A PROJECT ON TO STUDY ON PRODUCT & SERVICES OF ORIENTAL INSURANCE COMPANY

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

Bachelor of Business Administration (Banking and Insurance)

Submitted by

: NITIKA GARG

Enrollment No. : 04419301809

UNDER THE GUIDANCE OF: Mrs. Swaty Wadhwa

PROJECT CORDINATOR: Mrs. SWATY WADHWA

Batch (2009-2012) KASTURI RAM COLLEGE OF HIGHER EDUCATION, Narela Delhi-110040

(Affiliated to Guru Gobind Singh Indraprastha University, Delhi)

Acknowledgment

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.

I am highly indebted to Mrs. Swaty Wadhwa, Lecturer Kasturi Ram College of Higher Education, for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.

I would like to express my special gratitude and thanks to industry persons for giving me such attention and time.

My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

NITIKA GARG 04419301809 BBA(B&I),K.R.C.H.E.

CERTIFICATE
This is certify NITIKA GARG student of Kasturi Ram College of Higher Education, Narela, has successfully completed the project report on title TO STUDY ON PRODUCT & SERVICES OF ORIENTAL INSURANCE COMPANY Under my supervision and guidance.

She has submitted his project partial fulfillment of requirement for the award of Degree of BBA(B&I) from GGSIPU.

PROJECT GUIDE Mrs. Swaty Wadhwa FACULTY MEMBER,K.R.C.H.E

CONTENTS CHAPTER I INTRODUCTION Overview of Industry as a whole Objective of the Study CHAPTER II COMPANY PROFILE 2.1 2.2 2.3 2.4 Profile of the Organization Problems of the Organization Competitors Information SWOT Analysis

CHAPTER III CONCEPTUAL DISCUSSION

CHAPTER IV RESEARCH METHODOLOGY CHAPTER V DATA ANALYSIS AND INTERPRETATION CHAPTER VI FINDINGS / CONCLUSION CHAPTER VII - RECOMMENDATIONS ANNEXURES Questionnaire Bibliography

CHAPTER-1

INTRODUCTION

AN OVERVIEW OF THE INSURANCE INDUSTRY IN INDIA

Indian economy is in transition over the last ten years owing to the initiation of major economic reforms affecting almost all sectors. The paradigm shift from a mixed economic organization to a market oriented organization has exposed all sectors to an intense compet0ition. Insurance being one among the players in the financial services sector. Indian insurance business is the most significant one among them. The industry covers two dimensions viz. Life insurance and General insurance. While Life Insurance Corporatin (LIC) of India is a financial intermediary which mobilizes peoples savings and invests large amounts of premiums, the General Insurance Companies (GIC) do not collect savings, yet they raise crores of rupees from premiums. General insurance deals with exposure of risks to goods and property, whereas life insurance is a way to meet the contingencies of physical death and economic death. In case of prematured death of the assured, the proceeds of policy are paid to the beneficiaries and annuities protect the assured against economic death when he lives too long to arrange for his necessities. In simple language, insurance promises a compensation of monetary loss sustained by a particular person, due to the damage or destruction of a particular piece of property owned by him, provided it happens due to certain courses. In other words, it is perfectly a simple promise to make good the loss.

HISTORICAL ASPECTS OF INSURANCE IN INDIA

Insurance activity in India is going on for more than 150 years. In India, life insurance in its modern form was brought for the first time by the Britishers. The Oriental Life Insurance Company started in 1818 in Calcutta was the first to be founded in India by Europeans to help the widows of their community. The general insurance business in India, on the other hand, can trace its roots to him Triton Insurance Company Ltd, the first general insurance company established in the year 1850 in Kolkata by the British. The year 1870, saw the birth of first Indian Insurance Company namely, Bombay Mutual Life Assurance Society. The basic aim of this company was to insure Indian lives at normal rates since in the earlier period. Indian lives were treated as subnormal and loaded with an extra premium of fifteen to twenty per cent. However, right up to the end of 19th century, the foreign insurance companies in India had an upper hand in matters of Insurance business. Insuring Indian lives with 10 percent of extra premium was a common practice prevalent in those times. The Indian Life Assurance Companies were the first

to regulate the life insurance business in 1912. In 1928, the Indian Insurance companies act enabled the government to collect statistical information about both life and non life insurance business. Later, the insurance Act of 1938 was passed and department of insurance under authority of superintendent of insurance was established for the administration of the Act. Upto 1939, 199 companies were working in India. However, the period 1939-55 was marked by: World war II resulting in hasty premium adjustments by Indian companies. Series of amendments to the insurance Act, 1938. Appointment of a committee under the Chairmanship of Sir Cowasji Jehanger to enquire into and to recommend measures to check certain trends and undesirable features in the management of insurance companies. The findings of the sub committee on insurance under the National Planning Commission headed by Pt. Jawaharlal Nehru. Partition of India. De-valuation of rupee on September 18, 1949. The insurance Amendment Act. Interest yield sagging to the lowest lend of three percent and remaining at that level over 1947-1949. The rate war and cut throat competition between insurance companies. The recommendation of the ruling political party, the Indian National Congress, to the government that the life sector insurance be nationalized, and The founding of the Jiwanlal Chimanlal Setawad Memorial--The Federation of Insurance Institutes.

INSURANCE SECTOR REFORMS

The government in a bid to complement the reforms initiated in the financial sector established a committee headed by former finance secretary and Reserve Bank of India (RBI) governor, Mr R.N. Malhotra to evaluate the insurance industry and to recommend its future direction. This committee suggested the following changes: Government stake in insurance companies be brought down to 50 percent. The take over of the holding of GIC and its subsidiaries in order to facilitate their functioning as independent corporations. Allowing private enterprise in the sector with companies with a paid up capital of a minimum of Rs 100 crore. No single entity to function in both Life and General insurance segments. Foreign companies to be allowed only in combination with an Indian partner. Changed to be made to the insurance Act. An independent insurance regulatory authority to be set up. Reduction in the mandatory investments of LIC Life Fund in government securities to be brought down from 75 percent to 50 percent. GIC and its subsidiaries are not to hold more than 5 percent in any company. Popularization of pension schemes in rural areas. Allowing PLI (Postal life insurance) in rural areas. Rapid computerization of branches.

Payment of interest on delayed claims. Use of revised mortality tables by LIC and revision of premiums after every 10 years. Issue of long term unit linked insurance plans. Transfer of LALGI and IRDP schemes to concerned government authorities. The insurance sector began its reform process with the passage of the IRDA (the Insurance Regulatory and development authority) bill in Parliament in December 1999. However with the setting up of IRDA, the government has once again de-regulated the sector opening it for the private players. The entry of private players has enabled the industry to look at alternative distribution channels. To get the maximum pie of the premium, every insurance company is adopting new distribution and marketing strategies. In the last two years alone, the economy has witnessed some fundamental changes in the Indian insurance industry. The total foreign direct investment in India in the insurance sector today stands at Rs 95,250 crore. The total premium income of the Indian insurance industry both life and non life for the year ending March 31, 2007 stands at Rs 1,91,376,11 crore, out of this, the share of life insurance premium is 78 percent, i.e. Rs 7155416 crore and general insurance premium is 22 percent, i.e. Rs 15,638 crore. The share of private sector in life insurance cake has increased from 0.02 to 1.99 percent in the last two years. While the share of private sector in general insurance cake has increased from 0.07 to 9.50 percent. The transition of the insurance industry from a public monopoly to a competitive environment new presents very interesting challenges both to the new players and to the customer. Not only the new players have an opportunity to test out their various hypothesis and apply learnings from overseas markets, the customer will have a greater choice when it comes to choosing a provider or a solution for their needs.

The study of insurance companies of that time clearly reveal that concept of trustship which should be cornerstone of life business seemed entirely lacking and most of the managements had no appreciation of the clear and vital distinction that exists between trust monies and those that

belong to joint stock companies owned by shareholders. So the nationalization of life insurance business became necessary with a view to - provide cent percent security to policy holder, ensure the use of life insurance funds for nation building activities, avoid wasteful efforts in competition, save the dividends paid to shareholder of insurance companies, avoid certain undesirable practices adopted by some of the insurance companies management, and spread the gospel of life insurance into the neglected rural areas.

245 Indian and foreign insurance and provident societies taken over by the central Government and nationalized. In 1956, the Government of India nationalized the life insurance business. Since then the entire life insurance business is being transacted by the Life insurance Corporation of India for more than four decades, the LIC has been enjoying monopoly status enjoying supernormal profits at the expense of consumers in life business in the country. The LIC by this time has grown manifold. At present it has a network of 7 zones, 100 divisions and over 2000 branches. The annual premium income was US $21 million in 1956. Current business investment in LIC is over US $29 billion. Life insurance funds constitute approximately 11 percent of gross household saving in financial assets in India, and a little over 1 percent of gross domestic product. Life insurance corporation of India, despite its best efforts, has not penetrated more than 15 percent of the insurance population, which itself is more than 300 million. Insurance penetration as a measure of percentage of GDP is very low for India and countries like South Korea are much higher than India. With approximately $7 billion of premium collected annually, India is the 23rd largest market in the world. The General insurance business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from January 1, 1973. 107 insures amalgamated and grouped into four companies, viz the national insurance company Ltd., the New India Assurance Company Ltd., the Oriental Fire and general insurance company Ltd., and the United India insurance company Le., General insurance company (GIC) was incorporated as a company. The four constituents of the GIC were to operate on a competitive basis and be governed by the guidelines structured by the Government of India. Recognizing the

need for reforms in the financial and insurance sector, the government appointed the Malhotra Committee to seek and identify the measures required for the reform process in the insurance sector.

OBJECTIVE OF THE STUDY

The aim of study is to know about various functional departments in the oriental insurance company. To make an awareness of the general insurance industry. To analyse the internal strength and weakness and external threats and opportunities of the organisation. To know the products and services of oriental insurance company and satisfaction of consumers.

CHAPTER-2

COMPANY PROFILE

COMPANY PROFILE
THE ORIENTAL INSURANCE COMPANY LIMITED The Oriental Insurance Company Ltd was incorporated at Bombay on 12th September 1947. The Company was a wholly owned subsidiary of the Oriental Government Security Life Assurance Company Ltd and was formed to carry out General Insurance business. The Company was a subsidiary of Life Insurance Corporation of India from 1956 to 1973 ( till the General Insurance Business was nationalized in the country). In 2003 all shares of our company held by the General Insurance Corporation of India has been transferred to Central Government. The Company is a pioneer in laying down systems for smooth and orderly conduct of the business. The strength of the company lies in its highly trained and motivated work force that covers various disciplines and has vast expertise. Oriental specializes in devising special covers for large projects like power plants, petrochemical, steel and chemical plants. The company has developed various types of insurance covers to cater to the needs of both the urban and rural population of India. The Company has a highly technically qualified and competent team of professionals to render the best customer service. Oriental Insurance made a modest beginning with a first year premium of Rs.99,946 in 1950. The goal of the Company was Service to clients and achievement thereof was helped by the strong traditions built up overtime. ORIENTAL with its head Office at New Delhi has 26 Regional Offices and nearly 900+ operating Offices in various cities of the country. The Company has overseas operations in Nepal, Kuwait and Dubai. The Company has a total strength of around 15,000+ employees. From less than a lakh at inception, the Gross Premium went up to Rs.58 crores in 1973 and during 2008-09 the figure stood at a mammoth Rs. 4077.90 crores.

Our Corporate Mission To contribute to the socio economic objectives of the nation by being a vibrant and viable organization catering to the growing insurance needs of the community. Towards this end we will strive for effective management of business operations. Our Corporate Objectives 1. To serve better the insurance needs of the entire community, keeping CUSTOMER as the focus. 2. To strengthen our tradition of being CUSTOMER - FRIENDLY, in order to provide quality service. 3. To manage Business profitably, manage funds judiciously and deploy investible funds for optimum yield. 4. To optimise the retention of Indian business and conduct reinsurance and international operations in the best interest of the country. 5. 6. To work towards minimisation of losses and develop Risk Management Technologies. To function as a strong and dynamic non-life insurer.

Management Oriental Insurance is a professionally managed independent Board-run Company. Illustrious personalities like Shri T.A.Pai ( who later became Cabinet Minister in the Union Government ), Shri K. R. Puri, who rose to be the Governor of RBI and Shri B.D.Pande (who later became the Governor of West Bengal) were among our past Chairmen. At present Dr. R.K.Kaul is Chairman-Cum-Managing Director of our Company. The Board of Directors of our Company include eminent personalities in various fields. Financials The Companys Gross Direct Premium Income in India during the year 2008-09 (Audited) was Rs.3964.26 crores and the Premium Income outside India was Rs.113.64 crores. The Gross

Direct Premium in India & abroad showed a growth of 4.55%. The Net Premium Income (Domestic and Foreign), on the other hand grew by 12.38% from Rs. 2878.67 crores in 2007-.08 to Rs. 3235.10 crores in 2008-09. The companys operations in Nepal, Dubai and Kuwait yielded a Gross Direct Premium of Rs. 113.64 crores during the year 2008-09 as against Rs. 92.07 crores during the previous year. The net premium on foreign operations stood at Rs. 111.26 crores as against this, the Net Incurred Claims during this year in respect of foreign operations were Rs.65.95 crores at 59.27%. The foreign operations have resulted in an overall surplus of Rs. 15.27 crores. After taking into account the income from Interest, Dividend & Rent of Rs 608.23 crores and Profit on sale of Investments of Rs 387.39, we have posted a pre-tax loss of Rs 82.66 crores & post-tax loss of Rs. 52.66 crores for the year 2008-09. As against the desirable Solvency Margin of 1.5 mandated by the Indian regulatory body, IRDA, the available Solvency Margin is 1.66 as at 31st March 2009. The Company had a documents issuance ratio of more than 98% during the year, having issued 96.55 lacs documents approximately. The claims disposal ratio for non-suit claims settlement ratio was 86.30%. The Company is not only IT friendly but also Technology Savvy. We have our own website in place. An integrated Non-Life Insurance Application Software (INLIAS) has been implemented in all the 1018 offices. This will ensure that our Customer Service parameters grow by leaps and bounds. No wonder, The Oriental Insurance Company has been enjoying the highest rating from leading Indian credit rating agencies CRISIL and ICRA. The Company has also been rated as B++(Very Good by AM Best, an international rating agency.

MANAGEMENT
Chairman-Cum-Managing Director Dr. R.K.Kaul Directors Dr. R.K.Kaul K.R.Kamath Lalit Kumar S. K. Chanana D. Singh General Managers S. K. Chanana D. Singh S. Surenther Niraj Kumar A. K. Saxena N. K. Singh K. K. Rao Financial Adviser S. Surenther Chief Vigilance Officer Nawang Tobdan, GM

Company Secretary Mrs. Rashmi Bajpai Popular Policies A few of our most widely sold and most useful policies are:

PNB - Oriental Royal Mediclaim Policy Motor Policies - Terms & Conditions Comprehensive Health Insurance Scheme Electronic Equipment Insurance Policy Group Mediclaim Policy Householders Insurance Policy Individual Mediclaim Policy Kissan Package Insurance Motor Cycle Package Policy

Rural Insurance Policies Bhagyasree Child Welfare Policy Cattle Insurance Cycle Rickshaw Insurance Policy Dog Insurance fish in Ponds (Embankments) Insurance of Fish in Ponds Gramin Accident Insurance

Janata Personal Accident Policy Khalihan Insurance Package Policy Kissan Agricultural Pumpset Insurance Kissan Package Insurance Policy Poultry Insurance Rabbit Insurance Plantation/Horticulture Insurance rajrajeshwari Mahila Kalyan Bima Yojna (New) Sericulture (Silkworm) Insurance Tea Plantation Insurance Universal Health Insurance Scheme

ORGANIZATION STRUCTURE
DIRECTOR

VICE PRESIDENT

SR. BRANCH MANAGER

BRANCH MANAGER

ASSISTANT BRANCH MANAGER

SR. SALES MANAGER

SALES MANAGER

ASSISTANT MANAGER

MANAGEMENT TRAINEE

AN INSURANCE COMPANY :

In the insurance industry the sales team following the typical organization structure:

Hierarchy in Insurance Company

SALES MANAGER

AREA SALES MANAGER

AREA SALES MANAGER

AREA SALES MANAGER

UNIT MANAGER

UNIT MANAGER

UNIT MANAGER

ADVISORS

ADVISORS

ADVISORS

COMPETITIVE INFORMATION

AVIVA LIFE INSURANCE, INDIA

Aviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of UK and Dabur, one of India's leading producer of traditional healthcare products. Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. Aviva is UK's largest and the world's sixth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world.. Aviva pioneered the concept of Bancassurance in India. Currently, Aviva has Bancassurance tieups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir and Maharashtra and one regional Bank in Sikkim. Aviva has 40 Branches in India (including rural branches) supporting its distribution network. Through its Bancassurance partner locations, Aviva products are available in 378 towns and cities across India. BAJAJ ALLIANZ

Bajaj Allianz is a joint venture between Allianz AG one of the worlds largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz is into both life insurance and general insurance.

Allianz Group is one of the worlds leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. Today, Bajaj Allianz is one of Indias leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants. BIRLA SUN LIFE INSURANCE

Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla Group and Sun Life Financial of Canada. Aditya Birla Group is an Indian multinational conglomerate with presence in India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. Sun Life Assurance, Sun Life Financials primary insurance business, is one of the leading insurance companies of the world and ranks amongst the largest international financial services 23rganizations in the world. The Group has presence in several countries such as Canada, United States, Philippines, Japan, Indonesia, India and Bermuda. ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance company in the UK.

ICICI Prudential is curently the No. 1 private life insurer in the country. For the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. ING VYSYA LIFE INSURANCE

ING Vysya Life Insurance Company Limited is a joint venture between Vysya Bank and ING Group of Holland, the world's 4th largest financial services group, with presence across 50 countries, and a heritage of over 150 years. ING Vysya Life Insurance Company Private Limited entered the private life insurance industry in India in September 2001. With in a short span of time ING Vysya Life Insurance has registered an impressive growth. The company currently has over 10,000 active advisors working from 75 branches (in 30 cities) across the country and over 2300 employees. KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd.(KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial institutions and offers a range of financial services such as commercial banking, stock broking, mutual funds, life insurance, and investment banking. Old Mutual was established more than 150 years ago and offers a diverse range of financial services in South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization and has its headquarters in London.

LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance business in India with its Head Office at Mumbai. It has been established by an act of the Parliament and started functioning from 1/9/1956. LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766 crore generated by the insurance industry through group business in the year 2005-06, LIC alone accounted for Rs 3051 crore. In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of lives insured, LIC has shown a growth of over 152%. In respect of number of schemes, LIC has a growth of 2%. LIC's market share in number of individuals covered and number of policies stands at 77% and 81%, respectively. MAX NEW YORK LIFE INSURANCE

Max New York Life Insurance Company Limited is a joint venture between Max India Limited, a multi-business corporate, and New York Life International, a global expert in life insurance. New York Life is a Fortune 100 company that has over 160 years of experience in the life insurance business. Max India Limited is a multi-business corporate dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic Products businesses.

Max New York Life Insurance started its operations in India in 2000. It is the first life insurance

company in India to be awarded the IS0 9001:2000 certification. Max New York offers customized products tailored to suit individual's needs. With its various Products and Riders, there are more than 400 product combinations to choose from. Today, Max New York Life Insurance has a network of 57 offices spread over 37 cities all over India. METLIFE INDIA INSURANCE

MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu. Met Life Group has presence in America and Asia and has an experience of over 137 years in providing financial services. The MetLife companies are the number one life insurer in the U.S. with approximately US $2.8 trillion of life insurance in force. MetLife serves 88 of the top one hundred FORTUNE 500 companies. MetLife entered Indian insurance sector in 2001. SBI LIFE INSURANCE

SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. SBI Life Insurance is registered with an authorised capital of Rs 500 crore and a paid up capital of Rs 350 crores. State Bank of India is the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has a network of over 14,000 branches across the country, the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's leading Bank. BNP is one of the oldest foreign banks with a presence in India dating back to 1860.

SHRIRAM LIFE INSURANCE

Shriram Life Insurance Company Ltd is a joint venture between the Chennai-based Shriram Group and the South African insurance major Sanlam. The company launched its operations in India in December 2005. Shriram Life has set a target of achieving a premium income of Rs 110 crore during the first year of operations. While focussing largely on the strong network of over 65,000 agents and distribution network of more than 550 branches, Shriram Life is also contemplating bancassurance alliances with couple of banks. TATA AIG LIFE INSURANCE

Tata AIG Life Insurance Company Limited is a joint venture between Tata Group and American International Group, Inc. (AIG). Tata Group is one of the oldest and leading business groups of India. Tata Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalisation of insurance. The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. AIG has one of the most extensive life insurance networks in the world.

S.W.O.T. ANALYSIS
SWOT Analysis is a tool used for understanding an organization's strengths, weaknesses, opportunities and threats The SWOT Analysis tool can be used in identifying an organization's strengths (S) and weaknesses (W), and examining the opportunities (O) and threats (T) it is facing. The outcome from a SWOT Analysis enables organizations to focus on strengths, minimize weaknesses, address threats, and take the greatest possible advantage of opportunities available. Strengths: Our members value the professional designation. They have a lower course fee structure than similar programs. They provide good customer service. Our instructors are highly-regarded in the profession. They have a small staff and low overhead.

Weaknesses: We are slow to make decisions and adapt to changes that affect the profession. The professional designation is rarely included as a condition of employment. We are overly dependent on key volunteers who developed and teach our certification courses. We do not have the resources to research the market and promote the designation.

Opportunities A developing market such as the Internet Mergers, joint ventures or strategic alliances Moving into new market segments that offer improved profits A new international market A market vacated by an ineffective competitor

Threats A new competitor in your home market Price wars with competitors A competitor has a new, innovative product or service Competitors have superior access to channels of distribution Taxation is introduced on your product or service

CHAPTER- 3 CONCEPTUAL DISCUSSION

INTRODUCTION TO HR POLICIES
Human resources is an increasingly broadening term with which an organization, or other human system describes the combination of traditionally administrative personnel functions with acquisition and application of skills, knowledge and experience, employee relations and resource planning at various levels PURPOSE PURPOSE OF HR POLICIES HR POLICIES ALLOW AN ORGANIZATION To be clear with employees on The nature of the organisation What they should expect from the company What the company expects of them How policies and procedures work at your company What is acceptable and unacceptable behaviour The consequences of unacceptable behaviour Group Growth policy

The establishment of policies can help an organization demonstrate that it meets requirements for diversity, ethics and training. In order to fire a person it may be necessary to show cause compliant with employment contracts and collective bargaining agreements; the establishment of HR Policies to document steps in procedures, including displinary procedures, is now standard. IMPORTANCE Human resource management policies are vital for organizations that are serious about resolving personnel issues and finding hr solutions. Absolute hr solutions provide clients with

professional human resource advice, human resource policy solutions and job description writing and evaluation services. Common Sense would seem to dictate the necessity of having written policies and procedures covering all aspects of the employee/organization relationship. Yet, there are organizations with few or no written policies. In fact, there are organizations that have never considered developing policies and procedures-written or otherwise. There are organizations with written policies and procedures that read well but have no relationship to the needs of the organization/company or employees. There are organizations with elaborate sets of policies and procedures that no one seems to read, let alone follow, and there are organizations that appear to use their policies and procedures primarily as rules for identifying and punishing infractions. In actuality, HR policies Provide clear communication between organization/company and its employees regarding conditions of employment. Form a basis for treating all employees fairly and equally. Are a set of guidelines for supervisors and managers. Create a basis for developing employee handbooks. Establish a basis for regularly reviewing possible changes affecting employees.

To fulfill all these purposes and objectives, Policies should: Be clear and specific, but provide adequate flexibility to meet changing conditions. Comply with all appropriate federal and state laws and regulations. Agree with one another and reflect an overall fair and equal approach to employees.

HR POLICIES AT ORIENTAL INSURANCE ATTENDANCE POLICY FUEL REIMBURSEMENT POLICY DRIVERS SALARY REIMBURSEMENT POLICY DOMICILIARY MEDICAL REIMBURSEMENT POLICY TELEPHONE REIMBURSEMENT POLICY LEAVE POLICY CASH HANDLING BY SALES STAFF POLICY STATIONARY POLICY TRAVEL POLICY TRANSFER POLICY EDUCATIONAL SCHOLARSHIP SCHEME POLICY WHISTLEBLOWER POLICY

ATTENDANCE POLICY
OBJECTIVE This policy helps to create awareness & communicate the attendance guidelines to all employees of Oriental Insurance. The policy also aims to enable a clear understanding of the attendance system and the process. APPLICABILITY All employees who are on the rolls and those who have been employed on contractual basis with Oriental Insurance. All Insurance associates are also required to mark attendance on Empower. PROCEDURE The policy is effective from 1 April 2009. Salary for a month is processed based on attendance records for the entire month as per Empower. Attendance to be marked on Empower every day for work attended.The attendance marked for the day worked can be viewed through attendance calendar available in Empower . For centres where Empower is not available ,the attendance can be marked to the concerned HR via mail in an excel format. Given below is the format :BRANCH HEAD REGIONAL HR ZONAL HR EMPOWER TEAM

SALIENT FEATURES ONLINE ATTENDANCE Online attendance is captured on Empower and will be considered for all those employees who are in locations which have Oriental Insurance intranet , as per their latest location record on Empower.

OFFLINE ATTENDANCE Offline attendance will be considered for those employees who are in locations which do not have Oriental Insurance intranet, as per their latest location record on Empower.

AR (ATTENDANCE REGULATION ) This option is used for updating the attendance record for those days for which the employees has not marked attendance through the employee would have been present at the workplace or at an outstation location. These days are considered as paid days while calculating the salary.

LR (LEAVE REGULALARIZATION ) This option is used for updating the attendance record for those days for which te employees has been absent from the workplace due to the employee being on approved paid leave as per the guidelines specified in the Leave policy. These days are considered as paid days while calculating the salary.

ANY OTHER AR (ATTENDANCE REGULARIZATION) OR LR (LEAVE REGULARIZATION ) The request has to be approved by the immediate Reporting Manager of the employee on or before 18th of the salary processing month. Only previous month s AR or LR are considered for reversing the salary if the same has been approved on or before 18th of the salary processing month. No salary is paid for an AR or LR done for days beyond last paid month.

Cut-off date for providing inputs for salary processing is 18th of the month. If an employee joins after 18th of the month of salary processing then his/her salary for tat month will be calculated along with the salary for the next month subject to the same being intimated and updated in the system before 18th of the next month.

In case of a separation case , it is mandatory for the employee to regularize his attendance on the system till his relieving date. No manual inputs will be accepted.

NON REGULARIZATION OF ATTENDANCE : LOP (Loss of pay) would apply for days where the employees attendance data is not available due to any of the below reasons : 1. Non regularization of attendance 2. Non regularization of leave 3. Approval for leave / attendance done after 18th of the salary processing 4. Any weekly off which is preceded and followed by non regularized attendance days , the entire period will be considered as LOP. 5. Attendance regularization not done for the entire month. In this case, the salary for the month will be kept on hold. 6. In case there is any irregularity in making attendance ; salary for the said month will be kept on hold , and same will be released along with the subsequent month, subject to regularization of attendance. LOP will be reversed with the following pay cycle, provided the required regularizations are done before the cutoff date for that pay cycle. For details on your attendance employees can refer the Attendance calendar available on Empower, EXCEPTION Any exception to these policy guidelines requires the approval of GM HR

FUEL REIMBURSEMENT
OBJECTIVE Through this policy employees can claim the fuel expenses incurred during the tenure of his/her association with Oriental Insurance. APPLICABILITY Employees are eligible to claim fuel reimbursement on production of bills maximum to the limit as mentioned in employees CTC structure. Employees monthly claim cannot exceed the prorata eligibility. The impact of revision in fuel prices upwards or downwards does not have any influence on the reimbursement values as it is clearly stems from the eligibility mentioned in employees CTC structure. IMPORTANT POINTS TO REMEMBER The scheme does not cover repairs , maintenance , toll or parking charges incurred on he vehicle. This reimbursement cannot be credited as a taxed monthly component and hence if employee decides not to claim it on a regular basis will be paid to the employee in the march salary , which will be subject to income- tax. Number of months served in the organization in a financial year will decide your eligibility till that period. Employee can exhaust their fuel reimbursement limit in maximum 12 claims. Any unclaimed/balance amount for the respective financial year will be paid to the employee in the March salary which will be subject to income-tax. PROCEDURE Claim for reimbursement can be done on a monthly basis wherein the fuel reimbursement forms will be processed on 5th and 20th of every month. The Fuel bills for every financial year are not allowed to be claimed upto 31st March. They cannot be claimed thereafter since no accumulation is permissible.

DRIVERS SALARY REIMBURSEMENT

OBJECTIVE Through this policy employees can claim the drivers salary expenses incurred during the tenure of his/her association with Oriental Insurance. The drivers salary reimbursement process will be considered under a financial year basis i.e. (April March) APPLICABILITY Employees re eligible to claim drivers salary reimbursement on complying to the limit as mentioned in the CTC structure .The monthly claim cannot exceed employees pro rata eligibility. The impact of revision in the employees drivers salary upwards or downwards does not have any influence on the reimbursement values as it clearly stems from the eligibility mentioned in the CTC structure. PROCEDURE This policy can be exercised with the help of the following steps: The scheme becomes operative from the date of joining. This scheme can be availed by filling the Drivers salary reimbursement form which can be downloaded from the HR intranet. The form will consist of two parts one consisting of the amount to be claimed and another an acknowledgement in form of your drivers initials on a revenue stamp.( Number of months served in the organization in a financial year will employees eligibility till that period ) Claim for reimbursement can be done on a monthly basis wherein the Drivers salary reimbursement forms will be processed on 5th and 20th of every month. decide the

IMPORTANT POINTS TO REMEMBER The scheme does not cover repairs, maintenance, toll or parking charges incurred on the vehicle. Employees can exhaust their Drivers salary reimbursement limit in maximum 12 claims. Any unclaimed / balance amount for the respective financial year will be paid to the employee in the march salary which will be subject to income tax.

DOMICILIARY MEDICAL REIMBURSEMENT

OBJECTIVE The scheme covers the expenses incurred on domiciliary medical treatment for the employ and his family. INTRODUCTION The scheme covers the expenses incurred on the medical treatment of the employee and his family. Family for this purpose means spouse / parents /dependants brothers or sisters and unmarried dependant children upto the age of 25 years. The scheme becomes operative on confirmation of the employee retrospectively from the date of joining. He/She can claim the medical expenses incurred during the tenure of his /her association with Oriental Insurance. The medical reimbursement process will be considered under a financial year basis. i.e. (April March) PROCEDURE The scheme can be availed of by employees by completing the medical reimbursement form which can be downloaded from the HR intranet and submit the same along with the original medical bills to Corporate HR.

Claim for reimbursement will be processed on a fortnightly basis ie. On 5th and 20th of every month.

TERMS AND CONDITIONS 1. The medical bills for every financial year are allowed to be claimed upto 31st March. They cannot be claimed thereafter since no accumulation is possible. 2. Tax exemption on Medical reimbursement will be allowed only if claims are supported with necessary bills as per policy. 3. Employees can exhaust their medical reimbursement limit in 12 claims. Amount equal to prorated eligibility will be processed on settlement of claim. 4. Any unclaimed/balance amount for the respective financial year will be paid to the employee in the March salary which will be subject to income tax.

STATIONARY POLICY
OBJECTIVE This policy keep the track of the consolidated periodic stationary requirement of a department , from both expenses and budget point of view. PROCEDURE Presently stationary is being requested , as and when required by all , the following terms and conditions are followed through this policy : Departments would generate their own stationary requisition. Requisition must be authorized by the Department head. Requisition must be forwarded to once in a fortnight ( on 1stand on 15th) All requisition forwarded to Administration for consolidation. Administration will execute the supply within a day or two, according to Departments requisition.

TELEPHONE REIMBURSEMENT POLICY

OBJECTIVE Through this policy employees can claim the Telephone bill expenses incurred during the tenure of his / her association with Oriental Insurance. INTRODUCTION The scheme becomes operative from the date of joining and the Telephone bill reimbursement process will be considered under a financial year basis i.e (April to March) ELIGIBILITY Employees are eligible to claim telephone bill reimbursement on production of bills maximum to the limit as mentioned in the employees CTC structure. The monthly can not exceed the pro-rata eligibility .The impact of revision in telephone call rates upwards or downwards does not have any influence on the reimbursement values as it clearly stems form the eligibility mentioned in the employees CTC structure. PROCEDURE This scheme can be availed by : Filling the Telephone bill reimbursement form which can be downloaded from the HR intranet and submit the same along with original or photocopy of the original bill. Claim for reimbursement can be done on a monthly basis wherein the Telephone bill reimbursement form will be processed on 5th and 20th of every month. The Telephone bills for every financial year are allowed to be claimed upto 31st March. They cannot be claimed thereafter since no accumulation is permissible.

POINTS TO REMEMBER To avail this reimbursement the telephone connection (landline or mobile).The reimbursement can be claimed only for the connection either landline or mobile and the same connection should remain constant at least for one financial year. This needs to be registered on the employees name. One can exhaust the Telephone bill reimbursement limit in maximum 12 claims. LEAVE POLICY In Oriental Insurance, employees can avail various types of leave. All eligible employees are advised to adhere to the following guidelines : Employees in the E/F band ,whose confirmation period is three months would be eligible for 1 casual leave and 2 sick leaves during their probation period. All other employees whose confirmation period is 6 months or 1 year would be eligible for 2 casual leaves and 3 sick leaves during their probation period. However , if the employee leaves during probation period or is terminated this leave would be treated as leave without the pay and the same would be deducted from the Full and Final settlement. BAND ELIGIBILITY LEAVES 1 CASUAL LEAVE E/F CONFIRMATION PERIOD IS 3 MONTHS & 2 SICK LEAVES 2 CASUAL LEAVES CONFIRMATION &

PERIOD IS 6 MONTHS 3 SICK LEAVES OR 1 YEAR.

PRIVILEGE LEAVE Eligibility Subject to Employee confirmation in the organization . Quantum 30 days per calendar year.(January to December ).Privilege Leave will be credited to the employees leave account at the end of every month proportionately @ 2.5 days per month. In case an employee works for minimum 15 days , then 1 privilege leave will be credited to his / her account , if he / she completes minimum 30 days , only then he will be eligible for 2.5 days . Leave without pay will not be considered while calculating privilege leave. Accumulation All unutilized PL will be carried forward and will be added to the next years quantum. PL is encashable at the time of employee exit. Authorization Sanction of PL request is a must prior to proceeding on leave .All employees need to take approval from their respective reporting manager. Note- If a holiday falls during PL period , the holiday will be considered as PL and not a holiday. SICK LEAVE Quantum 15 days per calendar year .Unvailed SL will be carried forward in the next year will be added to the next years SL.

How o avail SL can be applied after it as been availed and should be requested for authorization. SL , which is beyond 2 days , will require fitness certificate from a registered medical practitioner which should be submitted through a sanctioning authority to HR while resuming duty. The company reserves the right to examine the employee during / after SL period by the companys medical officer if found necessary. Accumulation All unutilized SL will be carried forward and will be added to the next years quantum. SL is not considered for encashment at that time of employee exit. Note- it is important that the concerned employee communicates his/her unavailability due to sickness to his / her senior on that day at the earliest. CASUAL LEAVE Quantum 8 days per calendar year. CL will be credited to the employees leave account every 1st January each year. Casual leave is provided for unforeseen and urgent circumstances. However, CL will have to be necessarily applied at least one day in advance or in case of the urgency and the employee is unable to attend duty , they need to communicate their absence on that day at the earliest to their superior. In such cases , immediately upon resuming duty , request for CL should be made. Note- A maximum of 3 days CL can be availed of at a stretch. Unclaimed CL is not carried forward and cannot be encashed also.

MATERNITY LEAVE Quantum 90 days ( up to 45 days before & 45 days after delivery ). How to avail To avail this leave , one needs to inform respective functional head/ branch manager about the expected period of absence and provide medical certificate from the medical practitioner certifying the approximate date & month of delivery . This document (photocopy) should be forwarded to HR through the functional head / branch manager . Maternity Leave is granted for two pregnancies only. PRIVILIGE LEAVE SICK LEAVE CASUAL LEAVE MATERNITY LEAVE

30 days per 15 calendar QUANTUM calendar year per year

8 days per 90 days (up to calendar year. 45 days before & 45 days after delivery )

The HOW TO AVAIL

This

leave By be informing

Inform respective functional head about the

eligibility of should this subject employee confirmation.

leave requested for the to authorization superior one before.

day expected period Nothing as

Added to the Added to the Unclaimed ACCUMULATION next years next

years CL is not such carried forward mentioned

quantum

quantum

LEAVE TRAVEL ASSISTANCE (LTA)

INTRODUCTION Through this policy the employee gets the amount of the travel fare incurre by him and his family FAMILY MEANS Spouse & Children of the employee. Parents , Brothers & Sisters of the employee or any other of them , wholly or mainly dependant on the employee. ELIGIBILITY All confirmed employees , who have completed one year of service from the date of joining the company , are eligible to avail Leave Travel Assistance (LTA ) HOW TO AVAIL A minimum of four days of privilege leave will have to be availed in order to claim LTA. LTA is eligible on a calendar year basis. It can be claimed for every completed calendar year (Jan to Dec ) The LTA claim form needs to be forwarded to Salary Queries. Please refer Check list of documents to be attached before sending LTA form. Check list of Documents to be attached Printout of Leave regularization view in EMPOWER providing proof of privilege Leave availed & approved by seniors. Original travel tickets.

Once the employee submit the LTA application , and after approval of the same by the HR dept , it will be sent to accounts dept wherein their LTA amount will be directly credited into their salary account. LTA credit in advance cannot be permitted. EXEMPTION Employees can avail exemption only in respect of two journeys performed in a block of four calendar years. Employee can claim such exemption against accumulated unclaimed eligibilities of previous calendar years. As per income Tax Act , 1961 LTA can be accumulated for a block of four calendar years commencing from the year 1986. The current block is 2006-2009. UNCLAIMED Any unclaimed LTA eligible for previous block of four calendar years will be paid to the employee in his December salary of the ensuing year of the succeeding block of four calendar years which will be subject to income Tax CASH HANDLING BY SALES STAFF INTRODUCTION All sales staff is instructed that if they accept proposals with cash from Customers/ FC/ Corporate agent , the same should be deposited with operations before the end of the cash timings of the branch. POINTS TO REMEMBER If the forms are incomplete and returned by operations or if the sales staff could not make I before the cash timings , then he needs to ensure that the money is returned with proposal form to concerned Customer/FC/Corporate Agent the same day by itself.

Further he needs to inform that money is not kept with him in the event of the proposal not being logged in with operations. Violation of the same will be the sole responsibility of the individual sales staff and any loss will have to be borne by him.

TRAVEL POLICY
OBJECTIVE An employee has to travel for business purpose hence travel should be consistent with the needs of the business and should be used to accomplish the business objective in the most efficient manner. This policy helps to achieve the above objective. 1. LOCAL CONVEYENCE

Note- Employees who are already entitled for fuel reimbursement/company owned car/company leased car/incentive car will not be entitled for any reimbursement mentioned under:(a) Mode & Class of travel The transport used should be the public transport. Reimbursement of 1st class train ticket and bus/auto/taxi fare within the city limits shall be paid on the basis of approval in travel settlement form. (Prior approval with written justification for booking a car, to be used locally within the sphere of duty is mandatory. The following table mentions the user of the travel policy and the person from whom the approval has to be taken to continue with the policy:-

USER

APPROVAL

Employee at branches Zonal Manager

Branch Manager Business head or General Manager , (sales in the absence of Business head)

Employees at Head offices & Hubs Head of the Department General Manager

Head of the Department General Manager or Managing Director Managing Director

Note-If a group of employees are traveling by public transport (taxi.. etc) then the senior most , shall make payments for all the other subordinates. # Use of personal owned vehicles for official work. Use of personal owned vehicles for official work will be at the employees own risk and company will not be liable in case of accident or damage. Fuel reimbursements can be claimed by employees using their personal owned vehicles for official work except those covered under the incentive scheme subject to a ceiling of : CAR (all employees ) Rs 6.00 per km Two wheelers (all employees ) Rs 2.50 km

The above takes into account :- PETROL, OIL , MAINTENANCE , EXPENSES , REPAIRS , etc The new local conveyance reimbursement format is available on Oriental Insurance intranet.

GROUP TRAVELING The owner of the personal owned vehicle shall be eligible for reimbursement while traveling in group. (b) Policy for reimbursement to employees provided with company owned car/company leased car/fuel reimbursement. This type of reimbursement will be subject to submission of actual bills. Employee entitled to company owned car or leased car facility or fuel reimbursement can claim local conveyance , IF They do not use the company owned car/leased carthen employee can claim taxi/auto fare. Employees traveling in a group with a colleague who is availing company owned leased car facility shall not be entitled to claim any local conveyance. 2. OUTSTATION TRAVEL (a) Policy for outstation business travels Employee traveling to outstation shall make their own arrangement for pick up and drop at their respective locations. Auto/taxi fares incurred on company work during tour are reimbursable only at base location. Mode of travel shall be as per eligibility as under :

GROUP

AIR

RAIL AC (1st class)

ROAD AC car

General Manager & Business class above

Head Departments Band D & C

of Economy class

AC (1st class), AC AC car, Luxury chair AC bus

Economy class

AC (2nd class) AC AC car, Luxury AC chair Bus AC car /

Band E, F ,G

Economy Class 3 Tier AC sleeper or Non Only in case of AC chair car

Luxury AC bus

exigency

Employees on reaching the travel destination away from their location , shall use rental cars only in instances where Taxi is not available (b) Expenses that are permitted on outstation travel Laundry charge are reimbursable, if an employee is out of station for more than 48 hours . Laundry charges maximum of Rs 100/- per day will be reimbursed .Business heads , head of departments and above will be reimbursed actual laundry charges. Preferably on tour , telephone calls should be made from branch officer phone calls from the hotel should be restricted to extent possible. Personal calls on outstation stay will need specific authorization by reporting superior , keeping in mind , family exigencies and domestic compulsions. Liquor expenses are not reimbursable. The employees may entertain company s guest for company s business will on outstation travel .However , the relevant bills stating purpose and guest list must accompany travel expenses voucher and shall need the approval as follows:

USER Employees at branches Territory Manager Zonal Manager Employees at head office & Hubs Head of the department & Business Heads General Manager

APPROVAL Territory Manager & above Regional Manager & Zonal Manager Business Head or General Manager Head of the department General Manager & Managing Department Managing Director

3.

HIRED CARS

The following table shows the type of cars available to the employees oh Oriental Insurance , group wise:-

GROUP General Manager & above

TYPE OF CAR (AC) Honda city , Corolla , Lancer , Optra

Head of Department & Business Heads

(AC) Ford Ikon , Maruti Esteem , (AC) Indigo , (AC) Indica

Brand D & C Brand E, F , G

(AC) Zen , Indigo , Esteem , Indica (Non AC) Indica

The employees are asked to avoid hotel stay.

Hotels will be arranged by Administration department only for Corporate Office Employees on receiving duly completed and approved requisition.

Hubs & Branches will have to book through their respective administrative staff. List of hotels are mentioned , all are advised to avail Standard rooms . In event of any non-availability in the mentioned hotels , an equivalent accommodation maybe arranged with the same tariff range.

HOW TO AVAIL THE POLICY There is a form for Travel policy and the following table shows the employees that should take approval by the following person :-

USER Employees at branches Territory Manager Zonal Manager Employees at Head office & Hubs Head of the Department & Business Head General Manager

APPROVAL Territory Manager & above Regional Manager & Zonal Manager Business Head or General Manager Head of the department General Manager or Managing Director

Managing Director

TRANSFER POLICY
OBJECTIVE To provide guidelines to employees about the rules governing the transfer of the employees. SCOPE The policy is applicable to confirmed employees of Oriental Insurance. TYPES OF TRANSFERS: A. Transfer executed by the company to meet business requirements of the company as per the terms of the employment. B. A transfer arising out of the internal recruitment process through the jobs advertised by the HR Department & the promotion within the company, C. A transfer requested by the employee on the grounds of his personal reasons by way of formal application & which is accepted by the company. RULES & GUIDELINES For A & B The Employees would be provided with the reimbursement incurred on travel for his family which includes spouse , two children & dependant parents from he base location to new location as per the travel policy. At the new location the employee and his family would be provided hotel accommodation as per the travel policy . The employee would be eligible to receive a one-time reimbursement of expenditure incurred on packing & transportation of his personal household items.

The employee would be eligible for financial assistance to obtain leased accommodation in the transferred location.

The House rent allowance would be paid as per the rate of HRA prescribed & applicable in Oriental Insurance to the transferred location.

For C Only confirmed employees are eligible to apply for a request transfer. The employee should make a formal application to his reporting manager detailing the reason of request. The reporting Manager should forward the application with his comments & recommendations to his functional head with a copy to HR. Subsequent to the transfer the rate of HRA of any other location salary/ benefit would be applicable as applicable to the location. In case the request transfer is accepted the employee would be required to bear the cost of moving & packing and all other associated expenses. INSURANCE OF COMPANY ASSETS INTRODUCTION As a rule all company properties must be insure as covered in the policy issued by the insurance company with timely payment of premiums , HR & Admin. Department is committed to ensure the insurance of all company properties on a regular and timely basis against risks like fire , flood , earthquakes .etc

OBJECTIVE To ensure insurance coverage of all assets , all concerned employees must timely comply with the actions required by respective departments as detailed. Any additions or deletions of assets at all our locations must be immediately intimated to the insurance company through Admin. with the description of the item and the value. Any damage , destruction or loss of properties due to any reason will be immediately informed to Admin. With complete details for proceeding with insurance claim. All departments should submit replacement value of properties procured by them every year. Admin. Department will review insurance procedures regularly so that all times company properties are insured. EDUCATIONAL SCHOLARSHIP SCHEME OBJECTIVE With a view to encourage employees to take up professional courses in life insurance and other specific disciplines , the company decided to offer educational scholarships to confirmed employees who have completed two continuous year of service from the date of joining The main objective of this policy is to facilitate employees to acquire higher education , Diploma. , Degree , post graduate degree/diploma which would also help Oriental Insurance enhance its talent pool as well as the future business requirements of the organization.

HOW TO AVAIL An employee who would like to undergo a particular course should discuss the same with his/her immediate Branch Manager / Functional head . This request will be reviewed by the Branch Manager / Functional head in relation to the employees current job responsibilities and Oriental Insurance requirements , and the same will be forwarded to the functional head . The functional head will mention his comments on the employees application and will forward it to the HR Department for further processing. IMPORTANT POINTS TO REMEMBER Only confirmed employees will be eligible for the education scholarship scheme. The organization will reimburse up to 50% of the course fees. Employees will be entitled only for one course in tenure of 3 years. Employees availing the education scholarship scheme are not a liberty to use Oriental Insurance facilities, equipment or material without prior permission. Any employee who leaves the company within 5 years from the date of availing the scholarship amount will be required to reimburse the entire amount to the company. The Management reserves the right to amend the policy

WHISTLE BLOWER POLICY

INTRODUCTION Our goal at Oriental Insurance company is to achieve the highest business , & personal ethical goals. Ethical Business Behavior is the responsibility of every employee and is reflected in our relationships with internal , external behavior . In line with this objective the policy enable each employee to bring to the notice of the company any unethical practice/breach of the company policies and interaction with internal or external customers. The company should maintain complete confidentiality with the anonymity of the information provided , if desired by the whistleblower. ROLE OF THE WHISTLEBLOWER The whistleblower is a reporting party , he provides initial information related to any incident in the reasonable belief that an improper / unethical practice has occurred. ROLE OF THE INVESTIGATING COMMITTEE Only the investigating committee / investigator (persons authorized , appointed , consulted ,or approached by the company / investigation committee ) would investigate activities. The Management and Audit Committee will deal with the protected disclosures. DECISION If an investigation leads the Management / investigation committee to conclude that an improper or unethical act has probably been committed , the Management committee shall take such disciplinary and corrective actions as a result of an investigation pursuant to this policy shall adhere to the applicable code of conduct and disciplinary procedures.

CHAPTER-IV

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research Methodology is defined as a highly intellectual human activity used in the investigation of nature and matter and deals specifically with the manner in which data is collected, analyzed and interpreted.

Types of Research Design

Exploratory Research An exploratory study is undertaken when not much is known about the situation at hand or no information is available on how similar problem or research issues have been solved in the past. Descriptive Research Statistical study to identify patterns or trends in a situation, but not the cause-and-effect

(causal) linkages among its different elements. Descriptive studies (such as a cross-sectional study) help in generating hypothesis on which further research may be based.

Types of Data Collection

Primary Data Primary Data is first hand information for a particular statistical enquiry and it is collected originally. The most popular and common tool is questionnaire/interview schedule to collect the primary data. Secondary Data It refers to the statistical material which is not originated by the investigator himself but obtained from someone else's records. This type of data is generally taken from newspapers, magazines, bulletins, reports, journals etc.

I am using the explanatory study and primary data.

Data Analysis
There are various things which help to analyse the data. It can be pie-charts, tables, bar-graph and theoretical data analysis.

CHAPTER-V

Data Analysis And Interpretation

DATA ANALYSIS AND INTERPRETATION

Q1. Are the new employees provided with any policy brochure? YES-75% NO-25%

NO 25%

YES NO

YES 75%

INTERPRETATION 75 % Employees are aware of the brochure that is provided to them by the organization while they commence their job. This is a simple way to make the employees learn and know the HR Policies of Oriental Insurance. And as the ratio suggest many of the employees are provided with the brochure except a few.

Q2. Does your organization formally recognize the field employees with the 10-15 years of service?

YES- 90%

NO- 10%

NO 10%

YES NO

YES 90%

INTERPRETATION 90% of the employees have replied in yes. Only 10% employee said that there is no such policy or program. Probably they are not aware of this. Oriental Insurance provide LTIP to the employees who render 2 year of service to Oriental Insurance. LTIP stand for Long term incentives plans. This plan explains that an employee working in Oriental Insurance for more than 2 years will be provided with 60% of their CTC.

Q3. Are you aware of any Grievance policy in the organization? YES -80% NO -20%

NO 20%

YES NO

YES 80%

INTERPRETATION 80% Employees are aware of the grievance policy of the organization.

20% are not aware about this important policy due to the lack of awareness regarding this policy. It can be possible that this 20% of the employees have not exercised this policy due to which they are not aware of it.

Q4. If yes, are you satisfied with it? YES 60% NO 40%

NO 40% YES NO YES 60%

INTERPRETATION

60% Employees are satisfied with the grievance policy.

40% are not satisfied with this policy. This shows that this policy has a neck to neck competition regarding the satisfaction measurement. This can make it difficult for the organization to conclude this policy.

Q5. Are you satisfied with the disciplinary policy system? YES-75% NO-25%

NO 25%

YES NO

YES 75%

INTERPRETATION

75% Employees are satisfied with the disciplinary policy.

25% are not at all satisfied with the disciplinary policy of the Oriental Insurance. This can be possible that the unsatisfied employees have not used this policy as often as the other satisfied employees have used.

Q6.Do you feel that your job is secured on the basis of the hr policies that the organization follows? YES-90% NO-10%

NO 10%

YES NO

YES 90%

INTERPRETATION

90% Employees feel secure while working in Oriental Insurance. Most of the employees believe that the HR policies formulated by the organization really help them to feel highly secured with their job.

10% employees believe that their job is not secured.

Q7. Are you allowed to free your voice on any opinion through any policy? YES-40% NO-60%

YES 40% YES NO NO 60%

INTERPRETATION

60% Employees are not aware of any such policy. 40 % are aware of such a policy.

Q8.Are the performance appraisal reports in the organization are based on objective assessment and adequate information? YES-100% NO-0%

NO 0%

YES NO

YES 100%

INTERPRETATION

100% employees agree to the fact that the performance appraisal reports in the organization are fully concluded on the objective assessment and the adequate information regarding their current performance and their behavioral conduct. To mention ,this policy of Oriental Insurance is followed since it was formed . It is

considered very important while framing the performance appraisal of the employees.

There is no employee in the organization who is not aware of the performance appraisal reports formation.

Q9.Do you want any other member to be covered under the mediclaim policy except the members who are already covered ? YES-40% NO-60%

YES 40% YES NO NO 60%

INTERPRETATION

40% Employees do not want any other member to get covered under the Med claim. The family members that are already covered under Med claim are enough for these 40% of employees.

60% Employees need another member except family to be covered under the Med claim. Most of them demanded that their friends should also be allowed to be covered under such beneficial policy.

Q10. Are you in favor of introducing Domestic relocation policy in the organization? YES-50% NO-50%

YES NO 50% YES 50% NO

INTERPRETATION

50% Employees are in favor of introducing Domestic relocation policy. 50% answered no , due to their lack of knowledge regarding the Domestic location policy. They were not clear about this policy and they did not knew the features as well as the advantages of the Domestic relocation policy.

Q11. Is it mandatory for you to wear formals during working hours? YES-75% NO-25%

NO 25%

YES NO

YES 75%

INTERPRETATION

75% Employees that answer Yes are observed to be at high profiles in the organization like, CHANNEL DEVELOPMENT MANAGER or SALES DEVELOPMENT MANAGER. It is mandatory for them to wear Formal wear while working.

This 25% lot mainly includes the profiles of RECRUITMENT OFFICERS which is quite a low profile. It is not mandatory for them to wear Formals.

Q12. Do you want that a policy on sexual harassment should be followed by the organization? YES-60% NO-40%

NO 40% YES NO YES 60%

INTERPRETATION

60% Employees believed that a policy for sexual harassment should be introduced in the organization. It was strange to observe that none of the female staff favored the policy rather the male employees said yes for this policy.

40% Employees did not favored the sexual harassment policy.

Q13. Do you have a formal or informal orientation program for the new employees? YES-95% NO-5%

NO 5%

YES NO

YES 95%

INTERPRETATION

95% Employees took the orientation program seriously. Oriental Insurance provides formal orientation program to the new employees.

5% Employees were not aware of any type of orientation program , maybe they did not take it seriously.

Q14. Do you have a written safety program and policy for your company? YES-85% NO-15%

NO 15% YES NO YES 85%

INTERPRETATION

85% Employees highly recommended the written safety program and policy organized by Oriental Insurance. They believed in this policy thoroughly and favored this policy.

15% Employees were not at all aware about such policy , maybe they never used this policy. This can be the reason which made them unaware about this policy.

Q15. . Does your company offer a pension or retirement savings plan or profit sharing plan for field employees? YES-35% NO-65%

YES 35% YES NO NO 65%

INTERPRETATION

35% of the Employees replied in yes. They provide profit sharing plan for field employs. 65% of the employees replied that the company does not offer a pension or retirement savings plan. Probably they are not aware of such benefit provided by the company

CHAPTER VI FINDINGS

FINDINGS
Oriental Insurance insurance is not an old company , then too they have successfully framed their HR POLICIES which generally meet the overall requirements and in most cases follow the best practices. They have a friendly working environment. With only a few exceptions, arrangements for the Human Resource Policies, Practices and Procedures are adequately adopted to meet the companys and employees requirements. Oriental Insurance has a high disciplinary system , and the framed HR POLICIES give a sense of security to the current employees. Oriental Insurance employees are aware of the fact that their performance appraisal is based on their objective assessment and adequate information. With all the praises , still there is a scope for an improvement , like..: some of the policies are not clear to the employees despite the fact that they were given formal orientation program and the brochures as well. Some of the policies should be modified like Med claim policy , on the request of the employees and some of the policies should be formed like sexual harassment policy, and policies which would help the employees to raise their voice A large number of employees are not aware of the companys manual which outlines terms and conditions of employment and its policies. The policies are reviewed and modified by expert HR professionals as per requirements and according to the surveys conducted by them.

CHAPTER VII RECOMMENDATIONS

RECOMMENDATIONS
Some of the policies like Sexual Harassment policy etc should be framed for the welfare of the employees. I believe that in order to form a professional environment , every employee should be asked to wear proper Formal wear. This would motivate the employees more faster. Need to develop consultation/awareness program to assist the employees for their better understanding of the policies. I would recommend that while dealing with the complaints anonymity need to be maintained. Except LTIP , more incentives should be offered to the employees who provide services to the organization for more than two years continuously .

ANNEXURES

ANNEXURE HOW EFFECTIVE ARE THE HR POLICIES OF THE ORGANIZATION

QUESTIONNAIRE

NAME DESIGNATION

: :

DEPARTMENT BRANCH

: :

Q1.

Are the new employees provided with any policy brochure? Yes _________ No _________

Q2.

Does your organization formally recognize the field employees with the 10-15 years of service? Yes _________ No _________

Q3.

Are you aware of any Grievance policy in the organization? Yes _________ No _________

Q4.

If yes , are you satisfied with it? Yes _________ No _________

Q5.

Are you satisfied with the disciplinary policy system? Yes _________ No _________

Q6.

Do you feel that your job is secured on the basis of the hr policies that the organization follows? Yes _________ No _________

Q7.

Are you allowed to free your voice on any opinion through any policy? Yes _________ No _________

Q8.

Are the performance appraisal reports in the organization are based on objective assessment and adequate information? Yes _________ No _________

Q9. Are you satisfied with the mediclaim policy except the members who are already covered ? Yes _________ No _________

Q10.

Are you in favor of introducing Domestic relocation policy in the organization? Yes _________ No _________

Q11.

Is it mandatory for you to wear formals during working hours? Yes _________ No _________

Q12.

Do you want that a policy on sexual harassment should be followed by the organization? Yes _________ No _________

Q13.

Do you have a formal or informal orientation program for the new employees? Yes _________ No _________

Q14.

Do you have a written safety program and policy for your company? Yes _________ No _________

Q15.

Does your company offer a pension or retirement savings plan or profit sharing plan for field employees? Yes _________ No _________

TOTAL COUNT #YES # NO ____________ ____________

Five Year Digest (Amount in lacs) 2004-05 2005-06 2006-07 Gross Direct Premium Net Premium Net Claims 309055 221802 190838 360977 250046 206475 402078 287974 235885 2007-08 390020 287867 260222 2008-09 407790 323510 305719

(86.0%) (82.6%) (81.9%) (90.40%) (94.50 %) 72988 85076 75423 82360 (28.6%) 11893 (4.1%) 17118 44235 930 10000 192606 145539 2565 net 91444 (28.27%) -39651 (12.26 %) 17197 -8842 -5266 10000 187339 162369 2565 premium

Operating Expenses

(32.9%) (34.0%) (26.2%) 21338 (9.6%) 14918 47170 33052 10000 131836 111937 2565 percentage 14438 (5.8%) 12169 33419 28392 10000 154526 126399 2565 to 29833 (10.3%) 15732 62964 49727 10000 192553 145295 2565

Underwriting Profit / Loss (-) ** Interest, Dividend and Rent ** Profit Before Tax Profit After Tax Paid-up Capital General Reserve Reserve for Unexpired Risk Capital Reserve & Other Reserve % means

** W.e.f 1.4.2003, Underwriting Profit/Loss is after apportionment of a share of profit on Sale of Investments, Int./Div./Rent, NPA Provision, Diminution in value of Shares, Amortization and Investment Written Off.

BIBLIOGRAPHY

BIBLIOGRAPHY
Books
1. Business today, 2. India Today 3. Marketing Mastermind 4. Gupta S. P. and Gupta, M. P.

Websites
http://www.orientalinsurance.org.in http://www.sebi.com http://www.nse..com