UNIVERSITY OF LUCKNOW

FACULTY OF MANAGEMENT STUDIES

DEPARTMENT OF MANAGEMENT

SESSION: 2024 – 2026

PRESENTS-

HRM Practices in Life Insurance Corporation of India

Submitted by: MBA (SEM-02) Submitted to:

Preeti- 2410019025341 Dr. Ram Singh
Aditi Dubey- 2410019025339 Assistant Professor
Anusha Shankar- 2410019025427 DOM, FMS
Manish Singh- 2410019025564 University of Lucknow
 ACKNOWLEDGEMENT

We are sincerely grateful to Dr. Ram Singh, our Human Resource Management professor, for
his invaluable guidance, encouragement, and constructive feedback throughout this assignment.
His support helped us better understand the practical dimensions of HRM beyond the classroom.

We extend our heartfelt thanks to Mr. Suraj Kumar Pandey, Development Officer at Life
Insurance Corporation of India (LIC), Satellite Office, Ameenabad, for taking the time to speak
with us and sharing valuable insights into LIC’s HRM practices. His input was instrumental in
shaping this report.

We also appreciate the cooperation of the LIC staff and the collective effort of our group
members, whose teamwork and dedication made this assignment a success.

Group Members:

1. Preeti
2. Aditi Dubey
3. Anusha Shankar
4. Manish Singh

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 INDEX

S. No. Contents Page No.

1. Introduction 3

2. Recruitment Process 4

3. Selection Process 5

4. Training & Development 6

5. Performance Appraisal 8

6. Compensation & Benefits 10

7. Conclusion 12

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Introduction

The Life Insurance Corporation of India (LIC), founded in 1956, is not just India's largest life
insurance provider but also one of the most trusted financial institutions in the country. Being a
government-owned organization, LIC has built a strong presence across every corner of India,
serving millions of policyholders through a wide network of branches and dedicated agents.

As a people-driven organization, LIC depends heavily on its human resources—not only for
reaching new customers but also for maintaining long-term relationships with them. The role of
employees, especially agents, is central to LIC’s growth and reputation. This is why effective
Human Resource Management (HRM) is vital for LIC’s success.

In this assignment, we explored how LIC manages its workforce through key HRM functions
like recruitment, selection, training and development, performance appraisal, and compensation
systems. To understand these practices from a practical perspective, we visited LIC’s Satellite
Office in Ameenabad and had an insightful conversation with Mr. Suraj Kumar Pandey, a
Development Officer. His experiences and insights helped us connect classroom learning with
real-life HR practices at LIC.

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Recruitment Process

Recruitment is one of the most important HR functions at LIC, as it helps bring in the right
people who can carry forward the organization’s values and goals. LIC recruits individuals for
both full-time officer roles and agent-based roles, each with a distinct process.

 Officer Recruitment

For officer-level positions like Assistant Administrative Officer (AAO) and Apprentice
Development Officer (ADO), LIC follows a centralized and transparent recruitment system.
Here’s how it works:

 Job openings are announced through official notifications on the LIC website, in
employment newspapers, and on reputed job portals.
 The selection process includes a national-level written exam followed by a personal
interview.
 The written test typically includes objective and descriptive questions, assessing
candidates on areas such as reasoning ability, general awareness, and domain knowledge.

 Agent Recruitment

The recruitment of LIC agents is more localized and community-driven. LIC agents form the
backbone of the organization, serving as the face of LIC in their respective areas.

 Word-of-mouth referrals and local networking play a big role.

 LIC runs special initiatives like the Mahila Career Agent Program, which empowers
women by offering them flexible career opportunities and financial independence.
 Candidates with strong interpersonal skills, entrepreneurial drive, and the ability to
connect with people are highly preferred.

LIC Agent Job Profile

 They sell life insurance, pension plans, health policies, and endowment schemes.
 They help customers with financial planning and offer guidance on tax-saving
investments.

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Selection Process

LIC hires both officers and agents; the selection procedure differs depending on the position.

 Selection of Officers

For officer-level posts like Assistant Administrative Officer (AAO) and Apprentice
Development Officer (ADO), LIC follows a formal and merit-based selection process:

1. Written Examinations: Candidates must appear for a national-level competitive exam—

usually in two phases:
o Preliminary Exam: Objective test covering reasoning ability, quantitative aptitude,
and English language.
o Main Exam: Includes reasoning, general awareness, insurance & financial
knowledge, and professional knowledge (especially for specialist roles).
2. Interview and Document Verification: Shortlisted candidates are invited for a personal
interview, followed by verification of documents like educational certificates, ID proofs,
etc.
3. Medical Examination: As the final step, selected candidates go through a medical
fitness test before receiving their appointment letter.

 Selection of Agents

1. Initial Screening & Interview: Conducted by the Development Officer, this stage
evaluates the candidate’s communication skills, confidence, and influence within their
community.
2. Training Enrollment: If the candidate is found suitable, they are enrolled in a structured
17–18 day training program. This training not only covers LIC’s products and selling
techniques but also prepares them for the next stage.
3. Licensing Exam (IRDAI): After completing the training, candidates must clear the
IRDAI Licensing Exam (conducted by the Insurance Regulatory and Development
Authority of India). Passing this exam is mandatory to become a certified insurance
agent.

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Training & Development

At LIC, training is not just a one-time process—it’s a lifelong journey of learning and growth.
Whether it’s a newly recruited agent or a long-serving officer, everyone receives opportunities to
enhance their skills, stay updated with industry trends, and serve customers more effectively.
LIC believes that well-trained employees and agents are the key to delivering trust, service, and
satisfaction to millions of policyholders.

 Agent Training

LIC places a strong emphasis on hands-on, real-world training for its agents. As shared by Mr.
Suraj Kumar Pandey, agents receive comprehensive support right from the beginning:

1. Initial Training (IRDAI-Mandated)

This is a 17–18 day classroom program that every aspiring agent must complete. It
covers:
o Knowledge of LIC’s various insurance products
o Ethical selling practices
o Communication techniques
o Relationship-building with customers
2. Practical Learning
LIC doesn’t believe in just theory. During training, agents participate in real appointment
settings with potential clients to get a firsthand feel of the job. This makes them confident
from day one.
3. Man-to-Man Mentoring
A unique feature at LIC, especially at local branches like Ameenabad, is personalized
guidance by Development Officers. Mr. Pandey and his peers act as mentors, helping
new agents:
o Tackle customer objections
o Close sales
o Build long-term client relationships
o Stay motivated and focused
4. Training at Different Location
LIC agents are also sent to training centers in other cities to attend development programs

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 and workshops. This exposure helps them learn new techniques, meet peers from other
regions, and broaden their perspectives.
5. Ongoing Skill Development
Agents are continuously trained in:
o Digital sales tools, mobile applications, and online servicing
o Soft skills like negotiation, empathy, and financial planning advice

 Officer & Employee Training

Training for LIC’s officers and staff is equally structured and dynamic:

1. Workshops and Seminars:

Regular sessions are organized on:
o Leadership and management skills
o Compliance and ethical practices
o Risk management and technology updates
2. E-Learning Modules:
In line with modern HR practices, LIC offers online training modules so that employees
can learn at their own pace, anytime and anywhere.
3. Job Rotation Programs:
Employees are sometimes rotated through different departments or roles. This helps
them:
o Gain a holistic view of LIC’s operations
o Build new skills and confidence
o Prepare for higher responsibilities and promotions

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Performance Appraisal

Performance appraisal at LIC is more than just measuring results—it's about recognizing effort,
encouraging excellence, and helping individuals grow in their careers. Whether it's agents
working in the field or officers managing operations, everyone is regularly evaluated to ensure
quality service and personal development.

 Agent Performance Evaluation

LIC agents are at the frontline, interacting with customers daily. Their performance is assessed
using clear and practical criteria:

1. Number and Value of Policies Sold:

The most direct measure of success—how many policies the agent sells and the total
premium value.
2. Policy Renewal and Retention Rates:
An agent's job doesn't end with selling a policy. Ensuring clients renew their policies
shows trust and strong relationship management.
3. Customer Feedback and Service Quality:
LIC values what clients say. Positive feedback and smooth claim servicing reflect well on
the agent’s dedication and professionalism.

Recognition and Motivation

To keep agents motivated, LIC offers several rewards and recognitions, which Mr. Suraj Pandey
emphasized as a big driver of performance:

1. Exclusive Club Memberships:

High-performing agents can qualify for prestigious clubs like:
o Chairman’s Club
o Corporate Club
o Million Dollar Round Table (MDRT) – a globally recognized symbol of
excellence in insurance selling

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 2. Incentives and International Travel:
Membership in these clubs brings not only respect but also financial bonuses and
opportunities to attend seminars at international destinations.
3. Competitions and Awards:
LIC runs regular contests to keep the energy high and promote healthy competition
among agents.

 Officer Appraisal System

For officers, LIC follows a more formal, structured appraisal system:

1. Annual Confidential Reports (ACRs)

These are detailed reports filled by supervisors, evaluating the employee’s work ethic,
punctuality, leadership, and conduct.
2. Quantitative Targets
Employees are expected to meet certain targets related to operations, recruitment (in the
case of Development Officers), or customer servicing.
3. Feedback and Service Audits
Inputs from customer service audits and feedback from higher management are also
considered during appraisal.
4. Career Growth Based on Merit
Promotions and salary increments are given based on consistent high performance,
integrity, and contribution to the organization.

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Compensation & Benefits

At LIC, compensation is more than just a paycheck—it’s a way to appreciate people for their
efforts and ensure they feel secure, respected, and motivated. Whether it’s an agent building
relationships in the field or an officer handling key operations, LIC offers a balanced mix of
financial rewards and emotional satisfaction.

 For Agents

LIC agents may not be full-time salaried employees, but their earning potential is significant.
Their income depends on how actively and smartly they work—and LIC makes sure hard work
pays off.

1. Commission-Based Income
Agents earn a commission on every policy they sell. The more they sell, the more they
earn. This model promotes independence and entrepreneurial spirit.
2. Bonuses and Incentives
Based on sales targets and renewal rates, agents can earn attractive bonuses. These serve
as great motivators and boost their overall earnings.
3. Contests and Rewards
LIC organizes regular contests where top-performing agents win trophies, travel
packages (both domestic and international), cash prizes, and public recognition. It builds
excitement and a sense of achievement.
4. Career Growth Opportunities
Successful agents aren’t limited to field work. They can climb the ladder and become
Development Officers, managing and mentoring their own team of agents.
5. Emotional Benefits
LIC also ensures agents feel respected and part of the LIC family. Many agents,
especially those under schemes like the Mahila Career Agent program, find a sense of
purpose, flexibility, and empowerment in their roles.

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  For Officers and Staff

For full-time officers and staff, LIC follows the structured compensation model of a central
government public sector undertaking, which ensures both stability and fairness.

1. Basic Pay + Allowances

Employees receive salaries as per government pay scales, along with dearness allowance
(DA), house rent allowance (HRA), and city compensatory allowance (CCA), depending
on location.
2. Performance-Based Incentives
Hard work and efficiency don’t go unnoticed—staff may receive annual performance
bonuses and recognition.
3. Pension and Retirement Benefits
One of the biggest plus points of working at LIC is retirement security. Pensions,
gratuity, and provident funds ensure employees are taken care of even after they retire.
4. Staff Quarters and Soft Loans
Many employees are eligible for housing in LIC quarters, and LIC also offers low-
interest loans for personal needs like housing, education, and vehicles.
5. Medical and Family Benefits
Comprehensive health insurance, reimbursement of medical expenses, and insurance for
family members give peace of mind.
6. Leave and Holidays
Paid leaves, maternity and paternity leave, medical leave, and a good number of public
holidays help maintain a healthy work-life balance.

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Conclusion

Our visit to LIC’s Ameenabad office and interview with Mr. Suraj Kumar Pandey provided
valuable insights into how LIC effectively manages its human resources. The recruitment and
selection processes are tailored to attract diverse talent, from officers to entrepreneurial agents.
Training is comprehensive, performance is clearly measured and rewarded, and compensation
systems are designed to motivate and retain employees. Overall, LIC’s HRM practices
successfully combine structure, flexibility, and personal growth, creating a supportive and
dynamic work environment.

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