PROJECT REPORT

ON

TRAINING AND DEVELOPMENT AND DEVELOPMENT ON

EMPLOYEE RETENTION IN AN ORGANIZATION

SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF

BACHELOR OF COMMERCE (HONS.)

BATCH - 2017-2020

Submitted By: PROJECTGUIDE

Name of Student:Dipamshu aggarwal Name: Mrs. Upasna gutt
Enrollment No: 42920688817 Designation: Assistant Professor

Trinity Institute of Professional Studies

Affiliated To Guru Gobind Singh Indraprastha University, New Delhi

ACKNOWLEDGEMENT
I wish to express my indebted gratitude and special thanks to Mr. Manas Das, Chief Manager,
IDBI Federal who in spite of being extraordinarily busy with his duties, took time out to hear,
guide and keep me on the correct path and allowing me to carry out my summer internship project
work at their esteemed organization and extending help during the training.

I would also like to thank my college Trinity institute of professional studies for providing me with
an opportunity to undergo this summer internship and gain immense experience of the corporate
world.

CHAPTER-1
 INTRODUCTION

INDUSTRY PROFILE

Life insurance traces its origins in India to the early nineteenth century when companies in India
insured the lives of Europeans living here. Eventually these companies began to cover Indians as
well but required them to pay higher premiums. Regulations were passed to regulate the Indian
insurers (but not the foreign companies providing insurance services in India) and to allow
collection of information about insurance companies thus facilitating comparison amongst them.
However, the legislations became insignificant with time and the government nationalized the
sector by combining all the 154 Indian private insurance companies to give birth to one behemoth:
The Life Insurance Corporation of India.

Through this the Government strived to put an end to prevalent malpractices such as poor Servicing
standards along with the appalling management of companies wherein funds were simply being
divested to all types of securities without any valuation of the borrowers. The Government took
over the reins of the industry in its own hands reasoning that insurance was a cooperative enterprise
and should be within the purview of the state in order to provide improved services to the public
at lower costs. It was also envisioned that the nationalization of this sector would lead to more
effective mobilization of funds to enable capital to be allocated to development projects. Besides
the charter of freedom also pleaded the control of the state on key industries such as banking and
insurance. Thus the industry was transformed from a competitive one to a highly regulated
monopoly.
HISTORY

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
(Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya (Arthasastra ). The writings talk in
terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods,
epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian
history has preserved the earliest traces of insurance in the form of marine trade loans and carriers’
contracts. Insurance in India has evolved over time heavily drawing from other countries, England
in particular.

1818 saw the advent of life insurance business in India with the establishment of the Oriental Life
Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras
Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the
enactment of the British Insurance Act and in the last three decades of the nineteenth century, the
Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay
Residency. This era, however, was dominated by foreign insurance offices which did good
business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe
Insurance and the Indian offices were up for hard competition from the foreign companies.
In 1914, the Government of India started publishing returns of Insurance Companies in India. The
Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life
business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to
collect statistical information about both life and non-life business transacted in India by Indian
and foreign insurers including provident insurance societies. In 1938, with a view to protecting the
interest of the Insurance public, the earlier legislation was consolidated and amended by the
Insurance Act, 1938 with comprehensive provisions for effective control over the activities of
insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large
number of insurance companies and the level of competition was high. There were also allegations
of unfair trade practices. The Government of India, therefore, decided to nationalize insurance
business.

An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and Life
Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16
non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The LIC
had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and the
consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a
legacy of British occupation. General Insurance in India has its roots in the establishment of Triton
Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile
Insurance Ltd, was set up. This was the first company to transact all classes of general insurance
business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of
India. The General Insurance Council framed a code of conduct for ensuring fair conduct and
sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency
margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalization) Act, general
insurance business was nationalized with effect from 1st January 1973. 107 insurers were
amalgamated and grouped into four companies, namely National Insurance Company Ltd., the
New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India
Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a
company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years.
The process of re-opening of the sector had begun in the early 1990s and the last decade and more
has seen it been opened up substantially. In 1993, the Government set up a committee under the
chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms
in the insurance sector. The objective was to complement the reforms initiated in the financial
sector. The committee submitted its report in 1994 wherein, among other things, it recommended
that the private sector be permitted to enter the insurance industry. They stated that foreign
companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian
partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in
April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower premiums, while ensuring the
financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the
power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000
onwards framed various regulations ranging from registration of companies for carrying on
insurance business to protection of policyholders’ interests.

In December 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was converted into a national re-
insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.
Today there are 28 general insurance companies including the ECGC and Agriculture Insurance
Corporation of India and 24 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with
banking services, insurance services add about 7% to the country’s GDP. A well-developed and
evolved insurance sector is a boon for economic development as it provides long- term funds for
infrastructure development at the same time strengthening the risk-taking ability of the country.

MARKET SIZE

India's life insurance sector is the biggest in the world with about 36 crore policies which are
expected to increase at a compound annual growth rate (CAGR) of 12-15 per cent over the next
five years. The insurance industry plans to hike penetration levels to five per cent by 2020, and
could top the US$ 1 trillion mark in the next seven years.
The total market size of India's insurance sector is projected to touch US$ 350-400 billion by 2020
from US$ 66.4 billion in FY13.
The general insurance business in India is currently at Rs 77,000 crore (US$ 12.41 billion)
premium per annum industry and is growing at a healthy rate of 17 per cent.
The Rs 12,606 crore (US$ 2.03 billion) domestic health insurance business accounts for about a
quarter of the total non-life insurance business in the country.
Investment corpus in India's pension sector is anticipated to cross US$ 1 trillion by 2025, following
the passage of the Pension Fund Regulatory and Development Authority (PFRDA) Act 2013,
according to a joint report by CII-EY on Pensions Business in India.
Indian insurance companies are expected to spend Rs 117 billion (US$ 1.88 billion) on IT products
and services in 2014, an increase of five per cent from 2013, as per Gartner Inc. Also, insurance
companies in the country could spend Rs 4.1 billion (US$ 66.11 million) on mobile devices in
2014, a rise of 35 per cent from 2013.
MAJOR INVESTMENTS AND DEVELOPMENTS IN THE INDIAN
INSURANCE SECTOR
Insurance sector of India needs capital infusion of Rs 50,000 crore (US$ 8.06 billion) to expand,
maintain a healthy capital base and improve solvency standards, according to Insurance Regulatory
Development Authority (IRDA).
The following are some of the major investments and developments in the Indian insurance sector.
● Life Insurance Corp of India (LIC) has earmarked a total of around Rs 1 trillion (US$ 16.12
billion) for investments in bonds, including non-convertible debentures (NCDs),
certificates of deposit (CDs), commercial papers (CPs) and collateralized borrowing and
lending obligations (CBLOs), with primary focus on infrastructure and real estate in the
year to March 31, 2015.
● Aditya Birla Financial Services Group has signed an agreement to form a health insurance
joint venture (JV) with MMI Holdings of South Africa. The two will enter into a formal
JV in which the foreign partner will hold a 26 per cent stake.
● South African financial services group Sanlam plans to increase stake in its Indian JV
Shriram Life Insurance from 26 per cent to 49 per cent.
● JLT Independent plans to develop India as a service hub for all countries that are a part of
South Asian Association for Regional Cooperation (SAARC), according to Mr Sanjay
Radhakrishnan, CEO, JLT Independent.
● Kotak Mahindra Bank became the first bank to get the permission from Reserve Bank of
India (RBI) to set up a wholly-owned non-life insurance company.

▪ GOVERNMENT INITIATIVES

The Government of India has taken a number of initiatives to boost the insurance industry. Some
of them are as follows:
 ● The Reserve Bank of India (RBI) has allowed banks to become insurance brokers,
permitting them to sell policies of different insurance firms subject to certain conditions.
● The select committee of the RajyaSabha gave its approval, permitting 49 per cent
composite foreign equity investment in insurance companies. A broad agreement has also
been achieved with the states on most of the issues concerning the implementation of the
single goods and services tax (GST), which is scheduled to be rolled out from April 1,
2016.
● The Government of India plans to implement a Rs 1,900 crore (US$ 306.41 million) e-
governance project called ‘Panch Deep’ to automate transactions of the Employees State
Insurance Corporation (ESIC), said MrBandaruDattatreya, Union Minister for Labor and
Employment with Independent Charge, Government of India. Under the project, enterprise
resource planning (ERP) solution would be installed across the country which will give a
unique card to the employees and facilitate clearance of third-party bills.
● The Government of India plans to launch a new insurance scheme to protect farmers and
their incomes against production and price risks.
Under the PradhanMantri Jan Dhan Yojana, it has been decided that even those accounts which
had been opened prior to August 28, 2014 and have zero balance will get Rs 100,000 (US$
1,612.55) insurance cover

Insurance in India refers to the market for insurance in India which covers both the public and
private sector organizations. It is listed in the Constitution of India on the in the Seventh Schedule
meaning it can only be legislated by the central government.

The insurance sector has gone through a number of phases by allowing private companies to solicit
insurance and also allowing foreign direct investment. India allowed private companies in
insurance sector in 2000, setting a limit on FDI to 26%, which was increased to 49% in
2014.However, the largest life-insurance company in India, Life Insurance Corporation of India is
still owned by the government and carries a sovereign guarantee for all insurance policies issued
by it.
The Indian insurance industry seems to be in a state of flux. After a decade of strong growth, the
Indian insurance industry is currently facing severe headwinds owing to- Slowing growth, Rising
costs and deteriorating distribution structure.

In the last decade of the 20th century India watched history repeat itself. With the Government
implementing the New Industrial Policy in 1991, the country underwent a major wave of
globalization. Strategic sectors such as the banking and the financial sector were reformed. Time
had come for the policymakers to introspect the current policies in the Indian insurance industry
as well. Committees on insurance sector reforms followed suit and it was found that India had
continued to be one of the least insured countries till the late 20th century. Experts emphasized
that customer service, insurance coverage, allocation of resources needed to be improved within
the industry. Also more innovative products were needed to suit varied customer needs and to
change opinion of people towards insurance, from tax exemption product to a tool for mitigating
risks and increasing savings. Thus it was recommended that the industry should be opened up to
enhance competition and autonomy be given to insurance companies to improve their performance
and enable them to act as independent companies with economic motives. Thus the life insurance
industry was liberalized with the aim of increasing contribution to the GDP and to the society.

The Industry at present consists of 1 public sector company and 23 private sector companies. The
only public sector company is Life Insurance Corporation of India (L.I.C). The other private
sector companies are:

1. SBI Life Insurance

2. PNB MetLife India Life Insurance

3. ICICI Prudential Life Insurance

4. Bajaj Allianz Life

5. Max Life Insurance

6. Sahara Life Insurance

7. Tata AIA Life

8. HDFC Life

9. Birla Sun Life Insurance

 10. Kotak Life Insurance

11. Life Insurance Corporation of India

12. Aviva Life Insurance

13. Reliance Life Insurance Company Limited - Formerly known as AMP Sanmar LIC

14. ING Vysya Life Insurance

15. Shriram Life Insurance

16. Bharti AXA Life Insurance Co Ltd

17. Future General Life Insurance Co Ltd

18. IDBI Federal Life Insurance

19. AEGON Religare Life Insurance

20. DLF Pramerica Life Insurance

21. CANARA HSBC Oriental Bank of Commerce LIFE INSURANCE

22. India First Life Insurance Company

23. Star Union Dia-ichi Life Insurance Co. Ltd

24. Edelweiss Tokio Life Insurance Company Ltd.

ABOUT INSURANCE
“Insurance is a contract between two parties whereby one party called insurer undertakes in
exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of
money on the happening of a certain event.”
An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder,
is the person or entity buying the insurance policy. The amount of money to be charged for a
certain amount of insurance coverage is called the premium. Risk management, the practice of
appraising and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the
form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify)
the insured in the case of a financial (personal) loss. The insured receives a contract, called the
insurance policy, which details the conditions and circumstances under which the insured will be
financially compensated.

Insurance is based on the law of large numbers. By combining a large number of homogeneous
units, the insurer is able to make predictions of possible loss. Using the law of large numbers,
insurers are able to calculate their probable losses and to establish the rates for premiums that will
cover their losses and their operating expenses.

Principles of Insurance

The seven principles of insurance are:-

1. Principle of Utmost Good Faith

2. Principle of Insurable Interest
3. Principle of Indemnity
4. Principle of Contribution
5. Principle of Subrogation
6. Principle of Loss Minimization
7. Principle of Nearest Cause

Role and Importance of Insurance

Insurance has evolved as a process of safeguarding the interest of people from loss and uncertainty.
It may be described as a social device to reduce or eliminate risk of loss to life and property.

Following are the points of importance of insurance-:

 ● Provide safety and security
● Generates financial resources
● Life insurance encourages savings
● Promotes economic growth
● Medical support

● Spreading of risk
● Source of collecting funds
● Insurance provides peace of mind
● Insurance helps in reducing inflation

Types of Insurance

In accordance with study books of The Chartered Insurance Institute, there are the following types
of insurance:

1. Co-insurance – risks shared between insurers

2. Dual insurance – risks having two or more policies with same coverage
3. Self-insurance – situations where risk is not transferred to insurance companies and solely
retained by the entities or individuals themselves
4. Reinsurance – situations when Insurer passes some part of or all risks to another Insurer
called Reinsurer.

Insurance Regulatory andDevelopment Authority (IRDA) is tough and conservative apparatus. A

sound insurance segment ensures better economic development as indicated by a study which
states that 1 per cent increase in insurance penetration leads to 13 per cent reduction in uninsured
losses and 22 per cent reduction in taxpayers' contribution to recovery following a natural
catastrophe.

Keeping pace with international happenings, Indian insurance industry has remained in a good
health and maintained absolute transparency and highest standards of corporate governance.
According to J Hari Narayan, Chairman, IRDA, Assets under management (AUM) of the Indian
insurers are slated to touch Rs 20 trillion (US$ 376.51 billion) while the general insurance sector
is anticipated to grow 18 per cent in 2012-13. He further reported that the insurance sector has
grown substantially over the last few years, with its AUM from Rs 8 trillion (US$ 150.57 billion)
in 2008 to Rs 18 trillion (US$ 338.82 billion) in 2011-12.

According to a Research titled “India Life Insurance 2012: Fortune Favors the Bold” by
McKinsey and Company, India’s Life Insurance market has grown rapidly over the past six years
with new business premiums growing at over 40% per year. The research also mentions that the
new players have contributed to the sector’s development by significantly enhancing product
awareness, promoting consumer education and information, and creating more organized
distribution channels.
 Profile and Organization Structure of the Company

IDBI Federal Life Insurance Co Ltd.

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development
and commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a
multinational insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity
while Federal Bank and Ageas own 26% equity each.

To monitor and manage its network equipment across 34 sites, IDBI Federal uses Tulip Proactive
Managed CE solution. The solution includes device management, proactive troubleshooting and
notification support. With the implementation of the solution, IDBI has reported improvement of
network performance and availability, with a faster, more effective change and configuration
management.

IDBI Federal launched its first set of products across India in March 2008, after receiving the
requisite approvals from the Insurance Regulatory and Development Authority (IRDA). IDBI
Federal offers services through a nationwide network across the branches of IDBI Bank and
Federal Bank in addition to a network of advisors and partners. IDBI Federal has 1201 branches
across the country.

About the sponsors of IDBI Federal Life Insurance Co Ltd-:

IDBI BANK LTD

IDBI Bank Limited is an Indian government-owned financial service company, formerly known
as Industrial Development Bank of India, headquartered in Mumbai, India. It was established in
1964 by an Act of Parliament to provide credit and other financial facilities for the development
of the fledgling Indian industry.

It is currently 10th largest development bank in the world in terms of reach, with 2713 ATMs,
1513 branches, including one overseas branch at Dubai, and 1013 centers, including two overseas
centers at Singapore & Beijing. IDBI Bank is on a par with nationalized banks and the SBI Group
as far as government ownership is concerned. It is one among the 26 commercial banks owned by
the Government of India.

IDBI Bank has been instrumental in sponsoring the development of key institutions involved in
India’s financial sector –National Stock Exchange of India Limited (NSE) and National Securities
Depository Ltd, SHCIL (Stock Holding Corporation of India Ltd), CARE (Credit Analysis and
Research Ltd).

IDBI Bank's operations during the financial year ended March 31, 2014 resulted in a net profit of
Rs. 1121 crore.

Federal Bank
Federal Bank is one of India’s leading private sector banks, with a dominant presence in the state
of Kerala. It has a strong network of over 1060 branches and 1158 ATMs spread across India. The
bank provides over four million retail customers with a wide variety of financial products. Federal
Bank is one of the first large Indian banks to have an entirely automated and interconnected branch
network. In addition to interconnected branches and ATMs, the Bank has a wide range of services
like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, online
bill payment and call center facilities to offer round the clock banking convenience to its
customers. The Bank has been a pioneer in providing innovative technological solutions to its
customers and the Bank has won several awards and recommendations.

Federal Bank won the IDRBT Banking Technology Excellence award for 2013-14 in four out of
total five categories in the mid-sized lenders segment.
Ageas
Ageas is an international insurance group with a heritage spanning more than 180 years. Ranked
among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business
activities in Europe and Asia, which together make up the largest share of the global insurance
market. These are grouped around four segments: Belgium, United Kingdom, Continental Europe
and Asia and served through a combination of wholly owned subsidiaries and partnerships with
strong financial institutions and key distributors around the world.

Ageas employs more than 13,000 people and has annual inflows of more than EUR 21 billion.

Ageas has set up four Board Committees namely-:

The Corporate Governance Committee, The Audit Committee, The Remuneration Committee and
The Risk & Capital Committee.

Recent Achievements
IDBI Federal breaks-even in Five years; posts maiden profit of Rs 9.24 crore.

IDBI federal has achieved great heights and success in its 5years of operation and it includes the
following-:

● New Business Premium grows by 23%, compared to industry’s negative growth of -15%.
● Achieves 44% increase in the number of new business policies sold.
● Product mix further shifts to long-term traditional products, thereby driving profitability
through product-mix. Traditional products account for 83% of new business premium.
● 13th month persistency improves to 76%. Among top 5 companies in persistency
experience.
● AUM (Assets under Management) up by 24% to Rs 2,732 crore. For the calendar year
2012, IDBI Federal’s Equity Fund ranked No 1 among 72 ULIP funds bearing testimony
to the company’s fund management expertise.
Mission, Vision and Values

IDBI federal maintains great integrity through its values.

Their vision is to be the leading provider of wealth management, protection and retirement
solutions that meets the needs of its customers and adds value to their lives.

Their mission is to continually strive to enhance customer experience through innovative product
offerings, dedicated relationship management and superior service delivery while striving to
interact with our customers in the most convenient and cost effective manner.

To be transparent in the way we deal with the customers and to act with integrity.To invest in and
build quality human capital in order to achieve the mission.

They have certain values which they adhere by at all times. Some of them are as follows-:

● Transparency: Crystal Clear communication to partners and stakeholders.

● Value to Customers: A product and service offering in which customers perceive value.
● Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims.
● Customer-friendly: Advice and support in working with customers and partners.
● Profit to Stakeholders: Balance the interests of customers, partners, employees,
shareholders and the community at large.

Sponsorships and Awards

● IDBI Federal Life Insurance Company was the title sponsor for the India-Sri Lanka Cricket
Series 2009, consisting of five One-Day Internationals and a Twenty 20 match. The ODI
series was called the IDBI Fortis Wealthsurance Cup. This was followed by the IDBI Fortis
Wealthsurance Twenty20.
 ● ‘Wealthsurance Made Easy’ (WME), a knowledge aid by IDBI Federal for its sales force,
won The Bronze Dragon in the category for ‘Best Dealer/Sales Force activity’ at the
Promotion Marketing Awards of Asia (PMAA).

Key persons

VighneshShahane

CEO & Whole – Time Director

Ajay Oberoi
Chief People Officer & Head – Administration

AneeshKhanna
Head – eBusiness, Marketing & Product Management

AneeshSrivastava
Chief Investment Officer

ArvindShahi
Chief Risk Officer

Ashley Kennedy
National Head - Agency & Alliances

KedarPatki
Chief Financial Officer

Lalitha Bhatia
Chief Operating Officer
Mahesh Keni
Vice President – Internal Audit

PournimaGupte
Appointed Actuary

Rajesh Ajgaonkar
Head - Legal, Compliance and Company Secretary

CORPORATE SOCIAL RESPONSIBILITY OF IDBI FEDERAL LIFE

INSURANCE CO. LTD.

CSR COMMITTEE

Under section 135 of the Companies Act, 2013 CSR committee comprises of 4 director:

Mr. R. K. Bansal - Chairman

Mr. Suresh Kumar

Mr. Philippe Latour

Mr. J. Balsasubramanian

CSR INITIATIVES

🞂 Eradicating poverty and malnutrition, promoting health care including preventive health care
and sanitation.
🞂 Promoting gender equality
🞂 Empowering women
 🞂 Ensuring environmental sustainability, ecological balance, protection of flora and fauna etc.
🞂 Rural development projects

EXPENDITURE ON CSR

IDBI Federal will spend at least 2% of the average net profits or such other amount as may be
prescribed under the Companies Act 2013.

Product’s Profile

The four basic insurance products that we studied during our internship period are as follows-

1. IDBI Federal ChildsuranceSavings Protection Plan;

2. IDBI Federal Lifesurance Savings Insurance Plan;
3. IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan and
4. IDBI Federal WealthsuranceSuvidha Growth Insurance Plan

Product’s Description
The above-named products are explained below-:

❖ IDBI Federal Childsurance Savings Protection Plan-Being a good parent means making
sure that child gets good education so that their future stays secure. It is a non-linked
participating endowment plan that ensures that child’s future financial needs are fulfilled.
Childsurance Savings is designed to give guaranteed annual payouts and aid the important
milestones in child’s life.
 ❖ IDBI Federal Lifesurance Savings Insurance Plan- is a fixed term on-linked
participating plan that provides the twin benefits of long-term savings and life cover.

With Lifesurance Savings, the small savings will help

one realize the big dreams that one has for himself
and the family. This plan also offers the benefit
of life cover that provides financial security to the family in one’s absence.

It offers the benefit such as-:

● Lump sum payout at Maturity

● Guaranteed Additions to safeguard savings
● Bonuses to boost savings
● Double Protection – Accidental Death Benefit
● Flexibility to plan for the needs
● Loans
● Tax Benefits
❖ IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan- Life is full of
uncertainties, and as a result one always tries and predict what lies in store in the future, so
that one can be prepared. However, minds are always full of doubts as there is no way to
guarantee the future. Incomesurance Guaranteed Money Back is a plan which will enable to
stop predicting the future, and guarantee it instead.

It is a non-linked non-participating money back plan which

gives guaranteed returns on the investment, so that one can
stop worrying about the future
❖ IDBI Federal WealthsuranceSuvidha Growth Insurance Plan- It is a simple unit linked
plan that helps to take the first step towards wealth creation and that too, with ease. What’s
more, the life cover with this plan provides financial protection to the loved ones.

It has four basic steps-

1. Choosing the premiumamount.

2. Choosing the manner of managing investment i.e.
through system or on own.
3. Choosing policy term.
4. Choosing premium payment term.
Introduction tothe topic-training and development

Training is concerned with increasing the knowledge and skills of employees for doing specific
jobs, and development involves the growth of employees in all aspects.

Training and Development is a function of human resource management concerned with

organizational activity aimed at bettering the performance of individuals and groups in
organizational settings. It has been known by several names, including "human resource
development", and "learning and development".

Training and development encompass three main activities: training, education, and development.

● Training: This activity is both focused upon, and evaluated against, the job that an
individual currently holds.
 ● Education: This activity focuses upon the jobs that an individual may potentially hold in
the future, and is evaluated against those jobs.
● Development: This activity focuses upon the activities that the organization employing the
individual, or that the individual is part of, may partake in the future, and is almost
impossible to evaluate.

Objectives of training and development

The main objectives of training and development are as follows-:

1. Improving quality of workforce- Training and development programs can help in improving
the quality of work produced by the workforce of organization. Mostly, training is given in a
specific area like finance, marketing or HR, which helps in improving the quality of work in that
particular area.

2. Enhance employee growth- By attending these training and development programs, employees
are able master the work of their jobs and that's how they develop and grow themselves in a
professional way.

3. Prevents obsolescence-These programs help employees to keep themselves up to date with the
new trends in latest technology, which reduces the chances of termination of the job.

4. Bridging the gap between planning and implementation- It helps organizations to easily
achieve their targets and goals what they actually planned for. Employees know their job better
and they deliver the quality performance according to needs of top management. That's why
organizations can easily implement their plans.

5. Health and safety measures-Training and development program clearly identifies and teaches
employees about the different risk involved in their job, the different problems that can arise and
how to prevent such problems. This helps to improve the health and safety measures in the
company.
Need and Importance

a. Optimum Utilization of Human Resources – Training and Development helps in optimizing

the utilization of human resource that further helps the employee to achieve the organizational
goals as well as their individual goals.
b. Productivity – Training and Development helps in increasing the productivity of the
employees that helps the organization further to achieve its long-term goal.
c. Team spirit – Training and Development helps in inculcating the sense of team work, team
spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the
employees.
d. Organization Climate – Training and Development helps building the positive perception
and feeling about the organization. The employees get these feelings from leaders,
subordinates, and peers.
e. Quality – Training and Development helps in improving upon the quality of work and work-
life.
f. Morale – Training and Development helps in improving the morale of the work force.
g. Image – Training and Development helps in creating a better corporate image.

Methods of Training

The two main methods of training are as follows-:

A) On the job method B) Off the job method

On the job training method

On the job method refers to training given to personnel inside the company. There are different
methods of on the job training namely-:

● Job rotation - This method enables the company to train managerial personnel in
departmental work. They are taught everything about the department. Starting from the
 lowest level job in the department to the highest level job. This helps when the person takes
over as a manager and is required to check whether his juniors are doing the job properly
or not. Every minute detail is studied.

● Coaching and counseling- Coaching refers to actually teaching a job to a junior. The
senior person who is the coach actually teaches his junior regarding how the work must be
handled and how decisions must be taken, the different techniques that can be used on the
job, how to handle pressure.
● Under study- In this method of training a junior is deputed to work under a senior. He
takes orders from the senior, observes the senior, attends meetings with him, learns about
decision making and handling of day to day problems. The method is used when the senior
is on the verge of retirement and the job will be taken over by the junior.
● Apprenticeship- Apprenticeship is a system of training a new generation of practitioners
of a skill. This method of training is in vogue in those trades, crafts and technical fields in
which a long period is required for gaining proficiency. The trainees serve as apprentices
to experts for long periods. They have to work in direct association with and also under the
direct supervision of their masters.
● Job Instructional Technique (JIT)-It is a Step by step (structured) on the job training
method in which a suitable trainer (a) prepares a trainee with an overview of the job, its
purpose, and the results desired, (b) demonstrates the task or the skill to the trainee, (c)
allows the trainee to show the demonstration on his or her own, and (d) follows up to
provide feedback and help. The trainees are presented the learning material in written or
by learning machines through a series called ‘frames’.

Off the job training method

Off the job training refers to method of training given outside the company. The different methods
adopted in off the job training are the following:
 ▪ Classroom method-The classroom method is used when a group of managers have to be
trained in theoretical aspects. The training involves using lectures, audio visuals, case
study, role play method, group discussions etc. The method is interactive and provides very
good results.
▪ Simulation -Simulation involves creating atmosphere which is very similar to the original
work environment. The method helps to train manager handling stress, taking immediate
decisions, handling pressure on the jobs etc. An actual feel of the real job environment is
given here.
▪ Business games- This method involves providing a market situation to the trainee manager
and asking him to provide solutions. If there are many people to be trained they can be
divided into groups and each group becomes a separate team and play against each other.
▪ Committee- A committee refers to a group of people who are officially appointed to look
into a problem and provide solution. Trainee managers are
put in the committee to identify how they study a problem and what they learn from it.
▪ In-basket training-In-basket exercise, also known as in-tray training, consists of a set of
business papers which may include e-mail SMSs, reports, memos, and other items. Now
the trainer is asked to prioritize the decisions to be made immediately and the ones that can
be delayed.

There is one more method of training which is known as Vestibule Training. Vestibule Training
is a term for near-the-job training, as it offers access to something new (learning). In vestibule
training, the workers are trained in a prototype environment on specific jobs in a special part of
the plant.

An attempt is made to create working condition similar to the actual workshop conditions. After
training workers in such condition, the trained workers may be put on similar jobs in the actual
workshop. This enables the workers to secure training in the best methods to work and to get rid
of initial nervousness.
 Process of
Training

Every company
has a specific
training
procedure,
depending upon
its requirements.
A general training
procedure is as shown in the diagram-:

1. Determining training needs of employee

In the very 1st step of training procedure, the HR department, identifies the number of people
required training, specific area in which they need training, the age group of employee, the level
in organization etc. in some cases the employee may be totally new to the organization. Here the
general introduction training is required.

2. Selecting target group

Based on information collected in step 1 the HR department divides employee into groups based
on the following:

● The area of training

● Level in the organization
● The intensity of training

3. Preparing trainers

Once the employees have been divided into groups, the HR department arranges for trainers.
Trainers can be in house trainers or specialized trainers from outside. The trainers are given details
by HR department, like number of people in group, their age, their level in organization, the result
desired at the end of training etc.

4. Preparing training packages

Based on the information provided by trainers, he prepares entire training schedule i.e. number of
days, number of sessions each day, topics to be handled each day, depth of which the subject
should be covered, the methodology for each session etc.

5. Presentation

On the first day of training program the trainer introduces himself and specifies the need and
objective of the program and then actually starts the program. The performance of each employee
is tracked by the trained and necessary feedback is provided.

6. Performance

At the end of training program, the participants report back to their office or branches. They
prepare report on the entire training program and what they have learned. They the start using
whatever they have learned during their training. Their progress and performance are constantly
tracked and suitable incentives are given.
Advantages and Disadvantages of Training

Following are the advantages of training to the company and employees-:

1. Increase in efficiency of worker

2. Reduced supervision
3. Reduction in wastage
4. Less turnover of labor
5. Training helps new employees
6. Union management relations
7. Promotion
8. High rewards
9. Better career opportunities
10. Increased motivation
11. Group efforts

Few of the disadvantages can be noted as follows-:

1. Once staff is trained, they may leave for better paid jobs.
2. Financial cost of training is high.
3. Work time is lost when staff is being trained.
4. Quality of training must be high to get positive effect
 CHAPTER-2

RESEARCH METHODOLOGY

Research methodology
Research methodology is a way to systematically solve the problem. It may be understood as a
science of studying how research is done scientifically. The present study is on ―TRAINING &
DEVELOPMENT PROGRAMMES AT IDBI Federal Limited. The research was done to find out
whether the company is providing the Training Programs to employees which are useful to set the
goals to achieve their objectives. The following image how the process of conducting a research.
Research Design
A research design is a systematic plan to study a scientific problem. A research design typically
includes how data is to be collected, what instruments will be employed, how the instruments will
be used and the intended means for analyzing data collected.

It is glue that holds all the elements in research project together and is a vital part of the research
study. It is a logical and systematic planning and directing of piece of research and is master plan
and blue print of the entire study.

There are three basic type of research design namely-:

● Explanatory Research- It has the goal of formulating problems more precisely, clarifying
concepts, gathering explanations, gaining insight, eliminating impractical ideas, and
 forming hypotheses. Exploratory research can be performed using a literature search,
surveying certain people about their experiences, focus groups, and case studies.
● Descriptive Research- Descriptive research is used to describe characteristics of a
population or phenomenon being studied. It does not answer questions about
how/when/why the characteristics occurred. Rather it addresses the "what" question. The
characteristics used to describe the situation or populations are usually some kind of
categorical scheme also known as descriptive categories.
● Casual Research- Causal research is conducted in order to identify the extent and nature of
cause-and-effect relationships. Causal research can be conducted in order to assess impacts
of specific changes on existing norms, various processes etc. Experiments are the most
popular primary data collection methods in studies with causal research design.

Descriptive research design method has been used in the project.

Sources of Data

There are two main technique of collecting data namely, Primary Data and Secondary Data.

Primary data includes surveys, questionnaires, experiments, direct observation etc. Secondary data
may be conducted by collecting information from a diverse source of documents or electronically
stored information, census and market studies. This is also known as “data mining”.

In this project the data has been collected from both primary and secondary sources.

Sampling Technique

In statistics, quality assurance, & survey methodology, sampling is concerned with the selection
of a subset of individuals from within a statistical population to estimate characteristics of the
whole population.

People are always interested in population and not in sample and hence to generalize from sample
to population, the sample has to be representative of the population. The safest way to ensure that
it is a representative is to use a Radom selection procedure. In this method all items have some
chance of selection that can be calculated. Random sampling technique ensures that bias is not
introduced regarding who is included in the survey.

Sample size

Sample size is the number of observations used for calculating estimates of a given population.

Sample sizes reduce expenses and time by allowing researchers to estimate information about a
whole population without having to survey each member of the population.

Methods of Data collection

The survey is based on the primary source of data. The questionnaire was qualified and quantified
for the purpose of present research.

Tools And Techniques Of Analysis

In order to do the analysis of the data collected so far I have made pie chart to depict the result
along with that I have also written the interpretation from each pie chart.

Limitation of the study

Data collected is confined to IDBI Bank Ltd. only; the study is limited to Training Programs.

As the Employees are busy with their hectic work, interview was conducted in fragments,
whenever they were free. As a result the string of continuity was lost and this could have affected
their style of answering. It was not possible to collect information from all the employees in the
Organization. Human beings tend to behave artificially particularly and this happens particularly
when they are observed or interviewed. This might have distorted the findings to some extent.
Questionnaire on Impact of Training and Development and
Development on Employee retention in an Organization
Name:-______________________________

1.Age:

a)15-25

b)26-35

c)36-45

d)45 and above

2.Gender:

a)Male

b)Female

c)Other

3.Educational Qualification

a)10+2

b)Graduate

c)Post Graduate

d)Diploma

e)Other
4.Designation of the respondent:________________________

5. Training and development is compulsory for organizational productivity.

a)Strongly Agree

b)Agree

c)Neither agree nor disagree

d)Strongly Disagree

e)Disagree

6. Which training method is more effective in terms of organizational productivity?

a)On the Job

b)Off the Job

c)Both

7. Was the training program helpful in organizational growth?

a)Yes

b)No

c)Neither yes nor no

8. Is training and developmental programmes effective for organization growth?

a)Yes

b)No

c)Neither yes nor no

9. Is there a growth as compared to the investment done on employees?

a)Yes
b)No

c)Neither yes nor no

10. Are recreational activities provided in between Training helpful in terms of Increase in
organizational productivity?

a)Yes

b)No

c)Neither yes nor no

11. How much growth is seen in organization after providing training by trainees?

a)Below 20%

b)20%-40%

c)41%-60%

d)60%-80%

e)Above 80%