CONTENTS

 INDUSTRY PROFILE
 INDUSTRY MISSION
 INDUSTRY VISION
 COMPANY PROFILE
 RESEARCH METHEDOLOGY
 DATA ANALYSIS& FINDINGS
 RECOMMENDATIONS
 CONCLUSION
 BIBLIOGRAPHY
 ANNEXURES
DEVELOPMENT OF THE INSURANCE SECTOR

Brief History:

Insurance Companies operating in Cyprus were originally being registered in

England under the English insurance law, due to lack of legislation. It took
nine years after the independence of Cyprus for a law to be passed allowing
the establishment of local insurance companies. Since the insurance
companies law was passed, a great deal of progress was observed in the
insurance sector in the number of insurance companies formed & also in the
volume of premiums generated.

With the applications of insurance companies law of 1969& the

creation of local insurance companies, as mentioned above, the institution of
an association because necessary & more independent from the British
association & started developing its own initiatives & policies on the
different issues concerning its members. During 1970 the premium tariffs
applied by all insurance companies in Cyprus, were no longer used &after a
short period of time had completely disappeared from the market. This was
due to the fact that insurance companies were employing more and more
professional people.

As early as 1925, the insurance companies then operating in

Cyprus which were mainly agencies of British companies, formed there
association. The fire insurance association, the marine insurance association
& the accident insurance association. With the continuous growth of the life
Assurance business, a fourth group was formed in 1976, which led to the
establishment of a unified body which was registered as a
Company limited by guarantee under the name insurance association of
Cyprus.
History of insurance industry in India

The insurance sector in India governed by insurance act 1938, the life
insurance corporation act, 1936 and general insurance act.
The story of insurance is probably as old as the story of man
kind. The same instinct that prompts modern businessman today to secure
themselves against loss &disaster existed in primitive man also. They too
sought to avert the evil consequences of fire & flood & loss of life & were
willing to make some sort of sacrifice in order to achieve security. Though
the concept of insurance is largely a development of recent part, particularly
after the industrial era part few centuries yet its beginnings date back almost
6000 years.

Life insurance in its modern form came to India from England

in the year 1818. Oriental life insurance started by Europeans in Calcutta
was the first life insurance company on Indian soil. All the insurance
companies established during that period were brought up with the purpose
of looking after the needs of European community & Indian natives were not
being insured by these companies.

The opening up of the sector five years ago provided insurance agents
with new opportunities & an image make over as “life insurance advisor”.
 Objectives of insurance industry

-Spread life insurance widely & in particular to the rural areas &to the
socially & economically backward classes with a view to reaching all
insurable persons in the country 7 providing them adequate financial cover
against death at a reasonable cost.

-maximize mobilization of people’s saving by making insurance linked

savings adequately attractive.

-bear in mind, in the investment of funds the primary obligations to its

policy holders, whose money it holds in trust without losing sight of the
interest of the community as a whole the funds to be deployed to the best
advantage of the investors as well as the community as a whole, keeping in
view national priorities & obligations of attractive return.

-conduct business with utmost economy & with the full realization that the
money’s belong to the policy holders.

-meet the various life insurance needs of the community that would arise in
the changing social & economic environment.

-act as trustees of the insured public in their individual and collective

capacities.

-involve all people working in the corporation to the best of their capability
in furthering the interests of the insured public by providing efficient service
with country.

-promote amongst all agents & employees of the corporation a sense of

participation, pride & job satisfaction through discharge of their duties with
dedication towards achievements of corporate objectives.
Mission of the industry

Explore & enhance the quality of the life of people through financial
security by providing products & services of aspired attributes with
competitive returns & by rendering resources for economic development

Vision of the industry

A trans nationally competitive financial conglomerate of significance to

societies and pride of India .

Kotak Mahindra Old Mutual Life Insurance Limited

This life insurance company is joint venture of old mutual and Kotak
Mahindra bank limited.

OLD MUTUAL 26%

KOTAK MAHINDRA BANK LIMITED 74%

Old mutual plc. Is a world class international financial services company.

Old mutual plc. Owns the largest companies in the following areas in South
Africa

 Life insurance company

 Asset management company
 Bank
 Non life insurance company
 14th largest insurance company in the world
 Base of 4 million life assurance policyholders
 One of the best “payouts” among insurers in the world
 One of the best Solvency ratios among insurers in the
world
 A FTSE 100 financial services group and ranks as a
fortune global company
 The old mutual group manages in excess of $235 billion
in funds.
 The company is 160 years old and has prominent
presence in the United states and the United kingdom

The Kotak Mahindra Bank Limited

• The net worth of this bank of Rs1700 crores .this is the only bank
having credit rating of AAA for fixed deposits.

• Kotak Mahindra Capital Company is consistently among top 3

investment banks. Kotak securities-India’s leading stock

• Broker with a 7% market share in a fragmented market.

• Kotak Mahindra primus – consistently among top 3 car financiers.

• One of the lowest NPAs in the industry (0.16%)

Kotak Mahindra Lineage

• Consolidated net profit Rs. 73.3 crores for 2002-03.

• Consolidated Net Profit Rs 200.7 crs for 2003-04.

• Provides financial solutions to:

400 large and mid sized corporate.

Over 5,00,000 individual customers.

• Wide reach covering more than 74 cities in the country.

• Good brand image.

• Over 4000 employees.

A full growth of businesses Bank
Leadership in several businesses. Life
Fair partnership. Insurance
Empowered employees.
Mutual
Funds

Consumer
Finance

Commercial
Vehicles

Brokerage
Distribution

Investment
Banking

Car
Finance

Corporate
Finance

Trade
Finance

1985 1986 1990 1991 1992 1995 1997 1998 2001 2003

KOTAK MAHINDRA BANK LIMITED

 Kotak Kotak Kotak Kotak Kotak KMOM Kotak Kotak
Mahindra Mahindra Securities Mahindra Mahindra Life Forex Mahindra
Primus Capital JV Asset
JV with
Trustee Insurance Broker Investment
Company With Mgt. Company JV with age
Ford
J V with Gold Man Company
Credit Old
Gold Man Sachs
Internatio Mutual
nal Sachs
PLC.
Inc.

IPO’S Stock Mutual Trustee

Private Equities Broking Fund Company Life Inter
Project Advisory e-broking Insurance Bank
M&A Distribution Forex
Fixed income Banking
Primary
Dealership

KOTAK MAHINDRA SECURITIES LIMITED

KOTAK
MAHINDRA
KOTAK MAHINDRA INTERENATIONAL (U.K)
LIMITED

KOTAK MAHINDRA Inc.

KEY BUSINESS BELIEFS OF KOTAK LIFE

INSURANCE

 Commitment to the customer

  Successfully identified and converting opportunities

 Laying correct foundation and ensuring faster growth

 Innovation and customization

 Achieving dominant market positions in three to five years

 Partnerships based on mutual respect and transparency

 Focus on employee growth

 Entrepreneurial spirit

KMOM - The Partnership

Kotak life insurance Old Mutual

Brand equity Technology

Entrepreneurial employees Product innovation
Branch network Training expertise
Knowledge of the Indian market Global perspective
Access to customer base Systems and processes
Distribution associates Multi channel mgt.
Domain knowledge

Progress of Kotak Mahindra Old Mutual

It has 43 branches in 30 cities.
Big team of 7000 life advisors
980 employees
First year premium income
2001-2002: 7 crores
2002-2003: 35 crores
2003-2004: 124 crores
2004-2005: 375 crores

Ranks 2nd in terms of average premium per policy

Ranks 4th in Total advertising awareness

Unit values as on 30 July 2007

Scheme name Market buy sell price

Kotak Advantage 11.582
Multiplier Fund
Kotak Advantage 11.440
Plus Fund
Kotak Advantage 11.169
Fund
Kotak Advantage 11.430
Plus Fund II
Kotak Guaranteed 28.944
Growth
Kotak Advantage 11.482
Multiplier II
Kotak Guaranteed 23.709
Balanced
Kotak Guaranteed 12.220
Bond
Kotak Guaranteed 11.796
Floating Rate
Kotak Guaranteed 12.266
Gilt
Kotak Aggressive 27.134
Growth
Kotak Dynamic 30.174
Growth
Kotak Dynamic 11.212
Floor Fund
Kotak Dynamic 24.796
Balanced
Kotak Dynamic 12.200
Bond
Kotak Dynamic 11.793
Floating Rate
Kotak Dynamic 12.226
Gilt
Kotak Pension 23.872
Balanced
 Kotak Pension 12.153
Bond
Kotak Pension 11.805
Floating Rate
Kotak Pension Gilt 12.273
Kotak Group 24.735
Balanced
Kotak Group Bond 12.167
Kotak Group 11.878
Floating Rate
Kotak Group Gilt 12.352
Kotak Group 13.049
Money Market
Kotak Group 10.176
Growth Fund
Kotak Guaranteed 13.087
Money Market
Something about life advisor
 Life Insurance Agent
Life Insurance Advisor

Life insurance is essential to ensure the needs of your family are met in the
case of your death. The money your beneficiaries receive - the death benefit
- is income tax free and can help pay for your funeral costs, final estate
settlement costs or medical bills. Additionally, your family may also use
these funds to help maintain the lifestyle you've worked hard to build, and
help pay for your children's college education.

Why Do I Need Life Insurance?

There are many reasons for buying life insurance. If you're the primary wage
earner in the family, life insurance is a good way to help provide your family
with a stable financial future.

Even if you aren't the primary wage earner, it's important to consider life
insurance to help cover the financial burden of childcare, funeral expenses
and other unforeseen costs in the event of your death.

While it's difficult to face our own mortality, planning for it can help ease
the burden our loved ones will face later. Purchasing life insurance can help
make a difficult situation easier by providing death benefits for these other
circumstances:

• Unpaid medical bills

• Income replacement for survivors
• Unplanned or emergency expenses
• Your mortgage balance
• Future education funds for your children
• Retirement income for your spouse

What Are My Life Insurance Needs?

Life insurance can be a very important part of your overall financial plan,
regardless of your stage in life. Starting Out

This is the time when you should be considering your future financial
concerns. Generally, the younger you are, the less you pay for life insurance.
If you choose a term insurance policy, you'll find you can purchase a
substantial amount of protection for a relatively low cost.

Marriage & Family

If you marry and/or have children, your need for life insurance may become
even greater. You'll want life to go on for your loved ones should you face
an untimely death. Having enough life insurance is a way to help ensure that
your children will have sufficient funds for their education.

Children: The Early Years

If you purchase a life insurance policy for your child and he/she later
becomes uninsurable for health reasons, there will already be insurance in
force and protection for the future.

Looking Toward Retirement

At this stage in life, you may want to take advantage of the accumulated
cash value from a previously established permanent policy. If at this point,
you don't need the death benefit purchased previously, you may want to
consider using the cash value to purchase an annuity or annuities your policy
to generate a retirement income stream.

Planning Your Estate

Life insurance traditionally has been a popular way to pass money onto your
beneficiaries because generally the death benefit is free from income tax. If
the policy owner is the insured, it is included in the policy owner's estate.
You may want to consult a tax advisor when considering life insurance as an
estate planning tool.

RESTRICTIONS ON LIFE ADVISOR

Any Life Advisor found violating the restrictions listed below is liable to be
terminated from the services of the company.

1 Prohibition of Rebates

All Life Advisors have to strictly comply with Section 41 of the Insurance
Act 1938 as regards prohibition of rebates to clients. The following are the
extracts from Section 41 of the Insurance Act 1938

"No person shall allow or offer to allow, either directly or indirectly, as an

inducement to any person to take out or renew or continue an insurance
in respect of any kind relating to lives or property in India, any rebate of
the whole or part of the commission payable or any rebate of the premium
shown on the policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such rebates as may be
allowed in accordance with the published prospectuses of the insurer"

2 Restrictions on Advertisements

A Life Advisor is strictly prohibited from issuing an "insurance

advertisement" which publicizes Kotak Mahindra Old Mutual Life Insurance
Ltd. or its products unless, there is an authorization in writing from the Chief
Marketing Officer of Kotak Mahindra Old Mutual Life Insurance Ltd..

An "insurance advertisement" means and includes any communication

directly or indirectly related to a policy and intended to result in the eventual
sale or solicitation of a policy from the members of the public, and shall
include all forms of printed and published materials or any material using
the print and or electronic medium for public communication such as:

• newspapers, magazines and sales talks;

• billboards, hoardings, panels;
• radio, television, website, e-mail, portals;
• representations by intermediaries;
• leaflets;
• descriptive literature/ circulars;
• sales aids flyers;
 • illustrations form letters;
• telephone solicitations;
• business cards;
• videos;
• faxes; or
• any other communication with a prospect or a policyholder that urges
him to purchase, renew, increase, retain, or modify a policy of
insurance.

3. Payment of premiums Life Advisors are strictly prohibited from

advancing premiums on behalf of prospect or policyholders
INTRODUCTION OF HUMAN
RESOURCE MANAGEMENT
Concepts of Human Resource Management –An overview

In today era the term human resource management considers very important.
Because in this competitive world it is very difficult to retain the humans in
the organization. A person can leave his present job if he gets better
opportunities in anywhere else. Especially in case of private firms where
competition is very high so the role of human is of vital importance in every
organization. The human resource management has been recognized as a
very importance success factor for an innovative organization.
Organizational effectiveness can be increased significantly by paying close
attention to the development of integrated business and human resource
strategies for the achievement of desired organizational goals.

Human Resource Management

Human and personnel management is an integral but distinctive part of

management concerned with the people at work and their relationship with
in the enterprise.

“Human resource is the planning, organizing, directing and controlling

of the procurement, compensation, integration and maintenance and
separation of human resource to the end that individual and societal
objectives are accomplished.”

Human resource management is that branch of management that deals with

managing one of the resources of organization – Human Resource. It is
called as Personnel Management. However the terms the personnel
management is being replaced in most spheres by the term human resource
management .Most organization have their own full-fledged human resource
management department. The function of human resource management is to
acquire, train, develop and retain the human resources of the organization.
So that with the help of these human resources, the organization is able to
achieve its goals.
Aims of human Resource Management

The aims of HRM can be summarized as follows;-

• To enable management to achieve organizational objectives through

its workforce.

• To utilize people up to their full capacity and potential.

• To foster commitment from the individuals to the success of the

company through the quality and that of the whole organization.

• To integrated human resource policies with business plans and

reinforce an appropriate image.

• To establish an environment in which the creativity and energy of the

employees will be optimized.

• To create conditions in which innovation, team working and total

quality can develop.

• To maintain safe and healthy environment.

Functions

The functions of HRM can be broadly stated as:

Organizational set up and configuration

• Defining organizational structure and hierarchy.

• Updating organizational structure and hierarchy.

 • Defining and maintaining employee’s classification and hierarchy.

• Set up access and approval levels.

Recruitment

• Advertisement in various forms.

• Application processing.

• Written test and group discussions.

• Updated lists for campus recruitment

Employee Detail Maintenance

• Maintaining service record of employees.

Employee benefits detail maintenance

• Tracking changes in salary scales and allowances.

• Producing appropriate reports.

• Verifying registering and updated professional membership.

• Allowances and claims processing.

• Issuing loans and advances.

Attendance Management

• Tracking attendance registers.

• Tracking late arrivals.

 • Tracking overtime.

• Maintaining shift rosters.

• Capturing interface data.

• Generating interface reports.

Training details maintenance.

• Tracking budgetary allocations.

• Tracking internal training programme.

• Maintaining details of training institutions.

• Maintaining training request and requirement details.

• Maintaining post-training details.

• Maintaining post-training work reallocations.

Allocations, Transfers and Deputation Management

• Allocations, transfers and deputations management.

• Maintaining deputation details.

• Generating transfer details.

Performance-Appraisal Management

• Maintaining details of timely performance – appraisal reports.

 • Maintaining details of rating from appraisal officers.

• Validating details of residual leave.

Promotion-Details Management

• Generating lists of eligible candidates.

• Grading eligible candidates.

• Maintaining details of promotions

Leave details Management

• Creating leaves to employee accounts.

• Maintaining details of leave availed and required approvals.

• Maintaining details of leave encashment.

• Validating details of residual leave.

Separation Details Management

• Updating details of terminal benefits.

• Registering details of employee benefits.

• Generating reports of these details.

• Manpower planning.
Maintaining Transfer Details

• Maintaining succession details.

• Generating MIS reports.

• Generating current human resource details.

Objectives

The objective of HRM module is to manage the recruitment of a workforce

and track developments related to the employees of the organizations. These
may be assessed in the form of promotions, transfers, deputation, leave etc.
the module also provides reports on period to period details of the employee.
HRM aids in improving manpower planning and in the effective utilization
of manpower across the organization.

Activities carried out by Human Resource Management

• Manpower planning.
• Recruitment and selection.
• Induction of the new employee.
• Performance appraisal.
• Organization development
• Training and development
• Employee counseling.
• Compensation planning.
• Industrial relations.
• Employee separation.
These are the various activities carried out by the HRM department. In spite
of this “recruitment and selecting of the people,training and developing them
for their work, ensuring that payment and conditions of employment are
appropriate, where necessary negotiating such terms of employment with

trade unions , advising on health and appropriate working conditions, the

organization of people at work, and the encouragement of relations between
the management and work people.” Has been done by the HRM department.
The main work of the HRM department is to organize the training
programme for the development of the employees.
Research Methodology Adopted

Research methodology adopted

The various steps used for this training evaluation of the research
methodology are as follow:
Planning of research design
Planning of sampling design
Planning of data collection
Data processing and analysis

RESEARCH DESIGN

Research design is the framework which determines the course of action

towards the collection and analysis of required data. As the research type is
descriptive, so we will be using Descriptive Research Design to do our
Research work. The methodology of study will be through interviews,
observation and library research.

Types of Research

This research employed three types of research:

- Descriptive Research

- Analytical Research

- Qualitative Research

DESCRIPTIVE RESEARCH OR EX-POST FACT RESEARCH

To conduct the research work accurately, we conducted descriptive

research. It includes surveys and fact-finding inquiries of different kinds.
 It is done to know following facts:

o Frequency of using services of the Bank of Punjab.

o Liking in respect of service quality.
o Media for awareness of schemes.

ANALYTICAL RESEARCH

In it, we have to use facts and information already available and analysis
these to make an evaluation for project.

QUALITATIVE RESEARCH

In selecting the appropriate research design of the study and the types of
data needed, the choice of data collection techniques is four grouped. It is
done for:

o Consumer’s needs
o Consumer’s preferences for brand
o In depth understanding of consumers
o Availability for consumers.

SAMPLING DESIGN
A sampling design is that in which decision need to be taken about target
population, sampling unit, sampling size and sampling procedures.

Marketing researches usually draw inclusive about large group of

consumers by studying a small sample of the total consumers. As in the case
of Bank of Punjab, I conduct survey from some of existing clients and some
clients of other banks.
Population

Universe of the study is limited to Ambala City. In my study population is

the retail clients, and the customer of Bank of Punjab.

Sampling Unit

The sampling unit is individual.

Sample Size

Sample size of study is 100.

Sampling Procedure

Sampling procedure is convenience sampling.

Tools and Techniques of Analysis:

Data is analyzed using:-

• Tables
• Figures

Methodology

The project includes both primary & secondary sources of data. The data
collected through these sources has been organized, analyzed and interpreted
so as to draw conclusion and arrive at appropriate recommendations.
 a. Primary source of data includes personal interviews from
various customers in the bank.
b. The secondary source of data includes the Annual Report,
website of bank, which contains details which is helpful for
making my project report.

Steps of Research Methodology

Collection of Data

Organization of Data

Presentation of Data

Analysis of Data

Interpretation of Data

a. Collection of data: Both the primary and secondary data has

been collected from the market and the bank respectively. The
secondary data was provided through the annual report; website etc.
of the bank and the primary data was collected through the medium
of face to face interactions/interviews with the customers in the bank.

b. Organization of data: Data once collected needed to be

organized for further processing. Data collected by me was carefully
 gone through then the relevant and useful matter was assorted and
properly organized.

c. Presentation of data: The data collected is of no use unless

and until it is given in a presentable form. Thus, after proper
organization, the data is given in a presentable form with complete
details with the help of bar diagrams, pie charts etc.

d. Analysis of data: The data is carefully analyzed keeping in

consideration both the pros and cons for the purpose of arriving at
concrete conclusions.

e. Interpretation of data: After carefully analyzing the data, it

has been aptly interpreted in order to give concrete conclusions and
proper recommendations.

LIMITATION:

How so ever impeccable a thing may see to be there always dwell some
possibilities of failure and incompleteness. The result of this work also
subject to some of limitations, which are as follows:

• Due to shortage of time the studies conducted on very small

scale i.e. based upon material and information provided by the
company.
• I have faced a lot of problems in collecting the information
about the company because the company has refused to provide most
of the information confidential in nature.
• The data and other information provided by the company have
been relied upon and have been used as the secondary source of data.
• Some of officers were too busy to give a sincere response to
investigation and hence their response may not relate to real picture.
• The findings of the research are limited to a particular area &
cannot be applied to all places.
• As the human behavior is not constant so the results collected
through Questionnaire may or may not apply to future period of time.