ASUMMER TRAINING REPORT

ON

CUSTOMER PERCEPTION TOWARDS MAX NEWYORK LIFE INSURANCE

Submitted in the partial fulfillment of the degree of

Master of Business Administration

2010-2012

SUBMITTED TO: SUBMITTED BY : CONTROLLER OF EXAMINATION IRSAD M.D.UNIVERSITY ROLL NO.10/MBA/11 ROHTAK M.B.A 3rd Sem. B.S.Anangpuria Institute of Technology & Management Alampur,Faridabad. (Approved by AICTT, Govt of India and affiliated to M.D.U, Rohtak)

PREFACE

The insurance sector has a long history in India. Though the Insurance Sector is now

open for private players as a consequence of the new liberalization policies of the

Government, the existing government owned Insurance companies will, nevertheless,

continue to be in the government sector.

Role of Insurance in the Development of Economy

Every rupee invested in life insurance contributes in four ways to the development of

economy Savings in insurance reduce buying, as people will have less money to spend.

THE INSURANCE REFORMS ROUTE

So, its clear that the insurance was in private hands before 1971 and was nationalized in

1972 with all private companies merged into General Insurance Corporation of India as

the parent company with 4 subsidiaries as National Insurance Company Ltd. with Head

Office at Calcutta, New India Assurance Company Ltd. with Head Office at Bombay,

Oriental Insurance Company Ltd. with Head Office at New Delhi and United India

Insurance Company Ltd. with Head Office at Madras.

In 1993 the need for Private Insurance Companies and Multinational Companies was felt

and beginning of liberalization process started.

The Indian Life Assurance Companies Act, 1912 was the first statutory measure to

regulate life insurance business. Later, in 1928 the Indian Insurance Companies Act was

enacted, inter alia, to enable the government to collect statistical information about life

and non-life insurance business transacted in India by Indian and foreign insurers,

including the provident insurance societies.

To making mobilization of people’s savings by making insurance linked savings

adequately attractive.

Max New York Life Insurance Company is a partnership between Max India Limited,

and New York Life, a fortune 100 company. MNYL is a 74:26 partnership between Max

India and New York Life Insurance

2

ACKNOWLEDGEMENT

First of all I would like to thank the Max New York Life Insurance to give me the

opportunity to do my two-month project training in their esteemed organization. I

am higly obliged to Mr Anil Mittal (Sales Manager) for granting me to undertake

my training at branch.

I express my thanks to all Sales Managers under whose able guidance and direction,

I was able to give shape to my training. Their constant review and excellent

suggestions throughout the project are highly commendable.

3

EXECUTIVE SUMMARY

The project "Customer Perception towards Max New York Life Insurance Products” has

been mainly conceived with a view to have a insight of insurance sector & to provide the

company with essential factors which are looked upon by the customers as well as buying

behavior of the insurance policy.

MAX INDIA LIMITED

Max India Limited is a multi-business corporate, driven by the spirit of Enterprise

focused on Knowledge, People and Service oriented businesses of Healthcare and

Life Insurance.

New York Life LLC

New York Life Insurance Company 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 Life’s 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.

This opportunity provided me an insight into the insurance sector and would be help

or input for me entering into an insurance sector.

To provide the company with information of customer's Insurance policy if they have

any and reasons for opting for that particular policies.

To determine customers perception towards private insurance companies and their

expectation form private insurance companies.

To determine the feedback on services provided by any other insurance agent.

To study the types of benefits provided by insurance services.

To know the impact of privatization of insurance sector on public.

To understand the customers buying behavior of insurance products with a focus

on market segmentation.

4

To study the reason of persons taking up various insurance schemes.

Following the passage of the Insurance Regulatory and Development Authority Act

in 1999, India abandoned public sector exclusivity in the insurance industry in favors

of market-driven competition. The customers are sometimes bias towards the product

and moreover the customer lacks the information about insurance.

It is seen from the survey conducted that generally the insurance company/agent

approaches the customers. But the data that 44.5% of the people themselves

approached the insurance company/agent as the people think that insurance is a tool

to protect their family & a tax saving device. The customers are sometimes bias

towards the product and moreover the customer lacks the information about

insurance.

5

TABLE OF CONTENTS

S. No. Topic Page No.

1. Introduction to Industry 7

2. Introduction to Company 21

3. Research Methodology 54

b)Objectives

c) Scope of the Study

d) Significance of the Study

e)Research Design

f) Sampling Methodology

g) Limitation

4. Facts and Findings 58

5. Data Analysis and Interpretations 67

6. Recommendations 84

7. Conclusions 86

8. Bibliography 88

9. Annexure 90

Questionnaire 90

6

CHAPTER-1

INTRODUCTION OF

INDUSTRY

7

INTRODUCTION

The insurance sector has a long history in India. It began in the early years of the 19 th

century. The 1st legal enactment was made in 1870. The 1st Indian Insurance Act was

passed in 1938 and amended in 1950, when it was nationalized. However, the sector was

once again thrown open to the private sector on December 2007, followed by the

establishment of the Insurance Regulatory and Development Authority (IRDA) in April

2008.

Though the Insurance Sector is now open for private players as a consequence of the new

liberalization policies of the Government, the existing government owned Insurance

companies will, nevertheless, continue to be in the government sector. These existing

companies will, however, have to strive for better realization of their corporate objectives

and goals to meet the demands and expectations of the public.

Quality of service and product that an industry offers must move forward with progress in

the state of the economy. As the quantum and quality of service change over time, the

levels at which customers continue to remain satisfied with the services provided, also

keep on increasing. Ultimately, the success of any industry depends upon its positioning

in the state of economy and on meeting the expectations of the service users.

With competition, the performance level of individual companies is expected to increase.

Segmentation is taking place within the economy with a need for socially responsive

service sector.

Globalization is the new economic reality, which is here to stay, heralding a new era of

insurance in India. With the opening of the insurance industry, India stands to gain with

the following major advantages:

Globalization will provide improved opportunities to the customer for better products,

with more reasonable and affordable pricing.

The customer will get faster servicing.

It will enhance the savings rate.

Long-term funds for infrastructure development will be available to the Country.

8

It will secure for India larger inflows of foreign capital needed to sustain our GDP

growth.

INSURANCE- WHAT IS IT?

Man has always been in search of security and protection from the beginning of

civilization. This urge led him to the concept of insurance. The basis of insurance was the

sharing of the losses of a few amongst many. Insurance provides financial stability and

strength to the individuals and organization by the distribution of loss of a few among

many by many by building up over a period of time.

The legal definition of insurance is that, “it is a contract between the insurers and insured

whereby, in consideration of payment of premium by the insured the insurer agrees to

make good any financial loss the insured may suffer due to consideration of an insurance

peril.”

Insurance means Spreading of Losses or Sharing of Risks. Life is full of risks. For

property, there are fire risks; for shipment of goods, there are perils of sea; for human life

there are risks of death or disability; so on and so forth. The risks are uncertain-may or

may not occur. People facing common risks come together and give their small

contribution to the common fund. While it may not be possible to tell before, which

persons will suffer, but it is possible to tell how many persons on an average out of the

group will suffer loss. If any case risk occurs, loss is made good out of common fund. In

this way, all shares common risk. Insurance, thus broadly can be understood as the

process of spreading of losses of an individual, over the group of individuals or the

process of sharing of risk by those who face common risk. People who suffer loss get

relief because their loss is made good out of common fund. People who do not suffer loss

get relief because they are free of any worry of loss. Following 2 e.g. explain the above

concept of insurance.

9

Example-1:

In a village, there are 500 houses; each valued at Rs. 25,000. Every year 5 houses get

burnt, resulting into a total loss of Rs. 1250,000. If all the 500 owners come together and

contribute Rs. 250 each, the common fund would be Rs. 125,000. This is enough to pay

Rs. 25,000 to each of the 5 owners whose houses got burnt. Thus the risk of 5 owners is

spread over 500 house-owners of the village.

Example – 2:

There are 1000 persons who are all aged 50 and standard lives. It is expected that 10

persons out of the group die during the year. If the economic value of the loss suffered by

the family of each dying person were taken to be Rs. 20,000, the total loss would work

out to Rs. 20,000/-. If each person of the group contributes Rs. 200 a year, the Common

Fund would be Rs. 2,00,000 this would be enough to pay Rs. 20,000 to the family of each

of the 10 dying persons. Thus 1000 persons are sharing the risks in cases of these 10

persons.

ROLE OF INSURANCE IN THE DEVELOPMENT OF ECONOMY

Every rupee invested in life insurance contributes in four ways to the development of

economy:

1. Firstly, it relieves those insuring from the worry and anxiety they may have about

how they or their family would meet the cost of certain events, such as the marriage

of the children, the premature death of the main income provider or maintaining a

regular income in their retirement. If an individual is free from these worries he can

perform better in his job, which helps the economy.

2. Secondly, it directs people’s savings. The insurer invests these funds in various

business enterprises, government bonds, loans to public and private projects including

infrastructure and socially oriented projects. Thus the insurance premiums provide the

much-needed funds for the development of the nation’s economy.

3. Thirdly, these savings act as an anti-inflationary force in the nation’s financial

structure. Inflation happens when prices of goods go up. One of the causes is when a

lot of buying takes place due to the spending of a major portion of income by people.

Savings in insurance reduce buying, as people will have less money to spend.

10

4. Insurance ranks with export trade, shipping and banking services as earner of foreign

exchange to the country. Indian insurers operate in more than 30 countries through

agencies, branches and subsidiary/associate companies. These operations earn foreign

exchange and represent invisible exports.  

INSURANCE AS A SOCIAL SECURITY TOOL

Any progressive state is expected to take care of the well being of its people. The

economic needs of the people will include food, Clothing, housing, education, medical

care and security in the event of unemployment. Sickness etc. this has been recognized by

the united Nation Declaration of Human Rights and Article 41 of the Indian constitution.

Within the financial resources, the government has extended the concept of social

security especially to the weaker sections through the mechanism of group insurance.

Of late the governments all over the world have realized that the resources are quite

limited to meet all the needs of the people as a described above. In this context, the

importance of commercial insurance, particularly its group insurance variant, as a social

security tool is being recognized. Without life insurance, economic condition life

insurance in this sense serves a social purpose.

INSURANCE OPPORTUNITIES IN INDIA

1. Not even 25% of the insurable population has been extended the insurance cover.

Market penetration is quite low and hence the potential to exploit is very high.

2. Insurance premium per capita is very low ($4).

3. Lack of a comprehensive social security system/state benefit and welfare means that

demand for pension products should be high.

4. There is a huge middle class section of approximately 300 million.

5. Existing insurance companies score very low on the customer service front.

6. With steadily increasing corporate asset values, need for insurance is on the rise.

Competition can help ensure the best products with best services.

THE INSURANCE REFORMS ROUTE

So, its clear that the insurance was in private hands before 1971 and was nationalized in

1972 with all private companies merged into General Insurance Corporation of India as

the parent company with 4 subsidiaries as National Insurance Company Ltd. with Head

11

Office at Calcutta, New India Assurance Company Ltd. with Head Office at Bombay,

Oriental Insurance Company Ltd. with Head Office at New Delhi and United India

Insurance Company Ltd. with Head Office at Madras.

In 1993 the need for Private Insurance Companies

and Multinational Companies was felt and beginning

of liberalization process started.

April 1993 R N Malhotra Committee an Insurance Sector reforms &

deregulation set up.

January ‘94 Malhotra Committee submits report to Finance Ministry.

January ‘96 An interim insurance regulatory authority set up thru a

resolution.

September ’96 Insurance Regulatory Authority Bill drafted.

December ’96 The Insurance Regulatory Authority Bill introduced in the

Parliament and referred to a standing committee.

August ’97 The Insurance Regulatory Authority Bill is withdrawn

following opposition to foreign participation in the

domestic insurance sector.

November ‘97 Union government gives greater autonomy to LIC, GIC

and its 4 subsidiaries.

June ‘98 Union Budget announces opening up of the insurance

sector.

January ‘99 Notification of IRA is statutory authority and amendments

LIC & GIC Acts.

March ‘99 Insurance regulatory authority sets the procedure for filing

applications.

April–July ‘99 3 months open window for receipt of application.

December ‘99 In principal approvals to be granted.

2000 Private Insurance products hit the market.

12

After a long wait, however, there was light at the end of the tunnel when the Union

Cabinet first gave its nod for 26% direct foreign equity in any insurance JV, and later

allowed foreign institutional investors (FIIs) to hold 14% stake in such ventures

effectively pushing up the foreign equity proportion to 40%.

THE ROADMAP TO PRIVATIZATION

1. Insurance Regulatory Authority Bill was placed before Parliament. New act to grant

statutory powers to Insurance Regulatory Authority to issue guidelines and regulate

industry.

2. GIC and LIC Acts were amended. Such an amendment was crucial as the Acts

disallows any other entity to issue policies.

3. Guidelines for new private insurance companies were announced by Insurance

Regulatory Authority, which would include capital requirement, solvency margins

etc.

4. Legislation was framed to permit institution of brokers to operate in the country.

5. Guidelines for intermediaries such as surveyors, insurance agents and actuaries were

formulated.

6. Invitation of business plans and applications from prospective participants, and

actuaries were formulated.

WHAT IS LIFE INSURANCE?

Life insurance is an agreement or a contract between you (the insured) and an

insurer. Under the terms of a life insurance contract, the insurer promises to pay a

certain sum to someone (a beneficiary) when you die, in exchange for your premium

payments.

WHY WOULD YOU NEED LIFE INSURANCE?

1. The most common reason for buying a life insurance is to replace the income

lost when one dies.

For e.g., say that you work, and that your income is used to support yourself

and your family. When you die, and your paychecks stop, the life insurance

13

proceeds can be used to continue to support the family members you've left

behind.

2. Another common use of life insurance proceeds is to pay off any debts you

leave behind. For e.g., mortgages, car loans, medical bills, and credit card

debts are often left unpaid when someone dies. These obligations must be

paid from the assets left behind. This can deplete the resources that your

family needs. Life insurance can be used to pay off these debts, leaving your

other assets intact for your family to use.

3. Life insurance provides liquidity to your estate. When you die, you may leave

some liquid assets (such as cash, CDs, and savings bonds), and some illiquid

assets (such as real estate, an automobile, and stocks). Your liquid assets may

not be enough to pay all the debts that you leave behind, plus all the expenses

that arise because of your death (such as funeral expenses and estate taxes).

Your illiquid assets may have to be sold in order to meet these obligations

when they come due. This may cause a financial loss if the assets must be

sold cheaply in order to get the money on time. Life insurance can avert this

situation, because the proceeds are available almost immediately upon your

death.

4. Life insurance creates an estate for your heirs. After your debts and expenses

are paid, there may not be much left over for your family. Life insurance can

automatically provide assets for them after your death.

5. Life insurance is a great way to give to charity when you die. You may have

always had a great philanthropic desire, but not the means to make it a reality.

Life insurance can do that for you.

6. Life insurance can be a critical component for specialized business

applications, such as funding a buy-sell agreement. Under a buy-sell

agreement, life insurance can be used to provide cash for the purchase of a

deceased owner's interest in the business.

14

7. Finally, life insurance can be an investment vehicle. Some types of life

insurance policies may actually make money for you, as well as provide the

benefits described above. This can help you with long-term financial goals.

15

LIFE INSURANCE NEEDS AT VARIOUS LIFE STAGES

Your need for life insurance changes, as your life moves ahead. When you're young,

you typically have no need for life insurance, but this changes as you take on more

responsibility, and as your family grows. Then, as your responsibilities once again

begin to diminish, your need for life insurance drops off. Let's look at how your life

insurance needs change throughout your lifetime.

INDIAN INSURANCE INDUSTRY: A PERSPECTIVE

A. Life insurance

Life insurance in its existing form came in India from United Kingdom (UK) with the

establishment of a British firm, Oriental Life Insurance Company in 1818 followed by

Bombay Life Assurance Company in 1823, the Madras Equitable Life Insurance Society

in 1829 and Oriental Life Assurance Company in 1874. Prior to 1871, Indian lives were

treated as sub-standard and charged an extra premium of 15% to 20%. Bombay Mutual

Life Assurance Society, an Indian insurer that came into existence in 1871, was the first

to cover Indian lives at normal rates. The Indian Life Assurance Companies Act, 1912

was the first statutory measure to regulate life insurance business. Later, in 1928 the

Indian Insurance Companies Act was enacted, inter alia, to enable the government to

collect statistical information about life and non-life insurance business transacted in

India by Indian and foreign insurers, including the provident insurance societies.

In 1938, with a view to protecting the interest of insuring public, earlier legislation was

consolidated and amended by Insurance Act, 1938 with comprehensive provisions for

detailed and effective control over the activities of insurers. In order to administer the

aforesaid legislation, an insurance wing was established and attached first with the

Ministry of Commerce and then Ministry of Finance. This ministry was administratively

responsible for policy matters pertaining to insurance. The actuarial and operational

matters relating to the insurance industry were looked after by an attached office in

Shimla, headed first by Actuary to the Government of India, then by Superintendent of

Insurance and finally by the Controller of Insurance. The act was amended in 1950,

making far-reaching changes such as requirement of equity capital for companies,

carrying on life insurance business, ceilings on shareholdings I such companies, stricter

16

control on investment of life insurance companies, submission of periodical returns

relating to investments and such other information to the Controller as he may call for,

appointments of administrators for mismanaged companies, ceilings on expenses of

management and agency commission, incorporation of the Insurance Association of India

and formation of councils and committees thereof.

By 1956, 154 Indian insurers, 16 non-Indian insurers and 75 provident societies were

carrying on life insurance business in India. Life insurance business was confirmed

mainly to cities and better off segments of the society.

On 19th January 1956 the management of life insurance business of 245 Indian and

foreign insurers and provident societies, then operating in India, was taken over by the

Central Government and then nationalized on 1st September 1956. An Act of Parliament,

viz. LIC Act, formed LIC in September 1956, with capital contribution of Rs. 5 crore

from the Government of India.

The then Finance Minister, Shri S.D.Deshmukh, while piloting the bill for

nationalization, outlined the objectives of LIC thus: to conduct the business with utmost

economy, in a spirit of trusteeship; to charge premium no higher than warranted by strict

actuarial considerations; to invest the funds for obtaining maximum yield for the policy

holders consistent with safety of the capital; to render prompt and efficient service to

policy-holders, thereby making insurance of recommendations of the Administrative

Reforms Commission as under:

1. To spread life insurance much more widely and in particular to the rural areas and

to the socially and economically backward classes

2. To making mobilization of people’s savings by making insurance linked savings

adequately attractive.

3. To bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust without losing sight of the interest of

the community as a whole

4. To conduct business with utmost economy and with the full realization that

money belongs to the policy- holders.

17

5. To act as trustees of the insured public in their individual and collective

capacities.

6. To meet various life insurance needs of the community that would arise in the

changing social and economic environment.

7. To promote amongst all agents and employees of the Corporation a sense of

participation, pride and job satisfaction through discharge of their duties with

dedication towards achievement of corporate objectives.

B. General Insurance

General Insurance developed in India with industrial revolution in the West and

consequent growth of seafaring trade and commerce in the 17th century. It came to India

from UK. The 1st general insurance company, Triton Insurance Company Ltd. was

established in Calcutta in 1850 whose shares were mainly headed by British. The 1st

general insurance company established by an Indian was Indian Mercantile Insurance

Company Ltd. in Bombay in 1907.

In 1957, the General Insurance Council, a wing of the Insurance Association of India

framed a code of conduct for ensuring fair conduct and sound business practices in the

general insurance industry. An administrative set-up headed by the Controller of

Insurance was set up at Delhi in 1957 with a branch office at Bombay, Calcutta, and

Madras for administrating code of conduct. Further in order to retain the business of

general insurance in India, the insurers started a reinsurance company, viz. India

Reinsurance Corporation Ltd. In 1956 to which they voluntarily ceded 10% of their gross

direct business. In 1961, by arrangement to Insurance Act, this voluntary arrangement

was formalized by notifying the Indian Guaranty and General Insurance Company Ltd., a

government company, along with the Indian Reinsurance Corporation as ‘Indian

Reinsures’. In 1968, the Insurance Act was amended to provide for extension of social

control over insurers transacting general insurance. The amendments provided, inter alia

for regulation of assets, setting up of the Tariff Advisory Committee (TAC) under the

chairmanship of Controller of Insurance. Before the amendments of the act could be

implemented, management of non-life insurers was taken over by the Central

18

Government in 1971 as a prelude to nationalization. The General Insurance Business Act,

1972, nationalized general insurance business with effect from 1.1.73.

Prior to 1973, general insurance was more cities oriented, catering to the needs of trade

and industry.107 insurers including branches of foreign companies operating here were

amalgamated and grouped into 4 companies, viz. the National Insurance Company Ltd.,

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

United India Assurance Company Ltd. GIC was incorporated as a company in November,

1972 and it commenced business on January 1, 1973.

Government of India and that of 4 companies subscribe the capital of GIC by GIC. All

the 5 entities are Government companies, registered under the Companies Act.

The purpose of establishment of GIC as a holding company of the four operating

companies as stated in General Insurance Business Act is superintending, controlling, and

carrying on the business of general insurance. (ref.bibliography)

LIFE INSURANCE INDUSTRY

Legislative issues

Based on developments over the last couple of years, it would be fair to say that the long-

term outlook for the policy regime for insurance appears positive. In many ways the

IRDA has exhibited transparency and protectiveness in attending to critical issues this has

not only provided a degree of comfort to existing and prospective insurers, but has also

laid the foundation for the orderly development of the insurance market in India. The

most obvious comparison one could make is with the banking sector liberalization that

took place a few years ago. Unlike the RBI, the IRDA has been transparent, efficient and

adequately cautions in its process of granting licenses. The hectic lobbying and 'loophole

exploitation' that firms indulged in have been thankfully absent in the insurance business,

thus far.

At a broader level, the government maintains its bullish outlook for insurance reforms,

reflected by its willingness to ensure a level playing field for private insurer vis-à-vis LIC

(e.g. similar tax treatment to all life insurers, similar paid up capital requirement etc) and

to minimize its intervention in operational and commercial issues. Private players in other

19

recently liberalized sectors (especially telecom and banking where industry regulator and

industry government disputes have severely constrained development) could scarcely

consider themselves as lucky.

Perhaps the only major issue is the cap on foreign investment, which the government is

not keen on increasing in the near future. For the longer term, it may reconsider its stand,

depending among other things, on the Indian partner's ability to continue contributing

financially and technically to the joint venture. (ref.bibliography)

Taxation Policy for Life Insurance Firms

After prolonged debate, the Finance Ministry had expressed its desire to accord similar

tax treatment to LIC and private insurers.

Co-Operative Banks Excluded From Insurance

Based on the strict requirements set out by the RBI for banks entry into insurance,

cooperative banks would be unable to apply for direct insurance at this stage. However,

the norms for participating in non-equity insurance activities (such as marketing and

distribution) are slightly easier and may allow some cooperative banks to enter.

The RBI requires banks to possess a net worth of Rs. 500 crores, a capital adequacy ratio

of 10, a ‘reasonable’ level of non-performing assets (NPAs), continues net profit for the

last 3 years, and a 'satisfactory' track of subsidiaries. While capital adequacy norms do

not apply to cooperative banks, they are likely to fail on the grounds of net worth and

NPAs.

The Kerala State Cooperative Banks (KSCB) and the Maharashtra State Cooperative

Bank (MSCB) had earlier declared their interest in entering the insurance sector. Based

on RBI guidelines, however, they may have to limit their exposure to marketing and

distribution only.

Competitive Developments Existing Insurers

Expectedly, private companies that have commenced operations have done so with a 'soft

launch'. This is presumably in realization of the fact that long term resources are better

spent in consistent and well targeted promotional efforts rather than in 'big-bang' exercise

- especially for non - impulse purchase, long term financial products such as life

insurance. Treading new round carefully by patiently establishing one's credibility and

20

competence appears to be the preferred strategy over one that involves a head on battle

with LIC.

The other important observation based on industry developments, pertains to the role of

banks. With most banks resigning themselves to the fact that obtaining a license to sell

insurance will be difficult to come by (due to strict RBI norms), they have chosen to

participate in the industry through the banc assurance, route instead. In the Indian

context, this is significant. In the interiors of the country, public sector banks have built

up excellent penetration and enjoy the public's confidence-2 important prerequisites for

selling insurance. On the other hand, in the bigger cities, private banks, which are

constantly looking for ways to enhance customer value and profitability (e.g. through

cross selling), are likely to incorporate insurance in their portfolio of offerings.

The flip side to selling thru banks is that it raises the risk of channel conflicts for insurers.

In addition, financial stability could become an issue, especially in the context of certain

PSU banks. The manner in which PSU banks are privatized, and the extent to which the

government reduces its stake, will therefore have an important bearing on the success of

banc assurance in India.

21

CHAPTER-2

INTRODUCTION OF

TOPIC

22

INTRODUCTION

A BRIEF HISTORY OF MAX NEW YORK LIFE

OVERVIEW

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

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

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

vision to be the Most Admired Life Insurance Company in India, it has developed a

strong corporate governance model based on the core values of excellence, honesty,

knowledge, caring, integrity and teamwork. The strategy is to establish itself as a Trusted

Life Insurance Specialist through a quality approach to business.

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

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

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

1,432 crore.

Having set a Best in Class Agency Distribution Model in place, the company is

spearheading a major thrust into additional distribution channels to further grow its

business. The company has multi-channel distribution that includes the agency

distribution, partnership distribution, banc assurance, distribution focused on emerging

markets and alliance marketing through employed sales force. The company currently has

33 banc assurance relationships, 14 corporate agency tie-ups and direct sales force at 14

locations. Max New York Life has put in place a unique hub and spoke model of

distribution to deepen rural penetration. The company has 39 (9 hub office 30 spoke

offices) offices dedicated to emerging markets in Punjab and Haryana. Max New York

Life offers a suite of flexible products. It now has 35 products covering both life and

23

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

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

products and 4 riders in group insurance business.

Achievements and Awards some of the Industry Firsts First company to provide free look

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 First Indian life insurance company to start service center at the regional level

First life insurance company in India to be awarded ISO 9001:2000 certification

AWARDS

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

Received the Amity Corporate Excellence Award – 2007 Received the ‘Outlook

Money Award’ for being “among the best new insurers in the country”.

24

MAX INDIA LTD.

Founded in 1985, Max India Limited is a Public Limited company listed on the NSE and

BSE of India with over 26,000 shareholders. Today, Max India Limited is a multi-

business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and

Service oriented businesses of:

Healthcare (Max Healthcare)

Life Insurance (Max New York Life Insurance)

Clinical Research (Neeman Medical International)

Max also Maintains Interests in:

Specialty Plastic Products for the packaging industry (Max Specialty Products)

Healthcare Staffing (Max Health Staff)

25

Prominent shareholders are Mr. Analjit Singh and a leading private equity firm, Warburg

Pincus which accounts for 28.7% of the total shareholding. The balance shareholding is

held by the public and Institutional Investors.

Till 1999, The Company’s Main Interests and Partnerships were the following:

Business

Bulk Active Pharmaceuticals

Electronic Component Distribution

Mobile Telephony

V-SAT Communications

Plating Chemicals

Information Technology

Partners

DSM Gist Brocades

Motorola, USA

Avnet Inc., USA

Hutchison Telecom Ltd. Hong Kong

Comsat Investment Inc., USA & Lockheed Martin, USA

Atotech, Germany

Mind Crossing, USA

In 2000, the Company reinvented and restructured itself to focus on the businesses of

‘Life’ under the them, Life Our Focus.

Max New York Life Insurance, founded as a Joint Venture between Max India Limited

and New York Life, a Fortune 100 company, is one of the leading private life insurers in

India.

Max Healthcare, a subsidiary of Max India Limited is India’s first provider of

comprehensive, standardized, seamless, and integrated world-class healthcare services.

Neeman Medical International (NMI) is an International Clinical Research provider

operating across three locations spanning North America, Asia and Latin America. Each

location is backed by comprehensive infrastructure and highly skilled and experienced

personnel.

26

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

Life’s 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.

One of the most admired private life insurance companies in India, Max New York Life

Insurance Company Ltd. [Tagline: ‘Your Partner for Life'] is a joint venture between

Max India Limited , a multi-business corporation in India, and New York Life , a US-

based Fortune 100 insurance company. The company offers 22 life insurance and 8

riders’ products which can be customized to over 400 combinations to satisfy diversified

customer needs. Currently, the captain of the Indian current cricket team, Rahul Dravid is

the brand ambassador of Max New York Life.

27

HISTORY OF NEW YORK LIFE INSURANCE COMPANY

NYL INSURANCE BUILDING

The company was founded in 1845 as the Nautilus Insurance Company in New York

City, with assets of just $17,000. It was renamed the New York Life Insurance Company

in 1849. Its first headquarters were at 112-114 Broadway; the first president was James

De Peyster Ogden. The current New York Life headquarters was designed by noted

architect Cass Gilbert and completed in 1928. The New York Life building, at 51

Madison Avenue, was constructed during the presidency of Darwin P. Kingsley. He

expanded the company's operations and developed new types of insurance. As with other

early insurance companies in the U.S., in its early years the company insured the lives of

slaves for their owners. In response to bills passed in California in 2001 and in Illinois in

2003, the company reported that Nautilus sold 485 slaveholder life insurance policies

during a two-year period in the 1840s; they added that their trustees voted to end the sale

of such policies 15 years before the Emancipation Proclamation.

The company became known for innovative business practices. In 1860, well before state

laws required it, New York Life developed the non-forfeiture option, the predecessor to

28

the guaranteed cash values of modern policies, under which a policy remains in force

even if a premium payment is missed. It was also the first American life insurance

company to pay a cash dividend to policyholders, and the first U.S. Company to issue

policies to women at the same rates as men. Susan B. Anthony was one of their first

female policy holders, and her father worked for NYLIC. In 1896, New York Life

became the first company to insure people with disabilities and the first to issue a policy

with a disability benefit that presumes total disability to be permanent after a

predetermined period.

In the late 1990s New York Life was one of several large mutual life insurers to back a

bill that would allow demutualization into a structure known as a mutual holding

company (MHC). CEO Sternberg himself argued strongly in favor of the bill, which was

ultimately defeated. The NYLIC board of directors subsequently reversed course, with

the company strongly and publicly embracing their mutual nature in a series of

advertisements.

According to their Report to Policyholders 2007, in early 2007 the company's managers

became concerned about the state of credit markets, so in February 2007 "based on our

belief that the markets were acting irrationally" New York Life decided to move much of

its cash flow into safer investments such as US Treasury bonds. "By August 2007, the

credit market problems we had feared were front page news," the Report notes.

Max New York Life brings to you specially customized products and services that are

flexible and can e customized to suit your needs. It now has 30 life insurance products

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

choose the policy or plan that best fits their need.

This include:

1. INDIVIDUAL INSURANCE

Protection Plans:

Whole Life

Level Term

Five Year Term R & C

29

Life Partner Plus

Savings:

o Life Gain Endowment

o Life Pay Money Back

o Life Gain Plus 20

o Life Gain Plus 25

o 20-Year Endowment

Unit Linked:

o Life Maker Premium

o Life Maker Gold

o Life Maker Platinum

o Life Maker Pension

o Life Invest

2. GROUP INSURANCE

o Group Term Life

o Group Gratuity

o Employee Deposit Linked Insurance

o Credit Shield

o Unit Linked Group Gratuity

o Unit Linked Group Superannuation

3. RURAL INSURANCE

o Max Suraksha

o Easy Term

o Max Mangal Endowment

o Max Vriksha Money Back

4. MAX AMSURE

o Max Amsure Bonus Builder

o Max Amsure Business Builder

30

o Max Amsure Money Back

o Max Amsure Future Builder

o Max Amsure Secure Returns Builder

5. NAV

Life Maker Investment Plan

Life Maker Pension Plan

Life Maker Premium

Smart Steps

Group Gratuity

Group Superannuation

Max Amsure Secure Returns Builder

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

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

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

vision to be the Most Admired Life Insurance Company in India, it has developed a

strong corporate governance model based on the core values of excellence, honesty,

knowledge, caring, integrity and teamwork. The strategy is to establish itself as a Trusted

Life Insurance Specialist through a quality approach to business.

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

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

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

1,232 crore.

Having set a Best in Class Agency Distribution Model in place, the company is

spearheading a major thrust into additional distribution channels to further grow its

business. The company has multi-channel distribution that includes the agency

distribution, partnership distribution, banc assurance, distribution focused on emerging

markets and alliance marketing through employed sales force. The company currently has

33 banc assurance relationships, 14 corporate agency tie-ups and direct sales force at 14

31

locations. Max New York Life has put in place a unique hub and spoke model of

distribution to deepen rural penetration. The company has 39 (9 hub office 30 spoke

offices) offices dedicated to emerging markets in Punjab and Haryana. Max New York

Life offers a suite of flexible products. It now has 38 products covering both life and

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

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

products and 4 riders in group insurance business.

The company currently has more than 11,338 employees.

32

PRODUCT AND SERVICES

PLAN OVERVIEW

Life with its fascinating moments also has its share of uncertainties and planning ahead is

extremely important to face all these uncertainties that may arise from time to time.

That's the reason you need a protection plan, which would serve your protection needs

and safeguard your family from any financial insecurity at times of crisis or at the

unfortunate event of your demise.

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

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

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

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

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

important feature of this policy is that it allows the insured to convert the policy to a

regular policy during the tenure of the policy.

Five Year Renewable and Convertible Term Insurance (Non-Participating) provides

you with a low cost insurance cover during its tenure of five years. It is also convertible

any time into any permanent life insurance policy from MNYL, so that you are able to

take advantage of increasing your savings when your responsibilities increase viz. on

marriage, or on child birth

Eligibility Criteria

Eligibility Criteria

Age at Entry 20 to 60 years

Maximum Age at Maturity 65 years

Term5, 10, 15, 20 or 25 years or to Age 60

years

Sum Assured Rs. 2,50,000 to Rs. 5 Crore

Premium Payment Options Annual, Semi-annual, Quarterly, Monthly

Benefits

33

On death of life insured: In case of the unfortunate death of the life insured during the

term of the plan, an amount equal to the Sum assured is paid to the beneficiary.

Tax Benefits:

You are entitled to the following tax benefits under Income Tax Act 1961: Your

premiums are eligible for deduction u/s 80C up to Rs.1, 50,000/- every year. Your DD

rider premiums are eligible for an additional deduction u/s 80D up to Rs.15, 000/- every

year.

Your claim amounts (from death) are eligible for tax exemption u/s 10(10D).

Unique Features in This Policy:

This plan can be renewed every five years and is convertible to any permanent plan at

any time during the tenure of the plan.

LEVEL TERM POLICY (NON - PAR/NON - CON)

In the exciting journey of life, there will be uncertainties, and there will be various

occasions when you have to play or assume added responsibilities being the head of the

family. The much-anticipated arrival of a new member in the family, the purchase of your

dream house, the wonderful event of your marriage, your children's higher education or

their marriage may all be described as planned life events, but they bring their own share

of uncertainties. It is important to be financially secured and prepared to meet these

uncertainties and make your family feel fully protected, should something unfortunate

happen to you.

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

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

in the unfortunate event of your death. Incase of the unfortunate death of the policy

holder during the term of the plan, an amount equal to the sum assured is paid to the

nominee.

In the exciting journey of your life, there will be uncertainties. Additionally there may be

times and occasions when you have to assume additional responsibilities as the head of

the family. Max New York Life's Level Term (Non Participating) Policy insures your life

34

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

unfortunate event of your death.

Eligibility Criteria

Eligibility Criteria

Age at Entry 18 years to 55 years

Maximum Age at Maturity 60 Years

Term 5,10,15,20 or 25 years or to Age 60 Years

Sum Assured Rs. 2,50,000 to Rs. 5 Crore

Premium Payment OptionsAnnual, Semi-annual, Quarterly, Monthly,

Single

Benefits

On death of life insured: In case of the unfortunate death of the life insured during the

term of the plan, an amount equal to the Sum assured is paid to the beneficiary.

Tax benefits:

You are entitled to the following tax benefits under Income Tax Act 1961:

← Your premiums are eligible for deduction u/s 80C up to Rs.1, 50,000/- every year.

← Your DD rider premiums are eligible for an additional deduction u/s 80D up to

Rs.15, 000/- every year.

← Your claim amounts (from death) are eligible for tax exemption u/s 10(10D).

Life Maker Premium Investment Plan Live life. King SizeAll of us desire a

lavish and comfortable life. Max New York Life wants you to think beyond basic

necessities of life i.e. Food, Clothes and Shelter. The latest Life Maker™ Premium

Investment Plan gives you a lot of choices - especially when you are looking for Great

life style, Big Home, your own well established Business and top of all - Protection for

your family. Our Unit linked Life Insurance plan can be the financial cornerstone for your

objectives. Max New York Life Insurance provides you a powerful investment-cum-

insurance plan where you can direct your investments in the customized unit linked funds

such as equities, money market instruments, investment grade corporate bonds, and

35

government securities. These funds offer a wide range of returns basis market returns.

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

taking ability. The switching feature of this policy provides

you the facility to change the investment pattern by

moving from one fund to other fund(s) amongst the

funds offered under this contract and in case of

unforeseen urgent needs; the plan ensures easy

liquidity to you by accessing your fund through

surrender benefit. Five attractive investment funds to choose from

Flexibility to choose premium payment term

Additional protection against disease and disability through riders

Flexibility to invest a lump sum amount through top ups

Free Loyalty Units

Tax benefit on premiums and maturity value

Criteria Eligibility

Entry Age (age as at last birthday)

Any age between 91 days to 65 years

(maximum issue age is 50 years with DD

rider and 55 years with PAB rider)

Premium Payment TermRegular Pay - Equal to Policy Term

Limited Pay - 5/10/15 years

Policy Term (in whole years)

Regular Pay - Pick-a-tenor (10 years to 30

years)

Limited Pay – 5 pay – 10 years policy

term

10 pay – 20 years policy term

15 pay – 30 years policy

term(Subject to maximum age at maturity

of 75 years)

Maximum Maturity Age 75 years on last birthday

36

Minimum Sum Assured Rs. 100,000

Minimum Annual Target Premium Rs. 20,000

 

Maturity Benefit

← At maturity value, we will pay you the fund value.

In addition to this:

← This plan also offers you the Settlement Option on maturity where your policy

will continue for a time period not exceeding five years but the insurance cover

will terminate on maturity

← Persistency Units - On paying regular premiums, we will allocate Persistency

Units to your unit account on the 9th policy anniversary and on every 3rd policy

anniversary thereafter provided your policy is in-force at that anniversary.

Death Benefit

← Higher of the Sum Assured or the fund value of the policy on death

← However, if the Life Insured dies before attaining age 10 years, we will only pay

the fund value of the policy.

←

FundSecure

Fund

Conservative

Fund

Balanced

Fund

Growth

Fund

Growth

Super

Fund Investment Type

Government

Securities50-100% 50 - 80% 20 - 50% 0 - 30% 0-20%

Corporate Bonds

(investment grade)0-50% 0 - 50% 20 - 40% 0 - 30% 0-20%

Money Market

Instruments / Cash0-20% 0 - 20% 0 - 20% 0 - 20% 0-20%

Equities NIL 0 - 10% 10 - 40% 10 - 70% 70-100%

 

37

FlexibilitiesSwitching: We provide you with the facility to change the

investment pattern by moving from one fund to any other fund(s) amongst

the funds offered under this contract. Every policy year, we offer you six

free switches.Premium Re-Direction: This is the facility that allows you to

modify the allocation of premiums into an investment pattern that is

different from the existing pattern. Every policy year, we offer you three

free redirections. Partial Withdrawal: If you wish to withdraw a part of your

fund, you can make partial withdrawals up to 20% of surrender value in any

policy year by cancellation of units from your unit account. Partial

withdrawals are allowed only after three policy years. Surrenders: In case

of unforeseen needs it ensures easy liquidity to you by accessing your

fund through surrender benefit. However, full surrender is possible only

after an amount equal to three years ATP has been paid. LIFE INVEST

PLAN An undying money plant for your ever growing needs.Life Invest™ Plan is

designed keeping in mind that different individuals have different needs, which

change over time. We build many dreams and aspirations and long to see they come

true. To realize those dreams, your need for protection, investment, and financial

liquidity keeps changing at different stages of life. When you reach a certain stage in

life, you need your money to grow and see new heights. This plan helps you meet all

your investment and insurance needs and gives you an opportunity to invest your

money where it grows much faster than your expenses. This policy will provides

you comprehensive protection from 3 Ds i.e. Death, Disease and Disability.

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

will also pay you the fund value. Flexible Investment with choice of four

attractive fund options, lump sum investment in your plans through top

ups as per your cash flow, increasing death benefits, flexibility to choose

premium payment terms are few of the benefits you can enjoy through this

policy. Flexible Investment with choice of four attractive fund options

Criteria Eligibility

38

Entry Age (age as at last birthday)

Any age between 91 days to 70 years

(maximum issue age is 50 years with DD

rider and 55 years with PAB rider)

Policy term (in whole years)

5 years to 75 years (For regular pay

policies minimum tenure must be more

than 10 years)

Maximum Maturity Age 75 years on last birthday

Minimum Sum AssuredSingle Pay: Rs. 62,500 Other payment

options: Rs. 250,000

Minimum Annual Target Premium (for

regular and limited pay)

Rs. 50,000 per annum

Minimum Single premium Rs. 50,000

Maturity BenefitAt maturity value, we will pay you the fund value.

In addition to this:

← This plan also offers you the Settlement Option on maturity, where your policy

will continue for a period not exceeding five years, but the insurance cover will

terminate on maturity.

← Persistency Units - on paying regular premiums, we will allocate Persistency

Units to your unit account on the 9th policy anniversary and on every 3rd policy

anniversary thereafter provided your policy is in-force at that anniversary

Death Benefit

← Increasing Death benefit - Sum of fund value and sum assured of the policy on

death

← Level Death benefit - Higher of the Sum Assured or the fund value of the policy

on death

← However, if the Life Insured dies before attaining

age 10 years, we will only pay the fund value of

the policy.

39

Select any one or all of the mentioned funds

FundSecure Fund

Conservative

Fund

Balanced

Fund

Growth

FundInvestment Type

Government

Securities50-100% 50 - 80% 20 - 50% 0 - 30%

Corporate Bonds 0-50% 0 - 50% 20 - 40% 0 - 30%

Money Market

Instruments / Cash0-20% 0 - 20% 0 - 20% 0 - 20%

Equities NIL 0 - 15% 10 - 40% 20 - 70%

 

Flexibilities

Switching: We provide you this facility to change the investment pattern by moving

from one fund to other fund(s) amongst the funds offered under this contract. Every

policy year, we offer you six free switches.

Premium Re-Direction: This is the facility that allows you to modify the allocation of

premiums into an investment pattern that is different from the existing pattern. Every

policy year we offer you three free redirections.

Partial Withdrawal: If you wish to withdraw a part of your fund, you can make partial

withdrawals up to 20% of surrender value in case of level death benefit or 50% of

surrender value in case of increasing death benefit in any policy year by cancellation of

units from your unit account. Partial withdrawals are allowed only after three policy

years.

Surrenders: In case of unforeseen needs ensures easy liquidity to you by accessing your

fund through surrender benefit. However, the policy will only have a surrender value

after you have paid premiums equivalent to two years ATP.

SMART ASSURE PLAN

We double your benefits smartly

40

It is hard to earn money in today's world so everybody expects their money to grow

through smart investment plans. SMART Assure is one of the unique Unit linked Life

insurance plan that not only provides you an insurance coverage but also effectively

invests your money in the choice of your funds in a range of asset classes to suit your risk

profile. This plan manages your hard earned savings professionally by allocating your

funds dynamically in the market for maximum returns, which in turn will give you

freedom from tracking the market. It will provide you complete protection cover under

the hard circumstances, such as personal accident and dreadful diseases.

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

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

change the investment pattern by moving from one fund to other fund(s) amongst the

funds offered under this contract.

Criteria Eligibility

Entry Age 91 Days – 75 Years

Maturity Age Min 18 Years; Max 85 Years

Choice of Term 10 - 30 Years

Minimum Premium Rs. 20,000

Premium Payment Term Regular

Premium Payment Options Level Premium, Increasing Premium (5%

per annum)

Maturity Benefit: On maturity, we will pay you the Fund Value. However, if you do

not want the proceeds on maturity (i.e. incase you want to stay invested in market for

longer to take advantage of bull/bear run), you may choose to defer payment of proceeds

to up to 5 year by opting for the Settlement optionDeath Benefit: (Higher of)The

Fund Value prevailing on the date which immediately follows the date of intimation of

death to us; or sum insured.

Select any one or all of the mentioned funds

Fund Secure Conser- Balanced Growth Growth Dynamic

41

FundVative

FundFund Fund Super

Opportune

-

Unities

Investment

Type

Government

Securities

50-

100%50-80% 20-50% 0-30% 0-20% 0-100%

Corporate

Bonds 0-50% 0-50% 20-40% 0-30% 0-20% 0-100%

Money

Market

Instruments /

Cash

0-20% 0-20% 0-20% 0-20% 0-20% 0-40%

Equities NIL 0-15% 10-40% 20-70%70-

100%0-100%

 FlexibilitiesSwitching: This plan allows you to switch

between funds and allows you to change your risk

return profile of your existing investments,

safeguarding/increasing your investments for your

child. 6 Free switches are available to you in a Policy

Year...Premium Re-Direction: This plan allows you

to re-direct your future premiums. You can invest

your future premiums in a fund different from your

earlier fund, or to multiple funds in a ratio different

from your earlier ratio. 3 free re-directions are

available to you in a policy year. Partial

Withdrawal: You can make lump-sum partial

42

withdrawals from your funds at any time after the

policy has completed three years and within the

policy term chosen, provided the minimum amount

of partial withdrawal is Rs. 10,000. Surrenders: You

may by giving us a prior written request, surrender

this policy, at any time after the completion of first

policy anniversary, provided an amount equal to one

ATP has been paid by you. However, the surrender

value if any shall be paid only after the completion of

third policy anniversary.EASY LIFE RETIREMENT (PAR)

PLANRetirement is a time when you would like to do the things, which you could not

do due to lack of time and your busy life prior to your retirement. This is actually the

time when you can truly live your dream such as enjoying a completely relaxed life with

your near and dear ones, traveling to exotic vacation destinations, buying a lavish home

or a luxurious car, etc. However, to fulfill all these dreams you need sufficient savings or

finance. Catering to the diverse set of needs of various customers looking for retirement

planning, Max New York Life offers some splendid retirement plans, which would suit

their budget and lifestyle. Max New York Life's Easy Life Retirement Plan Regular

Premium/Single Premium (Participating) Policy is designed to help you save money for

your retirement. It also provides you with an opportunity to take home a regular

retirement income (i.e. pension).

Eligibility Criteria

Criteria Eligibility

Entry Age 20 - 60 years

Premium Payment Period 10 - 40 years

Sum Assured Limits Minimum= Rs. 1,00,000

43

*Chosen Retirement Age: the age on

which your annuity vests.Maximum= Rs. 10 Crore

Chosen Retirement 50 - 70 years

Deferment Period

(Subject to min. vesting age)10 - 40 years

44

Fund Secure

fund

Conservative

fund

Balanced

fund

Growth

fund

Growth

super Fund Investment type

Government

Securities

50-

100%50 - 80% 20 - 50% 0 - 30% 0-20%

Corporate Bonds

(investment grade)0-50% 0 - 50% 20 - 40% 0 - 30% 0-20%

Money Market

Instruments / Cash0-20% 0 - 20% 0 - 20% 0 - 20% 0 - 20%

Equities NIL 0 – 10% 10 - 40% 10 - 70% 70-100%

 FlexibilitiesSwitching: This plan allows you to switch between funds and allows you

to change your risk return profile of your existing investments, safeguarding/increasing

your investments for your child. 6 Free switches are available to you in a Policy Year.

Premium Re-direction: This plan allows you to re-direct your future premiums. You

can invest your future premiums in a fund different from your earlier fund, or to multiple

funds in a ratio different from your earlier ratio. 3 free re-directions are available to you

in a policy year.Partial Withdrawal: You can make lump-sum partial withdrawals from

your funds at any time after the completion of five policy years and within the policy

term chosen, provided the minimum amount of partial withdrawal is Rs.10, 000.

Surrenders: You may by giving us a prior written request, surrender this policy, at any

time after the completion of first policy anniversary, provided an amount equal to one

ATP has been paid by you. However, the surrender value if any shall be paid only after

the completion of third policy anniversary.

45

SMART INVESTMENT PENSION PLANRetirement can be the best phase in

your life with all the time in the world to live all your dreams and do the things, which

you always wanted to do but couldn't due to lack of time and your busy schedule prior to

your retirement. Today, individuals have realized the need to provide for themselves

during their retirement years. It's very important to invest early so that you can have the

required financial backup and get the advantage of investments that grow and multiply

every year, which would give you the added advantage in the future. You need a

retirement plan through which you would continue to earn a satisfying income and enjoy

a comfortable lifestyle post retirement.Offering competitive returns to secure the golden

years of your life, Max New York Life's SMART Investment Pension Plan is

a comprehensive unit linked pension plan to meet

your post retirement financial needs, ensuring you

complete peace of mind. One-third of the corpus can

be commuted at vesting age the amount commuted

are eligible for tax exemption u/s 10

Eligibility Criteria

Criteria Eligibility

Entry Age 18 - 60 years

Premium Payment Period Regular / Single

Deferment Period 10 - 52 years

Vesting Age 50 - 70 years

Minimum ATPRegular Pay - Rs. 10,000

Single Pay - Rs. 150,000

RETURNS-SMART Invest pension plan provides you competitive returns to secure the

golden years of your life

46

PROTECTION- SMART Invest pension plan ensures that you’re hard earned

funds are invested prudently, effectively combating Inflation, preserving your

objective of a secure retirement

LIQUIDITY- SMART Invest pension plan provides you easy liquidity for

unforeseen expenses

FLEXIBILITY- SMART Invest pension plan provides you flexible options for

your changing needs

1. Invest more through Top-ups to match your cash flow

2. Flexibility to choose Premium Payment Option

3. Flexibility to choose Deferment Period

4. Flexible Investment funds

5. Dynamic Fund Allocation

Tax Benefit –

1. Your premiums are eligible for deduction u/s

80CCC up to Rs.150, 000/- every year.

2. one-third of the corpus can be commuted at

vesting age the amount commuted are eligible for

tax exemption u/s 10A

Eligibility Criteria

Criteria Eligibility

Entry Age 18 - 60 years

Premium Payment Period Regular / Single

Deferment Period 10 - 52 years

Vesting Age 50 - 70 years

Minimum ATPRegular Pay - Rs. 10,000

Single Pay - Rs. 150,000

47

Select any one or all of the mentioned funds

Investment TypeSecure

Fund

Conservative

Fund

Balanced

fund

Growth

Fund

Growth

super

Fund

Government

Securities50-100% 50 - 80% 20 - 50% 0 - 30% 0-20%

Corporate Bonds

(investment

grade)

0-50% 0 - 50% 20 - 40% 0 - 30% 0-20%

Money Market

Instruments

/Cash

0-20% 0 - 20% 0 - 20% 0 - 20% 0-20%

Equities NIL 0 - 15% 10 - 40%10 -

70%

70-

100%

DYNAMIC FUND ALLOCATION

Standardized and Systematic approach of maintaining debt-equity ratio throughout the

policy term Strikes right balance between risk and return with respect to age of policy

holder Hassle Free Investment (Allocation, Switches, Redirection are taken care of)

Hedge against capital erosion in the later year’s Ideal feature for less savvy investors

48

← LIFELINE MEDICASH PLANToday, the lifestyles of individuals are

such that they suffer from great stress on regular basis. The long hours at the

workplace, inadequate or very little exercise, and improper diet weakens the

immune systems to such an extent that people are at an increased risk of

contracting various illnesses. Illnesses such as obesity, heart attacks, and high

blood pressure are quite common these days among young people especially those

living in urban areas. Thus, heath insurance has become more and more a

necessity today.Max New York Life offers various Health Plans have been

designed to take into account the diverse set of needs at times of an individual's ill

health. They insure you against various illnesses and guarantee financial security

should you ever require any kind of treatment. Max New York Life's Lifeline-

MediCash™ health Insurance plan provides you support by giving you hospital

cash benefit, whenever you are hospitalized. Through this plan you will get a

fixed benefit towards hospitalization, ICU and recuperation (post

hospitalization).Cashless hospitalization available in over 4000+ network

hospitals across the country Fixed daily hospitalization benefit available

irrespective of amount of actual billing. Benefits are payable in addition to any

other health insurance cover that you may have with us or any other insurer. The

premiums are guaranteed for five years from the effective date. After five years,

the Company may revise the premium rates based upon the actual review of the

claims experience subject to prior approval of IRDA. Guaranteed Long-Term

coverage for 10 years subject to payment of premium made by you. Premium

discount incase policy is claim-free for first 5 years. Tax benefit on the premium

paid up to Rs.15, 000 under section 80 D of the Income Tax Act.

Eligibility Criteria

Criteria Eligibility

Minimum / Maximum Age At Entry18 years to 55 years (Age At Last

Birthday)

Policy Term 10 years

49

Maximum Age at Maturity 65 years

Premium Guarantee 5 years

Premium Table (Sample*) Units 3

Age (yrs) Male Female

20

30

40

50

4824

5082

6105

8652

4179

4638

6288

8562

Premium Payment Frequency Half Yearly and Yearly

Reinstatement after LapseAllowed only till 180 days from Lapse

Date

Premium LimitsMinimum: Rs. 2,500 (Yearly Mode)

and Rs. 1,300 (Half Yearly Mode)

Waiting Period 90 days from policy commencement apart

from hospitalization due to accidents

 

Benefits Number Of Units Bought

  1 2 3 4 5

Daily Hospital

Cash1000 2000 3000 4000 5000

Daily ICU Cash 2000 4000 6000 8000 10000

Recuperating Cash

(Lump-Sum)3000 6000 9000 12000 15000

Annual Limit

(Days)

(Aggregated for all

the benefits)

50 days of Hospitalization

Policy Term Limit

(Days)

250 days of hospitalization

50

(Aggregated for all

the benefits

LIFELINE MEDICASH PLUS PLANIn your long and interesting journey of

life, it's always better to be prepared to face any unforeseen incidents that may take place

in one's life. People normally insure their home, child's education, car, and even their

retirement. However, many a times they forget to insure their health. It's a proven fact

that illnesses strike without warning, which again can affect one's finances. Thus, it's

important to have a good health cover that would take into account the diverse set of

needs at times of an individual's ill health. Sound health insurance planning ensures that

you receive direct medical expenses and indirect expenses, as soon as the situation arises.

Max New York Life health insurance schemes can act as a catalyst in safeguarding your

peace of mind and eliminating all worries about your future treatment expenses.

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

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

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

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

under LifeLine – MediCash™ plus for more than 400 listed surgeries that you may

undergo.

Eligibility Criteria

Criteria Eligibility

Minimum / Maximum Age At Entry 18 years to 55 years (Age At Last Birthday)

Policy Term 10 years

Maximum Age at Maturity 65 years

Premium Guarantee 5 years

Premium Table (Sample*) Units 3

Age (yrs) Male Female

20

30

40

5886

6429

8424

5328

6078

8169

51

50 13194 11922

Premium Payment Frequency Half Yearly and Yearly

Reinstatement after Lapse Allowed only till 180 days from Lapse Date

Premium LimitsMinimum: Rs. 2,500 (Yearly Mode)

and Rs. 1,300 (Half Yearly Mode)

Waiting Period 90 days from policy commencement apart

from hospitalization due to accidents

52

Benefits Number Of Units Bought

  1 2 3 4 5

Daily Hospital

Cash1000 2000 3000 4000 5000

Daily ICU Cash 2000 4000 6000 8000 10000

Recuperating

Cash (Lump-

Sum)

3000 6000 9000 12000 15000

Annual Limit

(Days)50 days of Hospitalization

Policy Term

Limit (Days)250 days of Hospitalization

Surgical Cash

( Lump-Sum Up

to Rs)

50,000 100000 150000 200000 250,000

Minor (10%) 5,000 10,000 15,000 20,000 25,000

Intermediate

(15%)7,500 15,000 22,500 30,000 37,500

Major (35 %) 17,500 35,000 52,500 70,000 87,500

Supra major

(100%)50,000 100,000 150,000 200,000 250,000

OthersUp to

10,000

Up to

10,000

Up to

10,000

Up to

10,000

Up to

10,000

 

53

DOMESTIC MEDICAL CONCIERGE: EMERGENCY SERVICES

WITH INTERNATIONAL SOSUnder this value added benefit, we offer the

following through SOS International:Telephonic Medical first-aid advice while traveling

Nearest Medical Service Provider References and contact details

Name and contact details for specialist doctors

Emergency Medical Arrangement

Transportation where member requires hospitalization

Emergency Medical Repatriation

Return to place of residence in case of medical emergency

WHOLE LIFE PARTICIPATING PLAN

With an insurance cover till age 100, Whole Life Participating Plan is designed to

provide you a lifetime of security. The good times that you and your family lead should

last a lifetime. However one cannot avoid unpleasant surprises and misfortunes in life.

The Whole Life Plan provides you with the comfort that your near and dear ones will

continue to live their lives in comfort without financial worries even when you are not

around.

The Whole Life Plan provides an insurance cover that is guaranteed for life. The policy

also builds cash value, which you can use to fund any unforeseen needs. In addition, the

policy is also eligible for bonuses. Max New York Life’s savings plans are designed to

provide the customer the dual benefits of protection along with the potentially higher

returns. This plan also allows you to purchase additional benefits in the form of bonuses

that will be paid on maturity of the Base policy or in the unfortunate event of the death of

the Life Insured. Additionally, you can also continue to invest more funds without having

to provide any further evidence of insurability.

54

Criteria Eligibility

Entry age 91 days to 70 years

Maximum Maturity Age 100 years

Premium Payment Term Regular

Minimum Sum Assured Rs. 100,000

Maximum Sum Assured Rs. 5 Crore

Benefits

Maturity Benefit

We will pay an amount equal to Sum Assured along with accrued bonus (if any)

Death Benefit

We will pay an amount equal to Sum Assured along with accrued bonus (if any)

If death occurs before life insured reaches age 10, the company will refund all the

premiums paid along with interest

Option to Participate in Progressive Bonuses

It allows you to top up your premiums to purchase additional Sum Assured towards your

existing policy. It also generates further bonuses.

Bonus Options

o Paid in Cash

o Premium Offsett

o Paid up Additions

55

CHAPTER-3

RESEARCH

METHODOLOGY

56

RESEARCH METHODOLOGY

a. TITLE

“Customer Perception towards Max New York Life Insurance

Products”

i) Title Justification

Customer Perception towards Max New York Life Insurance Products

Insurance is the pooling of fortuitous losses by transferring such risks to insurers,

who agree to indemnify the insured, for such losses, to provide other pecuniary benefits

on their occurrence, or to render services connected with the risk. Insurance industry

can be split into two sectors – long term and general insurance. Long term insurance

encompasses Life insurance, Pensions, Annuities and Health Insurance. General

Insurance covers Motor Vehicles, Property, Accident and Health, Pecuniary loss and

General Liability.

Liberalization of insurance sector has infused competition and widened insurance

market. Now consumers have a wide array of choice of products even customized to their

needs with riders & add on benefits, Prompt customer service etc. All types of

distribution (Banc assurance, Brokers, Telemarketing, internet, work site marketing)

already tested or experimented with in rest of world are also being adopted in India.

b. OBJECTIVES

i) Objective one

To study and identify the reasons for buying the Insurance products in India and to

find out what policies Max New York is providing vis-à-vis its competitors also to

study the Life Insurance products available in the market

ii) Objective two

To know the Most Preferred Policy and to understand the functioning of an insurance

company also to know the origin and history of life insurance companies and to seek an

insight into response of Max in lieu of private competition.

57

iii) Objective three

To study and identify the reasons for buying the Insurance products in India and to find

out what policies Max New York is providing vis-à-vis its competitors also to study the

Life Insurance products available in the market and to know the Most Preferred Policy

c. SCOPE OF THE STUDY

The main problem is to known the level of awareness about life insurance among who

can afford to buy insurance especially now when a number of private insurer have

entered the market. The researcher would also like to establish the main reasons being

buying a life insurance policy, to know what type of cover is most preferred by people.

d. SIGNIFICANCE OF THE STUDY

i Significance for the Industry

The other reasons for opening up the insurance sector to the private insurers are as

under:

1. To augment the flow of long-term financial resources to finance the growth of

Infrastructure.

2. To provide better Insurance coverage to Indian citizens.

3. The Public Sector Insurance Companies had not succeeded in extending the

insurance cover to all the needy people of the country due to various reasons.

Hence this onerous responsibility now has been entrusted to the private

insurers.

4. Penetration of Insurance: LIC and GIC could not ensure very fast growth of

insurance in India even in a long period extending over four decades. Hence

the penetration of insurance is very low in India.

ii Significance for the Researcher

The primary study will be targeted towards the marketers. The study will also include

semi-structured interview with marketing managers of various Insurance companies who

are successfully selling Life Insurance Policies to Indian Consumers.

58

e. RESEARCH DESIGN

i) Probability / Non- probability

The sampling design for this study was non- probability sampling. Under this

design, the method of sampling used was quota sampling. In quota sampling,

interviewers are simply given quotas to be filled from different stratas, with some

restrictions on how they are to be filled.

ii) Exploratory/ descriptive/ experimental Research etc.

The adopted research methodology is based upon the collected primary data

through which the most recent and accurate piece of first hand information could

be collected. Secondary data is used to support primary data wherever needed.

f. SAMPLING METHODOLOGY

i) Sampling unit

The study encompasses all the salaried people of different age group in India.

ii) Sampling Technique

Data is the data which is collected form direct interaction with the target sources and

which is raw in hand and is used for the first time.

iii) Sampling Area

Locale: Here the locale of the study is all the people working and living in Delhi & NCR.

It is restricted to Delhi only because of time & resource constraints.

iv) Sampling Size

The size of the sample was around 400 people considering the time constraint.

g. LIMITATIONS

1. The study was limited only to the city of Delhi and NCR

2. The study was conducted only for a short period of one month

3. The study is based on the assumption that information provided by the respondents is

true

59

CHAPTER-4

DATA ANALYSIS

AND

INTERPRETATION

60

DATA ANALYSIS AND INTERPRETATION

1. DATA SHOWING AGE GROUP?

a) 18 – 25 years

b) 26 – 35 years

c) 36 – 49 years

d) 50 – 60 years

e) Above 60 years

47%

25%

17%

9%

2%

18 - 25 years

26 - 35 years

36 - 49 years

50 - 60 years

More than 60 years

Interpretation: From the chart above we find that 47% of the respondents fall in the age

group of 18 – 25 years, 25% fall in the age group of 26 – 35 years and 17% fall in the age

group of 36 – 49 years. Therefore most of the respondents are relatively young (below

26 years of age). These individuals could be induced to purchase insurance plans on the

basis of its tax saving nature and as an investment opportunity with high returns.

Individuals at this age are trying to buy a house or a car. Insurance could help them with

this and this fact has to be conveyed to the consumer. As of now many consumers have a

false perception that insurance is only meant for people above the age of 50. Contrary to

popular belief the younger you are the more insurance you need as your loss will mean a

great financial loss to your family, spouse and children (in case the individual is married)

who are financially dependent on you.

61

2. DATA SHOWING GENDER?

a) Male

b) Female

INTERPRETATION:

In the survey of 400 people 278 were males and 122 were females therefore the

maximum percentage was covered by male.

62

Gender of the respondents

122

278

0

50

100

150

200

250

300

Male Female

Male

Female

No

. o

f re

spo

nd

en

ts

3. DATA GIVES PREFERENCE OF RESPONDENTS OF LONE OMAXE

COMPANY

LIC

a) SBI

b) ICICI-PRU

c) MNYL

d) HDFC

INTERPRETATION

Maximum number of respondents prefer lic i.e 78% and least no. of respondent i.e 2%

prefer HDFC

63

4. DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY

RESPONDENTS?

a) Cover Future Uncertainty

b) Tax deductions

c) Future Investment

INTERPRETATION

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

an insurance policy.

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

future investments respectively.

64

5. DATA PROVIDES FEATURES OF INSURANCE POLICY THAT

ATTRACTED RESPONDENTS ?

a) Money Back Conversance

b) Larger Risk Conversance

c) Easy Access to Agents

d) Low Premium

e) Company’s Reputation

INTERPRETATION

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

feature of the all.

65

6. DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE

RESPONDENTS ?

a. LIFE POLICY

b. NON LIFE POLICY

c. Both

INTERPRETATION

52% of the respondents have life insurance policy while 30% have both. (The % is

calculated out of 400 positive responses)

66

7. DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE ?

a) A saving tool

b) A tax saving device

INTERPRETATION

56% of the respondents have perception of insurance being a saving tool. And 44% of the

respondents have perception of insurance being a tax saving device.

67

8. DATA SHOWS PEOPLES HAVING INSURANCE?

a) Yes

b) No

INTERPRETATION

Of the sample size of 400 surveyed respondents 70% of the respondents are having

insurance policy.

30% of the respondents are no having insurance policy.

68

9. DATA SHOWS BUYING PROCESS OF THE PEOPLE?

a) Customer approached insurance company /agent

b) Company/agent approached customer

INTERPRETATION

44.5% of the respondents approached the insurance company/agent.

Whereas, 55.5% of the respondents were approached by the company/ agent.

69

10. DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT

TO SERVICE AGENT ?

a) Satisfied

b) Not Satisfied

INTERPRETATION

61% of the respondents are satisfied with their existing service agent. 39% of the

respondents are not satisfied with their existing insurance agent. All of those who have

taken a policy have responded.

70

11. DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX ?

a) Paying tax

b) Not paying tax

INTERPRETATION

Of the sample size of 400 respondents, all the respondents are paying tax.

71

12. DATA SHOWS REPONDENT’S INVESTMENTS FOR TAX SAVING

a) LIC

b) NSC

c) Bonds

d) PPF

e) PF

f) EPT

INTERPRETATION

29% of the respondents save their tax by investing in LIC, which is the highest among all

investment. This shows that most people for getting taxes benefits invest in LIC.

25% of the respondents do their tax saving by investing in NSC.

22% of the respondents to their tax saving by investing in bonds.

72

13. DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF

INVESTMENT FOR THEIR FUTURE

a) Fixed Assets

b) Bank deposits

c) Jewellery

d) Securities i.e. bonds, MFs

e) Shares

INTERPRETATION

38% of the respondents as with the view that fixed assets are the best form of investment

for security their future.

25% of the respondents are with the perception that insurance is the best form of

investment for security their future, which is one of the highest and this, shows that

insurance is an important key for security your future.

73

14. DATA SHOWS WHAT PEOPLE INTENT TO FAIN FROM THEIR

INVESTMENT?

a) Saving & Returns

b) Security

c) Tax benefits

INTERPRETATION

38% of the respondents intent to gain saving and returns from their investment.

35% of the respondent’s intent to gain security forms their investments.

Whereas, 27% of the respondent’s intent to gain tax benefits form their investments.

74

15. DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR

BUYING INSURANCE?

a) After 25 years

b) After 35 years

c) After 45 years

d) Anytime

INTERPRETATION

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

25 years.

10.5% of the respondents are with the view that insurance should be buoyed after the age

of 35 years.

Whereas, 60.5% of the respondents are with the view that buying of insurance do not

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

according to the need.

75

16. HOW MANY DATA SHOWS PEOPLE INTERESTED IN GOING

FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY

OFFERS BETTER SERVICE & PRODUCTS?

a) Yes

b) No

c) Uncertain

INTERPRETATION

The interested customer i.e. 43% are ready to go for insurance even away form a city of

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

New York Life Insurance to take them on their favor.

76

CHAPTER-5

FACTS

AND

FINDINGS

77

1. DATA SHOWING AGE GROUP?

a) 18 – 25 years

b) 26 – 35 years

c) 36 – 49 years

d) 50 – 60 years

e) Above 60 years

Age group No. of Respondents %Age

18 - 25 years 188 47

26 - 35 years 100 25

36 - 49 years 68 17

50 - 60 years 36 9

More than 60 years 8 2

Total 400 100

2. DATA SHOWING GENDER?

a) Male

b) Female

Particulars No. of Respondents %Age

Male 308 77

Female 92 23

Total 400 100

78

3. DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE

COMPANIES

a) L.I.C.

b) MAX NEW YORK LIFE INSURANCE

c) ICICI PRUDENTIAL

d) SBI LIFE

e) HDFC

COMPANY’S NAME NO. OF RESPONDENTS SHARE (%)

L.I.C. 312 78

MAX NEW YORK LIFE

INSURANCE

12 3

ICICI PRUDENTIAL 40 10

SBI LIFE 28 7

HDFC 8 2

TOTAL 400 100

4. DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPNDENTS

a) Cover Future Uncertainty

b) Tax deductions

c) Future Investment

BENEFITS NO.OF RESPONDENTS SHARE (%)

Cover Future Uncertainty 220 55

Tax deductions 80 20

Future Investment 100 25

Total 400 100

79

5. DATA PROVIDES FEATURES OF INSURANCE POLICY THAT

ATTRACTED RESPONDENTS

a) Money Back Conversance

b) Larger Risk Conversance

c) Easy Access to Agents

d) Low Premium

e) Company’s Reputation

FEATURE NO. OF

RESPONDENTS

SHARE (%)

Money Back Conversance 60 15

Larger Risk Conversance 148 37

Easy Access to Agents 28 7

Low Premium 120 30

Company’s Reputation 44 11

TOTAL 400 100

6. DATA PROVIDES NUMBER OF INSURANCE POLITY TYPE

RESPONDENTS

a) LIFE POLICY

b) NON LIFE POLICY

c) BOTH

POLICY TYPE NO. OF RESPONDENTS SHARE (%)

LIFE POLICY 210 52%

NON LIFE POLICY 70 18%

BOTH 120 30%

Total 400 100%

80

7. DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

a) A saving tool

b) A tax saving device

RESPONSE NO. OF RESPONDENTS SHARE (%)

A saving tool 224 56%

A tax saving device 176 44%

Total 400 100%

8. DATA SHOWS PEOPLES HAVING INSURANCE

a) Yes

b) No

RESPONSE NO. OF RESPONDENTS SHARE (%)

Yes 280 70%

No 120 30%

Total 400 100%

81

9. DATA SHOWS BUYING PROCESS OF THE PEOPLE

a) Customer approached insurance company /Agent

b) Company/agent approached customer

BUYING PROCESS NO. OF RESPONDENTS SHARE (%)

Customer approached

insurance company /agent

178 44.5%

Company/agent approached

customer

222 55.5%

Total 400 100%

10. DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO

SERVICE AGENT

a) Satisfied

b) Not Satisfied

c) Not Responded

RESPONSE NO. OF RESPONDENTS SHARE (%)

Satisfied 246 61%

Not Satisfied 154 39%

Not Responded 0 0.0%

Total 400 100%

82

11. DATA SHOWS NUMBER OF PESPONDENTS PAYING TAX

a) Paying tax

b) Not paying tax

RESPONSE NO. OF RESPONDENTS SHARE (%)

Paying tax 400 100%

Not paying tax 0 0%

Total 400 100%

12. DATA SHOWS REPONDENT’S INVESTMENTS FOR TAX SAVING

a) LIC

b) NSC

c) Bonds

d) PPF

e) PF

f) EPT

INVESTMENTS NO. OF RESPONDENTS SHARE (%)

LIC 114 29%

NSC 100 25%

Bonds 89 22%

PPF 55 14%

PF 22 5%

EPT 20 5%

Total 400 100

83

13. DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF

INVESTMENT FOR THEIR FUTURE

a) Fixed Assets

b) Bank deposits

c) Jewellery

d) Securities i.e. bonds, MFs

e) Shares

NO. OF RESPONDENTS SHARE (%)

Fixed Assets 152 38%

Bank deposits 40 10%

Jewellery 76 19%

Securities i.e. bonds, MFs 100 25%

Shares 32 8%

Total 400 100%

14. DATA SHOWS WHAT PEOPLE INTENT TO FAIN FROM THEIR

INVESTMENT

a) Saving & Returns

b) Security

c) Tax benefits

RESPONSE NO. OF RESPONDENT SHARE (%)

Saving & Returns 150 38%

Security 140 35%

Tax benefits 110 27%

Total 400 100%

84

15. DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR

BUYING INSURANCE

a) After 25 years

b) After 35 years

c) After 45 years

d) Anytime

RESPONSE NO. OF RESPONDENTS SHARE (%)

After 25 years 116 29%

After 35 years 42 10.5%

After 45 years 0 0%

Anytime 242 60.5%

Total 400 100%

16. HOW MANY DATA SHOWS PEOPLE INTERESTED IN GOING FOR

INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS

BETTER SERVICE & PRODUCTS

a) Yes

b) No

c) Uncertain

RESPONSE NO. OF RESPONDENTS SHARE (%)

Yes 172 43%

No 176 44%

Uncertain 52 13%

Total 400 100%

85

CHAPTER-6

Conclusion & Suggestions

86

As the people think that insurance is a tool protect their family & a tax saving

device. They are aware of the fact & realizing its, importance. The company

should try to expand & build up its infrastructure because there is a large potential

for insurance in India.

Company should come up with its branch in Delhi. With the objective and goals

to meet the demands & expectations of the public. Because the entrance of private

players will increase the completion and it would be a tough task to secure a good

position in market.

Since Max New York Life Insurance is leading with several companies policies it

should be easy for them to penetrate into the market and secure a good position if

they pay greater attention to the service part provided to their customer and there

by forming a long and trusted relationship.

As seen from the survey that at present 70% of the customer are having insurance

policy out of which 87.5% of the customer are planning for new investments. So

it can be a good potential for the company and they should make an attempt to

trap these customers.

43% of the customer is even ready to go for insurance if a service provider away

form their home is providing it. But intend they should provide good products and

s3ervices. The company should provide good products and services. The company

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

87

88

First of all it taught me and my team members what insurance is all about.

The visit to various companies (organizations) gave us an excellent opportunity to know,

learn and understand various intangible things like their thinking patterns, how to deal

with different type of people in such a way so as to achieve our goals.

In order to get some information of some work done out of somebody it is very important

to highlight his interest in the whole affair.

The communication skills were improved a great deal upon.

The exposure to the field, taught how to deal with the difficulties and limitations of the

market.

How to identify and understand the needs of the customers.

How to interact in the corporate world.

Last, but not the least it made me realizes what an opportunity lies ahead of me in this

very field of insurance.

The project “Customer Perception towards Max New York Life Insurance Products

with a focus on market segmentation and to study the customer perception” for max

new york Life Insurance” has been mainly conceived with a view to have a insight of

insurance sector & to provide the company with essential factors which are looked upon

by the customers as well as buying behavior of the insurance policy.

It has been observed that people perception regarding insurance is that it is a tool to

protect their family, a tax saving device etc. people are focused towards the benefits of

the insurance & a strong need in felt for having the insurance. People are in the process of

buying policies one after the other and they do not feel the need of age specification for

purchasing insurance.

As the private insurance companies are emerging, people are having preoccupied

thinking that they will provide better products & services.

89

ANNEXURE

90

QUESTIONNAIRE

Personal Details:

Name: _____________________________________________________________

Sex:

Male

Female

Q.1. WHICH AGE GROUP YOU BELONG TO?:

a) 18-25

b) 26-35

c) 36-45

d) 46-55

e) Above 55

Q.2. WHICH C0’S INSURANCE POLICY YOU PREFER THE MOST?

a) LIC

b) ICICI PRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) MAX NEW YORK LIFE INSURANCE

f) HDFC

Q.3. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER?

a) COVER FUTURE UNCERTAINTY

b) TAX DEDUCTIONS

c) FUTURE INVESTMENT

d) ANY OTHER

91

Q.4. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?

a) LOW PREMIUM

b) LARGER RISK CONVERSANCE

c) MONEY BACK GUARANTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

Q.5. WHICH INSURANCE POLICY DO YOU HAVE?

a) Life

b) Non-Life

c) Both

Q.6. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

a) A SAVING TOOL

b) A TAX SAVING DEVICE

C) A TOOL TO PROTECT FUTURE

Q.7. Do you have any insurance policy?

a) Yes

b) No

Q.8. HOW HAS/ WOULD YOU BOUGHT/BUY AN INSURANCE?

a) CUSTOMER APPROACHED INSURANCE COS/ AGENT

b) INSURANCE COS APPROACHED CUSTOMER

92

Q.9. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

Q.10. DO YOU PAY TAXES?

a) Yes

b) No

Q.11 WHERE HAVE YOU INVESTED OR TAX SAVING?

b) LIC

c) NSC

d) BONDS

e) PPF

f) PF

g) EPF

Q.12. WHICH IS THE BEST FORM OF INVESTMENTS?

a) FIXED ASSETS

b) BANK DEPOSITS

c) JEWELLERY

d) SECURITIES, I.E. BONDS, MFS

e) SHARES

f) INSURANCE

93

Q.13. WHAT DO YOU INTENT TO FAIN FORM INVESTMENTS?

a) SAVING & RETURNS

b) SECURITY

c) TAX BENEFITS

Q.14. WHAT’ THE RIGHT AGE TO BUY INSURANCE?

a) After 25 years

b) After 35 years

c) After 45 years

d) Anytime

Q.15. HOW MANY PEOPLE INTERESTED IN GOING FOR INSURANCE IF

A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER

SERVICE & PRODUCTS

a) Yes

b) No

c) Uncertain

94

BIBLIOGRAPHY

BOOKS AND JOURNALS

a) Tripathy n.p. & pal, Prabir, insurance: theory and practice, prentice hall of India,

2006

b) Jyotsna sethi and nishwan Bhatia 2007, elements of banking and insurance,

prentice hall of India

c) Bihari and baral, insurance management, 2007

WEBSITES

a) www.maxnewyorklife.com

b) www.bimaguru.com

c) www.insurancemagic.com

d) www.indianexpress.com

e) www.investopedia.com

f) www.irdaindia.org

BOOK/MAGAZINES REFERRED:

a) Study guide – principles & practices of life / genera insurance, by aims

b) Books published by insurance institute of india

c) Life –insurance, by mc gill

d) Insurance watch

e) Money out look

95

96