“PRODUCT PROMOTION OF MAX LIFE INSURANCE”

A Project Report Submitted

at

Global Business School & Research Centre, Pune

In Partial fulfillment of degree of Master of Business Administration

Submitted by

(ROHIT KUMAR PANDEY)

(Roll no:-50)

Under the guidance of

Dr. D. Y. Patil Vidyapeeth,Pimpri, Pune – 411018.

2013-2015

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CERTIFICATE

This is to certify that Mr. Rohit Kumar Pande y has worked on the topic

“PRODUCT PROMOTION OF MAX LIFE INSURANCE in at Prof.Tapati Sarmah

under my guidance. This project is a research outcome conducted by him/her as

part of their curriculum during the summer internship.

SignatureName & Designation of the guide

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DECLARATION

I declare that the project entitled “PRODUCT PROMOTION OF MAX LIFE

INSURANCE” submitted by me as a part of my curriculum for the award of

Master of Business Administration at

Global Business School & Research Centre, Faculty of Management, Dr. D.

Y. Patil Vidyapeeth, Pune, is a original work done by me and has not been

submitted previously anywhere.

Date: - Signature of Student

Place: - (Rohit Kumar Pandey)

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CONTENTS

• Acknowledgement

• Preface

• Executive Summary

1) INTRODUCTION TO TOPIC

1.1 Functions of insurance

Primary functions

Secondary functions

Other function

1.2 Classification of insurance

Life insurance

Non Life – General insurance

1.3 Types of policies

1.4 Contribution to Indian economy

1.5 Insurance industry prior to de - regulation

2) Introduction to MAX LIFE INSURANCE COMPANY

2.1 Classification of Insurance

2.2 Types of Policies

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2.3 Functions of Insurance

2.4 Contribution to Indian Economy

2.5 Company Profile

2.6 Insurance Management Solution

2.7 Types of Business Proposals

3) RESEARCH METHODOLOGY

3.1 Objective of the Study

3.2 Scope of the Study

3.3 Data Collection

3.4 Data Analysis

3.5 Limitations

4) DATA ANALYSIS AND INTERPRETATION

4.1 Findings

5) RECOMMENDATIONS 5.1 Conclusion

6) Bibliography

7) Annexure

8) Questionnaire

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ACKNOWLEDGEMENT

The summer project at Max Life Insurance has been a very memorable and

unique experience for me. It opened up new venues of grabbing knowledge,

which will certainly stand me helpful in the years to come.

It gives me immense privilege and pleasure in expressing my sincere

gratitude and heartfelt thanks to Mr. Kirran Nagwade for giving me the

opportunity to work in his reputed organization. I would also like to extend my

thanks to all other staff at MAX LIFE INSURANCE who have co-operated and

supported me towards the successful completion of this project.

My sincere regards and gratitude to our faculty for giving me support

throughout my M.B.A. degree and thus made me capable of being worthy of

recognition.

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I am extremely indebted and too thankful to my project guide Prof. Tapati

Sarmah , who has been most co-operative and encouraging throughout this

project. Without her initiative and constant support this project wouldn’t have

taken place.

Last but not the least I am very grateful to all the advisors who took out

some invaluable time out of their busy schedule and they responded to my

questionnaire and queries and provided me with all the valuable information.

PREFACE

These are the days of the advertising world and not the self-promoting world.

Advertising is one of the very few essential assets allocating concept which is

growing at its zenith rate to bring prosperity and progress to the teeming millions

of countries where people run after jobs. Equally important is the role of

insurance advisors, where the investment field supports advisors and takes

insurance companies to boom, and gleam and yield best results.

I am really happy to present this project before the teachers as it gives me an

incorporated base for further education and knowledge of the worldly scenarios

of the insurance industry.

I have tried my best to bring to you the latest picture of the various plans of M L

and insurance practices.

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The sections and its included chapters are cordially arranged for the smooth flow

of the subject matter both for ingestion and digestion. I carried out the survey

myself along with the summarization and conclusion of the survey. For the other

material I have freely drawn the material from internet sites and books to bring

to you the latest picture of the insurance industry. Hence, I do not claim any

originality, except for my style of presentation and the survey part.

I am very thankful to Prof.Tapati Sarmah, MBA, GBSRC College, who took the

burden to explain me the movement of the project so that I could bring out the

best possibility.

I have tried to be, as far as perfect: yet the dirty minds always tend to intervene

keeping you in a disguised state to any fault. Hence, I request all teachers to

bring to my notice any such mistakes or any facts so that I can rectify them and

increase my knowledge base. I welcome every suggestion regarding the project

matter and status as I believe in the proverb

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EXECUTIVE SUMMARY

TITLE: “PRODUCT PROMOTION OF MAX LIFE INSURANCE”

SCOPE: Scope of this project includes a survey being conducted on

MAX LIFE INSURANCE and an interpretation done of its market stand and

promotion required.

OBJECTIVE: Identify the areas where the performance of Max Life

Insurance can be improved. Study the perception of the consumers about the

company.

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In insurance companies recruitment of Financial Consultant plays a very

important role to generate high sales. The overall business depends upon the

Financial Consultant. So to understand the sales performance of Financial

Consultant evaluation program plays vital role. Life insurance companies offer

their services to the customers through the agents and Financial Consultant. So

Financial Consultant plays a very important role for Company.

Because Financial Consultant is the only persons who approach to the

customers, understand their needs, problems. So the overall business depends

upon consumers. For this purpose this Project is carried out to analysis sales

performance through Financial Consultants which is an endless procedure for

organization for the awareness among consumers.

STATEMENT OF THE PROBLEM: This study was undertaken to

identify how the consumers react to different plans offered by Max Life

Insurance. It is primarily known to the company that the main work is

to generate maximum sales. To access up-to-date information the Max Life

Insurance. keeps a track about its customers, relationships and the market

situation, helps in answering question such as what is the market potential for my

product, how are my customers behaving, and how efficient are my sales

process?

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INTRODUCTION

Life insurance is a form of insurance that pays monetary proceeds upon the death

of the insured covered in the policy. Essentially, a life insurance policy is a

contract between the named insured and the insurance company wherein the

insurance company agrees to pay an agreed sum of money to the insured's

beneficiary. With a large population and the untapped market area insurance

happens to be a very big opportunity in India. Today it stands as a business

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growing at the rate of 15-20% annually. Together with banking services, it adds

about 7 percent to the country’s GDP. In spite of all this, the growth statistics of

the penetration of the insurance in the country is very poor. Nearly 80% of

Indian population is without life and health insurance cover. This is an indicator

that growth potential for the insurance sector is immense in India. It was due to

this immense growth that the regulations were introduced in the insurance sector

and in continuation “Malhotra Committee” was constituted by the government in

1993 to examine the various aspects of the industry. The key element of the

reform process was participation of overseas insurance companies with 26%

capital. Creating a more competitive financial system suitable for the

requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many changes. The

liberalization of the insurance industry has never looked back and today stand as

one of the most competitive and exploring industry in India. The entry of the

private players and the increased use of the new distribution are in the

limelight today. The use of new distribution techniques and the IT tools has

increased the scope of the industry in the longer run. Insurance is the business

which provides protection against financial aspects of risk, such as those to

property, life, health and legal liability.

In insurance the insured makes payment called

“premiums” to an insurer, and in return is able to claim a

payment from the insurer if the insured suffers a defined

type of loss. This relationship is usually drawn up in a

formal legal contract.

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CLASSIFICATION OF INSURANCEThe insurance industry in India can broadly classified in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

LIFE INSURANCE

Life insurance can be defined as “insurance that provides a sum of money if the

person who is insured dies while the policy is in effect”. In 1818 British

introduced to India, with the establishment of the oriental life insurance company

in Calcutta. The first Indian owned Life Insurance Company was the Bombay

mutual life assurance society which was set up in 1870. The life insurance act,

1912 was the first statuary measure to regulate the life insurance business in

India. In 1983, the earlier legislation was consolidated and amended by the

insurance act, 1938, with comprehensive provisions for detailed effective control

over insurance. The union government had opened the insurance sector for

private participation in 1999, also allowing the private companies to have foreign

equity up to 26%. Following the opening up of the insurance sector, 12 private

sector companies have entered the life insurance business.

Need for life InsuranceThe need to safeguard the family brings in the need for life insurance. Today

insurance has become even more important due to the disintegration of the

prevalent joint family system, in which a number of generations co-existed in

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harmony, and a system in which a sense of financial security was always there as

there were more earning members.

Times have changed and the nuclear family has emerged. Apart from other

pitfalls of a nuclear family, a high sense of insecurity is observed in it today

besides, the family has shrunk. Needs are increasing with time and fulfillment of

these needs is a big question mark.

How will you be able to satisfy all those needs? Better lifestyle, good education,

a long desired house. But again one just cannot fritter away all your earnings.

You need to save a part of it for the future too – a wise decision. This is where

insurance helps. Factors such as fewer number of earning members, stress,

pollution, increased competition, higher ambitions etc are some of the reasons

why insurance has gained importance and where insurance plays a successful

role.

Life Insurance ensures that a person gates better prepared to face the

uncertainties in the following ways:

PROTECTION

You need life insurance to be there and protect the people you love, making sure

that your family has a means to look after itself after you are gone. It is a

thoughtful business concept designed to protect the economic value of a human

life for the benefit of those financially dependent on him.

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RETIREMENT

Life insurance makes sure that you have regular income after you retire and

also helps you maintain your standard of living. It can ensure the post –

retirement years are spent in peace and comfort.

SAVINGS AND INVESTMENTS

Insurance is a means to Save and Invest. Your periodic premiums are like

Savings and you are assured lump sum amount on maturity. A policy can come

in really handy at the time of your child’s education or marriage! Besides, it can

be used as supplement retirement income!

TAX BENEFITS

Life insurance is one of the best tax saving options today. Your tax can be saved

twice on a life insurance policy-once when you pay your premiums and once

when you receive maturity benefits. Money saved is money earned!

Why is insurance superior to other forms of savings?

An immediate estate is created in favor of the policyholder.

Protection in case of death.

Liquidity in case of need-easy loans is available.

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Tax relief-income tax.

Policies can be offered as collateral security.

TYPES OF POLICIES

Though there are a lot of policies available in the market under different names

and by different companies, the policies can be broadly classified into the

following categories.

Terms Insurance policy

Whole Life Policy

Money back policy

Endowment Policy

Pension Plans or Annuities.

FUNCTIONS OF INSURANCE

The functions of Insurance can be bifurcated into two parts:

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• Primary Functions

• Secondary Functions

• Other Functions

The primary functions of insurance include the following:

Provide Protection Collective bearing of risk - Insurance

is a device to share the - The primary function of insurance is to provide

protection against future risk, accidents and uncertainty. Insurance cannot check

the happening of the risk, but can certainly provide for the losses of risk.

Insurance is actually a protection against economic loss, by sharing the risk with

others.

financial loss of few among many others. Insurance is a mean by which few

losses are shared among larger number of people. All the insured contribute the

premiums towards a fund and out of which the persons exposed to a particular

risk is paid.

Assessment of risk - Insurance determines the probable volume of risk

by evaluating various factors that give rise to risk. Risk is the basis for

determining the premium rate also.

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Provide Certainty - Insurance is a device, which helps to change from

uncertainty to certainty. Insurance is device whereby the uncertain risks may be

made more certain.

The secondary functions of insurance include the following:

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Prevention of Losses - Insurance cautions individuals and

businessmen to adopt suitable device to prevent unfortunate consequences of risk

by observing safety instructions; installation of automatic sparkler or alarm

systems, etc. Prevention of losses causes lesser payment to the assured by the

insurer and this will encourage for more savings by way of premium. Reduced

rate of premiums stimulate for more business and better protection to the

insured.

Small capital to cover larger risks - Insurance relieves the

businessmen from security investments, by paying small amount of premium

against larger risks and uncertainty.

Contributes towards the development of larger

industries - Insurance provides development opportunity to those larger

industries having more risks in their setting up. Even the financial institutions

may be prepared to give credit to sick industrial units which have insured their

assets including plant and machinery.

The other functions of insurance include the

following:

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Means of savings and investment - Insurance serves as savings

and investment, insurance is a compulsory way of savings and it restricts the

unnecessary expenses by the insured's For the purpose of availing income-tax

exemptions also, people invest in insurance.

Source of earning foreign exchange - Insurance is an

international business. The country can earn foreign exchange by way of issue of

marine insurance policies and various other ways.

Risk Free trade - Insurance promotes exports insurance, which makes

the foreign trade risk free with the help of different types of policies under

marine insurance cover.

The end of the year 2000 marks a significant change and growth of 'India

Insurance' industry scenario. Monopoly of Public Sector Insurance company

marks an end and Private companies makes inroad. Foreign companies, both

Life and General flocked, collaborated and helped astronomical growth of

'Insurance Industry in India'.

NON- LIFE (GENERAL) INSURANCE:

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Triton insurance co. ltd was the first general insurance company to be

established in India in 1850, whose shares were mainly held by the British. The

first general insurance company to be set up by an Indian was Indian mercantile

insurance co. Ltd., which was stabilized in 1907. Thereafter many Indian players

emerged. The general insurance business was nationalized after the promulgation

of General Insurance Corporation (GIC) OF India undertook the post-

nationalization general insurance business.

Presently there are 12 general insurance companies with 4 public sector

companies and 8 private insurers. Although the public sector companies still

dominate the general insurance business, the private players are slowly gaining a

foothold. According to estimates, private insurance companies have a 10 percent

share of the market, up from 4 percent in 2001. In the first half of 2002, the

private companies booked premiums worth Rs 6.34 billion. Most of the new

entrants reported losses in the first year of their operation in 2001.

With a large capital outlay and long gestation periods, infrastructure

projects are fraught with a multitude of risks throughout the development,

construction and operation stages. These include risks associated with project

implementation, including geological risks, maintenance, commercial and

political risks. Without covering these risks the financial institutions are not

willing to commit funds to the sector, especially because the financing of most

private projects is on a limited or non- recourse basis. Insurance costs constitute

roughly around 1.2-2 percent of the total project costs. Under the existing norms,

insurance premium payments are treated as part of the fixed costs. Consequently

they are treated as pass-through costs for tariff calculations.

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Insurance, like project finance, is extended by a consortium. Normally one

insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving

a proportionate percentage of the premium. The other companies share the

remaining risk and premium. The policies are renewed usually on an annual

basis through the invitation of bids.

Of late, with IPP projects fizzling out, the insurance companies are turning

once again to old hands such as NTPC, NHPC and BSES for business.

Contribution to Indian Economy• Life Insurance is the only sector which garners long term savings.

• Spread of financial services in rural areas and amongst socially less

privileged.

• Long term funds for infrastructure.

• Strong positive correlation between development of capital markets and

insurance/pension structure.

• Employment generation.

Insurance Industry prior to de-regulationPrior to deregulation in 2000, market was a public monopoly.

• Public Monopoly

o 2000 Offices

o Over 800,000 agents

• Distribution through tied agents only

• Sales approach primarily on a tax savings platform

• Traditional style product offering : Endowment and money back plans

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• Inadequate and inflexible products

• Pensions: Small part of product offer

• Limited focus on customer needs

Improving Service Standards

Channel Access Service Points Use of IT Advisors Branch Network Limited use of

IT

Pre Deregulation – Limited Distribution

Multi Channel

Access

MULTI

SERVICE

POINTS

USE OF IT

Advisors

Brokers &

Corporate agents

Ban assurance

Call Centers

Email

Website

Branch Network

Shorter time around time

Claims

Policy Issuance

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NEW YORK LIFE INSURANCE CO.

LTD

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MAX INDIA LTD

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Max New York Life Insurance

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.

Incorporated in 2000, Max New York Life started commercial operation in 2001.

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 is Rs. 1,432 core.

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 has multi-channel distribution that includes the

agency distribution, partnership distribution, banc assurance, distribution focused

on emerging markets and alliance marketing through employed sales force. The

company currently has 33 banc assurance relationships, 14 corporate agency

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tie-ups and direct sales force at 14 locations. Max New York Life has put in

place a unique hub and spoke model of distribution to deepen rural penetration.

The company has 39 (9 hub office 30 spoke offices) offices dedicated to

emerging markets in Punjab and Haryana. Max New York Life offers a suite of

flexible products. It now has 35 products covering both life and health insurance

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

to choose the policy that best fits their need. Besides this, the company offers 6

products and 4 riders in group insurance business.

The company currently has more than 13,295 employees.

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COMPANY PROFILE

Max New York Life Insurance

“Max New York Life wants people to view insurance as a

financial protection and wealth creation instrument and not

just a tax-saving tool.”

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

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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.

New York Life is a Fortune 100 company that has over 160 years of experience

in the life insurance business. Max India Limited is a multi-business corporate

dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic

Products businesses.

Max New York Life Insurance started its operations in India in 2000. It is the

first life insurance company in India to be awarded the IS0 9001:2000

certifications. Max New York offers customized products tailored to suit

individual's needs. With its various Products and Riders, there are more than 400

product combinations to choose from. Today, Max New York Life Insurance has

a network of 57 offices spread over 37 cities all over India.

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. 657 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, one of India’s leading life insurance companies, expanded

its presence in the southern region by opening its first general office in the city

of Mysore. Max New York Life now has established a countrywide network of

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172 offices and representatives across 120 cities in India. The company has over

25,300 agent advisors, who are widely considered the best in the business. Max

New York Life aspires to be the "life insurance brand of first choice" amongst

Indian consumers.

“Max New York Life wants people to view insurance as a financial protection

and wealth creation instrument and not just a tax-saving tool. Since the launch of

our operations, our focus has always been on providing risk protection and long-

term wealth creation solutions to our customers. With a diverse product portfolio

to meet customer requirements, it is evident that we are setting benchmarks in

the marketplace and are well on course of realizing our vision to become India’s

most admired Life Insurance Company.

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VISION:

Vision statement is “Most Admired Life Insurance Company in

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.

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INSURANCE MANAGEMENT SOLUTION

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Types of business proposal:

• Internal business proposal

• External business proposal

Internal business proposal

This business proposal meant for the head of the

organization also called as justification report. An internal business proposal

provides an opportunity to develop the competence and confidence to express

your ideas, awareness, initiative and problem solving skill.

External business proposal

It is for the outsiders. Management plan, cooperation

qualification, staffing plan, contact and pricing, technology plan, regulatory

requirements are main components of business proposal.

Here, at Max Life Insurance we offer a bouquet of insurance solutions to meet

every need.

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Individual

For individuals, we have a range of protection, investment, pension and savings

plans that assist and nurture dreams apart from providing protection. You can

choose from a range of products to suit your life-stage and needs.

For organizations we have a host of customized solutions that range from

Group Term Insurance, Gratuity, Leave Encashment and Superannuation

Products. These affordable plans apart from providing long term value to the

employees help in enhancing goodwill of the company.

Protection PlansLife is full of surprises. Unexpected events that strike without warning can

disrupt the smooth rhythm of life. You must be prepared at all times. As the

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primary earning member, you need to make sure that your family is never

lacking in anything even if you are taken away from them forever. Do your best

today to ensure that your family can always enjoy a comfortable lifestyle. In

double income families, both spouses should get adequate life covers especially

if there are dependent children involved. We have plans that guarantee maximum

protection at a low cost.

• Five Yr Renewable and Convertible™

• Level Term Policy

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Children Plans

Your parenting is perfect but is your planning adequate? Are you thinking

beyond the immediate to the future, about higher education and professional

courses, in India and abroad? Many children are keen to pursue unconventional

careers. Are you in tune with their aspirations and passions? As parents you

would never let money come in the way of your children and the fulfillment of

their true potential. Our plans will help build the corpus that allows your children

to dream big and soar high.

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• Children's Endowment to 18 (Par)

• Children's Endowment to 24 (Par)

• SMART Steps™

• SMART Steps™ Plus, SMART Steps™ Single Premium

Investment Plans

Building a nest egg is about aggregating surplus amounts regularly to allow them

to grow into a sizeable sum. Investments should be aligned to specific, long-term

goals. Luxury car, foreign holiday or dream house, create your own wish list and

make it come true. Your dreams are in your hands. Every move that you make

today will bring you a step closer to your goals. Our Investment Plans offer the

dual benefit of protection and market-linked returns with the flexibility to choose

the premium and determine the market exposure.

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• Life Maker™ Premium

• Life Maker™ Gold

• Life Maker™ Platinum

• Life Invest™

• SMART Assure

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Retirement Plans

Let your golden years be the most precious of your life, full of freedom and

choice. A time to pursue your hobbies, travel and enjoy the good life. You will

never miss your salary cheque or be constrained by rising inflation. Even as you

work hard to make a better today, it is up to you to create a superior tomorrow. If

you want to sustain your current lifestyle even after you stop working, make that

money work for you. Our Retirement Plans will keep you comfortable and

content, and let you live the life you deserve.

• Easy Life™ Retirement (Par)

• SMART Invest™ Pension

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Health Plans

Do you know the cost of healthcare has climbed faster than inflation? Medical

costs can be a big drain on finances. A medical crisis can strike anyone, anytime

and may even force an individual to dip into savings to meet these sudden and

steep costs. Such an eventuality could delay or destroy a cherished financial

goal. No wonder, health is wealth. The health of every member of the family is

precious

and you need to safeguard it as a priority. Use our Health Plans to make sure

your family stays fit and fine.

• Lifeline MediCash™

• Lifeline Wellness™ Plus

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• Lifeline MediCash™ Plus

• Lifeline Safety Net™

• Lifeline Wellness™

Savings Plans

Is your money working for you? Clearly not, if it is lying idle in multiple bank

accounts. We will instill the discipline of investment through force of habit as

you park your money for protection and growth to meet your needs over your

lifetime. Choose a plan that matches your needs and budget. Our dual benefits

saving plans recognize your need for all round financial protection, and include a

life cover that will protect you till the last day.

• Whole Life Participating

• Life Gain™ Plus 25 (Par)

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• 20 year Endowment (Par)

• Life Pay™ Money Back

• Endowment to Age 60 (Par)

• Life Gain™ Endowment & Life Gain™ Plus 20 (Par)

Rural Plans

We are conscious of our social responsibility to serve the financially vulnerable

sections of society. We have created specialized Rural Plans to meet the

particular needs of customers in rural areas. The ticket size has been kept low,

the premiums are affordable and the procedures are simple. Customers in rural

areas can now find a plan to meet their unique requirements.

• Easy Term Policy

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Strategic Products Plans

Most people desire a carefree life. They want to be happy and comfortable at all

times. But needs keep evolving and you must always be one step ahead. Our

Strategic Products Plans will meet your special needs and are available through

additional distribution channels. You can choose a plan to meet the planned

events and unforeseen incidents in your life.

Banc assurance

• Capital Builder

Additional Distribution

• Max Mangal™

• Capital Builder

• Max Vriksha™

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Max Am sure

• Future Builder

• Business Builder

• Bonus Builder &Secure Returns Builder

Group plans

People are the most valuable asset of any organization. Organizations have to

innovate newer forms of compensation to retain talented employees. Pay and

perks are all very fine but an organization needs to show employees that it cares.

Ensuring the financial well being of employees and their families will earn an

organization their enduring trust and loyalty. Our Group Plans offer a three-in-

one advantage, as they are a powerful tool for motivation, reward and retention,

in these times of high attrition.

• Group Credit Life

• Unit Linked Group Superannuation Plan

• Group Gratuity cum Term Assurance

• Group Term Life

• Unit Linked Group Gratuity Plan

• Employee Deposit Linked Insurance

• Max Super Life

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RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the reach problem.

It may be understood as a science of studying how research is done scientifically.

Research means a search for knowledge or gain some new knowledge and

methodology can properly refer to the theoretical analysis of the methods

appropriate to a field of study or to the body of methods and principles particular

to a branch of knowledge. A Research methodology has a specified framework

for collecting the data in an effective manner. Research methodology means

"defining a problem, defining the research objectives, developing the research

plan, collecting the information, analyzing the information and presentation of

findings." Such framework is called "Research Design". The research process

that was followed by me consisting following steps;

A) Defining the problem

B) Developing the research plan

C) Collection of Data

D) Analysis and Interpretation of Data

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E) Presentation of findings

A) Defining the problem and research objectives

My research problem is to know the Buying process of procpactive Activa

buyers.

B) Developing the Research Plan

The development of research plan has following steps:

1. Data source

2. Research approach

3. Type of Research Design

4. Research instrument

5. Sampling plan

i) Papulation size

ii) Sample size

iii)Contact methods

6. Questionnaire Design

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OBJECTIVES OF THE STUDY

The professional objectives which are being covered under this project are as

following-

• To know about demographic factors affecting Product of Max Life

Insurance.

• To analyze the role of advertisement for Max Life Insurance Companies.

• To know the perception and conception of customers towards Insurance

products and specially focused for Max Life Insurance product

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Scope of the study

The numbers of respondents surveyed are 100.

The study is conducted in Pune.

This study is conducted to analyze the market stand of Max Life

insurance with that of other insurance companies in India.

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DATA COLLECTION

Determining sources of Data:

There are two main sources of data

1. Primary data 2. Secondary data

Primary Data: It consists of original information collected for specific research. Primary data

for this research study was collected through a direct survey to obtain this

primary data a well structured questionnaire is prepared by the researcher.

Secondary Data:

It means data that are already available i.e. they refer to data which are already

collected and analyzed by someone else. Secondary Data may be either

published data or unpublished data. Usually published data are available in:-

1) Books Magazines and newspapers

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2) 2)Public record and statistics

DATA ANALYSIS

Method of collecting data:

sampling technique:-

For preparation of questionnaire the basic objective of the survey was

concentrated, previous surveys under taken prospect cart secondary data through

files and folders. For the survey, Convenience Sampling this method involves

purposive or deliberate selection of particular units of the universe which are

available on the case of access for constituting a sample which representing

universe.

Tools of Analysis in collecting data:

Various tools have been used in this research:

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1. Tables.

2. Pie charts.

3. Bar diagrams.

4. Percentage method has been used to analyze the data.

LIMITATIONS

1) The survey was conducted within the city only.

2) Time to interact with the customers was not sufficient.

3) Customers were not fully aware of various plans of max life insurance.

4) Accurate results could not be found as every customer has his own

opinion.

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DATA ANALYSIS AND INTERPRETATION

Age of the respondents:

PARTICULARS(AGE)

NO.OF.RESPONDENT PERCENTAGE

Less than 25 11 11%25 - 35 40 40%35 – 45 20 20%Above 45 29 29%TOTAL 100 100

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Qualification of the respondents.

PARTICULARS NO.OF RESPONDENT PERCENTAGE

Graduate 52 52%

Post Graduate 29 29%

Diploma 8 8%

Other discipline 11 11%

TOTAL 100 100%

0

20

40

60

80

100

NO.OF.RESPONDENT

PERCENTAGE

Qualification of the Respondents

Graduate Post Graduate Diploma

Other discipline TOTAL

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Occupation of the respondents

PARTICULARS NO. OF RESPONDENT PERCENTAGE

Business man 34 34%

Professionals 18 18%

Job holders 37 37%

Others 11 11%

TOTAL 100 100%

0

20

40

60

80

100

NO.OF.RESPONDENT

Occupation of the Respondents

Business man Professionals Job holders

Others TOTAL

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INTERPRETATION:

From the survey it was found that amongst 100 respondents

a) 52% of the respondents were graduate

b) 29% of the respondents were post graduate

c) 8% of the respondents were diploma

d) 10% of the respondents were other discipline

Average annual income of respondents.

PARTICULARS NO. OF RESPONDENT PERCENTAGE

Up to 1 lakh 33 33%1 lakh - 3 lakh 43 43%3 lakh - 5 lakh 20 20%

5 lakh & above 4 4%TOTAL 100 100%

0

20

40

60

80

100

NO.OF.RESPONDENT

Average annual income of respondents.

Up to 1 lakh

1 lakh - 3 lakh

3 lakh - 5 lakh

5 lakh & above

TOTAL

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INTERPRETATION:

From the survey it was found that amongst 100 respondents

a) 34% of the respondents are businessmen.

b) 18% of the respondents are professionals.

c) 37% of the respondents are job holders.

d) 11% of the respondents are background.

Family size of respondents:

PARTICULARS NO.OF RESPONDENT PERCENTAGE

Below 5 members 50 50%

5 - 10 members 32 32%

Above 10 members 28 28%

TOTAL 100 100%

FAMILY SIZE

50%

32%

28%

below 5 members

5- 10 member

above 10 member

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INTERPRETATION:

From the survey it was found that amongst 100 respondents

a) 33% of the respondents have an average annual income up to 1 lakh

b) 43% of the respondents have an average annual income from 1 lakh to 3 lakh

c) 20% of the respondents have an average annual income from 3 lakh to 5 lakh

d) 4% of the respondents have an average annual income above 5 lakh

According to respondents life insurance is:

PARTICULARS NO.OF.

RESPONDENT PERCENTAGE

Risk Coverage 40 40%Tax Savings 30 30%Security 30 30%TOTAL 100 100%

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INTERPRETATION:

From the survey it was found that amongst 100 respondents

a) 50% of the respondents are below 5 members.

b) 32% of the respondents are between 5 to 10 members.

c) 28% of the respondents are above 10 members.

Awareness of Max Life Insurance

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PARTICULARS NO.OF.RESPONDENT PERCENTAGE

No 17 17%

Yes 83 83%

TOTAL 100 100%

INTERPRETATION:

From the survey it was found that amongst 100 respondents

a) 40% of the respondents say risk coverage.

b) 30% of the respondents say tax savings.

c) 30% of the respondents say financial security.

Awareness regarding Insurance:

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 70 70%

No 30 30%

TOTAL 100 100%

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0

20

40

60

80

100

NO.OF.RESPONDENT

Awareness of Max Life Insurance

No Yes TOTAL

INTERPRETATION:-

From the survey it was found that amongst 100 respondents.

a) 83% of the respondents say that they are aware of Max Life

Insurance Co.

b) 17% of the say that they are unaware of Max life Insurance Co.

% of respondents who are under different plans of Max life insurance co:

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Invest gain plan 30 30%

Protection gain plan 36 36%Child gain plan 8 8%Whole life plan 15 15%

Pension plan 11 11%TOTAL 100 100%

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INTERPRETATION :-

From the survey it was found that amongst 100 respondents

a) 70% of the respondents say that they are aware of insurance.

b) Only 30% are unaware of insurance.

e

% of respondents benefits of choosing the particular products:

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Risk coverage 60 60%Additional benefit 20 20%

Maturity date 12 12%Sum Assured 8 8%TOTAL 100 100%

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INTERPRETATION:

From the survey it was found that amongst 100 respondents:

a) 30% of the respondents are under invest gain plan

b) 36% of the respondents are under protection gain plan

c) 8% of the respondents are under child gain plan

d) 15% of the respondents are under whole life plan

e) 11% of the respondents are under pension gain plan

0

10

2030

4050

6070

80

90100

1 2

Benefits of Particular Products

Risk coverage

Additional benefit

Maturity date

Sum Assured

TOTAL

Are the respondents satisfied with the services of M.L.I. Insurance?

PARTICULARS NO. OF RESPONDENTS PERCENTAGEN0 30 30%YES 70 70%TOTAL 100 100%

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INTERPRETATION:

a) 60% of the respondents say that a benefit of choosing the particular

Product is for Safety of life.

b) 20% of the respondents say that a benefit of choosing the particular products

is for additional benefit to family.

c) 12% of the respondents say that a benefit of choosing the particular products

is for maturity date.

d) 8% of the respondents say that a benefit of choosing the particular products

is for sum assured.

Has media been the source of information for various plans of max life insurance co:

PARTICULARS NO. OF RESPONDENTS

PERCENTAGE

YES 60 60%NO 40 40%TOTAL 100 100%

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INTERPRETATION:

From the survey it was found that among 100 respondents:-

a) 70% respondents are satisfied with the services of M.L.I.

b) 30% respondents are not satisfied with the services of M.L.I.

Which source of media has provided information for the

various plans offered by M.L.I:

PARTICULARS NO. OF RESPONDENTS PERCENTAGENEWSPAPER 30 30%MAGAZINE 15 15%TELEVISION 45 45%RADIO 10 10%TOTAL 100 100%

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INTERPRETATION:

From the survey it was found that amongst 100 respondents:

60% respondents have media as the source of information for various plans.

40% respondents do not have media as the source of information for various plans.

FF

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INTERPRETATION:

From the survey it was found that amongst 100 respondents

30% respondents prefer newspaper as the source of information

15% respondents prefer magazine as the source of information

45%respondents prefer television as the source of information.

10% respondents prefer radio as the source of information.

FINDINGS

Maximum of the insurance is purchased by the middle age group.

Insurance is mostly preferred by the job holders.

Maximum insurance holders fall under the average annual income ranging

between 1- 3 lakhs.

Insurance is usually preferred by small families.

Mostly people prefer insurance to cover their risk factor.

M.L I. insurance company has a good market value***

Insurance holders under M.L.I prefer protection gain plan above all the

other plans offered to them.

The services provided by M.L.I. are satisfactory.**

Television media is one of the major source that provides information

regarding different plans of M.L.I.

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RECOMMENDATIONS

People should also be made aware of various other benefits attached with

insurance other than the factor of risk coverage only.

M. L. I. should provide more information regarding the different plans in

order to be able to cover all age groups.

Promotion techniques should be enhanced to create more awareness

among people about M. L.I.

Insurance plans should be designed in such a way that it is able to cater all

family sizes.

M. L. I. should also emphasize on the usage of other sources of media to

provide information regarding the various plans offered by them.

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70

CONCLUSION

Insurance is a superior tool to other forms of savings as it provides protection,

collective bearing of risk, assessment of risk, certainity factor, easy liquidity and

above all the safest means of savings and investment.

During the course of my internship with Max Life Insurance, I got the

opportunity to learn a lot about insurance in general and was able to study in

detail the various plans offered by them. This also provided me with the

exposure to be able to understand the insurance industry better and the various

benefits attached to it.

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BIBLIOGRAPHY

Website:

www.maxlife.com

www.google.com

www.wikipedia.org

Other Sources

Insurance Administration 2nd Edition by Jane Light cap Brown, PH.D.

Film & ETC.

Principles and Practices of Insurance By Dr. P Periasamy.

Marketing Research 3rd Edition By Beri G C.

Life and Health Insurance By Black Skipper

Marketing Management 12 Edition By Philip Kotler and Kevin Lane

Keller.

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ANNEXURES

QUeStIONNaIre

NAME:AGE:GENDER: MALE FEMALEADDRESS:

Q1) What is your average annual income?

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Upto 1 lakh 1 lakh – 3 lakh 3 lakh – 5 lakh 5 lakh and above

Q2) How many members are there in your family?

Below 5 members 5 – 10 members Above 10 members

Q3) how do you regard insurance as?

Risk coverage tax savings Security

Q4) Are you aware of what insurance is all about?

No Yes

Q5) Are you aware of Max Life Insurance?

No Yes

Q6) which category of Max Life insurance plan have you preferred?

Investment gain plan protection gain plan

Child gain plan whole life plan

Pension plan

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Q7) What benefits do you prefer while choosing an insurance plan of Max life insurance?

Risk coverage additional benefit Maturity period sum assured

Q8) Are you satisfied with the services of Max life Insurance ?

No Yes

Q9) Has media been the source of information for various plans offered by Max life Insurance?

No Yes

Q10) Which source of media has provided information for the various plans offered by Max life insurance?

Newspaper Television Magazine Radio

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