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Reliance Life Insurance
A study conducted in

(Reliance life insurance)

Submitted in partial fulfillment of requirement of degree of master of business administration


S. No

Chapter 1
Industry profile
Company profile
Recruitment and selection process at reliance life

Page No


Chapter II
Review of existing literature

Chapter III
Research methodology
Research design
Significance of study
Focus of the study
Objective of the study
Limitation of the study

Chapter IV
Analysis and Interpretation

Chapter V


The insurance sector has gone through a number of phases and changes. Since 1999, when the
government opened up the insurance sector by allowing private companies to solicit insurance and also
allowing FDI up to 26%, the insurance sector has been a booming market.

The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. The business of life insurance in India in
its existing form started in India in the year 1818 with the establishment of the Oriental Life
insurance companies calcutta by Anita Bhavsar.
Despite the fact that general insurance business has been growing at a healthy rate of 16 per cent
annually between 2004-05 and 2008-09, its penetration level is just 0.60 per cent of Indias GDP
against world average of 2.14 per cent. India ranks 136th on penetration levels and Life Advisors
behind China(106), ThaiLife Advisornd (87), Russia(86), Brazil(85), Japan(61), and the US(9).
The penetration of general insurance in india remains low on account of low consumer
preference, Life Advisorrgely untapped rural markets and constrained distribution channels
(Crisil & Assocham).Recruitment and selection is the process of identifying the need for a job,
defining the requirements of the position and the job holder, advertising the position and
choosing the most appropriate person for the job.Human Resource Management includes all
activities used to attract & retain employees and to ensure they perform at a high level in meeting
organizational goals. It means employing people, developing their resources, utilizing,
maintaining and compensating their services in tune with the job and organizational


History of insurance sector in India

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ),
Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of
resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine.
This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest
traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has
evolved over time heavily drawing from other countries, England in particular.
1818 saw the advent of life insurance business in India with the establishment of the Oriental Life
Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable
had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the
British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871),
Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however,
was dominated by foreign insurance offices which did good business in India, namely Albert Life
Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for
hard competition from the foreign companies.
In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian
Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the
Indian Insurance Companies Act was enacted to enable the Government to collect statistical information
about both life and non-life business transacted in India by Indian and foreign insurers including
provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the
earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive
provisions for effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large
number of insurance companies and the level of competition was high. There were also allegations of
unfair trade practices. The Government of India, therefore, decided to nationalize insurance business.
An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance
Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers
as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly till the late
90s when the Insurance sector was reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the west and the consequent
growth of sea-faring trade and commerce in the 17 th century. It came to India as a legacy of British
occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company
Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up.
This was the first company to transact all classes of general insurance business. 1957 saw the formation
of the General Insurance Council, a wing of the Insurance Associaton of India. The General Insurance
Council framed a code of conduct for ensuring fair conduct and sound business practices.
In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The
Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance
business was nationalized with effect from 1 st January, 1973. 107 insurers were amalgamated and grouped
into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd.,
the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General
Insurance Corporation of India was incorporated as a company in 1971 and it commence business on
January 1sst 1973.
This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The
process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it
been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN
Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.The
objective was to complement the reforms initiated in the financial sector. The committee submitted its
report in 1994 wherein , among other things, it recommended that the private sector be permitted to enter
the insurance industry. They stated that foreign companies be allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory
and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the
insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of
the IRDA include promotion of competition so as to enhance customer satisfaction through increased
consumer choice and lower premiums, while ensuring the financial security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for application for registrations.
Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame
regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various
regulations ranging from registration of companies for carrying on insurance business to protection of
policyholders interests.
In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as
independent companies and at the same time GIC was converted into a national re-insurer. Parliament
passed a bill de-linking the four subsidiaries from GIC in July, 2002.
The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking
services, insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance
sector is a boon for economic development as it provides long- term funds for infrastructure development
at the same time strengthening the risk taking ability of the country.
Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a
period of almost 190 years.
The business of life insurance in India in its existing form started in India in the year 1818 with the
establishment of the Oriental Life insurance company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance
1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and
nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5






The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance
Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Insurance Regulatory and Development Authority(IRDA)

The Insurance Regulatory and Development Authority (IRDA) is a national agency of the
Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known
as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements.
Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate,
promote and ensure orderly growth of the insurance industry and for matters connected therewith
or incidental thereto."

Company Profile

About Reliance Group

The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business house with
total revenues of over Rs 99,000 crore (US$ 22.6 billion).

The Group's activities span exploration and production (E&P) of oil and gas, refining and marketing,
petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power,
telecom and infocom initiatives. The Group exports its products to more than 100 countries the world
over. Reliance emerged as India's Most Admired Business House, for the third successive year in a TNS
Mode survey for 2003.
Reliance Group revenue is equivalent to about 3.5% of India's GDP. The Group contributes nearly 10% of
the country's indirect tax revenues and over 6% of India's exports. Reliance is trusted by an investor
family of over 3.1 million - India's largest.












With globally competitive capital and operating cost positions, Reliance Group dominates the
rapidly growing Indian market deriving over 80% of its revenues from the domestic market.
There was a split in Reliance group in 2005 and it was broken into two separate companies:
Reliance Industries Limited
Reliance Anil Dhirubhai Ambani Group (ADA Group)
To build a global enterprise for all our stakeholders, and a great future for our country,
To give millions of young Indians the power to shape their destiny, The means to realize their full


Shareholder Interest

We value the trust of shareholders, and keep their interests paramount in every business decision
we make, every choice we exercise
People Care
We possess no greater asset than the quality of our human capital and no greater priority than the
retention, growth and well-being of our vast pool of human talent
Consumer Focus
We rethink every business process, product and service from the standpoint of the consumer so
as to exceed expectations at every touch point
Excellence in Execution

We believe in excellence of execution in large, complex projects as much as small everyday

tasks. If something is worth doing, it is worth doing well.

Team Work

The whole is greater than the sum of its parts; in our rapidly-changing knowledge economy,
organizations can prosper only by mobilizing diverse competencies, skill sets and expertise; by
imbibing the spirit of thinking together -- integration is the rule, escalation is an exception
Proactive Innovation
We nurture innovation by breaking silos, encouraging cross-fertilization of ideas & flexibility of
roles and functions. We create an environment of accountability, ownership and problem-solving
based on participative work ethic and leading-edge research
Leadership by Empowerment
We believe leadership in the new economy is about consensus building, about giving up control;
about enabling and empowering people down the line to take decisions in their areas of operation
and competence

Social Responsibility
We believe that organizations, like individuals, depend on the support of the community for their
survival and sustenance, and must repay this generosity in the best way they can.
Respect for Competition
We respect competition because theres more than one way of doing things right. We can learn
as much from the success of others as from our own failures

The Reliance Anil Dhirubhai Ambani Group works in:

Reliance Communication

Reliance Energy

Reliance Capital

Reliance Mutual Fund

Reliance Life Insurance

Reliance General insurance

Reliance Health

Reliance Entertainment

Reliance Life Insurance has a wide array of insurance plans that have been designed with the philosophy
that different individuals are bound to have differing insurance needs.
The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend
on the age and life stage of the individual apart of the host of other factors.
Under Life insurance plans, Reliance Life Insurance offers plans under the following major categories:
1. Education Insurance Plans
2. Wealth creation Plans
3. Premium Guarantee Plans
4. Protection Plans
Saving & Investment plans
We all carry dreams in our lives. You can realize these dreams by investing in a plan that works as hard as

In life, you have always given your family whatever they have wanted. Yet, there are some
promises you have to fulfill, such as taking your family for a vacation, or buying that dream
Set aside some money to achieve these specific goals with the help of Reliance Savings &
Investment Plans. The plan allows you to experience the joys of life and provide for your
family's needs.
Enjoy life without worrying about the promises you have madewe are here to fulfill them.
Reliance Life Insurance Smart Maturity Benefit Plan.
Reliance Life Insurance Super Endowment Plan.
Reliance Life Insurance Guaranteed Money Back Plan.
Reliance Life Insurance Money Multiplier Plan.
Reliance Cash Flow Plan.
Reliance Endowment Plan.
Reliance Super Five Plus.

Reliance Whole Life Plan.

Reliance Connect 2 Life Plan.
The primary objective of retirement plan is to help you provide for your financial needs in your post
retirement years.
1. Forever Life
2. Life Time Super Pension
3. Life Link Super Pension


Under Health Product Suit, Reliance Life Insurance offers plans under the following major categories:
1. Health Assure
2. Health Assure Plus
3. Hospital Care
4. Cancer Care
5. Cancer Care Plus
6. Diabetes Care
7. Diabetes Care Plus


Insurance Solutions for Individuals

Reliance Life Insurance Life Insurance offers a range of innovative, customer-centric products
that meet the needs of customers at every life stage. Its products can be enhanced with up to 4
riders, to create a customized solution for each policyholder.

Savings & Wealth Creation Solutions

1.Save'n'Protect is a traditional endowment savings plan that offers life protection along with adequate
2.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. It is available for terms of 15
and 20 years.

Life Time Gold is a unit-linked plan that offers customers the flexibility and control to customize the
policy to meet the changing needs at different life stages. It offers 7 fund options - Preserver,
Protector, Balancer, Flexi Balanced Multiplier, R.I.C.H and Flexi Growth.


Life Stage RP is unit linked plan that provides you with an option of lifecycle-based portfolio
strategy that continuously re-distributes your money across various asset classes based on your life
stage. This will help you achieve the right Asset Allocation to meet your desired financial goals.


Life Link Super is a single premium unit linked insurance plan which combines life insurance cover
with the opportunity to stay invested in the stock market.


Premier Life Gold is a limited premium paying plan specially structured for long-term wealth


Invest Shield Life New is a unit linked plan that provides premium guarantee on the invested
premiums and ensures that the customer receives only the benefits of fund appreciation without any
of the risks of depreciation.


Invest Shield Cash back is a unit linked plan that provides premium guarantee on the invested
premiums along with flexible liquidity options.


Life Stage RP is a unique and powerful wealth creation insurance solution, which combines the
benefits of automatic asset allocation and quarterly rebalancing along with increased protection.

Protection Solutions


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


Home Assure is a mortgage reducing term assurance plan designed specifically to help customers
cover their home loans in a simple and cost-effective manner.

Education Solutions

Smart Kid New ULRP provides 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. Smart Kid plans are also available in traditional form.

Retirement Solutions
1. Forever Life is a traditional retirement product that offers guaranteed returns for the first 4 years and
then declares bonuses annually.
2. Life Time Super Pension is a regular premium unit linked pension plan that helps one accumulate
over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price,
joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15 years
& for life thereafter, joint life, last survivor annuity without return of purchase price) at the time of
Life Stage Pension is a regular premium unit linked pension plan that provides you with a unique
lifecycle-based strategy that continuously re-distributes your money across various asset classes based on
your life stage, eventually providing you with a customized retirement solution.

Life Link Super Pension is a single premium unit linked pension plan.
Immediate Annuity is a single premium annuity product that guarantees income for life at the


time of retirement. It offers the benefit of 5 payout options.

Premier Life Pension is a unique and convenient retirement solution with a limited premium
paying term of three or five years, to suit professionals and businessmen, especially those who
require more flexibility and customization while planning their finances.

Health Solutions

Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against
6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual
medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance


Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at
different stages in the treatment of various cancer conditions.


Cancer Care Plus: is a wellness plan that includes all the benefits of Cancer Care and also
provides an additional benefit of free periodical cancer screenings.


Diabetes Care: Diabetes Care is a unique critical illness product specially developed for
individuals with Type 2 diabetes and pre-diabetes. It makes payments on diagnosis on any of 6
diabetes related critical illnesses, and also offers a coordinated care approach to managing the
condition. Diabetes Care Plus also offers life cover.


Diabetes Care Plus: is a unique insurance policy that provides an additional benefit of life
cover for Type 2 diabetics and pre-diabetics


Hospital Care: is a fixed benefit plan covering various stages of treatment - hospitalization,
ICU, procedures & recuperating allowance. It covers a range of medical conditions (900
surgeries) and has a long term guaranteed coverage upto 20 years.


Crisis Cover: is a 360-degree product that will provide long-term coverage against 35 critical
illnesses, total and permanent disability, and death.

Group Insurance Solutions

Reliance Life Insurance Life also offers Group Insurance Solutions for companies seeking to
enhance benefits to their employees.
1. Group Gratuity Plan: Reliance Life Insurance Life's group gratuity plan helps employers
fund their statutory gratuity obligation in a scientific manner and also avail of tax benefits as
applicable to approved gratuity funds.

2. Group Superannuation Plan: Reliance Life Insurance Life offers a flexible market linked
scheme that provides substantial benefits to both employers and employees. Both defined
contribution (DC) and defined benefit (DB) schemes are offered to optimize returns for
members of the trust and rationalize cost. Members have the option of choosing from various
annuity options or opting for a partial commutation of the annuity at the time of retirement.

Group Immediate Annuities: Reliance Life InsuranceLife realizes the importance of

prudent retirement planning. With this in mind, we have developed a suite of annuity
products that not only give you an income for life but also provide you options to match your
needs. In addition to the annuities offered to existing superannuation customers, we offer
immediate annuities to superannuation funds not managed by us.


Group Term Plan: Reliance Life Insurance Life's flexible group term solution helps provide
an 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.

Flexible Rider Options

Reliance Life Insurance Life offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
1. Accident & disability benefit: If death occurs as the result of an accident during the term of the
policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy.
If an accident results in total and permanent disability, 10% of rider sum assured will be paid each
year, from the end of the 1st year after the disability date for the remainder of the base policy term or
10 years, whichever is lesser. If the death occurs while traveling in an authorized mass transport
vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.

2. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical
illnesses. Benefits are payable to the insured for medical expenses prior to death

3. Waiver of Premium: In case of total and permanent disability due to an accident, the future
premiums continue to be paid by the company till the time of maturity. This rider is available with
Smart Kid, Life Time Plus, Life Time Super and Life Time Super Pension.

4. Income benefit rider: In case of death of the life assured during the term of the policy, 10% of the
sum assured is paid annually to the nominee on each policy anniversary till the maturity of the rider.
Some plans with detail
Who can apply?
If you are 16 year old and not older than 55 years, the minimum sum is Rs. 75,000. You have the option
of paying yearly, half-yearly and also monthly premium.
Death benefit:
Sum assured + guaranteed additions (GA @ 3.5% compound annually on SA for the 4 years) + vested
bonus (VB)
Maturity benefit:
50% of sum assured guaranteed additions for four years + VB ob entire sum assured.
Survival benefit:

At the end of the


SBAS % of S.S.

End of the years

SBAS % of S.S.
















Additional features:

For protection to your family against unfortunate health, hazards or eventuality, we offer you the
followings riders:

1. Critical illness Riders

2. Major surgical Riders
3. Accident & Disability benefit
4. accident benefit Riders

General features:

Surrender- after 3 policy years, you get certain amount on surrender of the policy.


Who can apply?

If you are a parents aged between 20 & 60 years with children in the age group of 0 to 15 years
with minimum sum assured Rs. 1,00,000.

Death benefit:
Nominee get 100% sum assured + profit accrued on the plan till such date + Wavier of premium

Survival benefit:
This policy pays out money at regular interval coinciding with important Miles tones in childs
life. It has two options for payment.
Option 1:

At the end of

Child Age

Pay out


5 years

0% of S.A.


7 years

5% of S.A.


0 years

5% of S.A.


2 years

0% of S.A.+GA+VB

At the end of

Child Age

Pay out


8 years

5% of S.A.


9 years

20% of S.A.


0 years

20% of S.A.


1 years

0% of S.A.


2 years

0% of S.A.

Option 2:

1. Income benefit riders
2. Accident & Disability Benefit riders

3. Accident benefit riders

General features:
Surrender: after three policy years have been completed
Tex-benefit: Sec 80(c) on premium payment Sec 10(10) D benefit on death & maturity claim.


Who can apply?
If a person age between 20 & 60 year with minimum term 5 years and maximum 30 years.

Life cover benefit:

Forever life pension plan provides life covers during the deferment phase. In unfortunate event
of the death, the spouse has the option to receive the sum assured with guaranteed additions and
vested bonuses(if any) as a lump sum or get an annuity that would provide a regular income for

Maturity benefit:
1. Life Annuity: annuity for life

2. Life annuity with return of purchase price: life annuity for the annuitant with the return of
the purchase price.
3. Life annuity guaranteed for 5, 10, 15 years: guaranteed annuity paid for chosen term and
after that the annuity as long as the annuitant is alive.
4. Joint life, last survivor with return of purchase price: in this case, the annuity is first paid
to annuitant. After the death of annuitant, the spouse starts getting a pension, which is an
amount that equal to the annuity paid to the annuitant. After the death of last survivor, the
purchase price is return to the beneficiary.

Recruitment is defined as, a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient workforce. Edwin
B. Flippo defined recruitment as the process of searching for prospective employees and
stimulate them to apply for jobs in the organization. Recruitment is a linking function-joining
together those with jobs to fill and those seeking jobs. It is a joining process in that it tries to
bring together job seekers and employer with a view to encourage the former to apply for a job
with the Life Advisor.
In order to attract people for the jobs, the organization must communicate the position in such a way that
job seekers respond. To be cost effective, the recruitment process should attract qualified applicants and
provide enough information for unqualified persons to self-select themselves out.

Recruitment is distinct from Employment and Selection. Once the required number and kind of
human resources are determined, the management has to find the potential Life Advisors where
the required human resources are/will be available and also find the means of attracting them
towards the organization before selecting suitable candidates for jobs. All this process is
generally known as recruitment. Some people use the term Recruitment for employment.
These two are not one and the same. Recruitment is only one of the steps in the entire
employment process. Some others use the term recruitment for selection. These are not the same
either. Technically speaking, the function of recruitment precedes the selection function and it
includes only finding, developing the sources of prospective employees and attracting them to
apply for jobs in an organization, whereas the selection is the process of finding out the most

suitable candidate to the job out of the candidates attracted (i.e.,recruited).Formal definition of
recruitment would give clear cut idea about the function of recruitment.


The general purpose of recruitment is to provide a pool of potentially qualified job
candidates. Specifically, the purposes are to:

Increase the pool of job candidates at minimum cost.

Help increase the success rate of the selection process by reducing the number of visibly, under
qualified or overqualified job applicants.

Help reduce the probability that job applicants, once recruited and selected, will leave the
organization only after a short period of time.

Begin identifying and preparing potential job applicants who will be appropriate candidates.

Induct outsiders with a new perspective to lead the company.

Infuse fresh blood at all levels of the organization.

Develop an organizational culture that attracts competent people to the company.

Search or head hunt/head pouch people whose skills fit the companys values.

Devise methodologies for assessing psychological traits.

Search for talent globally and not just within the company.

Design entry pay that competes on quality but not on quantum.

Every organisation has the option of choosing the candidates for its recruitment processes from
two kinds of sources: internal and external sources. The sources within the organisation itself
(like transfer of employees from one department to other, promotions) to fill a position are
known as the internal sources of recruitment. Recruitment candidates from all the other sources
(like outsourcing agencies etc.) are known as the external sources of recruitment.





Potential advantages


Worker morale and motivation is enhanced

Organization has a better opportunity to assess knowledge & skills of the candidate


Candidate has existing knowledge about the organization


Less orientation may be needed


May generate unhealthy competitiveness for promotions


Additional training may be required


Pool of candidates may be restricted


Those not selected may feel rejected and discontented

New ideas and insight
New knowledge and experience
Larger pool of talent to recruit from
Recruiting and selecting may be more time-consuming
Induction costs may be higher
Less opportunity to assess knowledge & skills

Strategies for successful recruitment

Recruitment and selection is not only about choosing the most suitable candidate. The recruitment and
selection experience can also impact on the likelihood that a candidate will accept a job offer and on their
commitment to remaining with the organization. Committing time and resources to develop a
comprehensive recruitment strategy is a worthwhile investment. Poor recruitment choices (i.e., poor
person-job fit) can have a range of undesirable consequences for the organization and the worker


Higher rates of turnover

Reduced performance effectiveness


Lowered job satisfaction


Reduced work motivation.

Effective recruitment process:

Step 1: Ensure an up-to-date job description

Step 2: Develop an effective recruitment strategy

Step 3: Evaluate the recruitment strategy.

Walk-in: - As per this technique, the potential candidates are required to attend for an interview directly
and without a prior application on a specified date, time and at a specified place.

Consult-in: - The busy and dynamic companies encourage the potential job seekers to approach them
personally and consult them regarding the jobs.

Head-hunting: - These are also known as search consultants. The companies request the professional
organizations to search for the best candidates particularly for the senior executive positions.

Body Shopping: - Professional organizations and the hi-tech training institutes develop the pool of
human resources for the possible employment. The prospective employers contact these organizations to
recruit the candidates. These professional and training institutions are called body shoppers and these
activities are known as body shopping.

Business Alliances: - Business alliances like acquisitions, mergers and take-over help in getting
human resources. The company with surplus human resources offers the services of their
employees to other needy organizations.

Tele-Recruitment: - This technique involves the use of the Internet, to advertise job vacancies and also
for the candidates to apply online.

Overview of selection techniques

Evidence-based best practice for three of the most commonly used selection techniques is outlined below.
1. Curriculum vitas / rsums and written applications

A curriculum vitae (CV) / rsum provides valuable information relating to a persons professional
Qualifications and experience. All information in the CV should be verified where appropriate (e.g.,
asking applicants to explain gaps in employment history). Requesting job applicants to address specific c
selection criteria (i.e., essential and desirable) can improve the efficiency of reviewing CVs.

2. Conducting interviews
Structured interviews are recommended. A structured interview involves asking each candidate the same
set of questions and assessing their responses on the basis of pre-determined criteria. Questions and
assessment criteria should be based on accurate, updated job descriptions. It is also helpful to develop
criteria to categories responses (e.g., as excellent, good, average and unsatisfactory). An interview panel
consisting of a representative selection of people may also be helpful. Two common types of structured
interview questions are:

Situational questions which ask candidates about hypothetical scenarios that may be encountered in the
job and how they would respond in that situation

Experienced-based questions which focus on specific

examples of the candidates prior work

experiences and their responses to past situations that are relevant to the job in question.

3. Reference checks

Referees are useful for identifying past employment problems and clarifying the accuracy of information
presented in an interview or CV. Only a small percentage of all reference checks are negative, therefore, it
is often difficult to differentiate between candidates on the basis of reference checks alone.

Induction and orientation of new workers

An effective induction helps new workers understand their role and where they fit within the
organization. It also equips them with the tools they need to perform their work role. Two useful induction
tools are:

1. Induction manual / kits which may contain:

An induction checklist
Organizational philosophy / ethics / history
Strategic values of the organization
An organizational chart / structure
An employment manual on policies and procedures
An orientation to the workplace (including parking and safety issues)
Information about episodes of care, the duty system, supervision, staff meetings, etc.

2. Mentoring / buddy system

New workers can be paired with experienced workers from a similar area to show them the ropes.
Alternatively, a more formal / structured mentoring system can be a useful induction strategy in

Which new workers are paired with a mentor who can assist them with their ongoing professional

Best practice in selection techniques

A wide selection of techniques are available which range from intensive (and expensive) activities (e.g.,
multi-day assessment centers), to the more commonly used interviews and reference checks. Based on the
evidence alone, best practice in selection requires a comprehensive program that, Includes realistic tests
of work practice and the use of validated psychometric instruments. This is clearly an unrealistic
expectation for most AOD organizations.

The next section describes evidence-based best practice for three of the most commonly used selection

Curriculum vitaes / rsums and written applications

Conducting interviews


Selection tests.

Curriculum vitae / rsums and written applications

Information about a persons professional qualifications and experience can be obtained from their
curriculum vitae (CV) / rsum and their written applications. This information needs to be verified as far
as possible before the person is hired. When reviewing the CV / rsum and written application, look for
items that may need further clarification such as:


Unexplained gaps in employment history

Ambiguous wording


Unanswered or partly answered questions


Inconsistent information


Frequent job changes.

Consider requesting job applicants to address specific selection criteria (i.e., essential and desirable) for
the job position. The onus is then on the applicant to summarise their work experience and qualifications
and present it in an accessible manner. This makes for a more efficient and time-saving
process to find relevant information about each applicant that matches the criteria for the job.

Conducting interviews
In order to obtain the best person-job fit (i.e., matching the right person for the right job), a Structured
interview format is recommended. A structured interview involves asking each candidate the same set of
questions and assessing their responses on the basis of pre-determined criteria. The questions and
assessment criteria are based on an accurate, updated job description.
The more common types of structured interview questions are situational
and experience-based.
Situational questions
Situational questions ask candidates about hypothetical scenarios that may be encountered in the job and
how they would respond in that situation.The questions directly tap into the work related experience and
problem-solving style of the candidate.

For example, situational interview questions may include:


Your case load has increased to the point of being unmanageable - how would you address this?
What would you do if a client did not attend an appointment?
You are the team leader and two team members have had an argument with one another about the
way the work tasks should be assigned. How would you handle this?


If you disagreed with the work practices of a coworker or team member, how would you deal with
this situation?


A client arrives to a session intoxicated. How would you manage this?

A client complains to you that another staff member has acted inappropriately. What would you


During a counseling session, it becomes apparent that a client has problems to manage that are
beyond your skill level (e.g., mental health issues or abuse). How would you handle this?

Experience-based questions
Experience-based questions focus on specific c examples of the candidates prior work experiences and
their responses to past situations that are relevant to the job in question. One advantage of experiencebased questions is the opportunity to tap into actual behavior and feelings rather than hypothetical ones.

Examples of experience-based questions include:

Please describe a situation where you had to deal with an aggressive client and outline how you dealt
with this. What were some of the strengths and weaknesses in your approach?
Can you give an example of when you had to manage a complex project and describe the strategies you
used to do this?
Developing criteria to assess candidates responses.
To effectively distinguish between candidates, it is recommended that structured questions are
accompanied by a pre-determined scoring key. The scoring key should contain examples of excellent,
good, average, and unsatisfactory answers against which candidates answers can be compared.
Advantages of pre-determined scoring criteria include:
Reduced reliance on interviewers memory or written notes
Increased cLife Advisorrity regarding the criteria against which candidates are assessed (i.e., what is a
good answer?)
Consistency of assessment across candidates and between interviewers (if a panel is used).

Interview panels
It is recommended that an interview panel, rather than a single interviewer, is used. Using a panel of
interviewers can help to minimize potential biases, as well as provide the opportunity to compare
evaluations of the candidate before a final decision is made.29 Where appropriate, the panel should be

representative of gender and professions. Representation on an interview panel can provide frontline
workers / team members with an opportunity to participate in the recruitment and selection process.

Selection tests

To judge potential ability/job related problems

To eliminate the possibility of biasness on the part of interviewer
To uncover talents not identifiable by interviewer.

There are mainly four kind of tests:1. achievement test(proffeceancy test): to test the skills or knowledge acquired by the
candidate due to his training and achievement for example typing test, shorthand test,
operating calculators etc.
2. Aptitude test(Potential test): to judge latent ability to learn a new job, in order to judge
memory, reasoning, speed of perception, fluency in language ,to judge the capacity to
learn a particular type of mechanical work etc.
3. Pschometer or skill test: measure to ability to do a specific job
4. Personality test: to judge individual value system, emotional reaction, maturity,
confidence, to judge the dominance, self confidence, self sufficiency etc.


Primary Sources

Through Agency Manager References

Cold Calling Through Interns

Kind Of Recruitment Process

Basically, it is a 4 rounds procedure:

Initially Candidate has to fill 750/-Rs. NAAF New

Agent Application Form) then Screening is done
by Agency Managers.
Business Opportunity Presentation (BOP) is
done by ADM (Agency Development Manager).
Then, Branch Manager will Interview the
After this Training will be provided to
Candidate And then Candidate has to undergo
IRDA Exam.

Strategies Followed

No Strategies are followed as such.

Criteria for becoming Financial Advisor(Life

Basic criteria is: Graduate.


No. of days allocated for training

Age > 25
Married Preferred.
Female Preferred.

18-20 days are allocated for Training.

In a month, no. of candidates Recruited as

40-50 candidates are recruited as Life Advisors.

Financial Advisors
Training Reimbursement/Commission

No Training Reimbursement is given to Life


Training Reimbursement/Commission

No Training Reimbursement is given to Life


In a year, no. of times Training provided

Once in a month.
Reliance Life Insurance strictly follows the norms
so; if anyone is not fulfilling the criteria then he
cannot be awarded with any position in the

Career Path

Life Advisors get a good Career Path so they can

become Agency Manager as well as Training

How is it Different

Basically, Reliance Life Insurance


on :-Professionalism, Pragmatism, Integrity And also

they want to become preferred company for
financial protection so, they take candidate needs
into consideration a lot as they have multi-channel
execution capability.



Philip G. Swaroff, Lizabeth A. Barclay, Alan R. Bass(2006) has written in his article relations between
recruiting source, employee tenure and productivity were examined for a sample of 618 technical
salespersons over a 2-year period. Unlike earlier research, a relation between recruitment source and job
tenure was not found, nor was recruiting source found to be related to employee productivity.
Explanations for differences between the present findings and earlier research include: characteristics of
this particular job; the fact that multiple jobs and levels were not always considered; and the turnover rate
of the sample job. Additional findings lent some support to Schwab's (1982) suggestion that recruiting
sources may be differentially effective to the extent that they reach different populations. A comparison of
research results with text book presentations and practitioner articles is also provided, with a discussion of
the gap between research and practice.

Charieoliver(2008) has said on her research paper that the key to successful recruitment is to ensure that
the criteria of suitability are overt and relevant to the job itself. Once these criteria are agreed and shared
it is possible to make more rational decisions about someone's suitability for a job, based on evidence
rather than gut feeling or instinct. Effective recruitment and selection should not be about the luck of the
draw. Systematic planning and preparation will increase the likelihood of taking on the right person. The
key to effective recruitment is preparation: knowing the job and what is required of someone to perform it
well. The costs of recruiting the wrong person can be significant. The cost of employing someone may be
at least twice their salary when factors such as training, expenses and employer's contributions to their
pension are added.

Rakesh sharma(2008) has written in his book that a company's success begins in the recruitment process
during which the screening and vetting procedures shape and convey the company's demands to aspiring
candidates. Therefore, it is essential for an organization to construct an explicit and standardized mode by
which skills, qualifications and personal attributes are illuminated and used in the decision-making
process leading to employment. The author discusses a dual interview and supplementary self-evaluation
process to be used to fill a new position of print media editor.



Research Methodology

Research is a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a specific topic, in fact research is an art of
scientific investigation. Research Methodology is a scientific way to solve research problem. It may be
understood as a science of studying how research is doing scientifically. In it we study various steps that
are generally adopted by researchers in studying their research problem. It is necessary for researchers to
know not only know research method techniques but also technology.
The research problem consists of series of closely related activities. At times, the first step determines
the native of the last step to be undertaken. Why a research has been defined, what data has
been collected and what a particular methods have been adopted and a host of similar other questions
are usually answered when we talk of research methodology concerning a research problem or study.


The insurance industry is expanding very fast and there is big scope in this sector in future, insurance
companies recruit Life Advisors and take work from them on commission bases. The whole growth of
company depends upon the capability of Life Advisor.So the main problem is to recruitment and selection
of capable candidates for life advisors

Research Design :-

Descriptive and Exploratory Research Design. Study is descriptive because it

describes the process of recruitment and selection and study is exploratory because some more new
profiles or segments are discovered for recruitment.

Universe & Sample size :- Reliance Life Insurance Ambala city .AgencyManagers-20 Life Advisors-50

Sampling Technique :- convenient sampling

Data Collection and Sources :- Data is collected through primary and secondary sources where primary
data collection was done by structured questionnaire and secondary data was collected from magazines,
newspaper, books,etc.

Analysis pattern :- pie chart and bar chart were used for analysis.



To study and understand the process of recruitment and selection of Life Advisor at Reliance Life


To find out the different sources of recruitment.


To study the effectiveness of Recruitment and Selection process.


To suggest the various profiles for getting capable Life Advisor in Reliance Life Insurance


A research has its own importance in any business organization. It is a systematic and scientific
investigation of any idea either precise or abstract from continuous basis of learning. As we know in

present times, the modern world is progressing at a very high pace. Due to high competition and increased
expectations, every organization needs effective recruitment and selection process. By this study new
segments of recruitment and selection has been discovered. This will help to enhance the capability of
Reliance Life Insurance in using the recruitment and selection process more effectively.
This project would be significant for researcher because this is the opportunity for putting theortical
knowledge into practical application.
This project would be significant for the readers as it is providing them knowledge about recruitment and
selection process.



Time was the biggest limitation. The project requires a thorough study which requires a considerable
amount of time.


The study is based on both primary as well as secondary data and has the limitations pertaining to the
usage of both kinds of data.


Respondents may be biased while filling the questionnaire.



Q 1:- what are the sources of information from which you came to know about the reliance life insurance.



Personal references/friends/relatives




Employment agencies


Recruitment survey by the organization



Employment agencies
Recruitment sources by
the organization

Interpretation:From the data it has been concluded that major sources of information of filling the vacancy was through
personal references/friends/relatives 93%.
Q2:- why did you join Reliance life insurance?



Personal reasons


Good facilities


Good salary


Ease of mobility



Personal reasons
Good facilities
Good salary
Ease of mobility

Interpretation:From the data it has been concluded that 64% of employees join the organization due to the better
facilities provided by the organization.

Q3:- When do you prefer to go for manpower planning?


No. of Responses





Not fixed time


Time Period

Not fixed time

Interpretation:Around 50% of the manager go for quarterly manpower planning and 20% do
not follow any pattern they dont have any fixed time where as 20% go for

Q4:- Before joining Reliance life insurance were you aware of the work and working


No. of responses

Very much


Up to a great extent




Very little


Not at all





Very much
Up to a great extent
Very little
Not at all

Interpretation:From the data it has been concluded that 30% of employees were aware about the working
conditions of the reliance life insurance before joining.

Q5:- what are the sources for recruitment and selection?


No of Respondents









Interpretation:About 73% of the manager say that they prefer internal source for recruitment and selection .

Q6:- what are the sources for external recruitment are preferred?


No of Respondents

Campus interview


Data bank


Casual application


Placement agencies


External Recruitment

Campus interview
Data bank
Casual application
Placement agencies

Interpretation:In Reliance life insurance 34% of managers go for campus interview, 33% go for
data bank, 25% from the casual application that are received and only 8% go for
any placement agencies.

Q 7:- In your opinion, what kind of verification is done on priority basis selection?


No. of responses

Educational qualification


Legal background check


Professional background check


References check


Family background check


Basis of selection

Educational qualification
Legal background check
Professional background
References check

Interpretation:From the data it is noted that maximum verifications were done on the basis of educational
qualifications and they were 30% of the total data taken.

Q8:- Which technological support was used during your process of recruitment?


No. of Respondents



Video conferencing


Online support




Technological support

Video conferencing
Online support

Interpretation:From the data it is noted that 40% of the employees were recruited with the help of telephone
where recruited through the telephone.

Q9:- Which process did you find the most difficult during the selection procedure?


No of Respondent

Form filling


Medical checkup




Orientation Program


Difficult Process

Form filling
Medical checkup
Orientation Program

Q10:- Whether the record of those candidate who are not selected should be maintained?


No. of Responses






Interpretation:Almost all the employees said that the organization must maintain their record even if they are
not selected.

Q11:- How was the interview process?


No. of Responses

Very complex








Very easy

Interview Process

Very complex
Very easy

Interpretation:- From the above data it has been concluded that 22% of employees found that
interview process was of complex nature.

Q12:- Which practices was adopted for conducting your interview?


No of respondents

One on one interview


Sequential interview


Panel interview



One on one interview

Sequential interview
Panel interview

Interpretation:From the data it is noted that 50% of the employees were gone through one on one interview while 30%
were gone through sequential interview 20% of the total said that they were gone through panel interview.

Q13:- Did the industry reimburses the travelling cost incurred for appearing in the interview?

No of Responses







Interpretation:From the data it has been concluded that 95% of employees agree with the fact that industries do
not reimburse any cost incurred for appearing in the interview.

Q14:- Does the recruitment process being followed by the organization properly?


No. of Responses





Proper way


Interpretation:Out of 100 employees, 80 were in favour that recruitment process was followed properly while
20% were not in favour.

Q15:- How would you rate the recruitment and selection process of Reliance Life Insurance?


No . of Responses









Interpretation:From the data it has been concluded that 55% of employees found selection process is average in nature.

1. A major source of recruitment used by the industry is through references of people already working
in the industry.
2. The main attraction for the joining Reliance Life Insurance is good facilities and good salary for
the employees.

As we know Recruitment is distinct from Selection. Once the required number and kind of human
resources are determined, the management has to find the places where the required human resources
are/will be available and also they have to find the means of attracting them towards the organization
before selecting suitable candidates for jobs. The present study has been done to analyze the effectiveness
of recruitment process at Reliance Life Insurance This study reveals that the company is not able to
recruit potential Life Advisors. Also the Life Advisors are dissatisfied with their commission and
promotion policy.
At the end of the study, we can conclude that though there is satisfactory recruitment process but
company have to do some amendments in their recruitment process to get potential Life Advisors like
company should choose suitable segment for Life Advisor.

1. Company should focus more on profiles of Life Advisor while recruiting them, for example, company
should recruit people at the age of 28-32 years, company should prefer married people who have a
higher level of responsibility and company should give preference to female life advisors such as
female entrepreneurs, divorced women.
2. Company should do some amendments in their promotion policy like they should do internal
promotion and stress on succession planning.
3. Company try to retain their active Life Advisors by giving some lucrative incentives, quarterly bonus,
tours based on their performance.
4. Company should do more interesting training sessions with the help of audio visuals, two way
communication, activities , practical training etc.
5. Company should give more focus on advertisements so that they can lure more people.

Books :
a) Kotler Philips (2009), Marketing Management, Dorling Kindersley(India) Pvt. Ltd.
b) Kothari, C. R.(2005), Quantitative Technique, Vikas Publishing House Pvt. Limited, New Delhi
Websites :

Hello sir/Madam,
I am an M B A student and conducting a very prestigious marketing research project on Recruitment
and Selection of Life Advisor in Reliance Life Insurance . You are requested to cooperate me by filling
this questionnaire.
Q1. What was the sources of information from which you came to know about the Reliance Life

Personal references/friends
Employment agencies
Recruitment survey of the organization

Q2. Why did you join Reliance Life Insurance?


Personal reasons
Good facilities
Good salary
Ease of mobility

Q3.Before joining the Reliance Life Insurance was you aware of the work and working conditions?

Very much
Very little
Not at all

Q4. Which technological support was used during your process of recruitment?

Video conference
Online support

Q5. While recruitment which process you find most difficult?


From filling
Medical check up
Orientation program

Q6. In your opinion, what kinds of verification are done on priority basis before selection?

Educational qualification
Legal background check
Professional background check
References check
Family background check

Q7. Whether the record of those candidates who are not selected should be maintained?
a) Yes
b) No
Q8. How was the interview process?

Very complex
Very easy