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PROJECT REPORT

ON

STUDY OF PRODUCT BASKET AT MAX NEW YORK LIFE

INSURANCE

PROJECT REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT

THE AWARD FOR THE OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)

TO

GURU GOBIND SINGH INDRAPRASTHAUNIVERSITY

SUBMITTED BY

AMAN VOHRA

ENROLLMENT NO. 06590201710

UNDER THE SUPERVISION OF

MS.MANSI

SRI GURU TEG BAHADUR INSTITUTE OF MANAGEMENT

&

INFORMATION TECHNOLOGY

(AFFILIATED To GGSIP UNIVERSITY, DELHI)

(2012-2013)

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http://www.maxnewyorklife.com/Home.aspx


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DECLARATION

I AMAN VOHRA hereby declare that the project work entitled

STUDY OF PRODUCT BASKET AT MAX NEW YORK LIFE

INSURANCE submitted to Guru Gobind Singh Indraprastha

University is a record of original work done by me under the

guidance of MS. AMANPREET KAUR ,faculty member of Sri

Guru Tegh Bahadur Institute of Management and Information

Technology.

__________________

Place: Delhi Signature of Scholar

Date:- AMAN VOHRA

Enrollment No: -06590201710

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CERTIFICATE

This is to certify that AMAN VOHRA, Enrollment No.07090201710, BBA student of Sri Guru Teg Bahadur Institute of

Management and Information Technology has done Project Work

on STUDY OF PRODUCT BASKET AT MAX NEW YORK

LIFE INSURANCE under the guidance of MS. AMANPREET

KAUR

_________________________

Signature of Director

(Prof.)Dr. P. L. Sethi

__________________________

Signature of Teacher Incharge

Ms. InderpreetKaur

__________________________

Signature of Guide

MS.MANSI

__________________________

Signature of Scholar

Place: Delhi AMAN VOHRA

Date :- Enrollment No: 06590201710

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ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express my sincerethanks to my guide and mentor MS. MANSI, for her valuable

guidance and confidence she installed in me, that helped me in the

successful completion of this project report. Without her help, this

project would have been distant affair. Her thorough understanding of

subject and professional guidance is indeed of immense help to me. I

am also thankful to the faculty members of our institution who

cooperated with me and gave me their valuable time.

__________________

Place: Delhi Signature of Scholar

Date

:- AMAN VOHRA

Enrollment No: -06590201710

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EXECUTIVE SUMMARY

Executive summary

A well-developed and evolved insurance sector is needed for

economic development as it provides long term funds for

infrastructure development and the same time strengthen the risk

taking ability.

Life insurance is also now being regarded as a versatile financial

planning tool in India. India being a country having a huge population

of around one billion people with only 33.2% of the population in

India possessing life insurance. The country has a vast potential that

has been left untapped till now.

Therefore what this has led to is the flooding of the life insurance

market with a number of private players which in collaboration with

recognized foreign companies promises to deliver the best of services

at the lest price. All these companies are trying to grasp the maximum

of market share in life insurance sector. For that they are recruiting

world-class insurance advisors/agents who sell their product or

policies. Who are these advisors/agents? Who can becomeadvisors/agents? How channels are developed? How they are

recruited in MNYL? , How much they can earn as an insurance

advisors/agents, these are some questions we have tried to answer in

our project report.

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This report is trying to give detail about channel development i.e.

recruitment and selection process of the life insurance advisors. Thus

by going through the report one will get to know about life insurance

and channel development i.e. recruitment & selection process of life

insurance advisors/agents in Max New York Life Insurance company

ltd.

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TABLE OF CONTENT

S.NO. CHAPTERS PAGE NO.1 INDUSTRY PROFILE

2 2.1 COMPANY PROFILE

2.2 Vision, Mission & Values of MNYL

3 OBJECTIVE OF THE STUDY

4 4.1 CONCEPTUAL FRAMEWORK

4.2 HISTORY OF INSURANCE

4.3 TYPES OF INSURANCE POLICIES

5 5.1MNYL policies or products

5.2 About life insurance advisors

5.3 Channel development

6 RESEARCH METHODOLOGY

6.1 RESEARCH DESIGN

6.2 DATA COLLECTION METHOD

6.3 SAMPLE SIZE AND AREA

7 ANALYSIS & INTERPRETATION

8 ROLE & LEARNING AT MNYL

9 RECOMMENDATIONS

10 CONCLUSION

11 QUESTIONNAIRE

12 BIBLIOGRAPHY

CHAPTER -1

1.1 Industry Profile

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The Insurance landscape in India is undergoing major change. Closed

to foreign competition since nationalization in 1956, the life insurance

had been protected from competitive pressures. Now, with the re-

opening of the sector, several new players have entered the scene.

The game is old but rules are new and still developing. Ensconced in a

monopoly run from the nationalization days beginning in 1956, the

insurance industry has indeed awakened: to a deregulated

environment in which several private players have partnered with

multinational insurance giants.

There are lots of life insurance companies in the industry but only few

are getting good benefits and successfully trying to establish

themselves. Life insurance industry is an upcoming industry and

having a huge potential for making huge benefits. Some of the life

insurance companies are:

LIFE INSURANCE CORPORATION OF INDIA (LIC)

MAX NEW YORK LIFE INSURANCE

ICICI PRUDENTIAL LIFE INSURANCE

TATA AIG LIFE INSURANCE

BIRLA SUN LIFE INSURANCE

HDFC LIFE INSURANCE

AVIVA LIFE INSURANCE

KOTAK LIFE INSURANCE

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LIC is a government company so it is one of the biggest life insurance

company but if we look at the private players then MAX NEW YORK

LIFE IS No. 1 among all private life insurance companies. According

to GENERAL ACCEPTED ACOUNTING PRINCIPLE (GAAP)

Max New York Life is the only company, which is in the profit.

CHAPTER 2

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2.1 Companys Profile

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

between New York Life, a Fortune 100 company and Max IndiaLimited, one of India's leading multi-business corporations. The

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

vision to be the most admired life insurance company in India, it has

developed a strong corporate governance model based on the core

values of excellence, honesty, knowledge, caring, integrity and

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

specialist through a quality approach to business.

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

has adopted prudent financial practices to ensure safety of

policyholder's funds. The Company's paid up capital is Rs. 587 crore,

which is more than the norm laid down by Insurance Regulatory

Development Authority (IRDA).

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

company is spearheading a major thrust into additional distribution

channels to further grow its business. The company is using a five-

pronged strategy to pursue alternative channels of distribution. These

include the franchisee model, rural business, direct sales force

involving group insurance and telemarketing opportunities, bancassurance and corporate alliances.

Customers to Max New York Life offer a suite of flexible products. It

now has 22 life insurance products and 8 riders that can be customized

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to over 400 combinations enabling choose the policy that best fits

their need.

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

awarded the IS0 9001:2000 certifications.

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.

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

becoming members of the MDRT in 2005, Max New York Life has

moved up in the Top 50 MDRT global list.

ABOUT NEW YORK LIFE

New York Life Insurance Company, a Fortune 100 company

founded in 1845, is the largest mutual life insurance company in the

United States and one of the largest life insurers in the world.

Headquartered in New York City, New York Lifes family of

companies offer life insurance, annuities and long-term care

insurance. New York Life Investment Management LLC provides

institutional asset management and retirement plan services. Other

New York Life affiliates provide an array of securities products and

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services, as well as institutional and retail mutual funds.

The mission of New York Life is to maintain its superior 'financial

strength', adhere to the highest standards of 'integrity' and demonstrate

'humanity' by treating its customers, agents and employees with

compassion, consideration and respect.

New York Life is one of the largest and strongest life insurance

companies in the world with more than USD$215 billion assets under

management and has received among the highest ratings for financial

strength from the life insurance industry's principal rating agencies:

A.M. Best (AA+), Standard & Poor's (AA+), Moody's (Aa1), Fitch

(AAA). According to Moody's, "New York Life's rating reflects the

company's good quality investment portfolio, ample liquidity, and

sound capitalization, as well as the good growth potential of its

international business.

As a leader in the insurance industry, New York Life continues to

bring to its operations new management concepts, advanced

technologies, new distribution and training systems and innovative

insurance products.

ABOUT MAX INDIA LIMITED

Founded in 1985, Max India Limited is a Public Limited company

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

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

spirit of Enterprise, focused on Knowledge, People and Service

oriented businesses of:12


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Healthcare (Max Healthcare)

Life Insurance (Max New York Life Insurance)

Clinical Research (Neeman Medical International)

Max also maintains interests in:

Specialty Plastic Products for the packaging industry (Max

Specialty Products)

Healthcare Staffing (Max Health Staff)

Prominent shareholders are Mr. Analjit Singh and a leading private

equity firm, Warburg Pincus that accounts for 28.7% of the total

shareholding. The public and Institutional Investors hold the balance

shareholding.

Till 1999, the companys main interests and partnerships were the

following:

Business Partners

Bulk Active Pharmaceuticals DSM Gist

Brocades

Electronic Component Distribution Motorola, USA

Electronic Component Distribution Avnet Inc., USA

Mobile Telephony Hutchison

Telecom Ltd.

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Hong Kong

V-SAT Communications Comsat

Investment Inc.,

USA &

Lockheed Martin,

USA

Plating Chemicals Atotech,

Germany

Information Technology Mind Crossing,

USA

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

the businesses of Life under the theme, LifeOur Focus.

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

Max India Limited and New York Life, a Fortune 100 company, is

one of the leading private life insurers in India.

Max Healthcare, a subsidiary of Max India Limited is Indias first

provider of comprehensive, standardized, seamless, and integrated

world-class healthcare services.

Neeman Medical International (NMI) is an International Clinical

Research provider operating across three locations spanning North

America, Asia and Latin America. Each location is backed by

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comprehensive infrastructure and highly skilled and experienced

personnel.

Board of Directors- Max India Limited

Dr Bhai Mohan Singh Lifetime Chairman Emeritus, Max

India

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

Mr. Bharat Sahgal Managing Director, Warburg Pincus

India Pvt. Ltd.

Mr. B Anantharaman Jt. Managing Director, Max India

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2.2 Vision, Mission & Values of MNYL

Mission of MNYL

To become the most admired life insurance Company in India.

This we hope to achieve by:

o Understanding the needs of customer and offering them

superior products and services.

o

Leveraging technology to service customers quickly,efficiently and conveniently.

o Providing an enabling environment to foster growth and

learning for our employees.

o And above all, building transparency in all our dealings.

We do believe that we are on the threshold of an exciting new

opportunity, where we can play a significant role in redefining and

reshaping the sector. Given the quality of our parentage and the

commitment of our team, there are no limits to our growth.

MISSION OF MNYL

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

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VALUES OF MNYL

This vision to become India's most admired life insurance

company will be realized through our unique set of values, which are

as follows:

Knowledge

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

protect them. Perfectly combining global expertise with localknowledge, 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

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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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CHAPTER 3

3.1 OBJECTIVE OF THE STUDY

To understand the procedure of channel development in

MNYL.

To know about Life Insurance, its benefits and needs.

To find out possible advantage of Insurance advisors in MNYL.

To find the suitable person for the recruitment of Insurance

advisors.

To study the product basket at Max NewYork Life Insurance

To find out the peoples perception about life insurance.

To find out whether people were really aware of life insurance.

To find out how people think about private life insurance.

To find out what respondents expect from life insurance.

To understand Consumer buying behavior

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To come out with conclusion and suggestions based on the

analysis and the Interpretation of data.

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CHAPTER - 4

4.1 Conceptual Framework

Life Insurance

Life insurance is a contract providing for the payment of a sum of

money to the person assured or failing him to the person entitled to

receive the same on the happening of cetin event.

Uncertainly of death is inherited in human life. It is this rise, which

gives rise to the necessity for some form of protection against the

financial loss arising from the death. Insurance substitutes this

uncertainty by certainly.

The objective of Insurance is normally to provide

A. Family protection

B. Provision for old age

Requirement of Life Insurance

You think twice before taking the plunge into buying life insurance. Is

buying insurance is necessity now? Spending an extra amount as21


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premium at regular intervals where do you not see immediate benefits

does not seem a necessity at the moment.

Well you could be wrong. Buying insurance cannot be compared with

any other form of investment. Insurance gives you a life long benefits

and the returns will definitely come but only when you need it the

most i.e. at the right time. Besides buying insurance early in life is one

of the wise decisions you could take.

Insurance is not about how much more it can offer you when the stock

market is at the peak. It may not be an attractive investment option.

But weight pros and cons and consider how much more it can offers at

a small price.

Most important of all it provides you with the unique sense of security

that no other form of investment provides. It gives you a sense of

financial support especially during that time of crises irrespective of

the fluctuation in the stock market. Insurance provides for your career

goals right from the childhood years.

If the eating member of the family is no more your childs educational

need will not suffer. In fact his higher education too will be provided

for. You need not spend sleepless night thinking about how to save for

childs marriage. Life insurance will take care of that typical once-in-

a-life-time spending on marriage.

An accident or a disability may be devastating but a life insurance

policy can be of utmost support for the family during such times too.

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Besides it provide for addition benefits such as bonuses. You need not

worry about retirement years. The rising prices, taxes and your

lifestyle will be taken care of easily. And you can relax and spend

your old age in comfort and peace.

Life insurance todays plays a major role in once life at various stages.

Considering the benefits it offers one cannot give a thought to buying

an insurance policy the earliest.

Need for Insurance

The need for life insurance comes from the need to safeguard our

family. If you care of your familys need you will definitely consider

insurance.

Today insurance has become even more important due to the

disintegration of the prevalent joint family system, a system in which

a number of generations co-existed in harmony, a system in which a

sense of financial security was always there as there were more

earnings members.

Times have changed and nuclear family has emerged. Apart from

other pitfalls of a nuclear family, a high sense of insecurity is

observed in it today besides, the family has shrunk. Needs are

increasing with time and fulfillment of these needs is a big question

mark.

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How will you be able to satisfy all those needs? Better lifestyle, good

education, and your long desired house. But again you just cannot

fritter away your earnings. You need to save a part of it for the future

too a wise decision. This is where insurance helps you.

Factors such as fewer numbers of earning members, stress, pollution,

increasing competition, higher ambitious etc are some of the reasons

why insurance has gained importance and where insurance plays a

successful role.

Insurance provides a sense of security to the income earner as also to

the family. Buying insurance frees the individual from unnecessary

financial burden that can

Otherwise make him spend sleepless night. The individual has a sense

of consolidation that he has sometime to fall back on.

From the very beginning of your life, to your retirement age insurance

can take care of all your needs. Your child needs good education to

mould him into a good citizen. After his schooling he needs to go for

higher education, to gain a professional edge over the others a

necessity in this age where cutthroat competition is the rule. His

career needs have to be fulfilled.

Insurance is a must also because of the uncertain future adversities of

the life. Accidents, illness, disability etc are the facts of life, which

can be extremely devastating. Other than the hospitalization,

medication bills these may run up its the aftermath of the accident,

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the physical well being of the individual that has to be taken into

consideration. Will the individual be in a position to earn as before? A

pertinent question. But what if he is not? Disability can be taken care

of by insurance. Your family will not have to go through the grind due

to your present inability.

Moreover, retirement, an age when every individual has almost

fulfilled his responsibilities and looks forward to relaxing can be

painful if not planned properly. Have you consider the increasing

inflation and taxes? Will you investment offer you attractive return

under such circumstances? Will it take of your family after you? An

insurance policy will definitely take care of these things. Insurance

today has opened up new vistas a lot of potential. Considering how

dependent our agriculture system is on the monsoon, the farmer sees a

dim future. The uncertainty of the monsoon too can be taken care of

by insurance. Looking at the advantage of the insurance policy a

number of farmers have gone into insurance. Insurance has become a

necessity today.

The right time to buy Insurance

Buying life insurance cannot ever be compared with other investment

decisions since it is very much contrast with those stock market

investments where you wait for the right time to buy and sell. Neither

is this like receiving tips on particular scrip doing well in the market

and holding great future prospects.

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Buy life insurance at the earliest. Do you think when you will fall ill?

Are you sure about future income earning potential? Are you sure you

will never meet an accident? If not buy insurance now

This is because the future is always uncertain. Just as buying

insurance is a necessity so also buying insurance early in life is

important too. With proper financial planning one can work out as to

how much money an individual is entitled to after the end of a

particular term. A policy that fulfills your childs future education

needs would have to be timed appropriately so that he receives the

policy amount at the time when he needs it the most.

Benefits of life insurance

The proceeds accruing from life insurance policy can be utilized for:

A. Final expenses resulting from death.

B. Guaranteed maintenance of lifestyle.

C. Replacement of income.

D. Mortgage or Liquidation payment.

E. Cost of education.

F. Estate and other taxes.

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That perhaps, was how insurance made its beginning.

Life insurance, on the other hand, had its original in ancient Rome,

where citizens formed burial clubs that would meet the funeral

expenses of its members as well as help supervisors by making some

payment.

As European civilization progressed, its social institutions and welfare

practices also got more and more refined. With the discovery of new

lands, sea route and the consequent growth in trade, medieval guild

took it upon themselves to protect their members traders from loss on

account of fire, shipwrecks and the like.

Since most of the trade took place by sea, there was also the fear of

pirates. So these guilds even offered ransom for members held captive

by pirates. Burial expenses and supports in times of sickness and

poverty were other services offered. Essentially, all these revolved

around the concept of insurance of risk coverage.

ENTRY OF COMPANIES

The first stock companies to get into the business of insurance were

chartered in England in 1720. The year 1735 saw the birth of the first

insurance company in the American colonies in Charleston.

However, it was after 1840 that life insurance really off in a big way.

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THE GROWING YEARS

The 19th century shows huge development in field of insurance, with

newer products being advised to meet the growing need of

urbanization and industrialization.

In 1835, the infamous New York fire drew peoples attention to the

need to provide for sudden and large losses. Two years later,

Massachusetts became the first state to require companies by law to

maintain such reserves. The great Chicago fire of 1871 further

emphasized how fires can cause huge losses in diversity populated

modern cities. The practice of reinsurance, wherein the risks are

spread among several companies, was devised specifically for such

situations.

There were more offshoots of the process of industrialization. In 1897,

the British government passed the Workmens compensation act,

which made it mandatory for a company to insure its employees

against industrial accidents.

With the advent of the automobile, public liability insurance, this first

made its appearance in the 1880s gained importance and acceptance.

In the 19th century, many societies were founded to insure the life and

health of their members, while fraternal orders provided low costs,

members-only insurance.

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As these companies grew, the government began to exercise control

on them. The Insurance Act was passedin1912, followed by a detailed

and amended Insurance Act of 1938 that looked into investments,

expenditure and management of these companies.

As a result, the government decided nationalizes the life assurances

business in India. The Life Insurance Corporation of India was sat up

in 1956 to take over around 250 life companies.

For years thereafter, insurance remain monopoly of the public sector.

It was only after seven years of deliberation and debate- after the R.N

Malhotra Committee report of 1994 became the first serious document

calling for the reopening up of insurance sector to private players- that

the sector was finally opened up to the private players in 2001.

SOME OF THE IMPORATANT MILESTONES IN THE

LIFE INSURANCE IN INDIA ARE:

1912: The Indian Life assurance Companies Act enacted as the First

statue to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the

Government to collect Statistical information about both lives and

Non-life Insurance business.

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1938: Earlier legislation consolidated and amended to by the

Insurance Act with the objective of protecting the interest of the

insuring people.

1956: 245 Indian and foreign insurers and provident societies taken

over by the central government and nationalized, LIC formed by an

Act of parliament, viz. LIC Act, 1956, with a capital contribution of

Rs. 5 Crores from the government of the India.

Effect Of Liberalization

The winds of liberalization have initiated vast changes in the

functioning of the industry today. Increasing number of multi-national

partnership with private insurers have paved the way for radical shift

in insurance selling through a number of new distribution channels

besides bringing about more awareness in the need for insurance and

stressing on the important role technology can play.

With major trade barriers, gone the Indian insurance industry is

slowly opening itself from a protected environment to e-business,

incorporating newer technology in insurance.

The opening up of the sector is paving way for:

o Faster decision making

o Easier claim settlement

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o Bank assurance

o Improved customer service

Utilizing the extensive network of banks for selling insurance will

over a period bring about an increase in insurance density improving

insurance penetration in rural areas where in a large unexploited

potential exists.

INSURANCE SECTOR REFORMS

In 1993, Malhotra committee, headed by former Finance Secretary

and RBI Governor R.N Malhotra, was founded to evaluate the Indian

insurance industry and recommended its future direction.

The Malhotra committee was set up with the objective ofcomplementing the reforms initiated in the financial sector.

The reforms were aimed at creating a more efficient and competitive

financial system suitable for the requirements of the economy keeping

in minds the structural changes currently.

Underway and recognizing that insurance is an important part of the

overall financial system where it was necessary to address the need

for similar reforms.

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The approval of institutions for imparting training to agents has also

ensured that the insurance companies would have a trained work force

of insurance agents in place to sell their products.

Since being set up as an independent statutory body the IRDA has put

in a framework of globally compatible regulations. In the private

sector, 12 life insurance and 6 general insurance companies have been

registered.

The important functions of IRDA are as follows:

To exercise all powers & functions of controller of insurance.

Protection of the interest of the policyholder.

To issue, renew, modify, withdrawn or suspend certificate of

registration.

To specify requisite qualification & training for insurance

intermediaries & agents.

To promote & regulate professional organization connected

with insurance.

To conduct inspection/investigation etc.

To prescribe methods of insurance Accounting.35


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This an attempt to make the insurance sector more dynamic- this is

likely to happen as banks will us their formidable branch network to

market and distribute the insurance products.

The Indian insurance industry, which until now was a controlled

sector, with only two players for the last four and half decades, has

suddenly turned itself into a battleground. Though the sector remained

in the strong clutches of the government enterprise, the growth has

been slow. A number of players, both domestic and international,

characterize the industry competing for the huge untapped market.

The Indian insurance sector is witnessing a slow and steady change.

Though the sector is yet to come out of the government control

completely, the new constraints are hopeful of competing head-on

with the state-owned monopolies and create a niche for themselves.

4.3 Types Of Insurance Policies

Though there are lots of policies available in the market under

different names and by different companies, the policies can broadly

be classified into following categories:

Term Insurance policy

Whole life policy37


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Money back policy

Endowment policy

Pension plans or Annuities

Term Insurance Policy

Term insurance provides life insurance coverage for a specific period

of time. Presently one year, ten year, and fifteen year are the periods

one can buy term life insurance policy. If the insured person dies

during the period the insurance is in force, the insurance company

pays off the face value of the policy. If the insured lives longer than

the term of the policy, the policy is no longer in effect and nothing is

paid.

Term insurance is the least expensive form of life insurance. It is

commonly used when the insured needs temporary protection or cant

afford the premiums for the other forms of life insurance. The other

reason an insured may want term insurance is to purchase life

insurance and invest the difference between the term policy and cash

value policy elsewhere.

Term insurance comes in several forms. There is renewable & non-

renewable. Non-renewable means that on the expiry of your policy

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life policy insurance belongs to the insured. One can take it out in the

form of the policy loan or cash the policy in. another advantage of

whole life policy is that the premium are fixed, i.e. regardless of your

income, you pay the same amount for the coverage each year.

Universal life insurance policy

Universal life insurance is a variation of whole life. The difference is

that with Universal life insurance part is spread from the investment

portion of the policy. The cash value portion of the policy is tested, as

an accumulation fund and investment is credit to the accumulation

fund.

Money Back Policy

Money back policy provides the periodic payments of partial survival

benefits during the term of the policy, as long as the policyholder is

alive.

An important feature of this type policy is that in the event of the

death at any time within the policy term, the death claims comprises

the full sum assured, without deduction of any of the survival benefit

amount, which may have already been paid as money back

components. Similarly the bonus is also calculated on the entire sum

assured.

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Endowment policy

An Endowment policy covers the risk for a specified period, at the

end of which the sum assured is paid back to the policyholder, along

with the bonus accumulated during the term of the policy. This feature

of payment of endowment to the policyholder when the policies term

is complete is responsible for the popularity of endowment policies.

The amount received on maturity can either to buy an annuity policy

to generate a monthly pension for the rest of the policy, or put it into

any other suitable investment of our choice. This is one important

benefit, which the endowment policy offers over a whole life

insurance policy.

Overall, endowment policies are the most suitable of all insurance

plans for covering the risk to a family breadwinners life. Not only do

these policies provide financial risk cover for the family, were the

policy holder to die prematurely but the insurance amount is also

repaid once this risk is over.

Alternately, the endowment sum is available for a suitable investment

geared to providing an income for the remainder of once own life.

These types of plans are particularly suitable to those who other than

having risk cover is also interested in a saving component

simultaneously.

Pension Plan Or Annuity

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An annuity is an investment that we make, either in a single lump sum

or through installments paid over a certain numbers of years, in return

for which we receive a specific sum every tear, every half-years of

every month, either for whole life or a fixed number of year.

After the death of annuitant or after the fixed annuity period expires

for annuity payments, the invested annuity fund is refunded, perhaps

along with a small addition, calculated at that time. Annuities differ

from all other form of life insurance in one fundamental way-anannuity does provide any life insurance cover but instead offers a

guaranteed income either for life or a certain period.

Typically annuities bought to generate income during ones retired

life, which is why they are also called pension plan. Annuity

premiums are payments are fixed with reference to the duration of

human life.

Settlement Option

When the life insurance policy becomes payable, the insured or the

beneficiaries may elect to take-to-take payment in one lump sum.

However, when the insured or the beneficiaries, elect not to take lump

sum payment, there are several other options available to him for

receiving his payment, which are as follows:

Interest Option42


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o Your premiums are eligible for deduction u/s 80C up to

Rs.100,000/- every year.

o Your claim amounts (from death, on maturity or through

surrenders) are eligible for tax exemption u/s 10(10D).

Life Gain Endowment Policy

Life Gain Endowment Policyprovides you with an insurance cover

that is guaranteed during the tenure of the policy. This policy also

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

unforeseen needseither by surrendering accumulated or taking a loan.

In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Sum Assured plus accrued bonus.

On maturity: Sum Assured plus Guaranteed Addition @ 10%

of Sum Assured plus accrued bonus plus terminal bonus (if

any).

On Surrender of Policy: Surrender value.

Bonus: From 3rd policy year, we will declare bonuses every

year.

Tax benefits:

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Working of Life Maker Unit Linked Investment Plan

In the Life Maker unit linked plan; the premiums you pay are

invested in funds offered by us. You will determine the appropriate

ratio of investments into these funds in consultation with your Agent

Advisor. These funds are invested in assets such as equities, money

market instruments, investment grade corporate bonds, and

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

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

basis your risk taking ability. In turn, we issue units, which representthe value of your policy i.e. you can "see" the value of your policy on

any day by multiplying the number of your units by the value of units

on that day. The value of these units is called the Net Asset Value (or

NAV) and is normally published in newspapers on a daily basis. The

NAV is based on the market value of the underlying investments in

that fund i.e. equities, company bonds, government securities, etc.

KEY BENEFITS

Flexible Protection: You have the flexibility to choose from

two in insurance covers - as per your need.

o Level insurance cover: In the unfortunate event of death

the nominee shall receive higher of the insurance cover

or value of units.

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o Increasing insurance cover: In the unfortunate event of

death the nominee shall receive the sum of insurance

cover and the value of units in the plan. You can change

your type of cover from increasing insurance cover to

level insurance cover during the plan tenor after age 60

by writing to MNYL.

Flexible Investment:

o Secure Fund - Invests 100% in high quality fixed income

securities issued by the Government of India, or

companies or other bodies corporate with a high credit

rating. This fund will have low level of risk and return.

o Conservative Fund - Invests largely in high quality fixed

income securities issued by the Government of India or

companies or other bodies corporate with a high credit

rating. This fund will have a low to moderate level of

risk and return.

o Balanced Fund - Invests in both high quality fixed

income securities issued by the Government of India or

companies or other bodies corporate with high credit

rating, as well as in high quality Indian equity stocks.

This fund will have a moderate level

of risk and return.

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o Growth Fund - Invests largely in high quality Indian

equity stocks. A small portion of the fund may be

invested in high quality fixed income securities issued

by the Government of India or

companies or other bodies corporate with high credit

rating. This fund will have a moderate to high level of

risk and return.

High Customization: We understand your need to adjust yourinvestment portfolio based on factors like changing interest

rates or the volatility in the equities market or a change in your

life stage. The Life Maker plan allows you to switch

between funds in any ratio.The switch allows you to change

your risk return profile of your

existing investments. In every policy year, the

first two switches are free. The switch option we

offer is one of the most powerful and flexible

ones in the market where money from one fund

can be switched to multiple funds in a single

switch.

Life Maker allows you to re-direct your future premiums. You can

invest your future premiums in a fund different from your earlier fund,

or to multiple funds in a ratio different from your earlier ratio

(provided the amount paid into each fund meets our minimum in-force

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requirement). Re-directing helps you change the risk - return profile

of your future investments. In every policy year, the first re-direction

is free Invest more through fund top-ups to match your cash flows.

You can invest extra money in your plan through occasional top-ups

at anytime post the policy commencement dates. However,

cumulative top ups will be allowed up to only 25% of the cumulative

Annual Target Premium. Top ups wont effect any change in Sum

Assured.

Guaranteed free units as loyalty bonus: In the last policy

year, you can get free additional units, known as persistency

units. These are equal to 2.5% of your annual target

premium multiplied by the policy term, but not exceeding

one annual target premium.

Attractive Tax Benefits: .All premiums (including all top-

ups) paid are eligible for a tax rebate under Section 80C of

the Income Tax Act of 1961.All maturity benefits are tax

free under Section 10 (10D) of the Income Tax Act of 1961.

All switches are tax free.

Group Term Life

Easy and convenient administration one single master policy for all

employees. Group size of at least 25 employees. No upper limit on

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membership. Policy is valid for one year and can be renewed

annually.

Uniform or a graded cover can be provided on any basis chosen by

your subject to a maximum of three years of salary per employee.

In case of death of an employee, due to natural or accidental reasons,

the entire sum assured amount is paid to the employer.

Additional Protection is available through riders forCritical Illness,

Accidental Death Benefits, Disability and Dismemberment.

New members can join and out going members can leave the scheme

at any time

with premium adjustment.

Group gratuity

After an employee has rendered continuous service for at least five

years, he/ she is eligible for 15 of days pay for each completed year of

service. The employer can also structure a gratuity benefit that is

higher than statutory requirements. The gratuity benefit is payable on

cessation of employment (either by resignation, death, retirement or

termination etc), by taking last drawn basic salary as the basis for the

calculation.

Gratuity payment is a statutory liability for an organization and tends

to increase as the salaries and tenure of employment increase

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Employee deposit linked insurance

All establishments with at least 10 full-time permanent employees and

to whom the Employee's Provident Fund and Miscellaneous

Provisions Act, 1952 applies, have a statutory liability to subscribe to

Employee's Deposit Linked Insurance Scheme (EDLI), 1976 to

provide for life insurance for all their employees. The organization

has to make a contribution @ 0.51% of each employee's wages (Basic

+ Dearness Allowance + Retaining Allowance), subject to a

maximum of Rs.6, 500 per month, to the Provident Fund Authoritiesas part of its compliance to the Act. The death benefit payable under

this scheme is based on the provident fund account balance of the

individual member, subject to a maximum of Rs.60, 000.

Under Section 17 (2-A) of the Provident Fund Act, the Central

Provident Fund Commissioner may, if requested to do so by the

employer, by notification in the Official Gazette, exempt, whether

prospectively or retrospectively, any establishment from the

provisions of the EDLI scheme, if he is satisfied that the employees of

such establishment, without making any separate contribution or

payment of premium, enjoy life insurance benefits more favorable

than the benefits under the EDLI scheme. Max New York Life

Insurance Co. Ltd offers Group Term Insurance Scheme, a unique,

simple and flexible scheme, which is a far better alternative to the

Employee Deposit Linked Insurance Scheme (EDLI) because of the

benefits it offers to both the employer and the employee. The

Employees Provident Fund

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Organization has approved this scheme as an alternative to EDLI

scheme.

The organization will enjoy the following advantages by subscribing

to the Max New York Life Group Term Insurance as compared to the

EDLI scheme:

The premium payable by the employer under the Max New York Life

group Term Insurance Scheme will be usually less than the total

contribution being paid by the employer to Regional Provident Fund

Commissioner, particularly when average age of the group is low and

the employer is in a low-risk industry.

Flexibility to opt for either a uniform flat cover for all employees or a

graded cover as per notional PF balance.

Well defined and simplified claim process will ensure quicker and

hassle-free claim settlement.

Administrative convenience for additions and deletions of members

with no elaborate.

Credit shield

Credit Shield is a protection cover, which ensures that the loan

amount is paid back to the lender in case of an untimely demise of the

borrower.

Convenient Structuring

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The plan can be conveniently structured in a way such that the entire

loan amount or the balance loan amount is paid up in case of the

untimely demise of the borrower. The premiums can also be adjusted

every year according to the reducing loan balance amount.

This plan provides total peace of mind because in case of an untimely

demise of the borrower, the family is not burdened with the loan.

Unit linked group gratuity

Gratuity is a statutory benefit to the employees under the Payment of

Gratuity Act

1972. After the employee has rendered continuous service for at least

five years, he/ she are eligible for 15 days pay for each completed year

of service. The gratuity benefit is payable on cessation of employment

(either by resignation, death, retirement or termination etc), by taking

last drawn basic salary as the basis for the calculation.

Gratuity payment is a statutory liability for an organization and tends

to increase as the salaries and tenure of employment increase

annually. In case of big, developing & growing organization, gratuity

payout can work out to a substantial amount. If the trust pays gratuity

from its current revenue, it becomes difficult to meet the liability, it is

therefore beneficial that a gratuity fund is set up for prudent financialplanning.

Apart from being used as an effective tool to reward loyal employees,

Gratuity can be considered as a powerful tool to retain employees as

well. This can be done by structuring a higher gratuity benefit than the57


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statutory requirements. Max New York Life has made the Group

Insurance portfolio more robust by launching the Unit Linked

Gratuity Plan.

Max New York can now offer you two options of:

Non-unit Linked or Traditional Group Gratuity Plan: Which

facilitates systematic and steady funding of the liability?

Unit Linked Group Gratuity Plan: This facilitates steady funding

and the opportunity of increased returns on investment.

Benefits of the Unit Linked Group Gratuity Plan

Opportunity for growing the fund safely and prudently by managing

the fund investments properly and maximizing the returns on the

investments and thereby bringing down the costs of the funding

liability in the future.

Multiple Flexible Investment options based on the risk taking ability

of the trust.

Life covers for full-anticipated service.

Contributions are exempted from Tax.

Total Transparency in charges and the returns declared.

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Complete range of services provided: Taxation, Legal, and

Investment.

Max Suraksha Policy

Max Suraksha Policy is designed by us keeping in mind our social

responsibility. The policy is used to provide protection to social and

rural segments. It provides an insurance cover for 5 years.

KEY BENEFITS

A. On death of life insured: Sum Assured

B. On Maturity: Return of 100% of premiums.

C. Tax benefits:

Super Saver Bond Policy

Super Saver Bond Policy will keep paying you a part of the Sum

Assured at regular intervals, to take care of your periodic foreseen

needs, and the balance keeps growing to take care of your long term

saving needs, as well as provides insurance coverage till maturity.

KEY BENEFITS

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On death of life insured: Sum Assured (without deducting

any money back benefits already paid) plus additional death

benefit equal to Sum Assured in case of accidental death.

On survival / maturity:

4th year 10% of Sum Assured

6th year - 10% of Sum Assured

8th year 10 % of Sum Assured

At Maturity 140% of Sum Assured

On Surrender of Policy: Surrender value.

Tax benefits:

o Your premiums are eligible for deduction u/s 80C up to

Rs.100, 000/- every year.

o Your claim amount (from death, on maturity or throughsurrender) is eligible for tax exemption u/s 10(10D).

Amsure Bonus Builder Policy

Amsure Bonus Builder Policyprovides an insurance cover that is

guaranteed for your entire life. This policy also builds cash value,which you can use during your lifetime to fund any unforeseen needs

either by surrendering accumulated or taking a loan. In addition this

policy is also eligible for bonuses.

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LifeIinsurance Advisor or Agents

An agent is the representative of an insurance company who sells

different policies or products to its clients. Another term used for

insurance agents is Advisors.

Today in life insurance companys advisors are known to be the

backbone of the whole system. Advisors/agents do not work on

monthly payroll basis; they receive a certain commission on the

policies they sell to the clients.

The eligibility required to become an advisors/agents is that he/sheshould be 12th pass to operate in urban area and 10th pass for rural

areas. Before a person becomes advisors/agents he/she has to undergo

100 hrs training according to IRDA norms, which is compulsory.

70-75% of profits gained in life insurance business are through

advisors/agents.

Requisites of an Insurance advisors/agents

Any person who is 12th pass and having a minimum age of 18 years

can become insurance advisor but an insurance company wants such

persons who are having a very zeal to earn more and more and should

have a very good communication skill, which can satisfy the

customer. Relationship skill is must in insurance advisor/agents.

MNYL wants mainly five things in an insurance advisor:

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amongst the highest agent pass rate in IRDA examinations and the

agents have the highest productivity among private life insurers.

201 agent advisors have qualified for the Million Dollar Round Table

(MDRT) membership in 2005. MDRT is an exclusive congregation of

the worlds top selling insurance agents and is internationally

recognized as the standard of excellence in the life insurance business.

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

company is spearheading a major thrust into additional distribution

channels to further grow its business. The company is using a five-

pronged strategy to pursue alternative channels of distribution. These

include the franchisee model, rural business, direct sales force

involving group insurance and telemarketing opportunities, banc

assurance and corporate alliances.

Recruitment and selection of insurance advisors

As we know that Recruitment involves seeking and attracting a pool

of people, from which qualified candidates for the job vacancies can

be chosen. Recruitment sets out the necessary stages to clarify what

kind of person is required, where he/she might found and how to

make right choice.

Recruitment of life insurance agent is also a very impressive criterion

because in this process we need to recruit and select those persons

who bear some special characteristics, which are very necessary to

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sell insurance. Life insurance is an intangible product and it needs

insurance advisors who are having tremendous skills to sell an

intangible product.

The key to good selection is preparation. So many people are found of

their ability to pick a good sales person and so often, that person is

good but not at the particular job which needs to be done. It is vital to

be clear about what job needs doing and what kind of person would

do it best; and then to find that person. Once the plan has been

decided, the choice of candidate should be made carefully.

The effectiveness of the unit manager is dependent to great extent on

the effectiveness of the team of advisors supporting him, because an

advisors works under a unit manager. So it is very important to recruit

a very good team of life insurance advisors who can give their best to

increase the effectiveness and the profit of the company. MNYL give

very much stress on it and to recruit only those people as a life

insurance advisor who is having some key skills specifies by the

company.

Further we will show the recruitment and selection procedure of life

insurance advisors in MNYL insurance company ltd, and try to

analyze whether it is the best process of recruitment or company can

do certain new modifications to enhance their recruitment processor

for the increment of companys effectiveness. From the next page, we

will see the recruitment and selection procedure of life insurance

advisors.

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rejection is must more than acceptance, so an advisor has to be

very strong from the heart and should not depressed soon.

Persuasion: It is one of the very effective qualities, which must

be there in an insurance advisor. It shows the perceiving ability

of an advisor for his job.

Urge to be financially independent: For a job which is

commission based, an urge should be their in an advisor to

become financially independent, then only he would be able to

generate more money for himself and for the company.

Relationship skills: This very necessary element of qualityshown in an advisor by the MNYL because these skills help the

advisor to make good relation from his customers, which is

very necessary for the future of the company.

3. Where will this person be found?

Now, we know what the job is and what kind of person is

required for the job-only we need to find this person. The

persons for this kind of job of a life insurance advisor can be

found at many places through many resources but most of the

insurance agents chosen from the relations and with direct

contacts. The following are the sources from where we can find

out the persons who can become good life insurance agent:

Employment agencies: Employmentagencies can be used as a

wide source for the persons to this job.

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Advertising: It also plays a very effective role in finding of the

persons for becoming an insurance agent. MNYL also use this

source.

Educational institutes: They are also one of the main sources

for the company to find out the person as an advisor.

Direct contact with people: MNYL also uses direct contacts

with people and offers business opportunity to them, company

representatives contact to the persons and explains business

opportunity presentation to them.

4. Which person is to be recruited?

The simple answer to this is that the one who fits the

specification and who has the essential characteristics as

defined should be recruited. This implies a structured approach

of three steps. These are:

First, compare companys specification for an advisor with that

of the prospects specifications and remove all these who do not

meet the essential criteria.

Secondly, move on to those areas where the Measuring

Instruments and an assessment at interview are needed. For

instance,

o Education, which should be at least graduate.

o Age, above 30 years.

o Married people are given more importance.

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o Doesnt matter male or female.

o Must be living in city for more than 5 years and should

possess high ambitious and zeal to become financially

independent.

Thirdly, involves the identification pattern of behavior, which

will help

in forming judgments.

After all three steps have been followed and care has been taken to see

that the candidate fits into the specific job requirements one can besure of choosing the right candidate for the right job.

Selection and Placement of Insurance Advisors

A selection system is a set of successive screens at any of which an

applicant may be dropped from further consideration. The process of

selection of insurance advisors differs from companies to companiesdepending upon the requirement. In MNYL the applicant goes

through various stages, the chances of selection get better as more and

more stages are cleared.

Selection procedure: The following selection procedure is used by

for the selection of life insurance advisor in MNYL insurance

company.

o Preliminary interview: In this interview the applicant have face-

to-face interaction with the respective Unit Manager and clear

out all queries and doubts about job. After this interview73


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33.00 1 1.5 1.6 82.036.00 11 16.4 18.0 100.0Total 61 91.0 100.0

Missin

g

System6 9.0

Tota

l67 100.0

Analysis:

From the chart above we find that 16.4% of the respondents are

already covered their three years as an agent advisors, which is the

maximum strength out 100%.

Therefore these agent advisors are needed to motivate more, than the

new agents.

80

1.00

6.00

7.00

12.00

14.00

16.00

17.00

18.00

24.00

29.00

30.00

32.00

33.00

36.00

Missing


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Q3) PART TIME JOB OPTION IS AN IMPORTANT FACTOR

TO JOIN AS AN AGENT?

Frequen

cy Percent

Valid

Percent

Cumulativ

e Percent

Valid 1.00 30 44.8 47.6 47.62.00 20 29.9 31.7 79.43.00 10 14.9 15.9 95.24.00 3 4.5 4.8 100.0Total 63 94.0 100.0

Missin

g

Syste

m4 6.0

Total67 100.0

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Q4) INCENTIVES PLANS GIVEN TO AGENTS ARE

ACHIVABLE.?

Frequen

cy Percent

Valid

Percent

Cumulativ

e Percent

Valid strongly

disagree1 1.5 1.6 1.6

disagree 9 13.4 14.3 15.9neither

agree nor

disagree

6 9.0 9.5 25.4

agree 20 29.9 31.7 57.1strongly

agree 27 40.3 42.9 100.0

Total 63 94.0 100.0Missing System 4 6.0

Total 67 100.0

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strongly disagree

disagree

neither agree nor

disagree

agree

strongly agree

Missing

incentive plan

Analysis:

From the above chart, we can conclude that 40.3% of the respondents

agree that incentive plan of mnyl are effective enough to keep them

motivated & only 1.5% of the respondents feel that incentive plan

doesnt motivate them.

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between 50 to 100. Hence we can conclude that MNYL agent advisors

who are the license holder from the last 3 years are not able to capture

the market after a certain time, may be they dont have further

references or may be they are not willing to work now as an agent

advisor.

Q6) COMMISION EARNED LAST YEAR?

Frequency Percent Valid Cumulative

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Percent Percent

Valid 100k 23 34.3 37.7 100.0Total 61 91.0 100.0

Missing System 6 9.0Total 67 100.0

1.00

2.00

3.00

4.00

Missing

COMMISSION_EARND

Analysis:

From the chart above we find that, 34.3% of the respondents surveyed

earned an annual commission of rs.100000. 28.4% of the respondents

earned an annual commission between rs.10000 to rs.50000. Hence

we can conclude that the agent advisors who have sold around 50

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policies in a year are earning rs.100000 and they are in good numbers

than those agents advisors who have sold the policies between 50 to

100 annually.

Q7) TRAINING AT MNYL IS EXCELLENT?

Frequen

cy Percent

Valid

Percent

Cumulative

Percent

Valid 1.00 1 1.5 1.6 1.62.00 7 10.4 11.1 12.7

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3.00 10 14.9 15.9 28.64.00 19 28.4 30.2 58.75.00 26 38.8 41.3 100.0Total 63 94.0 100.0

Missin

g

Syste

m4 6.0

Total67 100.0

1.002.00

3.00

4.00

5.00

Missing

TRNG_MNYL

Analysis:

From the chart above we find that, 38.8% of the respondents

surveyed, strongly agree that the training at MNYL is excellent,28.8%

people are agree that training at MNYL is excellent, but there are

10.4% of the respondents says that the training is not good at MNYL.

Most of the people are satisfied with the training, because of the work

environment,

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Q9) COMMISION GIVEN TO AGENTS IS NOT UPTO THE

MARK?

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid partially

agree4 6.0 6.3 6.3

neither agree

nor disagree13 19.4 20.6 27.0

Disagree 11 16.4 17.5 44.4Strongly

disagree 35 52.2 55.6 100.0

Total 63 94.0 100.0Missing System 4 6.0

Total 67 100.0

partially agree

neither agree nordisagree

disagree

strongly disagree

Missing

COMMS_STS

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Analysis:

From the above analysis we can conclude that 52.2% of the

respondents disagree with statement, they are satisfied with the

amount of commission that they get from the company.

GENDER OF RESPONDENTS

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid male 32 46 46 46female 35 54 54 100.0Total 67 100.0 100.0

Total 67 100.0

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OCCUPATION OF RESPONDENTS

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid service&busines

s

28 41.8 45.9 45.9

house wives 33 49.3 54.1 100.0Total 61 91.0 100.0


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Analysis:

From the above chart we can conclude that 49.3% of the respondents

are housewives, 41.8% of the respondents belong service and business

class, we can conclude that most of them are woman.

98

service&businesshouse wives

Missing

OCCUPATION


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EDUCATION

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid graduate 38 56.7 60.3 60.3Post

grad.25 37.3 39.7 100.0

Total 63 94.0 100.0


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graduatepost catagory

Missing

EDUCATION

Analysis:

It is clear that the Agents & Advisors at MNYL are mostly graduate

and a less number are post graduate. As MNYL does not recruits

undergraduates, the major target are graduated on

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CHAPTER - 8

ROLE & LEARNING ATMNYL

Role & Learning at MNYL

Job at MNYL was to sell a career to people. It means had to recruit

insurance advisors for our company. The kind of people was looking

forward were:

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people above the age of 25 years

minimum qualification- plus 2, but we prefer people who have

a graduate degree in any field.

And the categories on which focused were:

Housewives: as they are the home-makers and when they advice

you how to manage your funds then they are highly influential.

Retired people: these are the people who have seen life

therefore their advice are also liked by people.

Voluntary retired people

Self employed people

Activities performed were:

Name Gathering:My 1st activity was name gathering. On the first

day I was taught a pen framing exercise for this. This exercise helps

you in getting 50 names from one person. We were told about the

categories from which we can gather name. Figure given below

depicts the same:

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the library for reading newspapers. I tried to convince them and

invited them to attend the career seminar.

I did cold calling also. I got the directory and we called them,

told them about the career opportunity and tried to invite them for

the career seminar.

After collecting names, we have to find out the names of people those

people from that list who are either housewives, retired people, selfemployed, people who have taken VRS, CAs, CSs, i.e. quality

people and after that inviting them.

INVITING:

My second activity was to invite people to the career seminar. Forthis I had a conversation (telephonic) with the people whose

references I got from people and invited them for the career seminar.

For the conversation to be effective a script was given to us stating

that what all we have to speak, how to convince them to meet us and

how to get further references from them.

After the career seminar we used to give a project-200 booklet to them

which they were supposed to fill. In this they were asked to fill at least

100 names of the people whom they know because advisors are asked

to tap their natural market firstly and touch the reference market later

on.

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INITIAL SCREENING:

I had to keep a follow up with the people who attended career

seminar. I used to call them for initial screening, with their filled P-

200s. In the initial screening my job was to see the profile they have

filled in their P-200. Then I had to ask certain simple questions like

who according to him/her is a successful sales person. If find the

person suitable then I had to send him/her to my senior for further

screenings.

PROCEDURE:--

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The whole procedure of my job is given in the form of a flow chart so

that it is easy to conceptualize the idea.

DATABASE

TAKE ONE FROM THESE DATA

MADE A TELEPHONE CALL

AND FIXED AN APPOINTMENT

GO TO THAT PERSON

TRY TO CONVINCE THEM

AND CALL THEM TO CAREER SEMINAR OR

FOR AN INTERVIEW WITH SALES MANAGER

TOOK REFERANCE FROM THEM

GIVE THEM FORM AND ALL NECESSARY ELEMENTS

CLOSED THE CALL

CHAPTER-9

Recommendations106


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Max New York Life Insurance has to improve its brand

image, i.e. it has to position itself in the minds of prospects

in a better way in comparisons to others.

It should provide better career opportunities for the

retention of its potential advisors.

Further it has to provide training to its recruited advisors by

good and efficient training methods, which might be a little

bit customized if needed.

It should more emphasize in advertising, as it is the most

powerful tool to position ant brand in the mindsets of

customers.

It should provide online training and for those who are in

jobs and want to become advisors Max New York Life

should provide evening training classes, so that they can

join the training after doing there jobs.

The policies should be made such that it is viewed as

hedging tools to earn risk-free returns i.e. it should be

considered more than just a risk cover.

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Company should start creating their own database and give

it to the advisors so that the advisors have more option in

their hand.

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CHAPTER 10

CONCLUSION

Life insurance is also now being regarded as a versatile financial

planning tool. Research indicates that Indians have four basic

financial needs during their life asset accumulation (such as

buying a house or car), protecting their family, securing their

childrens education, and provision for their retirement.

India being a country having a huge population of around one

billion people with only 32% of the insurable population in India

possessing life insurance the country has a vast potential, which

has been left untapped till now.

For life insurance company life insurance advisors are the lifeline

and a very huge asset so each company try to recruit and select a

potential force of life insurance advisors because this is the

advisors who generate maximum business for the insurance

company. Life insurance advisors provide a very strong support to

the insurance company and do all possible efforts to generate huge

amount of profit to the company and for him.

In Max New York Life recruitment and selection procedure is

really very impressive. By the help of this process, company

recruits a very good class of advisors. A detail study is done

before starting the recruitment and selection procedure that help

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the company to select the best advisors. This study helps us to

understand all the possible aspects related to the Max New York

Life Recruitment and selection procedure.

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CHAPTER 11

ANNEXURES

1. Are you an Insurance Agent at MNYL?

Yes No

2. How long are you working for MNYL as an Agent & Advisor?

_________________

3.How do you come to Know about MNYL?

Friends Relatives

Internet Promotions

4. The profession is regarded by you as a part time or full time

profession?

Full time Part time

cant say No answer

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5. Are the incentive plans given at MNYL achievable?

strongly agree

Agree

neither agree nor disagree

disagree

Strongly disagree.

6. How many policies did you sell last year?

less than 50 50 - 100

100 - 150 150 & above

7. How much commission did you earned last year?

> 10000 10000 - 50000

50 - 100000 100000 & above

8. Do you agree that training program of agents at MNYL is

excellent?

strongly agree

Agree


disagree

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Strongly disagree

9. Do you agree that personal training is required for Agents &

advisors?

strongly agree

Agree


disagree

Strongly disagree

10. Do you think that the commission given by MNYL is up to the

mark?

strongly agree

Agree


disagree

Strongly disagree

Name____________________

Phone no._________________

Gender___________________

Education_________________

Occupation________________

Thank you, for your Valuable Time.

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CEOsCOU

NCILMDRT

EXECUTIVECOUNCIL

PAUL COLGAN TROPHY

CENTURION

AGENT OF THE YEAR

PAID CASE, FYC, PERSISTENCY, RIDER, FEFERRALAND CEIP LEADER

CAREER PRODUCER AWARD

CAREER SUCCESS AWARD

HI-FLIER

TEN-A-MONTHER

PREMIUM LEADER

CAREER PROGRESSION OF LIFE ADVISOR IN MAX NEW

YORK LIFE

Fig. 8

Reward and recognitions

114

Member-MAX LIFELiving Legends Galaxy

Head, Training National vice Presiden

Financial Advisor Chief Manager (Training) Regional Vice President

Sr. FinancialConsultant

Trainer Branch Manager

Financial Consultant Sales Manager

Life Advisor


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Fig. 9

CHAPTER 12

BIBLIOGRAPHY

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Bibliography

www.maxnewyorklife.com

www.askjeeves.com

www.europages.com

www.directhit.com

http://www.capitalmarket.com/Cmedit/story25-0.asp?

SNo=108003

http://www.rncos.com/Report/FM003.htm

http://www.maxindia.com/pdf/InvestorReleaseQ2FY06.pdf

Kothari, C.R, Research Methodology, New Delhi, Vikas

Publishing House PVT LTD. 2005

Max New York Life brochure of advisors Recruitment.

IC 33 Life Insurance (Revised), Insurance Institute of India
http://www.maxnewyorklife.com/http://www.askjeeves.com/http://www.europages.com/http://www.directhit.com/http://www.capitalmarket.com/Cmedit/story25-0.asp?SNo=108003http://www.capitalmarket.com/Cmedit/story25-0.asp?SNo=108003http://www.rncos.com/Report/FM003.htmhttp://www.maxindia.com/pdf/InvestorReleaseQ2FY06.pdfhttp://www.maxnewyorklife.com/http://www.askjeeves.com/http://www.europages.com/http://www.directhit.com/http://www.capitalmarket.com/Cmedit/story25-0.asp?SNo=108003http://www.capitalmarket.com/Cmedit/story25-0.asp?SNo=108003http://www.rncos.com/Report/FM003.htmhttp://www.maxindia.com/pdf/InvestorReleaseQ2FY06.pdf

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