance plans/Riders are seperately eligible for deduction under section
80D.
The proceeds or withdrawals from Life Insurance Policies are exempt under Section
10(10D), subject to norms prescribed in that section.

AML Guidelines and KYC Norms.

Definition of KYC Know your Customer.
Definition of Money Laundering.
Money Laundering and KYC perceptions.

Product Training
Knowledge about all the Insurance Products offered by IDBI Federal is given to the
distributors.
ABCD of Closing
Lead
Calling
Appointment
Explanation
Documentation
Pick-up
Closing
Log-in
Issuance
Awards and Functions
Best Distributors scoring maximum premium is awarded with a certificate and
Medal/Trophy. A function is organised to celebrate the event.
After the completion of each starter, every employee is given a certificate and a
Medal/Trophy.

8. SWOT ANALYSIS OF IDBI

STRENGTHS

IDBI Federal is a private Insurance Company having stake of IDBI Bank.

IDBI Federal offers ULIP plan Wealthsurance with increased returns.
Good place to work.
Lower response time with efficient and effective service.
Dedicated workforce aiming at making a long term career in the field.
Strong and well spread network of qualified intermediaries and sales person.
Large pool of technically skilled manpower with in-depth knowledge and
understanding of the market.

WEAKNESSES
Less popularity of IDBI Federal in villages as well as in urban areas due to the
reason that its relatively new in the market.
Training program is not intensive.
Most of the people have faith on LIC as it is the oldest Government
Organization.
Low customer confidence on the private players.

OPPORTUNITIES
Insurable population: According to IRDA only 10% of the population is insured
which represent around 30% of the insurable population. This suggests more than
300m people, with the potential to buy insurance, remain uninsured.
International companies will help in building world class expertise in local market
by introducing the best global practice.
The IDBI Federal group is going to open 100 branches from existing 33 of IDBI
Federal.

 Fast-track career development opportunities on an industry-wide basis.

An apploied research centre to create opportunities for developing techniques to
provide added-value services.

THREATS
Big public sector insurance companies like Life Insurance Corporation(LIC) of
India, National Insurance Company Limited, Oriented Insurance Limited, New
India Assurance Company Limited and United India Insurance Company Limited.
People trust and go to them more.
Very high competition prevailing in the industry.
Vulnerable to reactive attack by major competitors.
Lack of infrastructural in rural areas could constrain investment.

9.Questionnaire
Name:
Age :
Gender :

Male

Female

Designation :
Email id :
Mobile No. :
1.

According to you; what is the purpose of Training?

Knowledge and Skill Acquisition

Performance Enhancement

Both

1. Do you feel that training program is in line with the business requirement?
Yes

No

2. What is your opinion about the Trainers knowledge?

Excellent

Good

Fair

Poor

Very Poor

3. According to you; what should be the tentative time / convenient time

for the training classes?
Morning

Afternoon

Evening

4. Is there any requirement for the training sessions on Calling?

Yes

No

5. Do you require sessions on succession planning program?

Yes

No

6. What is your opinion about the Training Reward Point System?

Excellent

Good

Fair

Poor

Very Poor

7. In which areas an employee needs training?

Company policies and procedures
Product based training
Problem solving skills
All the above

8. Please rate the improvement in your performance after the training program.(1Minimum to 5-Maximum)
1

10. How much you are satisfied with Training Process?

Extremely Satisfied
Satisfied
Neither Satisfied nor Dissatisfied
Dissatisfied
Extremely Dissatisfied

What additional benefits you would like to have?

_____________________________________________________________________
____________________________________________________

9. Analysis and Interpretation

Total Respondents

50

Average Age (in years)

34.56

Male
Female

35
15

Gender
Gender

35

15

Male

Ques 1.

Female

According to you; what is the purpose of Training?

Percentage
Knowledge and Skill Acquisition
Performance Enhancement
Both

17
15
18

34
30
36

Percentage

34

36

Knowledge & Skill Acquisition

Performance Enhancement
Both

30

Interpretation :
34% of employees think that Training is for acquiring Knowledge and Skills, while 30%
of the employees said that it is for enhancing their performance and 36% say its both.

Ques 2 .Do you feel that training program is in line with the business requirement?
Percentage
Yes

43

86

No

07

14

Percentage
Yes

No

14%

86%

Interpretation:
86% employees said that the training program is in line to the business requirement. 14%
employees said that it is not.
Ques 3. What is your opinion about the Trainers knowledge?
Percentage
Excellent
Good
Fair
Poor
Very Poor

0
5
26
16
3

0
10
52
32
6

Percentage
Options

52
32
0

10

Excellent

Good

6
Fair

Poor

Very Poor

Interpretation:
62% employees said that the trainers knowledge is up to the mark.38% of total
respondents are unhappy about the trainers knowledge.

Ques 4. According to you; what should be the tentative time / convenient time
for the training classes?
Percentage
Morning
Afternoon
Evening

26
15
9

52
30
18

Percentage
Morning

Afternoon

Evening

18%
52%
30%

Interpretation :
52% employees are comfortable with the morning sessions, while 30% employees are
comfortable with Afternoon Sessions. Evening Sessions are preferred by 18% Employees.

Ques 5. Is there any requirement for the training sessions on Calling?

Percentage
Yes
No

45
5

90
10

Percentage
Yes

No

10%

90%

Interpretation :
90% employees think that mock calling should be a part of the Training Program.

Ques 6. Do you require sessions on succession planning program?

Percentage
Yes
No

41
9

82
18

Percentage
Yes

No

18%

82%

Interpretation:
82% employees said that they require secession-planning program.

Ques 7. What is your opinion about the Training Reward Point System?
Percentage
Excellent
Good
Fair
Poor
Very Poor

0
30
8
11
1

0
60
16
22
2

Percentage
0%
2%
22%
Excellent
Good
Fair
16%

60%

Poor
Very Poor

Interpretation :
76% employees said that TRP system is good and fair, while 24% employees said that
this is not good.

Ques 8 . In which areas an employee needs training?

Percentage
Company policies and procedures
Product based training
Problem Solving Skills
All of them

7
6
11
26

14
12
22
52

Percentage

14%
12%

Company policies and

procedures
Product Based training

52%
22%

Problem solving skills

All of them

Interpretation :
52% employees think that an employee should be trained in all the areas, while 22% said
that Problem Solving Skills are of utmost importance.

Ques 9. Please rate the improvement in your performance after the training program:
Percentage
1
2
3
4
5

6
16
26
2
0

12
32
52
4
0

4
Column2
3

Column1
Series 1

1
0

10

15

20

25

30

Interpretation :
About 44% employees said that there is not much of improvement in performance after
training program, while 52% employees said that there is a little improvement.
Ques 10. How much you are satisfied with Training Process?
Percentage
Extremely Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Dissatisfied
Extremely Dissatisfied

1
9
7
30
3

2
18
14
60
6

Options
30
25
20
15
Options
10
5
0
Extremely
Satisfied

Satisfied

Neither
Satisfied nor
Dissatisfied

Dissatisfied

Extremely
Dissatisfied

Interpretation :
66% employees are not satisfied with the training process, while 20% are satisfied.

10.1 Testing of Hypothesis :

Z-Test
Sample Size, n = 50
p = 0.622
q= 0.378
E(p) = 0.60
Where P = Number of respondents who were affirmative to the Query.
Q = Number of respondents who were not affirmative to the query.
E(p) = Standard error of p
N = Sample size
H0 = Majority of the employees at IDBI Federal who are satisfied with the Training Program

H1 = Majority of the employees at IDBI Federal who are not satisfied with the Training Program.
Therefore, H0 H1
Hence, it is a two tailed test.
Assuming that H0 is true computing the test statistic at 5% Level of Significance,.
Zcal = p E(p)/S.E of p ; Where S.E of p = sqrt (pq/n)
Calculations:
S.E of P = 0.62*0.38/50=0.068
Zcal = 0.62-0.60/0.068= 0.29 i.e. 29%
Decision:
Since |Zcal| < |Ztab| ; We accept H1 and reject H0
Therefore the hypothesis proves that 71% of employees at IDBI Federal are not satisfied with training
program
11 . Facts And Findings:

Total respondents 50.

Average Age 34 years.
Male 35, Female 15.
Overall satisfaction percentage of training process is only 20%.
36% employees feel that training is for both Knowledge and Skills Acquisition and performance
Enhancement.
86% employees feel that the training process meets business requirements.
38% employees feel that trainers knowledge is not up to the mark.
More than 50% employees feel that training should be given in all the areas like Policies and
Procedures, Product based Training and Problem Solving Skills.
90% employees feel that Mock Calling Sessions has to be included in Training Module.
76% employees find the TRP system is fair and good.
82% employees feel the need of having session on Succession planning.
52% employees have rated their improvement after Training. While 44% employees felt very
little or little improvement in their performance after Training Program.

12. Recommendations:

The training process needs to be made more intensive.

AML guidelines and KYC modules should be discussed more.
Case studies should be given to the trainees so as to overcome critical issues immediately.
Computer Based Training can be introduced to save on cost.
Online Training can also be implemented to save time.
Mock Calling Techniques should be introduced to help employees learn various
techniques of talking to customers and convincing on phone.
Online Premium Payment is available on IDBI Federal website. Online Applications can
also be added to save on cost and provide ease of access to the knowledgeable customers.
Create awareness: The Company has to take care of awareness creation about the
products and services among the Advisors/Agents.
Charges: The Company has to reduce the mortality and administration charges.
Product promotion strategies should be improved.
Company should consider the present competition and should act according to the
customer needs.
There should be long term training like Succession - Planning class which would help the
employees to grow into Managers in the near future.

13.Conclusion:
On the basis of my study, I conclude that
IDBI Federal Life Insurance Co. Ltd is a new private player in the Indian
Insurance Market.
It is the private company with a 48% stake of IDBI Bank.
Its a very fast growing insurer.
The Training and Development process at IDBI Federal is systematic.
The training process is carried out session wise.
The entire training process is based on Training Reward Point System.
There are 2 broad types of training, as per TRP system:
o Trainer to Employee
o Employee to Distributor
The training sessions are divided into 2 phases.
o Self Learning Modules
o Trainer Led Sessions
These are different chapters for each modules and are explained in a
PowerPoint presentation method to the trainees.
There is also a training module for Management Level Employees(MDP)
There are modules on Sales, to enhance selling techniques of the employees.
Awards are given to the employees and distributors to appraise their
performance.
System is fair and clean. There are no complaints whatsoever as been told by
the respective managers.

14. CASE STUDY :

CASE 1 . A CASE STUDY ON MONEY LAUNDERING IN INSURANCE
BUSINESS
Facts of the Case
During first week of August 2006, branch manager Mr. Sukdeep Singh of M/s Beassure
Insurance Co. Ltd, New Delhi branch was very excited to know that Mr. Sunder Lal, a
business man with an annual turnover of Rs. 2 crores, wanted to buy an Insurance Policy.
Long Life- a Unit Linked Single premium product which had no cap on maximum
premium payable.
The point of excitement was that he called to take a cover for 10 crores with a single
premium remittance of Rs. 10 lakhs. He, however, expressed his reservations regarding
remittance of premium wherein he desired to make the payment partly through bank
account which at the moment had a balance of Rs. 6 lakhs. He informed that balance of
the premium he would remit in cash. Mr. Singh was left in a fix. He was not in favour of
losing his valuable customer.
At the same time, he had to comply with the IRDA guidelines on AntiMoney Laundering
(AML) wherein he was not supposed to allow remittance of premium in cash beyond Rs.
50,000/-.
He succumbed to the pressure to fulfill his annual targets and used all his mind and
influence to ensure that Mr. Lal was issued the policy. Mr. Singh, could accomplish this
task with all ease, as it was the time when software on AML was getting implemented in
phases across all the branches of the company and was facing certain teething problems.
In the free-look period Mr. Lal came back to cancel his policy as he was not happy with
the terms and he wished to take another policy with better terms to suit his requirement.
As a valuable customer Mr. Lal was given back Rs. 9.5 lakhs based on the NAV as on
that date and after deducting administrative charges. With a promise to take another
policy after a weeks time, Mr. Lal vanished from the scene.

After 10 days, Mr. Singh happened to read the local newspaper wherein he came to know
that Mr. Lal was arrested on a non- bailable warrant and is a prime suspect in the
smuggling racket of cocaine that came to light a week ago.
He was happy that he had no more dealings with the accused. He also recollected his
agents informal remarks that the so called businessman had changed his residential
address twice during the previous year and was likely to shift to his own house some time
during the last quarter of the calendar year and as such provided his friends address for
communication.

Out of curiosity, he reviewed the documents attached along with the proposal form. He
found that Mr. Lal had submitted:

A written confirmation from his banker as Identity proof

Income tax return for the previous year ended 2005 as income proof
Photostat copy of his SSC certificate as age proof

Mr. Lal had furnished all the minimum documents required for financial underwriting.
Mr. Singh sighed with relief and thanked God, because the policy was cancelled as the
terms and conditions of Long life did not please Mr. Lal.
Now that there is no insurance contract, there is hardly any possibility of him being
caught for having dealings with Mr. Lal.

Case Problem
Mr. Singh has no more dealings with Mr. Lal as there is no insurance contract.
However,after reading the news item, and having realized that Mr. Lal was a prime
suspect in a smuggling case and to whom he ensured issuance of an insurance policy
violating vital requirements of the AML guidelines issued by IRDA, what is the course of
action left to Mr. Singh?
Mr. Singh is hardly in possession of any documents which could be used for an audit trail
to trace out that money laundering was involved. Has he got to report the transaction to
Financial Intelligence Unit FIU-IND?
What is the position of Mr. Singh who did not report the transaction as required by the
guidelines?
What is the course of action towards the insurance company which might have become a
part of the money laundering process though unknowingly?
What steps should the insurance company take in order to avoid occurrence of such
violations in the implementation of AML guidelines?
Case Analysis

Background for analysis: Money Laundering (ML) is a process of cleansing dirty money,
derived out of organised criminal activities, in order to make it look like having legal
origin. It involves three stages, namely placement, layering and integration in which
criminal proceeds pass through a series of intricate transactions among various financial
institutions. Thus, illegal money is distanced from its source and used at the destination.
Recent past has witnessed the ML process being used basically to fund terrorist activities.
As such there is a growing concern across the world to curb the progression. A step
towards this direction in our country is the enactment of The Prevention of Money
Laundering Act, 2002 which criminalizes the ML process.

As per section 3 of the Prevention of Money Laundering Act, 2002 a person who is
involved directly or indirectly or indulges or assists or is a party in any process or activity
connected with the proceeds of crime and projecting it as untainted property would be
guilty of offence of money-laundering. He/she would be liable for a punishment, not less
than 3 years and which may extend upto 7 or 10 years, based on the crime involved and
would also be liable to a fine which may extend to Rs. 5 lakhs.
Vulnerability of insurance sector to ML processes is far less in comparison with that of
other financial institutions.However, there are certain highly prone areas in this sector.
Eg., single premium products. Buying single premium products with huge premium
remittance and cancellation of the same especially during the free-look period is one of
the various ways in which ML can happen in life insurance industry. In general insurance,
it takes the form of fraudulent claims or refunds following cancellations.
The triumvirate regulators of the financial institutions (FIs) namely RBI, SEBI and IRDA
have issued guidelines to comply with the PML Act to their respective regulated entities.
Fis should submit reports of certain specified transactions to Financial Intelligence Unit
(FIUIND), which is the central, national agency responsible for receiving, processing,
analyzing and disseminating information relating to suspect financial transactions to
enforcement agencies. Guidelines on Anti-Money Laundering Programme for Insurers
were issued in March 2006. It requires every insurance company to have in place their
Anti-Money Laundering Policy and emphasizes Know Your Customer (KYC) norms.
Accordingly, insurance companies are required to collect recent photograph of individual
clients; document identity of the customer; his/her residential address (both permanent
and temporary); and sources of funds based on the risk profile of the customer besides the
documents required by underwriting norms. Premium remittance cannot be in cash
beyond Rs. 50000/-. Cash transactions above Rs. 10 lakhs in a month and series of all
cash transactions integrally connected to each other which have been valued below Rs. 10
lakhs where such series of transactions have taken place within a month and those that are
suspicious in nature (whether in cash or not) should be reported to FIU-IND.

Analysis of case under review

AML guidelines are in the nascent stage of implementation in the insurance industry in
our country. There is a general lack of awareness in the industry as a whole that insurance
products are attractive to money launderers. Like Mr. Singh, many employees of the
insurance companies are not aware of the fact that their priorities in carrying out their
responsibilities can facilitate insurance companies being utilized as a conduit in the
layering process of ML. They are concerned more about their routine annual targets and
bypass major issues which are likely to arouse regulatory concerns as seen in the present
case.
Mr. Singh, if he were compliant, should have insisted upon proper proof of residence and
photograph which needs to be collected mandatorily under AML guidelines apart from
whatever documents were submitted by Mr. Lal. Had he insisted upon proper
documentation, he might have got a clue about the intentions of his client wherein he
ensured to receive a cheque from the insurance company in the pretext of cancellation.
Clients reactions could have roused suspicion which in turn warrants reporting
requirements.
Mr. Singh disregarded AML guidelines. He would have sensed the possibility of ML
when he had read the news item on the arrest of Mr. Lal in the smuggling racket.
However, he tried to pretend ignorance under the cover that he no longer had any contract
with Mr. Lal. Suspicious transactions are required to be reported within 3 days of
identification. Mr. Singh suspected only after the publication of the news item about Mr.
Lal. He is very well bound to report at that stage in spite of lack of any valid contract.
But, as this would have brought out his non-compliance with the AML requirements as
regards documentation mandated in the AML guidelines, Mr. Singh would not venture
such an attempt.
Interrogation of the case can bring out the fact that proceeds, out of cancelled insurance
contracts, was being used in financing the smuggling process. It would ultimately crystal
down to reveal the fact that AML guidelines were not complied with. It certainly attracts
penal action against Mr. Singh, both for non-compliance with the guidelines and also with
the PML Act. Insurance companys reputation is at stake as this case would highlight the
fact that it has failed in training and motivating their employees to comply with the
guidelines. It also shows the ineffective implementation of regulatory directions.
Insurance companies are responsible for the compliance and implementation of AML
guidelines. Insurance companies are expected to impart ample training on the subject to
all their employees/agents, both the front and back office staff, for effective
implementation of their AML policy. Any violation of Act or non-compliance of
guidelines indicates improper communication of the impact of ML at various levels of the
organisation. In view of the responsibility fixed upon the insurance company, M/s
Beassure Assurance Co. Ltd should review the training requirements of the staff and
make it more effective to educate their employees on the implications of non-compliance
and the penalties that follow non-compliance.

In the instant case, delay in the installation of software on AML which have in-built
mechanisms to check the violation of threshold limits of acceptance of cash has
contributed towards violation. Internal audit department of the Company should carry out
extensive check on all the exceptional transactions that took place during the installation
phase of the software to bring out more violations if any.
Once the issue surfaces out, insurance company should take disciplinary action against
Mr. Singh which would prove a lesson to other employees. Unless strenuous action is
initiated against such violations, implementation of the guidelines cannot be effective and
successful. The company will have to intensify their training campaigns to make sure that
the communications on AML reaches all the levels of the organisation. They may quote
the specific incidence of non-compliance and the action taken against such deviation to
highlight the necessity and importance of AML measures adopted by the company.

The Company should also carry out quick and thorough check of the software to ensure
that it is fool-proof. People like Mr. Singh will never be able to guess or understand, how
they are aiding terrorist attacks like 9/11 by giving weightage to measly areas like
fulfillment of their annual targets by sacrificing the larger interest of the society.
Achievement of pre-set targets lead to accomplishment of organizational objectives,
which however should not be at the cost of interest of the society at large. In the process,
however, they should not be indifferent towards their social responsibility. Organisations
have a duty to ensure that they educate their employees to give equal importance to the
accomplishment of individual annual targets and also comply with law and regulatory
concerns. Individual and organizational goals should not prove hazardous to the welfare
of the society.

CASE 2. Insurer Improves Agent Training and Gains Competitive Advantage

AXA Seguros sees productivity soar after adopting WebEx tools to provide consistent
agent training across all of Mexico.
Challenge
When global financial protection firm AXA Group acquired Mexican insurer Seguros
ING to form AXA Seguros, its plan for the new company was to expand aggressively
within Mexico. To that end, it rapidly grew its sales force, dispatching more than 8000
agents to every corner of the country to sell life, car, medical, home, and damage
insurance to citizens, corporations, and government organizations. With so many agents,
AXA was challenged to keep pace with the training needs of its newly expanded sales
team, many in very remote locations.
Our sales agents need extensive training, and that training needs to be updated
frequently, says Carlos Islas Murguia, director of Mexico Citys AXA University, the
branch of AXA responsible for providing that instruction. But with a sales force spread
across more than 760,000 square miles, delivering this training to agents in their own
locales or requiring them to travel to Mexico City for classes was not feasible. Not only
were the logistics extremely complicated, the funds and human resources required for
such an endeavor simply did not exist.
The company had already achieved great success using Cisco TelePresence technology
to conduct executive presentations remotely. Impressed by the high-definition video and
audio qualities of Cisco TelePresence technology, in addition to its convenient
collaborative tools, AXA Seguros tried addressing its agent training with videoconference
sessions. Although these videoconferences made an instructor available to several
locations simultaneously, they still needed to extend training to those who were not
located near facilities equipped with TelePresence. The problem remained that our
agents in outlying areas were not receiving the same quantity or quality of training as
those in big cities, says Islas. As a result, their sales suffered.
AXA Seguros began a search for a user-friendly, web-based solution that would enable
the company to provide distance learning to its widespread agent force, even in the most
remote locations.

Solution

Islas and his team compiled a list of AXA Seguros requirements for a web-based training
tool. These requirements included a software as a service (SaaS) delivery model, stellar
connectivity, the ability to record events, a variety of collaboration features, integration of
multiple media types, and ease of use.
Cisco WebEx technology met all of the above requirements. Whats more, WebEx
technology could easily be integrated with the companys existing Cisco network
infrastructure. For Islas, the choice was simple. WebEx Training Center provided the
features we required and the flexibility to adapt to our growing needs. Plus, Ciscos vision
of using technology to extend reach, improve collaboration, and streamline processes
aligns perfectly with AXAs own vision. Rapid deployment and adoption were also key
criteria. Cisco WebEx technology delivered both. With the help of WebEx consultants,
AXA University quickly adapted its curriculum to the new platform and began offering
courses online. The response was immediate and positive. I was amazed at how quickly
agents with very little computer experience were able to start using WebEx, says Islas.
Today, WebEx Training Center is a key component of an AXA University training
program that includes more than 40 courses delivered over three years. At the end of this
period, trainees receive an accreditation equivalent to a bachelors degree. In 2010, the
first 1000 agents received their certification from the WebEx-enabled program.
For Islas, though, it is not just about the number of agents reached; it is also about the
quality of the curriculum that AXA University is able to provide. WebEx tools have
increased this exponentially.

With WebEx, we can provide a much more robust training program, says Islas. For
example, were starting to make short films of our best agents in action offering tips to
colleagues. These are then offered on demand as part of our curriculum. Agents love this,
and it affords us a new way of teaching best practices. From the high-quality
videoconferencing provided by TelePresence to the rich distance learning opportunities
afforded by WebEx software, our Cisco solutions are allowing us to collaborate in ways
we could have never imagined prior to our adoption of these technologies.
WebEx technology has also caught on internally at AXA Seguros, precipitated by the
2009 H1N1 flu pandemic. When the threat of an epidemic suddenly restricted travel and
made it difficult for even local employees to come in to the office, company executives
turned to WebEx technology to continue business, says Islas.
When they were able to move their executive sessions and internal meetings online and
collaborate as if they were in the same room, they immediately saw the power of the
technology. Since then, the use of WebEx technology has spread throughout the
company.
The human resources department employs WebEx tools to conduct face-to-face
interviews with remote candidates. And even out-of-country suppliers are now able to
meet with AXA executives remotely to demonstrate new technology and products.

Results
When we made our case for adopting WebEx technology, we had to provide cold, hard
numbers to convince management that the software would provide a rapid return on
investment, says Islas.
Today, those executives couldnt be happier. Since deploying WebEx Training Center,
weve seen huge gains in productivity and communications. And those gains have come
at a very low cost to AXA Seguros.
Reduced travel has contributed greatly to those gains. Since transferring the bulk of its
training to the web, the company has decreased travel costs by 70 percent. And it has
done so during a period in which 2000 agents were added to its sales force. WebEx
technology has given us a huge competitive advantage, says Islas.
It puts us miles in front of other Mexican insurers in terms of the way were training
agents and the professionalism those agents are able to demonstrate in the field. Better
training translates to better sales, and our agents are experiencing both.

WebEx technology also allows AXA Seguros to get closer to customers while still
heeding the companys Green Actions initiative of reducing its carbon footprint and being
mindful of the environment. Our government and corporate customers love the fact that
we can now share information with them instantly over the web, says Islas.
Theres no more printing and distribution of massive documents and no more travel
required to attend in-person meetings, which is a bonus for everyone.For Islas, one
particularly gratifying aspect of AXA Seguros use of WebEx training tools has been the
global reach that it has provided.
Not only have AXA Seguros executives used WebEx technology to meet virtually with
AXA Group colleagues in Europe, the United States, and Asia, but AXA Universities in
other parts of the world have begun to recognize the success that Islas and team have
achieved by deploying distance learning. Both my colleagues at other AXA Universities
and other insurance companies have noted the strides weve made in training since
adopting WebEx technology, says Islas.
Now, theyre actively seeking our advice. By sharing best practices with colleagues and
companies around the globe, we strengthen our reputation within the industry.

15. ARTICLE
INSURANCE E-LEARNING IN PRACTICE - (Post Magazine - Summer 2010)
E-learning is still a relatively new development. Although Learning Management
Systems (LMS) first began appearing at the time of the 1990s dot.com boom, these were
initially expensive and employed a 'locked down' learning architecture leaving little scope
for configuration by training managers. Online learning materials also tended to be
relatively crude adaptations of paper-based materials that paid insufficient heed to the
way individuals learn in an electronic environment.
Over the last three or four years, however, as broadband has become increasingly
commonplace within the workplace - and as LMS development has progressed to offer
better usability and affordability - e-learning has established itself as a truly viable
medium alongside the traditional route of face-to-face training. A number of insurancespecific e-learning systems are now available, some of which include literally hundreds of
courses - on both technical insurance subjects and general business and management
skills (soft skills).
It is difficult to assess precisely what proportion of insurance training now takes place
online. But certainly there has been a significant take-up in the last couple of years, and
probably a dip in face-to-face. An obvious attraction has been the perceived costeffectiveness. Some see e-learning as a quick and easy way of making at least some
provision for T&C - though whether this will be enough to satisfy the regulator remains
to be seen!

E-learning certainly provides a degree of training convenience and flexibility. Individual

courses are typically delivered in small packages, or bites, allowing students to work at
their own pace anywhere they have Internet access. In terms of cost, access for one
individual to hundreds of courses for a whole year can cost roughly the same as a single
day's face-to-face training.
From a compliance point of view, the competence assessment functions offered by some
such systems are an obvious attraction - allowing learning to be targeted to gaps in the
employee's knowledge and skills. Another appeal is their ability to record all learning and
test results automatically, as well as other information such as CPD credits. The FSA has
specifically stressed the importance of firms retaining and being able to access individual
training records. Some systems also support students in studying for industry
qualifications such as ACII or CeRGI.
But e-learning is not necessarily the cut-price panacea some might like to imagine. Its
value in practice varies greatly depending on how effectively companies manage the way
their staff use e-learning materials. It can never remove the need for training managers to

plan and direct learning programmes tailored to the training needs of the individual and
the business, but it can make the process a lot easier to implement, manage, monitor and
record.
Nor is e-learning necessarily the right approach for every individual. Prakash Sudra, team
leader with Epping-based brokers J&M Insurance comments: "I've found that different
people respond to different training approaches. Some take to the online approach like a
duck to water and pick up knowledge very rapidly that way. Others need more face-toface input. So it is always a question of balancing the two in a way that is going to
develop that individual's skills most effectively."

Training managers often find in practice that more complex and technical subjects also
require a face-to-face approach. Although some systems allow students to email queries
to course authors, there is no real substitute for the ability to quiz an experienced trainer
face-to-face.

16. Bibliography :
Websites:
www.idbifederal.com
www.irdaindia.com
http://www.cisco.com/assets/prod/webex/cases/AXA_casestudy.pdf
http://managementhelp.org/trng_dev/basics/reasons.htm
www.greatplacetowork.in/best/2010studyBrochure.pdf
www.prlog.org/10773917-india-insurance-report-q3-2010-is-now-available-at-fastmarket-research.pdf
http://latenttalent.co.in/yahoo_site_admin/assets/docs/latent_profile.216210320.pdf
http://www.ebookcomputer.com/management-development-pdf_chm-22517.html
http://www.workforce.com/tools/reports/workforceManagementSpecialReportT&
D.pdf

Company Information :
Training and Development Details - Mrs.Shanthi Yagyanath, Asst Branch Head,
IDBI Federal Life, Coimbatore Office .
Company Information IDBI Federal Website (www.idbifederal.com)
Organizational Structure Mr. Vinay Kumar, IDBI Federal Hyderabad.
Questionnaire Respondents Employees from IDBI Federal Hyderabad and
Coimbatore branch offices