PROJECT REPORT

ON

CUSTOMER BUYING BEHAVIOR OF

MAX NEW YORK LIFE INSURANCE

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF FULL- TIME PROGRAMME IN NATIONAL ECONOMIC PLANNING & ENTREPRENEURSHIP

(2009-11)

GUIDED BY :- SUBMITTED BY:-

Mr. SAURABH SRIVASTAV VINAY KUMAR PANDEY

(SALES MANAGER) ( ID No.- LC0911SS10014IIPM-G)

Mr. MOHD. ABDULLAH KHAN INDIAN INSTITUTE OF

(SALES MANAGER) PLANNING & MANAGEMENT

INDIA BULLS, LUCKNOW LUCKNOW

INDIAN INSTITUTE OF PLANNING & MANAGEMENT

1

ACKNOWLEDGEMEnt

ACKNOWLEDGEMENT

2

Words have never seemed so inadequate as now, when I am endeavoring to

express my sincere thanks to all the people without their help it would have

been an unaccomplished task.

I wish to express my profound gratitude and sincere thanks to Mr. Saurabh

Srivastava (sales manager) India Bulls & Mohd. Abdullah Khan (sales

manager) India Bulls , Lucknow for encouraging & supporting my efforts

all through my job training .

I also put on record my sincere thanks to my institutional guide Ms. Deepti

Verma (Faculty of Academics) IIPM, Lucknow , who gave me moral support

and indepth knowledge about this project .

Last but not the least I would like to thanks my customers , batch mates and

my family for their constant help and support during my summer training .

Vinay Kumar Pandey

(PGP/SS/2009-11)

IIPM

Lucknow

TABLE OF CONTENTS

Page no.

3

1. PREFACE (04)

2. EXECUTIVE SUMMARY (06)

3. INTRODUCTION (08)

Insurance Industry (09) Company Profile (26) Mission, vision & value (38)

4. PROJECT OBJECTIVE (42)

5. BODY OF THE REPORT (46)

SWOT Analysis (47) Target & Tasks (49) Nomenclature (53) Customer Expectation (55) Customer Satisfaction (57) Products (58) Brand Philosophy (68)

6. ILLUSTRATION & ANNEXURES (72)

7. QUESTIONNAIRE (74)

8. CONCLUSION (83)

9. BIBLIOGRAPHY (84)

PREFACE

4

The liberalization of the Indian insurance sector has been the subject of much

heated debate for some years. The policy makers where in the catch 22 situation,

wherein for one they wanted competition, development and growth of this

insurance sector which is extremely essential for channeling the investments in to

the infrastructure sector. At the other end the policy makers had the fears that the

insurance premia, which are substantial, would seep out of the country; and wanted

to have a cautious approach of opening for foreign participation in the sector.

As one of the rare occurrences the entire debate was put on the back burner and the

IRDA saw the day of the light thanks to the maturing polity emerging consensus

among factions of different political parties. Though some changes and some

restrictive clauses as regards to the foreign participation were included the IRDA

has opened the doors for the private entry into insurance.

Whether the insurer is old or new, private or public, expanding the market will

present multitude of challenges and opportunities. But the key issues, possible

trends, opportunities and challenges that insurance sector will have still remains

under the realms of the possibilities and speculation. What is the likely impact of

opening up India’s insurance sector?

The large scale of operations, public sector bureaucracies and cumbersome

procedures hampers nationalized insurers. Therefore, potential private entrants

expect to score in the areas of customer service, speed and flexibility. They point

out that their entry will mean better products and choice for the consumer. The

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critics counter that the benefit will be slim, because new players will concentrate

on affluent, urban customers as foreign banks did until recently. This seems to be a

logical strategy. Start-up costs, such as those of setting up a conventional

distribution network-are large and high-end niches offer better returns. However,

the middle-market segment too has great potential. Since insurance is a volumes

game. Therefore, private insurers would be best served by a middle-market

approach, targeting customer segments that are currently untapped.

.

6

EXECUTIVE-SUMMARY

EXECUTIVE SUMMARY

7

In today’s corporate and competitive world, I find that insurance sector has the

maximum growth and potential as compared to the other sectors. Insurance has the

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

growth rate. This growth potential attracts me to enter in this sector and MAX NEW

YORK Life Insurance Company Ltd has given me the opportunity to work and get

experience in highly competitive and enhancing sector.

The success story of good market share of different market organizations

depends upon the availability of the product and services near to the

customer, which can be distributed through a distribution channel. In

Insurance sector, distribution channel includes only agents or agency holders

of the company. If a company like RELIANCE LIFE INSURANCE, TATA

AIG, HDFC etc. have adequate agents in the market they can capture big

market as compared to the other companies.

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

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

INTRODUCTION

8

The training has been divided into two parts one is sales & other is

recruitment of relationship managers. The training focused totally on

sales maximization where I helped company to maximize not only its

sales but to rectify other problems like services and competition of

other companies .

This training helps to impart on job experience, under this training

we resorted to cold calling, interview, handling quarrels of the customers

and getting appointments and then going to the requested places to help

them identify the need of particular services and pursue them to fulfill

that need. This helps to handle the objections of customers and also

taking the interview for the recruitment of relationship managers for

building the team of sales.

9

INTRODUCTION TO THE INDUSTRY

THE HISTORY OF INDIAN INSURANCE INDUSTRY

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Life Insurance

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

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

made with the introduction of the Indian Life Assurance Companies Act in 1912.

A number of amendments to this Act were made until the Insurance Act was drawn

up in 1938. Noteworthy features in the Act were the power given to the

Government to collect statistical information about the insured and the high level

of protection the Act gave to the public through regulation and control. When the

Act was changed in 1950, this meant far reaching changes in the industry. The

extra requirements included a statutory requirement of a certain level of equity

capital, a ceiling on share holdings in such companies to prevent dominant control

(to protect the public from any adversarial policies from one single party), stricter

control on investments and, generally, much tighter control. In 1956, the market

contained 154 Indian and 16 foreign life insurance companies. Business was

heavily concentrated in urban areas and targeted the higher echelons of society.

“Unethical practices adopted by some of the players against the interests of the

consumers” then led the Indian government to nationalize the industry. In

September 1956, nationalization was completed, merging all these companies into

the so-called Life Insurance Corporation (LIC). It was felt that “nationalization has

lent the industry fairness, solidity, growth and reach.”

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Some of the important milestones in the life insurance business in India

are:

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

regulate the life insurance business.

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

collect statistical information about both life and non-life insurance businesses.

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

the objective of protecting the interests of the insuring public.

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

General Insurance

The General Insurance industry in India dates back to the Industrial Revolution and

the subsequent increase in trade across the oceans in the 17th century. As for Life

Insurance, the British brought General Insurance to India, and a similar path was

followed in the development of this industry. A number of private companies were

in existence for years and years until, in 1971, the Indian Government decided that

the public interest would be served by nationalizing the industry, merging all the

107 companies into four companies, depending on the sort of business transacted

(Marine, Fire, Miscellaneous). These were the National Insurance Company Ltd.,

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

12

and the United India Insurance Company Ltd. located in Calcutta, New Delhi,

Bombay and Madras respectively. The General Insurance Corporation (GIC) was

set up in 1972 as a ‘holding’ company, having these four companies as its

subsidiaries.

Some of the important milestones in the general insurance business

in India are:

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

all classes of general insurance business.

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

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

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

general insurance business in India with effect from 1st January 1973. 107 insurers

amalgamated and grouped into four companies viz. the National Insurance

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

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC

incorporated as a company.

MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIAMAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

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Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to

spread the message of life insurance in the country and mobilise people’s savings

for nation-building activities. LIC with its central office in Mumbai and seven

zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and

Bhopal, operates through 100 divisional offices in important cities and 2,048

branch offices. LIC has 5.59 lakh active agents spread over the country.

The Corporation also transacts business abroad and has offices in Fiji, Mauritius

and United Kingdom. LIC is associated with joint ventures abroad in the field of

insurance, namely, Ken-India Assurance Company Limited, Nairobi; United

Oriental Assurance Company Limited, Kuala Lumpur; and Life Insurance

Corporation (International), E.C. Bahrain. It has also entered into an agreement

with the Sun Life (UK) for marketing unit linked life insurance and pension

policies in U.K.

In 1995-96, LIC had a total income from premium and investments of $ 5 Billion

while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's

income grew at a healthy average of 10 per cent as against the industry's 6.7 per

cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).

14

LIC has even provided insurance cover to five million people living below the

poverty line, with 50 per cent subsidy in the premium rates. LIC's claims

settlement ratio at 95 per cent and GIC's at 74 per cent are higher than that of

global average of 40 per cent. Compounded annual growth rate for Life insurance

business has been 19.22 per cent per annum.

General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government

company known as General Insurance Corporation of India (GIC) was formed by

the Central Government in November 1972. With effect from 1 January 1973 the

erstwhile 107 Indian and foreign insurers which were operating in the country prior

to nationalization, were grouped into four operating companies, namely, (i)

National Insurance Company Limited; (ii) New India Assurance Company

Limited; (iii) Oriental Insurance Company Limited; and (iv) United India

Insurance Company Limited.  (However, with effect from Dec'2000, these

subsidiaries have been de-linked from the parent company and made as

independent insurance companies). All the above four subsidiaries of GIC operate

all over the country competing with one another and underwriting various classes

of general insurance business except for aviation insurance of national airlines and

crop insurance which is handled by the GIC.

15

Besides the domestic market, the industry is presently operating in 17 countries

directly through branches or agencies and in 14 countries through subsidiary and

associate companies.

IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN

PERMITTED TO ENTER INTO INSURANCE BUSINESS: -

The introduction of private players in the industry has added to the colors in the

dull industry. The initiatives taken by the private players are very competitive and

have given immense competition to the on time monopoly of the market LIC.

Since the advent of the private players in the market the industry has seen new and

innovative steps taken by the players in this sector. The new players have

improved the service quality of the insurance. As a result LIC down the years have

seen the declining phase in its career. The market share was distributed among the

private players. Though LIC still holds the 75% of the insurance sector but the

upcoming natures of these private players are enough to give more competition to

LIC in the near future. LIC market share has decreased from 95% (2002-03) to 82

%( 2004-05).

1. HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life

insurance companies, which offers a range of individual and group insurance

solutions. It is a joint venture between Housing Development Finance Corporation

16

Limited (HDFC Ltd.), India’s leading housing finance institution and The Standard

Life Assurance Company, a leading provider of financial services from the United

Kingdom. Their cumulative premium income, including the first year premiums

and renewal premiums is Rs. 672.3 for the financial year, Apr-Nov 2005. They

have managed to cover over 11,00,000 individuals out of which over 3,40,000

lives have been covered through our group business tie-ups.

2. Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings

together two large forces - Max India Limited, a multi-business corporate, together

with New York Life International, a global expert in life insurance. With their

various Products and Riders, there are more than 400 product combinations to

choose from. They have a national presence with a network of 57 offices in 37

cities across India.

3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse and prudential plc, a leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was

amongst the first private sector insurance companies to begin operations in

December 2000 after receiving approval from Insurance Regulatory Development

17

Authority (IRDA). The company has a network of about 56,000 advisors; as well

as 7 bank assurance and 150 corporate agent tie-ups.

4. Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak

Mahindra Bank Ltd. (KMBL), and Old Mutual plc.

5.Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group

and Sun Life financial Services of Canada.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Allianz Bajaj Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

AMP SANMAR Assurance Company Ltd.

Dabur CGU Life Insurance Company Pvt. Ltd.

1. Royal Sundaram Alliance Insurance Company Limited  

The joint venture bringing together Royal & Sun Alliance Insurance and

Sundaram Finance Limited started its operations from March 2001. The

company is Head Quartered at Chennai, and has two Regional Offices, one

at Mumbai and another one at New Delhi.

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2. Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture

between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a

reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2nd,

2001 to conduct General Insurance business (including Health Insurance

business) in India. The Company has an authorized and paid up capital of Rs

110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz,

AG, Germany.

3. ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited is a joint venture

between ICICI Bank Limited and the US-based $ 26 billion Fairfax

Financial Holdings Limited. ICICI Bank is India's second largest bank,

while Fairfax Financial Holdings is a diversified financial corporate engaged

in general insurance, reinsurance, insurance claims management and

investment management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings

Limited, is one of Canada's oldest property and casualty insurers. ICICI

19

Lombard General Insurance Company received regulatory approvals to

commence general insurance business in August 2001.

4. Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited (Chola-MS) is a

joint venture of the Murugappa Group & Mitsui Sumitomo. 

Chola-MS commenced operations in October 2002 and has issued more than

1.4 lakh policies in its first calendar year of operations. The company has a

pan-Indian presence with offices in Chennai, Hyderabad, Bangalore, Kochi,

Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh,

Kolkata and Vizag.

5. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company,

formed from the Tata Group and American International Group, Inc. (AIG).

Tata AIG combines the strength and integrity of the Tata Group with AIG's

international expertise and financial strength. The Tata Group holds 74 per

cent stake in the two insurance ventures while AIG holds the balance 26 per

cent stake.

Tata AIG General Insurance Company, which started its operations in India

on January 22, 2001, offers the complete range of insurance for automobile,

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home, personal accident, travel, energy, marine, property and casualty, as

well as several specialized financial lines.

6. Reliance General Insurance Company Limited.

7. IFFCO Tokio General Insurance Co. Ltd.

8. Export Credit Guarantee Corporation Ltd.

9. HDFC-Chubb General Insurance Co. Ltd.

Marketing of Insurance In India

Insurance is in a manner of speaking the last frontier in the financial sector to open.

It is also a sector, which leads to benefits across the full spectrum, from the

individual who now have wider choices, to the economy, which see increased

savings, to the infrastructure sector, which can look forward to long term funding

being available. In an under-insured economy, newer channels of distribution have

to be utilized to intensify the reach of insurance both in urban and rural markets.

This will create huge employment opportunities not only within insurance

companies but also as agents and consultants of insurance companies.

21

Marketing Mix Policies

Different companies can choose to position themselves differently and hence the

Marketing Mix is different. However, there are certain common characteristics that

one can cull out from the possible strategies that companies adopt.

Product:

The development of flexible products to suit individual requirements is what will

differentiate the winners from the also-rans. The key to success is in providing

insurance solutions, not standardized insurance products. The concept of

riders/optional benefits has already been a huge innovation brought about by the

new players, which has led to customization of products for individual needs.

However, companies may differentiate themselves on the basis of product

segments that they choose to focus on and excel in.

Place:

Different companies may however choose different channels and different

geographies to focus on. The channel options are - tied agency force, corporate

agents and brokers and this is an area where different companies will make

different choices. Many companies like Max New York Life are focusing on all

channels whereas companies like HDFC STANDARD Life are focusing on the

tied agency force only. Customer interface will be a key challenge for life

22

insurance companies and includes every that interaction that the customer has with

the company, such as sales, new business underwriting, policy servicing, premium

payments, claim processing and so on. Technology can play a crucial role in

delivering the highest standards of service set by the company and it will be

imperative for any serious player to excel in all of these.

Price:

Price is a relevant differentiator only in two segments - pure term insurance and in

pure annuities. Here too, service delivery and financial strength will need to be

present at a minimum acceptable level for price to be a relevant differentiator. In

case of savings oriented products, long-term returns generated are more relevant

than just the price of the product. A focus on generating good investment

performance and keeping a tight control on costs help in generating good long-

term maturity value for customers. Norms have been laid down on all of these by

IRDA and adhering to these while delivering good returns will be a challenge.

Promotion and Advertising:

The level of demand is latent and will have to be activated considerably. The

market needs to be developed. Greater awareness of insurance and the need to have

23

it as a protection tool rather than as a tax planning measure needs to be appreciated

by the Indian people. Various communication tools including advertising, direct

marketing and road shows contribute to all this and different companies take

different approaches on these.

Process:

Cashless settlement: One of the most defining and customer-friendly changes

that we’ve seen in recent years relates to the way claims settlements are made. The

advent of the third-party administrator (TPA) regime has facilitated the transition

to the hugely convenient era of cashless settlement of health and auto insurance

claims. TPAs are entities who process claims on behalf of insurers: the IRDA

licenses them after it is satisfied that they have the financial strength, the trained

manpower, the infrastructure and the skills to undertake this activity.

Likewise, with auto insurance, the TPA ties up with garages and authorized service

centers for cashless settlement of auto insurance claims.

Lower premiums: The spirit of competition and the broadening of the risk

experience of insurance companies have contributed to a fall in premiums over the

years. That’s because, other things being equal, an insurer who covers the lives just

of 10 people bears a higher risk than an insurer who covers the lives of, say, 100

people. Further, a broader base will provide greater efficiencies on costs such as

24

distribution, management and claims. A broad basing of the mortality experience,

therefore, gives insurers the elbowroom to compete by lowering premiums, and

that trend is expected to continue.

Premium payment flexibility: Insurers have imparted certain flexibility

to premium payment options in order to address this concern. For instance, one

now have the option to pay your premiums upfront, which is then carried forward

for the tenure of the policy. The yearly premiums are drawn from the initial corpus.

Insurers have also introduced the concept of ‘automatic cover maintenance’ to

protect your policy from lapsing owing to your omission to pay your premium on

time. Under this, in the event of your not paying the premium, the insurer dips into

your investment account to the extent of the premium. Of course, this comes with

an in-built drawback: your investment portion diminishes year on year to the extent

of the amount paid to cover your risk.

Physical Evidence:

This can play a significant role for marketing in the Indian scenario. Since Internet

users are comparatively lesser than countries such as US, the offline mode will be

preferred in India. Although the distribution model is largely agent-based,

25

wherever the customer is in contact with the company, this factor can play a

significant role in luring the customer.

People:

The most important factor that materializes sales and maintains customer

relationships on a long-term basis is this factor. No matter what distribution

strategy a company adopts, customer relationship has to be taken care of in order to

maintain the customer base on a long-term basis.

CHANNEL PARTNER OF

26

INTRODUCTION TO THE

COMPANY

INTRODUCTION TO THE COMPANY

Indiabulls is channel partner of Max New York life

in insurance vertical

27

Indiabulls-

Indiabulls Financial Services Limited was incorporated on January 10, 2000 as

M/s Orbis Infotech Private Limited at New Delhi under the Companies Act, 1956

with Registration No. 55 - 103183. The name of Company was changed to M/s.

Indiabulls Financial Services Private Limited on March 16, 2001 due to change in

the main objects of the Company from Infotech business to Investment &

Financial Services business. It became a Public Limited Company on February 27,

2004 and the name of Company was changed to M/s. Indiabulls Financial Services

Limited. And Now this company has achieved milestone by voted as

The Youngest Company of the year in ET500

Indiabulls Financial Services Ltd is a public company and listed on the National

Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and

London Stock Exchange. The market capitalization of Indiabulls is approx US $

800 million, and the consolidated net worth of the company is approx US $ 400

million. Indiabulls and its group companies have attracted US $ 300 million of

equity capital in Foreign Direct Investment (FDI) since March 2000.

Indiabulls ranks at 82nd position in the list of most valuable companies in India.

Indiabulls is promoted by three engineers from the Indian Institute of Technology

(IIT) Delhi. Foreign Institutional Investors (FIIs) and foreign funds hold over 60

percent shareholding of Indiabulls. Some of the large shareholders of Indiabulls

are the largest financial institutions of the world such as Fidelity Funds, Capital

International, Goldman Sachs, Merrill Lynch, Lloyd George and Farallon

Capital. There are approximately over 40,000 shareholders of the company.

Indiabulls Financial Services is a retail financial services company providing a

28

diverse array of financial products and services, through its nationwide network of

over 300 Indiabulls offices, and services over 2,50,000 clients spread across 110

cities in India. Indiabulls, along with its subsidiary companies, offer consumer

loans, brokerage and depository services, personal loans, home loans and other

financial products and services to the retail markets.

Indiabulls, which has a workforce of over 20,000 full time employees, reported

US $ 60 million in Profit Before Tax and US $ 45 million in Net Profit for the first

nine months of the current financial year.

Philosophy: -

Indiabulls has created a unique organization that is designed for you – the Smart

Investor –. it passionately believe in the Smart Investor who wants to make his

own educated investment choices and demands world class access to a full range of

services and products ranging from Equities to Insurance, combined with the

highest level of integrity, service and professionalism.

Indiabulls is a full service investment firm offering clients access to a tremendous

range of financial services from 135 locations across 95 cities. We have a strong

team of over 1000 Client Relationship Managers focussed on serving customers

unique needs. Our world class infrastructure, built with tens of crores of

investment, provides our clients with real-time service, multi-channel & 24/7

access to all information and products. As we've expanded and developed to serve

the needs of all kinds of investors, we've been guided by one underlying

philosophy: You come first.

29

We are proud to introduce to you Indiabulls Professional NetworkTM that offers

real-time prices, equity analysis, detailed data and news, intelligent analytics, and

electronic trading capabilities, right at your finger-tips. This powerful technology

is complemented by our knowledgeable and customer focussed Relationship

Managers who are available to help with your financial planning and investment

needs.

About Founders: -

The fast paced growth, diversification and consolidation of the

Group has been possible due to the vision and leadership of the co-founders of

Indiabulls.

Sameer Gehlaut is the Chairman, CEO and Whole Time Director of Indiabulls.

Sameer is an engineer from IIT, Delhi (1995) and has worked internationally with

Halliburton in its international services business in 1995. He has utilized his

experience with the international best practices and professional work culture at

Halliburton to lead Indiabulls successfully.

Rajiv Rattan is the President, CFO and Whole Time Director of Indiabulls. Rajiv

is an engineer from IIT, Delhi (1994) and has rich experience in the oil industry,

having worked extensively across the globe in highly responsible assignments with

Schlumberger. Rajiv has managed remote exploration projects providing

evaluation services for different clients in India as well as abroad.

Saurabh Mittal is a Director at Indiabulls. Declared the best graduating student

in IIT, Delhi in (1995), Saurabh was also one of the engineers selected by

Schlumberger to work for its international services business in 1995 and gained

30

experience of working in various global locations. He graduated as a Baker Scholar

with an MBA from the Harvard Business School. He has also developed indepth

understanding of international financial markets.

FLAGSHIP IN OTHER SERVICES

31

Insurance: -

“When you hear the word Insurance, the words boring and mundane

probably enter your mind.”

When it comes to business, you are right up there. Taking all those split second

decisions, avoiding pitfalls and making sure your money works hard for you.

But don't you think the business of life requires just as much attention and

probably even more. That's we are proud to bring to you an offer exclusively for

you. As a part of our endeavor to provide you with world-class products and

services, Indiabulls gives you the opportunity to avail of the whole range of Birla

32

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Indiabulls

Sunlife Insurance Products through the Indiabulls network of 1000 Relationship

Managers over 135 locations nationwide. Which means you can take care of life.

Loans: -

Personal Loan: -

“ No questions. Only Loans.”

No matter where you work, or how much you earn, we offer you the shortest route

to a loan with minimum paperwork and procedures. With Indiabulls Fast Loans,

you can avail of easy loans for a minimum of Rs.10,000 to a maximum amount of

Rs.1,00,0000.

Flexible loan tenor of up to 4 years.

Loans available from a minimum of Rs.10,000 up to a maximum of

Rs.1,00,0000.

Easy monthly repayment through equated monthly installments (EMI).

Easy documentation and quick disbursal.

Home Loan : -

Indiabulls has commenced lending of Mortgage Loans to

prospective customers under the flagship of Indiabulls Housing Finance

Ltd. Here we enable home-seekers to access finance to buy, build, rent or

improve their homes. We also provide plot loans, Loan against Residential,

Commercial and Rental Property, thereby enabling the borrower to leverage

33

the property owned to fund any legitimate needs be it Business Expansion,

Child's Education, Childs’ marriage or for holiday abroad.

Real Estate: -

Through its group companies, Indiabulls is also engaged in real estate

development. The group companies recently made winning bids for the

Jupiter and Elphinstone Mills in Mumbai in an auction carried out by the

National Textiles Corporation (NTC), a Government of India undertaking.

The company will now develop modern commercial complexes in the heart

of Mumbai - the financial capital of India. Indiabulls' foreign partner,

Farallon Capital made the first real estate related FDI investment in

Indiabulls Properties Pvt. Ltd to buy Jupiter Mills immediately after the

new FDI guidelines were introduced by the Government of India for real

estate development.

Board Of Directors: -

S NO. NAME DESIGNATION

1. Mr. Sameer Gahlaut Chairman and whole time Director

2. Mr. Shamsher Singh Director

3. Mr. Aishwariya Katoch Director

4. Mr. Kartar Singh Gulia Director

5. Mr. Gagan Banga Director

6. Mr. Saurabh K Mittal Director

7. Mr. Karan Singh Director

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8. Mr. Rajeev Rattan Whole Time Director

MAX NEW YORK LIFE INSURANCE

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

Limited, one of India's leading multi-business corporations and New York Life

International, the international arm of New York Life, a Fortune 100 company. 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.

Incorporated in 2000, Max New York Life (MNYL) started

commercial operation in 2001. In line with its values of financial responsibility,

Max New York Life has adopted prudent financial practices to ensure safety of

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policyholder's funds. The Company's paid up capital as on 30th April, 2009 is Rs

1782 crore. MYNL shares a market share of 5.9% in the life insurance sector.

MNYL has multi-channel distribution spread across the country. Agency

distribution is the primary channel complemented by partnership distribution, banc

assurance, alliance marketing and dedicated distribution for emerging markets. The

Company places a lot of emphasis on its selection process for agent advisors,

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

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

on quality of training. The company currently has around 92,760 agent advisors at

710 offices across 385 cities. The company also has 36 referral tie-ups with banks,

24 partnership distribution and alliance marketing relationships each. Max New

York Life has put in place a unique hub and spoke model of distribution to deepen

our rural penetration. The company has 133 offices dedicated to rural areas.

MNYL offers a suite of flexible products. It now has 43 life insurance products and

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

choose the policy that best fits their need. The company currently has more than

13,923 employees.

36

HOW NEW YORK LIFE ENTERED THE INDIAN MARKET:-

37

New York Life International, INC., a Fortune 100 company, decided to select

JOINT VENTURE as a medium to enter into the market of India. It has chosen

MAX INDIA LTD., one of the India’s leading multi-business corporations.

Through its wide network of highly competent wide network of highly competent

agent advisors and flexible product solutions, MYNL is creating a partnership for

life with its customers in INDIA to meet their life stage needs..

VISION

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

Strong Corporate Governance Model.

MISSION

Become one of the top quartile life insurance companies in India.  Be a national player. Be the brand of first choice .Be the employer of choice. Become principal of choice for agents.

VALUES

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Knowledge:

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

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

India's life insurance specialist. MNYL believes that for knowledge to be of value

it must be focused, current, tested and shared.

Caring:

MNYL 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 MNYL

experience. The company ensures that everyone who represents the brand carries a

promise: we care — in word as well as deed.

Excellence:

Excellence at MNYL implies the ability to perform at a consistently high level.

Focused on the value of continuous improvement in people, processes and the

39

organization, the company strives for the highest standards of quality in every

aspect of its business.

AWARDS & ACHEIVEMENTS

MNYL Insurance felicitated with the ‘Golden Peacock Innovation Award’

for the year 2008 for Excellence in innovation in conceptualizing and

marketing Max Vijay.

MNYL is the first life insurance company in India to be awarded the IS0

9001:2000 certification.

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MNYL was among the top 25 companies to work with in India, according to

2003 Business World magazine, "Great Workplaces In India", MNYL 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.

Been among top five most respected private life insurance companies in

India according to a 2004 and 2006 Business World survey. 

MNYL Insurance has emerged as one of the best employer in the recently

announced Business Today-Mercer-TNS Survey of 'The Best Companies to

Work For in India'. The company was ranked 7th in the survey and the

best life insurance company to work for in India.

Awarded the Gallup Great Work Place Award 2009.

CII – Exim Bank Commendation Certificate for Business Excellence – 2008 & 2009

Received ‘Best Six Sigma Project’ award at 6th CII National Six Sigma

conventions – 2009.

Outlook Money survey ranked MNYL No.1 in Slow, Medium and Quick fund categories.

Among the top five most respected insurance companies in India as per Businessworld 2004 & 2006 survey.

Won Indo-American Corporate Excellence Award for Best Indo-US company in Financial Services Category in 2006.

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Received ‘Best Six Sigma Project’ award at Sakal Six Sigma Excellence Awards – 2006.

Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by Asia Insurance Review.

Received the Amity Corporate Excellence Award – 2007.

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

Max New York Life bags the Asia Insurance Industry ‘Innovation of the Year’ Award 2009.

SOME OF THE INDUSTRY FIRST

First company to provide Freelook period of 15 days to the customer. This was later made mandatory by the regulator.

First company to start toll free line for agent services.

First and the only life insurance company in India to implement Lean methodology of service excellence in service industry.

First life insurance company in India to provide various services to the agents and customers over phone.

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

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First life insurance company in India to receive ISO 9001:2000 certification.

First life insurance company to be awarded CII-EXIM Bank commendation certificate for “Strong Commitment to Excel”.

PROJECT OBJECTIVE43

PROJECT- OBJECTIVEManagement as a profession can’t be taught merely in the four walls

of classrooms. Only theoretical knowledge is not sufficient to build

competitive managers. Practical knowledge of the business

environment is equally important. In today business world, insurance

sector is running towards its booming stage. This industry still has

many things to come up to, so many changes and opportunities will

be given by insurance industry. So I choose insurance industry for

my internship training. The main objective of the internship training

was-:

To gain insurance knowledge of this insurance industry.

To generate an awareness among the customers for Max New York Life

insurance Connections.

To contact 10 people daily, generate lead through them and convince them

to purchase the company product and make the adviser of company.

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Calling the customers and taking appointment from them to enhance our

communication skills.

To enhance our selling skills and to get real practical exposure of the outside

world.

To acquire social skills by being in constant interaction with the

professionals of the organization, other corporate and customers.

This report is shows insurance sector & how insurance is most important

part of life. And understand insurance definitions, different providers of

life insurance and comparisons. It also shows Max New York Life

Insurance’s Products.

As a Trainee Max New York Life Insurance give me very practical

knowledge about life insurance and how to working in organization,

How manage work, how to maintain relations with top level

management as well as collegaus and bottom level management. So,

this experience will helpful in future. I am pleased by taken training at

India’s one of the best insurance company.

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BODY OF THE

REPORT

46

Indiabulls is one of fastest growing company in India. They are the channel partner of Max New York Life in Insurance vertical.

TERMINOLOGY

• INSURED The policyholder - the person(s) protected in case of a loss or claim.

• INSURER The insurance company.

• PREMIUM The amount of money an insurance company charges for insurance coverage

• AGENT A licensed person or organization authorized to sell insurance by or on

behalf of an insurance company.

• Fund Value –

• Total value of units that you hold in the fund.

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• Switch of Funds

Switch is a facility available only in Unit Linked policies allowing the

Policyholder to change the investment pattern by moving from one Investment

Fund/s to another among the Investment Funds offered under the underlying

product of the Company.

• Assignment

This term refers to the process of legal transference, by which the policyholder

can pass on his interest to another person. An assignment can be made by an endorsement on the policy document or as a separate deed. Assignment can be of two types

( 1). Conditional assignment, (2). Absolute Assignment

SWOT Analysis

STRENTHS

Strong new business growth exceeding 40% you

Market increase in agency force private players .

Successful ban assurance contribution 25% of private market .

Strong growth of unit linked market at the mass affluent end .

Healthy regulatory environment .

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WEAKNESSES Life insurance penetration at 3% still largely

uninsured or underinsured population .

Private players have limited focus on mass market and lower income section , and an tier 3, semi urban and rural market.

Market growth largely investment driven, protection market still under developed.

High cost operating models unable to yield profitability in low ticker high volume business.

OPPORTUNITIES ( RETAILING )

Expand beyond proprietary brance outlets through alarge number of partner

points of presence.

Estabtish extensive distribution spreading to tier 3, semi urban and rural

location with access to the large mass and low income population.

Develop the pure market through large volume lower ticket products.

Sustainable business supported through low cost operations and service

model,

THREATS

Insurance sector is the fastest growing sector where there is lots of scope for the companies but competitors is increasing in this market.

Competitors like Birla sun life, Reliance life insurance, Aviva etc.

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TARGET/TASKS

The target is to sell 1 policy in a two week and recruit 1 advisor in a week, or 2 policy and 4 advisors in a Month, or 10 policy and 10 advisors in two Months. For this I have to meet 10 to 15 customers in a day in my own level or effort and convince them to Purchases the insurance Policy and find out the prospective clients for the company.

The Monthly target assigned by the company is as follows:

a. To sell the policy.

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b. Recruit the Relationship Manager.

          MONTH POLICIES to be

soldRMs’ to recruit

Dec. 2009 5Policies 5 RMs’

Jan. 2010 5 Policies 5 RMs’

Total 10 Policies 10 RMs’

STRATEGY

Strategy is about choice, which affects outcomes. Strategies play an important

role in completion of goals. They are used to make the problem easier to

understand and solve. They guide us through the path which is both planned

and simplified. These guidelines help us to work out our goals in a prefect

manner and help us not to deviate from them. To achieve above mentioned

target successfully, it is very necessary to develop a roadmap of the

destination. Hence, my plan to achieve the target set by my company guide is

as follows:-

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Product Training:

Any person, no matter how successful he is, cannot perform well if

he/she is not aware about the products the company is offering. A well

presented deal can be cancelled at the last moment if the customer is

not satisfied by the product features or if the person cannot handle any

kind of objections raised by the customers. To overcome this problem

we were provided with a 1 week training session at the company. our

company guide provided with every information about the products the

company was offering. This helped us to have insight knowledge about

the products and it features which in turn helped us to convince the

customers to buy the product.

Field Work :

On –Field Training:-

After completing the training sessions, we were asked to apply this

knowledge on the practical field to convince the customers. This was the

most difficult part. As of now we were in our secured world and were free to

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alter things as per our wishes. But now we were placed in the true world were

we have to struggle hard to make things work according to our needs.

Field Activity-

Meeting people at offices and colleges. Meeting people at their doorsteps. Making a database of prospective investors.

LEARNING IN THE EXECUTIVE TRAINING

knowledge of Insurance sector:- I come to know about the products and working

of the insurance sector.

Understanding of the corporate culture:- Executive Training in Bharti axa life

inusrance provides me an insight about the corporate world and how to behave

with superiors and peers.

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Customer Handling and Public Relation:- -It helps me to understand about

market and kind of strategies needed to be adopted to convince a customer.

Learn selling techniques:- A good selling technique is a base of any successful

deal, in this training I have learnt how to change my approach according to the

customer’s need and wants.

Team Working Skills:- In this executive training I learnt to work efficiently in a

team. Every week I had to work under a new team leader to give maximum output

to the company.

Stress Management:- In this executive training I learnt how to handle the pressure

of chasing a target within given time frame and other work related stress.

NOMENCLATURE

Free look period: A free look period gives the client an option to review

the terms and conditions of the policy within 15 days from the date of receipt of

the policy document. Where he disagrees with the terms and conditions stated in

the policy, he has the option to return the policy, stating the reasons for objection.

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IRDA: The acronym for the Insurance Regulatory and Development Authority of

India, it is the apex body overseeing the insurance business in India. It protects the

interests of the policyholders, regulates, promotes and ensures orderly growth of

the insurance industry and for matters connected therewith.

Loyalty additions: Additional benefits (other than guaranteed additions/bonus)

paid to policyholders on maturity of certain investment-based insurance plans for

staying on through its term.

Lock-in period: The period of time for which investments made in an investment

option cannot be withdrawn.

Net asset value (NAV): The simplest measure of how a scheme is performing, it

tells how much each unit of it is worth at any point in time. A scheme’s NAV is its

net assets (the market value of the financial securities it owns minus whatever it

owes) divided by the number of units it has issued.

Policy: The legal document issued by an insurance company to a policyholder that

states the terms and conditions of an insurance contract.

Premium: The amount paid by the insured to the insurer to buy cover.

Riders: Additional covers that can be added to a life policy, for a cost.

Sum assured: The amount of cover taken under a life insurance policy, it is the

minimum amount that will be paid on death of the policyholder during the policy

term.

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Surrender value: The amount payable by the insurer to the owner of an

investment-based plan in case he opts to terminate the policy after three years (the

mandatory lock-in period) but before its maturity date. The surrender value will be

the premium paid till date minus surrender charges and any outstanding loans due.

CUSTOMER EXPECTATIONS:-

In the today era, Customer expectations are rising. Customers, faced with a

dizzying array of insurance products expect customized offerings, value, ease of

access, and personalization from insurers. Today, customers are expecting

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individual attention, responsiveness, customization and access. At the same time,

they don’t want to pay a premium for these services. High customer expectations

and lower exit barriers could lead to increased customer attrition.

To meet the customer expectations is a daunting task for today’s insurance

companies. If the customer’s expectations are met, then only he will be satisfied

and continue your services.

The company tries to utilize every moment of truth and tries to satisfy him at

maximum possible touch points.

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CUSTOMER PERCEIVED VALUE

Total Customer Benefit

Total Customer Cost

Product Benefit Monetary Cost

Time CostServices Benefit

Energy CostPersonnel Benefit

Psychological Cost

Image Benefit

CUSTOMER SATISFACTION:

Customer satisfaction refers to the extent to which customers are

happy with the products and services provided by a business. Gaining high

levels of customer satisfaction is very important to a business because satisfied

customers are most likely to be loyal and to make repeated orders and to use a

wide range of services offered by a business. Since sales are the most important

goal of any commercial enterprise, it becomes necessary to satisfy customers.

For customer satisfaction it is necessary to establish and maintain certain

important characteristics like:

a. Quality

b. Fair prices

c. Good customer handling skills

d. Efficient delivery

e. Serious consideration of consumer complaints.

Satisfaction is the feeling of pleasure or disappointment attained

from comparing a products perceived performance (outcome) in relation to his

or her expectations. If the performance falls short of expectations, the customer

is dissatisfied. If the performance matches the expectations, the customer is

satisfied. If the performance exceeds expectations, the customer is highly

satisfied or delighted.

MNYL is an ISO 9001-2001 Certified Company. Some of the benefits it

provides to its customers are as follows:

MNYL issues Policies to its customers in quick time and with maximum

accuracy.

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Fast settlement of Claims and demonstrate reliability and trust amongst

our customers

Effective touch points for the customers who are regularly working towards

resolving customers’ queries and needs.

MNYL is constantly designing products keeping in mind long term customer

benefits and responsibly fulfill the regulatory requirements.

PRODUCTS OF THE MAX NEW YORK LIFE INSURANCE

Products before new IRDA guidelines:-

SMART STEPS PLUS

LIFE PARTNER PLUS

UNIT BUILDER

CAPITAL BUILDER

Products after new IRDA guidelines (w.e.f. 1 Jan. 2010):-

SHIKSHA PLUS

FORTUNE BUILDER PLUS

UNIT BUILDER PLUS

SECURE DREAMS

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CUSTOMER DEVELOPMENT PROCESS

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Potentials

Prospects

First time customers

Repeat customers

Clients

Members

Advocates

Partners

Disqualified Prospects

Inactive or Ex-

CUSTOMER RELATIONSHIP MANAGEMENT:

CUSTOMER RELATIONSHIP MANAGEMENT is the process of carefully

managing detailed information about individual customers and all customers touch

points to maximize customer loyalty. A customer touch point is any occasion on

which a customer encounters the brand and product-from actual experience to

personal or mass communications to casual observation.

Max New York Life Insurance Company has also undertaken various steps to

strengthen its customer relationship management.

Max New York Life Insurance has announced the introduction of INTERACTIVE

VOICE RESPONSE (IVR) service in 10 different languages. The leap is in a bid to

enhance and improve max New York Life’s customer and distributor experience

by availing the customer service in their own language.

Sanjeev Mago, executive vice president, Customer Operations and Service

Delivery, Max New York Life Insurance, said, "This initiative is yet another step

towards improving customer satisfaction by enhancing their ease of resolving

pre and post policy issues. At Max New York Life, we lay emphasis in

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interacting with our customers and distributors in their choice of language."

In order to improve its customer relationship management, MNYL has

maintained internal records and marketing intelligence systems to maintain a

database of profile and contact information of the customers.

Databases, Data Warehousing and Data Mining

MNYL Insurance has organized their information:-

Customer databases Product databases Salesperson databases The most important of the above three is the customer database in

which the profile and the contact information of the customer is saved. The

customer database may even include the demographics and psychographics

(activities, interests and opinions) according to which a customized policy is

formulated for his/her needs.

“Carpet Bombing” is also being done to target the random customers

in order to spread awareness and market the policies at a large scale.

MYNL conducted a study in association with AC Nielsen, which

revealed that the customers want return and protection in an insurance policy.

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Based on this study, the company launched ‘Smart Express’ for a smooth ride

through the volatile markets.

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TRADITIONAL ORGANIZATION CHART

This is the system when managers believe the customer as the company’s

only true “Profit Centre”. It was the traditional approach and off late it was

changed to the modern approach wherein customers are given prime

importance.

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Top Management

Middle management

Frontline people

CUSTOMERS

MAX NEW YORK LIFE FOLLOWED MODERN

CUSTOMER-ORIENTED ORGANIZATION CHART

The Max New York Life culture is about:

• The customer comes first

• Do it right the first time

• Bias for result oriented action

• Financial strength and discipline

• Clarity of purpose

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CUTOMERS

Frontline people

Middle management

Top management

• International quality standards

• Inclusive meritocracy

• Learning opportunities

• Fun at work

• Commitment to published value system

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DIFFERENTIATION STRATEGIES:

Product Differentiation:

MNYL decided to straddle more on life benefits than death benefits. On the

basis of a study conducted on the category & competition they realized that the

competitors were focusing on pure protection & family protection as a benefit. So

MNYL decided to focus on the aspirational proposition – thereby differentiating

from their competitors.

Services Differentiation:

With the launch of ‘Health Family Floater Plan’ MNYL became the first and the

only company to offer benefits for congenital disorder. It also introduces some

other significant firsts and bests to the industry:

Relevant and segmented benefit for parents

Yearly increases on surgical benefits, even after claims

Guaranteed renewability till the age of 75 years

Highest number of Hospitalization Days and Daily Cash limits

Highest number of critical illness covered

Health insurance coverage for the longest duration - 10 years

No upper limit on the family size.

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Personnel differentiation:

The companies differentiate themselves by having better-trained

employees. MNYL provides 150 hours of training to their employees against the

industry average of 100 hours. The result is they have some of the best Agent

Advisors in the business. Backed by the best training and infrastructure, their

expert Agent Advisor will spend time evaluating the customers’ needs rather than

just selling. They are professionals who will thoroughly understand the customers’

needs before recommending the policy tailored to meet them. They offer the best

products with Flexibility as their cornerstone.

Re-training:

Following the stock market meltdown in 2009, a large number of MNYL

financial advisors had stopped visiting their customers, since they did not know

how to deal with their queries about the fall in the value of investment. At this

juncture, MNYL felt that the financial advisors needed a fresh perspective &

communication skills to address the needs of their customers. Thus they re-trained

& certified around 85,000 odd financial advisors.

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Today, India sits as the cusp of greatness both in its potential and in its achievements. Some

argue that it has already crossed that threshold and is destined for greatness no matter what.

MNYL believes that there are examples of this greatness all around and is proud to chronicle it

for our collective inspiration.

MNYL’s philosophy of ‘Karo Zyaada ka Iraada’ is a salute to all those who happily challenge

status quo and push the boundaries in the search and in the creation of a bigger, brighter

tomorrow.

The dream of a larger good is no longer confined to a limited few. MNYL intends to awaken

today’s India to re-look at itself, its realities and the possibilities and new ways to progress

through its new business philosophy. ‘Karo Zyaada ka Iraada’ appears at a time when people are

happier if we could articulate and then live our ambitions.

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POSITIONING:-

In order to achieve superior brand positioning, any marketer has to address three

basic questions, which are:

Who is the target group; what is the value proposition to them; is the

communication effective or not.

Positive answers to the above questions indicate that the company’s brand

positioning is successful and that the customers are receptive 2 the product.

The target groups for MNYL

1. People in the age group of 30 – 45 years

2. People in the age group 20 – 50 years

3. People in the age group 18 – 70 years

4. Health conscious people

5. Large families

6. Rural and semi urban masses

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Value propositions to the target groups (in the same order followed for target

groups)

On the basis of age demographics several children plans were there to target

the segment of people who lie within 30-45 years of age and for the

education of their children. This target groups also includes married couples

who are interested in securing the future of their children. Children's

Endowment to 18 (Par) Plan, which provides an option to buy a permanent

life insurance policy without medical underwriting. With the Stepping

Stones™ (Par) Plan, the customers are entitled to make withdrawals for any

unplanned expenses.

Various plans like 20 year endowment plan, whole life participating plan etc.

and various life plans have been designed exclusively for this target group.

For this target group, pension plans have been designed to facilitate the

customers to derive benefits post retirement.

Various plans like Life maker premium plan, Life line safety net etc. have

been designed to help customers derive benefits through health insurance

policies.

MNYL's Five Year Renewable and Convertible Term Insurance (Non-

Participating) is particularly useful as a short-term protection plan. An

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

policy to a regular policy during the tenure of the policy.

MNYL has adopted an all persuasive brand positioning. The new television

commercial (TVC) highlights the fact that today it is a general human tendency to

desire and aim for more as against the old mind set of being content with whatever

one has. The present trend is to dream bigger and a brand should partner that

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dream. MYNL believes that it is the age of consumerism and hence they its better

to partner with their customers in their ambitions. The creative strategy captures

that spirit. Through the TV commercial they have tried to highlight basic human

tendency of 'Desire for More'.

In addition to the TVC, MNYL have gone for the whole nine yards in terms of its

marketing activities. As a part of its online promotions, MNYL has designed a

game in the form of question and answer to not just engage better with the

customers but also add to its database. The company had also advertised on

websites.

The company had promoted itself through malls, the Delhi Metro, traffic police

stands, Mumbai railway stations and television programs such Big Boss, and Zee

TV’s Sa Re Ga Ma and also targeted the news channels.

Nearly, 60 per cent of the marketing budget was spent on mass media and the

rest 40 per cent on below-the-line (BTL) activities.

Media mix:

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MNYL had shifted its strategy from being a lot on 9 pm English

news channels to mainstream popular family programmes. They have

done a lot of digital advertising as well. They have concentrated on TV

by choice as part of their strategy.

ILLUSTRATIONS AND

ANNEXURES

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DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES

RESPONSE NO. OF RESPONDENTS SHARE (%)

Rigid plans 67 67%

Non user friendly 29 29%

Unsatisfactory services 26 26%

Non Aggressive 35 35%

Satisfactory 24 24%

Good 10 10%

Very good 0 0%

Rigid plans 35%

Non user friendly

15%

Unsatis-factory

services 14%

Non Aggressive 18%

Satisfactory 13%

Good 5%

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QUESTIONNAIRE

1. ARE YOU EMPLOYED?YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM)

a) MAX NEW YORK LIFE

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

g) ANY OTHER ________( Specify)

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5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick)

a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______

(Specify)

6. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER? (RANK THEM)

a) COVER FUTURE UNCERTAINITY

b) TAX DEDUCTIONS

c) FUTURE INVESTMENT

d) ANY OTHER _________ (Specify)

7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? (RANK THEM)

a) LOW PREMIUM

b) LARGER RISK COVERANCE

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c) MONEY BACK GUARNTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

f) ANY OTHER _________ (Specify)

8. YOUR MONTHLY INCOME?

a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

9. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S SCENARIO IS NOT ESSENTIAL?

_____________________________________________________

10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) TOOL TO PROTECT FUTURE E

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11. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?

a) CUSTOMER APPROCHED INSURANCE COs

b) INSURANCE COs APPROCHED CUSTOMER

12. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

13. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

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14 DO YOU PAY TAXES?

YES NO

15. WHERE HAVE YOU INVESTED FOR TAX SAVING?

(RANK THEM)

a) LIC

b) NSC

c) BONDS

d) PPF

e) PF

f) EPF

16.WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM)

a) FIXED ASSETS

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b) BANK DEPOSITS

c) JEWELLERY

d) SECURITIES, i.e. Bonds, MFs

e) SHARES

f) INSURANCE

17. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS

b) SECURITY

c) TAX BENIFITS

18. WHAT’S THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs

b) AFTER 35 Yrs

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c) AFTER 45 Yrs

d) ANYTIME

19.HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS

b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON-AGGRESSIVE

e) SATISFACTORY

f) GOOD

g) VERY GOOD

20. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs?

(RANK THEM)

a) A TRUSTED NAME

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b) FRIENDLY SERVICE & RESPONSIVENESS

c) GOOD PLANS

d) ACCESSIBILITY

21. ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING

22. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS?

a) YES

b) NO

c) UNCERTAIN

THANK YOU!

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NAME:_________________________

ADDRESS:______________________

______________________________

OCCUPATION:___________________

CONTACT NO.____________________

CONCLUSION

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

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

gathered during the market was the immense awareness and knowledge among

people about various companies and their insurance products. People are beginning

to look beyond LIC for their insurance needs and are willing to trust private

players with their hard earned money.

People in general have been impressioned by the marketing and advertising

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

Television ad campaigns over the years is beginning to have it’s impact now.

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

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

respondents have opted for insurance for such purposes and it shows how

insurance companies have been successful to attract public money in recent times.

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

requires improvement. But therein lies the opportunity for a relative new comer

like Max New York Life Insurance Company Ltd . LIC has never been known for

prompt service or customer oriented methods and Max New York Life can build

on these factors.

BIBLIOGRAPHY

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Books & Magazines -

Marketing Management by Philip Kotler

Money Outlook

Insurance Watch

Brochures of Max New York Life

Website Reffered-

www.maxnewyorklife.com

www.indiabulls.com

www.google.com

www.bimaonline.com

www.irda.com

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THANK YOU!

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