A PROJECT REPORT on STUDY OF THE PROCESS OF UNDERWRITING of FUTURE GENERALI INDIA LIFE INSURANCE COMPANY PVT LTD.

Submitted To PUNE UNIVERSITY BY TAUSIF AHMED SHAIKH In Partial Fulfillment of Master of Business Administration (MBA) Guided by Prof Kavita Shendker Unique Institute of Management S.No. 36/3C, Gokul Nagar , Katraj Kondhwa Road, Katraj, Pune 411046 2012-2013

CERTIFICATE

This is to be certified that project report titled Study of the process of Underwriting is a benefice work carried out by Mr Tausif A Shaikh Student of M.B.A II of our institute for fulfillment of M.B.A degree of University of Pune. He has worked under our guidance and supervision.

Signature of the Guide:Date:Place:-

DECLARATION

I Tausif Ahmed Shaikh student of Unique Institute of Management MBA (2011-2013) solemnly declares that the project work on Study of the process of Underwriting at Future Generali India Life Insurance Company Private Limited was carried out by the partial fulfillment of the Master of Business Administration Degree, to the University of Pune. It is a bonafied piece of research work carried out by me and no part of this have been submitted earlier, either to this University or any other institution for fulfillment of the requirement of any Degree or Diploma. This project was undertaken as a part of the academic curriculum according to the University Rules and by no commercial interest or motives.

Date:

Place: Pune

Signature of Candidate

ACKNOWLEDGEMENT

This project is a product of encouragement and motivation from various sources. I am sincerely thankful to everyone who has contributed to the successful completion of this project. I would like to thank all who have helped me in the implementation of this project at all stages. I offer my profound gratitude to the management for giving me an immense opportunity of exposure to use my theoretical knowledge with my practical experience, in a professional environment. I would like to express my honest and sincere gratitude to my mentor Mr Rajiv Sudan (Regional Manager) and my reporting officer Mr Shakeel Ahmed (Branch Manager) for the confidence shown in me and guiding & motivating me throughout the project. With their helpful attitude, they added to my thoughts, provided some timely suggestions and cleared my doubts to perfection. This project could not have been completed without the guidance of Mr Irfan Shaikh (learning & development Manager). I express my sincere thanks and gratitude to the above stated persons and also to my colleagues in operation department who have helped me directly and also to those who have indirectly helped me. I am thankful to Prof Kavita Shendkar (internal guide) for her support in completion of project work and I am also thankful to Dr P.B Kumbhar (Director, UIM) for his support and opportunity given to express my knowledge. Under their valuable guidance & suggestion I am able to bring my project to a successful completion.

Sincerely

EXECUTIVE SUMMARY

INDEX

Sr No.

Chapter Name

Page No

1.

Introduction to the study

2.

Company profile

3.

Objective of the study

4.

Review of literature

5.

Research Methodology

6.

Data Analysis & Interpretation

7.

Observation and Finding

8.

Conclusion and Suggestion

9.

Bibliography

10.

Annexure

CHAPTER NO 1 INTRODUCTION TO THE STUDY

INTRODUCTION TO THE STUDY Meaning of Life Insurance.

Life insurance is a contract, whereby, for an agreed payment (premium), the insuring company agrees to pay the insured, or his beneficiaries, a fixed sum or an income upon the death of the insured. In addition, life insurance can be used as a means of investment or savings. There are four people involved in the contract: the insurer - who draws out the contract and pledges to offer a service to the beneficiary the policy holder - a person, natural or legal who signs the contract, pays the premium and selects the nominated beneficiaries the insured - the persons whose death is covered There are four people involved in the contract: The insurer - who draws out the contract and pledges to offer a service to the beneficiary The policy holder - a person, natural or legal who signs the contract, pays the premium and selects the nominated beneficiaries The insured - the persons whose death is covered by the policy The nominated beneficiaries or next of kin - persons, natural or legal who will receive the fixed sum or income as agreed by the contract. Taking out a life insurance policy is a long-term investment and can be a good way to: build up your savings get additional income for your retirement get returns on your capital pass on your capital.

Meaning of life Insurance Underwriting

Life insurance underwriting is a crucial process for determining the risk profile and estimating the premium amount of a policyholder. The underwriting guidelines for insurance companies may differ from one another. When you purchase any type of insurance quote, be life, health, or motor insurance, you might have come across the underwriting process. Underwriting can be considered as a process to scrutinize an applicant, whether he/she is eligible for issuing a life insurance policy underwriting ( underwriters ) consider a series of factors to determine the risk of the applicant for death ( especially premature death). Based on the risks involved, the pricing of the insurance quote or premium amount is decided.

Life insurance underwriting Process

The guidelines and regulations for underwriting are different for different insurance companies. As already mentioned the life insurance underwriting process takes a series of factors into consideration to decide the premium amount for an applicant for a particular coverage policy. After an individual applies for a Life insurance quote, the insurance company will circulate a questionnaire form that the applicant has to fill up with the answers. Underwriting is confidential, which is maintained under strict regulations. Depending upon the underwriting standards of the insurance company, the question may vary. Nevertheless some of the common factors for life insurance underwriting are age, sex, height, and weight, medical history, marital status, profession or occupation, annual income and personal habits like smoking, alcohol consumption and hobbies. After the applicant fills up the answers to these queries, the form is sent back to the insurance company. Once the form is received, the underwriting of the Life insurance company review the risk profile of the applicant and accordingly, the final premium amount is charged to the policyholder. In general there are four categories of risks, which are classified accordingly to the standard underwriting guidelines. The four risk classification includes proffered (charge with low premium), standard (standard premium amount), rated (relatively high premium amount) and declined (uninsurable). This way, life insurance underwriting process is a crucial step to calculate the premium amount for the policyholders. For better understanding about life insurance underwriting lets take an example of 2 individuals applying for the Life insurance quote. Lets consider the first is below 30 years without any underlying health condition (low death risk), while the second applicant is above 45 years with hypertension condition (high death risk). With underwriting process, the death risks for the two applicants are examined, after which the insurance company will charge a low premium for the first applicant (preferred), while charging a higher premium rate for the second policyholder (rated) It is to be borne in mind that some insurance companies set stringent guidelines for the underwriting than others. For example, you may not be qualified for low premium Life insurance coverage in a particular company. This does not mean that you will not qualify for other companys Life insurance quote for nearly the same premium. The best way is to do research and gather information regarding the insurance policies, which come under your budget. Doing so, you can get a good deal after comparing the premium rates, and regulation of each company.

Life insurance Underwriting: jobs

For Life insurance underwriting jobs, most companies prefer finance background candidates with good communication and computer skills. If you are interested in insurance as a career and meet these requirement and then, a career as insurance underwriter may be lucrative option. The pay scale is high even though the professional growth rate is comparatively slow than other jobs. On an average, an underwriter earns more than $50,000 in America, while an experienced profession in a reputed company may earn as high as $80,000 annually.

Definition of Insurance Underwriter

A financial professional that evaluates the risks of insuring a particular person or asset and uses that information to set premium pricing for insurance policies. Insurance underwriters are employed by insurance companies to help price Life insurance, health insurance, property/casualty insurance and homeowners insurance, among others.

By Ningthoujam Sandhyarani
Life insurance underwriting is the assessment of the information that has been provided through an application for life insurance and the recognition of any need to obtain further information. This is in order to make a fair and accurate underwriting decision on the applicant so as to determine the exact terms the insurer is willing to offer them. In short is risk evaluation.

CHAPTER NO 2 COMPANY PROFILE

COMPANY PROFILE FUTURE GENERALI INDIA LIFE INSURANCE CO BLOCK A HERITAGE HOUSE, 6 RAMABAI AMBEDKAR ROAD NEAR PUNE RAILWAY STATION, PUNE- 411001 IRDA REGISTRATION NO 133
Future Generali is a joint venture between the India-based Future Group and the Italy-based Generali Group.

Future Generali is present in India in both the life and Non-life businesses as Future Generali India Life Insurance Co. Ltd and Future Generali India Insurance Co. Ltd.

FUTURE GROUP
Future Group, led by its founder and Group CEO Mr Kishore Biyani, is one of Indias leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and town and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30000 people and is listed on the Indian stock exchanges. The company follow a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, 6

the group operates Pantaloons, a fashion retail chain and central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. The groups specialty retail formats include sportswear retailer, planet sports, electronics retailer, eZone, home improvement chain, Home town and retail chain, Aadhaar, among others. It also operates popular shopping portal, www.futurebazaar.com. Future Capital Holdings, the groups financial arm, provides investment advisory to assets worth over$ 1 billion that are being invested in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations. Other group companies include, Future Generali, the groups insurance venture in partnership with Italys Generali Group, Future Brands, a brand development and IPR Company, Future logistics, providing logistics and distribution solution to group companies and business partners and Future Media, a retail media initiative The groups presence in leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, sports bar and bowling o. and family entertainment centre, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. Future Groups joint venture partners include US-based stationery products retailers, staples and Middle East-based Axiom Communications. Future Group believes in developing strong insights on Indian consumers and building businesses based on the Indian ideas, as espoused in the groups core value of Indianness. The groups corporate credo is Rewrite rules, Retain values.

THE GENERALI GROUP

The Generali Group is a leading player in the global insurance and financial markets. Established in Trieste in 1831, today the Group is one of Europes largest insurance providers and the European biggest Life insurer. It is also one of the worlds top asset managers with assets totalling more than 400 billion. With an employed sales force of more than 100,000 people serving 70 million clients in 68 countries, the Group occupies a leadership position in Western Europe and an increasingly important place in Eastern Europe and Asia.

IDENTITY CARD
Since its establishment, the Generali group has always held a reputation for its capital and financial strength. Its solidity derives from prudent investment management and a focus on achieving a correct match between risk and medium/ long-term profitability. Generali Group is one of the leading insurance groups in Europe, with a 2009 total premium income of more than 70 billion It is present in 68 countries It has 85,322 employees(15,956 in Italy) It has over 400 billion of assets under management High rating assigned by the international rating agencies:

A.M. BEST: A+ STABLE Standard & Poors: AA- STABLE Fitch Ibca: AA- NEGATIVE Moodys: Aa3 STABLE

VISION STATEMENT
Pledged to provide financial security to all people & enterprises through total insurance solution 8

VALUES
Respect: For all stakeholders-employees, customers, for all rules and regulations both internal and external

Indianess: We understand India in all its diversity and different facets and will use for our local understanding to respond to our specific markets, design our products and craft our processes.

Nimbleness : A combination of speed and quality, and ability to overcome all obstacles which come in the way of the achievement of our vision

Can Do : An attitude which demonstrate our passion, entrepreneurship, and positive thinking

POSITIONING

Knowledge organisation with Leadership Approach One Stop Total Insurance Solution & Service Provider Customer Centric Model embracing Passion, Convenience and Service Excellence

OBJECTIVES
To provide superior customer service through our knowledge-based business partners and employees supported by the innovative products and services.

CHAPTER NO 3 OBJECTIVES OF THE PROJECT WORK

10

OBJECTIVES OF THE PROJECT WORK

Objectives of the study

To know the process of underwriting of Life Insurance Policy in detail.

To know about various categories of underwriting

To know the risk and factors affecting the risk.

To understand the calculation of the premium for the policy.

To know the term of admission / issuance of the policy.

11

CHAPTER NO 4 REVIEW OF LITERATURE

12

REVIEW OF LITERATURE

Meaning of Life Insurance.

Life insurance is a contract, whereby, for an agreed payment (premium), the insuring company agrees to pay the insured, or his beneficiaries, a fixed sum or an income upon the death of the insured. In addition, life insurance can be used as a means of investment or savings. There are four people involved in the contract: the insurer - who draws out the contract and pledges to offer a service to the beneficiary the policy holder - a person, natural or legal who signs the contract, pays the premium and selects the nominated beneficiaries the insured - the persons whose death is covered.

Meaning of Underwriting
The process of verifying the level of risk in each new entrant [ life to be insured ] and determining the terms of admission [policy issuance] is called Selection or Underwriting. Underwriting is the Process by which applicants for insurance are selected and are classified according to the level of risk that each one represents. 13

Risk is the possibility of adverse consequences that might result in a claim [Death, sickness or disability].

Underwriting involves evaluation of risk exposure and determining the premium that needs to be charged to insure that risk.

Life insurance underwriting is a crucial process for determining the risk profile and estimating the premium amount of a policyholder. The underwriting guidelines for insurance companies may differ from one another. When you purchase any type of insurance quote, be life, health, or motor insurance, you might have come across the underwriting process. Underwriting can be considered as a process to scrutinize an applicant, whether he/she is eligible for issuing a life insurance policy underwriting ( underwriters ) consider a series of factors to determine the risk of the applicant for death ( especially premature death). Based on the risks involved, the pricing of the insurance quote or premium amount is decided

Importance of Underwriting
A decision to charge premium higher than necessary would not be fair to the proposer. Also, the cost of additional risk [if any], not recovered from the proposer would have to be borne by the rest of the policyholders. That is not fair to them. Thus, if the risk is wrongly assessed, the premium charged would not be appropriate.

Hence underwriting helps to Ensure that appropriate premium is charged for the particular risk involved. Maintain equity between policy holders Protect the company from wrong selection [antiselection] Remain competitive Offer cover to as wide a group of lives as Possible 14

Various Types of Underwriting

Underwriting

Financial Underwriting

Occupational Underwriting

Major Student Lives Underwriting

Minor Life Underwriting

Female Life Underwriting

Medical Underwriting

Non-Medical Underwriting

15

VARIOUS UNDERWRITING DECISIONS

On the basis of the assessment of the risk, the underwriter will decide on the acceptance of the proposal.

THE DECISION MAY BE ONE OF THE FOLLOWING

Standard
Accept as proposed at OR [ Ordinary Rates ]

Substandard / Counter offer:

Accept with Extra [ revised] premium Accept with a lien of [to be specified ] Accept with modified terms Accept with [ specific ] clause

Postpone for specific period Decline

VARIOUS UNDERWRITING TOOLS

The underwriter makes decision on the basis of the information sourced through various tools

16

UNDERWRITING TOOLS
Application Form Medical Reports Agents Confidential Report Moral hazard Report Age proof Documents Photo Identity proof Residential proof Income proof Additional questionnaires[ if required]

Once the application form is submitted with necessary documents, proofs, reports and questionnaires; the as Non-Medical case Medical case

Let us now understand each tool in detail APPLICATION FORM

What does it tell us? S Primary source of underwriting information contains 2 basic parts: 1] Non-medical factors / personal factors 2] Other insurance existing or applied for Medical information

Important Of Application Form Is a part of the legal contract between the company and policyholder 17

MEDICAL REPORTS

Non-Medical Underwriting
It is underwriting a life without a medical examination on the basis of the Application Form and the Agents report. Non-medical cases are being processed subject to limit on the: Sum Assured Age at entry However if needed, medical reports can be called for .e.g. if the to be insured is Diabetic we can call for relevant medical tests.

Medical Underwriting
It is underwriting a life with a medical examination conducted by TPAs at the approved diagnostic centre. The type of medical test that the Life to be insured needs to undergo can be identified from the grid based on the Sum Assured and age of LA. However, if needed, underwriter may call for additional medical test depending on the information provided in the application form and the medical test already conducted.

MEDICAL GRID
For medical underwriting the following medical grid is use

18

MSA/AGE In yrs.

Up 13

to 14-17

18-35

36-45

46-50

51-55

>55yrs

UPTO 1 Lac

1 Lac-2 Lacs

2 Lacs-5 Lacs

5 Lacs-10 Lacs

10 lacs 15 lacs

15 lacs 20 lacs

20 lacs 30 lacs

30 lacs 50 lacs

50 lacs-10 lacs

10 lacs and above

The above medical grid is to be used for all of Future Generali except the Term Plan.

19

[MSA] Medical Sum Assured = [1* Basic sum assured] + [1.5* CI Rider sum assured] + [1* Term rider sum assured] + Previous [Basic Sum assured + 1.5* CI + ta] and / or

A B C D E F G N

MRF MRF, FBS, RUA, ECG-R, LIPID PROFILE MRF, HIV, FBS, FGI-15, RUA MRF, HIV, FBS, FGI-15, RUA, ECG-R MRF, HIV, FBS, FGI-15, RUA, TMT MRF, HIV, FBS, FGI-15, RUA, TMT+(CXR) JME Non-Medical

ABBREVIATIONS MRF FBS - Medical Review Form - Fasting Blood Sugar

FGI-15 - Combination of various biochemical blood tests RUA ECG HIV TMT JME CXR - Routine Urine analysis - Electro cardiogram - Human Immunodeficiency Virus - Tread Mill Test - Juvenile medical Examination - Chest X-Ray

20

MEDICAL GRID FOR FUTURE CARE PLUS [TERM PLAN]

Medical Requirement for Future Care Plus AGE MSA 10 lacs-15 lacs 15 lacs -25 lacs 50 lacs 1 Cr > = 1 Cr 18 35 A A 36 45 A C D E E 46 - 50 B D E E F 51 - 55 B D E E F 55 60 D E E E F

25 lacs 50 lacs C D D

Type of Test
A B C D E F

Medical Tests
MRF, FBS MRF, FBS, RUA, ECG-R, LIPID PROFILE MRF, FBS, RUA, HIV, FGI-15 MRF, FBS, RUA, HIV, FGI-15, ECG-R MRF, FBS, RUA, HIV, FGI-15, TMT MRF, FBS, RUA, HIV, FGI-15, TMT +(CXR)

21

MEDICAL DISCRIPTION
Sr. No. Name of Medical test Physical examination of the client which includes Height, 1 MRF Weight Blood pressure reading etc.. Check the glucose level in blood after fasting period of 12 2 FBS hours Description

RUA

A microscopic examination of urine Electro cardio gram cardiac evaluation of the heart

ECG(R)

(resting) Cardiac evaluation of heart under stress condition

TMT Radiological image of the lung

Chest X- Ray A combination of different test ( listed as below) which require blood sample Lipids Liver Functions Test Detects any Liver related abnormality Detects Fats concentration

FGI-15

Proteins

Detects

the

normal

or

abnormal

concentration of proteins in the blood Rental Function test HbA1c Give the idea about the blood sugar control in last 3 months CBS Complete Blood Count Detects any kidney related abnormality

22

AGENTS CONFIDENTIAL REPORT

The agents report is a source of information for the underwriter in the office. As advisor is the primary underwriter, it is his / her major responsibility to inform the insurer about the factors that affect the risk of the life to insured to avoid adverse selection This is an obligation that the advisor owes to the insurer as well as life to be insured. The agent has to make sure of this by submitting an unambiguous report and also by ensuring that the proposal papers do not conceal any information. Agent confidential report needs to be filled by the advisor who is sourcing the business. Please note if life to be insured is related to the advisor or is the advisor himself, Agent Confidential Report to be filled by the immediate manager.

MORAL HAZARD REPORT

Signing limits of the moral hazard report For all other cases, MHR is to be provided as per the following Authority Matrix Signing Authority Sales Manager Branch Manager Area Manager / City Manger Regional Manager Zonal Business Head Limits of Sum Assured Sum Assured from 10 15 lakhs Sum Assured above 15to 50 lakhs Sum Assured above 15to 50 lakhs Sum Assured above 50 lakhs to 1 Crore Sum Assured above 1 Crore

For cases sourced from Blacklisted area, need MHR from ZBH for agency cases For Alternate/ Alliances Channel we issue the case & send it for Address Verification check. Meanwhile the Dispatch of policy bond will be kept on hold. For all case above 30 lakhs MHR will be called from Relationship Manager for that Alliance partner. 23

All other norms pertaining to MHR will remain the same

For Housewife / Major Student cases need the MHR to be given by AM for all the cases For employee cases MHR [wherever required] needs to be provided by his / he superior

AGE PROOFS
As age increases, the probability of death increases. These probabilities are taken into consideration while deciding the premium rate. Certain risks increase with age. Certain other risks decrease with age. For example, being little overweight is a positive or favourable factor among young children, while it may not be so among older persons. Younger persons who are underweight need closer scrutiny than elders who are underweight. Hence, knowing the exact age of the life to be insured is very important.

Therefore, it is very important to have a valid document that reveals the date of birth of life to be insured. Hence, documents having DOB or age are classified into two categories:

STANDARD NON STANDARD

Nonstandard age proofs are those where DOB / age is not verified while issuing the same. Hence, it is an additional risk to the company when exact DOB is not known. Therefore, in such cases extra premium is charged to the customer for the additional risk the company is undertaking.

24

NON STANDARD AGE PROOF RESTRICTION [TRADITIONAL]

Restriction under non proposal [traditional plans only] received with Non Standard Age proof Restrictions Maximum age at entry Maximum age at maturity Traditional Plans 55 years 65 years Up to age 50 Rs 2 per thousand of sum NSAP charges assured 50-55 Rs 3 per thousand of sum assured Maximum Term 25 years Up to age 45 Rs 10 lakh Maximum Sum Assured Product not offered NSAP not allowed Age 46 to 55 Rs 5 lakh Term insurance, whole life insurance Minors Only ADB, ATPD and WOP on disability Riders will be allowed. CI Term & LG riders will not be allowed

NON STANDARD AGE PROOF RESTRICTIONS [ULIP]

A loading would be levied as non-standard age extra as per the following Grid

Age Band 18-50 years 51-55 years

Charges per thousand of SA Rs.2 Rs.3

RIDERS : Only Accidental Death Rider [ ADB], Accidental Total and Permanent disability Rider[ATPD] and waiver of premium [ WOP] on disability Rider will be allowed. Critical Illness [CI], Term & Life Guardian Rider [ LG] will not be allowed. 25

RESTRICTIONS REGULAR PREMIUMS

For Non Standard Age Proof

Age Band ( years ) Minimum multiplier Higher 18-44 policy of term (0.5times or 10)* 18-40 15 Age Band (years) Maximum Multiplier

annualized 45-55 Higher of ( 0.25 times policy term or 7)* 41-45 12

annualized premium 46-55 10

Multiples will not go above the maximum multiplier or the product specifications, whichever is lower

RESTRICTIONS SINGLE PREMIUMS

Minimum multiplier 1.25* single premium Maximum Multiplier 1.25* single premium

QUICK CHECKS ON AGE PROOFS

Age Proof

Description

Checks on the proof

PAN card

A pan card is used for Income Name of LA with the name Tax filing which has the name written on the PF & DOB mentioned DOB mentioned is matching with the DOB mentioned on

the application form Birth certificate A birth certificate is document Check the registration num which has the record of birth Check for registration date Check for seal and stamp and sign of the issuing authority Voter ID Voters ID enables the The age calculated as per the

individual to use his voting voter id should match with the rights which has the name & age mentioned in the PF the age mentioned Name of LA matches with the name written on the PF Ration card A ration card is used to Check for date of issue. The acquire rationed goods which calculated age as per ration mentions the name and age of card should match with the the individual Pension order for self age mentioned on the PF

Pension order is the document Check for name & DOB which enales a retired written on the pension order

individual to get pensions Any age proof Should not be and half half

computerized manually written Gram Panchayat certificate Gram Panchayat is

a It should be an extract from

document which is issued in Gram panchayat Register with villages Seal, Serial no, otherwise will be considered as NSAP School certificate A school certificate is given to Any correction needs to be the individual on completion countersigned by the issuing of the study tenure in school authority with the seal which has the individuals name Please note if age proof is vernacular then translation for the same needs to be provided with BM/SM /AM/City Head signature and employee code 27

Documents
Documents as per AML guidelines are required to be collected based on amount of Annualized Premium AML is applicable for all Life Insurance policies taken including term plans [excluding health & group insurance] by Individual for AML adherence In case the premium or the receipted amount exceeds Rs 1 lakh, Income proof needs to be obtained on account of AML. For Example A. Annualized Premium is Rs.99,999 and receipted amount is Rs. 1 lac B. Annualized Premium is Rs.1 lac and receipted amount is Rs.99,999 Restriction on Cash Transaction and requirement of PAN: To comply with AML regulation, if a case is logged for a premium of Rs.50000/- and receipting in cash has been done of Rs.49999/- then requirement will be raised in this case for PAN

AML Grid

Up to Rs 10000

Rs 10001 to 99999

Rs 100000 and above

1 Recent Photograph

2 Photo Id Poof

3 Address Proof 1 Recent Photograph 4 Proof of Source of Income 1. Photo Id Proof 2 Photo Id Proof 5 PAN card 3 Address Proof [If annualized premium is greater than 1 lakh on a per policy basis] Note: If PAN copy is

not provided, LA/ Proposer needs to submit an acknowledgement form

49A along with declaration stating that the PAN card copy will be submitted post receipt of the same.

QUICK CHECKS ON ADDRESS PROOFS

Address Proof Bank pass book Description Checks on the address proof

Bank Pass book is issued by Latest transaction [ within six the bank which gives the months required] individual

Gazetted officer certificate

Check

for date of issue [

within six months ] DL and Passport if expired Driving license is used by an cannot be consider as ID or individual to ride/drive a address proof vehicle

Proofs of source of Income

The income details and the proofs provided by the proposer helps the insurer in financial underwriting. 29

Meaning Financial Underwriting

Financial underwriting determines whether the proposed sum assured is reasonable considering the potential financial loss on the happening of the insured event

Importance Financial Underwriting

Good Financial underwriting will prevent:

Fraudulent claims Adverse claims experience due to anti-selection Early lapse and surrender due to insured not being able to pay the premium.

Financial underwriting helps in eliminating the moral hazard to a greater extent

Financial underwriting guidelines

Every proposal for insurance should be financially underwritten to ensure the amount of cover is reasonable in relation to the financial circumstances of the insured and meets a real insurance need. Maximum cover available for Major Lives [ males & Females] with verifiable source of income & occupation

Allowable cover Age

18-39 40-50 51-60 61 and above

Factor
20 X average annual income 15 X average annual income 12 X average annual income 05 X average annual income

For Financial underwriting policies lapsed for more than 2 years from last unpaid premium, will not be counted. All riders as per underwriting norms can be given to this category. 30

Financial underwriting guideline

Total Insurance Cover

Income proof

Proposal is underwritten on the basis of income stated in proposal form

Detailed report by sales representative (BM/ADM) For FSA beyond 10 lakhs [This report needs to be lakhs given by the employee i.e. BM / ADM / SM who is sourcing the

Less than Rs 25 lakhs [ All plans except Term Plan] Up to Rs 15 lakhs for Term products

policy. It is similar to the ACR which has questions like have you seen the life assured personally? , is the health conditions of the life assured good? etc. that need to be provided by the employee] If the SA<25L but if the annualized premium exceeds 1L income proof will be

SALARIED
>Rs 25 lakhs [ All plans except Term Plan] > Rs 15 lakhs for Term products - FQ to be sudmitted

Form No 16 issued by employer or Income tax returns for last 3 years or Salary slips for last 3 months or Bank statement showing salary

credited for last 6months or Salary Certificate issued by the employer [duly signed / stamped with issuing authority seal] in case

government public sector / reputed commercial organizations [limited

Companies] and Branch Managers profile letter [ providing details of the client s profile] detailing assets & liabilities with the credentials of the LA in the social market

32

BUSINESS

Form No.16 A or Income tax returns for last 3 years or Audited Profit and Loss Account and Balance Sheet of the firm for the last 3 financial years; or

>Rs 25 lakhs [ All plans except Term Plan] > Rs 15 lakhs for Term products - FQ to be submitted

Chartered

Accountants

certificate

with PAN, GIR No; stating the Annual Income from all sources forthe last financial years [duly attested by CA with his membership number]. CA to mention the list of documents verified and source from where the Documents are verified. Branch Managers profile letter

[providing details of the client s profile] detailing assets & liabilities with the credentials of the LA in the social market

Occupational Underwriting
Occupation is a critical part for underwriting as it helps in assessing the exact nature of duties [% admin & % manual] & helps in understanding the profile of the customer. Basis the occupation the underwriter to take a call as to whether a case can be considered standard or needs to be rated up / loaded / extra premium charged or if the need be give a counter offer.

33

Incomplete / incorrect disclosure of occupation will have a significant bearing on claims & may even lead to a claim repudiation hence it is important to disclose the correct occupation with the exact nature of duties.

Occupation List
All products will be allowed up to 5 lacs with loading 2 / mille for certain occupational categories ATPD, CI ,WOP & Term Rider will be excluded as per guidelines Fishing & Mining will be excluded as per the given occupational list

Major Students Lives Underwriting

Guidelines:
Points to be remembered while filling proposal form [PF] of Major student:

PF must be signed by Major student & Proposer [if relevant] Proof of Annual income of parent / guardian [if required] Previous insurance details of life assured, Parents & other sibling must be filled Family history & Personal history of life assured should be filled in the respective personal medical & family history columns of proposal form Latest Photo ID of Proposer [premium payer]. In case photo ID is not available annexure as per AML guidelines, must be enclosed.

Please note in case of students more than 23 years of age ,then proof of study needs to be provided [e.g. fee receipt, examination admit card]

Latest photo of Proposer [Premium Payer] duly signed by him must be enclosed in the Declaration column of PF. Residence proof of Proposer must be enclosed Annual Income of Parents shall be stated on the PF; 34

FQ must accompany all such cases Income proof of the parent who is paying the premium would be necessary if the total amount of insurance applied or existing on students s life and on the life of any other person financed through the same source, exceeds 25 lakhs

Maximum Cover Available MAJOR STUDENTS

Max Cover without linking to parents insurance 5 lakhs

Max Cover after linking to parents / other siblings insurance 50 lakhs (basic cover only) 50 lakhs allowed only if educational loan is taken [including FGI & non FGI policies]

Riders
Allowed Critical Illness Rider & Accident Rider Not allowed Term Rider

Minor Lives Underwriting

Guidelines In case of minors

Annual Income of Parents shall be stated on the Proposal Form; FQ where required must accompany all such cases Income proof of the proposer parent would be necessary if the total amount of insurance applied or existing on proposer and child s life and on the life of any other person financed through the same source, exceeds 25 lakhs

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In case of minor life assured, total insurance cover on the life of parents will be clubbed together to determine the life cover to be given to the child. For financial underwriting purpose, only proposer's insurance cover (existing and current) & cover proposed by him on the family members will be considered

Enclosures MINOR
In case of a minor child who is an NRI, a copy of the passport, duly attested by the parent is mandatory, irrespective of them Sum-Assured. Medicals of minor life assured ( if required) A std. age-proof is a must. School going proof where age of the child is above 6 years. Previous insurance details of Minor Life assured, Proposer & other siblings Minor life addendum must be filled by Proposer. Latest Photo I.D of Proposer, Latest photo of Proposer duly signed by him must be enclosed in the declaration column of proposal form.

Proof of residence of Proposer must be enclosed with proposal form Previous insurance details of Minor Life assured, Proposer & other siblings Income proof of Proposer along with the financial questionnaire In case Proposer is an NRI a copy of passport and NRI Q must be enclosed

Important Points to Remember in Minor Life Underwriting

Only parents can be proposer. Grandparents if required can only be the premium payer but not party to the contract. However, grandparent can propose in case of single premium Cant cover dependant life [Major who is neither a student nor an income generator] 36

Maximum Cover Available MINOR LIVES

Max Cover without linking to parents insurance 5 lakhs Max Cover after linking to parents / other siblings insurance Equal to Parents & other siblings cover or up to Rs 30 lakhs [ whichever is lower ] provided parents income is sufficient to support the total insurance cover

RIDERS NOT ALLOWED TERM PLAN NOT ALLOWED

Female lives Underwriting Professional, salaried, business

Description Female lives with verifiable evidence of income, occupation or employment Maximum Cover Same as major male lives with verifiable source of income Riders / Plans Riders allowed as per underwriting norms

Guidelines FEMALE LIVES Description:

Female lives with no verifiable evidence of income incomes, occupation or employment: Non-earning dependent female: [Housewife etc.] Self-employed women with no verifiable evidence of income, occupation or employment [Tuition, Beauty Parlor, shopkeeper, Small temporary employment, small business etc.]

Maximum Cover:
Total cover (Total SA of all policies including CI rider) of 5 lakhs will be granted without linkage to Husbands insurance. 37

Maximum cover available subject to condition:

If total cover exceeds 5 lakhs, it will be linked to Husbands Insurance and maximum cover granted will be equal to husbands insurance, but not more than 10 lakhs [Depending on Husbands financial status]

Riders / Plans
Term Products not allowed. Term Riders TPD WOP not Riders, TPD, allowed Critical Illness rider is allowed [Note: Housewives whose premiums are financed from Husbands income can be given CI rider only]

Additional New guidelines for this category

Annual Income of husband and total insurance on his life to be stated in the proposal form Income proof of the husband would be necessary if the total amount of insurance applied or existing on the life of life to be assured , and on the life of any other person in the family ( including husband) which is financed through husbands income, exceeds 20 Lakhs FQ to be furnished Proposal has to be self-proposed (No Proposer allowed) & there should be letter from Husband stating that he will pay the premiums to keep the policy in force. For Illiterate married women, Insurance cover will be linked to Husbands Insurance (mandatory) subject to max. of 5 lakhs .

Signature Mismatch:
For signature mismatch Self Declaration ( addendum) will be sufficient Minimum Premium: The minimum premium for any mode / any product must be Rs.2500 for New business log-in with immediate effect. 38

In case of only SIP product, the premium for minimum 2 months @ Rs.3000 or Rs.4000/- is acceptable. Any exception to above must be approved by ZBH & Channel head

Underwriting Summary

The process of verifying the level of risk in each new entrant [life to be insured] and Determining the terms of admission [policy issuance] is called Underwriting.. The factors affecting risk on the life on individual are called Hazards. Hazards may be Physical Hazards, Occupational hazards, and Moral hazards. The underwriter makes decision on the basis of information sourced through various tools - Application form, Medical reports, agents confidential report, moral hazard report, age proof, AML / KYC documents and additional questionnaires.

The various underwriting decisions are Standard, Substandard / Counter offer, Postpone for specific period, Decline. The various underwriting categories are: Medical / Non medical, Financial underwriting, Occupational underwriting, Major Students lives underwriting, Minor lives underwriting and Female lives underwriting

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Risk Factor in life Insurance

Risks and uncertainties are not avoidable in life. They threaten the assets and their earning capacities. The assets may be by human or material. The risks have to be managed. Management of risk has developed as a subject of specialised study. The objectives of managing risk are to eliminate, or at least reduce, the effects of, the risks. To do so, the risks have to be first identified and then analysed, in the same ways problems are identified and analysed, before attempting solutions. There are ways of doing these. After identifying and analysing the risks, The ways of managing risks are Avoidance or Prevention Reduction Retention Transfer

Risks are not totally preventable, because they are often caused by forces and situations outside ones control. Natural perils like cyclones and earthquakes are not preventable. Even a very careful person will be involved in a motor accident because someone else makes a mistakes. Buildings collapse because some occupants add more weight than permitted through alteration and storage. Other suffer In retrospect, it may be felt that the damage was avoidable. Yet, what is practical does not always happen. There are limits to prevention.

Reduction of risk may be possible. Segregation of hazardous material and processes, proper periodical maintenance of electrical and other installations, good housekeeping, proper packing, regular training for personal handling materials and safety functions, regular drills creating mock situation, installing sprinklers and heat detector systems that detect danger signals, easy access for fire engines and availability of water, fire extinguishers, waterproof or pilfer proof packing, wearing car seat belts or helmets etc. are some methods to reduce risk.

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Steps towards reduction may aim at situation before a peril has struck as well as situation after the peril has struck, as reflected by the steps mentioned earlier. However, reduction of risk is not an alternative to reduction or transfer. The efforts to find ways of reducing risks should never end. Useful ideas may emerge at any time. Reduction must continue despite retention or transfer.

Strategies for reduction of risks have to be thought of beforehand, to be put into operation after the perils has struck. Regular drills simulating likely disaster situations are essential as preparation to reduce losses. Otherwise, someone would be reading the instructions on the fire extinguisher after the fire has broken out or searching for the telephone numbers of emergency services. The extent of loss of lives and property after a rail crash or a fire, is affected by the speed and quality of reaction and responses are known to cause more deaths and casualties than the events themselves.

Risk Management

Risk Management begins with identifying the risks and then analysing the risks. MPL and PML are two factors that helps to identify and analyse the risks. A third factor to look at is the credibility of the data that have been used in the analysis. Occasional comparisons of forecasts of losses made in the past with actual losses would establish credibility as well as the steps necessary to improve credibility.

Risk Management attempts to identify and eliminate, or at least reduce the effects of, various risks. There are financial risks related to ones financial resource, arising out of fluctuations in the stock market or because od exchange rate fluctuations or because of political disturbances or any other reason.

In practise, risk management will be done through a mix of all the alternatives. They are not mutually exclusive. Attempts at prevention and reduction will continue even after transfer is arranged, because the loss will invariably be more than what the insurer will compensate. Even retention and transfer, which seem to be mutually exclusive are not. Some risks can be transferred to insurers, retention are possible through systems of excess. The relevant considerations are costs as well as feasibility.

Factors Affecting Risk

The factors affecting risk on the life of an individual are called HAZARDS Hazards may be:-

HAZARDS

PHYSICAL

OCCUPATIONAL

MORAL

Physical hazards Age Sex Build Physical condition Physical impairments Personal history Education, Lifestyle, risky hobbies like adventurous sports, habits, consumption of alcohol / tobacco / narcotics or drugs, financial status, insurable interest. Family history

Occupational hazards Nature of job E.g. cashier in shop, pilot, banker, circus artist, driver, etc.( exact nature of duties)

Place in which the job is done E.g. working in chemical factories, working with high voltage electricity, working

at heights, working with high speed machines, adventure sports, working in bank, post office and so on.

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Moral hazards If the intention is to seek undue advantage through the insurance policy, there is some moral hazard. The undue advantage may be to get a lower premium or to make some quick monetary gains. Moral hazard is not measurable. It is a matter of opinion. In the following situation, moral hazard can be suspected: The proposal is for an amount much larger than what the income would justify

Premium

Meaning of Premium In a contract of insurance, the insurer promises to pay to the policyholder a specified sum of money, in the event of a certain specified happening. The policyholder has to pay a specified amount to the insurer, in consideration of this promise. Premium is the name given to this consideration that the policyholder has to pay in order to secure the benefits offered by the insurance contract. It can be looked upon as the price of the insurance contract. It may be one-time payment. It is then called a single premium policy. That is not common. Often, it has to be paid regularly over a period of time. A default in premium can endanger the continuance of the policy. If that happens, the policy will be treated as lapsed and the expected benefits may not be available. The consequences of default are specified in the policy condition, which will be discussed in a later chapter. Thus, premium has an important role in the business of insurance. It does not have the meaning of being higher quality or more expensive which it has in different contexts. The calculation of premium is a complex technical process, involving actuarial and statistical principles. Only trained professional, called actuaries, do it. Tables of premium rates for each plan of insurance are made available by insurance companies for use in quoting premiums for a particular policy. This chapter is meant to make students aware of the rationale behind the premium calculations. The premium is calculated on the basis of assumption relating to the future experience on mortality, interest rates and expenses. These assumptions are based on the insurers own experience in the past and therefore not arbitrary.

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Yet, they are assumptions as far as the likely future experience is concerned. The margin for contingencies is provided because of the uncertainty that these assumptions will turn out to be valid, as the future unfolds.

Types of Premiums

Premium

Risk

Net

Level

Office

Extra

Risk Premium
The business of insurance is based on the probabilities of risk. The premium to be paid by each person is determined on the basis of assumptions made relating to the probability of the risk for which cover is sought. With regards to each kind of perils and the associated risks, probabilities are worked out based on past experience. The probability of 37 risk will depend partly on how frequently the peril may occur and how severe can its impact be. Both frequency of occurrence of the perils and extent of damage depend on a number of factors. Some of these factors may be controllable and some may not be controllable. The studies on probabilities of risks will not help an insurer to say which one of its insured persons will suffer from the peril in question. It may however, be possible to say how many persons, on an average, are likely to be affected by peril insured. Premiums are determined on that basis. The following example explains the above concept in a very simplified manner. Example There are 1000 persons who are all aged 50 and are healthy. If the probability of death at age 50 within one year is assumed to be 1% or 10 persons in this case, and if each person wants to insure for Rs 20,000/- the total loss is expected to be Rs 2,00,00 in one year.

If the person who insured group contribute Rs 200, the common fund would be Rs 2,00,000. This would be enough to pay Rs 20,000 to the family of each of the persons who die. Thus, the risks are shared by 1000 persons, although 990 of them did not suffer any loss. The risk premium is calculated on the basis of an expectation as to how many persons are likely to die within a year in an age group. This expectation, regarding the number of persons likely to die within a year, at each age, is calculated by actuaries on the basis of past experiences and made available as Mortality. Tables Mortality tables prepared for use of insurance offices, contain data relating to such probabilities. If the mortality tables shows that X% is the probability of death within one year for any age, (100-X)% persons are likely to be living at the end of one year, when they would all be one year older. This is a probability and not a certainly. It does not mean that X% will die. It means that over a long period of time, if large numbers of people at that age are observed, nearly X% may be dying within a year. Mortality studies, reflecting the experience of Indians, are made by the mortality and morbidity investigation bureau (mmib) set up jointly by the Life Insurance Council and the Actuarial Society of India, to help insurers.

Net Premium or Pure Premium The premium collected by insurers every year are not utilised for payment of claims. This is so for many reasons. One is that the real experience may be different from the probabilities indicated by the mortality tables. Secondly, the portion of the premium is meant to meet survival benefits and must be kept aside. The balance premium kept aside, after outgoes of various kinds, will be invested and will earn some interest. To the extent of these interest earnings, the premium charged can be reduced. The premium worked out after taking into account the interest likely to be earned, is called the Net premium or Pure premium. The premium is calculated on the basis of assumptions relating to the future experience on mortality, interest rates and expenses. These assumptions are based on the insurers own past experience in the past and therefore not arbitrary. Yet, they are assumptions as, far as the likely future experience is concerned. The margin for contingencies is provided because of the uncertainty that these assumption will turn out to be valid, as the future unfolds.

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Level Premium If it is expected that out of 10,000 persons at a specified age, the probability is that one may die within one year, the mortality rate at that age is said to be 0.01%. The risk premium chargeable for person at that age would be Rs 0.10 per Rs 1,000 SA. If a policy has a term of 20 years, the risk premium and therefore, the premium charged would vary for each

of the 20 years. It would be difficult to administer annual changes in a continuing contract. Apart from that, the premium at later ages, towards the end of the policy term, would be very high and people may find it beyond their ability to pay. They will then be without the protection of insurance at times when they need it most. To offset this problem, insurers spread the risk premium on a uniform basis, throughout the term of the policy. The premium will remain constant for 20 years. Such uniform premium is called level premium. This implies that the premium collected would be more than necessary for the risk in the early ages, and less than necessary towards the latter part of the policy.

Office Premium
The level premium figures arrived at after loading the net premium or pure premium is called the office premium. They are now ready for use. The premium figures printed in the promotional literature and brochures are office premiums. They are also reffered to as the Tabular Premium. Obviously, the chances, or probability, of a person dying within the next 10 years is more than the chances of his dying in the next year, whatever be the age of the person. In the other words, the risk (of death) is more in a term. Therefore, at any age, the premium for a longer term plan like Whole Life would be more than for an endowment plan. But because of the practise of level premiums, the tabular premium charged (per annum), would be less for a longer term policy than for a shorter term policy. On the aggregate, the total premium over the entire term would be higher in the longer term plan than in the shorter term plan. The tabular premium for an Anticipated Endowment plan would be higher than for an Endowment plan for the same term, because the insurer may have to pay a higher SA in the Anticipated Endowment Plan.

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Extra Premium
Extra premium may be charged on any particular policy. This may happen because of the grant of some benefits in addition to the basic benefits under this plan, like accidental benefit or premium waiver benefit. Riders (discussed in a subsequent chapter) provide additional or supplementary benefits. Extra premium may become chargeable because of decisions relating to the extent of risk in any particular case. If the risk of the person to be insured is assessed as more than normal, because of health or because of occupation or habits, insurers may charge extra premiums. These are usually stated as say, Rs 2 per thousand, and will be added to the tabular premium otherwise chargeable.

Calculation of Age
The premium to be charged will vary according to the age of the life assured. Premium rates for each plan of assurance are calculated for each age. If, after the policy is issued, the age is found to be different from the age stated in the proposal, the premium mentioned in the policy will be changed from inception. Either the shortfall will be collected as arrears or the excess will be refunded. Insurers prefer to admit the age to the commencement of the policy, in order to avoid such problems later. Age has to be determined as on the date of commencement of the policy. As the date of commencement of the policy would not be the date of birth of the life insured, and age has to be reckoned only in complete years, not months and days, three different methods are followed by insurers. These are age next birthday (birthday coming after the date of commencement of policy), age last birthday (birthday prior to the date of commencement) or age nearest birthday (birthday within six months of the date of commencement, whether before or after). If a person is born on 20th August 1980 and the policy has commenced on 10th July 2007, the age next birthday would be 27, the age last birthday would be 26 and the age nearest birthday would be 27. If the date of birth is 17/06/1985, the age next birthday on 25/06/2007 would be 23, the age next birthday on 25/06/2007 would be 23, the age last birthday would be 22 and the age nearer birthday would be 22.

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Premium Calculation
The following illustrations are based on certain assumptions with regards to practices of insurers. These assumptions are specified at the appropriate places. While making calculations for any policy, the practices of that insurer must be conformed to. Step 1 Find out tabular premium i.e. premium quoted in published premium rates, for given age (nearer, next or last birthday as the case may be) for the relevant plan and term. This premium is usally stated as Rs per thousand SA. Assume that the tabular premium is Rs 45.60

Step 2 Deduct adjustment for large SA, if applicable. Assuming that the insurer allows rebates as follows Sum assured Rs 25,000- Rs 49,999 Rs 50,000- Rs 99,999 Rs 1,00,000 and over Rebate per thousand SA Re.1/Re.1.50/Re. 2/-

In this policy for Rs 75000 SA, the premium would be Rs 44.10 (45.60 less 1.50)

Step 3 Make adjustment for mode of payment of premium. Assuming that the insurer provides rebates of 1% for yearly mode and that the mode proposed in this case is yearly, the premium Would decrease by 1% of 44.10 or Rs 0.44 making the premium Rs 43.66 40 Step 4 Add extras, assuming that the extras in this case are Rs. 1.50 per thousand for occupational hazard and Rs. 2 per thousand for supplementary benefits the total addition is Rs 3.50, making the total premium Rs 47.16

Step 5 Multiply by SA (Rs 47.16* 75) equals Rs. 3537.00

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Note If the adjustment of 1% for mode (step 3) is made before the adjustment for SA, the deduction would have been 0.46, instead of 0.44. The difference can be significant, if the insurance is for a large SA. Insurers would clarify how they want it to be done.

The above calculation was made for yearly mode of premium. Therefore, the figure of 3537 is the premium to be charged. If however, the mode was quarterly, then the annual premium worked out by the above method, without the rebate of 1% for yearly mode, will have to be divided by 4 to determine the quarterly instalment premium.

In the calculation shown in the earlier paragraph, the final figure arrived at has no paise. If there are paise in the final figure, they may be (i) ignored or (ii) rounded off to the next higher integer, or (iii) rounded off to the nearest integer or (iv) rounded off to the nearest 50 paise or any other adjustment, as the insurer may practice.

A few examples are given below

Plan term 1 2 3 14-30 5-35 75-20

SA Rs. 25,000/Rs.50,000/Rs. 30,000/-

Age 35 30 30

Mode Hly Qly Mly

Other riders DAB + EPDB Health extra Rs 3 DAB +EPDB

Note
DAB stands for Double accidental benefit and EPDB stands for extended permanent disability benefit. Most insurers combine these two benefits together.

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CHAPTER NO 5 RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Meaning of Research:
Research as a means for gaining knowledge can be carried out either at random or in a systematic fashion. Research is a way of finding new way of looking at familiar things in order to explore ways of changing it. Research in common manner of speaking refers to a research of knowledge. One can also define research as a scientific and systematic search for relevant information on a specific topic. In fact, research is an act of scientific investigation. Research concerns itself with obtaining information through observation that can be used to systematically develop logically related proposition so as to attempt to established casual relationships among variables -: Black and Champion. A] Selection of study area:Future Generali India Life Insurance Co Primary Data Discussion with Mrs the Underwriter of the company. Collecting the information relating to the Underwriting from other members of the Underwriting Dept. of the organisation. Discussion with the Branch Manager, Mr Shakeel Ahmed. Discussion with the learning & Development Manager Mr Irfan Shaikh.

B] The secondary data as is provided by the organisation The needed information is collected from: Human Resource Methodology by Nirali Prakashan.

The present study is aimed at analysing the Life Insurance Underwriting Method of the Future Generali India Life Insurance Co. Pvt. Ltd. 51

Research Design
A research design is a blue point prepared depending on various types of blue point available for the collection, measurement & analysis of data. Every research design must have a scientific base to achieve the desire objective. A research design is a marter plan or model for the conduct of formal investigation & survey. It decides the sources of information & methods of gathering data. A questionnaire or other forms are rested to use for the collection of data. Sample design is to be selected. Good research design insure that the information obtained is relevant to the research question & that the collection by objective since research design is simply framework or plan for a blue print is followed in completing for research study. Research design decision should be in the following order: What is study about? Why should is being carried out? What type of plan is required? Where can be the required data found? What period of time shall the study include? How shall be the sample design? What method/technique of data collection will be used? How will the data be analysed? In what style shall the report prepared?

Research Design is classified for the purpose of survey/ investigation is as follows Research Design

Exploratory

Descriptive

Casual Experiment

Here for this research study descriptive method/ design has been used. Survey & interview were used to collect primary data where in secondary data was collected from internet, manuals, magazines etc. this research aims at describing the various sales promotion techniques being used & its effectiveness

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