a project report on joint venture

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Max New York Life Insurance Company Ltd”. is a joint

venture between New York Life

1

INTRODUCTION

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This project report has been completed in the interest of Max New YorkLife Insurance Company Ltd. (Faridabad Branch). This project reportconcerns with the study of selection and recruitment map for Agent and

“Max New York Life Insurance Company Ltd”. is a joint venture betweenNew York Life, a Fortune 100 company and Max India Limited, one ofIndia's leading multi-business corporations.

“Max India limited” is a multi-business corporate, driven by the spirit of

Enterprise, focused on Knowledge, People and Service orientedbusinesses of Healthcare and Life Insurance.Founded in 1985, Max India Limited is a Public Limited company listed in

the NSE and BSE of India with over 37,000 shareholders.

“New York Life Insurance” is one of the largest providers of life

insurance coverage in America. It has been ranked at Fortune 68, in the2005 Fortune 500 listing of companies.

A Fortune 100 company founded in 1845 is the largest mutual lifeinsurance company in the United States and one of the largest lifeinsurers in the world. Headquarters located in New York City. New York

Life is a family of companies offering life insurance, annuities andlong-term care insurance.

The project’s main objective is to make a close observation on theselection and recruitment process of agent and advisors and conducting a

survey to find the individuals who would like to make a career in MaxNew York Life as an Agent and Advisor.

This project also highlights the scope, limitations and recommendationsof the study.

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And this entire project provided me an opportunity to know the corporateworld and of course the job opportunities available in the life insurancesector.

BRIEF PROFILE OF THE INSURANCE INDUSTRY

Insurance is essentially a social device to reduce or eliminate risk of lossto life and property. The risks which can be insured against include death,fire, the perils of sea, accidents and burglary. Any risk contingent upon

these may be insured against at a premium commensurate with the riskinvolved. The insurance business is divided into life insurance andnon-life (general) insurance, which includes fire, marine, social, and

various other forms of insurance. The life insurance industry across theworld has evolved over many decades; it is based on the principle of

insurance being a collective bearing of risk, which offers individuals anopportunity to protect themselves.

“A large number of people form an association that shares the risks facedby individuals.”

INSURANCE INDUSTRY

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INSURANCE REGULATORY & DEVELOPMENTAUTHORITY (IRDA)

Insurance Regulatory and Development Authority (IRDA) was constitutedin 1999 by an Act of Parliament to protect the interests of thepolicyholders and to regulate, promote and ensure orderly growth of the

insurance industry. IRDA consists of a ten member team that comprises aChairman, five whole-time members and four part-time members.

IRDA allows registration of new players in the insurance field. It also hasthe authority to renew, modify, withdraw, suspend or cancel such

registration. IRDA ensures protection of the interests of the policy holdersin matters concerning assigning of policy, nomination by policy holders,insurable interest, settlement of insurance claim, surrender value of

policy and other terms and conditions of contracts of insurance. It

LIFE INSURANCE NON-LIFE (general)INSURANCE

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specifies requisite qualifications, code of conduct and practical trainingfor intermediary or insurance intermediaries and agents.

After creation of IRDA, insurance sector has seen tremendous growth.Before IRDA came into force there were only a few players in theinsurance field, namely, Life Insurance Corporation of India (LIC) and

General Insurance Corporation of India (GIC). Since then 23 new playershave entered the insurance sector.

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COMPETITIVE STRUCTURE OF LIFE INSURANCE

IN INDIAN SCENARIO

The competitive market of Life insurance in Indian scenario is very big. Atpresent there are as many as fourteen major players in the Indian market.India’s leading life insurance companies with a clear focus on providing

best in class life insurance solution to our customers are:

Aviva Life Insurance India

Bajaj Allianz

Birla Sun Life Insurance

HDFC Standard Life

ICICI Prudential

ING Vysya Life Insurance

Kotak Mahindra Old Mutual

LIC

METLife India Insurance

Reliance Life Insurance

SBI Life Insurance

Shriram Life Insurance

Max New York Life.

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MAX NEW YORK LIFEINSURANCE COMPANY LTD.

A JOINT VENTURE BETWEEN

NEW YORK LIFE

AND

MAX INDIA LIMITED

VISION STATEMENT OF MNYL

“Helping bring millions of wishes come to life in our journey to becomethe most admired life insurance company in India”

MISSION STATEMENT OF MNYL

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Become one of the top quality 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

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 ofIndia'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 hasdeveloped a strong corporate governance model based on the core valuesof excellence, honesty, knowledge, caring, integrity and teamwork. The

strategy is to establish itself as a trusted life insurance specialist througha quality approach to business.

Max New York Life is the first life insurance company in India to beawarded the IS0 9001:2000 certification.

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Max New York Life was among the top 25 companies to work with inIndia, according to 2003 Business World magazine, "Great Workplaces InIndia", 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 everyyear in 22 countries.Max New York Life was among top five most respected private life

insurance companies in India according to a 2004 Business World survey.Max New York Life has truly built an enviable sales force. With 362 agents

becoming members of the MDRT in 2006, Max New York Life has movedup in the Top 50 MDRT global list.Max New York Life offers a range of flexible products. It now has 26 life

insurance products and 8 riders that can be customized to over 400combinations enabling customers to choose the policy that best fits theirneed.

MNYL

MAX INDIALIMITED

NEW YORK LIFE

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MAX INDIA LIMITED

“Max India limited is a multi-business corporate, driven by the spirit ofEnterprise, focused on Knowledge, People and Service orientedbusinesses of Healthcare and Life Insurance.”Founded in 1985, Max India Limited is a Public Limited company listed inthe NSE and BSE of India with over 37,000 shareholders.

Today, Max India Limited is a multi-business corporate, driven by thespirit of

Enterprise, focused on Knowledge, People and Service orientedbusinesses 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 Speciality

Products)

Healthcare Staffing (Max Health Staff)

Prominent shareholders are Mr Analjit Singh and a leading private equityfirm, Warburg Pincus which accounts for 28.7% of the total shareholding.

The balance shareholding is held by the public and Institutional Investors.

Board of Directors- Max India Limited

Dr Bhai Mohan Singh Lifetime Chairman Emeritus, Max India

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Mr Analjit Singh Chairman, Max India

Dr S S Baijal Former Chairman, ICI Ltd.

Mr N C Singhal Former Vice Chairman & MD, SCICI

Mr N Rangachary Former Chairman, IRDA

Mr Nitin Sibal Vice President, Warburg Pincus India Pvt. Ltd.

Mr Piyush Mankad Former Secy., Ministry of Finance, Govt. of India

Mr Ashwani Windlass Former Managing Director, Hutchison Max TelecomLtd.

Mr Bharat Sahgal Managing Director, Warburg Pincus India Pvt. Ltd.

Mr B Anantharaman Jt. Managing Director, Max India

NEW YORK LIFE INSURANCE

New York Life Insurance is one of the largest providers of life insurance

coverage in America. It has been ranked at Fortune 68, in the 2005Fortune 500 listing of companies.A Fortune 100 company founded in 1845, is the largest mutual life

insurance company in the United States and one of the largest life

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insurers in the world. Headquartered in New York City, New York Life’sfamily of companies offer life insurance, annuities and long-term careinsurance.

New York Life Investment Management LLC provides institutional assetmanagement and retirement plan services. Other New York Lifeaffiliates 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 withcompassion, consideration and respect.

New York Life is one of the largest and strongest life insurancecompanies in the world with more than USD$215 billion assets undermanagement 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'sgood quality investment portfolio, ample liquidity, and soundcapitalization, as well as the good growth potential of its international

business.”“As a leader in the insurance industry, New York Life continues to bringto its operations new management concepts, advanced technologies, newdistribution and training systems and innovative insurance products.”

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GLOBAL AND ECONOMIC OUTLOOK OF MNYL

Max New York Life Insurance Company Ltd. is a joint venture betweenNew York Life, a Fortune 100 company and Max India Limited, one ofIndia's leading multi-business corporations. The company has positioned

itself on the quality platform. In line with its vision to be the mostadmired 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 toestablish 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 hasadopted prudent financial practices to ensure safety of policyholder's

funds. The Company's paid up capital is Rs. 657 crore, which is morethan the norm laid down by IRDA.

Max New York Life is the first life insurance company in India to beawarded 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 InIndia", Max New York Life was ranked at the 20th position. This survey isthe local version of the "Great Places To Work" survey carried out every

year in 22 countries.MNYL is among the top five most respected private life insurance

companies in India according to a 2004 Business World survey.MNYL has truly built an enviable sales force. With 201 agents becomingmembers of the MDRT in 2005, Max New York Life has moved up in the

Top 50 MDRT global list.“Indian Insurance market is expected to be around $25 billion by 2010.Expected CAGR of over 20% p.a.”

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Largely untapped market: about 0.6% of the global market for 17% of theworld’s population.Strong economic growth with increase in affluence and rising risk

awareness leading to rapid growth in the Insurance sector.The life insurance sector has grown by 35 per cent in terms of newbusiness premium last fiscal.

The new premium pie has grown to Rs 35,898 crore, from Rs 26,602crore in the previous year.

Max New York Life Insurance Co Ltd (MNYL) proposes to increase its paidup capital from the existing Rs 250 crore to Rs 300 crore in view of the

growing business volumes.LIC's market share has been further reduced to 71.4 per cent from 78.1per cent. Among the private player.

Bajaj Allianz Life grew by 216 per cent and clocked in new businesspremium of Rs 2,715.6 crore. The company cornered a market share of

7.56 per cent.ICICI Prudential on the other hand garnered premium of Rs 2,637 croreand holds a market share of 7.35 per cent.

Total estimated investment opportunity of $4-5 billion.

OBJECTIVES OF THE COMPANY

To provide better services to the MNYL customers by knowingtheir needs

Become one of the top quartile life insurance companies in India

Be a national player

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Be the brand of first choice

Be the employer of choice

Become principal of choice for agents

To increase the service network

To spread knowledge of life insurance among people and telling

them the importance of life insurance

Providing investment opportunities to public, and

To increasing the holding in the Indian market

ORGANIZATIONAL HIERARCHY

The organizational hierarchy of MNYL is as similar as most of the othercorporate groups.

The Top Management is headed by

Analjit SinghChairman,Max India Limited

Gary R. BennettManaging Director and Chief Executive Officer,Max New York Life Insurance Company Ltd.

Anuroop 'Tony' SinghVice Chairman,Max New York Life Insurance Company Ltd.

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Joseph GilmourPresident and Chief Executive Officer,New York Life International.

The middle management comprises of

Regional manager

Managing partner

Partner

Associate partner

Sales manager/ Assistant sales manager, and at last

Agent & advisors.

CHAIRMAN

MANAGINGDIRECTOR

CHIEF EXECUTIVEOFFICER

REGIONALMANAGER

MANAGINGPARTNER

PARTNER

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Figure 1

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ORGANIZATION STRUCTURE

The organization structure of MNYL comprises of the following major

departments.

Figure 2

Human Resource Sales

Finance & Accounts dmmOperations

sUnder writers Acturian dept.

MedicalFinancial

Training dept. Product management

Organizationalstructure

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BRANCHES OF MNYL

REGISTERED OFFICE

Max New York Life Insurance Company Limited,Max House, 3rd Floor, 1 Dr. Jha Marg, Okhla,New Delhi - 110020Tel: (011) 6933610

HOME OFFICE

Max New York Life Insurance Company Limited,11th Floor, DLF Square Building,Jacaranda Marg, Phase II,Gurgaon - 122002Tel: (0124) 2561717

BRANCH OFFICES:

AHEMDABAD CHANDIGARH MOGA MUMBAI

AGRA CHENNAI LUDHIYANA NASIK

AMRITSAR COCHIN KOTTYAM NOIDA

BANGLORE COIMBATORE KOLLAM PATIALA

BHATINDA DEHRADUN KOLKATA PUNE

BHOPAL DELHI KANNUR SANGRUR

BHUWANESHWAR FARIDABAD HYDERABAD SURAT

CALICUT GOA GURGOAN TRICHUR

TRIVENDRUM VIJAYWARA VISHAKHAPATTNAM AURANGABAD

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UDAYPUR VADODRA AJMER KOTA

MILLION DOLLAR ROUND TABLE

A world wide organization of the top producers of the lifeinsurance sales.

74 participating nations and territories

New York Life is the no.1 in the MDRT membership 50 years in arow

MNYL leads the MDRT among Indian private insurers

MNYL is in Top 100 MDRT global lists-(ranked 49th).

“362 MNYL Agent Advisors have qualified for the 2006 MDRT.”

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THE RESEARCH PROCESS

Figure 3

DEFINING THE RESEARCHOBJECTIVE

DEVELOPING THE RESEARCH PLAN

COLLECTING INFORMATION

ANALYZING THE INFORMATION

INTERPRETING THE FINAL RESULTS

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RESEARCH METHODOLOGY

“Research methodology is a way to systematically solve the research

problem.”In it we study the various steps that are generally adopted by a researcher

in studying his research problem along with the logic behind them.

DEVELOPING THE RESEARCHPLAN

The second stage is the most important stage because in this stage wehave to make an efficient plan for collecting the information about the

project report.The research plan includes

Data sources

Research approaches, and

Research instrument.

Data sources:

There are two ways of collecting data for the research,

Primary data, and

Secondary data.

To conduct a research, the researcher has to gather primary datasecondary data.

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In this project report the research is based on both i.e., primary as well assecondary data.And for collecting the primary data the following persons are contacted

Collegiate (through questionnaire method)

Business men (through questionnaire method)

Service people (through questionnaire method) etc…

The secondary data has been collected from

Internet

Catalogs and

Booklets etc…

Research approaches:

This project report is based on the observational and descriptive research.

Observational research is that research in which, the research is

done by researcher through observing the situations related to the

research project and interpreting them. Where as in descriptive

research the research based on the secondary data or past findings

conducts the research by describing conditions or circumstances.

Research design:

“A research design is the arrangement of condition for collection

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

the research purpose with economy in procedure”.

Types of research design:

Descriptive research

Analytical research

Fundamental research

Exploratory research

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Conceptual researchIn this project largely the secondary data has been used for drawing theinferences and primary data is also collected through survey limited tothe Faridabad only.

Research instrument:

The instrument which is used for the survey is the questionnaire method.

Questionnaire method:

A questionnaire consists of set of questions presented to different people,

due to its flexibility the questioner is the most common instrument usedfor collecting the primary data.This questionnaire consists of eight questions related to persons

Personal detailsOccupationQualification

And certain questions related to his view about joining MNYL as an agentand advisors.

SIZE OF THE REPRESENTATIVE SAMPLE

The sample size is limited to the Faridabad city only.The sample size which is of 100 people comprises following respondent...

Students (collegiate)

Business men

Service people

Retired persons etc…

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REVIEW OF LITERATURE

Once the objective of the study is formulated the researcher shouldundertake extensive literature survey connected with the objective of thestudy. For this purpose the researcher should look into the already

available information about the concerned topic, and then he should referit and see it, if it is useful for him or not. This information he could

gather from the following sources

Public library

Academic journals

Conference proceedings

Government reports

Books

Earlier reports and from other organizations.

RECRUITMENT:

It is understood as a process of searching for and obtaining applicantsfor jobs, from among whom the right people can be selected.

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PURPOSE AND IMPORTANCE

Determining the present and future requirements of an

organization.

Identifying and preparing potential job applicants.

Increasing organizational and individual effectiveness.

Increasing the pool of job candidates at minimum costs.

FACTORS GOVERNING RECRUITMENT:

External

Internal

External factors are those factors which the organization adopts through

Print media

Advertisements

Seminars

Campus recruitment

Employment exchanges etc…

Internal factors are those factors which the organization uses from itsown employees. It includes

Present employees

Employee referral

Former employees and former applicants etc…

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RECRUITMENT PROCEDURE MAP

Figure 4

Name gathering(internal)

Screeninginterview

Selectioninterview

Career seminar/ administerP200

Evaluate P200 &survey

Careerinterview

AdditionalInterview

This process starts from day-1 and goes up today 12

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Name gathering

In this the prospective agent is asked to gather as many names as

possible from internal sources.

The purpose is to build steady pipeline of contacts.

It should also follow the “rule of 31”

Rule of 31

Gather 3 new names of prospective agents’ everyday.

Arrange 1 screening interview appointment everyday.

Initial screening interview

It is done if the person fits to the “initial 5.”

Purposes- does he meet the initial 5

Is he worth taking through our tests outcome?

Selection interview

It comes after initial screening. It is done to test the conviction and

sustainability of a career.

Tests

In this a test is conducted by the recruiter.

The test comprises numerical ability test and reference checks.

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Career seminar

A seminar is organized by the recruiter for the persons recruited as agent

and advisors.

P-200

It provides an idea to the agent about his initial market from where theagent can get a list of probable buyers.

Evaluate P-200/ Market survey

In this the agent evaluates its initial market and get referred leads and atthis point he is ready to accept this opportunity as a career.

Career interview

In this the agent is reviewed for its past performance.And the recruiter checks the agent’s motivation, dreams andlongevity.Now the candidate is ready to join it as a career.

Application forms

In this the application form is given to the agent and he is asked tocontact the person who wants to be insured or ready to invest according

to his needs.

ROLE OF AN AGENT ADVISOR

Identify future customers

Make appointments

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Conduct meetings and review their financial situations

Provide customized solutions

Close sales

Get references

Provide the deliverables coupled with excellent services.

TRAITS OF AN AGENT & ADVISOR

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Figure 5

RECRUITMENT PYRAMID OF MNYL

TO BECOMEFINANCIALLYINDEPENDENT

RELATION-SHIPSKILS

SELFMOTIVATION

CONFIDENCE

TRAITS OFAN AGENT

&ADVISOR

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Figure 6

2

4

6

8

16NAT/ ARIF

20SCREENINGS

60QUALIFIED NAMES

CONTRACTED

CAREER INTERVIEW

P-200

CAREER SEMINAR

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RECRUITMENT PROCESS

NAMEGATHERING

INITIALSCREENINGINTERVIEW

SELECTIONINTERVIEW

TEST

CAREERSEMINAR

P-200

MARKETSURVEY

CAREER INTERVIEW

APPLICATIONFORM

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Figure 7

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OBJECTIVE OF THE STUDY

MAIN OBJECTIVE:

The main objective is to make a close observation on the selection andrecruitment process of the agents and advisors to Max New York Life.In order to meet the main objective I did a survey to find out the

interested persons who wants to be a part of MNYL.After the survey was conducted the collected data was tabulated andanalyzed to interpret the final results.

And necessary recommendations have been made.

SCOPE OF THE STUDY

This is an important project for the Max New York Life Faridabad (branch).As the company is concerned about its recruitment procedure adoptedfor selecting efficient persons as agents and advisors. Considering this

fact, I made a survey in the market concerning about the individuals whowould be interested in becoming Max New York Life agent and advisors

and further seeing it as a career opportunity.This project will help the organization to know its potential market i.e.,agents.

It also helps organization to find new and interesting ways to attract asmany persons as possible by presenting it as a career option. And also to

make a close observation on the selection and recruitment process ofMNYL in the Faridabad city.

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DATA COLLECTION:

Data collection is the process of collecting information related to theproject report. My It could be from any possible source available to the

researcher.To conduct a research, the researcher has to gather primary data,secondary data.

Primary data:

“Primary data are those which are collected afresh and for the first time,

and thus happen to be original in character.”The researcher first looks for the secondary data to see whether theproblem can be solved without collecting the primary data.

Secondary data:

“Secondary data are those which have already been collected bysomeone else and which have already been passed through the statistical

process.”

Secondary data provides a starting point for the research and offer the

advantage of low cost and readily availability.Where as the primary data is freshly collected by the researcher and isanalyzed properly so that it can be interpreted properly and provides

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good results.In this project report the research is based on both the data.

For collecting the primary data the following persons are contacted

Collegiate (through questionnaire method)

Business men (through questionnaire method)

Service people (through questionnaire method) etc…

The secondary data has been collected from

Internet

Business magazines

Catalogs

Booklets

Pamphlets etc…

After data has been collected by the researcher, the next step is toanalyze it.

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Data analysis is done through tabulation and graphs.It is important so as to draw the conclusion about the project.

DATA ANALYSIS:

After data has been collected by the researcher, the next step is to

analyzing it. Data analysis is done through the help of tabulation andgraphs. It is important so as to draw the conclusion about the project.

FLOW CHART OF DATA ANALYSIS PROCESS

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Figure 8

THIS DIAGRAM SHOWS THE PERSONS WHO COULD

BECOME THE AGENTS:

PREPARING THE RAW DATA

TABULATING THE DATA

PREPARING CHARTS AND GRAPHS

INTERPRETING THE DATA

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Figure 9

HouseWives

RetiredPersons

Business

Women

BusinessMen

Servicemen

Students

AGENTS

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THIS TABLE EXPLAINS ABOUT THE PERSONS

CONTACTED FOR BECOMING AGENT ADVISOR WITH

DIFFERENT OCCUPATIONS.

Occupation Respondents

Collegiate 27

Business men 23

Service men 15

Business women 7

House wife’s 5

Retired persons 23

Table 2

This table shows that the persons who are more interested in becomingthe agent advisors are businessman, collegiate, and retired persons but

service people and working women are not that much interested.

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DATA ON THE PERSONS CONTACTED, WHO ARE

RESIDENTS OF FARIDABAD CITY

PERSONSCONTACTED

OUTOF

RESIDENTS NON-RESIDENTS

Collegiate 27 23 4

Business men 23 20 3

Service men 15 15 0

Businesswomen

7 6 1

House wife’s 5 5

Retired persons 23 23 0

Table 3

It shows that the people who are interested in becoming the agentadvisors are largely the resident of Faridabad only.

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DATA REPRESENTING THE VIEW OF THE PROSPECTIVE

AGENTS

PERSONSCONTACTED

OUTOF

POSITIVE NEGATIVE NEUTRAL

Collegiate 27 7 15 5

Business men 23 5 12 6

Service men 15 2 10 3

Businesswomen

7 0 6 1

House wife’s 5 1 4 0

Retiredpersons

23 4 11 8

Table 4(NOTE): This data is based on the basis of questionnaire

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This table shows the attitude of the contacted persons for becoming theagent advisor of MNYL, and from it I come to know that many of them arewith negative attitude some of them are neutral and very less are of

positive attitude.

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THE DATA SHOWS THE MDRT QUALIFIED AGENTS

FROM 2001 TO 2006 FOR MAX NEW YORK LIFE.

This chart shows the number of MNYL agents who have qualified for theMDRT and it shows that the qualifiers are increasing every year.Chart 1From Max New York Life’s (manual)

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Earnings, if business grows by just 10% P.A.

THIS TABLE SHOWS THE GROWTH IN INCOME OF

AGENTS ON THE BASIS OF THEIR COMMISSION

PERCENTAGES.

Year-1 Year-2 Year-3 Year-4onwards

Avg.premium(Rs)

12000

No. of casesper year

120

commission 35% 7.5% 7.5% 5%

From Max New York Life’s(manual)Table 5

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THIS GRAPH SHOWS THE INCREASE IN THE INCOME

OF THE AGENTS

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This graph shows the earning pattern of the agents, from it we come to

know that there are lots of opportunities available to earn good amountof money, in a long term period he can earn a good amount.Chart 2From Max New York Life’s (manual)

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THIS TABLE SHOWS THE INCREASE IN THE INCOME OF

THE AGENTS

This table shows the earning pattern of the agents, from it we come toknow that there are lots of opportunities available to earn good amount

of money, in a long term period he can earn a good amount.

Table 6

1st yearcommission

RenewalCommission

AdditionalBusinesssupport

AgentReferralfee

total

Yer-1

504000 90000 3000 597000

Yer-5

737906 354811 127200 12000 1231917

Yer-10

1188406 879586 127200 12000 2207192

Yer-20

3032418 2834631 127200 12000 6056249

Yer-30

7994999 8020190 127200 12000 16154389

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DATA INTERPRETATION

The data interpretation involves the representation of the data collected

and analyzed. And from this, it is revealed that there are manyopportunities for becoming an Agent advisor.

Ten reasons why you should become an AgentAdvisor with Max New York Life

Rewarding Career

As a Max New York Life Agent Advisor, you will help people realize theirdreams by fulfilling their financial goals. The difference you make to their

lives is more rewarding and satisfying than you could ever imagine.2 ASuccessful Team By joining us, you will be a part of the country's finestteam of life insurance Agent Advisors. We had 201 MDRT members in the

year 2005. The Million Dollar Round Table is a global forum that salutesthe world's most successful Insurance Agents

Attractive Remuneration

We offer one of the best remuneration systems in the industry that not

only provides income for today, but also earnings for the future. What'smore, you can set your own income targets with a potential to earn asmuch as you want for the rest of your life.

Independence

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As an Agent Advisor, you will be a true entrepreneur. You have thefreedom to be your own boss, work for yourself, choose your own clientsand make your own money. All of this, without your having to make any

initial capital investment except for your time.

World-Class Training

We provide you with the best-in-class training systems, since that is whatdifferentiates Max New York Life Agent Advisors from the rest. Even if

you don't have previous experience in selling, our multi-dimensionaltraining programme conducted by our qualified in-house training

personnel, will make you a specialist in life insurance sales. Our trainingprogramme is backed by New York Life Insurance University.

Commitment to Career Agency System

Our commitment to the Career Agency System means that, we support

you and your efforts not just today, but at every stage of your business.We believe in encouraging our Agent Advisors to strive towards thehighest levels of success, throughout their careers. In fact, depending on

your performance, we also offer a management career option with thecompany.

Infrastructure Support

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We have invested in creating a state-of-the-art infrastructure at each ofour offices. You will have access to the necessary tools, technology andpeople support that will enable you to build a profitable long-term

business

Full Range of Products and Services

You can offer your customers over 400 product combinations of ourunique Products and Riders, to help them meet all their financial goals. In

order to give you a greater competitive edge, we are also continuouslyworking on newer and more innovative products.

Sales and Marketing Support

We support our Agent Advisors with innovative sales and marketing tools.The Sales, Promotions and Marketing collaterals that we provide will helpyou take your business to new heights.

Financial Strength

Max New York Life offers you and your customer unmatched financialstrength and solidity. Our paid-up capital of Rs.587 cores is higher thanthe norms stipulated by the regulatory authority for insurance in India.

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FINDINGS OF THE STUDY

From this project report, it was revealed that there are many

opportunities available for the person who wants to be in the LifeInsurance business as an agent and advisors.A prospective agent could see a bright future in terms of earning money

as well as seeing it as a career option.But from the survey it was also brought into light that normally every

person is not willing to become an agent and advisor (what ever may thereason be) although there are lot of opportunities available, due to thisreason the job of the recruiter becomes little difficult because every he

has to find out the new ways to attract the people.This report also shows the attitude of the contacted persons forbecoming the agent advisor of MNYL, and these were there views…

Many of them are with negative attitude

Some of them are neutral and

Very less are of positive attitude.

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CONCLUSION

From this project report, it was revealed that there are many

opportunities available for the person who wants to be in the LifeInsurance business as an agent and advisors.

A prospective agent could see a bright future in terms of earning moneyas well as seeing it as a career option.But from the survey it was also brought into light that normally every

person is not willing to become an agent and advisor (what ever may thereason be) although there are lot of opportunities available, due to thisreason the job of the recruiter becomes little difficult because every he

has to find out the new ways to attract the people.

This report also shows the attitude of the contacted persons forbecoming the agent advisor of MNYL, and these were there views…

Many of them are with negative attitude

Some of them are neutral and

Very less are of positive attitude.

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SUGGESTIONS

The company should increase its operation area in different

places i.e., places where the people still don’t know aboutinsurance.

The company should recruit its responsible executives fromrural areas also.

The company should take steps to educate and inform the

people from rural areas about the Life Insurance and itsimportance also the company should conduct campaigningprograms in nearby rural areas i.e., in nearby villages.

The company should arrange frequent group seminars on career

building, which would highlight the importance of life insuranceto the general public.

The company should open its doors for all those persons who

would like to become the Agents.

The company should provide good and fair incentives andcommission to its agents.

Apart from all these the company should also introducepersonality development programs for its Agents and Advisors.

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LIMITATIONS OF THE STUDY

As per my convenience I have chosen the Faridabad city as my

research area, which limits its scope to other cities.

The sample size taken by me is limited to the 100 people only.

The time allotted to me for conducting research and for

completing the project report was limited, as the time frame wasof six weeks.

While conducting the research I come to know that People didnot take much interest in answering to me and it is hard to

convince them for it.

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BIBLIOGRAPHY

BOOKS:

Best, John W., and Kahn, James V., “Research In Education”, 5th Ed., NewDelhi: Prentice-Hall of India Pvt. Ltd., 1996.

Kothari C.R, “Quantitative Techniques”, New Delhi, Vikas PublishingHouse Pvt. Ltd., 2002.

Kotler Philip, “Marketing Management”, Singapore,

Pearson Education Pvt. Ltd., 2003.

WEBSITES:

www.maxnewyorklife.comwww.sbilife.comwww.irda.comwww.iciciprudential.com

OTHER SOURCES:

(From organization)

http://www.maxnewyorklife.com/

http://www.sbilife.com/

http://www.irda.com/

http://www.iciciprudential.com/

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Agent’s manual

Sales manager’s manual

Brochures

Pamphlets etc…

ANNEXURE

Questionnaire for recruiting Agent and Advisors

Q.1 Personal details of the individual :

Name -----------------------------------------

Address -----------------------------------------

Contact No. -----------------------------------------

Age ----------------------------------years

Occupation ----------------------------------------

Qualification ----------------------------------------

Q.2 what is your job profile?

Self employed ---------Service personal --------Student --------House wife --------Others… --------

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Q.3 Are you living in this city for last 5 years?

Yes---- No----

Q.4 Are you comfortable in doing side by side business which could earnyou well?

Yes---- No-----

Q.5 what do know about Max New York Life Insurance company?

Q.6 what is your view about joining MNYL as an Agent advisor?

Positive --------Negative --------Neutral --------

Q.7 would you like to attend our career seminar?

Yes----- No------

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Q.8 could you name 10 persons who you think could be interested inattending the career seminar?

Persons name Contact no.12345678910

Note: please fill up the entries carefully

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Table describing the figures, charts and tables.

Figure no. Description Page no.

Figure 1 Organizational hierarchy 18

Figure 2 Organization structure 19

Figure 3 The research process 23

Figure 4 Recruitment procedure map of MNYL 28

Figure 5 Tells about the traits of an agent & advisorrequired

32

Figure 6 Recruitment pyramid of MYNL 33

Figure 7 Recruitment process of the MNYL 34

Figure 8 Flow chart of data analysis process 39

Figure 9 It shows the persons who could become theagents

40

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Table andchart no.

Description Page no.

Table 1 Board of Directors of Max India Limited 12

Table 2 It explains about the persons contacted for

becoming agent advisor with different

occupations

41

Table 3 It shows the persons contacted, who areresidents of Faridabad city for becomingagents

42

Table 4 Data representing the view of the prospective

agents

43

Table 5 It tells about the growth in income of an agenton the basis of their commission percentages

45

Table 6 It shows the increase in the income of theagents who are with the MNYL

47

Chart 1 It shows the MDRT qualified agents from 2001to 2006 of Max New York Life

44

Chart 2 It shows the increase in the income of theagents who are with the MNYL

46

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a project report on joint venture

Economy & Finance

life insurance industry

insurance business

insurance sector

insurance intermediaries

insurance industryinsurance

forms of insurance

class life insurance

maxnew york life