PROJECT ON INSURANCE

PREPARED BY DEBALINA
BANERJEE
STUDENT OF INSTITUTE OF
ENGINEERING & MANAGEMENT
(IEM)

PROJECT COVERED FROM METLIFE

INDIA INSURANCE
BRANCH-SHAKESPEARE SARANI
 INSURANCE
INTRODUCTION
INSURANCE IS DEFINED AS EQUITABLE TRANSFER OF THE
RISK OF LOSS, FROM ONE ENTITY TO ANOTHER, IN
EXCHANGE OF PAYMENTS.
INSURER- IT IS A COMPANY SELLING THE INSURANCE
INSURED OR POLICYHOLDER-IT IS THE PERSON OR
ENTITY BUYING THE INSURANCE POLICY
INSURANCE RATE IS A FACTOR USED TO DETERMINE THE
AMOUNT TO BE CHARGED FOR A CERTAIN AMOUNT OF
INSURANCE COVERAGE , CALLED THE PREMIUM
INSURANCE POLICY- IT IS THE CONTRACT RECEIVED BY
THE INSURED WHICH DETAILS THE CONDITIONS &
CIRCUMSTANCES UNDER WHICH THE INSURED WILL BE
COMPENSATED.
 HISTORY OF INSURANCE IN INDIA
INSURANCE IN INDIA HAS ITS HISTORY DATING BACK TO 1818
,WHEN ORIENTAL INSURANCE COMPANY WAS STARTED BY
ANITA BHAVSAR IN KOLKATA TO CATER TO THE NEED OF
EUROPEAN COMMUNITY.
IN 1870 , BOMBAY MUTUAL LIFE ASSURANCE SOCIETY BECAME
THE FIRST INDIAN INSURER
AT THE DAWN OF THE TWIENTIETH CENTURY , MANY
INSURANCE COMPANIES WERE FOUNDED .IN 1912 , THE LIFE
INSURANCE COMPANIES ACT & PROVIDENT FUND ACT WERE
PASSED TO REGULATE THE INSURANCE BUSINESS.
THE LIFE INSURANCE COMPANIES ACT 1912 MADE IT
NECESSARY THAT THE PREMIUM RATE TABLES & PERIODICAL
VALUATIONS OF COMPANIES SHOULD BE CERTIFIED BY AN
ACTUARY.HOWEVER DISPARITY STILL EXISTED AS
DISCRIMINATION BETWEEN INDIAN & FOREIGN COMPANIES.
THE OLDEST EXISTING INSURANCE COMPANY IN INDIA IS THE
NATIONAL INSURANCE COMPANIES LTD WHICH WAS FOUNDED
IN 1906.BEFORE THAT THE INDUSTRY CONSISTED OF ONLY
TWO STATE INSURERS- LIFE INSURERS & GENERAL
INSURERS.GIC HAD FOUR SUBSIDIARIES, WHICH FROM
DECEMBER 2000 WERE SET UP AS INDEPENDENT INSURANCE
COMPANIES.THEY ARE- ORIENTAL INSURANCE COMPANIES LTD,
NEW INDIA ASSURANCE COMPANIES LTD, NATIONAL INSURANCE
COMPANY LTD & UNITED INDIA INSURANCE COMPANY LTD.
 IRDA
THE VARIOUS LAWS RELATING TO THE BUSINESS OF INSURANCE
WERE AMENDED IN 1999.THE INSURANCE REGULATORY &
DEVELOPMENT AUTHORITY (IRDA)WAS ESTABLISHED IN 1999
TO ‘REGULATE & ENSURE ORDERLY GROWTH OF THE
INSURANCE INDUSTRY’.
BY MAY 2003, THE IRDA HAD REGISTERED THE FOLLOWING 13
COMPANIES AS LIFE INSURERS.

• HDFC STANDARD LIFE INSURANCE CO.LTD

• ICICI PRUDENTIAL LIFE INSURANCE CO.LTD

• MAX NEW YORK LIFE INSURANCE CO.LTD

• OM KOTAK MAHINDRA LIFE INSURANCE CO.LTD

• BIRLA SUN LIFE INSURANCE CO.LTD

• TATA AIG LIFE INSURANCE CO.LTD

• SBI LIFE INSURANCE CO.LTD

• ING VYASA LIFE INSURANCE CO.LTD

• ALLIANZ BAJAJ LIFE INSURANCE CO.LTD

• METLIFE INDIA LIFE INSURANCE CO.LTD

• AMP SANMAR LIFE INSURANCE CO.LTD

• DABUR CGU LIFE INSURANCE CO.LTD

• AVIVA LIFE INSURANCE CO.LTD

 INDUSTRY STRUCTURE
CURRENTLY ,A $41 BILLION INDUSTRY, INDIA IS THE
WORLD’S 5TH LARGEST INSURANCE MARKET & GROWING
AT A RAPID PACE OF 32-34% ANNUALLY AS PER LIFE
INSURANCE COUNCIL STUDIES.
CURRENTLY IN INDIA ONLY TWO MILLION PEOPLE (0.2%
OF THE TOTAL POPULATION OF 1 BILLION) ARE
COVERED UNDER MEDICLAIM, WHEREAS IN DEVELOPED
NATIONS LIKE USA ABOUT 75% OF THE TOTAL
POPULATION ARE COVERED UNDER SOME INSURANCE
SCHEME.
WITH MORE & MORE PRIVATE COMPANIES IN THE
SECTOR, SITUATION MAY CHANGE SOON.
ADVANTAGES OF INVESTING IN INSURANCE
 IF AN ESTATE OWNER HAS NOT ACCUMULATED
ENOUGH ASSETS FOR HIS FAMILY , INSURANCE
QUOTE HELPS CREATE AN INSTANT ESTATE FOR
THE SAKE OF THE FAMILY’S SECURITY
 LIFE INSURANCE PROVIDES THE OPTION TO PASS
EQUAL ASSETS TO THE CHILDREN WHO ARE NOT
ACTIVE IN THE FAMILY BUSINESS AT THE TIME THE
FAMILY BUSINESS IS PASSED ON.
 LIFE INSURANCE POLICIES HELP SECURE THE
FUTURE OF CHILDREN FOR COLLEGE
/EDUCATIONAL PURPOSES
 IT IS HELPFUL IN PAYING ESTATE TAXES,
ALONGWITH OTHER ESTATE SETTLEMENT AMOUNTS
 IF THERE’S A BUSINESS TRANSFER , LIFE INSURANCE
CAN PROVIDE READY CASH TO FINANCE A
TRANSACTION BETWEEN BUSINESS OWNERS WHO
ARE READY TO BUY THE DECEASED OWNER’S SHARE
FROM HIS OR HER ESTATE AFTER DEATH
 IF THERE’S A HOME MORTGAGE,ONE CAN PASS THE
FAMILY RESIDENCE TO THEIR SPOUSE TO FREE
THEM OF ANY MORTGAGE IF ONE HAS LIFE
INSURANCE POLICY FOR THE SAME.
 IT HELPS RETAIN ONE’S BUSINESS FROM THE LOSS
OF A KEY EMPLOYEE, SINCE UNTIMELY DEATH OF A
KEY EMPLOYEE CAN POSS SEVERE FINANCIAL LOSS
TO THE BUSINESS.
 THE RIGHT INSURANCE PROCEEDS CAN PROVIDE
LIQUIDITY TO PAY OFF PERSONAL LOANS OR
BUSINESS LOANS.
 CHARITABLE REMINDER TRUSTS PROVIDE TAX
BENEFITS.
 A LOT OF INSURANCE PRODUCTS PRESENTLY
PROVIDES GOOD RETURNS, WHICH COULD BE A
BENEFICIAL WAY FOR SAVING NECESSARY FUNDS
FOR RETIREMENT YEARS.
 DISADVANTAGES OF INSURANCE
• INSURANCE COMPANIES HAVE CONTRACTUAL
CLAUSES THAT MITIGATE THEIR OBLIGATION
TO PROVIDE COVERAGE IF THE INSURED
ENGAGES IN BEHAVIOUR THAT GROSSLY
MAGNIFY THEIR RISK OF LOSS OR LIABILITY.
• INSURANCE POLICIES CAN BE COMPLEX & AS
A RESULT PEOPLE MAY BUY INSURANCE
POLICIES ON UNFAVOURABLE TERMS.
• REDINING –IT IS THE PRACTICE OF DENYING
INSURANCE COVERAGE IN SPECIFIC
GEOGRAPHIC AREAS ,SUPPOSEDLY BECAUSE
OF A HIGH LIKELIHOOD OF LOSS, WHICH IS
AN UNLAWFUL DISCRIMINATION.
 CLASSIFICATION OF INSURANCE
BUSINESS

TWO BROAD DIVISIONS OF INSURANCE BUSINESS HAVE

DEVELOPED INTO-

• LONG TERM

• GENERAL OR NON-LIFE INSURANCE BUSINESS

WHICH IS MOSTLY SHORT TERM
LONG TERM INSURANCE BUSINESS- IT REFERS TO
LIFE,INDUSTRIAL LIFE, INSURED PENSIONS AND PERMANENT
HEALTH INSURANCE BUSINESS WHICH ARE NORMALLY ISSUED
FOR LONG PERIODS.
GENERAL INSURANCE BUSINESS- IT REFERS TO NON-LIFE
BUSINESS , WHICH ARE NORMALLY ISSUED FOR TWELVE
MONTHS OR SHORTER DURATION.
IT IS ALTERNATIVELY CLASSIFIED UNDER THE FOLLOWING
HEADINGS;
 PROPERTY INSURANCES- FIRE,THEFT,ENGINEERING AND
MISCELLANEOUS ACCIDENT

MOTOR INSURANCE
 LIABILITY INSURANCE-EMPLOYER’S LIABILITY, PUBLIC
LIABILITY,PRODUCTS LIABILITY

PECUNIARY INSURANCES FIDELITY GUARANTEE, CREDIT

INSURANCE
PERSONAL ACCIDENT & HEALTH INSURANCES

INTERRUPTION INSURANCES ARISING OUT OF FIRE &

ENGINEERING RISKS
 INTERNAL ORGANISATION
WITHIN AN INSURANCE OFFICE , THE FOLLOWING
DEPARTMENTS ARE LIKELY TO EXIST.THESE MAY BE
LOCATED IN THE BRANCH OFFICE OR THE
DIVISIONAL/HEAD OFFICES.
 BUSINESS DEVELOPMENT OR AGENCY OR
MARKETING CONCERNED WITH THE DEVELOPMENT
OF AGENCY FORCE ,MARKET DEVELOPMENT &
BUSINESS GROWTH.
 NEW BUSINESS , WHICH WOULD RECEIVE ,
SCRUTINISE & TAKE UNDERWRITING DECISIONS ON
THE NEW PROPOSALS FOR INSURANCE & ALSO
ISSUE THE POLICY.
 POLICY-HOLDERS SERVICING WHICH WOULD BE
CONCERNED WITH ADMINISTRATION OF THE POLICY
,MONITORING PREMIUM , LAPSES & REVIVAL ETC.
 ACCOUNTS TO HANDLE FINANCIAL FLAWS.
 METLIFE ASSET MANAGEMENT COMPANY
THE ORIGINS OF METROPOLITAN LIFE INSURANCE
COMPANY(METLIFE) GO BACK TO 1863, WHEN A GROUP
OF NEW YORK CITY BUSINESSMEN RAISED $100,000 TO
FOUND THE NATIONAL UNION LIFE & LIMB INSURANCE
COMPANY.
THE NEW COMPANY INSURED CIVIL WAR SAILORS &
SOLDIERS AGAINST DISABILITIES DUE TO WARTIME
WOUNDS, ACCIDENTS & SICKNESS.
BY 1880,THE COMPANY WAS SIGNING UP 700 NEW
INDUSTRIAL POLICIES A DAY. RAPIDLY INCREASING
VOLUME QUICKLY DROVE DOWN DISTRIBUTION COSTS,&
THE NEW PROVED IMMEDIATELY SUCCESSFUL.
BY 1909,METLIFE BECAME THE NATION’S LARGEST LIFE
INSURER IN TERMS OF INSURANCE IN FORCE, A
LEADERSHIP POSITION IT CONTNUE TO HOLD TODAY IN
NORTH AMERICA.
IN 2000 METLIFE TRANSFORMED ITSELF FROM MUTUAL
TO STOCK OWNERSHIP IN APRIL OF THAT YEAR
THROUGH A DEMUTUALIZATION & IPO THAT WAS
COMPLETED IN JUST 18 MONTHS AFTER BOARD
AUTHORIZATION.
IN 2001, METLIFE INVESTED $1BILLION IN A BROAD
ARRAY OF PUBLICLY TRADED COMMON STOCKS.AT THE
SAME TIME IT BECAME THE FIRST INSURANCE COMPANY
TO ESTABLISH A FINANCIAL HOLDING WITH A
NATIONALLY CHARTERED BANK.
THE SALE OF STATE STREET RESEARCH & MANAGEMENT
COMPANY TO BLACKROCK INC WAS ANNOUNCED IN
2004.IN LINE WITH METLIFE’S STRATEGY THE SALE
BENEFITED MANY OF THE COMPANY’S INDIVIDUAL &
INSTITUTIONAL BUSINESS CLIENTS.
ON JULY 1,2005 , THE TRAVELERS ACQUISITION MADE
METLIFE THE LARGEST INDIVIDUAL LIFE INSURER BASED
ON SALES, THE SECOND LARGEST PROVIDER OF RETAIL
ANNUITIES & LARGEST PROVIDER OF INSTITUTIONAL
ANNUITIES.
IN EARLY 2006, METLIFE WAS ALSO NAMED TO THE
NATIONAL ASSOCIATION FOR FEMALE EXECUTIVES
ANNUAL LIST OF TOP 30 COMPANIES FOR EXECUTIVES.
 PRODUCTS OFFERED BY METLIFE
THE PRODUCTS OFFERED BY METLIFE CAN BE
BROADLY CLASSIFIED AS FOLLOWS;-
 CHILD PLAN
 RETIREMENT
 SAVINGS
 PROTECTION
 RURAL
 INVESTMENT
 HEALTH
 MONTHLY INCOME
THIS BROAD CLASSIFICATIONS CAN BE FURTHER
SUDIVIDED-
 CHILD PLAN
-MET BHAVISHYA
-MET JUNIOR ENDOWMENT
-MET JUNIOR MONEYBACK
-MET MAGIC PLUS
 RETIREMENT
 -MET GROWTH SUPER
-MET PENSION PAR
-MET PENSION PLUS
 SAVINGS
-MET SUKH
-MET SUVIDHA
-MET SARAL
-MET 100
 PROTECTION
-MET SURAKSHA
-MET SURAKSHA TROP
-MET SURAKSHA PLUS
-MET MORTGAGE PROTECTOR PLUS
 RURAL
-MET VISHWAS
-MET SUVIDHA-RURAL
 INVESTMENT
-MET EASY PLUS
-MET WEALTH PLUS
-MET GOLD PLUS
 -MET FORTUNE
-MET SMARTLIFE
 HEALTH
-MET HEALTH CARE
 MONTHLY INCOME
-MONTHLY INCOME PLAN
 PRODUCTS (CONTD...)
THE PRODUCTS OFFERED BY METLIFE
INCLUDE BOTH TRADITIONAL & UNIT LINKED
PRODUCT (ULIP).
EXAMPLE OF A TRADITIONAL PRODUCT IS
MET SUVIDHA.THE PLAN OF MET SUVIDHA IS
AS FOLLOWS:

PLAN NAME MET SUVIDHA

MINIMUM ENTRY AGE 15 YRS
MAXIMUM ENTRY AGE 70 YRS
MAXIMUM MATURITY AGE 75 YRS
MINIMUM SUM ASSURED 75000
TERM OF POLICY 15-30YRS (PAR),5-30YRS(NON-
PAR)
PREMIUM PAYING SINGLE PAY,REGULAR
OPTIONS PAY,LIMITED PAY(5YRS,10YRS)
BANDS SILVER, GOLD, PLATINUM
RIDERS ALLOWED ALL
DEATH BENEFIT FA+RIDERS+RB+TB(PAR),
FA+RIDERS(NON-PAR)
MATURITY BENEFIT FA+RB+TB(PAR),FA(NON-PAR)
SURRENDER VALUE APPLICABLE AFTER 3 POLICY
YEARS
BONUS REVERSIONARY & TERMINAL
BONUS FOR PAR OPTION
WITHDRAWAL OPTIONS NA
PLAN OPTIONS PAR, NONPAR
FUND OPTIONS NA
MAX TOP UP NA
EXAMPLE OF A UNIT LINKED PRODUCT IS MET
SMARTLIFE. THE PLAN OF MET SMARTLIFE IS
AS FOLLOWS:

PLAN NAME MET SMARTLIFE

MINIMUM AGE AT ENTRY 3 MONTHS COMPLETED
MAXIMUM AGE AT ENTRY 70 YRS
MINIMUM ANNUALIZED ANNUAL & SEMI-ANNUAL-RS
PREMIUM 36000
QTRLY & MONTHLY-RS
48000
MATURITY AGE 99 YEARS OF AGE
COVERAGE TERM 99 –AGE AT ENTRY
PREMIUM PAYMENT MODES MONTHLY, QTRLY,HALF-
YEARLY, ANNUALLY
DEATH BENEFIT THE HIGHER OF SA OR
FUND VALUE
MATURITY BENEFIT THE FUND VALUE
LIQUIDITY WITH PARTIAL AFTER 5 POLICY YEARS
WITHDRAWALS
OPTION TO CHANGE SA OR FLEXIBILITY TO CHANGE SA
REGULAR PREMIUM OR REGULAR PREMIUM
HIERARCHY STRUCTURE OF
METLIFE INDIA INSURANCE

MANAGING DIRECTOR

NATIONAL HEAD

ZONAL HEAD

REGIONAL HEAD

REGIONAL MANAGER

AGENCY MANAGER

SSM SM ASM
F.A F.A F.A
 OBJECTIVE OF THE STUDY

TO STUDY THE PROCESS OF

RECRUITMENT IN AN INSURANCE
COMPANY AS WELL AS ITS BUSINESS
EXPANSION PROCESS.
 ROLE OF HR IN THE RECRUITMENT
PROCESS
RECRUITMENT IS THE PROCESS OF LOCATING &
ENCOURAGING POTENTIAL APPLICANTS TO APPLY FOR
EXISTING OR ANTICIPATED JOB OPENINGS.

INFORMATION FLOW

ORGANISATION NEED FOR POTENTIAL APPLICANTS

HIGH QUALITY NEED FOR SUITABLE
EMPLOYEES JOBS

INTERNAL APPLICANT

ENVIRONMENT: ECONOMIC, SOCIAL

SOURCES OF RECRUITMENT
THE SOURCES OF RECRUITMENT MAY BE
DIVIDED INTO TWO CATEGORIES;-
-INTERNAL SOURCES
-EXTERNAL SOURCES
INTERNAL SOURCES INCLUDE:-
 PROMOTIONS & TRANSFERS
 JOB POSTING
 EMPLOYEE REFERRALS

EXTERNAL SOURCES INCLUDE:-

 CAMPUS RECRUITMENT
 ADVERTISEMENTS
 PRIVATE EMPLOYMENT SEARCH FIRMS

AFTER RECRUITING PEOPLE USING THESE SOURCES

DESCRIBED ABOVE , IT IS THE HUMAN RESOURCE
PLANNING WHICH SEEKS TO PLACE THE RIGHT
EMPLOYEES IN THE RIGHT JOBS AT RIGHT TIME,SO
THAT THE ORGANISATION CAN MEET ITS
OBJECTIVE.
 RECRUITMENT PROCESS IN METLIFE
LIKE ALL THE OTHER COMPANIES IN THE
CORPORATE WORLD METLIFE INSURANCE
COMPANY ALSO FOLLOWS THE SAME
RECRUITMENT PROCESS BUT ADDED TO THAT
THEY HAVE A SPECIALLY DESIGNED PEGASUS
PROGRAMME WHICH FURTHER CONTRIBUTES IN
THE MOTIVATION OF THEIR EMPLOYEES
SIMULTANEOUSLY PROVIDING FOR INTERNAL
RECRUITMENT.
ASSISTANT SALES MANAGER

QUALIFICATION CRITERIA

VINTAGE 6 MONTHS+

EDUCATION GRADUATION/4 YR DIPLOMA

PERFORMANCE 5L CP & 12 POLICIES

RENEWAL PREMIUM COLLECTION 85%

PERFORMANCE PERIOD PREVIOUS SIX MONTHS

FREQUENCY OF ELIGIBILITY LIST MONTHLY

FINANCIAL ADVISOR PEGASUS

FA PROGRESSION TO ASM ROLE
 ASM PROGRESSION TO SM ROLE
QUALIFICATION CRITERIA

VINTAGE 6 MONTHS

PERFORMANCE % 100% OF 12 MONTHS GOAL SHEET

NO OF ACTIVE FA 1)ASM WITH <12 MONTH VINTAGE

SHOULD HAVE 36 FAs

2)ASM WITH >12 MONTH VINTAGE

SHOULD HAVE 55 FAs

RENEWAL PREMIUM COLLECTION 85%

NEW LICENSES 1)ASM WITH <12 MONTH VINTAGE

SHOULD HAVE 18 FAs

2)ASM WITH > 12 MONTH

VINTAGE SHOUKD HAVE 12 FAs

PERFORMANCE PERIOD PREVIOUS 12 MONTHS

FREQUENCY OF ELIGIBILITY LIST MONTHLY

 SM PROGRESSION TO SSM ROLE

QUALIFICATION CRITERIA

VINTAGE 6 MONTHS+
PERFORMANCE % 125%

NO OF ACTIVE FAs SM WITH <12 MONTH

VINTAGE HAVE 43 FAs & SM

WITH >12 MONTHS HAVE 62 FAs

RENEWAL PREMIUM COLLECTION 85%

NEW LICENSES SM WITH <12 MONTH VINTAGE

HAVE 18 FAs &>12 MONTHS

HAVE 12 FAs

PERFORMANCE PERIOD PREVIOUS 12 MONTHS

FREQUENCY OF ELIGIBILITY LIST MONTHLY

SIMILARLY THERE ARE PROGRSSION AVAILABLE
FOR SSM TO AGM & AGM TO SAM ROLE.

EMPLOYEE BENEFITS AVAILABLE IN METLIFE

1)ABOUT 29DAYS HOLIDAYS ARE AVAILABLE PER YEAR
CONSIDERING BOTH FIXED & FLOATING HOLIDAYS
2)A LEAVE POLICY IS AVAILABLE FOR THE EMPLOYEES
INORDER TO MAINTAIN WORK LIFE BALANCE IN METLIFE
3)METLIFE INDIA INSURANCE COMPANY IS COMMITTED
TO KEEP WORKPLACE FREE FROM ANY KIND OF
HARRASSMENT
4)MOREOVER THIS COMPANY AIMS TO PROVIDE
FINANCIAL SUPPORT TO ITS EMPLOYEES IN THE EVENT
OF HOSPITALIZATION OF THE EMPLOYEE OR HIS FAMILY
MEMBERS
 CONCLUSION FROM THE STUDY
THE STUDY SUGGESTS THE RECRUITMENT
PROCESS IS A RIGOROUS PROCESS WHICH
INVOLVES A LOT OF TIME ,HARDWORK AS
WELL AS INVOLVEMENT OF HR MANAGERS
ONLY IN THE FIRST HALF OF
RECRUITMENT PROCESS.
THE END