Page 1 of 6
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 3
March 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 213
A survey study on the HR Compensation policies on five
Private Life Insurance Companies in India
Neelam Joshi & Arun Sharma
1Research Scholar, DMS, University of Rajasthan
2Lecturer, Raj Rishi College, Alwar (Raj.)
1
neelamjoshi08@gmail.com
Abstract:
Indian insurance sector has a long standing tradition
which dated back to 1818 when Oriental Life
Insurance Company was established in Calcutta.
Subsequently British Insurance Act was enacted in
1870 which paved way for the foreign insurance
companies to set their foothold in India. The Indian
Life Assurance Companies Act, 1912 was considered
as the first statutory measure to regulate life insurance
business in India. The Indian Insurance Companies Act
was enacted in 1928 and statistical information about
transactions in both life and non-life business in India
by Indian and foreign insurers including provident
insurance societies was collected by the then
Government. Insurance Act, 1938 was passed to
protect the interest of the Insurance public which also
included comprehensive provisions for effective control
over the activities of insurers. In this paper we have
investigated the HR Compensation policies of five
different private Insurance Companies, viz., ICICI
Prudential, Bazaz Allianz, HDFC Life Insurance,
AVIVIA and Max Life Insurance.
Key Words: IRDA, Insurance, HR Compensation
I. Introduction
Employee advantages are discretionary, non-wage
remuneration gave to workers notwithstanding their
typical wages or compensations. These sorts of
advantages may incorporate gathering protection
(wellbeing, dental, vision, life and so forth.), incapacity
wage assurance, retirement advantages, childcare,
educational cost repayment, wiped out leave, get-away
(paid and non-paid), financing of training, and
additionally adaptable and elective work courses of
action.
The advantages of advantages arrangements: Although
costly, there are numerous natural advantages to
furnishing your representatives with a complete
advantage arrangement. For most, it is the capacity to
discover and keep profoundly qualified staff that is the
key driver. With the part being exceedingly focused
and the quantity of new representatives entering the
workforce lessening, managers are tested to wind up
much more inventive and responsive in the
configuration, timing and liberality of their advantage
arranges. The more dynamic the association, the more
adaptable the structure is in light of today's difficulties:
i.e. like having four distinct eras of representatives
working one next to the other. Businesses who keep on
giving the more conventional and constrained project,
might think that its more hard to discover and keep
diverse sorts of representatives.
II. Review of Literature
Review of Literature provides a critical summary of
research already done on the relevant topic. It provides
readers with a quick overview of the problem
addressed, stresses the need for the new study, and
demonstrates how it will contribute to existing
evidence. Review of Literature is conducted to
generate a theoretical and scientific knowledge about a
particular phenomenon and results in a synthesis of
what is known and unknown about that phenomenon.
The primary purpose of literature is to gain a broad
background available related to problems in conducting
research. Thus it facilitates selecting a problem and its
purpose, developing a framework and formulating a
lesson plan. In brief, review of relevant literature is an
analysis and synthesis of research sources to generate a
picture of what is known about a particular situation
and to expose the knowledge gaps that exist in the
situation. Many studies have been conducted from time
to time at national and international levels to study the
various aspects of the life insurance industry, such as
service quality, customer satisfaction, customer
retention, customer loyalty, marketing strategies,
customer preferences, etc. A critical assessment of
literature already available in relation to the point of
interest for study, in the form of general literature and
specific studies, makes the research effective and
useful. The review might be helpful in drawing
significant conclusions and serve as a guide for any
Page 2 of 6
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 3
March 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 214
further study. It facilitates elimination of duplication of
work and provides chances to identify the gaps that
exist in the area of research.
Basavanthappa, C. and Rajanalkar Laxman (2009), in
their article on “Performance of Life Insurance
Companies: A Comparative Study”, show that the
private insurance companies have made their presence
felt and have, over the years, achieved remarkable
progress. There is a big opportunity for these
companies in the Indian Life Insurance Sector. The
companies have to bring out innovative products to suit
the different requirements of the public. A healthy
competition in the sector would be beneficial to both
the players and
the public.
Gursharan Singh, P. (2009),in his PhD thesis, probes
why the LIC is not going ahead and propose that the
basic reason is that their products as well as technology
are not upgraded and that there is need to improve the
processes and popularise the scheme. With the entry of
private insurers in the industry, many new channels of
distribution have become available. However, the LIC
has not used them to the desired level. So, the author
recommends that such channels be used aggressively
by the LIC to meet the rising level of
competition. He also highlights that advertisements
play an important role. Advertisement increases
awareness about life insurance products among the
masses.
Mrinalini Shah and Shweta Dixit (2009),in their article
on “Distribution Channels for Incumbent Rural
Insurance Industry Confidence”, conceptualize that the
penetration of rural insurance in India requires a fresh
approach to sell rural insurance products because of the
limitations in insurance business. Since this activity
revolves around agriculture, suitable insurance cover of
the needs of the targeted rural customers has to be
addressed.
Sathish, S.V. (2009), in his article entitled “Life
Insurance Marketing – A Phenomenon”, contends that
insurance marketing requires intriguing creativeness of
the insurers, implying updating knowledge on the
markets with global perspective, which calls for
availability of enough right data or information at the
hands of the operating offices.
Bishnoi Mahender (2010), in his thesis, “CRM
Strategies in Indian Life Insurance Industry – A
Comparative Study of Public and Private Sector” ,
expresses that the prompt settlement of a genuine claim
is an important function of the insurance industry and
also a foundation for the CRM Strategies. Further, the
CRM strategies are proved to help the company to
address the important concerns of the customers and
also to build their patronage continuously. The
potential competition in the industry has pushed the
way of accepting CRM strategies.
Shashidharan Kutty (2010), in his article “Indian Life
Insurance – The Millennial Decade”, elaborates the
qualitative development in the Life Insurance Industry
during the last decade, both in the global and in the
Indian context. In his empirical analysis, he finds that
the dominant paradigm in sales has been to build the
sales infrastructure. Somehow, the growth would
automatically materialize and the selling competence
will also be enhanced. But, life insurance, as an
industry, is mostly built on trust, protection,
preservation and long-term opportunity.
Nagaraja Rao (2011), in his PhD thesis, outlines
various practical measures to enhance the volume of
life insurance business in the rural area. The objectives
of the thesis are to study the expectations of the rural
customers, to study the levels of insurance awareness,
to unearth the reasons for low insurance coverage in
rural areas, to bring out the effects of advertisement
and other promotional activities, to identify the factors
that influence purchase decisions, to estimate the
dimensions of customer satisfaction, to identify the
deficiencies in the current marketing techniques and to
offer suggestions with the objective of mass rural
coverage.
III. Comparative study of all five Insurance
Companies
Amongst the five private insurance companies, viz.,
HDFC Standard Life Insurance Co. Ltd., Max New
York Life Insurance Co. Ltd., ICICI Prudential Life
Insurance Company and Bajaj Allianz Insurance
Companies; here are seven straightforward approaches
to rouse representatives and build fulfillment:
1. Representative Orientation – One of the most ideal
approaches to have fulfilled workers is to ensure
they're satisfied from the get-go. Offering a careful
introduction will guarantee desires are sensible and that
new staff members don't come in with rose-hued
glasses that will rapidly blur. Legitimate onboarding
empowers inspirational mentalities and can diminish
turnover. This feature or fact is highly reflected in
ICICI Prudential Life Insurance Company and Bajaj
Allianz Insurance.
Page 3 of 6
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 3
March 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 215
2. Positive Work Environment – An energetic working
environment is a need. In the event that the workspace
isn't sure, you can't anticipate that the specialists will
be. Empowering each other, staying away from
micromanagement, giving positive input and
guaranteeing feedback is productive are all approaches
to keep the environment a spot where workers can
accomplish more than survive – they can flourish!
Generally it is seen in HDFC Standard Life Insurance
Co. Ltd. And Max New York Life Insurance Co. Ltd.;
followed by ICICI Prudential Life Insurance Company
and Bajaj Allianz Insurance Company.
3. Give Competitive Benefits – Fair wages are
imperative, yet focused advantages are likewise basic
to keeping your workforce fulfilled. In the event that
your advantages bundle is flimsy, workers might
search for different open doors with firms that are more
liberal. Past protection, advantages, for example,
strategic scheduling, paid occasions and individual
days are critical elements to worker fulfillment.
4. Workforce Engagement – Employees that don't
discover their work intriguing or don't feel they are
adding to the mission of the firm won't be locked in.
For representatives to be fulfilled, they should feel like
they are a piece of an option that is greater than exactly
what their individual work assignments are.
Incorporate staff members in objective setting and how
they fit in the partnership fabric to build engagement
and fulfillment.
5. Create Skills – Everyone needs something to
progressing in the direction of. Stagnation is
unfulfilling. Representatives have more potential than
their present level of usefulness. Urging representatives
to satisfy that potential will build engagement and
fulfillment. Whether it's preparation opportunities,
coaching, online courses or outer preparing, urge staff
to dependably be enhancing their aptitudes.
6. Acknowledgment and Rewards – Employees
appreciate an atta-kid and it need not be an open show
to mean something to representatives. Urge directors
and administrators to recognize workers deeds once a
day. Likewise actualize a formal project all inclusive to
perceive top achievers in each occupation
classification. Sound rivalry can support assurance,
empower diligent work and build fulfillment and
maintenance.
7. Track Job Satisfaction – Don't kick back and simply
trust that representatives are fulfilled – put some
information behind it. Offer mysterious online reviews
or portable studies to successfully track how
representatives feel about advantages,
acknowledgment, boss criticism and different
viewpoints that add to worker fulfillment. This permits
you to enhance, change and screen fulfillment levels to
decrease turnover and save the organization cash.
Policies of Max New York Life Insurance Co. Ltd. and
ICICI Prudential Life Insurance Company generally
witness this feature.
HR experts have a standout amongst the most difficult
employments in a business on the grounds that your
occupation is considering other people's occupation
and how well they like it, that they are so prone to stop
or how their demeanor influences colleagues.
Expanding representative fulfilment through these and
different measures can make your occupation (and
everybody else's) additionally fulfilment.
12.05
28.87
45.53
17.5
9.89
22.85
48.09
19.15
11.2
22.22
49
17.5
12.96
25.6
45.2
16.19
10.68
23.06
48.35
17.83
SD D A SA SD D A SA SD D A SA SD D A SA SD D A SA
AVIVA LIFE
INSURANCE
MAX LIFE INSURANCE ICICI LIFE INSURANCE HDFC LIFE
INSURANCE
BAJAJ ALLIANZ
Comparative Analysis Of The Survey Of All 5
Companies
