MINOR PROJECT REPORTOn THE STUDY OF TATA AIG AND THE CANDIDATE SELECTION PROCESS INVOVLED Submitted by:Kritika Verma BBA (B&I)-3rd Semester Roll No. – 0131491806 Guided by:Mr. Lokesh Jindal Lecturer, Department of Business Administration. Submitted to:- An ISO 9001:2000 Certified Institute Recognised by UGC u/s 2(f) (Affiliated to Guru Gobind Singh Indraprastha University) C-4, Janak Puri, New Delhi-110058 CERTIFICATE This is to certify that the project entitled “THE STUDY OF TATA AIG AND THE CANDIDATE SELECTION PROCESS INVOVLED” submitted to MAHARAJA SURAJMAL INSTITUTE (Guru Gobind Singh Indraprastha University) in partial fulfillment for BBA Course has been carried out under my supervision. Project Guide: Mr. Lokesh Jindal Lecturer, Department of Business Administration Maharaja Surajmal Institute, Janakpuri, New Delhi-110058 2 Acknowledgement I would like to thank and dedicate this project to my project guide Mr. Lokesh Jindal , for giving me his unwavering support with which I was able to complete the project. It was a nice experience of learning and I gained a lot of knowledge by working under his kind supervision. I would like to give a special acknowledgement and thanks to all those, without whom this project could not have been possible. Kritika Verma 3 Table of contents Chapters 1. Introduction 1.1 1.2 1.3 1.4 Topic Page no. 5-10 6 7 8 10 11 36 39 41 43 Preface Objectives of the study Research Methodology Limitations of the study 2 3 4 Profile of the organisation Analysis Conclusions Bibliography Annexures 4 INTRODUCTION 5 . 6 . The company is seeking new channels for its services and opportunities to reach to more and more patrons. questionnaires were used as a powerful tool and interviews and discussions were conducted. The company.PREFACE Everyone these days needs insurance. This project was undertaken in order to select persons from various fields. And both looking for ways to increase their clientele and services to increase their business. So the whole country has become the market place for insurance companies. now provides new value-added services and ways in order to make the sphere of their clientele wider and wider. Private Indian companies and foreign ones are so numerous at present that there is a cut-throat competition environment. A lot of market surveys were undertaken for person to person contacts and the method of telecalling was also used which required a lot of time & energy besides persuasive skills. in order to survive the growing competition is in a unique position to leverage its expertise and scale. To achieve this objective. Tata AIG Life Insurance Company Ltd. OBJECTIVES OF THE RESEARCH The primary objective would be-: • The main purpose of the project is to study the working of TATA AIG LIFE INSURANCE and to design out candidate selection process for insurance advisor program. To see the availability of people and their willingness to indulge themselves in a part time career opportunity. The Other objectives would be: • • • Analysis of positive and negative things about the various means used to carry out the recruitment process. 7 . Finally to conclude the findings and suggest the necessary corrective measures and recommendations regarding the future growth prospects. A set of Questions was put together in the form of two questionnaires . The method of sampling was the random convenient sampling method. The advantages of the secondary data can be it is economical. The data such collected is original in character.com. both in terms of money and time spent. yellowpages. The researcher of the report also visited various libraries for collection of the introduction part. The advantage of this method of collections authentic. Reports. The researcher of the report also did the same and collected secondary data from various Internet sites like google. The secondary data could be collected from journals. 8 .RESEARCH METHODOLOGY TYPES OF DATA Two types of data: PRIMARY DATA SECONDARY DATA PRIMARY DATA: Primary data is the kind of data.com and many more. internet and various publications. which is collected by the investigator himself for the purpose of the specific study. SECONDARY DATA: When an investigator uses the data that has been already collected by others is called secondary data. is 50. M. which has been covered. Other information related to project has been taken from company website.I. Bani park. Sample size. 9 .DATA COLLECTION Data collected from various places such as Connaught place. road etc. developing the marketing plan for the company would require a great deal more expertise and experience. the opinions and beliefs of respondents may not represent true universe. • While an attempt has been made to explore the scope. As the sample size is small. the competition and customers. • The study was taken up in one city only and the responses may not be applicable to other cities or states. • Personal biases of respondents may also act as hindrance towards clear picture of study.LIMITATIONS OF THE STUDY • • The study results can be better applied to comparable cities and situations. 10 . PROFILE OF THE ORGANISATION 11 . INTRODUCTION ON TATA AIG 12 . Chemicals. the Tata Group's pioneering spirit has been showcased by companies such as Tata Consultancy Services (TCS). The Tata Group is one of India’s best-known industrial groups with an estimated turnover of around US $14. first private sector power utility. it has evolved into a truly diversified conglomerate spanning. and Communications & IT. first luxury hotel chain and first international airline. including: India's first private sector steel mill. The Tata Group stable of brands also includes many national and some internationally renowned product and service brands. the first car maker in a developing country to design and produce a car from the ground up. Engineering. Energy.25 billion (approximately 26% of India’s GDP). including: 13 . Recently. and Tata Motors. With more than 220. amongst others.000 employees across 91 major companies. Consumer Products. was founded by Jamsetji Tata and began with a textile mill in central India in the 1870s. From there. The Tata Group pioneered several firsts in Indian industry firsts. easily India's most recognized business group. it is also India’s largest employer in the private sector. Asia's largest software and services company.THE TATA GROUP The Tata Group. among other sectors. a hatchback that was the country's first indigenously designed and manufactured car. Since then the company has expanded its passenger cars portfolio.Tata Motors (multi-utility cars) Tata Motors. and the Indigo Marina. 1902. incorporated the Indian Hotels Company on April 1. India's largest automobile company. which now also boasts the Indigo. Tata Motors (Passenger Cars) Tata Motors has a pioneering presence in India's automobile industry. The Taj Group of Hotels (Luxury. for the ownership and operation of the renowned Taj Mahal Palace and Tower. best illustrated by the path-breaking creation of the Indica. Business and Leisure) Jamsetji Nusserwanji Tata. a sedan. a station wagon. Indian Hotels and its subsidiaries are 14 . Mumbai. manufactures two kinds of multi-utility vehicles: the well-appointed Tata Safari and practical Tata Sumo. the founder of the Tata Group. India's most preferred salt is one of the purest available in the country.collectively known as Taj Hotels Resorts and Palaces and. Tata Group enterprises are also involved in the production of food additives and spices. Moreover. Tata Salt contains the right amount of iodine. 15 . form the largest hotel chain in India Tata Tea & Tetley The Tata Group runs the world's second-largest branded tea operation. Tata Salt Besides tea and coffee. Tata Tea and Tata Tetley are the two companies that power the group's leadership drive in the worldwide tea industry. vital for physical and mental growth and development. together. Tata Salt is the No 1 food brand among India's most trusted brands. Titan Titan Industries is India's leading manufacturer of watches and the world's sixth largest manufacturer brand of watches. a division of Titan Industries. It has 74 boutiques in 55 cities across the country 16 . Tanishq Tanishq. is India's largest jewellery brand. The company makes about 7 million watches and clocks every year and has a customer base of some 60 million. It enjoys over 50 per cent market share in India's organized watch segment. The chain also sells household accessories. the Tata Group aims to be the largest and most respected global brand from India whilst fulfilling its long-standing commitment to improving the quality of life of its stakeholders. The other products and brands are: Tata Steelium. and its store portfolio comprises clothes and accompaniments for men. retails garments and household accessories. women and children. Westside is among the fastest-growing retail chains in India. globalization with national interests and core businesses with emerging ones. Tata Bearings and Voltas. store staff and in-house designers. Tata Shaktee. 17 . It has a team of dedicated merchandisers. the Tata Company that owns and operates the Westside chain of lifestyle stores. By combining ethical values with business acumen. Tata Tiscon.Westside (Garment Retail Outlet) Trent. cosmetics and perfumes. Set up in 1998. In the United States. and asset management. with operations in more than 130 countries and jurisdictions. fixed income. Inc. financial products. with specialized investment management capabilities in equities. AIG's financial services businesses include aircraft leasing.THE AIG GROUP American International Group. trading and market making. financial services. 18 . AIG member companies serve commercial. AIG's global businesses also include retirement services. institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. and is a leader in asset management for the individual and institutional markets. AIG companies are the largest underwriters of commercial and industrial insurance and AIG American General is a top-ranked insurer. is the world's leading international insurance and financial services organization.S. retirement savings businesses through AIG SunAmerica and AIG VALIC. AIG also has one of the largest U. alternative investments and real estate. American General Finance leads AIG’s growing global consumer finance business in the United States. marine. marine n contingency. For individuals: motor. energy. 19 . which started its operations in India on January 22. and accident and health n travel. Inc. travel. offers the complete range of insurance for automobile. travel. as well as several specialized financial lines. personal accident. The Tata Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 per cent stake. 2001.TATA AIG Tata AIG Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. health. is India's leading insurance company providing both Life and General Insurance. For Corporate: accident n health. property and casualty. Tata AIG General Insurance Company. Inc. home. energy. It represents the trust and integrity of TATA group combined with the international expertise and financial strength of AIG. property. is a joint venture of the Tata Group and American International Group. (AIG). INSURANCE REGULATORY DEVELOPMENT AUTHORITY (IRDA) 20 . promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. licensing and laying down regulations for proper conduct of business. The qualifications necessary before a license can be given are that the person must: Be at least 18 years old Have passed at least the 12th standard or equivalent examination Have undergone practical training for at least 100 hrs in life or general insurance business Have passed the pre-recruitment examination conducted by the IRDA. 21 . The way RBI controls all the banks. in the same manner IRDA takes control of all the insurance companies.ABOUT IRDA IRDA is a government body that protects the interests of the policyholders. IRDA NORMS FOR TRAINING AS A FINANCIAL ADVISOR • • A financial advisor must possess a license issued by IRDA. It includes registrations. to regulate. DOCUMENTS REQUIRED On the time of the registration. These are: • • • • • • 6 photographs Identification proof Date of birth proof Highest Education proof Residence proof Rs.” Payable at New Delhi. 22 . the candidate has to bring along a list of documents.Demand Draft favoring “Tata AIG Life Insurance company Ltd. 1000/. the amount of cover you receive & where the rest of your premium is invested. The various products offered are: • Invest assure.PRODUCT PROFILE OF TATA AIG PRODUCTS Tata AIG Life Insurance Company specializes in helping their customer in fulfilling their future financial goals and builds an extra security cover for their family and loved ones. 23 .Unit Linked Insurance Plan: This highly flexible plan gives you full life cover AND high returns AND the flexibility of deciding the length of your life cover term. You can choose between Assure Educare 18 and Assure Educare 21. You can even use this to create a steady stream of post retirement income. • Educare: This first of its kind juvenile endowment policy is geared toward funding your child’s education. • Shubh Life: This plan provides you 100% life insurance protection and high returns on your investment but the premiums you pay are among the lowest of any similar endowment policy.• Mahalife: This exceptional policy ensures that you have a steady income and insurance coverage for life! Premiums are payable only for the first 12 years. 24 . depending on your child’s needs. You get the dual benefits of life insurance coverage plus the flexibility of periodic payments. 25 .• Money Saver Plan : This savings plan provides you with cash payments in the form of survival benefits at regular intervals to fund your child’s needs at critical milestones or support your financial obligations. and also decide the age you want to retire. You can choose from three levels of cover. • Nirvana & Nirvana Plus: This is India’s first and only pension policy with a guaranteed addition of 10 percent of sum assured every 5 years. • Starkid: An exceptional endowment policy that ensures you can afford to give your child the very best for his career & marriage. Health Protector is the first product of its kind in India that offers you protection in case ANYONE in your family has an accident or falls ill. 26 .• Health Protector: The average cost for a major surgery or treatment in hospital is between three to five lakh. Mr. Tata AIG has 85 offices in cities.6 crore. estimated that by 2007. Tata AIG Life Insurance Co. currently dominated by the Life Insurance Corporation. and would be opening 20-25 new offices during 06-07 to cater to a larger customer base.MARKET SHARE OF TATA AIG TATA AIG Life Insurance Company has said that it aimed to be the number-two private player in the life insurance industry with a market share of 20 per cent by 2007. Managing Director. is expecting a 85-90% growth in its total premium income in 06-07. Profit from General Insurance for 05-06 is estimated to be 13. 27 . Tata AIG. Trevor Bull. private players would have about 40 per cent of the total life insurance market. The person receives World-Class training while the marketing & management support ensures their success.JOB DESCRIPTION The objective is to design out candidate selection process for insurance advisor program. Tata AIG is looking for insurance advisors to give advice and sell insurance. Inc. a company that combines the trust and integrity of the Tata Group with the expertise & financial strength of American International Group. And it pays as much as one wants it to. our main aim is to look out for eligible candidates who have the time to devote and desire to earn money and then recruit and select them as financial advisors. Tata AIG Life. 28 . So. they were interviewed and later on selected. they will be recruited and selected as Financial Advisors. wherein. For this. but the growth prospects would also be open to them. for the offered work. undertaking surveys. We were supposed to make calls to people. make them aware of this opportunity and arranging appointments with our manager. not only will they earn a lot..DETAILED JOB PROFILE The project required me to approach people and make them aware of the part-time business opportunity that Tata AIG is offering. 29 . etc. we collected data through various means and some of it was provided by the company as well. if eligible. Here. After this. sources and means Selection Criteria Selection Procedure 30 .Our project in Tata AIG involved the following tasks: Recruitment: ways. we have followed a series of processes in selection of a Financial Advisor. at Tata AIG. It can also be defined as: It is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job. 31 . Here.THE SELECTION PROCESS SELECTION PROCESS Selection is the process of picking individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. • Natural Market: This also is a very important factor. • • Time: The candidate should have enough time and proper focus for the training as well as for the work. if he has a natural market he can sell insurances to them also. The person who is to be selected as an insurance advisor. It would motivate him to give out more and more business & if he will have a desire to earn money he would be more devoted toward his work. This ensures his having a good number of contacts & an amount of trust that people build over a person. 32 . Desire to earn money: This is a factor that a candidate must certainly possess.CRITERIA FOR SELECTION • Stability in Delhi: The person should be a stable Delhi resident. following steps were followed by us in the selection of a financial advisor: • Candidate’s profile sheet: As soon as the candidate comes. : Candidate’s address. if worked earlier. For e. • Career Opportunity Path (COP): A seminar is held.g. The candidate is supposed to fill this form to provide us with his basic personal information. Since how long he’s been residing in Delhi His qualification His experience. to give a brief detail about the BA Model and the work of a Financial Advisor. He is also notified about all the details of the benefits he would get out of his job.SELECTION PROCEDURE PROCEDURE At Tata AIG. 33 . he is made to feel comfortable and then is given a candidate registration form to fill. etc. • Preliminary interview: This is done to eliminate the candidates who are not found to be appropriate for the job. This seminar is followed by some tea and snacks for the invitees. they are called for a One. These are required so that. & It helps build Company’s image among the applicants. neighbors or friends can act as references.to-one interview with the Manager. This is carried on because : It helps in obtaining additional information from applicant. It facilitates giving general information to applicant such as. known public figures. university professors. we would need to confirm his information provided by him. Previous employers. etc. once we register the selected candidate with us. job.. 34 . References: Candidate is also asked for references. company policies. • • Selection Decision: The person is analyzed by the Manager on the basis of the above stages and is then finally selected for the job.• Interview: Once the capable candidates are selected amongst all. the registration is done. and submit his required documents. New Agent Application Form. When a candidate fulfills all the above criteria.• Registration: This is the final step. 35 . The candidate is asked to fill a NAAF. ANALYSIS 36 . It offers a good career path for advisors. Strengths: • • • • • • • • Tata AIG has the strong brand name of TATA & AIG with it. An effective SWOT analysis will help determine in which areas a company is succeeding.SWOT ANALYSIS OF TATA AIG SWOT ANALYSIS A SWOT (Strengths. Opportunities and Threats) is a tool used to provide a general or details snapshot of a company’s health. It ensures a long-term growth for the insurance advisors. It is the only company that provides whole infrastructure to new advisors. It gives Ist year highest commission. allowing it allocate resources in such a way as to maintain any dominant positions it may have. 37 . ( Advisor to Business Associate to a Senior Business Associate & finally to a Managerial Business Associate) Tata AIG has a good reputation among customers. Weaknesses. Tata AIG has a strong training support Tata AIG is the only Insurance Company in the world rated AAA by SWP. there is increased competition. The training period of 18 working days/100 hrs and the fee of 1000/-. They also provide additional rewards for advisors.WEAKNESS: • • Tata AIG is conservative in the context of advertising. THREATS: • • Because of the mushrooming of the private insurance companies. also stands as a hindrance for people who are interested to become insurance advisors 38 . It is an underwritten driven company. OPPORTUNITIES: • • Tata AIG provides protection against financial loss & helps in future planning. CONCLUSIONS 39 . especially in the private sector. it has become extremely competitive. the Tata AIG. is busy in recruiting and selecting insurance advisors tactfully. In view of the competition. a multinational insurance concern. the prospective customers – to persuade them and convince them about future benefits of the insurance scheme. 40 . The Tata AIG is one of the most prominent insurance companies with international expertise and experience. makes efficient sales team effort with expertise and acumen to create excellent customer relationship management with great online support and personal contacts. Insurance involves tiring field work and tele contacting.CONCLUSION With introduction of the foreign sector in the field of Insurance. The Tata AIG. skillfully and with expertise. BIBLIOGRAPHY 41 . aig.. These are: K. Ltd. New Delhi Shawn A Smith. New Delhi We visited the following sites: www.bibiliography The various books that I had consulted for the successful completion of my summer training project are listed below. “Human Resource and Personnel Management”.Business & Economics Philip Kotler. Tata McGrawHill Publishing Company Limited.com www.tata-aig/life. “Marketing Management”. Aswathappa.tata.com www. Rebecca Mazin . Prentice-Hall of India Pvt.com 42 . ANNEXURE QUESTIONNAIRES • Questionnaire 1: Market Research survey • Questionnaire 2: Market Survey 43 . . Q1. (b) Automobile (d) Education 44 . No………….Service…………………….. of Management.Qualification…………… Q2. How long you are involved in this job/business? Q3. We are conducting a market survey to understand the job and business market and the satisfaction with the same. Kindly cooperate and give us the information.MARKET RESEARCH SURVEY DEAR SIR/MADAM We are the students from New Delhi Inst. Q4. What is your current source of earning? (a) (b) (c) Business………………………………………………… .. Are you satisfied with the earnings? (a) (b) Yes………….Designation…………… Student……………………. Which is the best and fastest growing Industry today to join as part time? (a)Insurance (c)Banking & Finance (e)Others…………………. Would you like to involve yourself in some other job/ Business as a part time work? (a) Yes (b) No Q5. Kindly spare a few minutes to help us taking your feedback. What do you suggest to improve the quality of shopping experience at CP? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ……………………………………………………………………………… No Don’t Know / can’t Basic Details: 45 . Do you feel that CP is still better shopping area than any other shopping Mall in Delhi/ NCR? Yes say 4. Do you feel there is an increase in Sales volume due to Metro Services? Yes No Don’t Know / can’tsay 3. We are doing a survey on Impact of METRO Services at CP are. 1. Do you feel that Metro services have increased the Footfall / visits in your show room? Yes No Don’t Know / can’t say 2.MARKET SURVEY Dear Sir / Madam We are the students of New Delhi Institute of Management. …………………………………………………………………………. Contact No .……………………………………Mobile .Name of Owner / Manager: ………………………………………………………….…………………………… THANK YOU!! 46 .. Outlet Name.