Project on Max Life Insuranse

AAPROJECT REPORTPROJECT REPORT

ONONMAX LIFE INSURANCSMAX LIFE INSURANCS

FOR THE PARTIAL FULLFILLMENT OF BACHELOR OF BUISNESSADMINISTRATION

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

SUBMITTED BY: VIPUL

BBA (Gen)

SUBMITTED TO: MR AMIT GUPTA

COURSE CORDINATOR OF BBA (Gen)

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIESSECTOR 22, ROHINI NEW DELHI

AFFILATED TO GURU GOBIND SINGH INDRPRASTHA UNIVERSITY

ACKNOWLEDGEMENTACKNOWLEDGEMENT

I here with take the opportunity to express my profound sense of gratitude and reverence to all those who have helped and encouraged me towards the successful completion of the project .It’s been a great experience working on MAX Life insurance .It give me complete insight about how an organization not only survives in cutthroat completion but also maintain a killer instinct in the competitive world.

I would like to thank my project guider MR. AMIT GUPTA for his immense guidance .A valuable help and provided me the opportunity to complete the project under his guidance

I would like to thanks all the faculty members of MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES for guiding me and supporting me in the completion of this project from time to time

Last but not least my greatest gratitude to the almighty and my parents, without their support this dream would have remained dream

Name of the student VIPUL

1

CERTIFICATIONCERTIFICATION

This is to certify that VIPUL study in our institute MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES was allotted the project on “MAX NEW YORK LIFE INSURANCE” in India by Guru Gobind Singh Inderprastha University has successfully completed it under the guidance of Mr. AMIT GUPTA.

AMIT GUPTA

2

DECLARATIONDECLARATION

I here by declare that the project work entitled “ MAX NEW YORK LIFE INSURANCE” is an authentic work carried out by me under the guidance of Mr. AMIT GUPTA (project coordinator) for a practical fulfillment of the degree of BBA(Gen) and this has not been submitted anywhere else for the award of any degree

Name of the studentVIPUL

IndexIndexCHAPTER

NO.Particulars Page

Number

3

1. Overview 1

2. Acknowledgement 2

3. Certificate & Decleration 3-4

4. Introduction About Company 6-9

5. Information About Products

Individual Insurance Group Policy Saving Policy Retirement Policy Children Policy

10-36

6. Research Methodology 37

7. Data Obtained 38-43

8. Analysis Of Data Points In Favour Points In Against

44-45

9. Conclusion 46

10.Bibliography 47

Introduction

Company

4

Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune 100 company and Max India Limited, one of India's leading multi-business corporations. The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted life insurance specialist through a quality approach to business.

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

Max New York Life was among the top 25 companies to work with in India, according to 2003 Business World magazine, "Great Workplaces In India", Max New York Life was ranked at the 20th position. This survey is the local version of the "Great Places To Work" survey carried out every year in 22 countries.

It is among top five most respected private life insurance companies in India according to a 2004 Business World survey.

Financial Strength

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 IRDA.

Type of Products Offered

Max New York Life offers a suite of flexible products. It now has 22 life insurance products and 8 riders that can be customised to over 400 combinations enabling customers to choose the policy that best fits their need. The basic categories are:

Distribution System

5

Max New York Life has identified individual agents as its primary channel of distribution. The Company places a lot of emphasis on its selection process, which comprises four stages - screening, psychometric test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal control on quality of training.

Max New York Life invests significantly in its training programme and each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace. Training is a continuous process for agents at Max New York Life and ensures development of skills and knowledge through a structured programme spread over 500 hours in two years. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and the agents have the highest productivity among private life insurers.

201 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2005. MDRT is an exclusive congregation of the world’s 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:

franchisee model Rural Business Direct sales force involving group insurance Telemarketing Opportunities Bancassurance Corporate Alliances.

With 201 agents becoming members of the MDRT in 2005 , Max New York Life has moved up in the Top 50 MDRT global list.

6

Vision

To become the most admired life insurance company in India.

Values This vision to become India's most admired life insurance company will be realized through its unique set of values, which are as follows:

Knowledge Knowledge leads to expertise; and MNYL expertise is in helping people protect themselves. Perfectly combining global expertise with local knowledge, it is 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 MNYL brand champion.

Honesty Honesty is the heart of the life insurance business. It is all about trust. Transparency, integrity and dependability form the cornerstones of the Max New York Life experience. The company ensures that everyone who represents the brand carries a promise : we care — in word as well as deed.

Excellence Excellence at Max New York Life implies the ability to perform at a consistently high level. Focused on the value of continuous improvement in people, processes and the organization, the company strives for the highest standards of quality in every aspect of its business.

7

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

8

Products offered

Individual Insurance

Whole Life Participating Policy

Whole Life Participating Policy provides 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 PUAs (explained below) or taking a loan. In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Sum Assured plus accrued bonusesOn Maturity (attaining age 100): Sum Assured plus accrued bonusesBonus: From 3rd policy year, we will declare bonuses every yearTax benefits:You are entitled to the following tax benefits under Income Tax Act 1961

Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.

Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,000/- every year.

Your claim amounts (from death, through surrenders or on maturity) are eligible for tax exemption u/s 10(10D).

We offer you the flexibility to enhance the value of your policy by using the following riders/options:

1. Option to Participate in Progressive Bonuses: Allows you to top up your premiums to purchase additional Sum Assured in your existing policy. It also generates further bonuses.

2. Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the ten diseases covered e.g. Heart Attack, Cancer, etc.

3. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case of death or disability caused by an accident.

4. Term / Term R&C Riders: Offers additional Sum Assured to match your changing needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your life.

5. Waiver of Premium (WOP) / Payor Riders: Waives your future premiums in case you suffer total disability. The payor rider waives future premiums on your child’s policy in case you suffer total disability

6. Guaranteed Insurability Option (GIO) Rider: Allows you to buy guaranteed additonal insurance at seven different stages in your life.

Unique features in this policy:

9

1. Cash Bonuses: You can use your bonuses in the following ways:

Withdraw in cash: bonus will be paid to you by cheque. Pay your premiums: bonus will be used to pay the next premium. Increase your Sum Assured: bonus will be used to buy additional layers of

insurance cover in the existing policy by buying Paid Up Additions (PUA).

Purchase term insurance: bonus will be used to purchase additional coverage valid for one year.

2. Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs. 5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that can lead to death in 6 months; you can use this money for your treatment. The balance of the sum assured and the bonuses will be payable to your family on the occurrence of the Insured Event. 3. Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse and we will utilize your cash value to buy you insurance coverage in one of the following ways:

Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.

Extended Term Insurance: The same Sum Assured for part of the remaining term of your policy.

In case you do not want either of the above, you can choose to take the cash value by cheque.

Life Partner Plus

10

Life Partner PlusTM Plan offers you powerful triple benefits of –

Money if you live i.e. maturity benefit at age 75 Money if you don't i.e. a Life Insurance coverage till age 75

Money Backs i.e. a part of the Sum Assured at regular intervals to take care of your periodic foreseen needs.

KEY BENEFITS

1. On death of life insured: Initial Sum Assured Plus Sum Assured of Paid Up Additions through bonuses

2. On survival: Money backs @ 7.5% of the Initial Sum Assured will be paid on each policy anniversary from age 61 to 75.

3. On maturity: 100% of Sum Assured with Sum Assured of Paid Up Additions, if any.

4. On Surrender of Policy: Surrender value.5. Limited Premium Payment term: You can choose to pay the premiums over 4

terms i.e. 3 years, 7 years, 10 years or 20 years. 6. Bonus: From 3rd policy year, we will declare bonuses every year. 7. Tax benefits:

You are entitled to the following tax benefits under Income Tax Act 1961: 1. Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year. 2. Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,000/- every year. 3. Your claim amounts (from death, on maturity, or Money Backs or through surrenders) are eligible for tax exemption u/s 10(10D).

Customize your policy to meet your specific needs:





4. Waiver of Premium (WOP) / Pay or Riders: Waives your future premiums in case you suffer total disability. The pay or rider waives future premiums on your child’s policy in case you suffer total disability.

Unique features in this policy

11

Cash Bonuses: You can use your bonuses in the following ways:

1. Withdraw in cash: bonus will be paid to you by cheque. 2. Pay your premiums: bonus will be used to pay the next premium. 3. Increase your Sum Assured: bonus will be used to buy additional layers of

insurance cover in the existing policy by buying Paid Up Additions (PUA).

Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs. 5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that can lead to death in 6 months; you can use this money for your treatment. The balance of the sum assured and the bonuses will be payable to your family on the occurrence of the Insured Event.

Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse and we will utilize your cash value to buy you insurance coverage in one of the following ways:



Life Protector™ Plus

12

Life Protector™ Plus provides you with a low cost insurance cover during its tenure of 5 years. It is also convertible any time into any permanent life insurance policy from MNYL, so that you are able to take advantage of increasing your savings when your responsibilities increase viz. on marriage, or on child birth. KEY BENEFITS

On death of life insured: Sum Assured. Tax benefits:You are entitled to the following tax benefits under Income Tax Act 1961



Your claim amount (from death) is eligible for tax exemption u/s 10(10D). Customize your policy to meet your specific needs:

We offer you the flexibility to enhance the value of your policy by using the following riders/options

Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the ten diseases covered e.g. Heart Attack, Cancer, etc.

Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case of death or disability caused by an accident.


This plan can be renewed every 5 years and is convertible to any permanent plan at any time during the tenure of the plan.

Special rates for female lives

13

Life Partner PlusTM Plan

Life Partner PlusTM Plan offers you powerful triple benefits of –

Money if you live i.e. maturity benefit at age 75 Money if you don't i.e. a Life Insurance coverage till age 75 Money Backs i.e. a part of the Sum Assured at regular intervals to take care of

your periodic foreseen needs. KEY BENEFITS

1. On death of life insured: Initial Sum Assured Plus Sum Assured of Paid Up Additions through bonuses

2. On survival: Money backs @ 7.5% of the Initial Sum Assured will be paid on each policy anniversary from age 61 to 75.

3. On maturity: 100% of Sum Assured with Sum Assured of Paid Up Additions, if any.

4. On Surrender of Policy: Surrender value.5. Limited Premium Payment term: You can choose to pay the premiums over

4 terms i.e. 3 years, 7 years, 10 years or 20 years. 6. Bonus: From 3rd policy year, we will declare bonuses every year. 7. Tax benefits: You are entitled to the following tax benefits under Income Tax Act 1961:



Your claim amounts (from death, on maturity, or Money Backs or through surrenders) are eligible for tax exemption u/s 10(10D).



Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the ten diseases covered e.g. Heart Attack, Cancer, etc.

Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case of death or disability caused by an accident.

Term / Term R&C Riders: Offers additional Sum Assured to match your changing needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your life.

Waiver of Premium (WOP) / Pay or Riders: Waives your future premiums in case you suffer total disability. The pay or rider waives future premiums on your child’s policy in case you suffer total disability.

14


1. Cash Bonuses: You can use your bonuses in the following ways: 2. Withdraw in cash: bonus will be paid to you by cheque. 3. Pay your premiums: bonus will be used to pay the next premium. 4. Increase your Sum Assured: bonus will be used to buy additional layers of

insurance cover in the existing policy by buying Paid Up Additions (PUA). 5. Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of

Rs. 5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that can lead to death in 6 months; you can use this money for your treatment. The balance of the sum assured and the bonuses will be payable to your family on the occurrence of the Insured Event.

6. Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse and we will utilize your cash value to buy you insurance coverage in one of the following ways:




15

Group policy

Group Term Insurance

Group Term Insurance is the mainstay of our employee benefit platform. Here are some of the key features and benefits:

Group Term Life - Key features and Benefits

Easy and convenient administration one single master policy for all employees.

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

16

Group Term Insurance Scheme

Overview of EDLI Scheme, 1976

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 Authorities as 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.

A solution which is simple, flexible and unique 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 favourable 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, that 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 Organisation 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 paperwork.

17

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 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. 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 annually. In case of big, developing & growing organization, gratuity payout can work out to a substantial amount. If the employer pays gratuity from its current revenue, it may become difficult to meet the liability, it is therefore prudent and also beneficial that a gratuity fund is set up.

Benefits of the Group Gratuity Plan

Investment management in a conservative manner to ensure steady appreciation in fund income.

Employees can be insured for the future service gratuity for full-anticipated service.

Scientific funding of gratuity on actuarial valuation and hence superior planning for gratuity payments.

Past gratuity liability contribution can be made in installments. Contributions are exempt under income tax act.

Benefits to the members

Max New York Life will provide statement of account every quarter. Free Actuarial Valuation for future gratuity liability. For a new fund Max New York Life can assist in formation of the Trust and its

documentation. An existing Gratuity Fund can be taken over by MNYL and we will offer

assistance in documentation like Deed of variation to the original Trust Deed etc.

Basic Guidelines for Max New York Life Group Gratuity Scheme

18

1. Eligibility: All employees (members) above the age of 18 are eligible for this plan. Existing fund approved by the Income Tax Commissioner should be administered through Trustees under a Trust. 2. Contribution: The Trust will make the contribution to the fund. Contribution can be made quarterly, half-yearly or yearly. 3. Surrender Fee: In case a Policyholder wants to surrender the policy, a surrender fee is applicable. This fee is based on the realizable market value of the assets and depending upon the duration of the association with Max New York Life.

Term Insurance Cover Term insurance cover equal to future service gratuity Premium for term insurance cover will be computed separately. The insurance cover will also form part of Group Gratuity policy. Insurance cover will be paid only on the death of the member.

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 is 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 financial planning.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 the 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:

1. Non unit Linked or Traditional Group Gratuity Plan: which facilitates systematic and steady funding of the liability

2. Unit Linked Group Gratuity Plan: which 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.

Lives cover for full-anticipated service.

19

Contributions are exempted from Tax. Total Transparency in charges and the returns declared. Complete range of services provided: Taxation, Legal, Investment .

Product Features

Eligibility

• Employer-Employee Groups • Group Size of 25 members or more • Employees between age 18 and retirement age of the company

Contributions

MNYL will open and manage a Unit Account for the Trustees in which units are allocated and cancelled for the purpose of paying Gratuity The trust also pays a premium for the life insurance cover. This cover could be either the future service liability or a uniform/graded cover On receiving a claim, MNYL will redeem the units in the investment fund and pay the gratuity benefit In case of death of an insured member, MNYL will also pay the sum assured applicable for that member in addition to the gratuity benefit Contributions to be made towards the Gratuity Liability by the Trust to MNYL would be as per Actuarial Valuation – Post AS-15 certification Past Service Gratuity Liability payment can be made over a period of 5 years The annual contributions can be made annually/half yearly/quarterly/monthlyRedirection Annual contributions can be invested as per new fund break-up, not adhering to the initial investment break-up. This gives more flexibility for better financial planning as per specific requirements.

Charge Structure

MNYL unit linked Gratuity has one of the most transparent charge structures in the market currently. The Fund Management charge is also extremely competitive.Fund Management Charges - The fund management charge is levied as a percentage of value of assets and shall be appropriated by adjusting the Net Assets Value. Switching: MNYL UL Group Gratuity plan offers its clients a flexibility to switch funds from exiting fund to any other fund options, as per trust rules. Two free switches in one policy year can be availed by the clients.Surrender Fee: is applicable if a policyholder wants to surrender the policy. This fee is based on the length of association with Max New York Life.

Fund options

20

MNYL Group Gratuity plan is a market linked investment product, which offers 3 fund options to choose from. Fund Options – Fund Type DescriptionAsset Types Conservative Fund (%) Balanced Fund (%) Growth Fund (%)Govt. Securities 50-80 20-50 0-30Corporate Bonds (Investment Grade) 0-50 20-40 0-30Cash/Call Money Markets 0-20 0-20 0-20Equities Nil 10-40 20-60

The MNYL Advantage

Fund Management Philosophy Total Transparency in charges, returns declared and the portfolio of investments. Flexibility in premium payments, redirection of premiums, term cover. Superior Service

• ISO certified Operations & Processes• Free and diversified services: legal, investment, taxation• Dedicated Relationship Manager• Effective Transaction Processing & Superior Turnaround Times• Robust Data Management With High Confidentiality Maintained

Most Transparent charges and Low Fund Management Charges

21

Saving

Life Pay™ Money Back Plan (Participating) Policy

Life Pay™ Money Back Plan (Participating) 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. In addition this policy is also eligible for bonuses.

KEY BENEFITS

1. On death of life insured: Sum Assured plus Sum Assured of Paid Up Additions (without deducting any money back installments, if already paid).

2. On maturity: Sum Assured less money backs already paid plus 10% of SA as guaranteed addition plus accrued bonuses.

3. Bonus: From 3rd policy year, we will declare bonuses every year.4. Tax benefits:

You are entitled to the following tax benefits under Income Tax Act 1961: Your premiums are eligible for deduction u/s 80C up to Rs.100,000/-

every year. Your DD rider premiums are eligible for an additional deduction u/s 80D

up to Rs.10,000/- every year. Your claim amounts (from death, thorugh surrenders or on maturity) are

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





22




1. Cash Bonuses: You can use your bonuses in the following ways: 2. Withdraw in cash: bonus will be paid to you by cheque. 3. Pay your premiums: bonus will be used to pay the next premium. 4. Increase your Sum Assured: bonus will be used to buy additional layers of insurance cover in the existing policy by buying Paid Up Additions (PUA). 5. Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse and we will utilize your cash value to buy you insurance coverage in one of the following ways:




23

Life Gain™ Plus Endowment (Participating) Policy

Life Gain™ Plus Endowment (Participating) Policy provides 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 needs either by surrendering accumulated PUAs (explained below) or taking a loan. In addition this policy is also eligible for bonuses.

KEY BENEFITSOn death of life insured:

In the first 5 years- Sum Assured plus additional insurance coverage purchased from bonuses.

After 5 years- Double the Sum Assured plus additional insurance coverage purchased from bonuses.

On maturity: Sum Assured plus accrued bonus plus Guaranteed Additions @ 10% of Sum Assured.

On Surrender of Policy: Surrender value. Bonus: From 3rd policy year, we will declare bonuses every year.






24



1. Cash Bonuses: You can use your bonuses in the following ways: 2. Withdraw in cash: bonus will be paid to you by cheque. 3. Pay your premiums: bonus will be used to pay the next premium. 4. Increase your Sum Assured: bonus will be used to buy additional layers of insurance cover in the existing policy by buying Paid Up Additions (PUA). 5. Limited period of premium payment: so that you pay only during the years that you are earning, while you enjoy the insurance coverage for a longer period. 6. Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs. 5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that can lead to death in 6 months; you can use this money for your treatment. The balance of the sum assured and the bonuses will be payable to your family on the occurrence of the Insured Event. 7. Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse and we will utilize your cash value to buy you insurance coverage in one of the following ways:



8. Automatic Premium Loan: You can take a loan from the existing accumulation to pay your future premiums. In case you do not want either of the above, you can choose to take the cash value by cheque.

25

20 year Endowment (Participating) Policy

20 year Endowment (Participating) Policy helps you save for specific need 20 years from now viz.

Higher education of your child, or Children's marriage, or To buy a house, or To pay off a housing loan, or To create a fund for your retirement Provides you with an insurance cover to protect your family from financial

uncertainties in case of your untimely death during this period.

This policy will mature exactly 20 years after you buy it, and during this period, it also builds cash value. This policy is also eligible for bonuses. You may use the cash value and/or the bonuses to fund any unforeseen needs either by surrendering accumulated PUAs (explained below) or taking a loan.

KEY BENEFITS

On death of life insured or on maturity: Sum Assured plus accrued bonuses. On Surrender of Policy: Surrender value. Bonus: From 3rd policy year, we will declare bonuses every year. Tax benefits: You are entitled to the following tax benefits under Income Tax Act 1961:

o Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.

o Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,000/- every year.

o Your claim amounts (from death, on maturity or through surrenders) are eligible for tax exemption u/s 10(10D).

26












27

Life Gain™ Endowment Policy

Life Gain™ Endowment Policy provides 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 needs either by surrendering accumulated PUAs (explained below) or taking a loan. In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Sum Assured plus accured 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: You are entitled to the following tax benefits under Income Tax Act 1961:





28











29

Retirement

Easy Life™ Retirement Plan (Participating) Policy

Easy Life™ Retirement Plan (Participating) Policy helps you to save money for your retirement, and also provides you with an opportunity to take home a regular retirement income (i.e. pension) for your entire life from your chosen date of retirement. This income is a guaranteed amount, guaranteed when your annuity starts. In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Refund of accumulated premiums plus cash value of additional pure endowments purchased from bonuses.

On the chosen retirement date: Sum Assured plus additional insurance coverage purchased in way of bonuses.

On Surrender: Surrender value (minimum guaranteed @ 55% of premiums paid).

Bonus: From 3rd policy year, we will declare bonuses every year. Tax benefits: You are entitled to the following tax benefits under Income Tax Act 1961:

o Your premiums are eligible for deduction u/s 80CCC (1) up to Rs.10,000/- every year.

30



Bonuses: Your bonuses are used to purchase pure endowments, which add to the value of your policy.

Annuity Options: You can use the maturity value to buy an annuity from us or any other IRDA approved annuity provider. We currently offer the following annuity options:

Annuity for life: you will receive a fixed amount for your entire life. Annuity for a guaranteed minimum period of 5/10/15/20 years and for life

thereafter: In case death occurs to you before the guaranteed minimum period, we shall still pay the annuity to your family for the balance of the guaranteed minimum period chosen by you.

Life Annuity with Return of Annuity Purchase Price: In case of your death, we shall refund the original maturity value you had used to buy your annuity.

Endowment to age 60 policy

Endowment to age 60 policy is a quasi retirement policy that helps you to save primarily for your retired life. It will mature on the policy anniversary after your 60th birthday, and enables you to use the maturity proceeds in many ways viz.

Purchase a pension from any life insurance company Purchase that house in your hometown where you want to lead your retired

life Pay for your child’s higher education or marriage and also provides you with

an insurance cover to protect your family from financial uncertainties in case of your untimely death before reaching age 60.

Till age 60, this policy also builds cash value, and is eligible for bonuses . You may use the cash value and/or the bonuses to fund any unforeseen needs

either by surrendering accumulated PUAs (explained below) or taking a loan.

KEY BENEFITS

On death of the life insured: Sum Assured plus accrued bonuses plus terminal bonus (if any).

On maturity (attaining age 60): Sum Assured plus accrued bonuses plus terminal bonus (if any).

On Surrender of Policy: Surrender value.

31





Customize your policy to meet your specific needs: We offer you the flexibility to enhance the value of your policy by using the following riders/options:









32


Children

Children's Endowment 18 & 24 Policy

Children's Endowment 18 & 24 Policy enables you to provide for specific needs of your growing children viz.

Child Endowment to Age 18 enables you to provide for higher education of your child.

Child Endowment to Age 24 enables you to provide for the best possible wedding of your child and also builds cash value, which you can use during to fund any unforeseen needs by taking a loan.

In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Refund of premiums plus interest plus accrued bonus. On Maturity: Sum Assured plus accrued bonus. On Surrender of Policy: Surrender value. Bonus: From 3rd policy year, we will declare bonuses every year.

33

Tax benefits: You are entitled to the following tax benefits under Income Tax Act 1961:




We recommend that you enhance the value of your policy by buying the following rider:

Pay or Rider: Waives your future premiums in case you suffer total disability or meet with an untimely death. This ensures that your child will still get the lump sum money on attaining age 18 or 24.


Cash Bonuses: bonus will be paid to you by cheque. Non Forfeiture Options: In case you are unable to pay your premiums, your

policy will lapse and we will utilize your cash value to buy you insurance coverage in the following way:

Reduced Paid Up: A lower Sum Assured for the remaining term of your policy. In case you do not want the above, you can choose to either take the cash value by cheque or opt for Automatic Premium Loan(APL): whereby your cash value will be utilized to create a loan and pay your next premium.

Upon your child attaining the age of 18, he/she will have the option to buy a permanent life insurance policy without medical underwriting (irrespective of his/her health at that time).

On maturity of the policy, the benefits payable under the policy shall automatically vest with your child – so that your child received the benefits.

34

Stepping Stones™ Child Money Back Plan (Participating) Policy

Stepping Stones™ Child Money Back Plan (Participating) Policy is a smart way to plan for and secure your child's future irrespective of whether you are there or not. It provides you with regular money when it is required. This policy also builds cash value, which you can use during your lifetime to fund any unforeseen needs by surrendering accumulated PUAs (explained below). In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Sum Assured along with additional insurance coverage purchased in way of bonuses. Five years before maturity 30% of Sum Assured, Two years before maturity – 35% of Sum Assured, at maturity – 35% of Sum Assured plus 30% of Guaranteed Sum Assured.

35

On Survival / maturity: Five years before maturity 30% of Sum Assured, Two years before maturity – 35% of Sum Assured, at maturity – 35% of Sum Assured + 30% of Sum Assured as Guaranteed Additions plus additional insurance coverage purchased from bonuses.





Customize your policy to meet your specific needs: We offer you the flexibility to enhance the value of your policy by using the following riders/options:






Cash Bonuses: You can use your bonuses in the following ways: Withdraw in cash: bonus will be paid to you by cheque. Pay your premiums: bonus will be used to pay the next premium. Increase your Sum Assured: bonus will be used to buy additional layers of

insurance cover in the existing policy by buying Paid Up Additions (PUA). Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.

5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that can lead to death in 6 months; you can use this money for your treatment. The balance of the sum assured and the bonuses will be payable to your family on the occurrence of the Insured Event.

36

Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse and we will utilize your cash value to buy you insurance coverage in one of the following ways:

Reduced Paid Up: A lower Sum Assured for the remaining term of your policy. Extended Term Insurance: The same Sum Assured for part of the remaining

term of your policy.


Research Methodology

The research methodology used while making this project has been two pronged. The project has made use of both primary as well as secondary data.

Primary by conducting a survey and secondary by using information given on the net to provide details of the products offered by the company.

37

Data Obtained

1. Are you aware of Max New York Life Insurance Company?

38

2. What kind of products do you think MNYL provide?

a. Individual life insuranceb. Group insurancec. Children policyd. Retirement benefitse. All of the above

3. Have you ever been solicited by a MNYL advisor?

Knowledge about MNYL

Yes No

Knowledge about MNYL products

39

4. Do you have a policy of MNYL?

a. Yes b. No

For those who have answered YES,

1. What policy you have?

Individual life insurance Group insurance Children policy Retirement benefits

2. How would you rate it on a scale of 5?

Policyholder

Yes No

Kind of Policy

Individual Life Group Children Retirement

40

3. Are you satisfied with the product?

Yes No

4. What distinguishing feature do you find in MNYL?

Better service Individual attention Claim settlement Superior products

5. Why you took a MNYL policy?

Rating

0--1 1--2

2--3

3--4

4--5

Product popularity

YesNo

Feature

Better Service IndividualAttention

Claim Settlement Better Product

41

Advisor presentation Friend’s advice Your own judgement

6. Would you take another MNYL policy?

Yes No

Possibility of new purchase

65%

35%

Yes

No

For those who answered NO, 1. Why did you not take MNYL policy?

Reason for Buying MNYL product

Advisor

Friend

own judgement

42

Already had one Have no information about MNYL Nobody approached me Don’t like MNYL products

2. Do you think other company products are better?

Yes No Can’t say

Analysis of Data

Points in Favour of MNYL

Reason for not taking MNYL propduct

Yes No Cant say

43

Good Market penetrationAs seen from the data obtained MNYL has good marker penetration for a relatively new company with more than 60% of people having its policy.

Satisfactory Knowledge about productKnowledge about MNYL product is quite good in the market with a majority telling about the products offered by MNYL.

Good Solicitation rateAbout 2/3 of the respondents have been solicited by MNYL advisors. This concludes that work put up by advisors is appreciable.

Have got good scaling from those who have MNYL productMore than half of those who have a MNYL policy have scaled it in the region of 3+ range shows its popularity among the people.

Majority of Policyholders satisfiedMore than 90% of policyholders are satisfied with the product, a phenomena which augurs well for the company.

Advisor good at convincing PeopleAdvisor’s presentation is one of the clinching factors while deciding the policy. A point which again vindicate the advisors.

Chances of new prospects HIGHBoth the existing and non-existing policyholders are showing a keen interest in the company.

Those who don’t have policy majority cited “Already have one” as reason. This shows that supposed or actual inferiority of MNYL product do not have a big hand in people selecting other policy over MNYL.

Even those who don’t have policy would like to be our customerA welcoming trend which means that there are chances of increased customer base for MNYL.

Points against MNYL

44

Unsolicited persons number high The respondents unsolicited by MNYL advisors is still high, a point which is

not in the favor of a new company.

MNYL regarded as “average” by most number of people. Most of the people have put MNYL in 3-4 category which means that it is

being viewed as an average company by the people.

Group policy does not has many customers Group policy provided by MNYL is neither popular nor is taken by a “good”

number of people. Steps should be taken in this regard.

Individual Attention is not given to everybody. Lack of individual attention is cited as one of the reasons mentioned by many

of the people.

People are unaware about special feature of MNYL People both policyholders and non-policyholders do not have much

information about the special features of MNYL, which essentially demarcates MNYL from other companies.

Those who don’t have our policy majority ranked MNYL lower than competitor.

People who do not have our policy have rated MNYL lower than other competitors.

Conclusion

45

MNYL has market penetration and awareness about it is high in the market.But it can take following steps to even better itself:

Increase number of people solicited by MNYLo Since MNYL is a new company it should strive to increase its

solicitation rate.

Create awareness in people about high quality standards which MNYL possess.

o People should be made aware of the high quality standards adopted by the MNYL, especially that the fact that it is the only company authorized by IRDA to have in-house training for aspiring advisors.

Popularize Group Policy.o Group policy must be advertised as awareness about it is quite less

among people.

Give personal attention to customer.o Personal attention must be provided to all as it is cited as one of the

deficiencies of MNYL.

Advertise about MNYL special feature.o MNYL special features should be well advertised to ensure that people

know what set MNYL apart from its competitors.

Bank upon those people who might take MNYL policy.o MNYL should ensure that those who have shown willingness towards

taking its policy should be contacted and banked upon.

46

Bibliography

Source for Primary Data

Respondents – 80 Guidance from project guide with regard to formation of Questionnaire

Source of Secondary Data

www.maxnewyorllife.com Inputs form Mr. Sanjeev Pathak

47

http://www.maxnewyorllife.com/

48

Date post:	16-Nov-2014
Category:	Documents
Upload:	vipul
View:	1,855 times
Download:	0 times

Project on Max Life Insuranse

Documents