A PROJECT ON

HR PRACTICES AND POLICES OF ICICI PRUDENTIAL

LIFE INSURANCE COMPANY LTD
A project report submitted in partial fulfillment of the requirement for the degree of

MASTER OF BUSINESS ADMINISTRATION

RESEARCH SUPERVISOR
DR SHASHI BALA JAIN

SUBMITTED BY:
Name Akshay singla
14MBA1011

CERTIFICATE
This is to certify that the project report entitled HR PRATICES AND POLICES OF
ICICI PRUDENTIAL LIFE INSURANCE CO LTD submitted by Mr. Akshay singla of
the DIRECTORATE OF DISTANCE EDUCATION GURU JAMBHESHWAR UN
IVERSITY OF1 SCIENCE & TECHNOLOGY HISAR (INDIA) in partial fulfillment of
the requirement for the degree of Master of Business Administration (MBA) is a bonafide
research work completed under my guidance and supervision. No part of this project
report has ever been submitted for any other degree or diploma. The assistance rendered
during the course of the study has been duly acknowledged.

DECLARATION
Certified that I BHARAT BHUSHAN of Master of Business Administration
(MBA) have prepared report titled COMPATATIVE STUDY OF HR PRACTICES
2

AND POLICES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD. (DIST

PATIALA) under the guidance of DR SHASHI BALA JAIN CHANDIGARH, in the
partial fulfillment of the requirement for the degree of Master of Business
Administration. There by certify that no part of this report has been submitted for any
other degree.

Akshay singla
14MBA1012
MBA 1 A

TABLE OF CONTENT

Chapter. No

CONTENTS

1.

INTRODUCTION

2.

PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE CO.LTD.

3.

IMPLEMENTING HR PRACTICES AND POLICES IN ICICI PR

4.

SUGGESTION

5.

CONCLUSION

6.

LIMITATIONS

7.

BIBLIOGRAPHY

Page No.

COMPANY PROFILE

ICICI Prudential Life Insurance Life Insurance Company is a joint venture

between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading
international financial services group headquartered in the United Kingdom. ICICI
Prudential Life Insurance was amongst the first private sector insurance companies to
begin operations in December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).
ICICI Prudential Life Insurance''s equity base stands at Rs. 675 crore with ICICI
Bank and Prudential plc holding 55% and 45% stake respectively. In the quarter ended
June 30, 2004, the company issued over 100,000 policies, for a total sum assured of over
Rs 3,753 crore and had a new business premium income of Rs. 242 crore. Today the
company is the #1 private life insurers in the country.

GROWTH PATTERN

ICICI Prudential Life Insurance has one of the largest distribution networks amongst
private life insurers in India, having commenced operations in 62 cities and towns in
India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad,
Bangalore, Bareilly, Bhatinda, Bhopal, Bhubhaneshwar, Chandigarh, Chennai,
Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Gwalior, Hyderabad, Hubli, Indore,
Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata,
Kolhapur, Kota, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore,
Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot,
Ranchi, Rourkela, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur,
Vadodara, Vashi, Vijayawada and Vizag. The company has ten bancassurance tie-ups,
having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of
India, Lord Krishna Bank, as well as some co-operative banks and corporate agents.
It has also tied up with organizations like Dhan for distribution of Salaam Zindagi, a
policy for the socially and economically underprivileged sections of society. ICICI
Prudential Life Insurance has recruited and trained over 36,000 insurance agents to
interface with and advice customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.
3.2 ORGANIZATIONAL STRUCTURE
Board of Directors
The ICICI Prudential Life Insurance Life Insurance Company Limited Board
comprises reputed people from the finance industry both from India and
abroad.
Mr. Ajay Srinivasan
Ms. Shikha Sharma

Mr. N. S kannan.
Mr. K. S. Mehta
Mr. Dadi Engineer
Mr. Pradip P. Shah
Dr. (Mrs.) Swati A. Piramal
Mr. Pankaj Razdan
Management Team
Ms. Shikha Sharma, Managing Director
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Shubhro J. Mitra, Chief - Human Resources
Mr. Puneet Nanda, Head - Investments
Ms. Anita Pai, Chief - Customer Service and Operations
Mr. V. Rajagopalan, Appointed Actuary
Mr. Shridhar Sethuram, Chief - Strategy
STRUCTURE AND GROWTH OF INVESTMENT
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management
Company, which has today emerged as one of the leading mutual funds in India. The two
companies bring together two of the strongest financial service brands in Asia, known for
their professionalism, excellent quality of service and long term commitment to YOU.
Riding on the success of this relationship, the two companies joined hands once more in
2000, to form ICICI Prudential Life Insurance Life Insurance, with a commitment to
provide leading-edge life insurance solutions.
ICICI Bank has 45% stake in the company, and Prudential plc has 55%.
ICICI Bank
7

ICICI Bank (NYSE:IBN) is India''s second largest bank with an asset base of Rs.
106812 crore. ICICI Bank provides a broad spectrum of financial services to individuals
and companies. This includes mortgages, car and personal loans, credit and debit cards,
corporate and agricultural finance. The Bank services a growing customer base of more
than 7 million customer accounts and 5 million bondholders accounts through a multichannel access network. This includes about 450 branches and extension counters, 1675
ATMs, call centre and Internet banking (www.icicibank.com). ICICI Bank posted a net
profit of Rs.1, 206 crore . ICICI Bank is the only Indian company to be rated above the
country rating by the international rating agency Moody''s and the only Indian company
to be awarded an investment grade international credit rating. The Bank enjoys the
highest AAA (or equivalent) rating from all leading Indian rating agencies.
Prudential plc
Established in 1848, Prudential plc is a leading international financial services company
in the UK, with around US$250 billion funds under management and more than 16
million customers worldwide. Prudential has brought to market an integrated range of
financial services products that now includes life assurance, pensions, mutual funds,
banking, investment management and general insurance. In Asia, Prudential is UK''s
largest life insurance company with a vast network of 22 life and mutual fund operations
in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudential has
championed customer-centric products and services, supported by over 60,000 staff and
agents across the region.
Underwriting
Underwriting at ICICI Prudential Life Insurance is designed to ensure that the best lives
are taken in the risk pool and at the same time assist sales in getting more policies.
Underwriting at ICICI Prudential Life Insurance is divided into the following categories:

1. Non-Medical underwriting or jet underwriting

2. Standard Medical underwriting
3. Medical underwriting
4. Female underwriting
Non-Medical Underwriting or Jet Underwriting
Definition:
1. Educated life earning regular income through employment
2. Professionally qualified life earning regular income through practice
3. Businessmen with gross income of Rs. 2 lakh as proved by ITR for the last
financial year
Maximum age at entry: 45 years
Maximum Premium Ceasing age: 65 years
Minimum service:
Employed with the government defense, PSUs, Public or Private Ltd. Co.s only.
Employees of partnership firms and proprietorship firms will not qualify.

Qualifying Documents:
For Employed: 1. Salary certificate / slip (authentication by employer not necessary)
2. Appointment letter given by employer
3. Tax returns for last one year (last financial year)
4. Form 16
For Professionals: 1. Copy of degree certificate signed by the life assured
2. self declaration by professional on his printed letter head mentioning the
year and place of obtaining the professional degree and years of practice
3. Tax returns for last 1 year (last financial year end)

For Businessmen: 1. Tax returns for last 1 year (last financial year end) showing income above 2
lakhs
Plans allowed: All plans other than Lifeguard series
Riders Allowed: All
Maximum limit for eligible plan SA+ Rider SA (duly rated up but not including nonmedical plans)
18 to 35 years: Rs. 10 lakhs death risk
36 to 45 years: Rs. 5 lakhs death risk

Standard Medical Underwriting

Cases that do not fall under jet i.e., non medical such cases go through medical. The
simplest medical examination is called as SME- Standard medical examination and a
majority or policies sold fall under this category.
Medical underwriting
For cases that have high sum assure and high ages or the underwriter feels that their
needs to be more security before issuance-certain medical tests are conducted

Female underwriting
Female underwriting is divided into three groups. Special underwriting norms are
required for female lives because of health profile, pregnancy related issues and the
varied socio-economic profile
3.5 PERFORMANCE & PRODUCTS OF ICICI PRUDENTIAL LIFE
INSURANCE
Insurance Solutions for Individuals

10

ICICI Prudential Life Insurance Life Insurance offers a range of innovative, customercentric products that meet the needs of customers at every life stage. Its 19 products can
be enhanced with up to 6 riders, to create a customized solution for each policyholder.
Savings Solutions

SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of

protection.

CashPlus is a transparent, feature-packed savings plan that offers 3 levels of

protection as well as liquidity options.

Save''n''Protect is a traditional endowment savings plan that offers life

protection along with adequate returns.

CashBak is an anticipated endowment policy ideal for meeting milestone

expenses like a child''s marriage, expenses for a child''s higher education or
purchase of an asset.

Protection Solutions

LifeGuard is a protection plan, which offers life cover at very low cost. It is
available in 3 options - level term assurance, level term assurance with return of
premium and single premium.

Child Plans

SmartKid education plans provide guaranteed educational benefits to a child

along with life insurance cover for the parent who purchases the policy. The
policy is designed to provide money at important milestones in the child''s life.
SmartKid plans are also available in unit-linked form - both single premium and
regular premium.

Market-linked Solutions

11

LifeLink II is a single premium Market Linked Insurance Plan which combines

life insurance cover with the opportunity to stay invested in the stock market.

LifeTime II offers customers the flexibility and control to customize the policy to
meet the changing needs at different life stages. It offers 4 fund options Preserver, Protector, Balancer and Maximiser.

Premier Life is a limited premium paying plan that offers customers life
insurance cover till the age of 75.

Retirement Solutions

ForeverLife is a retirement product targeted at individuals in their thirties.

SecurePlus Pension is a flexible pension plan that allows one to select between 3
levels of cover.

Market-linked retirement products

LifeTime PensionII is a regular premium market-linked pension plan

LifeLink Pension II is a single premium market-linked pension plan.

ICICI Prudential Life Insurance also launched ''Salaam Zindagi'', a social sector group
insurance policy targeted at the economically underprivileged sections of the society.
Group Insurance Solutions
ICICI Prudential Life Insurance also offers Group Insurance Solutions for companies
seeking to enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru''s group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner. The plan
can also be customized to structure schemes that can provide benefits beyond the
statutory obligations.

12

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
contribution superannuation scheme to provide a retirement kitty for each member
of the group. Employees have the option of choosing from various annuity
options or opting for a partial commutation of the annuity at the time of
retirement.

ICICI Pru Group Term Plan: ICICI Pru''s flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform or
based on designation/rank or a multiple of salary. The benefit under the policy is
paid to the beneficiary nominated by the member on his/her death.

1. INTRODUCTION
The role of Human Resources is changing as fast as technology and the global
marketplace. Historically, the HR Department was viewed as administration, kept
personal files and other records, managed the hiring process, and provided other
administrative support to the business. Those times have changed.
The positive result of these changes is that HR professionals have the opportunity to play
a more strategic role in the business. The challenge for HR managers is to keep up to date
with the latest HR innovationstechnological, legal, and otherwise.
This special report will discuss the best practices in HR management for 2010in other
words, how HR managers can anticipate and address some of the most challenging HR
issues this year. This report will give you the information you need to know about these
current HR challenges and how to most effectively manage them in your workplace.

13

Human resources is an increasingly broadening term with which an organization, or

other human system describes the combination of traditionally administrative personnel
functions with acquisition and application of skills, knowledge and experience, Employee
Relations and resource planning at various levels. The field draws upon concepts
developed in Industrial/Organizational Psychology and System Theory. Human resources
has at least two related interpretations depending on context. The original usage derives
from political economy and economics, where it was traditionally called labor, one of
four factors of production although this perspective is changing as a function of new and
ongoing research into more strategic approaches at national levels. This first usage is
used more in terms of `human resources development', and can go beyond just
organizations to the level of nations. The more traditional usage within corporations and
businesses refers to the individuals within a firm or agency, and to the portion of the
organization that deals with hiring, firing, training, and other personnel issues, typically
referred to as `human resources management'. This article addresses both definitions.
The objective of human resources' development (the `s' is important in human resource`s'
in that it underscores indiduality/variability) is to foster human resourcefulness through
enlightened and cohesive policies in education, training, health and employment at all
levels, from corporate to national (Lawrence 2000) Human resource management's
objective, on the other hand, is to maximize the return on investment from the
organization's human capital and minimize financial risk. It is the responsibility of human
resource managers in a corporate context to conduct these activities in an effective, legal,
fair, and consistent manner.
Human resource management serves these key functions:
1. Recruitment & Selection
2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Redundancy

14

6. Industrial and Employee Relations

7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at work
10. Career development
Modern analysis emphasizes that human beings are not "commodities" or "resources",
but are creative and social beings in a productive enterprise. The 2000 revision of ISO
9001 in contrast requires to identify the processes, their sequence and interaction, and to
define and communicate responsibilities and authorities. In general, heavily unionized
nations such as France and Germany have adopted and encouraged such job descriptions
especially within trade unions. The International Labour Organization also in 2001
decided to revisit, and revise its 1975 Recommendation 150 on Human Resources
Development. One view of these trends is that a strong social consensus on political
economy and a good social welfare system facilitates labor mobility and tends to make
the entire economy more productive, as labor can develop skills and experience in
various ways, and move from one enterprise to another with little controversy or
difficulty in adapting. Another view is that governments should become more aware of
their national role in facilitating human resources development across all sectors.
An important controversy regarding labor mobility illustrates the broader philosophical
issue with usage of the phrase "human resources": governments of developing nations
often regard developed nations that encourage immigration or "guest workers" as
appropriating human capital that is rightfully part of the developing nation and required
to further its growth as a civilization. They argue that this appropriation is similar to
colonial commodity fiat wherein a colonizing European power would define an arbitrary
price for natural resources, extracting which diminished national natural capital.
The debate regarding "human resources" versus human capital thus in many ways echoes
the debate regarding natural resources versus natural capital. Over time the United
Nations have come to more generally support the developing nations' point of view, and

15

have requested significant offsetting "foreign aid" contributions so that a developing

nation losing human capital does not lose the capacity to continue to train new people in
trades, professions, and the arts.
An extreme version of this view is that historical inequities such as African slavery must
be compensated by current developed nations, which benefited from stolen "human
resources" as they were developing. This is an extremely controversial view, but it echoes
the general theme of converting human capital to "human resources" and thus greatly
diminishing its value to the host society, i.e. "Africa", as it is put to narrow imitative use
as "labor" in the using society.
In a series of reports of the UN Secretary-General to the General Assembly, a broad intersectoral approach to developing human resourcefulness has been outlined as a priority for
socio-economic development and particularly anti-poverty strategies. This calls for
strategic and integrated public policies, for example in education, health, and
employment sectors that promote occupational skills, knowledge and performance
enhancement (Lawrence, J.E.S. 2000).
In the very narrow context of corporate "human resources" management, there is a
contrasting pull to reflect and require workplace diversity that echoes the diversity of a
global customer base. Foreign language and culture skills, ingenuity, humor, and careful
listening, are examples of traits that such programs typically require. It would appear that
these evidence a general shift through the human capital point of view to an
acknowledgment that human beings do contribute much more to a productive enterprise
than "work": they bring their character, their ethics, their creativity, their social
connections, and in some cases even their pets and children, and alter the character of a
workplace. The term corporate culture is used to characterize such processes at the
organizational level.
The traditional but extremely narrow context of hiring, firing, and job description is
considered a 20th century anachronism. Most corporate organizations that compete in the
modern global economy have adopted a view of human capital that mirrors the modern
16

consensus as above. Some of these, in turn, deprecate the term "human resources" as
useless. Yet the term survives, and if related to `resourcefulness', has continued and
emerging relevance to public policy.
In general the abstractions of macro-economics treat it this way - as it characterizes no
mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific
human capital" as defined in macro-economics is the modern and correct definition of
"human resources" - and that this is inadequate to represent the contributions of "human
resources" in any modern theory of political economy.

HUMAN RESOURCE MANAGEMENT OF ICICI PRUDENTIAL

LIFE INSURANCE
1. MODE OF APPOINTMENT:
The appointment to various points shall be made in the following manner:BY DIRECT RECRUITMENT:a. The qualifications for direct recruitment shall be such as specified in the
staffing pattern.
b. The appointment shall be made according to the merit list drawn at the
time of selection.
c. All appointments except to class-IV services shall be made on the
recommendations of the selection Committee consisting of the
following:-

17

BY PROMOTION
Appointment by promotion to the next higher post in the respective discipline
in any category shall be made on the basis of Seniority-cum-Merit from
amongst the employees working in the lower category having atleast five
years service on the said post in the Life Insurance.
BY TRANSFER:
a. By transfer of a person on deputation from any Department. Of
Government/ ICICI Prudential Life Insurance or any sister Life Insurance.
b. By permanent transfer of services of surplus staff of ICICI Prudential Life
Insurance on thE terms & conditions as Prescribed by the ICICI Prudential LiFE
Insurance and adopted by the

Board from time to time subject to the approval of

Register.
c. By permanent transfer of an employee of other /ICICI Prudential Life Insurance on his
own request and upon the terms & inditions as prescribed by the ICICI Prudential Life
Insurance and adopted by the board from time to time subject to the approval of
Registrar.
The quta of appointment by direct recruitment and by promotion shall be in
the ratio of 40:60 respectively wherever applicable. The appointment under
Rule 1.3 shall be treated against the quota of direct recruitment.
a). The reservation for the members of Scheduled Castes, Scheduled Tribes
and Background classes in recruitments shall be in accordance with the
policy of the Govt. as adopted by the BOD.
b). The Life Insurance may fix Quato for promotion of class IV employees to
class III posta upto 10% of the promotion quota.

18

2. COMMENCEMENT OF SERVICE:
Services shall be deemed to have commenced from the working day on which
the employee reports for duty. If he reports for the duty in the afternoon the
services shall be deemed to have commenced from the following day.

3. ATTENDANCE AND LATE COMING:No employee shall enter or leave the premises of the Establishment accept by the gate or
gates meant for this purpose.
An employee who is off his duty or has resigned or has been discharged or
declared by the competentMedical Authority to be suffering from any
contagious or infectious disease, shall immediately leave the premoises of the
Etablished and shall not enter any part of it, except with the express
permission of the copetent authority.
All employees shall be liable to be searched both at the time of entry and exit
at the main entrance of the Establishment by an authorized person of the same
sex with due dignity.
If more than one shift is working, the employee shall be liable to be transferred
from one shift to another.

19

4. SENIORITY:
a). The seniority of an employee under these rules shall be determined in a
particular category of post on the basis of the length of service on that post
provided that in the case of employees appointment by the direct recruitment
which join within the period specified in the order of appointment or within
such period specified by direct recruitment who who join with in the period
specified in the order of appointment or within such period as may from time to
time be extended by the appointing authority, subject to a maximum of one
month from the data of order of appointment, the order of merit dertermined,
shall not be disturbed. Provided further that in the case a candidate is permitted
to join the service after the expiry of the said period of one month, his seniority
shall be determined from the data he joins the service.
b). A person recruited by promotion from the service of the Life Insurance shall be
senior to the person recruited otherwise if they join on the same data. Provided
that in case of promotion of two or more persons with effect from the same
data their inter-se-seniority shall be determined according to their seniority in
the cadre or postal from which they have been promoted.
c) Seniority of the employees of PDDC/ICICI PRUDENTIAL LIFE INSURANCE upon
the permanent transfer of
their services to the Life Insurance vis--vis other employees of Life Insurance, shall
be determined in the following manner:(1) An employee who was working in the higher pay scale at the time of
permanent transfer shall rank senior to the employee working in the
lower pay scale on that date.
(2) In case where the pay scale of the post held by an employee in the

20

PDDC or ICICI Prudential Life Insurance and of the post against which he has
been transferred
in Life Insurance identical, their seniority shall be determined on the basis
of length of services in the same pay scale.
5. POSTING AND TRANSFERES:
Managing Director shall be competent to post/ transfer any employee within the
establishment. He shall also be competent to transfer an employee against any equivalent
post or along with post.
As and when considered necessary in the internet of work and upon request from ICICI
Prudential Life Insurance/Sister Life Insurancethe services of an employee of ?Life
Insurance may be placed on national deputation without payment of deputation allowance
to any other Life Insurance/ ICICI Prudential Life Insurance for Period upto one year in
the first instance, which can be extended further.
6.DEPUTATION
Any employee of Life Insurancemay be sent on deputation to any State level cooperative Apex. Institution or Government Undertaking with his consent and
on receipt of writtenrequisation from the concerned Institution/Government
undertaking and with the concurrence of the ICICI Prudential Life Insurance on the
terms &
conditions mutually agreed upon by the leading and borrowing organizations
subject to prior approval of the Registration.
7. JOINING TIME:
Upon transfer of an employee from one station to another the joining time,
exclusive of journey day(s), shall be admissible as under:(i) upto distance of 4 kms

No joining time.

(ii) For distance between 41kms

one day

Two day

to 100 kms
(iii) Above 100kms

21

8.SECURITY
An employee of the Life Insurance Shall furnish such security, Fidelity guarantee,
agreement bond in favour of the Life Insurance as may be decided by board from
time to time.
9. PROVIDENT FUNDS:
Employees of the Life Insurance shall be entitled to the membership of the
Employees Provident Fund and other schemes under the employees Provident
Fund and Misc. Provisions Act 1952 irrespective of the pay drawn b him reemployed persons shall be governed by the terms of their appointment.
10. BONUS:
Employees of the Life Insurance shall b entitled to payment of the Bonus under
the payment of Bonus Act, 1965 as amended or re-enacted from time to time.
11. MEDICAL BENEFITS:
An employee, as and when covered under the PSI Act/Scheme, shall get
medical benefits as provided there in. An employee not covered under the PSI
Act/Scheme shall be entitled to medical benefits as may be decided by the
board from time to time with the concurrence of the ICICI Prudential Life Insurance.
12. ALLOWANCE:
Dearness Allowance, Additional Dearness Allowance, House Rent Allowance, City
Compensatory Allowance, Rural Allowance and Other Compensatory Allowance Shall be
Admissible to the Employees of the Life Insurance as per the Decision of the Board with
the concurrence of the ICICI Prudential Life Insurance and approval of the Registrar.
13. BENEFITS ADMISSIBLE IN THE EVENT OF DEATH OF AN
EMPLOYEE DURING SERVICE:

22

In

case

of

death

of

an

employee

whilr

in

the

service

of

Life Insurance his family members shall be entitled to the following benefits/ facilities at
the rates/scales and on the tearms & conditions as approved by the board from time to
time with the concurrence of ICICI Prudential Life Insurance.
a. Ex-gratia grant.
b. House Rent Allowance.
c. Encashment of P.leave.
d. Priority for employment of window/dependent of deceased employee.
e. Special Ex-gratia grant to the family members of an employee of the
Life Insurance Killed by terrorist action.

14. TRAINING:
Managing Director may wit the concurrence of Life Insurance employee to attend a
seminar/ workshop/training within the country or abroad in accordance with the
instructions of the Registrar, as may be issued from time to time.
15. LEAVE:
15.1 All the employees of Life Insurance shall be entitled to the following
kinds of leave:(i) PRVILEGE LEAVE (LEAVE WITH WAGES:
One day for every 18 days of service (for the purpose of calculation
of days of services,the period of Privilege Leave availed and leave
without wages/ absence shall not be counted).
(ii) CASUAL LEAVE:
12 days per annum.
(iii) SICK LEAVE:

23

(a) 14 days per annum to those mployees ho are not covered by the
ESI ct/Schemes.
(b) 7 days per annum to thise employees who are covered by the ESI
Act/Scheme.
16. RESIGNATION:
If a regular/permanent employee intends to leave the service of the
Life Insurance by tendering resignation, he shall have to give one
months notice in writing, otherwise, he shall have to deposit on e
months notice in writing, otherwise, he shall have to deposit one
months salary or salary for the period by which the notice falls short
of one month (for this purpose salary will include basic pay +all other
allowance admissible thereon, experts House Rent/Rural allowance,
Conveyance Allowance and Medical Allowance.)
24 hours notice shall be required for tendering resignation during
probation period.
The resignation tendered by the employee may be accepted by the a
appointing authority.
17. SUPERANNUATION / RETIREMENT
Every employee of Life Insurance shall be superannuated on the afternoon of the last day
of the month in which he attains the age of 58 years.
Not with standing anything contained in Rule 17.1 above, an employee may be permitted
at his own request to retire room the service of the Life Insurance on attaining the age of
50 years or after 20 years of service at any time by the appointing authority provided
three months notice.

24

An ything contained in rule 17.1 and 17.2 above , the appointing

authority shall, if it is of the opinion after reviewing the entire service record of an
employee that he is not fit to be retained in the service and that it is in the interest of the
Life Insurance.
18. Major misconducts:
Without prejudice to the generality of the term, misconduct, the following
acts of communion or omission shall, interlaid, constitute specific acts of
Major Misconduct on the part of the employee:
1. Breach or habitual breach of any standing instructions or rules regulations,
conditions of the appointment letter or orders issued by the establishment
from time to time.
2. Acting in any manner prejudicial to the inertest or reputation of the
establishment, disregard of any operation & maintenance.

.
Human resource policies are systems of codified decisions, established by an
organization, to support administrative personnel functions, performance management,
employee relations and resource planning.
Each company has a different set of circumstances, and so develops an individual set of
human resource policies.
Purposes
HR policies allow an organization to be clear with employees on:

The nature of the organization

What they should expect from the company

25

What the company expects of them

How policies and procedures work at your company

What is acceptable and unacceptable behaviour

The consequences of unacceptable behaviour

The establishment of policies can help an organization demonstrate, both internally and
externally, that it meets requirements for diversity, ethics and training as well as its
commitments in relation to regulation and corporate governance. For example, in order to
dismiss an employee in accordance with employment law requirements, amongst other
considerations, it will normally be necessary to meet provisions within employment
contracts and collective bargaining agreements. The establishment of an HR Policy which
sets out obligations, standards of behaviour and document displinary procedures, is now
the standard approach to meeting these obligations.
Developing the HR Policies
HR policies provide an organization with a mechanism to manage risk by staying up to
date with current trends in employment standards and legislation.
HR POLICIES AND PROCEDURES
This factsheet gives introductory guidance. It:

highlights the main policies and procedures that organizations need to consider

looks at formatting a policy and sources of information

Introducing HR policies and procedures gives organizations the opportunity to offer a fair
and consistent approach to managing their staff. For more on why HR policies are
introduced, see our factsheet HR policies and procedures: why introduce them?
11 policy or practice areas those are crucial to effective people management and
development:

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recruitment and selection

training and learning/development

career opportunities

communication

employee involvement

team working

performance appraisal

pay satisfaction

job security

job challenge/job autonomy

Work-life balance.

Not all policies and procedures will be relevant to all organizations, and some policies are
required by law while others are to promote good practice.
The following paragraphs indicate the range of possible policies which apply during the
employment life cycle - more detailed information and the legal requirements on each of
these areas is included.
Beginning employment
Recruitment and selection
Successful recruitment depends on finding people with the necessary skills, expertise and
qualifications to deliver organizational objectives and who have the ability to make a
positive contribution to the values and aims of the organization. A diverse workforce that
reflects customer groups in the local community should be encouraged.
Elements to consider when forming a recruitment policy:

job profile/person specification

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dealing with job applications - whether to use hard copy and/or online forms;
confidentiality

recruitment advertising - discrimination pitfalls

selection techniques - training and validation

interviews

references

medical examinations

asylum and immigration

documentation

job analysis

equal opportunities monitoring

return on investment (ROI)/cost.

There's more information on the website via our Recruitment and talent management
subject pages.
Induction
Designing an appropriate and cost-effective induction programme is a complex task. The
programme has to find a balance between providing all the information new employees
need without overwhelming or diverting them from integrating into the team.
The length and nature of the induction process will depend on the complexity of the job
and the background of the new employee.
Elements of an induction policy:

organization information - background and structure; departments; products and

services; physical layout

terms and conditions - hours of work; holidays, travel policy

financial - pay; bonuses; overtime; pensions

culture and values - communication

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rules and procedures - data protection; email and Internet usage; equal
opportunities; use of mobile phones

health and safety - first aid; smoking; environmental aspects

training

trade unions

welfare, benefits and facilities - alcohol and drugs; employee assistance

programmes.

Organizations may find it useful to have checklists that cover the pre-employment period,
the first day, the first week, the first month and the end of the probationary period (if
applicable) to make sure everything has been explained.
There's more information on the website via our Induction subject page.
During employment
Employee relations look at the partnership between employee and employer, covering
areas such as communication, grievances and discipline. It is equally important in both
union and non-union situations. While employment law is closely linked with managing
employee relations, a successful organization won't just base its actions on compliance
with the law - exploring the concept of the psychological contract, based on trust between
employee and employer, may also be useful.
Policies and procedures that organizations may introduce include:

health and safety

disciplinary and grievance

maternity and paternity leave and pay

redundancy

absence

whistle blowing

performance management

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recognition agreements (union and other)

time off and leave for trade union activities, holidays, secondment, volunteering,
eldercare, childcare, bereavement

communication and involvement, including employee voice

harassment and bullying.

There's more information on many of these issues on the website via our HR
practice, Health, safety and wellbeing and Employment law subject pages.
Managing diversity
Diversity runs through all aspects of an organizations policies. Managing and valuing
diversity is central to good people management and makes good business sense, so it also
makes sense for diversity to be integral within all policies. A diversity policy sets out the
organisation's vision and values in relation to diversity. It will often include the remit of
polices, the processes for taking action, who is responsible and the training available.
The basic premise is that people should be valued as individuals and for reasons related
to business interests, as well as for moral and social reasons. A more diverse workforce is
likely to offer a wider range of skills and experiences and greater flexibility to meet
business challenges.

Elements of a diversity policy:

gender/sex equality

race equality

sexual orientation

religion

age

appearance/accent

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formats and accessibility of policies and procedures.

Learning, training and development

Roles and responsibilities are constantly changing, so employees will need to continually
renew and refresh their skills and competences through training. This can happen in the
course of normal working (on-the-job training) or away from the workplace (off-the-job
training).
Some training is mandatory to comply with legal requirements, such as health and safety
or finance.
Elements of a learning and development policy:

the organizations vision for learning and development

opportunities available, including secondment, career breaks, courses, coaching,

mentoring

who to ask to get authorization for training

support given for learning opportunities

development reviews and personal development plans

payment of professional fees

training available for 'peripheral' workers ie contractors, temporary staff

record-keeping and administration

continuing professional development and personal development allowances (if

these are not part of the employee benefits statement)

follow-up actions and transfer of learning to work.

Reward
Effective reward practices and procedures can underpin activities in recruitment,
retention, turnover and engagement. Effective implementation and communication are
essential for initiatives to succeed.

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Reward policies should be clear and simple so that employees know what's expected of
them and what they can expect to receive in return.
Elements of a reward policy:

the organizations vision for reward, including market rates, extra responsibility
allowances

how jobs are graded or evaluated

pensions/additional voluntary contributions

permanent health insurance/critical illness cover

bonuses and incentive pay

benefits and non-cash recognition

company cars

sick pay

pay reviews

equal pay.

Complementary policies
Other policies that organizations may want to consider in relation to employment include:

a mission or values statement

parental leave

work-life balance/family-friendly work practices

disability

well-being and 'wellness'

green/sustainable development

the employment of relatives/friends

conflict of interest, including personal relationships

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second jobs

confidentiality

bad weather/climate conditions

relocation

suggestion schemes.

Ending employment
There are many reasons why employment ceases, from voluntary resignation to dismissal
or redundancy.
Areas to consider for ending employment include:

dismissal

redundancy

voluntary resignation

retirement - retirement age; pre-retirement courses; phased retirement options

end of a short-term contract

end of a probationary period

death in service.

Exit surveys can record information about why employees say they are leaving. But the
data is not always reliable. Another way to discover the reasons why is through opinion
surveys during employment.
Formatting a policy
Policies should be written in plain English, so that they are user-friendly and easily
understood by all employees.
The culture of the organization and the complexity of the policies will dictate the format.
Options include:

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separate manager and employee manuals

all policies available on an intranet

key policies on notice boards.

Policies should also indicate who to go to with queries about the content and who is
responsible for updating and reviewing them.
Sourcing information
When developing policies and procedures there are many sources of information
available. The following list gives an indication of further help but is not an exhaustive
list.

SUGGESTIONS
As in the competitive world where the need for every organization to prove itself the best
and make an outstanding and remarkable progress is the need, no fact could be left
ignored. Every organization must know the shortcomings and must try to go for building
up the shortcomings. An ethical practice in any organization could only be achieved if the
organization works for the well being of its employees. Every organization must possess
a basic structure and the organization must be capable enough to reward its outstanding
performers and must appreciate the initiative works.
According to the survey been conducted with various HR heads of various organizations
here are few suggestions from their side:

INDUCTION PRACTICES
Induction is must in every organization for all level of employees to make them well
known of the industry they are working in.
The best ways to perform induction may be through
o Lectures
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o Power point presentations prepared explaining companys policies.

o Through SOPs (Standard operating procedures)
o Manuals
o Diaries
o But the most adopted one is through personal induction.
The induction program must follow a proper feed back from employees been put
into the program which is again an ethical practice and is achieved by
o induction scheduling
o opinions from supervisors
o feed back forms.

BEHAVIORAL TRAINING
Behavioral training is boon for any organization.
The organization could provide on the job training, which is quite common and
most adopted. The organization may also go for outdoor training
Job rotation could be preferred which could make the employee skilled in overall
working of an organization.
The organization may provide a basic training for FIRST AID & SAFETY OR
FIRE SAFETY TRAINING.
The organization may have tie ups with the training organizations which could
organize courses and the organization may take up the best course as per
requirements of their staff.

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 A proper feedback must be taken to grasp the extent the employees have versed
themselves with knowledge.
Proper Feed-back could be taken through
o evaluation
o questionnaire
o feed back forms
o submission of report through trainee
o feed back through trainers

MOTIVATIONAL TOOLS
Motivating for work is inseparable to continue productivity. But work when itself serves
as motivation then progress is inevitable. The organization must take great care to
motivate its employees through various methods.
Promotion may be one of the best motivational factors. Promotional basis could
be
o work performance
o qualification
o performance evaluation
o skill enhancements
o initiative steps taken .

organization may also provide fringe benefits such as

o leave traveling allowance
o medical
o free transportation

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o ESI (Employee State Insurance)

o Furnishing scheme
o House lease
o hospitalization
WELFARE ACTIVITIES
The organization may adopt welfare policies such as
o Transportation facility
o Canteen facility with breakfast, lunch and dinner facility along with
refreshments.
o Canteen could be free, subsidized ,paid. But the most preferred one is
through subsidized mode.
o The organization must also possess first aid facilities for its staff. A wellversed rehabilitation of injured staff and an on duty doctor or an
ambulance should be always provided.
o The organization must also possess a grievance handling committee
despite a union to take an action for their problems. It could be a three tier
of four-tier grievance committee.

REWARD AND RECOGNITION SCHEME

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Rewarding the best work not only provide the candidate with appreciation but also
provide enthusiasm to do better. A competitive spirit is also developed to perform the
best.

Some of the practices of rewarding the employees practiced in organizations are

o Award after completion of 10 years of service
o Companys well furnished housing & hotels for officers
o Paid vacations to
o

foreign countries

o Yearly reward scheme

o Overall equipment efficiency reward
o Quality man of the year award
o Best man of the year
o Best kaizen award
o Increments
o Promotions
o Incentives
o Monetary rewards
o Public appreciation.

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RECOMMENDATIONS

For all the programs the organization must follow feed back method to understand
the effectiveness of any practice in a better way.

Holistic views of induction should out show both positive and negative aspects of the
organization. Which ultimately let the employee know about both the phases of the
policies adopted by the organization.

Practice of providing a brief presentation of the company and a booklet for rules and
regulations of company must be maintained so that the employee could go through it
when ever required.

Individual should concentrate more while training. When an organization invest on

training of an employee, the purpose of training serves the mutual benefit of both
organization and the employee. Thus, the employee should be more oriented towards
drawing as much benefits as he can. Employees are supposed to understand their role
for particular training program.

Company must maintain training manuals or training charts and training report
submitted by the trainee. This, practice not only keeps a maintained record of the
programs been conducted but also keep the employee known of the knowledge gained
by him which could later be utilized.

A pre- evaluation and post evaluation practice should be followed to understand the
success of training and the training could be then effectively used to fill gaps later.

Continuous training module should be conducted, personality development training

should be provided.

To motivate the employees

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Performance awards could be given every year.

Incentives could be paid.

Salary saving schemes could be provided.

Extra activities such as games and sports, community meetings, recreational

activities, picnics, tours and outings should be planned to improve the interpersonal
relationships.

External welfare activities could also be taken up by the organization such as

o Blood donation camps
o Safety week
o Free eye camps
o Free books for children
o Poster and quotes competition could be organized.

Devotion, belongingness and good team member spirit should be rewarded.

Employees should be encouraged for group efforts and team work.

To avoid worker union for better employee welfare and give suitable welfare
activities from time to time to the employees in house work committee should be
developed to handle the grievance.

Employees participation is key issue. Thus, suggestions should always be invited and
maximum efforts should be put up to implement the suggestions.

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CONCLUSION
At last I want to say that while recruitment and selection identify acceptable candidate,
the process still continue with induction program for the new employee, we can
further fine tune the fit between the candidates qualities and the organizations
desire. Then to make the employees more skilled behavioral training may be
provided.
It makes the positive impact of any organization, but it needs a lot of money, time,
attention and guidance. It is just like only taking, not giving or taking the starting
benefits and when the time comes for returning back you just quit the job. So it is
not always fruitful.
The employee motivation is needed to be built up through constant attempts of the
organization. The organization may adopt various methods for motivating the employees.
It may be by providing recreational activities such as tours, picnics, family outings,
annual days, sport days, functions, and parties. The organization must consider its
employees as its family members and must provide some profit sharing policy such as
ESOPs , bonus, and shares. the organization may provide fringe benefits.
Welfare activities to be undertaken by the organization may include various facilities such
as uniform for the employees for whom HR department is responsible for its maintenance
and providing it.
Last but not the least rewards are the main motivational activity, which may be monetary
and non-monetary rewards.
At last to conclude, I would like to say that with enthusiasm that it was a great experience
working with many experienced people working at senior positions. Interacting and
spending time with the people rich in learning experience. The people were very
cooperative and helpful and encouraging. It is an experience to be cherished for a long
time.
It was great of learning so much about HR practices and implementing them. Im really
thankful for all the senior members who explain me the working strategies and
methodologies of organizations.
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REFERENCES

PERSONNEL / HUMAN RESOURCE MANAGEMENT

o DECENZO & ROBBINS
HUMAN RESOURCE MANAGEMENT
o GARY DESSLER
PERSONNEL/ HUMAN RESOURCE MANAGEMENT
o ROBERT L MATHIS
o JOHN H. JACKSON
HUMAN RESOURCE MANAGEMENT
o DEEPAK
BHATTACHARYA
http://en.wikipedia.org/wiki/Human_resource_policies

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