3939528 SIP Project on Max Newyork Life

8/8/2019 3939528 SIP Project on Max Newyork Life

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A PROJECT REPORT ON

Potential of Life Insurance Industry

in AGRA

By KAPIL AGARWAL(PGPM/07-09/18)

ASBM

Max New York Life Insurance

Company Ltd.

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A PROJECT REPORT ON

Potential of Life Insurance Industry in

Agra

The study was conducted from 18

th

of may 09 to of 15

th

of june 09

At

Max New York Insurance Company Ltd.,Agra.

Submitted by: Submitted by:

Kapil Agarwal

(08mb19)

ASIAN SCHOOL OF BUSINESS MANAGEMENT

2

Company Guide:

Mr. Pankaj Bharghav

Associate Sales Manager,

Max New York Life

Agra.

Faculty Guide:

Prof. Ratikant Biswal

IT Department,

ASBM,

Bhubaneswar.


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CERTIFICATE FROM THE

ORGANIZATION

This is to certify that the project entitled Potential of Life Insurance

Industry in Bhubaneswar is a bonafide work of Kapil agarwal, a

student of Asian School of Business Management (ASBM), bearing

Roll No. PGPM/07-09/18, and was successfully conducted at Max

New York Life, Bhubaneswar, from 10th April to 4th June 08, for the

partial fulfillment of the course Post Graduate Programme in Business

Management (PGPM) of ASBM, Bhubaneswar.

Mr. Sidharth Mohanty,

Associate Sales Manager,

Max New York Life,

Bhubaneswar.

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CERTIFICATE BY THE GUIDE

This is to certify that the project work entitled Potential of Life

Insurance Industry in Agra is a piece of work done by Kapil

Agarwal, student of Asian School Of Business Management, under

my guidance and supervision for the partial fulfillment of the course

PGPM, Asian School Of Business Management, Bhubaneswar.

To the best of my knowledge and belief the thesis embodies the

work of the candidate herself and has been duly completed.

Simultaneously, the thesis fulfills the requirements of the rules and

regulations related to the summer internship of the institute and I am

assured that the project is up- to the standard both in respect to the

contents and language for being referred to the examiner.

Signature of the Faculty Guide

Name of Faculty Guide

Designation

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DECLARATION

I hereby declare that the project report entitled Potential of Life

Insurance Industry in Bhubaneswar is the produce of my sincere

effort. This Summer Internship Project Report is being submitted by

me alone, at Asian School of Business Management, Bhubaneswar,

for the partial fulfillment of the course PGPM, and the report has not

been submitted to any other educational institutions for any other

purpose.

Date:

Signature

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CONTENTS

PARTISULARS Page No.

Acknowledgement

Executive Summary7

8

Introduction

Introduction of the Industry

Life Insurance

General Insurance

Major Policy changes

Changing Face of Indian Insurance Industry

Various types of Life Insurance Policies

Introduction of the Company

Company Profile

Achievement

Management

Insurance Plans

9

11

12

13

1415

18

19

20

21

Research Methodology

Objective

Scope of study

Sampling Methodology

Limitations

26

27

28

29

Survey

Graph Analysis & Data Interpretation 30-47

Findings & recommendations

Findings & Recommendations Growth Potential

Conclusion

4950

51

Bibliography 52

Annexure

Questionnaire 54-55

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LIST OF GRAPHS

Particulars Page No.

[Fig 1]No of People Having Insurance

[Fig 2] Types of Insurance Policy Respondents Have

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31

[Fig 3]Preferance of Respondents of Insurance Cos

[Fig 4] Benefits of Insurance Perceived by Respondents

[Fig 5]Features of Insurance Policy That Attracted Respondents

[Fig 6] Peoples Perception About Insurance

[Fig 7] Persons Having Insurance For

[Fig 8] Reasons Behind Taking Insurance Policies

[Fig 9] Satisfaction of Respondents With Respect to Policies

[Fig 10] Satisfaction of Respondents With Respect to Agents

[Fig 11] No of Respondents Paying Tax

[Fig 12] Respondents Perception About Best Form of Investment

[Fig 13] Peoples Perception of Appropriate Age For Buying Insurance

[Fig 14] Peoples Opinion About Insurance Companies in India

[Fig 15] What People Look For in Insurance Companies

[Fig 16] People Interested In Going For Insurance Away From Their City

[Fig 17] People Planning For New Investment

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ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibilities to

complete this thesis. I would like to thank Prof. Dr. Biswajeet Pattnaik,

Director, Asian School of Business Management, Dr. Kalyan Shankar Ray,

Dean, Asian School of Business Management, Ms. Kirti Mishra, Branch

Manager, Max New York Life Insurance, Bhubaneswar and college authorities

first for providing me the opportunity to work with one the prestigiousorganization.

I want to thank Associate sales Manager, Max New York Life, Bhubaneswar

Mr. Sidharth Mohanty for giving me permission to commence this thesis in the

first instance, to do the necessary research work and for being my Company

Guide.

With a deep sense of gratitude and humble submission I would like to

express my heartiest gratefulness to my Faculty Guide Prof. Ratikant Biswal,Asian School of Business Management, whose help, stimulating suggestions

and encouragement helped me in all the times of research for and writing of this

thesis.

De;

Date: Signature:

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EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that Insurance sector has the

maximum growth and potential as compared to the other sectors. Insurance has

the maximum growth rate of 70-80% while as FMCG sector has maximum 12-

15% of growth rate. This growth potential attracts me to enter in this sector and

MAX NEW YORK LIFE INSURANCE has given me the opportunity to work

and get experience in highly competitive and enhancing sector.

The success story of good market share of different organizations depends

upon the availability of the product and services near to the customer,

which can be distributed through a distribution channel. In Insurance

sector, distribution channel includes only agents or agency holders of the

company. If a company like MAX NEW YORK LIFE, BAJAJ

ALLIANZ, TATA AIG, etc has adequate agents in the market they can

capture big market as compared to the other companies.

Agents are the best way for a company of Insurance sector through which

policies and benefits of the company can be explained to the customer.

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10

INTRODUCTION

Introduction of the Industry

Introduction of the Company

Company Profile

Achievements

Management

Insurance Plans


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THE HISTORY OF INDIAN INSURANCE INDUSTRY

The story of Insurance is probably as old as the story of mankind. The same instinct that

prompts modern businessmen today to secure themselves against loss and disaster existed inprimitive men also. They too sought to avert the evil consequences of fire and flood and loss

of life and were willing to make some sort of sacrifice in order to achieve security. Though

the concept of insurance is largely a development of the recent past, particularly after the

industrial era past few centuries yet its beginnings date back almost 6000 years.

Life Insurance

In 1818 the British established the first insurance company in India in Calcutta, the Oriental

Life Insurance Company. First attempts at regulation of the industry were made with the

introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments

to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in

the Act were the power given to the Government to collect statistical information about the

insured and the high level of protection the Act gave to the public through regulation and

control. When the Act was changed in 1950, this meant far reaching changes in the industry.

The extra requirements included a statutory requirement of a certain level of equity capital, a

ceiling on share holdings in such companies to prevent dominant control (to protect the public

from any adversarial policies from one single party), stricter control on investments and,

generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign lifeinsurance companies. Business was heavily concentrated in urban areas and targeted the

higher echelons of society. Unethical practices adopted by some of the players against the

interests of the consumers then led the Indian government to nationalize the industry. In

September 1956, nationalization was completed, merging all these companies into the so-

called Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry

fairness, solidity, growth and reach.

Some of the important milestones in the life insurance business in India

are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the

life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective

of protecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance companies.

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General Insurance

The General insurance business in India started with the establishment ofTriton Insurance

Company Limitedin 1850 at Calcutta. In 1907, the first company, The MercantileInsurance Ltd. Was set up to transact all classes of general insurance business. General

Insurance Council, a wing of the Insurance Association of India in 1957, framed a code of

conduct for ensuring fair conduct and sound business practices. In 1968 the Insurance Act

was amended to regulate investments and to set minimum solvency margins. In the same year

the Tariff Advisory Committee was also set up. In 1972, The General Insurance Business

(Nationalization) Actwas passed to nationalize the general insurance business in India with

effect from 1st January 1973. For these 107 insurers was amalgamated and grouped into four

companys viz., theNational Insurance Company Ltd., the NewIndia Assurance Company

Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd.

General Insurance Corporation of India was incorporated as a company

Some of the important milestones in the general insurance business in India are:

1907: TheIndian Mercantile Insurance Ltd. set up, the first company to transact all classes

of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a

code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general

insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and

grouped into four companies viz. the National Insurance Company Ltd., the New India

Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India

Insurance Company Ltd. GIC incorporated as a company.

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MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance

companies with the enactment of Insurance Regulatory and Development Authority Act,

1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and

Development Authority (IRDA) was established on 19th April 2000 to protect the interests of

holder of insurance policy and to regulate, promote and ensure orderly growth of the

insurance industry. IRDA Act 1999 paved the way for the entry of private players into the

insurance market which was hitherto the exclusive privilege of public sector insurance

companies/ corporations. Under the new dispensation Indian insurance companies in privatesector were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or through its

subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such

Indian insurance company;

The company's sole purpose is to carry on life insurance business or general insurance

business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is Rs.100 crores.

The minimum paid up equity capital for carrying on reinsurance business has been prescribed

as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include Registration of

Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of

Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of

policy holders' interest etc. Applications were invited by the Authority with effect from 15th

August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The

Authority has its Head Quarter at Hyderabad.

Changing face of Indian insurance industry:

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Indian life-insurance market is the target market of all the companies who either want to

extend or diversify their business. To tap the Indian market there has been tie-ups between the

major Indian companies with other International insurance companies to start up their

business. The government of India has set up rules that no foreign insurance company can setup their business individually here and they have to tie up with an Indian company and this

foreign insurance company can have an investment of only 24% of the total start-up

investment.

Indian insurance industry can be featured by:

Low market penetration.

Ever growing middle class component in population.

Growth of customers interest with an increasing demand for better insurance

products.

Application of information technology for business.

Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of

which are making strides in raising awareness levels, introducing innovative products and

increasing the penetration of life insurance in the vastly underinsured country. Several of private insurers have introduced attractive products to meet the needs of their target

customers and in line with their business objectives. The success of their effort is that they

have captured over 28% of premium income in five years.

The biggest beneficiary of the competition among life insurers has been the

customer. A wide range of products, customer focused service and professional advice has

become the mainstay of the industry, and the Indian customers forms the pivot of each

companys strategy. Penetration of life insurance is beginning to cut across socio-economic

classes and attract people who have never purchased insurance before.

Life insurance is also now being regarded as a versatile financial planning tool.Apart from the traditional term and saving insurance policies, industry has seen the entry and

growth of unit linked products. This provides market linked returns and is among the most

flexible policies available today for investment. Now products are priced, flexible, and

realistic and sustain so people in better position to understand the risk and benefits of the

product and they are accepting these innovative products.

So it is clear that the face of life insurance in India is changing, but with the

changes come a host of challenges and it is only the credible players with a long term vision

and a robust business strategy that will survive. Whatever the developments, the future and

the opportunities in this industry will surely be exciting.

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Various types of life insurance policies:-

Endowment policies: This type of policy covers risk for a specified period, and

at the end of the maturity sum assured is paid back to policyholder with the bonusesduring the term of the policy.

Money back policies: This type of policy is for periodic payments of partialsurvival benefits during the term of the policy as long as the policy holder is alive.

Group insurance: This type of insurance offers life insurance protection under

group policies to various groups such as employers-employees, professionals, co-

operatives etc it also provides insurance coverage for people in certain approved

occupations at the lowest possible premium cost.

Term life insurance policies: This type of insurance covers risk only during

the selected term period. If the policy holder survives the term, risk cover comes to an

end. These types of policies are for those people who are unable to pay larger

premium required for endowment and whole life policies. No surrender, loan or paid

up values are in such policies.

Whole life insurance policies: This type of policy runs as long as the

policyholder is alive and is covered for the entire life of the policyholder. In this

policy the insured amount and the bonus is payable only to nominee on the death of

policy holder.

Joint life insurance policies: These policies are similar to endowment policies

in maturity benefits and risk cover, but joint life policies cover two lives

simultaneously such as married couples. Sum assured is payable on the first death and

again on the death of survival during the term of the policy.

Pension plan: A pension plan or annuity is an investment over a certain number

of years but does not provide any life insurance cover. It offers a guaranteed incomeeither for a life or certain period.

Unit linked insurance plan: ULIP is a kind of insurance plan which provides

life cover as well as return on premium paid over a certain period of time. The

investment is denoted as units and represented by the value called as net asset value

(NAV).

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COMPANY PROFILE

Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a

Fortune 100 company and Max India Limited, one of India's leading multi-business

corporations. The company has positioned itself on the quality platform. In line with its vision

to be the most admired life insurance company in India, it has developed a strong corporate

governance model based on the core values of excellence, honesty, knowledge, caring,

integrity and teamwork. The strategy is to establish itself as a trusted life insurance specialist

through a quality approach to business.

In line with its values of financial responsibility, Max New York Life has adopted prudent

financial practices to ensure safety of policyholder's funds. The Company's paid up capital is

Rs. 907.4 crore, which is more than the norm laid down by IRDA.

Max New York Life has identified individual agents as its primary channel of distribution.

The Company places a lot of emphasis on its selection process, which comprises four stages -

screening, psychometric test, career seminar and final interview. The agent advisors are

trained in-house to ensure optimal control on quality of training.

Max New York Life invests significantly in its training programme and each agent is trainedfor 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before

beginning to sell in the marketplace. Training is a continuous process for agents at Max New

York Life and ensures development of skills and knowledge through a structured programme

spread over 500 hours in two years. This focus on continuous quality training has resulted in

the company having amongst the highest agent pass rate in IRDA examinations and the

agents have the highest productivity among private life insurers.

337 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership

in 2007. MDRT is an exclusive congregation of the worlds top selling insurance agents and

is internationally recognized as the standard of excellence in the life insurance business.

Having set a best in class agency distribution model in place, the company is spearheading a

major thrust into additional distribution channels to further grow its business. The company is

using a five-pronged strategy to pursue alternative channels of distribution. These include the

franchisee model, rural business, direct sales force involving group insurance and

telemarketing opportunities, bancassurance and corporate alliances.

Max New York Life offers a suite of flexible products. It now has 43 life insurance products

and 8 riders that can be customized to over 800 combinations enabling customers to choose

the policy that best fits their need.

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VISION

To become one of the most admired life insurance company of India.

MISSION

Become one of the top quartile life insurance companies in India

Be a national player

Be the brand of first choice

Be the employer of choice

Become principal of choice for agents

VALUES

Knowledge:

Knowledge leads to expertise; and our expertise is in helping people protect themselves.

Perfectly combining global expertise with local knowledge, we are India's life insurance

specialist. Max New York Life believes that for knowledge to be of value it must be focused,

current, tested and shared.

Caring:

Max New York Life is redefining the life insurance paradigm by focusing on customers first.

The service process is responsive, personalized, humane and empathetic. Every individual

who represents the company is for us our brand champion.

Honesty:

Honesty is the heart of the life insurance business. It is all about trust. Transparency, integrityand dependability form the cornerstones of the Max New York Life experience. The

company ensures that everyone who represents the brand carries a promise : we care in

word as well as deed.

Excellence:

Excellence at Max New York Life implies the ability to perform at a consistently high level.

Focused on the value of continuous improvement in people, processes and the organization,

the company strives for the highest standards of quality in every aspect of its business.

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Max New York Life Insurance, the joint venture between Max India and New York Life International, has

named Rajesh Sud as the new CEO and managing director of the joint venture operation, effective

November 1, 2008, pending formal Insurance Regulatory and Development Authority approval.

ACHEIVEMENTS

Max New York Life is the first life insurance company in India to be awarded the IS0

9001:2000 certification.

Max New York Life was among the top 25 companies to work with in India, according to

2003 Business World magazine, "Great Workplaces In India", Max New York Life was

ranked at the 20th position. This survey is the local version of the "Great Places To Work"survey carried out every year in 22 countries.

Been among top five most respected private life insurance companies in India according to a

2004 and 2006 Business World survey.

Have truly built an enviable sales force. With 345 agents becoming members of the MDRT in

2006, Max New York Life has moved up to 21st rank in MDRT global list.

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MANAGEMENT

BOARD OF DIRECTORS:

MANAGEMENT TEAM:

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Analjit Singh

Chairman,

Max India Limited

Gary R. Bennett

Managing Director and CEO,

Max New York Life Insurance

Anuroop 'Tony' Singh

Vice Chairman,Max New York Life Insurance

Ted Mathas

President & Chief Operating Officer,New York Life Insurance

Gary Bennett

Managing Director and CEO,

Max New York Life

Sunil Sharma

Chief Operating Officer and Executive

Director

Rajit Mehta

Executive Director,

Human Resources, Training and

Internal Communications

Rajesh Sud

Executive Director, Distribution

Anil Mehta

Director, Group Business

Sunil Kakar

Director and Chief Financial Officer

Ajay Seth

Director, Legal & Compliance

Debashis Sarkar

Director - Marketing, Product

Management and Corporate Affairs

John Poole

Chief Actuary


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INSURANCE PLANS

Protection Plans:

Five Year Renewable and Convertible Term Insurance

Max New York Life's Five Year Renewable and Convertible Term Insurance (Non-

Participating) plan not only provide you with a low cost insurance cover during its tenure of

five years, it also helps you plan in advance for various future needs and your family's

financial security, should anything unfortunate happen to you. Offering a guaranteed Death

Benefit, this plan is particularly useful as a short-term protection plan. An important feature

of this policy is that it allows the insured to convert the policy to a regular policy during the

tenure of the policy.

Level Term (Non Participating) Policy

Max New York Life's Level Term (Non Participating) Policy is a plan that covers your life at

a very low cost and reduces the consequent hardship your family may have to bear in the

unfortunate event of your death. Incase of the unfortunate death of the policy holder during

the term of the plan, an amount equal to the sum assured is paid to the nominee.

Children Plans:

Children's Endowment to 18 (Par) Plan

Max New York Life presents Children's Endowment Participating Insurance to age 18 with

an option to buy a permanent life insurance policy without medical underwriting (irrespective

of his/her health at that time). This policy which is especially designed to enable you to

provide for higher education of your child and take care of your childs future needs in case

of spiraling costs.

Children's Endowment to 24 (Par) Plan

Max New York Lifes Children's Endowment Participating Insurance to age 24 provides an

option to buy a permanent life insurance policy without medical underwriting (irrespective of

his/her health at that time). This policy enables you to provide for various events in your

childs life such as a grand wedding of your child. This excellent plan is a participating plan,

which is also eligible for bonuses and Max New York Life may declare these bonuses from

time to time and from the third policy year. An important feature of this plan is that the entire

sum assured is paid out on maturity and the plan automatically vests when the child turns 18.

Stepping Stones (Par) Plan

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Max New York Lifes Stepping Stones is a smart way to plan your childrens education

and their future irrespective of whether you are there or not. It provides you with regular

money when it is required. This policy also builds cash value, which you can use during your

lifetime to fund any unforeseen needs by surrendering accumulated PUAs. This policy alsoentitles you to make partial withdrawals for various unplanned expenses in the future.

SMART Steps Plan

Introducing Max New York Lifes regular premium unit linked life insurance childrens plan

SMART Steps, which will help you plan for your child's future in a SMART way and

takes your worries away. This plan offers the required financial protection for your lovedones if you are not alive and provides an unmatched investment opportunity by way of well

managed investment funds. This policy also entitles you to make partial withdrawals for

various unplanned expenses in the future.

SMART Steps Plus

A regular premium unit linked life insurance plan, Max New York Lifes SMART Steps

Plus will help you plan for your child's higher education, marriage, and financial security.

This plan offers no-compromise 360 degree protection to your children even if you are not

alive and provides an unmatched investment opportunity by way of well managed investment

funds. This policy also entitles you to make partial withdrawals for various unplannedexpenses in the future.

SMART Steps Single Premium Plan

Max New York Lifes SMART Steps Single Premium policy will help you plan for your

child's future in a SMART and organized manner. Apart from offering 360 degree protection

to your child if you are not alive, this plan also provides an unmatched investment

opportunity by way of well managed investment funds. This policy also entitles you to make

partial withdrawals for various unplanned expenses in the future.

Investment Plans:

Life Maker Premium Investment Plan

The latest Life Maker Premium Investment Plan gives you a lot of choices - especially

when you are looking for Great life style, Big Home, your own well established Business and

top of all - Protection for your family. Our Unit linked Life Insurance plan can be the

financial cornerstone for your objectives. Max New York Life Insurance provides you apowerful investment-cum-insurance plan where you can direct your investments in the

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customized unit linked funds such as equities, money market instruments, investment grade

corporate bonds, and government securities. These funds offer a wide range of returns basis

market returns. You can choose to invest your premiums in one or more of these funds, basis

your risk taking ability.

Life Maker Platinum - a Unit Linked Investment Plan

With the Life Maker Platinum - a Unit Linked Investment Plan , you can meet all your

financial needs, without the tedium of managing multiple products. In this plan, you can

direct your investments in the customized unit linked funds such as equities, money market

instruments, investment grade corporate bonds, and government securities. These funds offer

a wide range of returns basis market returns. You can also choose to invest your premiums in

one or more of these funds, basis your risk taking ability.

Life Maker Gold Plan

This plan enables you to choose an attractive investment fund, enjoy free loyalty units and tax

benefits on premiums and maturity value. Life Maker Gold Plan also provides you

insurance cover, in which, your nominee will get the Sum Assured plus the Fund Value to

your nominee(s), in case of unfortunate event of your death. Our Plan also offers you the

flexible investment feature, where you can choose one out of four attractive funds options and

also change your risk return profile of your existing investments by switching across funds

with our high customization feature.

Life Invest Plan

This policy will provides you comprehensive protection from 3 Ds i.e. Death, Disease and

Disability. Apart from loyalty units and tax benefits, the maturity feature of this policy will

also pay you the fund value. Flexible Investment with choice of four attractive fund options,

lump sum investment in your plans through top ups as per your cash flow, increasing death

benefits, flexibility to choose premium payment terms are few of the benefits you can enjoy

through this policy.

SMART Assure Plan

Our smart assure plan also enables you to make partial withdrawals at the time of unexpected

expenses. The switching feature of this policy provides you the facility to change the

investment pattern by moving from one fund to other fund(s) amongst the funds offered under

this contract

Retirement Plans:

Easy Life Retirement (Par) Plan

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Catering to the diverse set of needs of various customers looking for retirement planning,

Max New York Life offers some splendid retirement plans, which would suit their budget and

lifestyle. Max New York Life's Easy Life Retirement Plan Regular Premium/Single

Premium (Participating) Policy is designed to help you save money for your retirement. Italso provides you with an opportunity to take home a regular retirement income (i.e.

pension).

SMART Invest Pension Plan

Offering competitive returns to secure the golden years of your life, Max New York Life's

SMART Invest Pension Plan is a comprehensive unit linked pension plan to meet your post

retirement financial needs, ensuring you complete peace of mind. One-third of the corpus can

be commuted at vesting age the amount commuted are eligible for tax exemption u/s 10A.

Health Plans:

LifeLine-MediCash Plan

Max New York Life's Lifeline-MediCash health Insurance plan provides you support by

giving you hospital cash benefit, whenever you are hospitalized. Through this plan you willget a fixed benefit towards hospitalization, ICU and recuperation (post hospitalization).

LifeLine-MediCash Plus Plan

Presenting Lifeline - MediCash Plus health Insurance plans from MNYL that provide you

support by giving you hospital cash benefit, whenever you are hospitalized. Through this plan

you will get a fixed benefit towards hospitalization, ICU and recuperation (post

hospitalization). And the surgical expenses of a fixed Lump-sum amount will be paid under

LifeLine MediCash Plus for more than 400 listed surgeries that you may undergo.

LifeLine-Wellness Plan

Max New York Life's LifeLine-Wellness is a health plan, which would provide you 360-

degree benefit in terms of long tenure of coverage, coverage for 10 critical illnesses, and

permissible tax benefit under an Income Tax Act.

LifeLine-Wellness Plus Plan

Max New York Life's LifeLine-Wellness Plus health plan provides a wonderful benefit

system in terms of long tenure of coverage, coverage for 38 critical illnesses and tax benefit.

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LifeLine-Safety Net Plan

Recognizing the need for a complete all round financial protection for you and your family,

Max New York Life Insurance Company offers you a term cum health insurance - LifeLine-

Safety Net , the new age insurance covering death, disability, disease and accident under

one single plan.

SOME OF THE OTHER PLANS ARE:

SAVINGS PLANS:

W hole Life Participating

20 Year Endowment (Par)

Endowment to Age 60 (Par)

Life Gain Plus 20 (Par)

Life Gain Plus 25 (Par)

Life Pay Money Back

Life Gain Endowment

Life Partner

RURAL PLANS:

Max Suraksha

Easy Term Policy

STRATEGIC PRODUCTS PLANS:

Bancassurance

Super Saver Bond

Capital Builder

Additional Distribution

Max Mangal

Max Vriksha

Capital Builder

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Max Amsure

Family Money Back

Bonus Builder

Business Builder

Secure Returns builders

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26

RESEARCH METHODOLOGY

Objective

Scope of study

Sampling methodology

Limitations


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RESEARCH METHODOLOGY

TITLE:

To Study Potential of Life Insurance Industry in Agra.

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with studying the buying pattern in the

insurance industry with a special focus on Max New York life Insurance. The various segments of

the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also

studied.

OBJECTIVE

Main objective of the research is to have an analysis of life insurance industry in Agra. To

accomplish this objective it has been divided into five.

To determine reasons behind opting for an insurance.

To know the most preferred policy.

To determine customers perception towards private insurance companies and their expectation

form private insurance companies.

To determine the feedback on services provided by an insurance agent.

To study the types of benefits provided by insurance services.

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SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number of new players

have entered the market and are trying to gain market share in this rapidly improving market. The

study deals with Max New York Life in focus and the various segments that it caters to. The study

then goes on to evaluate and analyze the findings so as to present a clear picture of trends in the

Insurance sector.

SIGNIFICANCE TO THE INDUSTRY:

This is a limited study which takes into consideration the responses of 100 people. This data can be

explorated to take in the trends across the industry. The significance for the industry lies in studying

these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only

beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the

industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER:

To facilitate and provide useful information for the study of the company and the insurance industry

and also provide recommendations for Max New York Life.

RESEARCH DESIGN

NON-PROBABILITY

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of information

are both primary & secondary.

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A well-structured questionnaire was prepared and personal interviews were conducted to collect the

customers perception and buying behavior, through this questionnaire.

SAMPLING METHODOLOGY

Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot

study was done in order to know the accuracy of the Questionnaire. The final Questionnaire

was arrived only after certain important changes were done. Thus my sampling came out to

be judemental and convinent.

Sampling Unit:

The respondents who were asked to fill out questionnaires are the sampling units. These comprise of

employees of MNCs, Govt. Employees, Self Employed etc.

Sample size:

The sample size was restricted to only 100, which comprised of mainly peoples from different regions

of Agra due to time constraints.

Sampling Area:

The area of the research was Agra, India.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Agra and does not necessarily shows a pattern

applicable to all of Country.

2. Some respondents were reluctant to divulge personal information which can affect the validity

of all responses.

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3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly.

The environmental changes are vital to be considered in order to assimilate the findings.

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SURVEY

Graph Analysis

Data Interpretation


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DATA ANALYSIS & INTERPRETATION

NUMBER OF PEOPLE HAVING INSURANCE

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Yes 86 86%

No 14

Total 100 100%

YES

86%

NO

14%

[Fig 1]

INTERPRETATION

Of the sample size of 100 surveyed respondents 86% of the respondents are having

Insurance policy.

14% of the respondents are either not having any Insurance policy at present or their

policy is already matured.

And at present 100% of the respondents are with the view that Insurance is a tool to

protect your family.

TYPES OF INSURANCE POLICY RESPONDENTS HAVE

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POLICY TYPE NO. OF

RESPONDENTS

SHARE (%)

LIFE POLICY 75 75

NON LIFE POLICY 25 25

BOTH 45 45

INTERPRETATION

75% of the respondents have only Life Insurance Policy.

while 45% of the respondents have both.

25% of the respondents have only Non- life Policy.

[Some of the respondents opted for two or more than two items]

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PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

COMPANYS NAMENO.OF

RESPONDENTSHARE (%)

L.I.C. 78 78%

RELIANCE LIFE INSURANCE 3 3%

ICICI PRUDENTIAL 8 8%

SBI LIFE 6 6%

Max New York Life 5 5%

TOTAL 100 100

LIC78%

REL3%

ICICI8%

SBI6%

MNYL5%

[Fig3]

INTERPRETATION

78% of the people contacted prefer LIC policy to any other and therefore it is ranked

no.1 by that percent of respondents.

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BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

BENEFITSNO.OF

RESPONDENTSSHARE (%)

Cover Future Uncertainty 35 35%

Tax Deductions 45 45%

Future Investment 20 20%

TOTAL 100 100

INTERPRETATION

55% of the respondents believe that covering future uncertainty is the biggest benefit

of an insurance policy.

Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and

future investments respectively.

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Cover Future

Uncertainty55%

Tax

Deductions20%

Future

Investment25%

[Fig 4]


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FEATURES OF INSURANCE POLICY THAT ATTRACTED

RESPONDENTS

FEATURE NO.OF

RESPONDENTS

SHARE (%)

Money Back Guarantee 15 15

Larger Risk Coverage 37 37

Easy Access to Agents 7 7

Low Premium 30 30

Companys Reputation 11 11

TOTAL 100 100

INTERPRETATION

Majority of the respondent (37%) found larger risk coverage as the most attracted feature

of the all.

Minimum respondents (7%) opted for easy access to agents.

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PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect your family 100 100%

INTERPRETATION

81% of the respondents have perception of Insurance being a saving tool.

And 74% of the respondents have perception of Insurance being a tax saving device.

But 100% of the respondents are with the view that Insurance is a tool to protect your

family.


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PERSONS HAVING INSURANCE FOR

Response No of respondents

self 40

spouse 28

children 21

parents 18

all 11

INTERPRETATION

Among that 42% people who having insurance, they have insurance 40% for self, 28%for spouse ,

21% for children and 18% for their parents and 11% for all family member.

REASONS BEHIND TAKING INSURANCE

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RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Tax saving 80 50%

Saving / Investment 80 50.%

Family protection 100 100%

INTERPRETATION

80% of the Respondents opted for Insurance for tax saving benefits and

saving/investment both.

But all of them, i.e. 100% of the respondents have opted for insurance for their family

protection.


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SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

60% of the respondents are more or less satisfied with their existing policy.

40% of the respondents are not satisfied with their existing policy.

In this case all of those who have taken a policy have responded.

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SATISFACTION OF +VE RESPONDENTS WITH RESPECT TO SERVICE AGENT

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

45% of the respondents are satisfied with their existing service agent.

55% of the respondents are not satisfied with their existing insurance agent.

All of those who have taken a policy have responded.

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NUMBER OF RESPONDENTS PAYING TAX

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Paying tax 100 100%

Not paying tax 0 0%

Total 100 100%

INTERPRETATION

Of the sample size of 100 respondents, all the respondents are paying tax.

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RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR

SECURING THEIR FUTURE

NO. OF

RESPONDENTS

SHARE (%)

Fixed Assets 75 33%

Bank deposits 11 5%

Jewellery 25 11%

Securities i.e. bonds, MFs 40. 17%

Shares 10 4%

Insurance 70 30%

INTERPRETATION

75% of the respondents are with the view that Fixed Assets is the best form of

investment for securing their future.

70% of the respondents are with the perception that Insurance is the best form of

investment for securing their future, which is 2nd highest and this shows that insurance is an

important key for securing your future.


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PEOPLES PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE

RESPONSE NO. OF RESPONDENTS SHARE (%)

After 25 years 29 29%

After 35 years 10 10%

After 45 years 0 0%

Anytime 61 61%

INTERPRETATION

29% of the respondents are with the view that insurance should be bought after the age of

25 years.

10% of the respondents are with the view that insurance should be buyed after the age of

35 years.

Whereas, 61% of the respondents are with the view that buying of insurance do not have

any thing to do with age i.e. there is no age limitations. It can be purchased any time according to

the need.

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PEOPLES OPINION ABOUT INDIAN INSURANCE COMPANIES

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Rigid plans 67 67%

Non user friendly 29 29%

Unsatisfactory services 26 26%

Non Aggressive 35 35%

Satisfactory 24 24%

Good 10 10%

Very good 0 0%

INTERPRETATION

67% of the respondents have the opinion that Indian Insurance Companies have Rigid

plans.

29.5% feel that Indian Insurance companies are Non-user friendly.

26.5% feel that services of Indian Insurance companies are Unsatisfactory.

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35.75% of the respondents are with the view that Indian Insurance companies are Non-

aggressive.

24% of the respondents feel that products and services of Indian Insurance companies is

Satisfactory.

Whereas only 10.25% feel that it is Good enough.

And according to the data, no single person has felt that it is very good.


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WHAT PEOPLE LOOK FOR IN AN INSURANCE COMPANY

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

A trusted name 82 82%

Friendly service &

responsiveness

71 71%

Good plans 81 81%

Accessibility 49 49%

INTERPRETATION

82% customers look for a Trusted name in a company for insurance.

81.5% customers look for a good plan in a company for insurance.

Friendly service & responsiveness and Accessibility are also important factors looked by

customers in a company.


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PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER AWAY

FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Yes 43 43%

No 44 44%

Uncertain 13 13%

Total 100 100%

INTERPRETATION

The interested customers i.e. 43% are ready to go for insurance even away from a city if

services and products are worthwhile, which again is a good prospect (potential) for Max New

york Life Insurance to take them on their favor.

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PEOPLE PLANNING FOR NEW INVESTMENTS

RESPONSE NO. OF RESPONDENTS SHARE (%)

Planning 87 87%

Not planning 13 13%

Total 100 100%

INTERPRETATION

Only 13% of the customers contacted are not planning for new investments presently.

Whereas, 87% of the customers are still planning for new investments this can be a great

potential for Max New York Life Insurance to take them on their favor.

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FINDINGS &

RECOMMENDATIONS


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FINDINGS & RECOMMENDATIONS

1. As the people think that insurance is a tool to protect their family & a tax saving device. They are

aware of the fact & realizing its, importance. There is a large potential for insurance in India.

2. The entrance of private players will increase the competition and it would be a tough task to secure

a good position in market.

3. Since Max New York Life Insurance is leading with several companies policies it should be easy

for them to penetrate into the market and secure a good position if they pay greater attention to the

service part provided to their customer and thereby forming a long and trusted relationship.

4. As seen from the survey that at present 70% of the customer are having insurance policy out of

which 87.5% of the customer are planning for new investments. So it can be a good potential for the

company and they should make an attempt to trap these customers.

5. As 43% of the customers are even ready to go for insurance if a service provider away from their

city is providing it. But inturn they should provide good products and services. The company should

try to convince these customers and get them in its favor.

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GROWTH POTENTIAL

At present life insurance penetration in India is quite low 3% of GDP.

PHASE OF TRANSITION

Life Insurance industry is under the phase of infancy after 50 years of

monopoly.

Competition from within and other sectors of financial market.

Needs environmental support till it reaches a comfort zone

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CONCLUSION

Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be

seen in the above analysis. A general impression that we gathered during Data collection was the

immense awareness and knowledge among people about various companies and their insurance

products. People are beginning to look beyond LIC for their insurance needs and are willing to trust

private players with their hard earned money.

People in general have been impressed by the marketing and advertising campaigns of insurance

companies. A high penetration of print, radio and Television Ad campaigns over the years is

beginning to have its impact now.

Another heartening trend was in terms of people viewing insurance as a tax saving and investment

instrument as much as a protective one. A very high number of respondents have opted for insurance

for such purposes and it shows how insurance companies have been successful to attract public money

in recent times.

The general satisfaction levels among public with regards to policy and agents still requires

improvement. But therein lies the opportunity for a relative player like Max New York Life. LIC has

never been known for prompt service or customer oriented methods and Max New York Life can

build on these factors.

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BIBLIOGRAPHY

WEBSITES REFERRED

www.maxnewyorklife.com

www.irdaindia.org

www.thehindubusinessline.com

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http://www.maxnewyorklife.com/http://www.thehindubusinessline.com/http://www.maxnewyorklife.com/http://www.thehindubusinessline.com/


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ANNEXURE


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QUESTIONNAIRE

NAME:_________________________

ADDRESS:______________________

______________________________OCCUPATION:___________________

1. ARE YOU EMPLOYED?YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH COS INSURANCE POLICY YOU PREFER THE MOST? (RANKTHEM)

a) LIC b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE d) ING VYSYA LIFE

e) MAX NEW YORK LIFE INSURANCE f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

5. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN?(RANK THEM)

a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONSc) FUTURE INVESTMENT d) ANY OTHER _________(Specify)

6. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?(RANK THEM)

a) LOW PREMIUM b) LARGER RISK COVERAGE

c) MONEY BACK GUARNTEE d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS f) ANY OTHER _________ (Specify)

7. WHATS YOUR PERCEPTION ABOUT INSURANCE?(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

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c) A TOOL TO PROTECT FUTURE

8. AREYOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL b) NOT SATISFIED

c) NOT RESPONDING

9. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL b) NOT SATISFIED

c) NOT RESPONDING

10. DO YOU PAY TAXES?

YES NO

11. WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM)

a) FIXED ASSETS b) BANK DEPOSITS

c) JEWELLERY d) SECURITIES, i.e. Bonds, MFs

e) SHARES f) INSURANCE

12. . WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS b) SECURITY

c) TAX BENIFITS

13. WHATS THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs b) AFTER 35 Yrs

c) AFTER 45 Yrs d) ANYTIME

14. HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES d) NON-AGGRESSIVE

e) SATISFACTORY f) GOOD

g) VERY GOOD

15. WHATWOULD YOU LOOK FOR IN AN INSURANCE COs?(RANK THEM)

a) A TRUSTED NAME b) FRIENDLY SERVICE & RESPONSIVENESS

c) GOOD PLANS d) ACCESSIBILITY

16. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERSBETTER SERVICE & PRODUCTS?

a) YES b) NO c) UNCERTAIN

17. ARE YOU PLANNING FOR NEW INVESTMENTS?

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PLANNING NOT PLANING

THANK YOU.

3939528 SIP Project on Max Newyork Life

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