project yash

7/28/2019 Project Yash

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A PROJECT REPORT ON

Potential of Life Insurance

Industry

By Rashi TyagiMBA 4 th SEM

BIT, Meerut

Max New York Life Insurance

Company Ltd.

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A PROJECT REPORT

ON

Potential of Life Insurance Industry

At

Submitted in partial fulfillment

Of

MASTERS OF BUSINESS ADMINISTRATION

(2011-2013)

Submitted by:

Rashi Tyagi

BHARAT INSTITUTE OF TECHNOLOGY

2

Company Guide:

Mr. M.Santhanam

Office Head,

Max New York Life,

Roorkee.

Faculty Guide:

Mrs. Bhawna

Assistant

Professor ,

BIT, Meerut.


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CERTIFICATE BY THE GUIDE

This is to certify that the project work entitled Potential of Life Insurance

Industry in Roorkee is a piece of work done by Rashi Tyagi, student of

Bharat Institute of Technology, under my guidance and supervision for the

partial fulfillment of the course MBA,Institute of Management Studies,

Roorkee.

To the best of my knowledge and belief the project embodies the work of the

candidate herself and has been duly completed. Simultaneously, the project

fulfills the requirements of the rules and regulations related to the summer

internship of the institute and I am assured that the project is up- to the standard

both in respect to the contents and language for being referred to the examiner.

Signature of the Faculty Guide

Name of Faculty Guide

Designation

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DECLARATION

I hereby declare that the project report entitled Potential of Life Insurance

Industry in Roorkee is the produce of my sincere effort. This Project Report

is being submitted by me alone, at Bharat Institute Of Technology, for the

partial fulfillment of the course MBA, and the report has not been submitted to

any other educational institutions for any other purpose.

Date: Signature

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CONTENTS

PARTICULARS PAGE NO.

1. Acknowledgement 7

2. Executive Summary 8

3. Introduction 9

(a) Introduction of the Industry 10

Life Insurance

General Insurance

Major Policy changes

Changing Face of Indian Insurance Industry Various types of Life Insurance Policies

(b)Introduction of the Company 18

Company Profile

Achievement

Management

Insurance Plans

4. Research Methodology 35

Objective Scope of study

Sampling Methodology

Limitations

5. Survey 40

Graph Analysis & Data Interpretation

6. Findings & recommendations 59

SWOT Analysis

Findings & Recommendations

Growth Potential

Conclusion

7. References 65

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8. Annexure 66

Questionnaire

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LIST OF GRAPHS

Particulars

[Fig 1]No of People Having Insurance

[Fig 2] Types of Insurance Policy Respondents Have

[Fig 3]Preferance of Respondents of Insurance Cos

[Fig 4] Benefits of Insurance Perceived by Respondents

[Fig 5]Features of Insurance Policy That Attracted Respondents

[Fig 6] Peoples Perception About Insurance

[Fig 7] Persons Having Insurance For

[Fig 8] Reasons Behind Taking Insurance Policies

[Fig 9] Satisfaction of Respondents With Respect to Policies

[Fig 10] Satisfaction of Respondents With Respect to Agents

[Fig 11] No of Respondents Paying Tax

[Fig 12] Respondents Perception About Best Form of Investment

[Fig 13] Peoples Perception of Appropriate Age For Buying Insurance

[Fig 14] Peoples Opinion About Insurance Companies in India

[Fig 15] What People Look For in Insurance Companies

[Fig 16] People Interested In Going For Insurance Away From Their City

[Fig 17] People Planning For New Investment

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ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibilities

to complete this project.

I want to thankOffice Head, Max New York Life, Roorkee,

Mr. M.Santhanam for giving me permission to commence this project in the

first instance, to do the necessary research work and for being my Company

Guide.

With a deep sense of gratitude and humble submission I would like to express

my heartiest gratefulness to my Faculty Guide Mrs. Bhawna, BIT- Meerut,

whose help, stimulating suggestions and encouragement helped me in all the

times of research for and writing of this project.

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EXECUTIVE SUMMARY

This is the first such type of report which is being made by me and in this

report I am putting all my experiences and the activity done by me which was

very much fruitful to me.

During this traiming programme I came to know that in todays corporate and

competitive world, the insurance sector has the maximum growth and potential

as compared to the other sectors. Insurance has the maximum growth rate of

70-80% while as FMCG sector has maximum 12-15% of growth rate. This

growth potential attracts me to enter in this sector and MAX NEW YORK

LIFE INSURANCE has given me the opportunity to work and get experience

in highly competitive and enhancing sector.

In this time frame I got the opportunity to know about the customers opinion

about the life insurance policy.

Agents are the best way for a company of Insurance sector through which

policies and benefits of the company can be explained to the customer.

This report helps me in finding out the potential of the insurance policies and

their performances on the basis of evaluation. By the help of this report,anyone

can get the idea of life insurance.

During my training, I organized surveys also which was of good use for the

company and me too, On the basis of analysis of responses.

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10

INTRODUCTION

Introduction of the Industry

Introduction of the Company

Company Profile

Achievements

Management

Insurance Plans


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THE HISTORY OF INDIAN INSURANCE INDUSTRY

The story of insurance is probably as old as the story of mankind. The same

instinct that prompts modern businessmen today to secure themselves against

loss and disaster existed in primitive men also. They too sought to avert the evil

consequences of fire and flood and loss of life and were willing to make some

sort of sacrifice in order to achieve security. Though the concept of insurance is

largely a development of the recent past, particularly after the industrial era

past few centuries yet its beginnings date back almost 6000 years.

Life Insurance

In 1818 the British established the first insurance company in India in Calcutta,

the Oriental Life Insurance Company. First attempts at regulation of the

industry were made with the introduction of the Indian Life Assurance

Companies Act in 1912. A number of amendments to this Act were made until

the Insurance Act was drawn up in 1938. Noteworthy features in the Act were

the power given to the Government to collect statistical information about the

insured and the high level of protection the Act gave to the public through

regulation and control. When the Act was changed in 1950, this meant far

reaching changes in the industry. The extra requirements included a statutory

requirement of a certain level of equity capital, a ceiling on share holdings in

such companies to prevent dominant control (to protect the public from any

adversarial policies from one single party), stricter control on investments and,

generally, much tighter control. In 1956, the market contained 154 Indian and

16 foreign life insurance companies. Business was heavily concentrated in

urban areas and targeted the higher echelons of society. Unethical practices

adopted by some of the players against the interests of the consumers then led

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the Indian government to nationalize the industry. In September 1956,

nationalization was completed, merging all these companies into the so-called

Life Insurance Corporation (LIC). It was felt that nationalization has lent the

industry fairness, solidity, growth and reach.

Some of the important milestones in the life insurance business in

India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government

to collect statistical information about both life and non-life insurance

businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance

companies.

General Insurance

The General insurance business in India started with the establishment of

Triton Insurance Company Limited in 1850 at Calcutta. In 1907, the first

company, The Mercantile Insurance Ltd. Was set up to transact all classes of

general insurance business. General Insurance Council, a wing of the Insurance

Association of India in 1957, framed a code of conduct for ensuring fair

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conduct and sound business practices. In 1968 the Insurance Act was amended

to regulate investments and to set minimum solvency margins. In the same year

the Tariff Advisory Committee was also set up. In 1972, The General

Insurance Business (Nationalization) Act was passed to nationalize the

general insurance business in India with effect from 1st January 1973. For these

107 insurers was amalgamated and grouped into four companys viz., the

National Insurance Company Ltd., the New India Assurance Company Ltd.,

the Oriental Insurance Company Ltd., and the United India Insurance

Company Ltd. General Insurance Corporation of India was incorporated as a

company

Some of the important milestones in the general insurance

business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to

transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound business

practices.

1968: The Insurance Act amended to regulate investments and set minimumsolvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972

nationalize the general insurance business in India with effect from 1st January

1973. 107 insurers amalgamated and grouped into four companies viz. the

National Insurance Company Ltd., the New India Assurance Company

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Ltd., the Oriental Insurance Company Ltd. and the United India

Insurance Company Ltd. GIC incorporated as a company.

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MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of

Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999,

Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of

holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999

paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public

sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were

permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its

nominees, do not exceed 26%, paid up equity capital of such Indian insurance company;

The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is Rs.100 crores.

The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance

agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting

Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th

August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head

Quarter at Hyderabad.

Changing face of Indian insurance industry:

Indian life-insurance market is the target market of all the companies who

either want to extend or diversify their business. To tap the Indian market there

has been tie-ups between the major Indian companies with other International

insurance companies to start up their business. The government of India has set

up rules that no foreign insurance company can set up their business

individually here and they have to tie up with an Indian company and this

foreign insurance company can have an investment of only 24% of the total

start-up investment.

Indian insurance industry can be featured by:

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Low market penetration.

Ever growing middle class component in population.

Growth of customers interest with an increasing demand for better

insurance products.

Application of information technology for business.

Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private

players, each of which are making strides in raising awareness levels,

introducing innovative products and increasing the penetration of life insurance

in the vastly underinsured country. Several of private insurers have introduced

attractive products to meet the needs of their target customers and in line with

their business objectives. The success of their effort is that they have captured

over 28% of premium income in five years.

The biggest beneficiary of the competition among life insurers

has been the customer. A wide range of products, customer focused service and

professional advice has become the mainstay of the industry, and the Indian

customers forms the pivot of each companys strategy. Penetration of life

insurance is beginning to cut across socio-economic classes and attract people

who have never purchased insurance before.

Life insurance is also now being regarded as a versatile financial

planning tool. Apart from the traditional term and saving insurance policies,

industry has seen the entry and growth of unit linked products. This provides

market linked returns and is among the most flexible policies available today

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for investment. Now products are priced, flexible, and realistic and sustain so

people in better position to understand the risk and benefits of the product and

they are accepting these innovative products.

So it is clear that the face of life insurance in India is changing,

but with the changes come a host of challenges and it is only the credible

players with a long term vision and a robust business strategy that will survive.

Whatever the developments, the future and the opportunities in this industry

will surely be exciting.

VARIOUS TYPES OF LIFE INSURANCE POLICIES:-

Endowment policies: This type of policy covers risk for a specified

period, and at the end of the maturity sum assured is paid back to

policyholder with the bonuses during the term of the policy.

Money back policies: This type of policy is for periodic payments of

partial survival benefits during the term of the policy as long as the

policy holder is alive.

Group insurance: This type of insurance offers life insurance

protection under group policies to various groups such as employers-

employees, professionals, co-operatives etc it also provides insurance

coverage for people in certain approved occupations at the lowest

possible premium cost.

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Term life insurance policies: This type of insurance covers risk only

during the selected term period. If the policy holder survives the term,

risk cover comes to an end. These types of policies are for those people

who are unable to pay larger premium required for endowment and

whole life policies. No surrender, loan or paid up values are in such

policies.

Whole life insurance policies: This type of policy runs as long as thepolicyholder is alive and is covered for the entire life of the policyholder.

In this policy the insured amount and the bonus is payable only to

nominee on the death of policy holder.

Joint life insurance policies: These policies are similar to endowment

policies in maturity benefits and risk cover, but joint life policies cover

two lives simultaneously such as married couples. Sum assured is

payable on the first death and again on the death of survival during the

term of the policy.

Pension plan: a pension plan or annuity is an investment over a certain

number of years but does not provide any life insurance cover. It offers a

guaranteed income either for a life or certain period.

Unit linked insurance plan: ULIP is a kind of insurance plan which

provides life cover as well as return on premium paid over a certain

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period of time. The investment is denoted as units and represented by the

value called as net asset value (NAV).

COMPANY PROFILE

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

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teamwork. The strategy is to establish itself as a trusted life insurance specialist

through a quality approach to business.

In line with its values of financial responsibility, Max New York Life has

adopted prudent financial practices to ensure safety of policyholder's funds.

The Company's paid up capital is Rs. 907.4 crore, which is more than the norm

laid down by IRDA.

Max New York Life has identified individual agents as its primary channel of

distribution. The Company places a lot of emphasis on its selection process,

which comprises four stages - screening, psychometric test, career seminar and

final interview. The agent advisors are trained in-house to ensure optimal

control on quality of training.

Max New York Life invests significantly in its training programme and each

agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated

by the IRDA before beginning to sell in the marketplace. Training is acontinuous process for agents at Max New York Life and ensures development

of skills and knowledge through a structured programme spread over 500 hours

in two years. This focus on continuous quality training has resulted in the

company having amongst the highest agent pass rate in IRDA examinations

and the agents have the highest productivity among private life insurers.

337 agent advisors have qualified for the Million Dollar Round Table (MDRT)

membership in 2007. MDRT is an exclusive congregation of the worlds top

selling insurance agents and is internationally recognized as the standard of

excellence in the life insurance business.

Having set a best in class agency distribution model in place, the company is

spearheading a major thrust into additional distribution channels to further

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grow its business. The company is using a five-pronged strategy to pursue

alternative channels of distribution. These include the franchisee model, rural

business, direct sales force involving group insurance and telemarketing

opportunities, bancassurance and corporate alliances.

Max New York Life offers a suite of flexible products. It now has 43 life

insurance products and 8 riders that can be customized to over 800

combinations enabling customers to choose the policy that best fits their need.

VISION

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

MISSION

Become one of the top quartile life insurance companies in India

Be a national player

Be the brand of first choice

Be the employer of choice

Become principal of choice for agents

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VALUES

Knowledge:

Knowledge leads to expertise; and our expertise is in helping people protect

themselves. Perfectly combining global expertise with local knowledge, we are

India's life insurance specialist. Max New York Life believes that for

knowledge to be of value it must be focused, current, tested and shared.

Caring:

Max New York Life is redefining the life insurance paradigm by focusing

on customers first. The service process is responsive, personalized, humane and

empathetic. Every individual who represents the company is for us our brand

champion.

Honesty:

Honesty is the heart of the life insurance business. It is all about trust.

Transparency, integrity and dependability form the cornerstones of the Max

New York Life experience. The company ensures that everyone who represents

the brand carries a promise : we care in word as well as deed.

Excellence:

Excellence at Max New York Life implies the ability to perform at a

consistently high level. Focused on the value of continuous improvement in

people, processes and the organization, the company strives for the highest

standards of quality in every aspect of its business.

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ACHEIVEMENTS

Max New York Life is the first life insurance company in India to be awarded

the IS0 9001:2000 certification.

Max New York Life was among the top 25 companies to work with in India,

according to 2003 Business World magazine, "Great Workplaces In India",

Max New York Life was ranked at the 20th position. This survey is the local

version of the "Great Places To Work" survey carried out every year in 22

countries.

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Been among top five most respected private life insurance companies in India

according to a 2004 and 2006 Business World survey.

Have truly built an enviable sales force. With 345 agents becoming members of

the MDRT in 2006, Max New York Life has moved up to 21st rank in MDRT

global list.

MANAGEMENT

BOARD OF DIRECTORS:

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Mr. Analjit Singh

Chairman,Max New York Life Insurance

Mr. Anuroop (Tony) Singh

Vice Chairman,


Mr. Rajesh Sud

CEO & Managing Director,


Mr. Rajit Mehta

Chief Operating Officer,


Mr. William Beaty

Director,


Mr. Richard L. Mucci

Director,



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Dr. Omkar Goswami

Director,


Ms. Marielle Theron

Director,


Mr. Leo Puri

Director,


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MANAGEMENT TEAM:

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Gary Bennett

Managing Director and CEO,

Max New York Life

Rajit Mehta

Executive Director,

Human Resources, Training and

Internal CommunicationsAnil Mehta

Director, Group Business


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Rajesh Sud

Executive Director, Distribution

Sunil Kakar

Director and Chief Financial

Sunil Sharma

Chief Operating Officer and Executive Director

INSURANCE PLANS

Protection Plans:Five Year Renewable and Convertible Term Insurance

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

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Ajay Seth

Director, Legal & Compliance


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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.

Level Term (Non Participating) Policy

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.

Children Plans:

Children's Endowment to 18 (Par) Plan

Max New York Life presents Children's Endowment Participating Insurance to

age 18 with an option to buy a permanent life insurance policy without medical

underwriting (irrespective of his/her health at that time). This policy which is

especially designed to enable you to provide for higher education of your child

and take care of your childs future needs in case of spiraling costs.

Children's Endowment to 24 (Par) Plan

Max New York Lifes Children's Endowment Participating Insurance to age 24

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provides an option to buy a permanent life insurance policy without medical

underwriting (irrespective of his/her health at that time). This policy enables you

to provide for various events in your childs life such as a grand wedding of

your child. This excellent plan is a participating plan, which is also eligible for

bonuses and Max New York Life may declare these bonuses from time to time

and from the third policy year. An important feature of this plan is that the entire

sum assured is paid out on maturity and the plan automatically vests when the

child turns 18.

Stepping Stones (Par) Plan

Max New York Lifes Stepping Stones is a smart way to plan your childrens

education and their future irrespective of whether you are there or not. It

provides you with regular money when it is required. This policy also builds

cash value, which you can use during your lifetime to fund any unforeseen

needs by surrendering accumulated PUAs. This policy also entitles you to make

partial withdrawals for various unplanned expenses in the future.

SMART Steps Plan

Introducing Max New York Lifes regular premium unit linked life insurance

childrens plan SMART Steps, which will help you plan for your child's

future in a SMART way and takes your worries away. This plan offers therequired financial protection for your loved ones if you are not alive and

provides an unmatched investment opportunity by way of well managed

investment funds. This policy also entitles you to make partial withdrawals for

various unplanned expenses in the future.

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SMART Steps Plus

A regular premium unit linked life insurance plan, Max New York Lifes

SMART Steps Plus will help you plan for your child's higher education,

marriage, and financial security. This plan offers no-compromise 360 degree

protection to your children even if you are not alive and provides an unmatched

investment opportunity by way of well managed investment funds. This policy

also entitles you to make partial withdrawals for various unplanned expenses in

the future.

SMART Steps Single Premium Plan

Max New York Lifes SMART Steps Single Premium policy will help you

plan for your child's future in a SMART and organized manner. Apart from

offering 360 degree protection to your child if you are not alive, this plan also

provides an unmatched investment opportunity by way of well managed

investment funds. This policy also entitles you to make partial withdrawals for

various unplanned expenses in the future.

Investment Plans:

Life Maker Premium Investment Plan

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

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market returns. You can choose to invest your premiums in one or more of

these funds, basis your risk taking ability.

Life Maker Platinum - a Unit Linked Investment Plan

With the Life Maker Platinum - a Unit Linked Investment Plan, you can

meet all your financial needs, without the tedium of managing multiple

products. In this plan, you can direct your investments in the customized unit

linked funds such as equities, money market instruments, investment grade

corporate bonds, and government securities. These funds offer a wide range of

returns basis market returns. You can also choose to invest your premiums in

one or more of these funds, basis your risk taking ability.

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Life Maker Gold Plan

This plan enables you to choose an attractive investment fund, enjoy free

loyalty units and tax benefits on premiums and maturity value. Life Maker

Gold Plan also provides you insurance cover, in which, your nominee will get

the Sum Assured plus the Fund Value to your nominee(s), in case of

unfortunate event of your death. Our Plan also offers you the flexible

investment feature, where you can choose one out of four attractive funds

options and also change your risk return profile of your existing investments by

switching across funds with our high customization feature.

Life Invest Plan

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.

SMART Assure Plan

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

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Retirement Plans:

Easy Life Retirement (Par) Plan

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).

SMART Invest Pension Plan

Offering competitive returns to secure the golden years of your life, Max New

York Life's SMART Invest 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 10A.

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Health Plans:

LifeLine-MediCash Plan

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).

LifeLine-MediCash Plus Plan

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.

LifeLine-Wellness Plan

Max New York Life's LifeLine-Wellness is a health plan, which would

provide you 360-degree benefit in terms of long tenure of coverage, coverage

for 10 critical illnesses, and permissible tax benefit under an Income Tax Act.

LifeLine-Wellness Plus Plan

Max New York Life's LifeLine-Wellness Plus health plan provides a

wonderful benefit system in terms of long tenure of coverage, coverage for 38

critical illnesses and tax benefit.

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LifeLine-Safety Net Plan

Recognizing the need for a complete all round financial protection for you and

your family, Max New York Life Insurance Company offers you a term cum

health insurance - LifeLine-Safety Net , the new age insurance covering

death, disability, disease and accident under one single plan.

SOME OF THE OTHER PLANS ARE:

SAVINGS PLANS:

W hole Life Participating

20 Year Endowment (Par)

Endowment to Age 60 (Par)

Life Gain Plus 20 (Par)

Life Gain Plus 25 (Par)

Life Pay Money Back

Life Gain Endowment

Life Partner

RURAL PLANS:

Max Suraksha

Easy Term Policy

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STRATEGIC PRODUCTS PLANS:

Bancassurance

Super Saver Bond

Capital Builder

Additional Distribution

Max Mangal

Max Vriksha

Capital Builder

Max Amsure

Future Builder

Family Money Back

Bonus Builder

Business Builder

Secure Returns builders

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RESEARCH METHODOLOGY

Objective

Scope of study

Sampling methodology

Limitations


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RESEARCH METHODOLOGY

TITLE:

To Study Potential of Life Insurance Industry in Roorkee.

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with studying the

buying pattern in the insurance industry with a special focus on Max New

York life Insurance. The various segments of the markets divided in terms of

Insurance Needs, Age groups, Satisfaction levels etc will also studied.

OBJECTIVE

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Main objective of the research is to have an analysis of life insurance industry

in Roorkee. To accomplish this objective it has been divided into five.

To determine reasons behind opting for an insurance.

To know the most preferred policy.

To determine customers perception towards private insurance companies

and their expectation form private insurance companies.

To determine the feedback on services provided by an insurance agent.

To study the types of benefits provided by insurance services.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large

number of new players have entered the market and are trying to gain market

share in this rapidly improving market. The study deals with Reliance in focus

and the various segments that it caters to. The study then goes on to evaluate

and analyze the findings so as to present a clear picture of trends in the

Insurance sector.

SIGNIFICANCE TO THE INDUSTRY:

This is a limited study which takes into consideration the responses of 100

people. This data can be explorated to take in the trends across the industry.

The significance for the industry lies in studying these trends that emerge from

the study. It is a rapidly changing and evolving sector. People are only

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beginning to wake up to its vast possibilities. A study like this can attempt to

guide the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER:

To facilitate and provide useful information for the study of the company and

the insurance industry and also provide recommendations for Max New York

Life.

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RESEARCH DESIGN

NON-PROBABILITY

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The

sources of information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews were

conducted to collect the customers perception and buying behavior, through

this questionnaire.

SAMPLING METHODOLOGY

Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the

research. A pilot study was done in order to know the accuracy of the

Questionnaire. The final Questionnaire was arrived only after certain important

changes were done. Thus my sampling came out to be judemental and

convinent.

Sampling Unit:

The respondents who were asked to fill out questionnaires are the sampling

units. These comprise of employees of MNCs, Govt. Employees, Self

Employed etc.

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Sample size:

The sample size was restricted to only 100, which comprised of mainly peoples

from different regions of Roorkee due to time constraints.

Sampling Area:

The area of the research was Roorkee, Uttarakhand.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Roorkee and does not

necessarily shows a pattern applicable to all of Country.

2. Some respondents were reluctant to divulge personal information which

can affect the validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one segment can

change very quickly. The environmental changes are vital to be considered

in order to assimilate the findings.

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SURVEY

Graph Analysis

Data Interpretation


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DATA ANALYSIS & INTERPRETATION

NUMBER OF PEOPLE HAVING INSURANCE

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Yes 70 70%

No 30 30%

Total 100 100%

YES

70%

NO

30%

[Fig 1]

INTERPRETATION

Of the sample size of 100 surveyed respondents 70% of the respondents are

having Insurance policy.

30% of the respondents are either not having any Insurance policy at

present or their policy is already matured.

And at present 100% of the respondents are with the view that Insurance is

a tool to protect your family.

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TYPES OF INSURANCE POLICY RESPONDENTS HAVE

POLICY TYPE NO. OF

RESPONDENTS

SHARE (%)

LIFE POLICY 55 55

NON LIFE POLICY 15 15

BOTH 30 30

Life

Policy, 55

Non Life

Policy, 15

Both, 30

[Fig 2]

INTERPRETATION

55% of the respondents have only Life Insurance Policy.

while 30% of the respondents have both.

15% of the respondents have only Non- life Policy.

[Some of the respondents opted for two or more than two items]

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PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

COMPANYS NAMENO.OF

RESPONDENTSHARE (%)

L.I.C. 78 78

RELIANCE LIFE INSURANCE 3 3

ICICI PRUDENTIAL 10 10

SBI LIFE 7 7

Max New York Life 2 2

TOTAL 100 100

LIC

78%

REL3%

ICICI

10%

SBI

7%

MNYL

2%[Fig3]

INTERPRETATION

78% of the people contacted prefer LIC policy to any other and therefore

it is ranked no.1 by that percent of respondents.

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BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

BENEFITSNO.OF

RESPONDENTSSHARE (%)

Cover Future Uncertainty 55 55

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100

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.

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Cover Future

Uncertainty55%

Tax

Deductions20%

Future

Investment25%

[Fig 4]


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FEATURES OF INSURANCE POLICY THAT ATTRACTED

RESPONDENTS

FEATURE NO.OF

RESPONDENTS

SHARE (%)

Money Back Guarantee 15 15

Larger Risk Coverage 37 37

Easy Access to Agents 7 7

Low Premium 30 30

Companys Reputation 11 11

TOTAL 100 100

MONEYBACK

GUAARENTEE

15%

LARGERRISK

COVERAgE37%

EASYACCESS TO

AGENTS7%

LOWPREMIUM

30%

REPUTATION OF

COMPANY11%

[Fig 5]

INTERPRETATION

Majority of the respondent (37%) found larger risk coverage as the

most attracted feature of the all.

Minimum respondents (7%) opted for easy access to agents.

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PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect your family 100 100%

A savings

tool, 81A tax saving

device, 74

A tool toprotect yoourfamily, 100

0

20

40

60

80

100

120

A savings tool A tax saving device A tool to protect yoour family

[Fig 6]

INTERPRETATION

81% of the respondents have perception of Insurance being a saving tool.

And 74% of the respondents have perception of Insurance being a tax

saving device.

But 100% of the respondents are with the view that Insurance is a tool to

protect your family.


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PERSONS HAVING INSURANCE FOR

Response No of respondents

self 40

spouse 28

children 21

parents 18

all 11

0

5

10

15

20

25

30

35

40

45

Self Spouse Children Parents All

[Fig 7]

INTERPRETATION

Among that 42% people who having insurance, they have insurance 40% for

self, 28%for spouse ,21% for children and 18% for their parents and 11% for

all family member.

REASONS BEHIND TAKING INSURANCE

RESPONSE NO. OF SHARE (%)

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RESPONDENTS

Tax saving 80 50%

Saving / Investment 80 50.%

Family protection 100 100%

Tax saving, 80Saving/Investm

ent, 80

Family

protection, 100

0

20

40

60

80

100

120

Tax saving Saving/Investment Family protection

[Fig 8]

INTERPRETATION

80% of the Respondents opted for Insurance for tax saving benefits and

saving/investment both.

But all of them, i.e. 100% of the respondents have opted for insurance for

their family protection.


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SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0.0%

Total 100 100%

Satisfied

60%

Not satisfied

40%

Not responded

0%[Fig 9]

INTERPRETATION

60% of the respondents are more or less satisfied with their existing policy.

40% of the respondents are not satisfied with their existing policy.

In this case all of those who have taken a policy have responded.

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SATISFACTION OF +VE RESPONDENTS WITH RESPECT TO

SERVICE AGENT

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

Satisfied

45%Not satisfied

55%

Not Responded

0%

[Fig 10]

INTERPRETATION

45% of the respondents are satisfied with their existing service agent.

55% of the respondents are not satisfied with their existing insurance agent.

All of those who have taken a policy have responded.

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NUMBER OF RESPONDENTS PAYING TAX

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Paying tax 100 100%

Not paying tax 0 0%

Total 100 100%

0

20

40

60

80

100

120

Paying tax Not paying tax

[Fig 11]

INTERPRETATION

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

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RESPONDENTS PERCEPTION ABOUT BEST FORM OF

INVESTMENT FOR SECURING THEIR FUTURE

NO. OF

RESPONDENTS

SHARE (%)

Fixed Assets 75 33%

Bank deposits 11 5%

Jewellery 25 11%

Securities i.e. bonds, MFs 40. 17%

Shares 10 4%

Insurance 70 30%

Fixed Assets, 75

Bank deposits,

11

Jewellery, 25

Bonds/Mutual

Funds, 40

Shares, 10

Insurance, 70

0

10

20

30

40

50

60

70

80

Fixed Assets Bank deposits Jewellery Bonds/Mutual

Funds

Shares Insurance

[Fig 12]

INTERPRETATION

75% of the respondents are with the view that Fixed Assets is the best form

of investment for securing their future.

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70% of the respondents are with the perception that Insurance is the best

form of investment for securing their future, which is 2nd highest and this

shows that insurance is an important key for securing your future.


PEOPLES PERCEPTION ON APPROPRIATE AGE FOR BUYING

INSURANCE

RESPONSE NO. OF RESPONDENTS SHARE (%)

After 25 years 29 29%

After 35 years 10 10%

After 45 years 0 0%

Anytime 61 61%

After 25 years

29%

After 35 years

10%After 45 years

0%

Anytime

61%

[Fig 13]

INTERPRETATION

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

after the age of 25 years.

10% of the respondents are with the view that insurance should be buyed

after the age of 35 years.

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Whereas, 61% 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

limitations. It can be purchased any time according to the need.

PEOPLES OPINION ABOUT INDIAN INSURANCE COMPANIES

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Rigid plans 67 67%

Non user friendly 29 29%

Unsatisfactory services 26 26%

Non Aggressive 35 35%Satisfactory 24 24%

Good 10 10%

Very good 0 0%

0

10

20

30

40

50

60

70

80

[Fig 14]

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INTERPRETATION

67% of the respondents have the opinion that Indian Insurance Companies

have Rigid plans.

29.5% feel that Indian Insurance companies are Non-user friendly.

26.5% feel that services of Indian Insurance companies are Unsatisfactory.

35.75% of the respondents are with the view that Indian Insurance

companies are Non-aggressive.

24% of the respondents feel that products and services of Indian Insurance

companies is Satisfactory.

Whereas only 10.25% feel that it is Good enough.

And according to the data, no single person has felt that it is very good.


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WHAT PEOPLE LOOK FOR IN AN INSURANCE COMPANY

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

A trusted name 82 82%

Friendly service &

responsiveness

71 71%

Good plans 81 81%

Accessibility 49 49%

0

20

40

60

80

100

A trusted Name Friendly service &

responsiveness

Good plans Accessibility

[Fig 15]

INTERPRETATION

82% customers look for a Trusted name in a company for insurance.

81.5% customers look for a good plan in a company for insurance.

Friendly service & responsiveness and Accessibility are also important

factors looked by customers in a company.


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PEOPLE INTERESTED IN GOING FOR INSURANCE IF A

SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER

SERVICE & PRODUCTS

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Yes 43 43%

No 44 44%

Uncertain 13 13%

Total 100 100%

YES

43%

NO

44%

Uncertain

13%[Fig 16]

INTERPRETATION

The interested customers i.e. 43% are ready to go for insurance even away

from a city if services and products are worthwhile, which again is a good

prospect (potential) for Max New york Life Insurance to take them on their

favor.

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PEOPLE PLANNING FOR NEW INVESTMENTS

RESPONSE NO. OF RESPONDENTS SHARE (%)

Planning 87 87%

Not planning 13 13%

Total 100 100%

Planning

87%

Not

Planning

13%

[Fig 17]

INTERPRETATION

Only 13% of the customers contacted are not planning for new investments

presently.

Whereas, 87% of the customers are still planning for new investments this

can be a great potential for Max New York Life Insurance to take them on

their favor.

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FINDINGS &

RECOMMENDATIONS


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SWOT ANALYSIS

STRENGTH :

Multi-channel distribution and one of the largest

distribution networks in India.

Implementing Six-Sigma process.

Customer centric products and services.

Superior investment and risk management framework.

40 Lakhs policies sold within 7 years.

Company has maximum number of MDRT as well as good

number ofHNI advisors.

Training process of the company is very strong.

Different plan for different peoples.

According to the change in surrounding environment like changes in

customer requirement.

WEAKNESS:

COMPANY does not penetrate on the rural market at a time.

There is no plan for the low income group.

Fees for the advisor is high than the other company.

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OPPORTUNITY:

Insurance market is very big, where company can expand its

horizon in insurance industry .

Though good investment and insurance it is easy to top Indiancustomers.

The huge insurance market (77%) i s lef t so company has

opportunity to expand our products.

To associate with the more number of HNI.

THREATS:

OLD HABITS DIE HARD: Its still difficult task to win the

confidence of public towards private company.

The company is facing major threats from LIC -which is an

only government company.

Plans for all income groups is not available which can create

adverse effect later on the market share of the company.

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FINDINGS & RECOMMENDATIONS

1. As the people think that insurance is a tool to protect their family & a taxsaving device. They are aware of the fact & realizing its, importance. There is a

large potential for insurance in India.

2. The entrance of private players will increase the competition and it would be

a tough task to secure a good position in market.

3. 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 thereby forming a long and trusted relationship.

4. 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.

5. As 43% of the customers are even ready to go for insurance if a service

provider away from their city is providing it. But inturn they should provide

good products and services. The company should try to convince these

customers and get them in its favor.

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GROWTH POTENTIAL

At present life insurance penetration in India is quite low 3% of

GDP.

PHASE OF TRANSITION

Life Insurance industry is under the phase of infancy after 50 years

of monopoly.

Competition from within and other sectors of financial market.

Needs environmental support till it reaches a comfort zone.

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CONCLUSION

Our exhaustive research in the field of Life Insurance threw up some interesting

trends which can be seen in the above analysis. A general impression that we

gathered during Data collection was the immense awareness and knowledge

among people about various companies and their insurance products. People

are beginning to look beyond LIC for their insurance needs and are willing to

trust private players with their hard earned money.

People in general have been impressed by the marketing and advertising

campaigns of insurance companies. A high penetration of print, radio and

Television Ad campaigns over the years is beginning to have its impact now.

Another heartening trend was in terms of people viewing insurance as a tax

saving and investment instrument as much as a protective one. A very high

number of respondents have opted for insurance for such purposes and it showshow insurance companies have been successful to attract public money in

recent times.

The general satisfaction levels among public with regards to policy and agents

still requires improvement. But therein lies the opportunity for a relative player

like Max New York Life. LIC has never been known for prompt service or

customer oriented methods and Max New York Life can build on these factors.

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REFERENCES

WEBSITES REFERRED

www.maxnewyorklife.com

www.irdaindia.org

www.thehindubusinessline.com

www.lifeinsurance.com

Kothari, C.R. RESEARCH METHODOLOGY

Bhattacharya, Deepak RESEARCH METHODOLOGY.

AVAILABLE COMPANY BROUCHERS.

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http://www.maxnewyorklife.com/http://www.thehindubusinessline.com/http://www.maxnewyorklife.com/http://www.thehindubusinessline.com/


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ANNEXURE


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QUESTIONNAIRE

NAME:_________________________

ADDRESS:______________________

______________________________OCCUPATION:___________________

1. ARE YOU EMPLOYED?

YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH COS INSURANCE POLICY YOU PREFER THE MOST?

(RANKTHEM)

a) LIC b) ICICI PRUDENTIAL

c) SBI LIFE INSURANCE d) ING VYSYA LIFE

e) MAX NEW YORK LIFE INSURANCE f) TATA AIG LIFE

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g) ANY OTHER ________( Specify)

5. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN?

(RANK THEM)

a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS

c) FUTURE INVESTMENT d) ANY OTHER _________(Specify)

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

(RANK THEM)

a) LOW PREMIUM b) LARGER RISK COVERAGE

c) MONEY BACK GUARNTEE d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS f) ANY OTHER _________ (Specify)

7. WHATS YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

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8. AREYOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL b) NOT SATISFIED

c) NOT RESPONDING

9. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL b) NOT SATISFIED

c) NOT RESPONDING

10. DO YOU PAY TAXES?

YES NO

11. WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM)

a) FIXED ASSETS b) BANK DEPOSITS

c) JEWELLERY d) SECURITIES, i.e. Bonds, MFs

e) SHARES f) INSURANCE

12.. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS b) SECURITY

c) TAX BENIFITS

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13.WHATS THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs b) AFTER 35 Yrs

c) AFTER 45 Yrs d) ANYTIME

14.HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES d) NON-AGGRESSIVE

e) SATISFACTORY f) GOOD

g) VERY GOOD

15.WHATWOULD YOU LOOK FOR IN AN INSURANCE COs?

(RANK THEM)

a) A TRUSTED NAME

b) FRIENDLY SERVICE & RESPONSIVENESS

c) GOOD PLANS

d) ACCESSIBILITY

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16.WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER

AWAY FROM THE CITY OFFERS BETTER SERVICE &

PRODUCTS?

a) YES b) NO c) UNCERTAIN

17.ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING

project yash

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