The Sunrise Career Option

Gauri Chhabra

Of all commodities and services, that the entire world is out to sell, Insurance is perhaps the most tedious and paradoxical; hence involves exorbitant amount of patience and perseverance. It is often said”A man who can sell insurance can sell anything and everything”. India, the concept of insurance was never given a serious thought, as compared to other countries is still in a nascent state and career in insurance still considered a tight rope walk

However, it is time we shelved these myths and looked at career in insurance with a fresher and newer perspective. It is a new sunrise career option, with people becoming increasingly conscious of its importance and insurance being looked at a both as a risk covering and as an investment tool.

Presently in India, the insurance sector is nationalised, services are rendered by Life Insurance Corporation of India (LIC) and General Insurance Company (GIC) along with 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, accounts, actuarial , secretarial , legal, investment, mortgages, vigilance, foreign , corporate planning and the like.

Paradigm Shift:

The 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, along with existing players, in the insurance sector has added variety and quality to the present insurance services. The twin impact has been on creation of new employment opportunities making it an exciting career option.

Career Cursor:

Insurance as career offers the following diverse off shoots to choose from:

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, Development and Accounts. In Administration AAOs handle policy making, policy claims up to certain limit, checking clauses and details, filing official returns and statements to higher regional offices etc.

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 former tests intelligence and quickness of response through sections like the quantitative aptitude, Logical reasoning, general knowledge, awareness of political, cultural events. After the written test, selected candidates have to appear for interviews which are conducted by the Board and are held across the country.

In the class II officer group come the Development Officers who are in charge 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. 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 important to impart practical training in various areas.

In Class III come the typists, Machine Operators, Stenographer, Telephone Operators, and clerks. 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.

Besides, you can also make your career as an insurance agent 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. Selling and marketing insurance is complete hard sell, an MBA with specialisation in Marketing and Insurance is a good option.

An independent arm that is not a part of insurance companies is of Insurance Surveyors who are 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 assessors for determining the loss and liability to be reported to the insurance company.

To hold a license of a surveyor, one must possess any one of the following qualifications.

* Fellowship or Associate ship of the Institute of Insurance Surveyors and Adjustors (IISA), Mumbai.

* A Degree or Diploma in Architecture of a Recognised University or Institute.

* Fellowship 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.

The most important and lucrative position in an insurance business is that of an Actuary. He is involved in solving wide range of financial problems related with insurance investments, financial planning and management. The actuary basically is a mathematician, statistician, who works out the premium rates, the product design, and decides on the solvency margin of insurance companies. We have an Actuarial Society of India in Bombay which conducts these professional examinations. Entry level salary is expected to be somewhere around Rs. 8 lakh p.a.

The life and non-life insurance segments require professional Underwriters who assess the risk in the business and take 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.

Course Cursor:

The institutes that offer specialized training and courses in the areas of insurance and reinsurance are Insurance Institute of India,National Insurance Academy, Pune and Actuarial Society of India, Mumbai. Besides, certain universities and colleges also offer courses in the field of insurance and actuarial sciences which are much in demand.

Ensuring Success:

With Globalization and a plethora of financial products and services wrapped before the modern consumer, career in insurance has become a specialised one and one of the surest way of ensuring success. So, if you want to take up a career that is a blend of a science and an art, pick up insurance from the financial bandwagon and ensure your way to success.