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CAREER IN INSURANCE SECTOR
Introduction
In India, the concept of insurance was never a given a serious thought, as
compared to other countries. People still are under insured, life
insurance premia to Gross Domestic Product (GDP) ratio is a mere 1.4% as
compared to a healthier rate of 8% amongst other developing countries. The
reason being lack of awareness and opportunities combined with poor state
of services provided.
Presently in India, the insurance sector is nationalised, services are
rendered by Life Insurance Corporation of India (LIC) and General
Insurance Company (GIC) alongwith its 4 subsidiaries. While LIC provides
life insurance, GIC is concerned with non life insurance like - motor,
marine, fire, health and personal accident insurance. LIC employs people
in various departments - publicity and public relation department,
development department, personnel department, accounts department,
actuarial department, secretrarial department, legal department,
investment department, inspection department, mortagages department,
vigilance department, foreign department, corporate planning department,
building department etc.
Of late, parliament's nod for the Insurance Regulatory and Development
Authority (IRDA) bill has changed the whole scenario. With the passage of
the bill, entry of private indian as well as foreign companies, alongwith
existing players, in the insurance sector will add variety and quality to
the present insurance services. The other positive impact would be on
creation of new employment opportunities. Till now employment in the
insurance sector was considered akin to any government job, but now with
private participation, it will assume significant importance and probably
become an exciting career option.
Nature of Work
The insurance corporation performs various tasks with each department
having its own set of responsibilities. The various posts and their
specific jobs are mentioned hereupon.
ADMINISTRATIVE OFFICER AND ASSISTANT ADMINISTRATIVE OFFICER:
Administrative Officer (AO) and Assistant Administrative Officer (AAO)
belong to the class I officer group. The job begins with the candidates
joining LIC and GIC on a probation-cum-training period of 6 months. This
is to provide exposure about the working of insurance sector. AAOs can
choose any of the areas from Administration, Develpoment and Accounts. In
Administration AAOs handle policy making, policy claims upto cetain limit,
checking clauses and details, filing official returns and statements to
higher regional offices etc. The Development AAOs deal with marketing and
procurement of business, promoting policies, getting contracts etc. The
Accounts AAOs manage the funds including incomes and expenses of the
corporation. After 3 years of working as AAOs they can be promoted to AOs.
This adds on more powers and authority and they can be posted anywhere in
India.
Candidates applying for the post of AAOs should be between 21 and 28 years
of age. They should hold a graduate/postgraduate degree in any subject
with minimum of 50% marks. Recruitment is done by LIC Central Office at
Mumbai. The entrance examination has two papers, one is of objective type
and the other is of essay type - test of English. The objective type
paper, tests intelligence and quickness of response. For the quantitative
aptitude test good mathematical knowledge is essential. Logical reasoning,
general knowledge, awareness of political, cultural events and happening
are also tested. After the written test, selected candidates have to
appear for inteviews which are conducted by the Board and are held across
the country.
DEVELOPMENT OFFICER: The Development Officer belongs to class II
officer group. They are incharge of their territory for the development of
the insurance policies. They handle recruitment of agents, train them for
procurement of new business and servicing of the existing policies. Over a
period of time Agents recruited by the Development Officers can also rise
to the position of the Development Officer.
Recruitment process of Development Officers is handled by the Divisional
Office. Candidates applying for the post of Development Officer have to be
between 21 and 26 years of age and should be graduates. Eligible
candidates are then put through written tests in English and mathematics.
On clearing the test, they qualify for the interview which is conducted by
the Board. Later on selected candidates have to serve as Apprentice for a
period of one year. This is impotant to impart practical training in
various areas.
OTHER JOBS: Apart from the class I and II level, there are other
posts such as Assistants, Typists, Machine Operators, Stenographer,
Telephone Operators, Clerks etc. This group comes in the class III level
category. They are recruited by the Divisional Office. The candidates
applying for these posts have to go through a written test and an
interview. There are reservations in the jobs for Handicapped persons,
SC/ST, ex-servicemen. The age requirement for these posts is between 18 to
25 years.
Apart from people directly working in the insurance companies, there are
other categories of people related to the insurance sector. These include
the following.
INSURANCE AGENTS: An insurance agent is a person who takes up agency
from the insurance company to sell their policy on a commission basis. He
acts as an intermediary between the insurance company and the policy
holder. But before doing so, he has to undergo training and get a
certificate of proficiency from the insurance company.
Mostly insurance policies are bought through agents. Agents help
individuals and companies in selecting the right policy for their needs.
They plan for the financial security of individuals, families and
businesses and advise them about insurance protection. They also help the
policy holders at the time of settlement of the claim. The job of agents
is quite challenging as selling a product like insurance policy is not
easy. For being successful, agents should be outgoing and social. They
should have a knack of convincing people.
Recruitment of agents is done by the Corporation after a written test and
an interview followed by a training period of 3 years. Graduates in the
age group of 21 to 35 years are preferred.
INSURANCE SURVEYORS: Insurance surveyors are qualified professionals
deputed for the assessment of losses, according to their qualification and
experience. They play an important role as they serve a link between the
insurer and the insured. Their job is to assess the actual loss and avoid
false claims filed by the insured and on the other hand help the insured
who has suffered a genuine loss by indemnification of the loss. They act
as investigators, assessers for determining the loss and liability to be
reported to the insurance company. The work is not always delighting as it
often involves a lot of hardwork and travelling at awkward times.
Surveyors are not employees of the insurance companies. They are
independent professionals who are hired by the insurance companies. To
hold a license of a surveyor, one must possess any one of the following
qualifications.
Fellowship or Associateship of the Institute of Insurance Surveyors and
Adjustors (IISA), Mumbai.
A Degree or Diploma in Architecture of a Recognised University or
Institute.
Fellowship or Associateship of the Institute of Chartered accountants or
Cost and Works Accountants.
A Degree or Diploma of a Recognised Institute of Engineering.
A Degree or Diploma in Naval Architecture.
Career Prospects
Around 1 lakh people are believed to be working in LIC in various
departments. Apart from career opportunities available with LIC and GIC,
employment avenues are also open in corporate sector, stock broking firms,
finance companies, shipping companies etc. Now it's just a matter of time
before a number and variety of other employment opportunities open up,
with the insurance sector welcoming private participation. This will lead
to competition and create a totally different work environment. The
various areas which are likely to absorb people include the following.
ACTUARIAL: An actuary holds one of the most important position in
an insurance business. He is involved in solving wide range of financial
problems related with insurance investments, financial planning and
management. Graduates in maths or satistics are suited for this kind of a
job because the work is based on mathematical and statistical skills. In
the coming times it will definitely make one of the highly paid career
option in the insurance sector. Entry level salary is expected to be
somewhere around Rs. 8 lakh p.a.
UNDERWRITING: The life and non-life insurance segments require
professional underwriters. Underwriters assess the risk in the business
and takes care of risk management. Normally foreign insurers prefer people
with medical or life science background for this job and the same is
likely to happen here. Entry level salary can be expected to be around 6
lakh p.a.
MARKETING AND DISTRIBUTION: Marketing insurance product is not easy
at all. It is like marketing any other financial product, which requires a
push. Marketing therefore would require specialization. Degree holders
from reputed institutes and those with experience in marketing and finance
fields can anticipate bright opportunuties in the insurance sector. Even
the role of agents will witness a radical change, they will moreover serve
as financial consultants, who will offer a complete range of insurance
solutions.
OPERATIONS: The insurance sector will be requiring Infotech
professionals for elaborate databases, network solutions and for in house
packages etc. Like other sectors, demand for database and software
professionals is expected to grow in the insurance sector as well.
INVESTMENT: Like banks and mutual funds, investment professionals
will be required in insurance sector as well. Professionals with degree in
finance from reputed institutes as well as experienced professionals from
banks and mutual funds will have promising career options to look forward
to.
INSURANCE COLLEGES IN INDIA
COMPARATIVE CHART
OF INSTITUTES
| NAME, ADDRESSES & PHONE NO. OF
INSTITUTES |
COURSES |
DURATION |
FEES |
ELIGIBILITY |
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