SUMMER INTERNSHIP REPORT

ON
Training and Development
COMPLETED IN

IDBI Federal Life Insurance Company Limited

Submitted In Partial Fulfillment Of The Requirement Of

BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT
&
INFORMATION TECHNOLOGY,DELHI

Training Supervisor: Submitted By:

Name: Mr. Manas Das Prabhjot Singh
Designation: Branch Head Enrolment No.01490201713

SESSION 2013 – 2016

 STUDENT DECLARATION

This Project Report is submitted at SRI GURU TEGH BAHADUR

INSITUTE OF MANAGEMENT & INFORMATION TECHNOLOGY
towards “SUMMER INTERNSHIP ON TRAINING AND
DEVELOPMENT”for the partial fulfillment of degree of Bachelor of
Business Administration (BBA).

I, hereby, declare that this is the original work done and the information
provided in the Project Report is authentic and not copied from anywhere and
neither submitted in any other degree / diploma programme.

Signature of Student
 CERTIFICATE

This to certify that PRABHJOT SINGH, Enrollment no. 01490201713,

BBA(gen.) student of Sri Guru Tegh Bahadur Institute of Management and

Information Technology has done project work on “training and

development” under the guidance of MR MANAS DAS(BRANCH

HEAD).
 ACKNOWLEDGEMENT

The present work is an effort to throw some light on “Training and

Development of IDBI Federal Life Insurance Company Limited”. The
work would not have been possible to come to the present shape without
the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and

guidance received by my training supervisor Mr. Manas Das , Branch
Head, IDBI FLIC for guiding me throughout the work and handling my
each query with great patience.

I would like to thank my mentor who guided through this project and I
also thank Ms.Swati Gupta, Placement Cell , for helping so much to get
a chance to do internship .
Last but not the least I would also like to thank my family and friends as
well for motivating me and continuously supporting me whenever I need.

I convey my heartful affection to all those correspondents who helped me

in making my project nicely and by making my findings easier.

Prabhjot Singh
Enroll.no. 01490201713
 TABLE OF CONTENT

S.NO. Topic Page No.

1 Introduction 9-21
1.1 Overview of Industry as a whole

2 Profile of the Organization 22-47

2.1 Origin
2.2 Recent Achievements
2.3 Mission, Vision & Values
2.4 Products
2.5 Organization Structure
2.6 Swot Analysis Of The Organisation
2.7 Introduction To The Topic

3 Objective of Study 48
3.1 Objectives of the Study
4 Methodology Adopted 49-51
4.1 Research Methodology
- Research Design
- Sources of data
- Sampling Technique
- Sample size
- Methods of data collection
4.2 Limitations of the Study

5 Analysis of the problem under study 52-61

5.1 Data Analysis
6 Interpretation of Results 62-63
6.1 Interpretation results
7 Recommendations 64
7.1 Recommendations

8 Chapter 8 - Bibliography And References 65-69

ANNEXURES
QUESTIONNAIRE
 Executive Summary

Insurance is a system to ease financial losses by transferring risk of loss

from one entity to another. It is a legal contract that protects people from
the financial costs that result from loss of life, loss of health, lawsuits, or
property damage. Insurance provides a means for individuals & society to
cope up with some of the risks faced in everyday life by everybody.
Among the emerging markets, India has been drawing intense attention of
late, fuelled in part by the fast expansion of its insurance market and the
fact that this growth is now available to all.

Insurance is the most booming sector in India now-a-days so it has become

really important for any person to study the insurance sector in India. I
have done my summer internship in IDBI Federal Life Insurance
Company Limited. During my internship I was able to learn a lot of things
that are existing in the insurance market.

My project is training and development of IDBI Federal Life Insurance

Company Limited and so I have tried my level best to collect as much
information about the insurance sector as I can and beside that I have also
tried to know the employee satisfaction level towards the training and
development plans of the company, that is, I have tried to gain as much
information about that where does the company stands when compared
with other companies in the point of view to their employee.
The main aim behind choosing this topic was my keen interest in insurance
industry and so during all my internship and during making of this report
I tried to get as much information as I can about the insurance sector and
the attitude of employees towards training and development of the
insurance company. IDBI Federal Life Insurance Company is one of the
best insurance companies that was set up in India in private sector, so there
were lot of opportunities to learn in such a company. So, I tried my level
best during preparation of this report to get as much information as I can
and use it in the best possible way in this report.

My basic aim during the study was to study that how many employee are
aware about companies in insurance sector and the different techniques
that are being used by these companies and also that whether or not
employees are satisfied with the plans, staff and services of the company
and what are their expectations from the company in the future.

Studying the complete portfolio plans of the company in their provided

training session it is not an easy task because there are lot of things
associated with each level like its feature and all its advantages and
disadvantages and the conditions to take such plan and mainly it was
really hard to know the employee attitude towards the training and
development programme but still i have tried to my fullest to give
complete judgement to the project.
 CHAPTER 1
INTRODUCTION

1.1 OVERVIEW OF INDUSTRY AS A WHOLE

Historians believe that insurance first developed in Sumer and

Babylonia. The merchants & traders of these societies transferred
& pooled their money to protect themselves from pirates. In the
18 t h century BC, Babylonian king Hammurabi developed a code of
law known as the code of specific rules governing the practices of
early risk-sharing activities.
Insurance developed during the 1700’s in the North American
colonies. In 1730, Benjamin Frank contributed for the Insurance
of Houses from Loss by fire. The company collected contributions
& this money went into an investment fund . Interest on this fund
went towards paying claims dividends to those who contributed
money.
The Industrial Revolution in the US, in the early & mid 1800’s
prompted dramatic group. During this time, many companies were
establishes to sell life insurance po licies & annuities. Several
shared profits among policyholders, also developed. In addition,
some life insurance companies charged premiums according to age
of people & health.
WHAT IS INSURANCE?
Insurance is a legal contract that protects people from the financial
costs that result from loss of life, loss of health, lawsuits, or
property damage. Insurance provides a means for individuals &
society to cope up with some of the risks faced in every body.
NEED FOR INSURANCE
Risk is a situation in which some of loss is possible.
The loss might be:
• Financial, such as to secure your children’s future you take
a protection plan.
• Physical, such as an injury or a death.
• Material, such as a wrecked car, a burned house, or a stolen
diamond etc.
Risk is a part of life. The uncertainty surrounding potential losses
is known as Risk. Insurance offers a way for people, thereby,
reducing the risks faced by a group. People pay to buy insurance
coverage (protection from risk). In exchange, all po licyholders
(people any who own insurance policies) receive a promise that
the group of policyholders as represented by the insurance
organization will pay when any policyholder experience kind of
loss.
Insurance is device, which guarantees an individual a gainst
loss. Against that loss reimbursement is made from a fund to which
many individuals exposed to the same risk have contributed
certain specified amounts, called Premiums. Payment for an
individual loss, dividend among many, does not fall heavily on t he
actual loser. The essence of the contract of insurance, called a
policy, is mutuality.
The entity whose risk is transferred – which may be an individual
or association of any type, including a government or government
agency – is called the “insured”. The entity that accepts the risk
is called the “insurer” and the agreement between the two by
which the risk is transferred is called the “policy”. This is a legal
contract that sets out exactly the terms and conditions of the
coverage. The fee paid by the insured to the insurer for assuming
the risk is called the “premium”. This is usually determined by
the insurer to fund estimated future claims paid, administrative
costs, and profit.
Let us take an example by assuming that a couple buys a home
costing Rs. 100,000. Knowing that the loss if their home would
bring them financial ruin, they acquire insurance coverage in the
form of a homeowner’s policy. That policy will pay them the cost
of replacing or repairing their home in the event of a catastrophe.
The insurance company charges them a premium of Rs. 1,000 a
year. Risk of loss has been transferred from the homeowners to
the insurance company.
The major operations of an insurance company are undertaking,
the determination of which risks the insurer can take on: and rate
making, the decisions regarding necessary prices for such risks.
The underwriter is responsible for guarding against adverse
selection, wherein there is excessive coverage of high -risk
candidates in proportion to the coverage of low risk candidates. In
preventing adverse selection, the underwriter must consider
physical, psychological, and moral hazards in relation to
applicants. Physical hazards include those dangers, which
surround the individual or property, jeopardizing the well being
of the insured. The amount of the premium is determined by the
operation of the law of averages as calculated by actuaries. By
investing premium payments in a wide range of revenue -producing
projects, insurance companies have become major suppliers of
capital, and they rank among the nation’s largest institutional
investors.
IMPORTANCE OF INSURANCE
Insurance benefits society by allowing individuals to share the
risks faced by many people. But it also serves many other
important economic & societal functions . Insurance provides the
capital that communicates need to quickly rebuild & recover
economically from natural disasters.
Insurance itself has become a significant economic force in most
of the industrialized countries. Businessmen buy insurance to
cover their employees against work related injuries & health
problems. They also insure their assets against any kind of wear
and tear by natural forces & forcibly.
Insurance companies perform a type of monetary redistribution –
they collect premiums & eventually redistribute that money as
payments. Depending on the type of insurance, redistribution can
take place anywhere from a month to many decades. Because of
this delay between collecting & paying out funds, insurance
companies invest their funds to bring extr a revenue. Such
investment help business & government finance their operations,
& few profits from these investments support the operation of
insurance companies. With these investment earnings, insurance
companies can keep rates much lower than would othe rwise be
possible.

TYPES OF INSURANCE
Insurance can be divided into three categories:
• Life insurance
• General insurance
• Health insurance
Life insurance is a contract for payment of a sum of money to the
person assured (or failing him/her, to the person ent itled to receive
the same) on the happening of the event insured against. Usually
the contract provides for the payment of an amount on the date of
maturity or at specified intervals or at unfortunate death. The
contract also provides for payment of premiu m periodically to the
corporation by the assured.
General insurance include many areas of insurance like marine,
motor, engineering, health, fire, etc. the contract provides for the
payment of an amount on the happening of some contingency.
These types of contract are annual in nature.

THE GLOBAL INSURANCE INDUSTRY

The insurance industry forms an integral part of the global
financial market, with insurance companies being significant
institutional investors. In recent decades, the insurance sector,
like other financial services, has grown in economic importance.
This is through direct contributions to Gross Domestic Product
(GDP) via increased levels of employment within the sector; and
indirectly through higher levels of risk transfer and financial
intermediation.

INSURANCE SECTOR REFORMS

Prior to liberalization of Insurance industry, Life insurance was monopoly of
LIC.
In 1993, Malhotra Committee headed by former Finance Secretary and RBI
Governor R.N. Malhotra was formed to evaluate the Indian insurance industry
and recommend its future direction. The Malhotra committee was set up with
the objective of complementing the reforms initiated in the financial sector.
The reforms were aimed at creating a more efficient and competitive financial
system suitable for the requirements of the economy keeping in mind the
structural changes currently underway and recognizing that insurance is an
important part of the overall financial system where it was necessary to
address the need for similar reforms. In 1994, the committee submitted the
report and some of the key recommendations included:
Structure
Government stake in the insurance Companies to be brought down to 50%.
Government should take over the holdings of GIC and its subsidiaries so that
these subsidiaries can act as independent corporations.
Competition
Private Companies with a minimum paid up capital of Rs.1 billion should be
allowed to enter the sector. No Company should deal in both Life and General
Insurance through a single entity. Foreign companies may be allowed to enter
the industry in collaboration with the domestic companies.
Regulatory Body
The Insurance Act should be changed. An Insurance Regulatory body should
be set up. Controller of Insurance- a part of the Finance Ministry- should be
made independent
Investments
Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than
5% in any company (there current holdings to be brought down to this level
over a period of time)
Customer Service
LIC should pay interest on delays in payments beyond 30 days. Insurance
companies must be encouraged to set up unit linked pension plans.
Computerization of operations and updating of technology is to be carried out
in the insurance industry.

THE INSURANCE SECTOR IN INDIA

Prior to 1999 there were only two players in the market:
• Life Insurance Corporation of India (LIC)
• General Insurance Corporation (GIC)
Then to protect the interests of the policyholders, to regulate,
promote and ensure orderly growth of the insurance industry,
IRDA was set up. After this the private players started entering
the market.
By any yardstick, India, with about 200 million middle class
households, presents a huge untapped potential for players in the
insurance industry. Saturation of markets in many de veloped
economies has made the Indian market even more attractive for
global insurance majors with the per capita income in India
expected to grow at over 6% for the next 10 years and with
improvement in awareness levels, the demand for insurance is
expected to grow at an attractive rat in India. an independent
consulting company, The Monitor Group has estimated that the
life insurance market will grow from Rs.218 billion in 1998 to
Rs.1003 billion by 2008 (a compounded annual growth of 16.5%)

REGULATORY BODY: THE INSURANCE REGULATORY AND

DEVELOPMENT AUTHORITY (IRDA)

Insurance is a federal subject in India. The primary legislation that deals with
insurance business in India is: Insurance Act, 1938, and Insurance Regulatory
& Development Authority Act, 1999.

Reforms in the Insurance sector were initiated with the passage of the IRDA
Bill in Parliament in December 1999. The IRDA since its incorporation as a
statutory body in April 2000 has fastidiously stuck to its schedule of framing
regulations and registering the private sector insurance companies.
The other decision taken simultaneously to provide the supporting systems to
the insurance sector and in particular the life insurance companies was the
launch of the IRDA’s online service for issue and renewal of licenses to
agents. Since being set up as an independent statutory body the IRDA has put
in a framework of globally compatible regulations.

MISSION-IRDA
“To protect the interests of the policyholders, to regulate, promote and
ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto.”
MILESTONES OF INSURANCE REGULATIONS IN THE
TH
20 CENTURY
Year Significant Regulatory Event
1912 The Indian Life Insurance Company
Act
1928 Indian Insurance Companies Act
1938 The Insurance Act: Comprehensive
Act to regulate insurance business in
India
1956 Nationalization of life insurance
business in India with a monopoly
awarded to the Life Insurance
Corporation of India
1972 Nationalization of general insurance
business in India with the formation
of a holding company General
Insurance Corporation
1993 Setting up of Malhotra Committee
1994 Recommendations of Malhotra
Committee published
1995 Setting up of Mukherjee Committee
1996 Setting up of (interim) Insurance
Regulatory Authority (IRA)
Recommendations of the IRA
1997 Mukherjee Committee Report
submitted but not made public
1997 The Government gives greater
autonomy to Life Insurance
Corporation, General Insurance
Corporation and its subsidiaries with
regard to the restructuring of boards
and flexibility in investment norms
aimed at channeling funds to the
infrastructure sector
1998 The cabinet decides to allow 40%
foreign equity in private insurance
companies-26% to foreign
companies and 14% to Non-resident
Indians and Foreign Institutional
Investors
1999 The Standing Committee headed by
Murali Deora decides that foreign
equity in private insurance should be
limited to 26%. The IRA bill is
renamed the Insurance Regulatory
and Development Authority Bill
1999 Cabinet clears Insurance Regulatory
and Development Authority Bill
2000 President gives Assent to the
Insurance Regulatory and
Development Authority Bill
INSURANCE- COMPANIES IN INDIA
1. Life Insurance Corporation of india
2. ICICI Prudential.
3. SBI Life Insurance company Limited
4. Reliance Life Insurance company Ltd.
5. Max new York Life Insurance
6. HDFC Standard Life
7. Tata AIG Life Insurance
8. Bajaj Allianz Life Insurance
9. Birla Sun life
10. MetLife India Life Insurance
11. ING Vyasa Life insurance
12. Kotak Life Insurance
13. Aviva Life Insurance
14. Bharti AXA life insurance
15. IDBI federal Life Insurance
LIST OF GENERAL INSURERS IN INDIA
1. Bajaj Allianz

2. ICICI Lombard

3. IFFCO Tokio

4. National Insurance Company

5. The New India Assurance Company

6. Oriental Insurance

7. Reliance General Insurance

8. Royal Sundaram Alliance

9. TATA AIG

10. United India Insurance

11. Cholamandalam

12. HDFC ERGO

13. Export Credit Guarantee

14. Agriculture Insurance Co

15. Star Health and allied Insurance

16. Apollo Munich health insurance

17. Future Generali

18. Universal Sompo

 CHAPTER-2
PROFILE OF THE ORGANISATION

PROFILE OF THE ORGANISATION

2.1. Origin

IDBI Federal Life Insurance Co Ltd. is a joint-venture of IDBI Bank,

India's premier development and commercial bank, Federal Bank, one of
India's leading private sector banks and Ageas, a multinational insurance giant
based out of Europe. In this venture, IDBI Bank owns 48% equity while
Federal Bank and Ageas own 26% equity each. Having started in March 2008,
in just five months of inception, IDBI Federal became one of the fastest
growing new insurance companies by garnering Rs.100 Cr in premiums.
Through a continuous process of innovation in product and service delivery
IDBI Federal aims to deliver world-class wealth management, protection and
retirement solutions that provide value and convenience to the Indian
customer. The company offers its services through.

a vast nationwide network 2,308 partner bank branches of IDBI Bank and
Federal Bank in addition to a sizeable network of advisors and partners. As
on 31st December 2013, the company has issued nearly 5.5 lakh policies with
a sum assured of over Rs 32,11048 crores.
 About the sponsors of IDBI Federal Life Insurance Co Ltd:

IDBI Bank Ltd. continues to be, since its inception, India's premier industrial
development bank. It came into being as on July 01, 1964 to support India's
industrial backbone. Today, it is amongst India's foremost commercial banks,
with a wide range of innovative products and services, serving retail and
corporate customers in all corners of the country from 1201 branches and 2156
ATMs. The Bank offers its customers an extensive range of diversified
services including project finance, term lending, working capital facilities,
lease finance, venture capital, loan syndication, corporate advisory services
and legal and technical advisory services to its corporate clients as well as
mortgages and personal loans to its retail clients. As part of its development
activities, IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in India's financial sector - National Stock Exchange
of India Limited (NSE) and National Securities Depository Ltd, SHCIL
(Stock Holding Corporation of India Ltd), CARE (Credit Analysis and
Research Ltd).

Federal Bank is one of India's leading private sector banks, with a dominant
presence in the state of Kerala. It has a strong network of over 1,142 branches
and 1,312 ATMs spread across India. The bank provides over four million
retail customers with a wide variety of financial products. Federal Bank is one
of the first large Indian banks to have an entirely automated and
interconnected branch network. In addition to interconnected branches and
ATMs, the Bank has a wide range of services like Internet Banking, Mobile
Banking, Tele Banking, and Any Where Banking, debit cards, online bill
payment and call centre facilities to offer round the clock banking
convenience to its customers. The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won
several awards and recommendations.

Ageas is an international insurance group with a heritage spanning more than

180 years. Ranked among the top 20 insurance companies in Europe, Ageas
has chosen to concentrate its business activities in Europe and Asia, which
together make up the largest share of the global insurance market. These are
grouped around four segments: Belgium, United Kingdom, Continental
Europe and Asia and served through a combination of wholly owned
subsidiaries and partnerships with strong financial institutions and key
distributors around the world. Ageas operates successful partnerships in
Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India
and Thailand and has subsidiaries in France, Hong Kong and UK. Ageas is
the market leader in Belgium for individual life and employee benefits, as well
as a leading non-life player through AG Insurance. In the UK, Ageas has a
strong presence as the fourth largest player in private car insurance and the
over 50's market. Ageas employs more than 13,000 people and has annual
inflows of more than EUR 21 billion.

2.2 RECENT ACHIEVEMENTS

Private life insurance company IDBI Federal Life Insurance has posted a
maiden profit of Rs 9.24 crore for financial year 2012-13 in its fifth year of
operation. The company has posted a 44% rise in sales of number of new
business policies.
G V Nageswara Rao, Managing Director & CEO, IDBI Federal Life Insurance
said, "Achieving break-even in the fifth year is a significant landmark. We
have pursued profitable growth as our company strategy. Our new business
premium growth of 23% compares with negative growth of 15% reported by
the industry. Our growth rate is one of the highest in the industry, with a large
number of companies posting negative growth. What is even more satisfying
is the fact that this achievement comes at a time when the entire life Insurance
industry is facing many challenges and growth is hard to come by."

The 13th month persistency of the company stood at 76%. Rao added that they
were among the top three players in terms of the 25th, 37th and 49th month
persistency. The AUM (Assets under Management) were up by 24% and
stood at Rs 2,732 crore.

IDBI Federal started its operations in March 2008 and has a solvency ratio at
491% as against the regulatory requirement of 150%. The company presently
has a paid-up share capital of Rs 800 crore. The cost ratio of the company
went down from 26% in 2011-12 to 24% in 2012-13.

In terms of the products, while Rao maintained that the company would
concentrate on traditional products, the company is looking to launch a group
pension product. The company said that this product would be filed with the
regulator.

2.3 MISSION, VISION & VALUES

Mission

To be the top new life insurance company in the market. This doesn’t just
mean being the largest or the most productive company in the market, rather
it is a combination of several things like-

• Customer service of the highest order

• Value for money for customers
• Professionalism in carrying out business
• Innovative products to cater to different needs of different customers
• Use of technology to improve service standards
• Increasing market share

Vision

'The most successful and admired life insurance company, which means
that we are the most trusted company, the easiest to deal with, offer the best
value for money, and set the standards in the industry'.'The most obvious
choice for all'.

Values that we observe while we work:

 • Integrity

• Innovation

• Customer centric

• People Care “One for all and all for one”

• Team work

• Joy and Simplicity

2.4 PRODUCTS OFFERED BY THE COMPANY

IDBI Federal Childsurance is a non-linked participating endowment plan

that ensures child’s future financial needs are fulfilled. It is designed to give
customer guaranteed annual payouts and aid the important milestones in their
child’s life.
HOW DOES THIS
PLAN WORK

1. Customer needs to decide the amount of guaranteed annual payouts he

would need which will depend on plans for his child’s future.
2. Basis the amount of payouts, he would then choose the Maturity Sum
Assured (MSA).

Next, he would choose when and for how long he would need the payouts –
the difference between child’s current age and the age at which the guaranteed
annual payouts should end, will be the policy term. This can help plan his
child’s future better.
The tagline for this product is that your kid might look cute while being angry
now but he won’t look so when he’s 18.It makes us think regarding the
way we plan our future.The best example is that in today’s date a marriage
might cost you around 5 lakh but after 18 years the same marriage is going to
cost 33 lakh Indian rupees. So, people have to keep in mind the inflation and
cannot plan keeping the present value of things in mind. This product takes
care of the above fact and hence the future planning efforts are unaffected by
unforeseen and unfortunate events.
IDBI Federal Wealthsurance Suvidha Growth Insurance Plan is a simple
unit linked plan that helps customer take their first step towards wealth
creation and that too, with ease. What’s more, the life cover with this plan
provides financial protection for loved ones.

Wealthsurance Plans guarantees following:

➢ Financial protection against uncertainty

➢ Partial withdrawals for emergency fund requirements
➢ Guaranteed loyalty additions to boost your wealth
➢ Flexible to switch funds and investment options
➢ Option to choose how long you want to stay invested
➢ Get 2 Tax benefit of 80 C and 10(10 D).
IDBI Federal Incomesurance™ Guaranteed Money Back Insurance Plan is
a non-linked non-participating money back plan which gives customer
guaranteed* returns on investment, so that they stop worrying about the future.
With Incomesurance, customer can guarantee a secure future for their family
even when they are not around.

HOW DOES THIS PLAN WORK

Incomesurance is a simple plan with guaranteed benefits. On payment of
premiums for 5 years customer will receive guaranteed annual payouts at the
end of every year for the next 5 years. At the time of purchasing the policy,
he will know exactly how much he will receive as guaranteed annual payouts.
The guaranteed annual payouts that will be received will depend on two
factors - the amount of annual premium that he will pay and age.
 IDBI Federal
Lifesurance
savings insurance plan is a fixed term non-linked participating plan that
provides twin benefits of long-term savings and life cover.
With Lifesurance Savings, small savings will help customer realize the big
dreams that he has for himself and his family. This plan also offers the benefit
of life cover that will provide financial security to family in his absence.
BENEFITS OF THIS PLAN
➢ Financial protection against uncertainty
➢ Lump sum payout at maturity
➢ Guaranteed additions to safeguard as per your need
➢ Flexible to choose options as per your need
➢ Bonuses to boost your savings
➢ Get 2 Tax benefit of 80C and 10(10D)
 2.5. Organizational Structure
CEO

CHAIRMAN

MANAGING DIRECTOR (MD)

COUNTRY HEAD

ZONAL MANAGER (ZM)

REGIONAL MANGER (RM)

TERRITORY MANAGER (TM)

BRANCH SALES MANGER (BSM)

BUSINESS DEVELOPMENT MANAGER (BDM)

SALES DEVELOPMENT MANGER (SDM)

FINANCIAL CONSULTANT (FC)

 2.6 SWOT ANALYSIS OF THE ORGANISATION

STRENGTHS
1. Right strategy for the right products.
2. Superior customer service vs. competitors.
3. Great Brand Image.
4. Products have required accreditation.
5. High degree of customer satisfaction.
6. Good place to work
7. Lower response time with efficient and effective service.
8. Dedicated workforce aiming at making a long-term career in the field.
WEAKNESSES
1. Some gaps in range for certain sectors.
2. Customer service staff need training.
OPPORTUNITIES
1. Profit margin will be good.
2. Good extend to overseas broadly.
3. Could seek better customer deal
4. Fast- track career development opportunities on an industry wide basis.
5. An applied research center to create opportunities for developing
technique to provide added-value service.
THREATS
1. Very high competition prevailing in the industry.

2. LIC still holding 64% of the market share gives a cut through

competition,
3. Vulnerable to reactive attack by major competitors
 4. Entrance of various new players in the sector .

2.7 INTRODUCTION TO THE TOPIC

TRAINING AND DEVELOPMENT
DISTINCTION BETWEEN TRAINING AND
DEVELOPMENT

TRAINING DEVELOPMENT

1.Training means learning skills and 1.Development means growth of an

knowledge for doing a specific job. employees in all respects.

2.It is concerned with maintaining

2.It seeks to develop competence and
and improving current job
skills for future performance. Thus, it
performance. Thus, it has short-term
has a long-term perspective.
perspective.

3.It is job-centered in nature. 3.It is career-centered in nature.

4.The executives has to be motivated

4.Role of trainer is very important.
internally for self development.

MEANING OF TRAINING AND DEVELOPMENT

In simple terms, training and development refer to imparting specific skills,

abilities and knowledge to an employee.

A formal definition of training and development is:-

“It is any attempt to improve current or future employee performance

by increasing an employee’s ability to perform through learning, usually

by changing the employee’s attitude or increasing his skills and

knowledge.”

The need of training and development is determined by employee’s

performance

deficiency, compute as follows:-

Training and development need = Standard performance – Actual

performance.

Training is an organised activity for increasing the knowledge and skills of

people for a definite purpose. It involves systematic procedure for transferring
technical know-how to employees so as to increase their knowledge and skills
for doing specific jobs with proficiency.

According to Edwin B. Flippo, “Training is the act of increasing the

knowledge And skills of an employee for doing a particular job.”

Training involves the development of skills that are usually necessary to

perform a specific job. Its purpose is to achieve a change in the behavior of
those trained and to enable them to do their jobs better. It makes newly
appointed workers fully productive in the minimum of time. It is equally
important for the old employees due to frequent changes in technology.
PROCESS OF TRAINING AND DEVELOPMENT : Process of
training and development is a well planned process. The following graph
represents this in a graphical manner:-

TRAINING AND DEVELOPMENT PROCESS

ORGANISATIONAL
OBJECTIVES AND
STRATEGIES

ASSESSMENT OF
TRAINING NEEDS

ESTABLISHMENT OF
TRAINING AND
DEVELOPMENT GOALS

DEVISING TRAINING
AND DEVELOPMENT
PROGRAMME

IMPLEMENTATION OF
TRAINING AND
DEVELOPMENT
PROGRAMME

EVALUATION OF
RESULTS
NEED OF TRAINING AND DEVELOPMENT
Training is important not only from the point of view of organization ; but
also for the employees. Training is valuable to the employees because it will
give them greater job security and opportunity for advancement.

The need of training arises in an enterprise due to following reasons:-

CHANGING TECHNOLOGY:-Technology is changing at a fast pace.

The workers must learn new techniques to make use of advanced technology.
Thus, training should be treated as a continuous process to update the
employees in new methods and procedures.

QUALITY CONSCIOUS CUSTOMERS:-Customers have become

quality conscious and their requirements keep on changing. To satisfy the
customers, quality of products must be continuously improved through
training of workers.

GREATER PRODUCTIVITY:-It is essential to increase productivity

and Reduce cost of production for meeting competition in the market.
Effective training can help increase productivity of workers

.
STABLE WORKPLACE:-Training creates a feeling of confidence in the
minds of the workers. It gives them a security at the work-place. As a result,
labor turnover and absenteeism rates are reduced.

TRAINING AND DEVELOPMENT OBJECTIVES

• Training objectives are formed keeping in view company’s goals and

objectives.

• To prepare the employee [both new and old] to meet the present as well
as changing requirements of job and organization.

• To impart to the new entrants the basic knowledge and skill needed for
the performance of a definite job.

• To assist employees to function more effectively in their present

positions by exposing them to latest concepts, information and
techniques and developing the skill sets that may need further.

• To develop the potentialities of people for the next level of job.

• To ensure smooth and efficient working of department.

• To bridge the gap between “existing performance ability” and “desired

performance”.

• To improve organizational climate since an endless chain of positive

reaction can result from a well planned training programme.
 IMPORTANCE OF TRAINING AND
DEVELOPMENT

Training plays an important role in human resource department. It is

necessary,

useful and productive for all categories of workers and supervisory staff.

The importance of training and development in an enterprise are:

• OPTIMUM UTILIZATION OF RESOURCES:-Training and

development helps in optimizing the utilization of human resources that
further helps the employees to achieve the organizational as well as
their individual goals.

• DEVELOPMENT OF SKILLS OF EMPLOYEES :- Training

and development helps in increasing the job knowledge and skills of
employees at each level.

It helps to expand the horizons of human intellect and an overall

personality of the employees.

PRODUCTIVITY:-Training and development helps in increasing

productivity of the employees that helps organization to achieve its long-term
goals.
• TEAM SPIRIT:-Training and development helps in inculcating the
sense of team-work, team spirit, and inter-team collaborations.

• QUALITY:-Training and development helps in improving upon quality

of work and work-life.

TYPES OF TRAINING
On the basis of purpose, several types of training programmes are offered to
employees. The important types of training programmes are as follows:

INDUCTION TRAINING:-Induction is concerned with introducing a

new employee to the organization and its procedures, rules and regulations.
When a new employee reports for work, he must be helped to get acquainted
with the work environment and fellow employees.It is better to give him a
friendly welcome when he joins the organization, get him introduced to the
organization and help him to get a general idea about rules and regulations,
working conditions, etc of the organization.

JOB TRAINING:-Job training relates to specific job which workers has to

handle. It gives information about machines, process of production,
instructions to be followed, methods to be used and so on. It develops skills
and confidence among the workers and enables them to perform the job
efficiently. It is the most common of formal in-plant training programmes.It
helps in creating interest of the employees in their jobs.
APPRENTICESHIP TRAINING:-Apprenticeship training programmes
tend more towards education than merely on vocational training. Under this,
both skills and knowledge in doing a job or a series of related jobs are
involved. The government of various countries have passed laws which make
it obligatory on certain classes of employers to provide apprenticeship training
to young people. The usual apprenticeship programmes combine on the job
training and experience with class room instructions in particular subjects.
This training is desirable in industries which requires a constant flow of new
employees expected to become all round craftsmen. It is very much prevalent
in printing trades, building and construction and crafts like mechanics,
electricians, welders, etc.

INTERNSHIP TRAINING:-Under this method, the educational and

vocational institute enters into arrangement with an industrial enterprise for
providing practical knowledge to its students. This training is usually meant
for such vocations where advanced theoretical knowledge is to be backed up
by practical experience on the job. For instance, engineering students are sent
to big industrial enterprises for gaining practical work experience and medical
students are sent to hospitals to get practical knowledge. The period of such
training varies from six months to two years.

REFRESHER TRAINING:-As the name implies, the refresher training

is meant for the old employees of the enterprise. The basic purpose of this
training is to acquaint the existing work-force with the latest methods of
performing their jobs and improve their efficiency further. In the words of
Dale Yoder, “Retraining programmes are designed to avoid personnel
obsolescence.” The skills with the existing employees become obsolete
because of technological changes and of the human tendency to forget .
TRAINING FOR PROMOTION:-The talented employees may be
given adequate training to make them eligible for promotion to higher jobs in
the organization. Promotion means a significant change in the
Responsibilities and duties. Therefore, it is essential that employees are
provided sufficient training to learn new skills to perform their jobs more
efficiently. The purpose of training for promotion is to develop the existing
employees to make them fit for undertaking higher job responsibilities. This
serves as a motivating force to the employees

METHODS OF TRAINING
The various methods of training may be classified into the following
categories:

On-the-job training

Vestibule training

Off-the-job training

ON-THE-JOB TRAINING:-On-the-job training is considered to be the

most effective method of training the operative personnel.Under this method,
the worker is given training at the work place by his immediate supervisor. In
other words, the worker learns in the actual work environment.It is based on
the principle of “learning by doing”.

There are four methods of on-the-job training described below:-

COACHING:-Under this method, the supervisor imparts job knowledge

and skills to his subordinate.The emphasis in coaching the subordinate is on
learning by doing.This method is very effective if the superior has sufficient
time to provide coaching to his subordinates.
UNDERSTUDY:-The superior gives training to a subordinate as his
assistant. The subordinate learns through experience and observation.It
prepares the subordinate to assume the responsibilities of the superior’s job
in case the superior leaves the organization. The purpose of understudy is to
prepare someone to fill the vacancy caused by death, retirement, transfer, or
promotion of the superior.

POSITION ROTATION: The purpose of position rotation is to broaden

the background of the trainee in various positions. The trainee is periodically
rotated from job to job instead of sticking to one job so that he acquires a
general background of different jobs. However, rotation of an employee from
one job to another should not be done frequently. He should be allowed to
stay on a job for sufficient period so that he may acquire the full knowledge
of the job.

JOB ROTATION:-Job rotation is used by many firms to develop all-

round workers. The employees learn new skills and gain experience in
handling different kinds of jobs. They also come between different jobs. It is
also used to place workers on the right jobs and prepare them to handle other
jobs in case of need.to know interrelationship

VESTIBULE TRAINING
The term ‘vestibule training’ is used to designate training in a class-room for
semi-skilled workers. It is more suitable where a large number of employees
must be trained at the same time for the same kind of work. Where this method
is used, there should be well qualified instructors in charge of training
programmes.Here the emphasis tends to be on learning rather than
production. It is frequently used to train clerks, machine operators, typists,
etc.

Vestibule training is adapted to the general type of training problem that is

faced by on-the-job training. An attempt is made to duplicate, as nearly as
possible, the materials, equipments and conditions found in real work place.
The human resources department makes arrangements for vestibule training
when the training work exceeds the capacity of the line supervisors. Thus, in
vestibule training, the workers are trained on specific jobs as they would be
expected to perform at their work place.

Vestibule training has certain demerits also. The artificial training atmosphere
may create adjustment problem for the trainees when they are sent to their
actual work place. It is relatively expensive as there is duplication of
materials, equipments and conditions found in the real work place.

OFF-THE-JOB TRAINING:-It requires the workers to undergo

training for a specific period away from the work place. Off-the-job methods
are concerned with both knowledge and skills in doing certain jobs. The
workers are free of tension of work when they are learning.

There are several off-the-job methods of training as described below:-

SPECIAL LECTURE CUM DISCUSSION:-Training through

special lectures is also known as “class-room training”. It is more associated
with imparting knowledge than skills. The special lectures may be delivered
by some executives of the organization or specialists from vocational and
professional institutes. Many firms also follow the practice of inviting experts
for special lectures for the staff on matters like health, safety, productivity,
quality, etc.
CONFERENCE TRAINING:-A conference is a group meeting
conducted According to an organised plan in which the members seek to
develop Knowledge and understanding by oral participation. It is an effective
training device for persons in the positions of both conference member and
conference leader. As a member, a person can learn from others by comparing
his opinions with those of others. He learns to respect the viewpoints of others
and also realizes that there is more than one workable approach to any
problem.

CASE METHOD: The case method is a method of stimuluating

experience in the classroom.Under this method, the trainee are given a
problem or case which is more or less related to the concepts and principles
already taught. They analyze the problem and suggest solutions which are
discussed in the class. The instructor helps them reach a common solution to
the problem. This method gives the trainee an opportunity to apply his
knowledge to the solution of realistic problems.

Training and development in IDBI FLIC :- Training and

development helps in optimizing the utilization of human resources that
further helps the employees to increase the job knowledge and skills at each
level. To improve the skills of employees the Apprenticeship training
programmes is been used by the company can so that they tend more towards
education than merely on vocational training. Under this, both skills and
knowledge in doing a job or a series of related jobs are involved. The usual
apprenticeship programmes combine on the job training and experience with
class room instructions in particular subjects and be the most effective method
of training the operative personnel in IDBI FLIC training and development
programmes. The usual apprenticeship programmes combine on the job
training and experience with class room instructions in particular subjects.
This training is desirable in IDBI FLIC as firstly they

ascertain you a ID card which makes you an official representatives of the

company, you ascertain that ID passing a exam which is approved by IRDA
and for that IDBI FLIC provides you training and help you become the official
member.

CHAPTER 3
OBJECTIVES OF THE STUDY
3.1 OBJECTIVES OF THE STUDY

Objective means the purpose for which the research has been conducted. We
have to clearly define the objective of the project to be made. This is the first
and the most important part of the Research Methodology.
The primary objective of research is to study, understand and critically
analyze the training and development of IDBI FLIC.
Other secondary objectives are as follows:
• To study the functioning of insurance in IDBI FLIC.
• To study the employees preference towards the insurance sector.
• To ensure that the employees are satisfied with the company training.
• To view how the potentialities of people for the next level of job
develop
• To view how the organizational climate improve by an endless chain of
positive reactions which result from a well planned training program.

CHAPTER 4
METHODOLOGY ADOPTED
4.1 RESEARCH METHODOLOGY
Research Design
Descriptive research
Descriptive research includes Surveys and fact-finding enquiries of different
kinds. The major purpose of descriptive research is description of the state of
affairs, as it exists as the present. The main characteristic of this method is
that the researcher has no control over the variables; he can only report what
has happened or what is happening.
SOURCES OF DATA
Representation of facts, concepts, or instructions in a formalized manner
suitable for communication, interpretation, or processing by humans or by
automatic means. Any representations such as characters or analog quantities
to which meaning is or might be assigned.

This project consists of two parts:-

Primary Data
This include the survey or questioners method, telephonic interviews as well
as the personal interview methods of data collection

Secondary Data
This include Books, Internet, Company Brochures the Companies website,
competitor website etc., Newspaper Articles etc.

Sampling Technique
Since the information required was not of a very technical nature and also
looking at the scope of the project and the extent of the target segment, the
sampling technique employed was Convenience Sampling. I administered the
questionnaires.

Sample Size

I have restricted the sample size to 100 respondents. This was done keeping
in mind the time constraints and the fact that I felt that this number would be
enough to serve the information needs required to show the trends.

Methods of data collection

Questionnaire Design / Formulation

Questionnaires: - A questionnaire consists of a set of questions presented to

respondent for their answers. It can be Closed Ended or Open Ended

Open Ended: - Allows respondents to answer in their own words & are
difficult to Interpret and Tabulate.
Close Ended: - Pre-specify all the possible answers & are easy to Interpret
and Tabulate.

TYPES OF QUESTIONS USED IN THIS PROJECT

Close ended Questions
To know the choice of the people regarding various matters.
Dichotomous Questions
Which has only two answers “Yes” or “No”.
Multiple Choice Questions
Where respondent is offered more than two choices. This is done to know the
choice of the customers regarding different matters.

4.2 LIMITATIONS OF THE STUDY

• The only limitation in this survey was that I could not conduct a survey
on a big scale, due to the time constraint.

• Most of the contents collected was difficult to understand because it

was new for me to work in this field..

• It was time consuming to understand the mysteries of emlopyees for

training and development.

• Response of trainees could be biased

CHAPTER 5
 ANALYSIS OF THE PROBLEM UNDER STUDY

5.1 ANALYSIS OF DATA

The response of employees has been encoded objectively in form of

questionnaire, which gives the freedom to the employees to choose the
appropriate grade to be given to different dimensions of the problems covered
through questionnaire. Thus through questionnaire method it becomes easy
to represent the view of employee qualitatively and also helps to choose the
parameter which mostly affects the job satisfaction and motivation.
Although the total number of statement covering different aspects of job
satisfaction and motivation is 100 but it has been divided into various parts.

Q 1. Your organization considers training as a part of organizational strategy.

Do you agree with this statement?

 No of employees(In
Options
percentage)
Strongly agree 40%

Agree 50%

Disagree 5%

Somewhat agree 5%

Disagree Somewhat
5% agree
5%

Strongly agree
40%

Agree
50%

Interpretation:

50% of employees consider training as a part of firm’s strategy, 40% of

employees strongly agree with the statement and 5 of employees disagree with
the statement.

Q.2 To whom training is given more in your organization?

 options No of employees(In
percentage)

New staff 40%

Junior staff 10%

Senior staff 40%

Based on requirement 10%

New staff Junior staff Senior staff Based on requirement

10%

40%

40%

10%

Interpretation:

40% of new staff are given training, 10% of them are junior staff which are
given training, 40% of senior staff are trained and 10% of employees are given
training based on requirements.

Q.3 What are the barriers to training and development in your firm?
 Options No of employees(In
percentage)

Time 35%

Lack of interest 40%

Money 15%

Non availability of skilled 10%

trainer

Time Lack of interest Money Non availability of skilled trainer

10%

15% 35%

40%

Interpretation:

35% of employees consider time as a barrier in their training, 40% of

employees consider lack of interest as a barrier, 15% of employees consider
money as a barrier and 10 of employees consider non availability of skilled
trainer as a barrier.

Q.4 What mode of training method is used in your firm?

 Options No of employees(In
percentage)

Job relation 30%

Conference/Discussion 40%

External training 15%

Programmed instruction 15%

Job relation Conference/Discussion

External training Programmed instruction

15%
30%

15%

40%

Interpretation:

30% of employees said special lecture cum discussion is used as a mode of

training, 40% of employees said conference/discussion is used as mode of
training, 15% of employees said external training is done and 15% of
employees said programmed instruction is used as a mode of training.
Q.5 “ Training and development sessions conducted in your firm are useful.”

Do you agree with this statement?

Options No of employees(In percentage)

Strongly agree 25%

Agree 65%

Disagree 5%

Somewhat agree 5%

Strongly agree Agree Disagree Somewhat agree

5%
5%

25%

65%

Interpretation:

25% of employees strongly agree with the statement, 65% of employees

agree with the statement, 5% of employees disagree with the statement and
5% of employees somewhat agree with the statement.
Q.6 How long does it take to implement the trained process?

Options No of employees(In
percentage)

Less than one month 25%

1-2 months 60%

2-4 months 15%

More than 4 months. 0%

Less than one month 1-2 months 2-4 months More than 4 months.

0%

15%
25%

60%

Interpretation:

25% of employees said it took less than one month, 60% of employees said

it took 1-2 months and 15% of employees said it took 2-4 months.
Q.7 How well the workplace of the training is physically organised?

options No of employees(In
percentage)

Excellent 65%

Good 25%

Bad 5%

Average 5%

Excellent Good Bad Average

5%
5%

25%

65%

Interpretation:

65% employees said that workplace of training is organised excellently, 25%

employees said workplace is good organised and 5% employees said
workplace is badly organised.
Q.8 What are the conditions that have to be improved during training
sessions?

Options No of employees(In percentage)

Re-design the workplace 55%

Remove interference 15%

Re organise the work place 10%

Up grade the information 20%

Re-design the workplace Remove interference

Re organise the work place Up grade the information

20%

10%
55%

15%

Interpretation:

55% employees needs re-design of job, 15% of employees needs removal of

interferences during training, 10% of employees needs re-organisation of the
work place and 20% of employees needs up graded information during

training sessions
Q.9 What are the general complaints about training sessions?

Options No of employees(In percentage)

Time Wastage 70%

Gaps between the sessions 20%

Training sessions are unplanned 5%

Sessions are boring. 5%

Time Wastage Gaps between the sessions

Training sessions are unplanned Sessions are boring.

5%
5%

20%

70%

Interpretation:

70% of employees have a complaint of time wastage during training, 20% of

employees have a complaint of too many gaps between the sessions and 5%
of employees said training sessions are unplanned and are boring.
 CHAPTER 6
INTERPRETATION OF RESULTS

6.1 INTERPRETATION OF RESULTS

The interpretation results is concluded after the analysis of the responses
shown and received in the questionnaire of employees out of 100 respondents
:

➢ According to the above data, it is clear that out of 100 employees 50

employees consider training as a part of firm’s strategy and 40 of
employees strongly agree with the statement
➢ According to the above data, out of 100 employees in IDBI FLIC 40
are new staff which are given training and 10 of them is junior staff
which are given training.
➢ According to above data, out of 100 employees 35% of them consider
time as a barrier in their training and 40% of employees consider lack
of interest as a barrier.
➢ According to the above data, out of 100 employees 30% of employees
said job relation is used as a mode of training but also on other side
40% of employees said conference/discussion is used as mode of
training.
➢ According to above data, out of 100 employees 25% of employees
strongly agree with the statement.
➢ According to above data, out of 100 employees 25% of employees said
it took less than one month also 60% of employees said it took 1-2
months.
➢ According to the above data,65 out of 100 employees in IDBI FLIC
said that workplace of training is organised excellently.
➢ According to the above data, out of 100 employees 55% employees
needs re-design of job and 20% of employees needs up graded
information during training sessions.
➢ According to the above data,75 out of 100 employees in IDBI FLIC
have a complaint of time wastage during training.
 CHAPTER 7
RECOMMENDATIONS

7.1 RECOMMENDATIONS FOR THE ORGANIZATION

• To create a pull approach rather than a push approach.
• The company should adopt some other ways for nominating the trainees
like training need identification survey, self nomination, personal
analysis, organisational analysis, etc.

• Training should be a continuous process i.e., it should be imparted at

regular intervals.

• The duration of training program should be less and details should be

precise and accurate.

• HR department should conduct seminars on some vital topics so that

employees are always motivated and encouraged to work.
 CHAPTER 8
BIBLIOGRAPHY AND REFERENCES

BIBLIOGRAPHY

➢ http://www.idbifederal.com/Pages/home.aspx

➢ http://www.idbi.com/index.asp

➢ http://en.wikipedia.org/wiki/IDBI_Federal_Life_Insurance

➢ http://www.ageas.com/

➢ http://www.idbifederal.com/Products/Pages/default.aspx

REFERENCES

1. Chhabra T.N. (1992), Human Resource Management, Concepts and

Issues, Dhanpat Rai& Co.( P) Ltd., New Delhi.
2. Rao V.S.P. (1995), Human Resource Management, Text & Cases, Excel
Books, New Delhi.
3. Aswthappa K., Human Resource Management, Tata McGraw Hill, New
Delhi.
 ANNEXURES
QUESTIONNAIRE

PERSONAL DETAILS:

NAME:

AGE:

GENDER: MALE FEMALE

Q.1 Your organisation considers training as a part of organisational

strategy.Do

You agree with this statement?

Strongly agree

Agree

Disagree

Somewhat agree
Q.2 To whom is training given more in your organisation?

New staff

Junior staff

Senior staff

Based on requirement

Q.3 What are the barriers to training and development in your organisation?

Time

Lack of interest

Money

Non availability of skilled trainer

Q.4 What mode of training is normally used in your organisation?

Job relation

Conference/Discussion

External training

Programmed instruction
Q.5 “ Training and Development sessions conducted in your firm are
Useful.”Do you agree with this statement?

Strongly agree

Agree

Disagree

Somewhat agree

Q.6 How long does it take to implement the trained process?

Less than one month

1-2 months

2-4 months

More than 4 months

Q.7 How well the work place of training is organised?

Excellent

Good

Bad

Average
Q.8 . What are the conditions that have to be improved during training

sessions?

Re organise the job

Remove interference

Re organise the work- place

Up grade the information of material

given during training.

Q.9 . What are the general complaints about training sessions?

Take away precious time of workers

Too many gaps between the sessions.

Training sessions are unplanned.

Boring and not useful.