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TRAINING, RESEARCH
AND DEVELOPMENT POLICY

The New India Assurance Company Ltd.

FOREWORD

The booklet containing Training, Research and Development Policy emerging

out of a process of consultation across the industry with the basic framework of
this Policy evolved from the Workshop on Management of Training organised at
the National Insurance Academy on 10th, 11th and 12th January 1991 and
subsequently at the meeting of the Personnel Heads of the Subsidiaries on 14th
February, 1991. These were fine tuned during discussions at the meeting of Inter-
Company Co-Ordination Committee held on 14th March 1991.

The resources spent on training and development are an integral part of our
investment in human resources. Training should relate to the operational and
conceptual needs of an organisation and contribute to its objectives. In
implementing the policy, efforts will have to be made to measure the
effectiveness of our training activities. The HRD Department would refine the
system of evaluation of training effectiveness, with the help of National
Insurance Academy and other organisations in the field.

TRAINING, RESEARCH AND DEVELOPMENT POLICY

1. Preamble:

General Insurance is a service industry; its key resource is competent and

efficient manpower with a right attitude. The industry has been placing
considerable stress on imparting effective and continual training to its
employees, particularly after its nationalisation in 1973. We should
continue to help our employees, in a planned and systematic manner, to
acquire and sharpen capabilities required to perform various functions
associated with their present expected future roles and also to develop
their general capabilities and inner potentials. It is our intention to develop
a strong organisational culture characterised by discipline, team-work,
collaborative practices, supportive and synergic superior-subordinate
relationship, professional ethics, concern for customers, sense of
belonging and a feeling of well-being on the part of al sections of
employees. A clearly laid-down Training policy, therefore, becomes
essential to give proper direction at all levels to achieve this mission.

The need to expand training activities in an orderly manner has,

therefore, become, accentuated in the context of:

i. Changing Insurance market, new legislative measures, consumer

protection, movement, globalisation of markets, environmental
issues, advances in Computer technology, competition from
unexpected sources, internal and external pressures faced by the
industry.

ii. Steady expansion of General Insurance Business by way of

opening of large number of administrative and operating units, viz.
Regional Offices, Divisional Offices and Branch Offices, resulting in
considerable growth of manpower in the industry.

iii. Introduction of non-conventional types of Insurance covers to suit

the growing demands of Personal Insurance Business and in
Industrial, Commercial, Agricultural sectors of the Indian Economy.

iv. Designing and marketing of new insurance covers for the benefit of
economically weaker sections of the Society both in rural and urban
areas.

v. Developing a reinsurance market in India and formulating products

to meet the requirements of technology changes in the context of
the emerging mega-risks in the Indian scene.
 vi. Improving the quality of service with Professional approach aiming
at creative customer satisfaction management.

vii. Developing and enhancing versatality in the capabilities of

individuals to achieve improved effectiveness in handling inter-
functional/ multi-dimensional jobs.

viii. Evolving a culture of business and participate management leading

to an institutional approach rather than an individualistic approach.

It is, therefore, considered necessary to adopt a goal-oriented training

policy with a view to developing human resources with adequate
knowledge, attitude, sharpened skills and habits leading to effective
professional approach and increased customer satisfaction and to relate it
to the business needs of the general insurance industry.

2. OBJECTIVES OF TRAINING:

1. To create constant awareness in the minds of all sections of

employees of the mission of the industry, its objective and goals.

2. To encourage self-development to achieve organisation goals with

a sense of belonging and commitment to organisation and thereby
ensuring development of a proper work ethos in the Industry and
fostering of team spirit.

3. To identify the training needs of the entire Personnel in Industry in

keeping with the Corporate Plans and in consultation with the user
departments.

4. To impart knowledge and skills necessary for performing the job

efficiently and effectively and to keep the employees to acquire
 necessary conceptual, technical, human and managerial skills in
the areas of decision-making and problem-solving.

5. To make available in adequate number sufficiently trained

manpower to meet the diverse needs of a rapidly growing industry.

6. To provide the Agents, Marketing Agents, Rural Representatives,

etc. with the required knowledge, skills, attitudes and habits for
improving their marketing ability and better customer service.

7. To organise special training programmes to improve employment

opportunities as well as career prospects of persons belonging to
SC/ST, minorities, handicapped, ex-servicemen, etc.

8. To organise training activities as aids to :

a. Career Planning and growth

b. Succession planning.

9. To educate and equip the employees to respond to the

expectations of customers, and to accept responsibilities to attain a
sense of achievement.

10. To achieve effectiveness of training through tapping the in-house

training facilities as well as sources available externally in a
balanced manner so as to develop internal faculty support at all
levels and disciplines.
 2.11 To promote research and development activities and to
establish linkages with the operational front.

3. PLACE OF TRAINING IN THE ORGANISATION:

Training as an important mechanism of HRD intervention becomes

effective only with the involvement, initiative and cooperation of top
management and operational managers at all levels. Therefore:

1. Corporate Management will give paramount importance to training

and will demonstrate its commitment thereto by using it as a tool for
career planning growth and placement.

2. It expects employees at all levels to display sincerity and

seriousness of purpose and view training as contributing to self-
development and career growth.

3. It will be the endeavour of Corporate Management to spare the best

available talents to function as faculty.

4. Ample opportunities will be given to employees for application and

utilisation of their knowledge acquired through the process of
training by proper placement.

4. STRATEGIES:

1. Training should contribute to business objectives at three levels,

both in the present context as well as future:

a) at the level of Corporate Objectives.

b. at the level of Operational units objectives and

 c. at the level of required skills, knowledge, attitude and
motivation of the individual employees. Strategies to be
adopted to achieve this will vary with each category of
employee. For this purpose, employees shall be broadly
grouped asunder:

A. Senior Management Personnel such as General

Managers and Assistant General Managers.

B. Middle Management consisting of Managers;

C. Lower Management comprising other cadre of

Officers and

D. Development Staff, agents, Administrative Staff and

Subordinate Staff.

In Annexure I, job requirement and training needs of different categories of

employees and the means to fulfill them are indicated in a tabular form. It will be
reviewed periodically and updated as and when necessary.

4.2 FREQUENCY OF TRAINING:

a. Generally all employees shall be exposed to training once every 3

years, except as stated otherwise in Annexure-I.

b. All new entrants including Agents should be imparted induction

training.
 c. All promotees shall also similarly undergo induction/ orientation
training.

d. Refresher courses shall be need-based and shall be imparted at

specific intervals.

e. Every Officer, who is appointed as Branch, Divisional or Regional

Manager for the first time, should undergo an orientation
programme to help the person understand the demands of his/her
new role. This will also apply to persons who are appointed as
Heads of Departments in all offices.

f. Special programmes shall also be run depending upon the specific

requirements of a particular level or group.

5. TRAINING ADVISORY COUNCILS:

In order to establish appropriate linkage between training efforts and the

needs of the operating/user departments. And to keep pace with the
changing market and insurance industry council will regularly sit to finalise
the needs of training. They are to closely monitor the activities of other
public and private sector insurance companies, brokers, surveyors, third
party administrators, actuaries etc.

6. RESEARCH EFFORTS:

Research and Training are mutually supportive activities and training

institutions act as Centres for ideation and clearing houses for new
approaches and initiatives. Market research to ascertain consumer
needs, preferences, responses to products etc. is a priority area.
Formulation of new products and innovative covers, simplification of
procedures, and documents is another priority area. It is expected that the
National Insurance Academy and the Training Colleges of the
 Subsidiaries will act as resource Centres in guiding research activity in
close co-ordination with the operating Offices.

7. Administrative guidelines on Training, Research and Development

Policy are given in Annexure-II.

ANNEXURE-II

ADMINISTRATIVE GUIDELINES ON TRAINING, RESEARCH

AND DEVELOPMENT POLICY

1. TRAINING ADVISORY COUNCIL:

1. Company’s ‘Training Advisory Council’ will oversee, direct, review

and guide the training activity of the Company and will act as a
link between the training activity and the needs of the user
departments. It will advise the Training/HRD Department of the
Company in identification of training needs, training methodology,
training objectives, curriculum, training calendar, standardisation
of courses, participants profile, faculty profile, teaching aids, etc. It
will also advise the Training/HRD Department on general principles
regarding nomination of employees to attend courses conducted
by outside institutions. It will periodically review the activities of
A.T.Cs ( previously there was DTC as Development Training
Centre, for Development Officers, which were closed after two
rounds of training to almost all of them ) and R.T.Cs and the
Corporate Training Centre. It will review training expenditure
budget of the Company and also training performance budget of
the ATCs, RTCs and the Corporate Training Centre. It will report to
the Board on training activities of the Company every quarter.

2. The membership of training Advisory Council would be as under: -

1. All GMs of the Company.

 2. Two AGMs – in – charge of Departments at H.O. including
that of HRM Dept.

3. Principal of the Corporate Training College.

4. One Faculty Member, NIA

The CMD of the company will preside over the Training Advisory
Council, which will meet at least once in a quarter. AGM (HRD) of
the Company will function as a Member-Secretary.

2. STRUCTURE OF TRAINING CENTRES:

Each Company shall have 4 types of training centres, viz. Corporate

Training College, Zonal Training , Regional Training Centre. and
Regional Training Centre.

1.Corporate Training College:

a. Located at the headquarters of the Companies.

b) Physical facilities: i) Lecture Halls to

accommodate 40 to 60 Trainees each
fully equipped with modern instructional
and learning aids. At any point of time
the College should be able to run at
least 2 parallel sessions preferably with
25 to 30 participants per class.

ii) Adequate number of “Syndicate

Rooms” suitable for group discussions
should be provided in the Training
College.
 iii) Adequate Board and lodging facilities
for trainees.

iv) Library with adequate space for

reading and writing activities and
facilities for research.

v. Adequate number of PC’s/

Computer Units for training/
research purposes.
vi. Recreation facilities.

vii) Residential accommodation for the

Principal, Faculty Members and other
Officers.

viii) Adequate telephone, telex/ fax

facilities to be provided.

ix) Adequate staff support.

c) Trainees : AAOs to Managers

d) Faculty : Principal in the cadre of

Manager and a minimum of 5 Faculty
Members preferably in the rank of
AMs/Dy. Managers or as per need to be
decided by the Company concerned.

2.Zonal Training Centres:

a. Zonal Training Centres shall be set up on Metropolitan zone basis.

b. Location : At places preferably where Companies do not have their

Regional Headquarters, and/or Corporate Training Centre.

c. Physical Facilities:
 i. Two Lecture Halls to accommodate upto 40 trainees each
fully equipped with modern instructional and learning aids.

ii. Adequate board and lodging facilities for the trainees.

iii. Library with adequate space for reading and writing

activities.

iv. Recreation facilities.

d) Trainees : Officers or other staff on specialized

topics like Engineers, Doctors, Chartered Accountants
and IT specialists.

e) Faculty : Principal in the rank of Dy. Manager and

3 Faculty Members in the cadre of A.M.s or A.O.s

f) Administrative: Adequate administrative support.

staff

4,Regional Training Centres:

a) Location At the Regional Headquarters for

clearing the present backlog in training of the
Supervisory, Clerical , Subordinate Staff and agents.
Once the backlog is cleared, plans for refresher
Courses for this target group in the RTC should be
examined and RTCs be set up according to the need
at selected Regional Centres only on a permanent
and long term basis.

b) Physical facilities:

i. One or Two Lecture Halls with a seating capacity for about 40

trainees per class.
 ii. Adequate board and lodging facilities for the trainees.

(c) Trainees: All cadres of staff and agents. Customers may also be
called for special programmes.

(d) Faculty: Principal in the cadre of Assistant

Manager and 2 Faculty members in the Cadre of A.O.
or A.A.O.

(e) Administrative staff: Adequate administrative

support.

4.Agents Training center

a) Location At.

b) Physical facilities:

One Lecture Hall with a seating capacity for about 40 trainees per class.

(c) Trainees: All types of agents.

(d) Faculty: Principal in the cadre of AAO to AM and 1

Faculty members in the Cadre of A.O. or A.A.O.

(e) Administrative staff: Adequate administrative

support as per the requirements.

3. All Principals and Faculty Members posted in the Corporate Training

College , Zonal ,and Regional Training Centres may be treated as ex-
parte.

i. Training Activity as a whole should be functionally responsible to

the Corporate HRD Department. The Corporate HRD Dept. shall
formulate training plans and strategies in close consultation with
the prinical for Corporate Training Colleges, and with respective
Regional-in Charges for RTCs and ATCs..
 ii. Corporate Training College should be treated as a separate Cost
Centre and Accounting Unit.

iii. Other subsidiary facilities/utilities like retaining the services of

Doctor at the Training College/Centre etc. is left to the discretion of
the CMD of the Company.

6. Corporate Training College should have a Resident Superintendent of

the rank of A.M. to oversee the training establishment and also function
as the Warden of the hostel. Similar provision should be made in
Development Training Centres and Regional Training Centres.

7. Reporting: The Principal of the Corporate Training College will report

to the AGM of HRD Department in the Head Office.. The Principal of the
ZTC, RTC and ATCs will report to the Regional Manager/ AGM of the
concerned region of canter’s location.

8. Selection of Participants and post-training placement:

The effectiveness of any training programme is enhanced if homogeneity

amongst the participants can be ensured. It is necessary for the Training
Centres and the National Insurance Academy to draw up a profile of the
participants and circulate ti along with respective programme calendars.
The HRD Departments would refer to the Personnel data forms, the
Confidential Reports and the placement/promotion possibilities of a
particular participant to decide on the nominations of such a person for a
given programme.

9. Course Content – Guidelines:

Detailed course materials for various training programmes shall be

prepared by the respective Colleges/Centres. They shall ensure that
course materials are prepared giving weightage to the four significant
aspects viz. knowledge, attitude, skills and habits. They shall also ensure
that course material make adequate provision for analysis of practical
situations rather than reproduction of theory.

10. Instructional and learning methods:

 In order to make learning effective the trainer shall allow adequate time for
discussions, question-answer sessions, role playing, case studies, etc., in
addition to the lectures. Considering that the trainees are adults, the
orientation should be more of participative learning rather than teacher-
inducted learning. All modern aids shall be used for imparting training.

11. Organisation at H.O.

Each Company shall have an Assistant General manager to be in charge

of HRD/Training. His/Her function shall be to ensure implementation of
the Training Policy by monitoring the working of Corporate Training
College , Zonal Training Centres , Regional Training Centres,and Agents
Training Centres optimum utilisation of training capacity, suggesting
external courses, preparing training plan for the year and supervising its
implementation. He will report to GM to CMD.

12. Faculty:

1. Proper selection shall be made of the Faculty after interviewing

candidates and assessing their flair and interest in teaching.
Weightage shall be given to insurance, management and other
professional qualifications. Posting shall be for a period of about
three years. In the selection process of a faculty the principal of the
Corporate Training College should be associated.

2. With a view to supplement the efforts of full time faculty at the CTC,
RTCs and DTCs and also to reduce pressure on part time in-house
faculty, who are generally very busy with their departmental work, it
is suggested that services of local persons who have retired from
the employment of general insurance industry in the cadre of Dy.
Manager and above may be used as and when required for
handling subjects in which they have a specialisation.

3. In order to ensure that the faculty has an up-to-date feel of the

happenings in the operations of the Company, it is desirable that
the Principal of the Corporate Training College and Faculty be
invited at different levels during business plan formulations/Review
Meetings like those of Regional Managers and DMs, etc.
13. Evaluation of Training programmes:

In addition to the formal/informal evaluation done at the end of training

programme attempts shall be made to evolve suitable criteria to evaluate
the transfer of knowledge acquisition of skills or even changes in attitudes.
Attempts shall also be made to install over a period of time a system of
post-training performance, and evaluation to examine how far the
training imparted was useful in improving the participants work
performance. (Refer Annexure-I)

14. Administrative control of Accounts/Salary:

a. CTC’s should be controlled by AGM (HRD/Training), H.O.

(b) ZTC, RTC and ATCs should be controlled by ROs

15. BUDGET

The annual budget for all the training activity of the Company shall be
prepared in advance and the same shall be subject to periodical review.