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Customer Perception Towards Max New York Life Insurance Prod

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Submitted in the partial fulfillment of the degree of Master of Business Administration 2010-2012



B.S.Anangpuria Institute of Technology & Management Alampur,Faridabad. (Approved by AICTT, Govt of India and affiliated to M.D.U, Rohtak)

PREFACEThe 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 EconomyEvery 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 peoples 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


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.


EXECUTIVE SUMMARYThe 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 Lifes family of companies offer life insurance, annuities and long-term care insurance. New York Life Investment Management LLC provides institutional asset management and retirement plan services. 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.



S. No. 1. 2. 3. Introduction to Industry


Page No. 7 21 54

Introduction to Company Research Methodology b)Objectives c) Scope of the Study d) Significance of the Study e)Research Design f) Sampling Methodology g) Limitation

4. 5. 6. 7. 8. 9.

Facts and Findings Data Analysis and Interpretations Recommendations Conclusions Bibliography Annexure Questionnaire

58 67 84 86 88 90 90




INTRODUCTIONThe 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.


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,