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Recruitment And Selection Of Life Insurance Agent Business Essay


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Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.

A general term insurance is related to service sector. Insurance is concerned with the protection of economic value of assets. For example in case of a factory or a cow, the product generated by it is sold and income is generated. In this project the Bharti AXA Life Insurance Company is undertaken which is one of the popular sector insurance sectors. The analysis of "Bharti AXA Life Insurance" is taken from different sectors.

For creating strong relationship and for a success full business every insurance company required financial planner.

Objective of the study:

How to recruit agents for Bharti-AXA life insurance.

To understand the process of recruitment and selection of agent in life insurance.

Why people are not willing to work as an agent in life insurance sector especially with private companies.

Need of the study:

The study is undertaken to know how many people are interested to work as life insurance agent in Bharti AXA and their thinking about the Bharti AXA Life Insurance Company or about private insurance company.


In India, there is throat cut competition in the market of life insurance that brand service which adopt new strategies for sales. I concluding the whole story it can be said that people are much more aware about the aspects of life insurance and also have knowledge about the role and act of agent but mostly people unwilling to work as life insurance agent and mostly people prefer to work with LIC because it is a semi government corporation.

Table of Contents





























Industry Profile


The business of insurance is related to the protection of the ECONOMIC VALUES OF ASSETS. Every asset has a value. The asset would have been created through the efforts of the owner. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits form it. It is a benefit because it meets some of his needs. The benefit may be an income or in some other form. In the case of a factory or a cow, the product generated by it is sold and income is generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income. Both are assets and provide benefits.

Every asset is expected to last for a certain period of time during which it will provide the benefits. After that, the benefit may not be available.

There is a life-time for a machine in factory or a cow or a motor car. None of them will last forever. The owner is aware of this and he can so manage his affairs that by the end of that period or life-time, a substitute is made available. Thus he makes sure that the benefit is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it incapable of giving the benefits. An epidemic may kill the cow suddenly. In that case, the owner and those enjoying the benefits therefore, would be deprived of the benefits. The planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effects of such adverse situations. It promises to pay to the owner or beneficiary of the asset, a certain sum if the loss occurs.


Insurance has been known to exist in some form or other since 3000 BC. The Chinese traders, traveling treacherous river rapids would distribute their goods among several vessels, so that the loss from any one vessel being lost, would be partial and shared, and not total. The Babylonian traders would agree to pay additional sums to lenders, as the price for writing off the loans, in case of the shipment being stolen. The inhabitants of Rhodes adopted the principle of general average of 'general average', whereby, if goods are shipped together, the owners would bear the losses in proportion, if loss occurs, due to jettisoning during distress. {Captains of ships caught in storms, would throw away some of the cargo to reduce the weight and restore balance. Such throwing away is called jettisoning} The Greeks had started benevolent societies in the late 7 th century AD, to take care of the funeral and families of members who died. The great fire of London in 1666,in which more than 13000 house were lost, gave a boost to insurance and the first fire insurance company, called the fire office, was started in 1680.

The origins of insurance business as in vogue at present, is traced to the Lloyd's Coffee House in London. Traders, who used to gather in the Lloyd's coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas off because of bad weather spoiling the goods or sinking the ship. In India, insurance began in 1818 with life insurance being transacted by an English company, the Oriental Life Insurance Co. in 1870 in Mumbai. This was followed by the Bharat Insurance co. in 1896 in Delhi, the Empire of India in 1897 in Mumbai, The United India in Chennai, the National, the National Indian and Hindustan Cooperative in Kolkata.

Later, were established the cooperative Assurance in Lahore, the Bombay Life (originally called the swadeshi life), the India Mercantile, the new India and the Jupiter in Mumbai and the Lakshmi in New Delhi. These were all Indian companies started as a result of the swadeshi movement in the early 1900s. By the year 1956, when life insurance business was nationalized and the life Insurance Corporation of India (LIC) was formed on1st September 1956, there were 170 companies and 75 provident fund societies transacting life business in India. After the amendments to the relevant laws in 1999, the L.I.C. did not have the exclusive privilege of doing life insurance business in India. By 31.8.2007, sixteen new life insurers had been registered and were transacting life insurance business in India.

The History of Insurance in India

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 business.

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 crore from the Government of India.

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.

Life Insurance a Basic Need

Life insurance is a contract providing for payment of a sum of money to the person assured or, failing him, to the person entitled to receive the same, on the happening of certain event.

A family is generally dependent for its food, clothing and shelter on the income brought in at regular intervals by the bread winner of the family. So long as the he lives and the income is received steadily, that family is secure; but should death suddenly intervene the family may be left in a very difficult situation and sometimes, in stark poverty.

Uncertainty of death is inherent in human life. It is this uncertainty that is risk, which gives rise to the necessity for some form of protection against the financial loss arising from death; insurance substitutes this uncertainty by certainty.

Few Advantages of Life Insurance.

1. It is superior to an ordinary savings plans:

This is so because unlike other saving plans, it affords full protection against risk of death. In case of death, the full sum assured is made available under a life assurance policy; whereas under other savings schemes the total accumulated savings alone will be available. The latter will be considerably less than the sum assured, if death occurs during early years.

2. Insurance encourages and forces thrift:

A savings deposit can be too easily withdrawn. Many may not be able to resist the temptation of using the balance for some less worthy purpose. On the other hand, the payment of life insurance premiums becomes a habit and comes to be viewed with the same seriousness as the payment of interest on a mortgage. Thus insurance, in effect brings about compulsory saving.

3. Easy settlement and protection against creditors:

The life assured can name a person or persons to whom the policy moneys would be payable in the event of his death. The proceeds of a life insurance policy can be protected against. The claims of the creditors of the life assured by effecting a valid assignment of the policy. A married women's property act policy constitutes a trust in favor of the wife and children and no separate assignment is necessary. The beneficiaries are fully protected from creditors except to the extent of any interest in the policy retained by the assured.


4. Administering the legacy for beneficiaries:

It often happens that a provision which a husband or father has made through insurance is quickly lost through speculative or unwise investment or by unnecessary expenditure on luxuries. These contingencies can be provided against in the case of insurance. The policyholder can arrange that in the in the event of his death the beneficiary should receive, instead of a single sum (a). payment of the net claim amount by equal installments over a specified period of years, or (b).payment of the claim amount by smaller monthly installments over the selected period followed by a lump sum at the end thereof.

5. Ready marketability and suitability for quick borrowings:

After an initial period, if the policy holder finds himself unable to continue payment of premiums he can surrender the policy for a cash sum. Alternatively he can tide over a temporary difficulty by taking loan on the sole security of the policy without delay. Further a life insurance policy is sometimes acceptable as security for a commercial loan.

6. Tax relief:

For computing income tax (especially in India the Indian income tax act) follows deduction from income tax payable, a certain percentage of a portion of the taxable income of individuals which is diverted to payment of insurance premiums. When this tax relief is taken into account it will be found that the assured is n effect paying a lower premium for his insurance.

How Insurance Works

The mechanism of insurance is very simple. People who are exposed to the same risks come together and agree that, if any one of the members suffers a loss, the others will share the loss and make good to the person who lost. All people who send goods by ship are exposed to the same risk related to water damage, ship sinking, piracy, etc. those owning factories are not exposed to these risks, but they are exposed to different kinds of risks like, fire, hailstorms, earthquakes, lightening, burglary, etc. like this, different kinds of risks can be identified and separate groups, made including those exposed to such risks. By this method, the risk is spread among the community and the likely big impact on one is reduced to smaller manageable impacts on all.

If a Jumbo Jet with more than 350 passenger's crashes, the loss would run into several crores of rupees. No airline would be able to bear such a loss. It is unlikely that many Jumbo Jets will crash at the same time. If 100 airline companies flying Jumbo Jets, come together into an insurance pool, whenever one of the jumbo jets in the pool crashes, the loss to be borne by each airline would come down to a few lakes of rupees. Thus, insurance is a business 'sharing'.

Role of Insurance in Economic Development

For economic development, investments are necessary. Investments are made out of savings. A life insurance company is a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investments for economic growth.

An insurance company's strength lies in the fact that huge amounts come by way of premiums. Every premium represents a risk that is covered by that premium. In effect, therefore, these vast amounts represent pooling of risks. The funds are collected and held in trust for the benefit of the policyholders.

The management of insurance companies is required to keep this aspect in mind and make all its decisions in ways that benefit the community. This applies also to its investments. This is why successful insurance companies would not be found investing in speculative ventures. Their investments benefit the society at large.

The system of insurance provides numerous direct and indirect benefits to the individual and his family as well as to industry and commerce and to the community and the nation as a whole. Those who insure, both individuals and corporate, are directly benefited because they are protected from the consequences of the loss that may be caused by the accident or fortuitous event. Insurance, thus, in a sense protects the capital in industry and releases the capital for further expansion and development of business and industry.

The very existence of risk that is, uncertainty concerning the future, is a severe handicaps in economic activities. Insurance removes the fear, worry and anxiety associated with this future uncertainty and thus encourages free investment of capital in business enterprises and promotes efficient use of existing resources.

Thus insurance encourages commercial and industrial development and there by contributes to a vigorous economy and increased national productivity.

Present day organization of industry, commerce and trade depend entirely on insurance for their operation, banks and financial institutions lend money to industrial and commercial undertakings only on the basis of the collateral security of insurance. No bank or financial institution would advance loans on property unless it is insured against loss or damage by insurable perils.

Insurers are closely associated with several agencies and institutions engaged in fire loss prevention, cargo loss prevention, cargo loss prevention, industrial safety and road safety. Before acceptance of a risk, insurers arrange survey and inspection of the property to be insured, by qualified engineers and other experts.

The object of these surveys is not only to assess the risk for rating purposes but also to suggest and recommend to the insured, various improvements in the risk, which will attract lower rates of premium and what is more important , reduce the loss potential. For example, burglary surveyors make recommendation in regard to security measures such as better locking system, appointment of Watchman, etc. Engineering surveys play a most useful part in accident prevention as valuable technical advice is provided in respect of plant and machinery.

Insurance ranks with export trade, shipping and banking services as earner of foreign exchange to the country. It helps to earn foreign exchange and represent invisible exports.

List of Insurance Companies Listed in Different Years

List of Life Insurance Companies




Date of Reg.

Name of the Company




HDFC Standard Life Insurance Company Ltd.




Max New York Life Insurance Co. Ltd.




ICICI Prudential Life Insurance Company Ltd.




Kotak Mahindra Old Mutual Life Insurance Limited




Birla Sun Life Insurance Company Ltd.




Tata AIG Life Insurance Company Ltd.




SBI Life Insurance Company Limited .




ING Vysya Life Insurance Company Private Limited




Bajaj Allianz Life Insurance Company Limited




Metlife India Insurance Company Ltd.




Future Generali India Life Insurance Company Limited




IDBI Fortis Life Insurance Company Ltd.




Royal Sundaram Alliance Insurance Company Limited




Reliance General Insurance Company Limited.




IFFCO Tokio General Insurance Co. Ltd




TATA AIG General Insurance Company Ltd.




Bajaj Allianz General Insurance Company Limited




ICICI Lombard General Insurance Company Limited.




Apollo DKV Insurance Company Limited




Future Generali India Insurance Company Limited




Universal Sompo General Insurance Company Ltd.




Reliance Life Insurance company Ltd.




Aviva Life Insurance Co. India Pvt. Ltd.




Sahara India Insurance Company Ltd.




Shriram Life Insurance Company Ltd.




Bharti AXA Life Insurance Company Ltd.




Future general Indai life Insurance Co.Ltd




IDBI Fortis Life Insurance Company Ltd.




Canara HSBC Oriental Bank of Commerce Life

Insurance Company Ltd.




Aegon Religare Life Insurance Company Ltd.




DLF Pramerica Life Insurance Company Ltd.

List of General Insurance Companies




Cholamandalam General Insurance Company Ltd.




Export Credit Guarantee Corporation Ltd.




HDFC-Chubb General Insurance Co. Ltd.




Bharti Axa General Insurance Company Ltd.




Raheja QBE General Insurance Co. Ltd



History of Bharti AXA Life Insurance

Bharti AXA Life Insurance is a joint venture between Bharti, one of India's leading business groups with interests in telecom, agri business and retail, and AXA, world leader in financial protection and wealth management. The joint venture company has a 74% stake from Bharti and 26%stake of AXA.

The company launched national operations in December 2006. Today, company have over 8000 employees across over 12 states in the country and a national footprint of distributors trained to provide quality financial advice and insurance solutions to the large Indian customer base. Open first branch office in Hyderabad. Introduces 2 unit linked products- "future confident' and 'wealth confident'

As we further expand our presence across the country with a large network of distributors, we continue to provide innovative product and service offerings to cater to specific insurance and wealth management needs of customers. Whatever your plans in life, you can be confident that Bharti AXA Life will offer the right financial solutions to help you achieve them.

Bharti-AXA perform over following cities



















To be a leader and the preferred company for financial protection and wealth management in India


Team Spirit






To achieve a top 5 market position in India through a multi-distribution, multi-product platform

To adapt AXA's best practice blueprints as a sound platform for profitable growth

To leverage Bharti's local knowledge, infrastructure and customer base

To deliver high levels of shareholder return

To build long term value with our business partners by enhancing the proposition to their customers

To be the employer of choice to attract and retain the best talent in India

To be recognised as being close and qualified by our customers

Bharti Group


Bharti Airtel Ltd

Bharti Airtel Ltd is one of Asia's leading telecommunications service providers. The Company is India's largest integrated telecom company in terms of customer base and offers Mobile Services, Fixed Line services, Broadband & IPTV, DTH, Long Distance and Enterprise services. Airtel also offers mobile services in Sri Lanka on a state-of-the art 3.5 G network. 


Bharti TeleTech Ltd

Bharti Teletech is India's leading telecom & allied Products Company. It is one of the largest manufacturers of landline telephones in the world. With a strong distribution network across the country, the company is also the primary distributor of IT and Telecom products from international brands such as Motorola, Blackberry, Thomson, Polycot, Transcend, and Logitech. 


Telecom Seychelles Ltd

A subsidiary of Bharti, Telecom Seychelles Ltd provides comprehensive telecom services including 3G mobile services in Seychelles, under the 'Airtel' brand.


Comviva Technologies Ltd

Comviva is the leading provider of integrated VAS solutions for mobile operators in emerging markets. Among the top 3 global providers of integrated VAS solutions in rapidly growing markets, Comviva has deployed solutions for over 100 mobile operator customers in over 80 countries worldwide.


FieldFresh Foods Pvt. Ltd.

FieldFresh Foods Pvt. Ltd., is a venture between Bharti Enterprises and Del Monte Pacific Limited, to offer fresh and processed fruits and vegetables in the domestic as well as international markets, including Europe and the Middle East.


Bharti Retail Pvt Ltd

Bharti Retail is a wholly owned subsidiary of Bharti Enterprises. Bharti Retail operates a chain of multiple format stores that offer consumers affordable prices, great quality and wider choice. The company's neighborhood format stores operate under the "Easy day" brand and the compact hypermarket format under the "Easy day market" brand. 


Bharti AXA General Insurance Company

Bharti AXA General Insurance is a joint venture between Bharti Enterprises and AXA, world leader in financial protection and wealth management. The company was incorporated in July 2007 and offers a full suite of general insurance solutions to meet the needs of businesses and individuals alike.


Bharti AXA Life Insurance Company

Bharti AXA Life Insurance Company Ltd is a joint venture between Bharti Enterprises and AXA, world leader in financial protection and wealth management. The company offers a range of life insurance and wealth management products with an Endeavour to help customers lead a confident life.  


Bharti AXA Investment Managers Pvt. Ltd.

Bharti AXA Investment Managers Pvt. Ltd., an asset management company in India, is a joint venture between Bharti Enterprises, AXA Investment Managers (AXA IM) and AXA Asia Pacific Holdings (AXA APH).


Centum Learning Limited

Centum Learning Limited provides end-to-end learning and skill-building solutions to several large corporates. It provides solutions that impact business performance through enhanced employee productivity, customer profitability and effective talent transformation.


Jersey Airtel Ltd

Jersey Airtel, a subsidiary of Bharti, offers world-class mobile services in Jersey (Channel Islands) over its full 2G, 3G and HSDPA enhanced network. The Company brings market-leading products and services to its customers under Airtel-Vodafone brand.


Bharti Foundation

Bharti Foundation was set up in 2000, with the vision, "To help underprivileged children and young people of our country realize their potential". It aims to create and support programs that bring about sustainable changes through education and the use of technology and information.


Bharti Realty

Bharti Realty Limited is a young, vibrant and dynamic realty company with expanding interests in commercial, retail and residential real estate. Bharti Realty aims to be amongst the most admired real estate players in India and aspires to attain highest degree of customer trust through superior product design and maintaining an uncompromising stand towards environmental responsibility, ethics and safety


Bharti Infratel

Bharti Infratel, a wholly owned subsidiary of Bharti Airtel, provides passive infrastructure services on a non-discriminatory basis to all telecom operators in India. Bharti Infratel also holds approximately 42% stake in Indus Towers, a joint venture between Bharti, Vodafone and Idea to offer passive infrastructure services.

Bharti Enterprises

Bharti Airtel Ltd:

Bharti Airtel Ltd is India's leading provider of telecommunications service. The company has 4 distinct Business divisions- mobile and telephone services, broadband services, long distance services and enterprise services,

Bharti Teletech Ltd

Bharti Teletech Ltd manufactures and exports world-class telecom equipment under the brand 'Beetel'.

Telecom Seychelles Ltd

Telecom Seychelles ltd provides telecom services in Seychelles, under the brand 'Airtel'.

Bharti AXA Life Insurance

Bharti AXA Life Insurance is a joint venture between Bharti, one of India's leading business groups with interests in telecom, agri business and retail, and AXA, world leader in financial protection and wealth management. The joint venture company has a 74% stake from Bharti and 26%stake of AXA.

Bharti Telesoft Ltd

Bharti Telesoft Ltd delivers best-in-class,

Revenue-critical Vas products and service to telecom carriers,

Tele Tech Service Ltd

Tele Tech Service (India) Ltd is Joint venture with Tele Tech Inc., U.S.A. It offers a range of Customer Management Services.

Field Fresh Foods Pvt Ltd

Field Fresh Foods Pvt Ltd is Bharti's Venture with EL Rothschild Group owned ELRO holding India Ltd., to export fresh Agricultural products exclusively to markets in Europe and USA.


AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Western Europe, North America and the Asia/Pacific area. AXA had Euro 1,315 billion in assets under management as of December 31, 2006. For full year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying earnings amounted to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million.

The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange. The AXA American Depository Share is also listed on the NYSE under the ticker symbol AXA.

AXA Asia Pacific Holdings

AXA Asia Pacific Holdings Ltd (AXA APH) is listed on the Australian stock exchange and is 52.3% owned by AXA SA. AXA APH is responsible for AXA SA's life insurance and wealth management businesses in the Asia-Pacific region. It has operations in Australia, New Zealand, Hong Kong, Singapore, Indonesia, Philippines, Thailand, China, India and Malaysia. AXA APH had A$106.4 billion in total funds under management and administration at 30 June 2007 and reported a profit after tax before non-recurring items of A$374.0 million for the six months ended 30 June 2007.

Products of Bharti-AXA Life Insurance

Bright stars

This is a regular premium unit-linked insurance policy, which, which offers you the twin benefits of protecting your loved ones and creating wealth for them over the desired period.

As a caring parent, you want only the best for your child. As your child grows, his aspirations will grow too and so will your responsibilities. Whether it's higher studies abroad, a grand wedding or a comfortable home … you can now ensure that your child is always one step ahead

You can fulfill all the dreams you have for your child, and give him what he deserves. A bright future!

The plan also offers the flexibility to make modifications, depending on the changing needs of your child. As his dreams grow, the plan will grow too… so financial hurdles will never come in the way of his growing dreams! With Bharti AXA Life Bright Stars,



Minimum age at entry

18 years

Maximum age at entry

70 years minus policy benefit period chosen.

E.G: for policy benefit period of 17 years, the maximum age at entry is 53 years.

Maximum age at maturity

70 years

Minimum premium

Rs.15,000 p.a. for annual & semi-annual modes Rs18,000 p.a for monthly mode

Premium modes

Annual, semi-annual and monthly

Policy benefit periods available

7 years,10 years,15 years, 17 years and 20 years

Minimum top-up premium

Rs. 2,500

Spot suraksha


Spot Suraksha is a unit liked insurance product, which offers you an instant insurance protection and benefit of wealth creation in the long-term.

Main Advantages of Spot Suraksha

Understand the product:(Read and understand the product brochure)

Answering the simple health related questions, Sign up the simple application form, submit photograph, proofs for identity, address and age.

A cover note is issued to policy holder and insurance cover starts instantly.

100% allocation of premium- Full allocation of premium to the Investment Fund, according to policy holder choice from 2nd year onwards.

A guaranteed special addition equal to 130% of annualized premium in the first policy year is added in the policy fund at maturity or death, which is earlier.



Minimum age at entry

5 years

Maximum age at entry

55 years

Maximum age at maturity

70 years

Minimum premium

Rs. 12,000 p.a

Premium Modes

Annual, Semi-annual and monthly

Policy term

15 years

Minimum top up premium

Rs. 5,000

Dream life pension

Let you live your retired life king-size

This plan is made for old persons and to make them self independent and live a life of dignity and self-respect. Today you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think.

The bharti AXA Life Dream life pension gives you:

A post retirement income for life.

Policy holder choose the age at which he/she would like to retire (vesting age), which determines your premium paying term. Alternatively you can opt for single premium payment.



Minimum age at entry

18 years

Maximum age at entry

70 years

Minimum age at vesting

Maximum age at vesting

45 years

80 years

Premium modes

Single pay, yearly, Half-yearly ,Quarterly and monthly

Minimum premium

Annual Regular Premium:

Rs.12, 000p.a.

Minimum policy term

10 years

Minimum top-up premium

Rs.2, 500 and no maximum limit on top-up premium and top up allowed only after first policy year.


This is a regular premium unit-linked insurance policy which offers you the twin benefits of protection against financial loss in the unfortunate event of the death and helping you to create wealth systematically over the long-term. Hence this product is suitable for your long-term objective like retirement planning, children's future and giving a total protection to you and your family.



Minimum age at entry

0 year

Maximum age at entry

60 years (For death benefit option A)

55 years (For death benefit option b)

Maturity age

80 years (for death benefit option A)

75 years (for death benefit option B)

Policy benefit period

80 year less age at entry (for death benefit option A)

75 years less age at entry (For death benefit option B)

Premium payable period

Yearly, Half-Yearly And Monthly

Minimum premium


Minimum Top-up premium


Benefits of Bharti AXA Life merit plus

In merit plus the policy holder must have to choice one option out of the two.

1. Sum assured(less all partial withdrawals made from the basic policy fund during the 12 months prior to the date of death of life assured) or the policy Fund Value as on the date of intimation of death, which is higher, will be paid.

2. The sum of sum assured and the policy fund value as on the date of intimation of death will be paid.

Future confident

Future confident is a suitable product for you, if your objective is long-term targeted wealth creation over 15-20 year, either for your own retirement or for your children's future, while at the same time providing your family enhance financial protection.



Minimum age at entry

0 year

Maximum age at entry

60 years

Maturity age

70 years

Policy benefit period

70 year less age at entry

Premium payable period

Yearly, Half-Yearly, quarterly and Monthly

Minimum premium

Rs.10,000 for yearly, 5,000 for half-yearly 2,500 for quarterly and Rs.834 for monthly premium

Minimum Top-up premium


Secure Confidence

Provide complete financial protection to your family, even when you are not there.

Secure confident is suitable to you if your objective is to protect your family against any financial loss caused due to unfortunate death, disability due to an accident or critical illnesses which may deprive them of a secured future.



Minimum age at entry

18 years

Maximum age at entry

55 years

Minimum sum assured

Rs.5 ,00,000

Minimum premium

RS.1,500 for yearly,Rs.780 for half-yearly, Rs.405 for quarterly and Rs.135 for monthly premium

Policy benefit period

5,10,15,20 and 25 years

Maximum age at maturity.

60 years

Premium paying term

Equal to the policy benefit period.

On death

On survival

A sum assured is paid to the policy holder or nominee and the policy shall be terminated.

The policy shall be terminated and no monies shall be payable to the policy holder.

Introduction of the process of recruitment and selection of agent

Objectives of the study

To understand the process of recruitment and selection of agent in Bharti AXA life insurance.

How to recruits agent for Bharti-AXA life insurance

To know about the view of general public about the job of agent

Why people are not willing to work with as an agent, especially with private player.

Meaning of Recruitment

Finding the right people is a make-or-break factor for success in business today. Recruiting the top talent for a job takes time and you have to attract quality candidates who have the knowledge and skills needed to help your company grow.

The fact is, your success with recruitment depends on how well you prepare your job ad, and use source of recruitment, and your interviewing skills.

Prepare a job ad that works to start, you want to be sure that your potential candidate truly understands the job. The clearer you are with the task description, working conditions and advantages, the less time you will waste examining and rejecting applications

The essentials of any job description are:

A brief description of your company

Detailed outline of the tasks involved

Qualifications and experience required

Equipment and resources used to do the work

Skills required using them.

However, you should also include work benefits (e.g., vacation, travel and perks), general working conditions (e.g., scheduling, outside work) and the specific traits required (e.g.,

teambuilding and communications skills). Ultimately, you want to be perceived as an attractive employer in a competitive market.

Find the right recruitment vehicle choose the vehicle that best works for your company, depending on your budget and resources.

Word of mouth, or simply telling your employees, friends and colleagues about a job opening, is a less expensive strategy but generates fewer candidates. The advantage is that you already know something about your recruiters and their skills, knowledge and achievements. This is a preferred method with companies that have a finder's fee program for their employees.

Advertising is a toss of the dice. If it goes well, it can help you find ideal candidates in a regional, national, or international pool. If not, it's a costly investment yielding few results. Make sure to factor in the time it takes to go through

a large number of resumes.

Employment agencies cost more but generally provide a good range of candidates. The employment advisors look at your needs, screen a number of candidates, and only send you the applications that meet your requirements. Bear in mind that the largest employment agencies do not necessarily offer the best choice of candidates. There are numerous agencies that specialize in recruitment in specific sectors.

Recruiting online such as monster.ca, workopolis.com, and jobboom.com. These can provide inexpensive, worldwide access to employees. In fact, 65% of job seekers now have access to these types of services.

Using the Internet for recruiting usually involves regular visits to specialized recruitment sites, joining newsgroups, and posting your job openings on recruitment sites, electronic publications and on your own Web site.

After recruitment the next part is selection of best candidates.

Make the interview deliver

Since the purpose of an interview is to identify and verify the candidate's potential, it should be structured to bring out all the desired competencies and aptitudes. Remember that you have to decide between the candidates: you could create a point system or analysis grid for comparing their strengths and weaknesses.

Here are a few points to consider when structuring an interview:

Make a list in advance of the points for discussion and corresponding questions.

Present the candidates with a situation they could face on the job and ask them how they would react. This will enable you to evaluate the candidates' knowledge, skills and work methods.

Ask the candidates to describe some difficult situations encountered in previous jobs and to explain the way in which they were resolved. This will give you the chance to gauge the candidates' self-confidence, creativity and problem-solving skills.

Ask the candidates to describe a difficult situation involving colleagues and how it was resolved. This will enable you to test their aptitude for teamwork.

Ask the candidates about their ambitions and plans to ensure they fit your company profile.

Beware of asking questions about personal interests. They can get the interview off track or annoy people who want to keep their work and private lives separate.

Definition of Agent

According to section 182 of Indian contracts Act, an "agent" is a person employed to do any act for another or to represent another in dealing with a third person. In the insurance industry, the term "agent" is ordinarily applied to a person engaged by the insurer to procure new business. The insurance Act definers and insurance agent as one who is licensed under Section 42 of that Act and is paid by way of commission or otherwise, in consideration of his soliciting of procuring insurance business, including business relating to the continuance, renewal or revival of policies of insurance. He is, for all purposes, an authorized salesman for insurance and needs a license.

An agent is one who acts on behalf of another. The "another" on whose behalf the agent acts, is called the principal in this case. The insurance company is the principal in this case. The lawyer is the agent of the client, when he argues the case in court. An ambassador is an agent of his country. The agent represents the principal and acts on his behalf. Some insurers designate their agents as 'advisers"," consultants" etc. as if they are independent advisor or consultant would not be appointed by an insurance company. He would be knowledgeable enough as a person to be approached for advice or consultation. Some insurance agents may acquire that status. All insurance agents should strive to attain that status.

Procedure for becoming an Agent

The insurance Act, 1938 lays down that an insurance agent must possess a license under Section 42 of that Act. The license is to be issued by the IRDA. The IRDA has authorized designated persons, in each insurance company, to issue the licenses on behalf of the IRDA.

In terms of the Insurance Act, licenses will not be given if the person is


found to be of unsound mind,

found guilty of criminal misappropriation or criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence

found guilty of or knowingly participation in or conniving at any fraud, dishonesty or misrepresentation against an insurer or an insured,

not possessing the requisite qualifications and specified training,

Found violating the code of conduct as specified in the regulations.

The fee for a license is Rs.825 for individual. A license is granted for 3 years. It may be renewed after 3 years and again valid for 3 years.

A licence issued by the IRDA may be to act as an agent for a life insurer, for a general insurer or as a composite insurance agent working for a life insurer as sell as a general insurer. No agent is allowed to work for more than one life insurer or more than one general insurer.

The Qualifications necessary before a licence can be given are that the person must be

Not a minor.

Have passed at least the 12th standard or equivalent examination, if he is to be appointed in a place with a population of 5,000 or more. (10th standard otherwise.)

Have undergone practical training for at least 50 hours in life or general insurance business, as the case may be, form an institution, approved and notified by the IRDA. IN the case of a person wanting to become a composite insurance agent, the applicant should have completed at least 75 hours practical training in life and general insurance business, which may be spread over six to eight weeks.

d) Have passed the pre-recruitment examination conducted by the insurance institute of India or any other examination body authorized by the IRDA.

The licence once issued, can be cancelled whenever the person acquires a disqualification. Applications for renewal have to make at least thirty days before the expiry of the licence, along either the renewal fee of Rs.250. If the application is not made at least thirty days before the expiry, but is made before the date of expiry of licence, an additional fee of Rs.100 is payable . If the application is made after the date of expiry, it would be normally being refused.

Prior to renewal of the licence, the agent should have completed at least 25 hours practical training in life or general insurance business or at least 50 hours practical training in life and general insurance business in the case of a composite insurance agent.

Insures who select agents for appointment, make arrangements for training, for appearing in the prescribed examinations, and obtaining the licence.


The insurance Act provides, In Section 44, for payment of commission on renewal premium even after termination of the agency. The commission will be limited to a rate not exceeding 4%, to be eligible for this; the agent should have been an agent with that insurer for at least

five years and policies for at least Rs50,000 are in force one year before termination of agency or,

10 year.

This commission will be payable to the heirs of the agent after the agent's death.


Understanding the prospect's needs and persuade him to buy a plan of life insurance that suits his interests best.

Complete the formalities:- paper work, medical examination, which are necessary to get the policy expeditiously.

Keep in touch to ensure that changing circumstances are reflected in the arrangements relating to premium payments, nomination and other necessary alterations.

Facilitate quick settlement of claims.

Be totally honest with both the prospect and the insurer.

Not to induce prospects to submit wrong information.

Career with Bharti AXA

Opportunity to earn unlimited income.

Career Growth.

Be your own boss.

High quality training & Support to improve productivity.

Compensation amongst the best.

Club member benefits.

Payout structured to facilitate your cash flows better.

Best in class & competitive products.

Pension for life.

Recruitment Process

Develop a Profile

Develop sources of recruitment

Approaching the

Targeted recruits

Initial screening and Interviews

Reality check

Sources of Recruitment



Job Ads/Inserts

Natural Market

Placement Consultants

Central of Influence

Presentation / Seminar

Agent gets Agents

Cold Prospecting

Data Base



Controlled Market

Natural market

Your family

Your friends

People at job/business


Extended Natural market

The following are sources of names:

People know through children.

People know through spouse.

People know through hobbies/ games.

People known through social groups

People known through public service.

People you do business with.

Friends of friends.


People with influence and prestige, other member of society believe and faith on them.

People who have a big circle of relationships: like secretary in societies, president of an association.

People who are known to you and are wiling to help you.

People who have contacts with the class of people you want to deals with.

People who have faith in your leadership.

A centre of influence is a person who is in contact with many people through social, political, religious or business angulations

Usually a respected individual with influence over the people with he/she is in contact.

Uncontrolled Sources

Job Ads/Inserts

This program should be on regular long range basis.

Example: Navajeevan sharma who is a relationship officer in bhrati AXA Life Insurance company put an ad in the newspaper, in which he called for the reader to phone him during a specified 2 to 4 hours period on Monday or Sunday morning

From those who called Navjeevan Sharma was able to eliminate more misfits (who are not qualified) and arrange for two to six personal visits.

Placement consultants

MOA can recruit a placement consultant or register him self in internet job search sites to get list of prospects.

Seminars/job fairs

Manager of agency can also organized seminars at

management institutes and colleges.


Bharti AXA life insurance company participate in the job fairs and then short list

prospects and then look for further opportunities for them.

Cold Prospecting

MOA can use the telephone directory.

MOA and telecaller can use the directories of various business and social organizations.


Primary data: Direct collection of data of from the source of information, technology including personal interviewing, survey etc.

Secondary Data: Indirect collection of data from sources can be purchased from the open market and various kind of database are available such as telephone databases of various surveys.

Point to be noted while recruiting the Agents

Mature and responsible family person.

Ambitious, hungry for recognition, challenges.


Experience and current designation.

For how many years he is living in the city.

Greedy person.

Occupation of parent.

Family income.

Any experience in life insurance sector.

Leadership qualities.

Social and amiable.

Sources for Recruitment and Selection of Agent

used during Training

Natural Market

Market Survey

Secondary Data (Telephone Directory)

Telephone Script

Hello sir,

I am Paramjit Singh from Bharti AXA. I want your few minute to speak.

Sir, Bharti AXA is going to expend the Business by recruiting quality people and offering them the potential of a very rewarding career opportunity.

We have acquired your business card and we are aware of the company you work for and you are one of the selective person with whom our company want to concern.

So I would like to meet you for coffee to explain the exciting and rewarding opportunity. It may have for you in terms of career compensation and support..

(Excellent I look forward to meeting you please May I have your address and I will confirm our meeting in writing)


(According to your convenience will you please tell me when and where we can meet?)

Thank You Sir.

Step 1. Documents Required

Age proof.

Address proof.

Photo - 8.

Education proof.

Q score sheet.

Agency application.

Form V A.

Fill NAAF.

Step 2. Interview section

During the interview the senior manager/MOA asked following question to the candidate to judge his ability and knowledge.


Present occupation.

Knowledge or experience in insurance sector

Tenor of stay in the town.

Number of family member.

Household income.

Occupation of parent.

If selected then the senior manager/MOA approve the application.

The managers take the help of scoring Mechanism. Scoring Mechanism was filled at the time of apply.


Below 25 years

Between 25-40

More than 40


Scoring mechanism




Marital status






10th standard or 12th standard


Post graduate




Tenor of stay in city/town

Less than 3 years

3-5 years

More than 5 years




Household income

Less than 2 lakhs

2-5 lakhs

More than 5 lakhs

Total score

Q Score:

Acceptable Range of Score Greater than or equal to 7

Additional Approvals 5 or 6

Rejected application if 4 or less

If the Q score is less than 7 then BSM/ARSM comments and signatures are required.

Step 3. Training

50 Hours Training and also provide a text book (IC-33 life insurance) for pre-recruitment Examination for Life Insurance Agents, which is based on syllabus prescribed by insurance Regulatory & Development Authority.

IRDA for short, has laid down that those who wish to become insurance agents will be given licenses only after they complete a course of study, training and pass an examination prescribed by it.

During this training the knowledge about the entire essential concept related to life insurance is provided to agent. Insurers will have different practices and offer different benefits in their plans. All of them will be based on these concepts. The details of the practices and the plans of each insurer will have to be learnt from the respective insures.

Step 4. During training following things will be teaches.

What is insurance

Principles of life Assurance

Premiums and Bonuses

Life Insurance products


Insurance Documents

Policy conditions


Linked life insurance products

Insurance agency

Laws and Regulations

IRDA Regulation 2000.

IRDA Regulation 2002.

Step 5. Examination and Code

Examination is the second last part of the recruitment and selection process.

It include one hour test under, which contain 50 objective questions, one marks each,

Pass marks are 25.

There are two method of examination.



In case of online the result is declared on the spot and in the case of manual result is declared within one month.

After clearing the exam, ULIP training of two days will be given to the advisor about the product of company and then agency code is generated.




Objectives of the study

To understand the process of recruitment and selection of agent in Bharti AXA life insurance.

How to recruits agent for Bharti-AXA life insurance

To know about the view of general public about the job of agent

Why people are not willing to work with as an agent, especially with private player.

Research Methodology

Research Methodology is the investigation of specific problem in detail. At first problem is defined carefully for conducting research. There should be a good research plan for conducting research. No research can be done without data collection. After all this analyze is made for getting solution for problem.

Defining the problem

Defining the sampling plan

Collection of data

Analyze and interpretation

Defining the problem

Defining the research problem is first necessary step for any research. This work should be done carefully. Here research problem is to know wiliness of general public to work as an agent with private player or Bharti-AXA life insurance.

Sampling plan

The sampling plan calls for three decisions.

A) Sampling Unit: I have completed my survey in LUCKNOW.

B) Sample Size: The selection of 20 respondents. The sample was drawn from shopkeepers. The selection of the respondent was done on the basis of simple random sampling.

C) Contract methods

I have conduct the respondent through personal interviews

Research Instrument

A close friend questionnaire was constructed for my survey. Questionnaire consisting of a set of questions made to filled by various respondents.

Collecting the Information

After this, I have collected the information from the respondent with the help of questionnaire.

Analyze the Information

The next step is to extract the pertinent finding from the collected data. I have tabulated the collected data & developed frequency distributions.

Thus the whole data was grouped aspect wise and was presented in tabular from. Thus, frequencies & percentages were to reder impact of the study.

Presentations of Findings

This was the last stop of the survey.

Data Presentation and Interpretation

Name: - Address:-


Mobile no.

Shop Type:- (Mobile stores, General store, Chemist etc. Please specify


Bharti has expanded into new territories of business and they now offer the best

in class insurance products. This new venture is named Bharti-AXA.

Mr. Sunil Bharti mittal is introducing insurance to Punjab and Chandigarh retailers and would like to give you an opportunity to earn and setup a new income which can give you 15-20% margin on an average.

In this business you only have to contact your known people or regular customers and their references to introduce Bharti's product and get an appointment.

Post this, manager form Bharti-AXA will go, explain the product & close the sale for you. You will in turn receive 15-20 % margin on sale. E.g. if a policy is sold by Bharti-AXA manager for 10,000 you will receive 2,000.

We are here to understand your interest in this proposal specially designed by Mr. Sunil Bharti Mittal for U.P

Would you be interested in taking up this business opportunity with Bharti?

Yes No

Only 20% shopkeepers were interested in taking up this business opportunity with Bharti.(8 shopkeeper were interested in this activity)

How much time can you dedicate per day for this activity?(For getting Appointments)

½ hr 1-2 hrs 3-h hrs 5 hrs or more

From the above 8 people , 6 people said that they can spend ½ hour for this activity daily.

2 said that they can spent ½ to 2 hours for this activity.

3) Do you have any knowledge of or experience in Insurance?

Yes No

80% of shopkeeper said that they have knowledge about insurance.

20% of shopkeeper said that they have no knowledge about insurance.

Do you have Experience as an agent?

Yes No

15% of shopkeepers have experience in the field of life insurance.

85% of shopkeepers have no experience in the field of life insurance.

If yes, then please specify the name of the company.

Out of 6 people 33%(3) of shopkeeper working with LIC

33% (2) of shopkeeper working with HDFC Standard Life insurance

33% (1) of shopkeeper working with ICICI Prudential Life Insurance Co. Ltd.

Can you spare 1/2 day on training to understand to product and how can introduce it to your customer?

Yes NO

10 % of shopkeepers were interesting to spare 1/2 day on training to understand to product.

Name: - Address:-


Mobile no.

Shop Type:- (Mobile stores, General store, Chemist etc. Please specify


Would you be interested in taking up this business opportunity with Bharti?



How much time can you dedicate per day for this activity? (For getting


½ hr

1-2 hrs

3-h hrs

5 hrs or more

Do you have any knowledge of or experience in Insurance?







If yes, then please specify the name of the company.

Can you spare ½ day on training to understand the product and how can introduce it to your customer?



How many people do you know in this city?

Under 50




Above 600


I didn't get complete feed from the shopkeepers about the question as they are busy in there work and had less time to fill questioned.

Sincerity of answering the questions cannot be judged.

Time was the major constraint for me to understand the long process of recruitment and selection.

Limited money available for project.


Why people are not ready to work with private players in life insurance?


Why people are not ready to work as an agent in any company?

In these days LIC created a very well image in the mind of General public because it is semi Government Company and also an oldest company. In short most people of Indian believe upon the LIC only.

During the training period we felt that most of people who are already working in insurance sector think that it is easy to sell the product of LIC than to sell the product of other life insurance company.

Most of people say that this job affects upon their social relation with

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