CONTENTS

Serial No.
1.

Particulars
Introduction

Page No.
2

2.

History of Insurance

3.

Industry Profile

13

4. Research Design

19

5. Company Profile

22

6.

Research Methodology

34

7.

Data analyses and interpretation

38

8. Hypothesis Testing

54

9. Observation and findings

57

10. Recommendation and Suggestion

59

11. Conclusion

61

Bibliography

63

Annexure

65

Chapter-1 INTRODUCTION

Introduction of Insurance
Insurance is a tool which facilitates a small number is compensated out of funds (premium payment) collected from plenteous. Insurance companies pay back for financial losses arising out of occurrence of insured events, e.g. in personal accident policy death due to accident policy death due to accident, in fire policy the insured events are fire and other allied perils like riot and strike, explosion, etc. Hence, insurance is safeguard against uncertainties. It provides financial recompose for losses suffered due to incident of unanticipated events, insured within policy of insurance. Moreover, through a number of acts of Parliament, specific types of insurances are legally enforced in our country, e.g. third party insurance under Motor Vehicle Act, public liability insurance for handlers of hazardous substances under Environment Protection Act, etc. 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 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 January1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

DEFINATION OF INSURANCE

Insurance may be defined as a contract wherein one party (the insurer) agrees to pay to the other party (the insured) or his beneficiary, a certain sum upon a given contingency (the risk) against which insurance is required. Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. Insurance that guarantees a specific sum of money to a designated beneficiary upon the death of the insured or to the insured if he or she lives beyond a certain age.

The contract is valid for payment of the insured amount during:

The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner.
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By and large, life insurance is civilizations partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the lifepath of every person: 1. That of dying prematurely leaves a dependent family to fend for itself. 2. That of living till old age without visible means of support.

Chapter-2 HISTORY OF INSURANCE

HISTORY OF INSURANCE
In some sense it can be said that insurance appears simultaneously with the appearance of human society. There are two types of economies in human societies: money economies (with markets, money, financial instruments and so on) and non-money or natural economies (without money, markets, financial instruments and so on). The second type is a more ancient form than the first. In such an economy and community, insurance can be seen in the form of people helping each other. For example, if a house burns down, the members of the community help build a new one. Should the same thing happen to one's neighbors, the other neighbors must help Otherwise; neighbors will not receive help in the future. This type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread (for example countries in the territory of the former Soviet Union). Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in which insurance is part of the financial sphere), early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants traveling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Samurai, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen. Achaemenian monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrick (Achaemenian gold coin weighing 8.35-8.42) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices. The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. Jahez, a historian and writer, writes in one of his books on ancient Iran: "[W]henever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much."

A thousand years later, the inhabitants of Rhodes invented the concept of the 'general average'. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinkage. The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called "benevolent societies" which cared for the families and paid funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies. Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed. Toward the end of the seventeenth century, London's growing importance as a center for trade increased demand for marine insurance. In the late 1680s, Mr. Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market (note that it is not an insurance company) for marine and other specialist types of insurance, but it works rather differently than the more familiar kinds of insurance. Insurance today can be traced to the Great Fire of London, which in 1666 devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established England's first fire insurance company, "The Fire Office," to insure brick and frame homes. The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732.

Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses. In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual state insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioners' organization. In recent years, some have called for a dual state and federal regulatory system for insurance similar to that which oversees state banks and national banks. In the state of New York, which has unique laws in keeping with its stature as a global business center, former New York Attorney General Eliot Spitzer was in a unique position to grapple with major national insurance brokerages. Spitzer alleged that Marsh & McLennan steered business to insurance carriers based on the amount of contingent commissions that could be extracted from carriers, rather than basing decisions on whether carriers had the best deals for clients. Several of the largest commercial insurance brokerages have since stopped accepting contingent commissions and have adopted new business models.

TYPES OF INSURANCE
The earliest traces of insurance in the ancient world are found in the form of marine trade loans or carriers , contracts, which included an element of insurance. Evidence is on record that arrangemts embodying the idea of insurance were in Babylonia and India at quite an early period CLASSIFICATION ON THE BASIS OF NATURE OF INSURANCE LIFE INSURANCE FIRE INSURANCE MARINE INSURANCE SOCIAL INSURANCE MISCELLANEOUS INSURANCE

CLASSIFICATION OF INSURANCE FROM BUSINESS POINT OF VIEW LIFE INSURANCE GENERAL INSURANCE CLASSIFICATION ON BASIS OF NATURE OF INSURANCE 1) LIFE INSURANCE

Life insurance may be defined as a contract in which the insurer, in consideration of a certain premium, either in a lump sum or by other periodical payments, agrees to pay to the assured, or to the other person for whose benefit the policy is taken, the assured sum of money, on to the person for whose benefit the policy is taken, the assured sum of money, on the happening of a specified event contigent on the human life or at the expiry of certain period. For life insurance, the risk ensured against is death. The life insurance company pays the sum assured to the insured in the event of death. There are several types of insurance products / policies, which have been discussed.

At present, life insurance enjoys maxium scope because the life is the most important property of the society or an individual. Each and every person requires the insurance. This insurance provides protection to the family at the premature death or gives adequate amount at the old age when earnings capacities are reduced. The insurance is not only a protection but is a sort of investment because a certain sum is returnable to the insured at the death or at the expiry of a period 2) FIRE INSURANCE

A fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by fire during a specified period. Normally, the fire insurance policy is for a period of one year after which it is to be

10

renewed from time to time. A claim for loss by fire must satisfy the following 2 conditions: o Ther must be actual loss; and o Fire must be accidental and non-intentional

The risk covered by a fire insurance contract is the loss resulting from fire or some cause, which is the proximate cause of the loss. If damage is caused by overheating by overheating without ignition, it will not be regarded as a fire loss within the meaning of fire insurance and the loss will not be recoverable from the insurer 3) MARINE INSURANCE

A marine insurance contract is an agreement where by the insurer undertakes to indemnify The insured in the manner and to the extent there by agreed against marine losses .marine insurance is an arrangement by which the insurer undertakes to compensate the owner of a ship or cargo for complete or partial loss at sea. Marine insurance provides protection against loss of marine perils. The marine perils are collision with rock, or ship attacked by enemies, fire and capture by pirates, etc. These perils cause damage, destruction or disappearance of the ship and cargo and nonpayment of freight. So, marine insurance insures ship (hull), cargo and freight. 4) SOCIAL INSURANCE

Social insurance has developed to provide economic security to weaker sections of the society who are unable to pay the premium for adequate insurance. Pension plans, disability benefits, unemployment benefits, sickness insurance, and industrial insurance are the various forms of social insurance. With the increase of the socialistic ideas, the social insurance is an obligatory duty of the nation. 5) MISCELLANEOUS INSURANCE

The process of fast development in the society gave rise to a number of risks or hazards. To provide security against such hazards, many other types of insurance also have been developed

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CLASSIFICATION FROM BUSINESS POINT OF VIEW 1) 2) LIFE INSURANCE GENERAL INSURANCE

1) LIFE INSURANCE- Life insurance may be defined as a contract in which the insurer, in consideration of a certain premium, either in a lump sum or by other periodical payments, agrees to pay to the assured, or to the person for whose benefit the policy is taken, the assured sum of money, on the happenings of a specified event contingent on the human life are at the expiry of certain period. 2) GENERAL INSURANCE-General insurance business refers to fire, marine and miscellaneous insurance business whether carried on singly or in combination with one or more of them.

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Chapter-3 INDUSTRY PROFILE

13

INDUSTRY PROFILE
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. MAX INIDA LTD. Max India Limited is a multi-business corporate, driven by the spirit of enterprise and focused on people and service oriented businesses. The Companys vision is to be one of Indias most admired corporates for Service Excellence. It Protects Life through its Life Insurance subsidiary Max New York Life, a joint venture between Max India and New York Life, a Fortune 100 company; Cares for Life through its Healthcare company, Max Healthcare, a subsidiary of Max India Limited; Enhances Life through its Health Insurance company, Max Bupa Health Insurance, a joint venture between Max India and Bupa Finance Plc., UK which is set to launch after statutory approvals; and Improves Life through its Clinical Research business, Max Neeman, a fully owned subsidiary of Max India. From its past, Max India continues its interest in manufacture of Speciality Products for the packaging industry. Max India Groups consolidated turnover for half year ended Sept 09 was Rs. 4166 crore. The consolidated operating revenue was Rs. 2543 Crore, a growth of 23% over the same period last year. The Group is on a high growth path, with over 700 offices across around 400 locations in the Country and with people strength of 100,000+ persons as on 30 th Sept 2009.

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NEW YORK LIFE LLC New York Life Insurance Company, (www.newyorklife.com) a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Lifes family of companies offer life insurance, annuities and long-term care insurance. New York Life Investment Management LLC provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds. The mission of New York Life is to maintain its superior 'financial strength', adhere to the highest standards of 'integrity' and demonstrate 'humanity' by treating its customers, agents and employees with compassion, consideration and respect. New York Life is one of the largest and strongest life insurance companies in the world with more than USD$215 billion assets under management and has received among the highest ratings for financial strength from the life insurance industry's principal rating agencies: A.M. Best (AA+), Standard & Poor's (AA+), Moody's (Aa1), Fitch (AAA). According to Moody's, "New York Life's rating reflects the company's good quality investment portfolio, ample liquidity, and sound capitalization, as well as the good growth potential of its international business. As a leader in the insurance industry, New York Life continues to bring to its operations new management concepts, advanced technologies, new distribution and training systems and innovative insurance products

Some of the Industry Firsts

First company to provide Freelook period of 15 days to the customer. This was later made mandatory by the regulator First company to start toll free line for agent services First and the only life insurance company in India to implement Lean methodology of service excellence in service industry First life insurance company in India to provide various services to the agents and customers over phone

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 First Indian life insurance company to start service center at the regional level First life insurance company in India to receive ISO 9001:2000 certification First life insurance company to be awarded CII-EXIM Bank commendation certificate for Strong Commitment to Excel.

HOW NEW YORK LIFE ENTERED THE INDIAN MARKET:-

New York Life International, INC., a Fortune 100 company, decided to select JOINT VENTURE as a medium to enter into the market of India. It has chosen MAX INDIA LTD., one of the Indias leading multi-business corporations. Through its wide network of highly competent wide network of highly competent agent advisors and flexible product solutions, MYNL is creating a partnership for life with its customers in INDIA to meet their life stage needs..

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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 Birla Sun-Life Insurance Company Limited HDFC Standard Life Insurance Co. Limited ICICI Prudential Life Insurance Co. Limited ING Vysya Life Insurance Company Limited Max New York Life Insurance Co. Limited MetLife Insurance Company Limited SBI Life Insurance Company Limited TATA AIG Life Insurance Company Limited AMP Sanmar Assurance Company Limited Dabur CGU Life Insurance Co. Pvt. Limited www.allianzbajaj.co.in www.birlasunlife.com www.hdfcinsurance.com www.iciciprulife.com www.ingvysayalife.com www.maxnewyorklife.com www.metlife.com www.sbilife.co.in www.tata-aig.com www.ampsanmar.com www.avivaindia.com

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GENERAL INSURERS Public Sector National Insurance Company Limited New India Assurance Company Limited Oriental Insurance Company Limited United India Insurance Company Limited Private Sector Bajaj Allianz General Insurance Co. Limited ICICI Lombard General Insurance Co. Ltd. IFFCO-Tokio General Insurance Co. Ltd. Reliance General Insurance Co. Limited Royal Sundaram Alliance Insurance Co. Ltd. TATA AIG General Insurance Co. Limited Cholamandalam General Insurance Co. Ltd. Export Credit Guarantee Corporation REINSURER General Insurance Corporation of India www.gicindia.com www.bajajallianz.co.in www.icicilombard.com www.itgi.co.in www.ril.com www.royalsun.com www.tata-aig.com www.cholainsurance.com www.ecgcindia.com www.nationalinsuranceindia.com www.niacl.com www.orientalinsurance.nic.in www.uiic.co.in

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Chapter-4 RESEARCH DESIGN

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Research Design
Research design tells us about which tools & techniques are used to find the results in a better way. It is used to describe the market phenomena while trying to determine the association among variables.

Title of the Study SALES PROCESS FOR MAX NEW YORK LIFE INSURANCE CO. LTD. Problem Statement
A sales process, also known as a sales tunnel or a sales funnel, is a systematic approach to selling a product or service. the argument that no process means no success is usually accurate especially when you are dealing with the highly complex science of revenue generation. No other business process is more highly scrutinized than the sales process.We train around it. We strategize and plan around it. We project and allocate budget around it.Frankly, the sales process is the most pivotal part of any business. Most process problems are really people problems. People make mistakes. People have personal issues that creep into their professional lives. They make bad, scared decisions because of past times when they got hurt.Quite a lot of time our projections for success are based on when we want to be successful not when it is likely to occur. It takes time (sometimes lots and lots of time) for a dream and a great process to turn out to be successful

OBJECTIVE
Main objective of the research is to have an analysis of Max New York life insurance Company Ltd. Selling process. To accomplish this objective it has been divided into five. To determine reasons behind opting for an insurance. To know the most preferred policy. To determine customers perception towards private insurance companies and their expectation form private insurance companies. To determine the feedback on services provided by an insurance agent. To study the types of benefits provided by insurance services.
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SCOPE OF THE WORK

Project Report will cover the point of Selling process of Max New York Life Insurance Company Ltd. Project Report will play major role for investors in understanding the concept and recent reforms in the field of life insurance policy of Max New York Life Insurance Company Ltd. Project report will be related to the investors approach towards Life Insurance Policy. People of age between 18 to 60 and above will be covered in the survey. Area will be limited to Bilaspur [C.G.]. Project report will help the companies and other related entities to understand the approach of the investors which will help them to formulate their target and marketing strategies.

LIMITATIONS
The main limitation faced while conducting the research was the availability of the faculty members at the training institute of MNYL . It was very difficult to be able to meet them personally, since most of them were busy with the hectic training schedule.

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Chapter-5 COMPANY PROFILE

22

Company Profile

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. 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 programme spread over 500 hours in two years. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and the agents have the highest productivity among private life insurers. 201 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2005. MDRT is an exclusive congregation of the worlds top selling insurance agents and is internationally recognized as the standard of excellence in the life insurance business. Having set a best in class agency distribution model in place, the company is spearheading a major thrust into additional distribution channels to further grow its business. The company is using a five-pronged strategy to pursue alternative channels of distribution. These include the franchisee model, rural business, direct sales force involving group insurance and telemarketing opportunities, banc assurance and corporate alliances.
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Max New York Life offers a suite of flexible products. It now has 26 life insurance products and 8 riders that can be customised to over 400 combinations enabling customers to choose the policy that best fits their need. Max New York Life was among the top 25 companies to work with in India, according to 2003 Business World magazine, "Great Workplaces In India", Max New York Life was ranked at the 20th position. This survey is the local version of the "Great Places to Work" survey carried out every year in 22 countries. Max New York Life among top five most respected private life insurance companies in India according to a 2004 and 2006 Business World survey.

Distribution
Max New York Life Insurance has multi-channel distribution spread across the country. Agency distribution is the primary channel complemented by partnership distribution, bancassurance, alliance marketing and dedicated distribution for emerging markets. The Company places a lot of emphasis on its selection process for agent advisors, 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. The company currently has more than 71,000 agent advisors at 676 offices across 389 cities. The company also has 50 tie-ups with banks, 30 partnership distribution relationships Max New York Life has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. The company has 139 offices dedicated to rural areas.

Max New York Life Insurance Co. LTD. Bilaspur

Ghanshyam Chambers Vyapar Vihar Main Road Bilaspur 495001 (C.G.)

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Max New York Life Office Networks

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ORGANIZATION CHART

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

MISSION
Become one of the top quartile life insurance companies in India Be a national player Be the brand of first choice Be the employer of choice Become principal of choice for agents

VALUES Knowledge:
Knowledge leads to expertise; and our expertise is in helping people protect themselves. Perfectly combining global expertise with local knowledge, we are India's life insurance specialist. Max New York Life believes that for knowledge to be of value it must be focused, current, tested and shared.

Caring:
Max New York Life is redefining the life insurance paradigm by focusing on customers first. The service process is responsive, personalized, humane and empathetic. Every individual who represents the company is for us our brand champion.

Honesty:
Honesty is the heart of the life insurance business. It is all about trust. Transparency, integrity and dependability form the cornerstones of the Max New York Life experience. The company ensures that everyone who represents the brand carries a promise : we care in word as well as deed.

Excellence:
Excellence at Max New York Life implies the ability to perform at a consistently high level. Focused on the value of continuous improvement in people, processes and the organization, the company strives for the highest standards of quality in every aspect of its business.

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ACHEIVEMENTS
Max New York Life is the first life insurance company in India to be awarded the IS0 9001:2000 certification. Max New York Life was among the top 25 companies to work with in India, according to 2003 Business World magazine, "Great Workplaces In India", Max New York Life was ranked at the 20th position. This survey is the local version of the "Great Places To Work" survey carried out every year in 22 countries. Been among top five most respected private life insurance companies in India according to a 2004 and 2006 Business World survey. Have truly built an enviable sales force. With 345 agents becoming members of the MDRT in 2006, Max New York Life has moved up to 21st rank in MDRT global list.

Awards
BT Mercer Ranked No7 in the Best companies to Work For Awarded the Gallup Great Work Place Award 2009 CII Exim Bank Commendation Certificate for Business Excellence 2008 Recognized as a Superbrand Recipient of 2008 CIO 100 Award for technology implementation Golden Peacock Award for Innovation 2008 Among the top 25 companies to work for in India, according to Business world 2003 Great Workplaces of India Among the top five most respected insurance companies in India as per Business world 2004 & 2006 survey Won Indo-American Corporate Excellence Award for Best Indo-US company in Financial Services Category in 2006 Received Best Six Sigma Project award at Sakal Six Sigma Excellence Awards 2006 Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by Asia Insurance Review

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VARIOUS PRODUCTS OF MNYL INSURANCE

Max New York Life Insurance offers a suite of flexible products. It now has 25 individual life and health insurance products and 8 riders enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 7 riders in group insurance business

Life 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 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.

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.

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
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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.

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.

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

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SALES PROCESS IN MAX NEW YORK LIFE

NAME NA GATHERING

QUALIFYING NAMES

FIXING APPOINTMENT

PROBLEM

NEED ANALYSIS

FACTS FINDING

SOLUTION

CLOSURE

REFERENCES

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COMPETITION INFORMATION COMPETITORS: 1. ICICI LIFE INSURANCE 2. LIFE INSURANCE CORPORATION 3. AVIVA LIFE INSURANCE 4. MET LIFE 5. BAJAJ ALLIANZ 6. BIRLA LIFE INSURANCE

SWOT ANALYSIS OF MAX NEW YORK LIFE

STRENGTHS
Knowledge based Being quality conscious rather than quantity oriented Providing in-house training to advisors rather than online training Cost effective organization Persuasiveness of customer service representative to address the problems. Effective customer Personal consulting for customized policy. Perceived financial loyalty programmers. Customized policies that cover the specific terminal disease.

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WEAKNESSES
Less Brand Awareness Time consuming ( in picking advisors) Process Oriented( process are too lengthy)

Fewer suggestions in terms of precautionary measures for avoiding perils. Are pulled by the engine of powerful brands like TATA AIG and Bajajallianz.

OPPORTUNITIES
It can enter in the General insurance sector. Opportunity in the rural sector as there is an under-penetrated insurance market in rural sector.

Relative market potential in not only the rural markets but also the semi-urban markets. Better customer services like utmost promptness in issuance of the policy, giving cheque pick up facilities and not making customers waiting for months. Making more loyal customers and attracting other customers with better service.

THREATS
LIC being the major market share holder Competitors in the private sector

With players like SBI Life and ICICI Prudential spending lot in advertisements, it may take away the market. Focusing more on innovating new products takes the fruitfulness out of good products. Less number of agents compared to other companies leading to a bad distribution network.

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Chapter-6 RESEARCH METHODOLOGY

34

RESEARCH METHODOLOGY
TITLE: To Study Sales process for Max New York Life Insurance Company Ltd.. TITLE JUSTIFICATION: The above title is self explanatory. The study deals mainly with studying the Selling pattern in the insurance industry with a special focus on Max New York life

Insurance. The various segments of the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also studied. SCOPE OF THE STUDY A big boom has been witnessed in Insurance Industry in recent times. A large number of new players have entered the market and are trying to gain market share in this rapidly improving market. The study deals with Max New York in focus and the various segments that it caters to. The study then goes on to evaluate and analyze the findings so as to present a clear picture of trends in the Insurance sector. SIGNIFICANCE TO THE INDUSTRY: This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.

35

SIGNIFICANE FOR THE RESEARCHER: To facilitate and provide useful information for the study of the company and the insurance industry and also provide recommendations for Max New York Life. RESEARCH DESIGN NON-PROBABILITY EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behavior, through this questionnaire. SAMPLING METHODOLOGY Sampling Technique: Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judemental and convinent. Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees, Self Employed etc. Sample size: The sample size was restricted to only 100, which comprised of mainly peoples from different regions of Bilaspur due to time constraints.

36

Sampling Area: The area of the research was Bilaspur, India.

1. 2.

Sample size Sample unit

100 MAX NEW YORK LIFE INSURANCE COMPANY LTD.

3. 4. 5.

Universe Research type Statistical method tools

Bilaspur city Descriptive research and Chi- Square Test

6. 7

Primary data Secondary data

Questionnaire Internet

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Bilaspur and does not necessarily shows a pattern applicable to all of Country. 2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

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CHAPTER 7 DATA ANALYSIS & INTERPRETATION

38

DATA INTERPRETATION & ANALYSIS

Personal detail

Classes (Age) 18-25 25-35 35-45 45-55 55 and above

No of Respondents 29 40 22 8 1

[Fig 1]
45 40 35 30 25 20 15 10 5 0 18-25 25-35 35-45 45-55 55 And Above No of Respondents

ANALYSIS Above diagram consists five classes of different age groups. Here 29 customers belong to 18-25 age groups, 22 customers fall in the age group 35-45 years. Other 8 customers comes in the class 45-55 years the age group of 25-35 consists 40 customer reaming customer is in age group 55 and above. Here majority of customer belong to the group 25-35 years.

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1. Do you think is it essential to have Life Insurance? YES NO

Yes No. of Respondents 90 % of Respondents 90

No 10 10

Total 100 100

[Fig 2]
100 90 80 70 60 50 40 30 20 10 0 yes no 10% No. of Respondentss 90%

ANALYSIS
To this question 90% consumers reported YES and 10% consumers reported NO.

40

2. Types of insurance policy respondents have Policy Type Life Policy Non Life Policy Both No. of Respondents 75 25 45 Share (%) 75 25 45

[Fig 3]
80 70 60 50 40 30 20 10 0 Life policy Non Life Policy Both 25% 45% No. of Respondents 75%

ANALYSIS
75% of the respondents have only Life Insurance Policy. 25% of the respondents have only Nonlife Policy, while 45% of the respondents have both.

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3. Which are the companies you invested your money for Life Insurance? Companies Max New York Life Insurance LIC Bajaj Allianz Tata AIG Kotak Mahindra Life Insurance HDFC Life Insurance ICICI Prudential Life Insurance SBI No. of Respondents 37 22 7 4 7 19 4 % of Respondents 37 22 7 4 7 19 4

SBI 4% ICICI Prudential Life Insurance 19%

[Fig 4]

HDFC Life Insurance 7% Kotak Mahindra Life Insurance 4% Tata AIG 7%

Max New York Life Insurance 37%

LIC 22%

ANALYSIS From the above figure we come to know that customer are also investing money in other life insurance companies. The major player in insurance is the Max New York 37% holding total sample. The second LIC holding 22% . The third major player ICICI is holding 19%. HDFC and AIG are having equal share of 7%, Kotak Mahindra Life Insurance & & SBI are having 4%.

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4. Benefits of insurance received by respondents Benefits Cover Future Uncertainty Tax Deductions Future Investment TOTAL No. Of Respondents 55 20 25 100 Share (%) 55 20 25 100

[Fig 5]

Future Investment 25% Tax deducations 20% cover future Uncertainty 55%

ANALYSIS 55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.

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5. Why did you choose Max New York Life Insurance? No of Respondents ROI Peer Pressure Tax Benefit Security /safety Low Premium TOTAL 31 15 20 24 10 100 % Of Respondents 31 15 20 24 10 100

[Fig 6]
Low Premium 10%

ROI 31%

Security / Safety 24% Peer Pressure 15%

Tax Benefit 20%

ANALYSIS The above diagram shows 31% of respondents choose because of good returns, 15% because of peer pressure and 20% for tax benefit, 24% for security/safety, remaining 10% for low premium.

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6. Which features of insurance policy that attracted you to buy it? FEATURE Money Back Guarantee Larger Risk Coverage Easy Access to Agents Low Premium Companys Reputation TOTAL NO.OF RESPONDENTS 15 37 7 30 11 100 SHARE (%) 15 37 7 30 11 100

company,s Reputation 11%

[Fig 7]

Money Back Guarantee 15%

Low Premium 30%

Larger Risk coverage 37%

Easy Access to Agents 7%

ANALYSIS Majority of the respondent (37%) found larger risk coverage as the most attracted feature of the all. Minimum respondents (7%) opted for easy access to agents.

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7. People perception about insurance

Response A saving tool A tax saving device A tool to protect your family

No. Of Respondents 81 74 100

Share (%) 81 74 100

[Fig 8]
120 100 100 81 80 60 [Fig 8] 40 20 0 A Saving Tool A Tax Saving Device A Tool to Protect Your Family 74

ANALYSIS 81% of the respondents have perception of Insurance being a saving tool. And 74% of the respondents have perception of Insurance being a tax saving device. But 100% of the respondents are with the view that Insurance is a tool to protect your family.

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8. Satisfaction of respondents with respect to policy Response Satisfied Not satisfied Not Responded Total No. Of Respondents 60 40 0 100 Share (%) 60 40 0.0 100

[Fig 9}

Not Responded 0%

Not Satisfied 40% Satisfied 60%

ANALYSIS 60% of the respondents are more or less satisfied with their existing policy. 40% of the respondents are not satisfied with their existing policy. In this case all of those who have taken a policy have responded.

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9. Satisfaction of +ve respondents with respect to service agent Response Satisfied Not satisfied Not Responded Total No. Of Respondents 44 54 2 100 Share (%) 44 54 2 100

[Fig 10}
Not Responded 2%

Satisfied 44% Not Satisfied 54%

ANALYSIS 44% of the respondents are satisfied with their existing service agent. 54% of the respondents are not satisfied with their existing insurance agent. All of those who have taken a policy have responded only 2% have not responded.

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10. Number of respondents paying tax Response Paying tax Not paying tax Total No. Of Respondents 100 0 100 Share (%) 100 0 100

[Fig 11]
Not Paying Tax 0%

Paying Tax 100%

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

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11. How will you rate the services given by Max New York Life Insurance?

Poor Average Good Excellent Outstanding TOTAL

No of Respondents 3 30 47 12 8 100

% Of Respondents 3 30 47 12 8 100

[Fig 12]
Outstanding Poor 3% 8%

Excellent 12%

Average 30%

Good 47%

ANALYSIS Out of 100 respondents 47% have ratted Max New York Life Insurance services as good and 30% have ratted as average. And remaining 12% have ratted as Excellent.

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12. What difference you find between Max new York & your previous Insurance provider. No of Respondents 21 15 36 28 100 % Of Respondents 21 15 36 28 100

Good Returns Effective Service/liquidity Tax Planning Security/ Safety Benefit TOTAL

[Fig 13]

security/ Safety benefit 28%

Good Returns 21%

effective service/liquidity 15% Tax planning 36%

Note. Some of customers are having more than one plan more Benefit are expected in one plan. Total surveys of customers are100.

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13. Do have any suggestion for Max New York Life Insurance? YES NO

No of Respondents % Of Respondents

YES 78 78

NO 22 22

TOTAL 100 100

[Fig 14]

No 22%

Yes 78%

ANALYSIS To this question 78 consumers reported YES and 22 consumers reported NO

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14. In future, will you purchase policies from max New York Insurance?
YES NO

No of Respondents % Of Respondents

YES 64 64

NO 36 36

TOTAL 50 100

[Fig 15]

No 36%

Yes 64%

ANALYSIS

To this question 64 consumers reported YES and 36 consumers reported NO

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CHAPER 8 HYPOTHESIS TESTING

54

HYPOTHESIS TESTING
Null Hypothesis (Ho)Customers are not satisfied with Max New York Life. Alternative Hypothesis (Ha)Customers are satisfied with Max New York Life. The table for the calculation of chi-square is given below: Calculation of chi-square test Observed frequency (Oi) Outstanding 8 Expected Oi-Ei frequency (Ei) 20 -12 144 7.2 (Oi-Ei)2 (OiEi)2/Ei

Excellent Good Average

12 47 30

20 20 20

-8 27 10

64 729 100

3.2 36.45 5

Poor

20

-17

289

14.45

Total

100

66.3

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CALCULATION X2 = (Oi-Ei)2 /Ei= 66.3

Thus the value of chi square is 66.3 Degree of freedom : n -1 = 5-1 = 4 Level of significance = 5% The tabulated for degree of freedom 4 at 5% level of significance is 9.488 So, Calculated Value = 66.3 Tabulated value = 9.488

Calculated Value > Tabulated value Interpretation: The calculated value is greater than the tabulated value, so we reject the null hypothesis and accept the alternative hypothesis. We can say that Customers are satisfied with Max New York Life Insurance Company Ltd.

56

CHAPER 9 OBSERVATION

57

OBSERVATIONS
Majority of the customer s belonged to age group of 25-35 years that is 40

consumers. 90 consumers think Life Insurance is essential for them. Mostly respondents are investing in life insurance companies like Kotak Life

Insurance, LIC, Tata Allianz, Max New York, HDFC, ICICI and SBI. 37 percentages of the total respondents invest in Max New York Life

Insurance Company Ltd. for getting high ROI. 55 Percentages of the respondents believe that covering future uncertainty is the

biggest benefit of an insurance policy 31 Percentages of respondents choose because of good returns 60 percentage respondents satisfied with services given by Max New York

Life Insurance. 64% of respondents are willing to purchased policies from Max New York

Life Insurance in future.

58

CHAPER 10
RECOMMENDATION

& SUGGESTION

59

RECOMMENDATIONS
There is scope to sale insurance policy by concentrating on age group 1824 years here potential of customers are there.(Example. Software professional, Engineers and professionals) Flexi plan can be sold by concentrating on age group 35-45 years. (Example. Government

employees, executives and businessman) As major respondents think to have life insurance policy is very essential there is lot of scope for insurance company. Max New York Life Insurance should try to build trust among the public by making people aware of their investment is safe, high return on investment, Tax Benefits. As more respondents are investing in Max New York Life Insurance for getting high return on investment the company should try to provide attractive returns on investments in future. Max New York Life Insurance should introduce attractive policies & also attractive bonus on policies to attractive more potential customers. Approx 36% of respondents differ with their previous insurance provider, they field that Max New York Life Insurance providing good tax benefit for their investment so Max New York Life Insurance if possible try to provided more tax benefit customer. 64% respondents are willing to purchases Max New York Life Insurance policies in future this benefit Max New York Life Insurance as mort potential customer in future.

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CHAPER 11 CONCLUSION

61

CONCLUSION

After conducting Sales Process research for Max New York Life Insurance Company we came to know different needs of consumers, their valuable suggestions, responses to the different questions. With this information we can conclude that there is good market awareness about Max New York Life Insurance Company in the market.

Customer satisfaction level of most respondents is higher for Max New York Life Insurance Company, which is provided by survey. Higher satisfaction level of Max New York life insurance company was monthly due to Max provides good tax benefit for the consumers also ROI, security etc.

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BIBLIOGRAPHY

63

BIBLIOGRAPHY

REFERENCES

BOOKS MAGAZINE Business & Economy Magazine

COMPUTER WEBSITE www.IRDA.com www.licindia.com www.hdfcinsurance.com www.businessindiaonline.com www.maxnewyorklife.com www.brandonline.com www.iciciprulife.com

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ANNEXURE

65

QUESTIONNAIRE
Personal Detail Name: Age 18-25 Phone No. 1. Do you think is it essential to have Life Insurance Yes No 25-35 35-45 45-55 55 and Above

2. Type of Insurance policy respondents have Life Non-Life Both

3. Which are the companies you invested your money for Life Insurance? Max New York Life Insurance Bajaj Allianz Kotak Mahindra Life Insurance ICICI Prudential Life Insurance LIC Tata AIG HDFC Life Insurance SBI

4. Benefits of insurance perceived by Respondents Cover Future Uncertainty Future Investment 5. Why do you Choose Max New York Life Insurance? ROI Tax Benefit Low Premium 6. Which Features of your policy attracted you buy it? Low Premium Money Back Guarantee Easy access to agents Larger Risk Coverage Reputation of Company Peer Pressure Security / Safety Tax Deductions

7. What your Perception about insurance? A Saving Tool A Tool to Protect Future
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A Tax Saving Device

8. Satisfaction of Respondents with Respect to policy. Satisfied Non Satisfied Non Responded 9. Satisfaction of Positive Respondents with Respect to Service Agents. Satisfied Non Satisfied Non Responded 10. Number of Respondents Paying Tax. Pay Tax Not Paying Tax 11. How will you rate the services given by Max New York Life Insurance? Poor Average Good Excellent 12. What difference you find between Max and Your Previous Insurance Provider. Good Returns (Highest) Effective Service / Liquidity Tax Planning Security / Safety Benefit and Protection on Your Capital 13. Do have any Suggestion for Max New York Life Insurance? Yes No 14. In future, will you Purchase Policies From Max New York Life Insurance? Yes No

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