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MINOR PROJECT REPORT

On

THE STUDY OF TATA AIG AND THE CANDIDATE


SELECTION PROCESS INVOVLED

Submitted by:- Guided by:-


Kritika Verma Mr. Lokesh Jindal
BBA (B&I)-3rd Semester Lecturer,
Roll No. 0131491806 Department of
Business Administration.

Submitted to:-

An ISO 9001:2000 Certified Institute


Recognised by UGC u/s 2(f)
(Affiliated to Guru Gobind Singh Indraprastha University)
C-4, Janak Puri, New Delhi-110058
CERTIFICATE

This is to certify that the project entitled THE STUDY OF TATA AIG AND THE
CANDIDATE SELECTION PROCESS INVOVLED submitted to MAHARAJA
SURAJMAL INSTITUTE (Guru Gobind Singh Indraprastha University) in partial
fulfillment for BBA Course has been carried out under my supervision.

Project Guide:

Mr. Lokesh Jindal

Lecturer, Department of Business Administration

Maharaja Surajmal Institute,

Janakpuri, New Delhi-110058

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Acknowledgement

I would like to thank and dedicate this project to my project guide Mr. Lokesh Jindal ,
for giving me his unwavering support with which I was able to complete the project. It
was a nice experience of learning and I gained a lot of knowledge by working under his
kind supervision.

I would like to give a special acknowledgement and thanks to all those, without whom
this project could not have been possible.

Kritika Verma

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Table of contents

Chapters Topic Page no.

1. Introduction 5-10

1.1 Preface 6
1.2 Objectives of the study 7
1.3 Research Methodology 8
1.4 Limitations of the study 10

2 Profile of the organisation 11

3 Analysis 36

4 Conclusions 39

Bibliography 41

Annexures 43

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INTRODUCTION

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PREFACE

Everyone these days needs insurance. So the whole country has become the market place
for insurance companies. Private Indian companies and foreign ones are so numerous at
present that there is a cut-throat competition environment. And both looking for ways to
increase their clientele and services to increase their business.

Tata AIG Life Insurance Company Ltd. now provides new value-added services and
ways in order to make the sphere of their clientele wider and wider. The company, in
order to survive the growing competition is in a unique position to leverage its expertise
and scale. The company is seeking new channels for its services and opportunities to
reach to more and more patrons.

This project was undertaken in order to select persons from various fields. To achieve
this objective, questionnaires were used as a powerful tool and interviews and discussions
were conducted.

A lot of market surveys were undertaken for person to person contacts and the method of
telecalling was also used which required a lot of time & energy besides persuasive skills.

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OBJECTIVES OF THE RESEARCH

The primary objective would be-:

The main purpose of the project is to study the working of TATA AIG LIFE
INSURANCE and to design out candidate selection process for insurance advisor
program.

The Other objectives would be: -

Analysis of positive and negative things about the various means used to carry out
the recruitment process.
To see the availability of people and their willingness to indulge themselves in a
part time career opportunity.
Finally to conclude the findings and suggest the necessary corrective measures
and recommendations regarding the future growth prospects.

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RESEARCH METHODOLOGY

TYPES OF DATA

Two types of data: -


PRIMARY DATA
SECONDARY DATA

PRIMARY DATA: -
Primary data is the kind of data, which is collected by the investigator himself for the
purpose of the specific study. The data such collected is original in character. The
advantage of this method of collections authentic. A set of Questions was put together
in the form of two questionnaires . The method of sampling was the random
convenient sampling method.

SECONDARY DATA: -
When an investigator uses the data that has been already collected by others is called
secondary data. The secondary data could be collected from journals, Reports,
internet and various publications. The advantages of the secondary data can be it is
economical, both in terms of money and time spent. The researcher of the report also
did the same and collected secondary data from various Internet sites like
google.com, yellowpages.com and many more. The researcher of the report also
visited various libraries for collection of the introduction part.

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DATA COLLECTION

Data collected from various places such as Connaught place, Bani park, M.I.
road etc.
Sample size, which has been covered, is 50.
Other information related to project has been taken from company website.

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LIMITATIONS OF THE STUDY

The study results can be better applied to comparable cities and situations.

As the sample size is small, the opinions and beliefs of respondents may not
represent true universe.

Personal biases of respondents may also act as hindrance towards clear picture of
study.

The study was taken up in one city only and the responses may not be applicable
to other cities or states.

While an attempt has been made to explore the scope, the competition and
customers, developing the marketing plan for the company would require a great
deal more expertise and experience.

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PROFILE OF THE ORGANISATION

INTRODUCTION ON TATA AIG

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THE TATA GROUP

The Tata Group, easily India's most recognized business group, was founded by
Jamsetji Tata and began with a textile mill in central India in the 1870s. From there, it has
evolved into a truly diversified conglomerate spanning, among other sectors,
Engineering, Energy, Chemicals, Consumer Products, and Communications & IT. The
Tata Group is one of Indias best-known industrial groups with an estimated turnover of
around US $14.25 billion (approximately 26% of Indias GDP). With more than 220,000
employees across 91 major companies, it is also Indias largest employer in the private
sector.

The Tata Group pioneered several firsts in Indian industry firsts, including: India's
first private sector steel mill, first private sector power utility, first luxury hotel chain and
first international airline, amongst others. Recently, the Tata Group's pioneering spirit has
been showcased by companies such as Tata Consultancy Services (TCS), Asia's largest
software and services company, and Tata Motors, the first car maker in a developing
country to design and produce a car from the ground up.

The Tata Group stable of brands also includes many national and some
internationally renowned product and service brands, including:

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Tata Motors (multi-utility cars)

Tata Motors, India's largest automobile company, manufactures


two kinds of multi-utility vehicles: the well-appointed Tata Safari and practical Tata
Sumo.

Tata Motors (Passenger Cars)

Tata Motors has a pioneering presence in India's


automobile industry, best illustrated by the path-breaking creation of the Indica, a
hatchback that was the country's first indigenously designed and manufactured car. Since
then the company has expanded its passenger cars portfolio, which now also boasts the
Indigo, a sedan, and the Indigo Marina, a station wagon.

The Taj Group of Hotels (Luxury, Business and Leisure)

Jamsetji Nusserwanji Tata, the founder of the Tata Group, incorporated


the Indian Hotels Company on April 1, 1902, for the ownership and operation of the
renowned Taj Mahal Palace and Tower, Mumbai. Indian Hotels and its subsidiaries are

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collectively known as Taj Hotels Resorts and Palaces and, together, form the largest hotel
chain in India

Tata Tea & Tetley

The Tata Group runs the world's


second-largest branded tea operation. Tata Tea and Tata Tetley are the two companies that
power the group's leadership drive in the worldwide tea industry.

Tata Salt

Besides tea and coffee, Tata Group enterprises are also involved in the
production of food additives and spices. Tata Salt is the No 1 food brand among India's
most trusted brands. India's most preferred salt is one of the purest available in the
country. Moreover, Tata Salt contains the right amount of iodine, vital for physical and
mental growth and development.

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Titan

Titan Industries is India's leading manufacturer of watches and the


world's sixth largest manufacturer brand of watches. The company makes about 7 million
watches and clocks every year and has a customer base of some 60 million. It enjoys over
50 per cent market share in India's organized watch segment.

Tanishq

Tanishq, a division of Titan Industries, is India's largest jewellery


brand. It has 74 boutiques in 55 cities across the country

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Westside (Garment Retail Outlet)

Trent, the Tata Company that owns and operates the Westside chain of
lifestyle stores, retails garments and household accessories. Set up in 1998, Westside is
among the fastest-growing retail chains in India. It has a team of dedicated
merchandisers, store staff and in-house designers, and its store portfolio comprises
clothes and accompaniments for men, women and children. The chain also sells
household accessories, cosmetics and perfumes. The other products and brands are: Tata
Steelium, Tata Shaktee, Tata Tiscon, Tata Bearings and Voltas.

By combining ethical values with business acumen, globalization with national


interests and core businesses with emerging ones, the Tata Group aims to be the largest
and most respected global brand from India whilst fulfilling its long-standing
commitment to improving the quality of life of its stakeholders.

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THE AIG GROUP

American International Group, Inc. is the world's leading international insurance


and financial services organization, with operations in more than 130 countries and
jurisdictions. AIG member companies serve commercial, institutional and individual
customers through the most extensive worldwide property-casualty and life insurance
networks of any insurer. In the United States, AIG companies are the largest underwriters
of commercial and industrial insurance and AIG American General is a top-ranked
insurer. AIG's global businesses also include retirement services, financial services, and
asset management.

AIG's financial services businesses include aircraft leasing, financial products,


trading and market making. American General Finance leads AIGs growing global
consumer finance business in the United States. AIG also has one of the largest U.S.
retirement savings businesses through AIG SunAmerica and AIG VALIC, and is a leader
in asset management for the individual and institutional markets, with specialized
investment management capabilities in equities, fixed income, alternative investments
and real estate.

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TATA AIG

Tata AIG Life Insurance Company Ltd. is a joint venture of the Tata Group and
American International Group, Inc. (AIG). The Tata Group holds 74 per cent stake in the
two insurance ventures while AIG holds the balance 26 per cent stake. Tata AIG General
Insurance Company, which started its operations in India on January 22, 2001, offers the
complete range of insurance for automobile, home, personal accident, travel, energy,
marine, property and casualty, as well as several specialized financial lines.

Tata AIG Life Insurance Company Ltd. is India's leading insurance company
providing both Life and General Insurance. It represents the trust and integrity of TATA
group combined with the international expertise and financial strength of AIG, Inc.
For individuals: motor, health, and accident and health n travel.
For Corporate: accident n health, travel, energy, property, marine n contingency.

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INSURANCE REGULATORY DEVELOPMENT
AUTHORITY (IRDA)

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ABOUT IRDA

IRDA is a government body that protects the interests of the policyholders, to


regulate, promote and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto. The way RBI controls all the banks, in the
same manner IRDA takes control of all the insurance companies. It includes
registrations, licensing and laying down regulations for proper conduct of business.

IRDA NORMS FOR TRAINING AS A FINANCIAL ADVISOR

A financial advisor must possess a license issued by IRDA.


The qualifications necessary before a license can be given are that the person
must:

Be at least 18 years old

Have passed at least the 12th standard or equivalent examination

Have undergone practical training for at least 100 hrs in life or general insurance
business

Have passed the pre-recruitment examination conducted by the IRDA.

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DOCUMENTS REQUIRED

On the time of the registration, the candidate has to bring along a list of documents.
These are:

6 photographs
Identification proof

Date of birth proof

Highest Education proof

Residence proof

Rs. 1000/- Demand Draft favoring Tata AIG Life Insurance company Ltd.
Payable at New Delhi.

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PRODUCT PROFILE OF TATA AIG

PRODUCTS

Tata AIG Life Insurance Company specializes in helping their customer in fulfilling their
future financial goals and builds an extra security cover for their family and loved ones.
The various products offered are:

Invest assure- Unit Linked Insurance Plan: This highly flexible plan gives you
full life cover AND high returns AND the flexibility of deciding the length of your life
cover term, the amount of cover you receive & where the rest of your premium is
invested.

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Mahalife: This exceptional policy ensures that you have a steady income and
insurance coverage for life! Premiums are payable only for the first 12 years. You can
even use this to create a steady stream of post retirement income.

Educare: This first of its kind juvenile endowment policy is geared toward
funding your childs education. You can choose between Assure Educare 18 and Assure
Educare 21, depending on your childs needs.

Shubh Life: This plan provides you 100% life insurance protection and high
returns on your investment but the premiums you pay are among the lowest of any
similar endowment policy.

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Money Saver Plan : This savings plan provides you with cash payments in the
form of survival benefits at regular intervals to fund your childs needs at critical
milestones or support your financial obligations. You get the dual benefits of life
insurance coverage plus the flexibility of periodic payments.

Nirvana & Nirvana Plus: This is Indias first and only pension policy with a
guaranteed addition of 10 percent of sum assured every 5 years. You can choose from
three levels of cover, and also decide the age you want to retire.

Starkid: An exceptional endowment policy that ensures you can afford to give
your child the very best for his career & marriage.

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Health Protector: The average cost for a major surgery or treatment in hospital is
between three to five lakh. Health Protector is the first product of its kind in India that
offers you protection in case ANYONE in your family has an accident or falls ill.

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MARKET SHARE OF TATA AIG

TATA AIG Life Insurance Company has said that it aimed to be the number-two private
player in the life insurance industry with a market share of 20 per cent by 2007.

Mr. Trevor Bull, Managing Director, Tata AIG, estimated that by 2007, private players
would have about 40 per cent of the total life insurance market; currently dominated by
the Life Insurance Corporation. Tata AIG Life Insurance Co. is expecting a 85-90%
growth in its total premium income in 06-07.

Tata AIG has 85 offices in cities, and would be opening 20-25 new offices during 06-07
to cater to a larger customer base. Profit from General Insurance for 05-06 is estimated to
be 13.6 crore.

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JOB DESCRIPTION

The objective is to design out candidate selection process for insurance advisor
program.

Tata AIG is looking for insurance advisors to give advice and sell insurance. And it pays
as much as one wants it to. Tata AIG Life, a company that combines the trust and
integrity of the Tata Group with the expertise & financial strength of American
International Group, Inc.

The person receives World-Class training while the marketing & management support
ensures their success. So, our main aim is to look out for eligible candidates who have the
time to devote and desire to earn money and then recruit and select them as financial
advisors.

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DETAILED JOB PROFILE

The project required me to approach people and make them aware of the part-time
business opportunity that Tata AIG is offering, wherein, they will be recruited and
selected as Financial Advisors. Here, not only will they earn a lot, but the growth
prospects would also be open to them. For this, we collected data through various means
and some of it was provided by the company as well. We were supposed to make calls to
people, undertaking surveys, etc., make them aware of this opportunity and arranging
appointments with our manager. After this, they were interviewed and later on selected, if
eligible, for the offered work.

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Our project in Tata AIG involved the following tasks:

Recruitment: ways, sources and means


Selection Criteria

Selection Procedure

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THE SELECTION PROCESS

SELECTION PROCESS

Selection is the process of picking individuals (out of the pool of job applicants) with
requisite qualifications and competence to fill jobs in the organization. It can also be
defined as: It is the process of differentiating between applicants in order to identify
(and hire) those with a greater likelihood of success in a job.

Here, at Tata AIG, we have followed a series of processes in selection of a Financial


Advisor.

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CRITERIA FOR SELECTION

Stability in Delhi: The person should be a stable Delhi resident. This ensures his
having a good number of contacts & an amount of trust that people build over a
person.
Natural Market: This also is a very important factor. The person who is to be
selected as an insurance advisor, if he has a natural market he can sell insurances
to them also.

Time: The candidate should have enough time and proper focus for the training as
well as for the work.

Desire to earn money: This is a factor that a candidate must certainly possess. It
would motivate him to give out more and more business & if he will have a desire
to earn money he would be more devoted toward his work.

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SELECTION PROCEDURE

PROCEDURE

At Tata AIG, following steps were followed by us in the selection of a financial


advisor:

Candidates profile sheet: As soon as the candidate comes, he is made to feel


comfortable and then is given a candidate registration form to fill. The candidate
is supposed to fill this form to provide us with his basic personal information. For
e.g. :
Candidates address.

Since how long hes been residing in Delhi

His qualification

His experience, if worked earlier, etc.

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Preliminary interview: This is done to eliminate the candidates who are not
found to be appropriate for the job.

Career Opportunity Path (COP): A seminar is held, to give a brief detail about
the BA Model and the work of a Financial Advisor. He is also notified about all
the details of the benefits he would get out of his job. This seminar is followed by
some tea and snacks for the invitees.

Interview: Once the capable candidates are selected amongst all, they are called
for a One- to-one interview with the Manager. This is carried on because :

It helps in obtaining additional information from applicant.

It facilitates giving general information to applicant such as, company policies,


job, etc., &

It helps build Companys image among the applicants.

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References: Candidate is also asked for references. Previous employers, known
public figures, university professors, neighbors or friends can act as references.
These are required so that, once we register the selected candidate with us, we
would need to confirm his information provided by him.

Selection Decision: The person is analyzed by the Manager on the basis of the
above stages and is then finally selected for the job.

Registration: This is the final step. When a candidate fulfills all the above
criteria, the registration is done. The candidate is asked to fill a NAAF, New
Agent Application Form, and submit his required documents.

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ANALYSIS

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SWOT ANALYSIS OF TATA AIG

SWOT ANALYSIS

A SWOT (Strengths, Weaknesses, Opportunities and Threats) is a tool used to


provide a general or details snapshot of a companys health. An effective SWOT
analysis will help determine in which areas a company is succeeding, allowing it
allocate resources in such a way as to maintain any dominant positions it may
have.

Strengths:

Tata AIG has the strong brand name of TATA & AIG with it.
It offers a good career path for advisors. ( Advisor to Business Associate to a
Senior Business Associate & finally to a Managerial Business Associate)

Tata AIG has a good reputation among customers.

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It gives Ist year highest commission.

Tata AIG has a strong training support

Tata AIG is the only Insurance Company in the world rated AAA by SWP.

It is the only company that provides whole infrastructure to new advisors.

It ensures a long-term growth for the insurance advisors.

WEAKNESS:

Tata AIG is conservative in the context of advertising.


It is an underwritten driven company.

OPPORTUNITIES:

Tata AIG provides protection against financial loss & helps in future planning.
They also provide additional rewards for advisors.

THREATS:

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Because of the mushrooming of the private insurance companies, there is
increased competition.
The training period of 18 working days/100 hrs and the fee of 1000/-, also stands
as a hindrance for people who are interested to become insurance advisors

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CONCLUSIONS

CONCLUSION

With introduction of the foreign sector in the field of Insurance, it has become
extremely competitive. Insurance involves tiring field work and tele contacting, the
prospective customers to persuade them and convince them about future benefits of the
insurance scheme.

The Tata AIG, a multinational insurance concern, is busy in recruiting and selecting
insurance advisors tactfully, skillfully and with expertise. In view of the competition,
especially in the private sector, the Tata AIG, makes efficient sales team effort with

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expertise and acumen to create excellent customer relationship management with great
online support and personal contacts.

The Tata AIG is one of the most prominent insurance companies with international
expertise and experience.

BIBLIOGRAPHY

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bibiliography

The various books that I had consulted for the successful completion of my
summer training project are listed below. These are:

K. Aswathappa, Human Resource and Personnel Management, Tata McGraw-


Hill Publishing Company Limited, New Delhi

Shawn A Smith, Rebecca Mazin - Business & Economics

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Philip Kotler, Marketing Management, Prentice-Hall of India Pvt. Ltd., New
Delhi

We visited the following sites:

www.tata.com

www.tata-aig/life.com

www.aig.com

ANNEXURE

QUESTIONNAIRES

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Questionnaire 1: Market Research survey

Questionnaire 2: Market Survey

MARKET RESEARCH SURVEY

DEAR SIR/MADAM
We a r e t h e s t u d e n t s f r o m N e w D e l h i I n s t . o f M a n a g e m e n t . We a r e
conducting a market survey to understand the job and business
market and the satisfaction with the same. Kindly cooperate and
give us the information.

Q 1 . W h a t i s yo u r c u r r e n t s o u r c e o f e a r n i n g ?
(a) Business

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(b) .Service..Designation
(c) Student.Qualification

Q 2 . H o w l o n g yo u a r e i n v o l v e d i n t h i s j o b / b u s i n e s s ?

Q 3 . Ar e y o u s a t i s f i e d w i t h t h e e a r n i n g s ?
(a) Yes . .
(b) No..

Q 4 . Wou l d yo u l i k e t o i n v o l v e yo u r s e l f i n s o m e o t h e r j o b /
Business as a part time work?
(a) Yes
(b) No

Q5. Which is the best and fastest growing Industry today to join as
part time?
(a)Insurance (b) Automobile

(c)Banking & Finance (d) Education

(e)Others.

MARKET SURVEY

Dear Sir / Madam

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We are the students of New Delhi Institute of Management, We are doing a survey on
Impact of METRO Services at CP are. Kindly spare a few minutes to help us taking your
feedback.

1. Do you feel that Metro services have increased the Footfall / visits in your show
room?
Yes No Dont Know / cant say

2. Do you feel there is an increase in Sales volume due to Metro Services?


Yes No Dont Know / cantsay

3. Do you feel that CP is still better shopping area than any other shopping Mall in
Delhi/ NCR?
Yes No Dont Know / cant
say

4. What do you suggest to improve the quality of shopping experience at CP?





Basic Details:
Name of Owner / Manager: ..
Outlet Name- .
Contact No - Mobile -

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THANK YOU!!

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