A STUDY ON TRAINING PROGRAM DONE BY

MAX NEW YORK LIFE AT VARIOUS LEVELS

BY

CH.V.RADHIKA

ENROLL. NO- 5NB -11031

MBA-2005-2007

INC-GUNTUR

UNDER THE GUIDENCE OF

COMPANY GUIDE FACULTY GUIDE

Mr. M.VIJAY BHASKAR REDDY CH. HYMAVATHI

MAX NEW YORK LIFE INSURANCE INC

HIMAYATH NAGAR, HYDERABAD GUNTUR

1

DECLARATION

I hereby declare that this project work entitled “A STUDY ON TRAINING

PROGRAM DONE BY MAX NEW YORK LIFE AT VARIOUS LEVELS “ is my

work, carried out under the guidance of my faculty guide Ms. CH.

HYMAVATHI and my company guide Mr. M.VIJAY BHASKAR

REDDY. This report neither full nor in part has ever been submitted for

award of any other degree of either this university or any other university.

(CH. V. RADHIKA)

Roll no. 5nb – 11031

INC GUNTUR

2

CERTIFICATE

This is to certify that the Summer Internship Project titled “A STUDY

ON TRAINING PROGRAM DONE BY MAX NEW YORK LIFE AT

VARIOUS LEVELS”, a bonafide work of CH.V.RADHIKA is original

and has been done under my supervision in partial fulfillment of the

requirement for the award of M.B.A for the period of four months from 15,

April 2007 to 15, August 2007. This report neither full nor in part has ever

before been submitted for awarding of any degree of either this university or

any other university. I am pleased to say that her performance during the

period was extremely satisfactory.

Company Guide Faculty Guide

Mr. VIJAY BHASKAR REDDY Ms. HYMAVATHI

MAX NEWYORK LIFE INC Faculty Member

Hyderbad Guntur

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LETTER OF APPRECIATION

This is to certify that Ms CH.V. RADHIKA pursuing MBA

(2005 – 2007) From ICFAI National College – Guntur has

successfully completed his project “A Study on Training Program

Done By Max New York Life At Various Levels” from 15th April

2007 to 15th August 2007. We appreciate her commitment,

Determination and performance during the project and bound to be

valuable asset for any organization.

I am pleased to say her performance and Sincerity at work during

the period was Good.

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ACKNOWLEDGEMENT

It gives me immense pleasure to express my deep sense of

gratitude to Mr. T. SITA RAMAIAH, principal, ICFAI National College

GUNTUR, for his valuable guidance and consistent supervision through out

the course.

I am also thankful to Mr. Vijay Bhaskar Reddy, my

Company Guide of Max New York Life Insurance Company , Hyderabad,

for his valuable guidance for preparing the Final Report and also for

providing the necessary facilities.

I am extremely thankful to Ms. Ch. Hymavathi Faculty Guide of

ICFAI National College, for her timely guidance and support through out the

Final Report work. in the course of carrying out the project work.

Finally I am indebted to our other faculty members, my friends and my

parents who gave their full-fledged co-operation for successful completion

of my project.

It was a indeed learning experience for me.

NAME OF THE STUDENT : CH. V. RADHIKA

ENROLLMENT NO : 5NB11031

5

Executive Summary

This Report is an attempt to provide a detailed analysis of the process

of training program done by Max New York Life Insurance and benefits of

the training.

In my complete student internship program I met more than 90

employees. During this student internship program I came to know that,

knowledge based economy, training helps people to learn how to do things

differently or to do different things.

However, my survey suggests that maximum number of employees, in

the turbulent, fast changing world, effective training has never been more

important. Products are now increasingly knowledge intensive; for this,

employers are responsible for providing opportunities for continued

learning.

In my survey I found that 80% of employees are new to the job and

they must undergo the training program.

Finally, creating awareness of organization structure and its products

to the employee is very important to have individual as well as organization

growth. So it can be possible only when the employees go through the

training program.

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Contents

History of Insurance Sector 8

Company Profile 15

Project 22

Findings 48

Recommendations 49

Conclusion 50

On the job training 51

Objectives 52

Targets 53

Achievements 54

Limitations 56

Learnings 57

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Brief History of Insurance Sector in India

The insurance sector in India has come a full circle from being an open

competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-

degree turn witnessed over a period of almost 190 years.

The business of life insurance in India in its existing form started in India in

the year 1818 with the establishment of the Oriental Life Insurance

Company in Calcutta.

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 - 245 Indian and foreign insurers and provident societies taken over by

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the central government and nationalized. LIC formed by an Act of

Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore

from the Government of India.

The General insurance business in India, on the other hand, can trace its

roots to the Triton Insurance Company Ltd., the first general insurance

company established in the year 1850 in Calcutta by the British.

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

are:

1907 - The Indian 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

nationalized 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

9

Oriental Insurance Company Ltd. and the United India Insurance Company

Ltd. GIC incorporated as a company.

Indian Insurance Industry:

Learn About Insurance may be described as a social device to reduce or

eliminate risk of life and property. Under the plan of insurance, a large

number of people associate themselves by sharing risk, attached to

individual.

The risk, which can be insured against include fire, the peril of sea, death,

incident, & burglary. Any risk contingent upon these may be insured against

at a premium commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called

insurer undertakes in exchange for a fixed sum called premium to pay the

other party happening of a certain event.

Insurance is a contract whereby, in return for the payment of premium by the

insured, the insurers pay the financial losses suffered by the insured as a

result of the occurrence of unforeseen events.

With the help of Insurance, large number of people exposed to a similar risk

make contributions to a common fund out of which the losses suffered by

the unfortunate few, due to accidental events, are made good.

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Functions of Insurance

The functions of Insurance can be bifurcated into two parts:

Primary Functions

Secondary Functions

Other Functions

The primary functions of insurance include the following:

Provide Protection - 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.

Collective bearing of risk - Insurance is a device to share the 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:

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 cause 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:

Means of savings and investment - Insurance serves as savings and

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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'.

'India Insurance' growth was long overdue. Within 1st 12 months of

liberation of 'Indian Insurance Industry' 10 licenses for selling life insurance

products and 6 licenses for selling non-life products were issued to private

companies. The Public sector giant LIC started losing its market share at the

cost of stupendous growth of private players. Now 'India Insurance' industry

has more than a dozen private life insurance players and 9 private general

insurance companies. Aggressive and penetrative marketing strategy

coupled with wide product bandwidth was an instant success among the

ignorant masses. Most of the private companies registered more than 100%

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growth till then and are still continuing with such monstrous growth figures.

Although, 'Insurance in India' is not regarded as a basic need but it is getting

popular among semi urban to rural masses. Top rank private companies like

ICICI Prudential Life Insurance, Tata AIG, Bajaj Allianz etc are

aggressively researching and innovating products for huge untapped rural

'India Insurance' market. Collaboration with micro finance companies, post

offices, rural banks and village management authorities for selling insurance

is doing wonders.

Life insurance products covers risk for the insurer against

eventualities like death or disability. Non-life insurance products covers

risks against natural calamities, burglary, etc. They are not as popular as life

products in the ' Insurance India's' portfolio. Until very recently it had only

corporate buyers, but with natural disasters like, earth quakes, tsunamis,

storms and floods becoming more frequent and damaging there has been a

sudden spurt in sales of general insurance amongst individuals.

Consumerism of life style goods and modern amenities has also contributed

to its growth. With more awareness and wide bandwidth of insurance

product portfolio the growth for 'India Insurance' story will only get more

competitive and more affordable to all sections of Indian society.

Present Scenario

The Government of India liberalised the insurance sector in March 2000

with the passage of the Insurance Regulatory and Development Authority

(IRDA) Bill, lifting all entry restrictions for private players and allowing

foreign players to enter the market with some limits on direct foreign

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ownership. Under the current guidelines, there is a 26 percent equity cap for

foreign partners in an insurance company. There is a proposal to increase

this limit to 49 percent.

The opening up of the sector is likely to lead to greater spread and

deepening of insurance in India and this may also include restructuring and

revitalizing of the public sector companies. In the private sector 12 life

insurance and 8 general insurance companies have been registered. A host of

private Insurance companies operating in both life and non-life segments

have started selling their insurance policies since 2001.

Non-Life Insurance Market

In December 2000, the GIC subsidiaries were restructured as independent

insurance companies. At the same time, GIC was converted into a national

re-insurer. In July 2002, Parliamant passed a bill, delinking the four

subsidiaries from GIC.

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.

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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 companies not only provide risk cover to infrastructure

projects, they also contribute long-term funds. In fact, insurance companies

are an ideal source of long term debt and equity for infrastructure projects.

With long term liability, they get a good asset- liability match by investing

their funds in such projects. IRDA regulations require insurance companies

to invest not less than 15 percent of their funds in infrastructure and social

sectors. International Insurance companies also invest their funds in such

projects.

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.

Premium rates of most general insurance policies come under the

purview of the government appointed Tariff Advisory Commitee. For

Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the

premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates

are set in keeping with the committee's guidelines; and projects above Rs 15

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billion are subjected to re-insurance pricing. It is the last segment that has a

number of additional products and competitive pricing.

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.

Re-insurance business

Insurance companies retain only a part of the risk (less than 10 per cent)

assumed by them, which can be safely borne from their own funds. The

balance risk is re-insured with other insurers. In effect, therefore, re-

insurance is insurer's insurance. It forms the backbone of the insurance

business. It helps to provide a better spread of risk in the international

market, allows primary insurers to accept risks beyond their capacity, settle

accumulated losses arising from catastrophic events and still maintain their

financial stability.

While GIC's subsidiaries look after general insurance, GIC itself has

been the major reinsurer. Currently, all insurance companies have to give 20

per cent of their reinsurance business to GIC. The aim is to ensure that GIC's

17

role as the national reinsurer remains unhindered. However, GIC reinsures

the amount further with international companies such as Swissre

(Switzerland), Munichre (Germany), and Royale (UK). Reinsurance

premiums have seen an exorbitant increase in recent years, following the rise

in threat perceptions globally.

Life Insurance Market

The Life Insurance market in India is an underdeveloped market that

was only tapped by the state owned LIC till the entry of private insurers. The

penetration of life insurance products was 19 percent of the total 400 million

of the insurable population. The state owned LIC sold insurance as a tax

instrument, not as a product giving protection. Most customers were under-

insured with no flexibility or transparency in the products. With the entry of

the private insurers the rules of the game have changed.

The 12 private insurers in the life insurance market have already

grabbed nearly 9 percent of the market in terms of premium income. The

new business premiums of the 12 private players has tripled to Rs 1000

crore in 2002- 03 over last year. Meanwhile, state owned LIC's new

premium business has fallen.

Innovative products, smart marketing and aggressive distribution.

That's the triple whammy combination that has enabled fledgling private

insurance companies to sign up Indian customers faster than anyone ever

expected. Indians, who have always seen life insurance as a tax saving

18

device, are now suddenly turning to the private sector and snapping up the

new innovative products on offer.

The growing popularity of the private insurers shows in other ways.

They are coining money in new niches that they have introduced. The state

owned companies still dominate segments like endowments and money back

policies. But in the annuity or pension products business, the private insurers

have already wrested over 33 percent of the market. And in the popular unit-

linked insurance schemes they have a virtual monopoly, with over 90

percent of the customers.

The private insurers also seem to be scoring big in other ways- they

are persuading people to take out bigger policies. For instance, the average

size of a life insurance policy before privatization was around Rs 50,000.

That has risen to about Rs 80,000. But the private insurers are ahead in this

game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2

lakh- way bigger than the industry average.

Buoyed by their quicker than expected success, nearly all private

insurers are fast- forwarding the second phase of their expansion plans. No

doubt the aggressive stance of private insurers is already paying rich

dividends. But a rejuvenated LIC is also trying to fight back to woo new

customers.

The Insurance sector in India governed by Insurance Act, 1938, the

Life Insurance Corporation Act, 1956 and General Insurance Business

19

(Nationalisation) Act, 1972, Insurance Regulatory and Development

Authority (IRDA) Act, 1999 and other related Acts.

Insurance companies:

IRDA has so far granted registration to 12 private life insurance companies

and 9 general insurance companies. If the existing public sector insurance

companies are included, there are currently 13 insurance companies in the

life side and 13 companies operating in general insurance business. General

Insurance Corporation has been approved as the "Indian reinsurer" for

underwriting only reinsurance business. Particulars of the life insurance

companies and general insurance companies including their web address is

given below:

LIFE INSURERS Websites

Public Sector

Life Insurance Corporation of India www.licindia.com

Private Sector

Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in

Birla Sun-Life Insurance Company Limited www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com

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ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com

ING Vysya Life Insurance Company Limited www.ingvysayalife.com

Max New York Life Insurance Co. Limited www.maxnewyorklife.com

MetLife Insurance Company Limited www.metlife.com

Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com

SBI Life Insurance Company Limited www.sbilife.co.in

TATA AIG Life Insurance Company Limited www.tata-aig.com

AMP Sanmar Assurance Company Limited www.ampsanmar.com

Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com

GENERAL INSURERS

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Public Sector

National Insurance Company Limited www.nationalinsuranceindia.com

New India Assurance Company Limited www.niacl.com

Oriental Insurance Company Limited www.orientalinsurance.nic.in

United India Insurance Company Limited www.uiic.co.in

Private Sector

Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in

ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com

IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in

Reliance General Insurance Co. Limited www.ril.com

Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com

TATA AIG General Insurance Co. Limited www.tata-aig.com

Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com

Export Credit Guarantee Corporation www.ecgcindia.com

HDFC Chubb General Insurance Co. Ltd.

REINSURER

General Insurance Corporation of India www.gicindia.com

Company profile of MAX NEW YORK LIFE :

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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 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

certification. Max New York offers customized products tailored to suit

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

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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 invests significantly in its training program and

each agent is trained for 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 program 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.

It has established a wide agency distribution network with 172 offices

and representatives across 120 cities in India. The company has established

additional channel with 22 bancassurance relationships, corporate tie-ups

24

and a strong Direct Sales Team. Through its wide network of highly

competent life insurance agent advisors, flexible product solutions and

strong customer focus, Max New York life is creating a partnership for life

with its customers in India.

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 172 offices and representatives across 120 cities in

India.

Max New York Life, which has till date sold over 1.53 million

policies and recorded a sum assured of over Rs. 46,000 crore, has positioned

itself on the quality platform. The company has developed a strong corporate

governance model based on defined core values of caring, knowledge,

excellence and honesty. Its strategy is to establish itself as a trusted life

insurance specialist on the bedrock of quality of advice. 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. To achieve this the company will draw

on New York Life's demonstrated competence in developing and managing

a superior personal sales network. For the last 46 years consecutively, the

largest number of agents qualifying for membership to the Million Dollar

25

Round Table (MDRT) have been from New York Life. The MDRT is the

industry's most prestigious organization comprising the world's most

successful insurance agents. Max New York Life, a merit oriented and equal

opportunities employer, is looking for a few good men and women who will

spearhead the effort to realize this vision.

“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.”

“An ever expanding presence of Max New York Life offices across

India reinforces our commitment to serving the nation. We are extremely

pleased with our progress in the region and feel that opening an office in

Mysore would help us educate people about the true potential and benefits of

life insurance. As life insurance specialists, Max New York Life will

continue to help consumers make the right choices to meet their financial

goals, both for the short and long-term, through sound quality advice offered

by our agent advisors and a right mix of product offerings.” he added.

Max New York Life has been instrumental in changing the paradigm

of life insurance in India. It is the first life insurance company in India to

introduce cause related marketing.

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Children are at the very heart of Max New York Life's strategy. SOS

Children's Villages of India is internationally recognized for its work in

giving underprivileged children a wholesome life. The mission of SOS is "to

help orphaned and abandoned children, by providing them with a family, a

permanent home, education and strong foundation for an independent life."

It's mission ties in with Max New York Life's philosophy of helping people

secure the future of their near and dear ones.

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

Max New York Life Values and Beliefs

Excellence

"In every aspect of work. Ranging from the in-house training institute to the

detailed Personal Insurance Plan. Max New York Life is focused on

achieving the highest standards of quality in every aspect of their business".

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Honesty

"Is the heart of the Life Insurance business. Max New York believes that

above all, Life Insurance is based on trust. Transparency, Dependability and

Integrity will form the cornerstones of the Max New York Life experience."

Knowledge

"Is what makes experts. Max New York Life is focused on the Life

Insurance business. Perfectly combining global expertise with local

knowledge, Max New York Life is the Indian Life Insurance specialist."

Caring

"For the customer. Max New York Life is redefining the Life Insurance

paradigm to focus on the needs of the customers. The Max New York

service process is responsive, personalized, humane and empathetic."

Culture:

Our "in house culture recipe" has some of the finest ingredients going into

its making. Some of the more prominent aspects of our culture are stated

below:

Customer comes first

Do it right the first time

Bias for result oriented action

Financial strength and discipline

Clarity of purpose

International quality standards

Inclusive Meritocracy

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Learning opportunities

Fun at work

Commitment to published value system

29

Research Methodology:

The Research and Methodology adopted for the present study has

been systematic and was done in accordance to the objectives set which has

been detailed as below.

Research Definition

Research is a process in which the researcher wishers to find out the

end result for a given problem and thus the solution helps in future course of

action.

According to Redman & Mory research is defined as a “Systemized

effort to gain new knowledge”.

Research Design:

According to “Claire Seltiz”, a research design is the arrangement

of condition and analysis of data in manner that aims to combine relevance

to the research purpose with economy in procedure.

Nature of Research:

Research is basically of two types.

1. Descriptive research

2. Explorative research

1. Descriptive Research: These studies are concerned with describing the

characteristic of a particular individual or a group.

Determining sources of Data:

There are two main sources of data

1. Primary data

2. Secondary data

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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 was

prepared by the researcher.

Secondary Data: It consists of information that already exists somewhere

and has been collected for some specific purpose in the study. The secondary

data for this study is collected from various Japanese Management books .

Questionnaire: A set of questions containing a few Technical questions and

more number of Opinionated questions are prepared for the employees of

both Centralized and Decentralized sections of HR Department.

Sample Size: Total sample size is 90

Questionnaire Development:

Questionnaire is the most common instrument in collecting

primary data. In order to gather primary data from viewers.

The present questionnaire consists of following type of questions.

Open ended questions

Closed ended questions

Dichotomous questions

Multiple choice questions

Ranking question.

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Open ended questions: It has no fixed alternatives to which the answer

must conform. Thus, respondent answer in his/her own words at any length

they choose.

Closed ended questions: Closed ended questions have no other options

other than the selecting the one that close matches the respondent’s opinion

or attitude.

Dichotomous questions: A dichotomous questions refers to one, which

offers the respondents a choice between only two alternatives.

Multiple Questions: A multiple choice question refers to one, which

provides several sets of alternatives for the respondents’ choice.

Ranking questions: These questions are given when there are many points

to be considered and to be ranked in priority.

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Analysis of the project

Definition of Training:

The systematic development of the knowledge, skills and attitudes

required by an individual to perform adequately a given task or job. Training

refers to efforts that help enhance employee skills for carrying out the

present job. According to Edwin B Flippo, training is the act of increasing

knowledge and skills of an employee for doing a particular job.

Needs for training:

To improve the current job performance of employees

To familiarize employees with the policies and procedures of the

organization.

To enhance the creativity, adaptability and versatility of the

employees and to facilitate learning at the work place

To prepare employees for future job.

To change the skills, knowledge and attitudes of the employees on a

permanent basis.

To help employees manage their careers.

To maintain knowledgeable work force.

To gain competitive advantage through a knowledgeable work force.

To promote organizational growth through individual growth.

Areas of training:

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Company policies and procedures

Human relations training

Skill based training

Problem solving training

Onsite Workshops for Leadership Team

Employees need more than bosses... They need mentors: Professionals

skilled at assessing employee development needs and committed to guiding

employees toward professional success.

Team Leadership Workshop provides managers with proven

techniques for effective personnel management. By helping leaders

understand and address their employees' requirements, this interactive

seminar offers significant benefit to managers at all levels. New supervisors

gain a solid grounding in the concept of ''leadership,'' while more

experienced managers refresh their commitment to teaching and coaching

their team members.

This training program provides healthy perspectives for managers at

all levels, making it an ideal morale-boosting leadership development

experience for mixed groups of front-line supervisors and senior staff

members.

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Leadership Training for Success

All managers need methods. Leaders need to know the most effective

techniques for guiding teams, mentoring individuals, and validating the

results. Without solid methods, managers will revert use a one-size-fits-all

approach to leadership that reflects the leader's personality, rather than the

employees' needs.

Committed, mentoring leadership is essential to employee morale,

productivity, and retention.

A Results-Oriented Training Program

Team Leadership Workshop provides proven methods and

procedures for successful people management. Participants receive a step-

by-step plan for guiding each employee toward success.

This workshop includes elements of Frank Whyte's nationally

respected Team Building Workshops expanding upon that foundation to

help leaders:

Recognize each employee's personality preferences and supervisory

needs,

Align their leadership style with those of their bosses, colleagues, and

subordinates,

Develop competent and committed employees by mentoring and

guiding their employees toward success,

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Schedule their management responsibilities to ensure that nothing is

left to chance, and

Use practiced, real-world scenarios to resolve challenges and remove

barriers.

Training Program done by Max New York Life

Training is must for every individual when he enters into the

organization. Even though the candidate has experience he also should get

training. Why because the organization culture, values and beliefs are

different from one organization to other. That’s why the training program

plays a key role in every organization.

Training program following by Max New York Life Insurance is different at

various levels.

Mainly in training program the company concentrates on sales managers,

agents, operations executives and telecallers.

Training program for sales managers:

The training program duration is 15 – 20 days

They get training on product knowledge.

Motivating and encouraging Advisors

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Training program for Advisors:

The training program duration is 15 – 20 days

They get training on product knowledge

How to convince the people.

Objection Handling

Training program for operations executives:

They will get training on customer database files

Taking care of the customer files

Well trained in product information and documentation

Renewals will be informed periodically.

Required skills for employees in Max New York Life Insurance:

Interpersonal skills

Excellent communication skills

Understanding nature

Aggressiveness

Convincing skills

Ability to motivate others

Interest to learn

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Analysis of office staff who are having sufficient Knowledge on life

Insurance .

PROFESSIONNo.of Persons

New Advisors8

Advisors 54

Telecallers 12

Marketing Executives 26

Diagram of the table:

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Analysis of the table:

The above chart showing that advisors only have more knowledge than

telecallers, marketing executives and new advisors. Advisors will complete

the deals. But after that every thing will take care by operations executives

and telecallers. With out sufficient knowledge these both people cant work

well. When the telecaller is calling to customer for renewal premium that

person should have a knowledge how the premium should calculate, and

they should know any extra charges for late payment, and how much grace

period will be… these things should know even telecallers and operations

executives too.

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FINDINGS

Trained employees can work more efficiently.

Training makes employees more loyal to an organization.

Training makes an employee more useful to a firm.

Training enables employees to secure promotions easily. They can

realize their career goals comfortably.

Employees can avoid mistakes on the job. They can handle jobs with

confidence. They will be more satisfied on their jobs.

Training can contribute to higher production and fewer mistakes,

greater job satisfaction and lower employee turnover. Also, it can

enable employees to cope up with organizational, social and

technological change.

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RECOMMENDATIONS

Create awareness: The Company has to take care of awareness

creation about the products and services among the Advisors/Agents

Charges: The Company has to reduce the mortality and administration

charges.

The company has to give periodic training.

Product promotion strategies should be improved.

Company should consider the present competition and should act

according to the customer needs.

It Should be like long term training like Fundamental Carrier class ,

Basic Carrier class which helps the advisors in different stages.

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CONCLUSION

In this Knowledge-based economy, training helps people to learn how

to do the things differently or to the different things. Products are now

increasingly knowledge-intensive; for this employers are responsible for

providing opportunities for continued learning. To cope with the challenges

and competitiveness in the world, every organization needs the services of

trained persons for performing the activities in the systemic way. So,

training program plays a key role in individual as well as organizational

performance.

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ON THE JOB TRAINING

INTRODUCTION

My OJT is to finding the employee potentiality in their concern

department. And I have to find how training will helpful for organization as

well as individual growth.

I have to identify the employees who needs training program and I

have to find how can company make the employees to show interest for

attending the training program.

I have to submit the results what can company get after giving the

training to the employees.

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OBJECTIVES

The main objective of doing this project is to study employee attitude

regarding the training program and the benefits of the training program.

During this student internship program period I have to achieve some thing

which is helpful to the development of myself and some value addition to

the company. Getting more business to the company because of training

program is the main objective. It gives me good exposure of myself and

creating good impression of corporate mind.

The main objective of this study is to know the employee opinion

regarding the training program.

To find out what is the training needs in concern area.

To find out the benefits of the training program to the employee and

to the organization.

To find out what is the result for the organization because of giving

the training to the employee.

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TARGETS/ TASKS

I have to approach the employee who is working for max New York

life insurance Company and should find out are they feeling training will be

helpful or not to increase of the performance of the employee. After that I

have to find out what are the things should we cover in the training program

depending upon the concern department.

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ACHIEVEMENTS

I promoted Max New York Life products during my SIP period. I

have showing them as monthly wise as follows,

In The Month of MAY

1st week Training class on IRDA norms and why

Insurance is needed

2nd week Training class, for different products of

Max New York Life

3rd week

4th week 4 leads

In The Month of JUNE

1st week 3 leads

2nd week 4 leads

3rd week 4 leads

4th week 4 leads

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In The Month of JULY

1st week 4 leads

2nd week 6 leads

3rd week 3 lead

4th week 4 leads

In The Month of August

1st week Training program was conducted to

telecallers who are dull in

Communication skills

2nd week Training program done to 4 advisors

3rd week 3 leads

4th week 6 leads

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LIMITATIONS

1. The survey was conducted with in the company.

2. And in survey I have to interact with the employees. But the employees

will be busy their works.

3. Getting the good response from the employee will be difficult because of

their busy schedule.

4. Time to interact with employees inside the branch is not sufficient.

5. Time Period of my OJT is one of the limitations.

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LEARNINGS

Learning’s in the on the job training

1) Importance of the training program

2) How the training program will help for the individual as well as

organizational growth

3) The way to improve communication skills.

4) The way to behave people in corporate world.

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APPENDIX

1. Name:

2. Designation:

3. What is your opinion on training?

Good Very good Bad Time waste process

4. Do you feel that training will helpful for individual growth?

Yes NO

5. Did you satisfy with training what company conducted here?

Yes No

6. Is there any improvement in performance after getting the

training?

Yes No

7. Who needs much knowledge regarding company and product?

Agents Tele callers Operations executives All

8. In which areas employee needs training?

Company policies and procedures

Skill based training

Problem solving skills

All of the above

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REFERENCES

1) Lynton, R.P. and Pareek, U. “Training for development”, 2nd Ed., New

Delhi: Vistaar publication, 2002.

2) Bhatnagar, O.P. “Evaluation methodology for training”, New Delhi:

Oxford and IBH publishing co.pvt.ltd.

3) Rae, L. “The art of training and development, effective planning”.

Vol. 1, New Delhi.

4) Tannenbaum, S. “A strategic view of organizational training and

learning”.

5) A hand book of human resource management practice, 8th ed., 2001.

6) Personnel management, Mc. Graw Hill, 6th ed., 1981.

7) www.maxnewyorklife.com

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