7/27/2019 AMAN VOHRA.DOC
1/116
PROJECT REPORT
ON
STUDY OF PRODUCT BASKET AT MAX NEW YORK LIFE
INSURANCE
PROJECT REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT
THE AWARD FOR THE OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)
TO
GURU GOBIND SINGH INDRAPRASTHAUNIVERSITY
SUBMITTED BY
AMAN VOHRA
ENROLLMENT NO. 06590201710
UNDER THE SUPERVISION OF
MS.MANSI
SRI GURU TEG BAHADUR INSTITUTE OF MANAGEMENT
&
INFORMATION TECHNOLOGY
(AFFILIATED To GGSIP UNIVERSITY, DELHI)
(2012-2013)
1
http://www.maxnewyorklife.com/Home.aspx7/27/2019 AMAN VOHRA.DOC
2/116
DECLARATION
I AMAN VOHRA hereby declare that the project work entitled
STUDY OF PRODUCT BASKET AT MAX NEW YORK LIFE
INSURANCE submitted to Guru Gobind Singh Indraprastha
University is a record of original work done by me under the
guidance of MS. AMANPREET KAUR ,faculty member of Sri
Guru Tegh Bahadur Institute of Management and Information
Technology.
__________________
Place: Delhi Signature of Scholar
Date:- AMAN VOHRA
Enrollment No: -06590201710
2
7/27/2019 AMAN VOHRA.DOC
3/116
CERTIFICATE
This is to certify that AMAN VOHRA, Enrollment No.07090201710, BBA student of Sri Guru Teg Bahadur Institute of
Management and Information Technology has done Project Work
on STUDY OF PRODUCT BASKET AT MAX NEW YORK
LIFE INSURANCE under the guidance of MS. AMANPREET
KAUR
_________________________
Signature of Director
(Prof.)Dr. P. L. Sethi
__________________________
Signature of Teacher Incharge
Ms. InderpreetKaur
__________________________
Signature of Guide
MS.MANSI
__________________________
Signature of Scholar
Place: Delhi AMAN VOHRA
Date :- Enrollment No: 06590201710
3
7/27/2019 AMAN VOHRA.DOC
4/116
ACKNOWLEDGEMENT
With profound sense of gratitude and regard, I express my sincerethanks to my guide and mentor MS. MANSI, for her valuable
guidance and confidence she installed in me, that helped me in the
successful completion of this project report. Without her help, this
project would have been distant affair. Her thorough understanding of
subject and professional guidance is indeed of immense help to me. I
am also thankful to the faculty members of our institution who
cooperated with me and gave me their valuable time.
__________________
Place: Delhi Signature of Scholar
Date
:- AMAN VOHRA
Enrollment No: -06590201710
4
7/27/2019 AMAN VOHRA.DOC
5/116
EXECUTIVE SUMMARY
Executive summary
A well-developed and evolved insurance sector is needed for
economic development as it provides long term funds for
infrastructure development and the same time strengthen the risk
taking ability.
Life insurance is also now being regarded as a versatile financial
planning tool in India. India being a country having a huge population
of around one billion people with only 33.2% of the population in
India possessing life insurance. The country has a vast potential that
has been left untapped till now.
Therefore what this has led to is the flooding of the life insurance
market with a number of private players which in collaboration with
recognized foreign companies promises to deliver the best of services
at the lest price. All these companies are trying to grasp the maximum
of market share in life insurance sector. For that they are recruiting
world-class insurance advisors/agents who sell their product or
policies. Who are these advisors/agents? Who can becomeadvisors/agents? How channels are developed? How they are
recruited in MNYL? , How much they can earn as an insurance
advisors/agents, these are some questions we have tried to answer in
our project report.
5
7/27/2019 AMAN VOHRA.DOC
6/116
This report is trying to give detail about channel development i.e.
recruitment and selection process of the life insurance advisors. Thus
by going through the report one will get to know about life insurance
and channel development i.e. recruitment & selection process of life
insurance advisors/agents in Max New York Life Insurance company
ltd.
6
7/27/2019 AMAN VOHRA.DOC
7/116
TABLE OF CONTENT
S.NO. CHAPTERS PAGE NO.1 INDUSTRY PROFILE
2 2.1 COMPANY PROFILE
2.2 Vision, Mission & Values of MNYL
3 OBJECTIVE OF THE STUDY
4 4.1 CONCEPTUAL FRAMEWORK
4.2 HISTORY OF INSURANCE
4.3 TYPES OF INSURANCE POLICIES
5 5.1MNYL policies or products
5.2 About life insurance advisors
5.3 Channel development
6 RESEARCH METHODOLOGY
6.1 RESEARCH DESIGN
6.2 DATA COLLECTION METHOD
6.3 SAMPLE SIZE AND AREA
7 ANALYSIS & INTERPRETATION
8 ROLE & LEARNING AT MNYL
9 RECOMMENDATIONS
10 CONCLUSION
11 QUESTIONNAIRE
12 BIBLIOGRAPHY
CHAPTER -1
1.1 Industry Profile
7
7/27/2019 AMAN VOHRA.DOC
8/116
The Insurance landscape in India is undergoing major change. Closed
to foreign competition since nationalization in 1956, the life insurance
had been protected from competitive pressures. Now, with the re-
opening of the sector, several new players have entered the scene.
The game is old but rules are new and still developing. Ensconced in a
monopoly run from the nationalization days beginning in 1956, the
insurance industry has indeed awakened: to a deregulated
environment in which several private players have partnered with
multinational insurance giants.
There are lots of life insurance companies in the industry but only few
are getting good benefits and successfully trying to establish
themselves. Life insurance industry is an upcoming industry and
having a huge potential for making huge benefits. Some of the life
insurance companies are:
LIFE INSURANCE CORPORATION OF INDIA (LIC)
MAX NEW YORK LIFE INSURANCE
ICICI PRUDENTIAL LIFE INSURANCE
TATA AIG LIFE INSURANCE
BIRLA SUN LIFE INSURANCE
HDFC LIFE INSURANCE
AVIVA LIFE INSURANCE
KOTAK LIFE INSURANCE
8
7/27/2019 AMAN VOHRA.DOC
9/116
LIC is a government company so it is one of the biggest life insurance
company but if we look at the private players then MAX NEW YORK
LIFE IS No. 1 among all private life insurance companies. According
to GENERAL ACCEPTED ACOUNTING PRINCIPLE (GAAP)
Max New York Life is the only company, which is in the profit.
CHAPTER 2
9
7/27/2019 AMAN VOHRA.DOC
10/116
2.1 Companys Profile
Max New York Life Insurance Company Ltd. is a joint venture
between New York Life, a Fortune 100 company and Max IndiaLimited, one of India's leading multi-business corporations. The
company has positioned itself on the quality platform. In line with its
vision to be the most admired life insurance company in India, it has
developed a strong corporate governance model based on the core
values of excellence, honesty, knowledge, caring, integrity and
teamwork. The strategy is to establish itself as a trusted life insurance
specialist through a quality approach to business.
In line with its values of financial responsibility, Max New York Life
has adopted prudent financial practices to ensure safety of
policyholder's funds. The Company's paid up capital is Rs. 587 crore,
which is more than the norm laid down by Insurance Regulatory
Development Authority (IRDA).
Having set a best in class agency distribution model in place, the
company is spearheading a major thrust into additional distribution
channels to further grow its business. The company is using a five-
pronged strategy to pursue alternative channels of distribution. These
include the franchisee model, rural business, direct sales force
involving group insurance and telemarketing opportunities, bancassurance and corporate alliances.
Customers to Max New York Life offer a suite of flexible products. It
now has 22 life insurance products and 8 riders that can be customized
10
7/27/2019 AMAN VOHRA.DOC
11/116
to over 400 combinations enabling choose the policy that best fits
their need.
Max New York Life is the first life insurance company in India to be
awarded the IS0 9001:2000 certifications.
Max New York Life was among the top 25 companies to work with in
India, according to 2003 Business World magazine, "Great
Workplaces In India", Max New York Life was ranked at the 20th
position. This survey is the local version of the "Great Places to
Work" survey carried out every year in 22 countries.
MNYL is among the top five most respected private life insurance
companies in India according to a 2004 Business World survey.
MNYL has truly built an enviable sales force. With 201 agents
becoming members of the MDRT in 2005, Max New York Life has
moved up in the Top 50 MDRT global list.
ABOUT NEW YORK LIFE
New York Life Insurance Company, a Fortune 100 company
founded in 1845, is the largest mutual life insurance company in the
United States and one of the largest life insurers in the world.
Headquartered in New York City, New York Lifes family of
companies offer life insurance, annuities and long-term care
insurance. New York Life Investment Management LLC provides
institutional asset management and retirement plan services. Other
New York Life affiliates provide an array of securities products and
11
7/27/2019 AMAN VOHRA.DOC
12/116
services, as well as institutional and retail mutual funds.
The mission of New York Life is to maintain its superior 'financial
strength', adhere to the highest standards of 'integrity' and demonstrate
'humanity' by treating its customers, agents and employees with
compassion, consideration and respect.
New York Life is one of the largest and strongest life insurance
companies in the world with more than USD$215 billion assets under
management and has received among the highest ratings for financial
strength from the life insurance industry's principal rating agencies:
A.M. Best (AA+), Standard & Poor's (AA+), Moody's (Aa1), Fitch
(AAA). According to Moody's, "New York Life's rating reflects the
company's good quality investment portfolio, ample liquidity, and
sound capitalization, as well as the good growth potential of its
international business.
As a leader in the insurance industry, New York Life continues to
bring to its operations new management concepts, advanced
technologies, new distribution and training systems and innovative
insurance products.
ABOUT MAX INDIA LIMITED
Founded in 1985, Max India Limited is a Public Limited company
listed in the NSE and BSE of India with over 37,000 shareholders.
Today, Max India Limited is a multi-business corporate, driven by the
spirit of Enterprise, focused on Knowledge, People and Service
oriented businesses of:12
7/27/2019 AMAN VOHRA.DOC
13/116
Healthcare (Max Healthcare)
Life Insurance (Max New York Life Insurance)
Clinical Research (Neeman Medical International)
Max also maintains interests in:
Specialty Plastic Products for the packaging industry (Max
Specialty Products)
Healthcare Staffing (Max Health Staff)
Prominent shareholders are Mr. Analjit Singh and a leading private
equity firm, Warburg Pincus that accounts for 28.7% of the total
shareholding. The public and Institutional Investors hold the balance
shareholding.
Till 1999, the companys main interests and partnerships were the
following:
Business Partners
Bulk Active Pharmaceuticals DSM Gist
Brocades
Electronic Component Distribution Motorola, USA
Electronic Component Distribution Avnet Inc., USA
Mobile Telephony Hutchison
Telecom Ltd.
13
7/27/2019 AMAN VOHRA.DOC
14/116
Hong Kong
V-SAT Communications Comsat
Investment Inc.,
USA &
Lockheed Martin,
USA
Plating Chemicals Atotech,
Germany
Information Technology Mind Crossing,
USA
In 2000, the Company reinvented and restructured itself to focus on
the businesses of Life under the theme, LifeOur Focus.
Max New York Life Insurance, founded as a Joint Venture between
Max India Limited and New York Life, a Fortune 100 company, is
one of the leading private life insurers in India.
Max Healthcare, a subsidiary of Max India Limited is Indias first
provider of comprehensive, standardized, seamless, and integrated
world-class healthcare services.
Neeman Medical International (NMI) is an International Clinical
Research provider operating across three locations spanning North
America, Asia and Latin America. Each location is backed by
14
7/27/2019 AMAN VOHRA.DOC
15/116
comprehensive infrastructure and highly skilled and experienced
personnel.
Board of Directors- Max India Limited
Dr Bhai Mohan Singh Lifetime Chairman Emeritus, Max
India
Mr. Analjit Singh Chairman, Max India
Dr S S Baijal Former Chairman, ICI Ltd.
Mr. N C Singhal Former Vice Chairman & MD,
SCICI
Mr. N Rangachary Former Chairman, IRDA
Mr. Nitin Sibal Vice President, Warburg Pincus India
Pvt. Ltd.
Mr. Piyush Mankad Former Secy., Ministry of Finance,
Govt. of India
Mr. Ashwani Windlass Former Managing Director, Hutchison
Max
Mr. Bharat Sahgal Managing Director, Warburg Pincus
India Pvt. Ltd.
Mr. B Anantharaman Jt. Managing Director, Max India
15
7/27/2019 AMAN VOHRA.DOC
16/116
2.2 Vision, Mission & Values of MNYL
Mission of MNYL
To become the most admired life insurance Company in India.
This we hope to achieve by:
o Understanding the needs of customer and offering them
superior products and services.
o
Leveraging technology to service customers quickly,efficiently and conveniently.
o Providing an enabling environment to foster growth and
learning for our employees.
o And above all, building transparency in all our dealings.
We do believe that we are on the threshold of an exciting new
opportunity, where we can play a significant role in redefining and
reshaping the sector. Given the quality of our parentage and the
commitment of our team, there are no limits to our growth.
MISSION OF MNYL
Become one of the top quartile life insurance companies in India
Be a national player
Be the brand of first choice
Be the employer of choice
16
7/27/2019 AMAN VOHRA.DOC
17/116
VALUES OF MNYL
This vision to become India's most admired life insurance
company will be realized through our unique set of values, which are
as follows:
Knowledge
Knowledge leads to expertise; and our expertise is in helping people
protect them. Perfectly combining global expertise with localknowledge, we are India's life insurance specialist. Max New York
Life believes that for knowledge to be of value it must be focused,
current, tested and shared.
Caring
Max New York Life is redefining the life insurance paradigm by
focusing on customers first. The service process is responsive,
personalized, humane and empathetic. Every individual who
represents the company is for us our brand champion.
Honesty
Honesty is the heart of the life insurance business. It is all about trust.
Transparency, integrity and dependability form the cornerstones of the
Max New York Life experience. The company ensures that everyone
17
7/27/2019 AMAN VOHRA.DOC
18/116
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.
18
7/27/2019 AMAN VOHRA.DOC
19/116
CHAPTER 3
3.1 OBJECTIVE OF THE STUDY
To understand the procedure of channel development in
MNYL.
To know about Life Insurance, its benefits and needs.
To find out possible advantage of Insurance advisors in MNYL.
To find the suitable person for the recruitment of Insurance
advisors.
To study the product basket at Max NewYork Life Insurance
To find out the peoples perception about life insurance.
To find out whether people were really aware of life insurance.
To find out how people think about private life insurance.
To find out what respondents expect from life insurance.
To understand Consumer buying behavior
19
7/27/2019 AMAN VOHRA.DOC
20/116
To come out with conclusion and suggestions based on the
analysis and the Interpretation of data.
20
7/27/2019 AMAN VOHRA.DOC
21/116
CHAPTER - 4
4.1 Conceptual Framework
Life Insurance
Life insurance is a contract providing for the payment of a sum of
money to the person assured or failing him to the person entitled to
receive the same on the happening of cetin event.
Uncertainly of death is inherited in human life. It is this rise, which
gives rise to the necessity for some form of protection against the
financial loss arising from the death. Insurance substitutes this
uncertainty by certainly.
The objective of Insurance is normally to provide
A. Family protection
B. Provision for old age
Requirement of Life Insurance
You think twice before taking the plunge into buying life insurance. Is
buying insurance is necessity now? Spending an extra amount as21
7/27/2019 AMAN VOHRA.DOC
22/116
premium at regular intervals where do you not see immediate benefits
does not seem a necessity at the moment.
Well you could be wrong. Buying insurance cannot be compared with
any other form of investment. Insurance gives you a life long benefits
and the returns will definitely come but only when you need it the
most i.e. at the right time. Besides buying insurance early in life is one
of the wise decisions you could take.
Insurance is not about how much more it can offer you when the stock
market is at the peak. It may not be an attractive investment option.
But weight pros and cons and consider how much more it can offers at
a small price.
Most important of all it provides you with the unique sense of security
that no other form of investment provides. It gives you a sense of
financial support especially during that time of crises irrespective of
the fluctuation in the stock market. Insurance provides for your career
goals right from the childhood years.
If the eating member of the family is no more your childs educational
need will not suffer. In fact his higher education too will be provided
for. You need not spend sleepless night thinking about how to save for
childs marriage. Life insurance will take care of that typical once-in-
a-life-time spending on marriage.
An accident or a disability may be devastating but a life insurance
policy can be of utmost support for the family during such times too.
22
7/27/2019 AMAN VOHRA.DOC
23/116
Besides it provide for addition benefits such as bonuses. You need not
worry about retirement years. The rising prices, taxes and your
lifestyle will be taken care of easily. And you can relax and spend
your old age in comfort and peace.
Life insurance todays plays a major role in once life at various stages.
Considering the benefits it offers one cannot give a thought to buying
an insurance policy the earliest.
Need for Insurance
The need for life insurance comes from the need to safeguard our
family. If you care of your familys need you will definitely consider
insurance.
Today insurance has become even more important due to the
disintegration of the prevalent joint family system, a system in which
a number of generations co-existed in harmony, a system in which a
sense of financial security was always there as there were more
earnings members.
Times have changed and nuclear family has emerged. Apart from
other pitfalls of a nuclear family, a high sense of insecurity is
observed in it today besides, the family has shrunk. Needs are
increasing with time and fulfillment of these needs is a big question
mark.
23
7/27/2019 AMAN VOHRA.DOC
24/116
How will you be able to satisfy all those needs? Better lifestyle, good
education, and your long desired house. But again you just cannot
fritter away your earnings. You need to save a part of it for the future
too a wise decision. This is where insurance helps you.
Factors such as fewer numbers of earning members, stress, pollution,
increasing competition, higher ambitious etc are some of the reasons
why insurance has gained importance and where insurance plays a
successful role.
Insurance provides a sense of security to the income earner as also to
the family. Buying insurance frees the individual from unnecessary
financial burden that can
Otherwise make him spend sleepless night. The individual has a sense
of consolidation that he has sometime to fall back on.
From the very beginning of your life, to your retirement age insurance
can take care of all your needs. Your child needs good education to
mould him into a good citizen. After his schooling he needs to go for
higher education, to gain a professional edge over the others a
necessity in this age where cutthroat competition is the rule. His
career needs have to be fulfilled.
Insurance is a must also because of the uncertain future adversities of
the life. Accidents, illness, disability etc are the facts of life, which
can be extremely devastating. Other than the hospitalization,
medication bills these may run up its the aftermath of the accident,
24
7/27/2019 AMAN VOHRA.DOC
25/116
the physical well being of the individual that has to be taken into
consideration. Will the individual be in a position to earn as before? A
pertinent question. But what if he is not? Disability can be taken care
of by insurance. Your family will not have to go through the grind due
to your present inability.
Moreover, retirement, an age when every individual has almost
fulfilled his responsibilities and looks forward to relaxing can be
painful if not planned properly. Have you consider the increasing
inflation and taxes? Will you investment offer you attractive return
under such circumstances? Will it take of your family after you? An
insurance policy will definitely take care of these things. Insurance
today has opened up new vistas a lot of potential. Considering how
dependent our agriculture system is on the monsoon, the farmer sees a
dim future. The uncertainty of the monsoon too can be taken care of
by insurance. Looking at the advantage of the insurance policy a
number of farmers have gone into insurance. Insurance has become a
necessity today.
The right time to buy Insurance
Buying life insurance cannot ever be compared with other investment
decisions since it is very much contrast with those stock market
investments where you wait for the right time to buy and sell. Neither
is this like receiving tips on particular scrip doing well in the market
and holding great future prospects.
25
7/27/2019 AMAN VOHRA.DOC
26/116
Buy life insurance at the earliest. Do you think when you will fall ill?
Are you sure about future income earning potential? Are you sure you
will never meet an accident? If not buy insurance now
This is because the future is always uncertain. Just as buying
insurance is a necessity so also buying insurance early in life is
important too. With proper financial planning one can work out as to
how much money an individual is entitled to after the end of a
particular term. A policy that fulfills your childs future education
needs would have to be timed appropriately so that he receives the
policy amount at the time when he needs it the most.
Benefits of life insurance
The proceeds accruing from life insurance policy can be utilized for:
A. Final expenses resulting from death.
B. Guaranteed maintenance of lifestyle.
C. Replacement of income.
D. Mortgage or Liquidation payment.
E. Cost of education.
F. Estate and other taxes.
26
7/27/2019 AMAN VOHRA.DOC
27/116
7/27/2019 AMAN VOHRA.DOC
28/116
That perhaps, was how insurance made its beginning.
Life insurance, on the other hand, had its original in ancient Rome,
where citizens formed burial clubs that would meet the funeral
expenses of its members as well as help supervisors by making some
payment.
As European civilization progressed, its social institutions and welfare
practices also got more and more refined. With the discovery of new
lands, sea route and the consequent growth in trade, medieval guild
took it upon themselves to protect their members traders from loss on
account of fire, shipwrecks and the like.
Since most of the trade took place by sea, there was also the fear of
pirates. So these guilds even offered ransom for members held captive
by pirates. Burial expenses and supports in times of sickness and
poverty were other services offered. Essentially, all these revolved
around the concept of insurance of risk coverage.
ENTRY OF COMPANIES
The first stock companies to get into the business of insurance were
chartered in England in 1720. The year 1735 saw the birth of the first
insurance company in the American colonies in Charleston.
However, it was after 1840 that life insurance really off in a big way.
28
7/27/2019 AMAN VOHRA.DOC
29/116
THE GROWING YEARS
The 19th century shows huge development in field of insurance, with
newer products being advised to meet the growing need of
urbanization and industrialization.
In 1835, the infamous New York fire drew peoples attention to the
need to provide for sudden and large losses. Two years later,
Massachusetts became the first state to require companies by law to
maintain such reserves. The great Chicago fire of 1871 further
emphasized how fires can cause huge losses in diversity populated
modern cities. The practice of reinsurance, wherein the risks are
spread among several companies, was devised specifically for such
situations.
There were more offshoots of the process of industrialization. In 1897,
the British government passed the Workmens compensation act,
which made it mandatory for a company to insure its employees
against industrial accidents.
With the advent of the automobile, public liability insurance, this first
made its appearance in the 1880s gained importance and acceptance.
In the 19th century, many societies were founded to insure the life and
health of their members, while fraternal orders provided low costs,
members-only insurance.
29
7/27/2019 AMAN VOHRA.DOC
30/116
7/27/2019 AMAN VOHRA.DOC
31/116
As these companies grew, the government began to exercise control
on them. The Insurance Act was passedin1912, followed by a detailed
and amended Insurance Act of 1938 that looked into investments,
expenditure and management of these companies.
As a result, the government decided nationalizes the life assurances
business in India. The Life Insurance Corporation of India was sat up
in 1956 to take over around 250 life companies.
For years thereafter, insurance remain monopoly of the public sector.
It was only after seven years of deliberation and debate- after the R.N
Malhotra Committee report of 1994 became the first serious document
calling for the reopening up of insurance sector to private players- that
the sector was finally opened up to the private players in 2001.
SOME OF THE IMPORATANT MILESTONES IN THE
LIFE INSURANCE IN INDIA ARE:
1912: The Indian Life assurance Companies Act enacted as the First
statue to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
Government to collect Statistical information about both lives and
Non-life Insurance business.
31
7/27/2019 AMAN VOHRA.DOC
32/116
1938: Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interest of the
insuring people.
1956: 245 Indian and foreign insurers and provident societies taken
over by the central government and nationalized, LIC formed by an
Act of parliament, viz. LIC Act, 1956, with a capital contribution of
Rs. 5 Crores from the government of the India.
Effect Of Liberalization
The winds of liberalization have initiated vast changes in the
functioning of the industry today. Increasing number of multi-national
partnership with private insurers have paved the way for radical shift
in insurance selling through a number of new distribution channels
besides bringing about more awareness in the need for insurance and
stressing on the important role technology can play.
With major trade barriers, gone the Indian insurance industry is
slowly opening itself from a protected environment to e-business,
incorporating newer technology in insurance.
The opening up of the sector is paving way for:
o Faster decision making
o Easier claim settlement
32
7/27/2019 AMAN VOHRA.DOC
33/116
o Bank assurance
o Improved customer service
Utilizing the extensive network of banks for selling insurance will
over a period bring about an increase in insurance density improving
insurance penetration in rural areas where in a large unexploited
potential exists.
INSURANCE SECTOR REFORMS
In 1993, Malhotra committee, headed by former Finance Secretary
and RBI Governor R.N Malhotra, was founded to evaluate the Indian
insurance industry and recommended its future direction.
The Malhotra committee was set up with the objective ofcomplementing the reforms initiated in the financial sector.
The reforms were aimed at creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping
in minds the structural changes currently.
Underway and recognizing that insurance is an important part of the
overall financial system where it was necessary to address the need
for similar reforms.
33
7/27/2019 AMAN VOHRA.DOC
34/116
7/27/2019 AMAN VOHRA.DOC
35/116
The approval of institutions for imparting training to agents has also
ensured that the insurance companies would have a trained work force
of insurance agents in place to sell their products.
Since being set up as an independent statutory body the IRDA has put
in a framework of globally compatible regulations. In the private
sector, 12 life insurance and 6 general insurance companies have been
registered.
The important functions of IRDA are as follows:
To exercise all powers & functions of controller of insurance.
Protection of the interest of the policyholder.
To issue, renew, modify, withdrawn or suspend certificate of
registration.
To specify requisite qualification & training for insurance
intermediaries & agents.
To promote & regulate professional organization connected
with insurance.
To conduct inspection/investigation etc.
To prescribe methods of insurance Accounting.35
7/27/2019 AMAN VOHRA.DOC
36/116
7/27/2019 AMAN VOHRA.DOC
37/116
This an attempt to make the insurance sector more dynamic- this is
likely to happen as banks will us their formidable branch network to
market and distribute the insurance products.
The Indian insurance industry, which until now was a controlled
sector, with only two players for the last four and half decades, has
suddenly turned itself into a battleground. Though the sector remained
in the strong clutches of the government enterprise, the growth has
been slow. A number of players, both domestic and international,
characterize the industry competing for the huge untapped market.
The Indian insurance sector is witnessing a slow and steady change.
Though the sector is yet to come out of the government control
completely, the new constraints are hopeful of competing head-on
with the state-owned monopolies and create a niche for themselves.
4.3 Types Of Insurance Policies
Though there are lots of policies available in the market under
different names and by different companies, the policies can broadly
be classified into following categories:
Term Insurance policy
Whole life policy37
7/27/2019 AMAN VOHRA.DOC
38/116
Money back policy
Endowment policy
Pension plans or Annuities
Term Insurance Policy
Term insurance provides life insurance coverage for a specific period
of time. Presently one year, ten year, and fifteen year are the periods
one can buy term life insurance policy. If the insured person dies
during the period the insurance is in force, the insurance company
pays off the face value of the policy. If the insured lives longer than
the term of the policy, the policy is no longer in effect and nothing is
paid.
Term insurance is the least expensive form of life insurance. It is
commonly used when the insured needs temporary protection or cant
afford the premiums for the other forms of life insurance. The other
reason an insured may want term insurance is to purchase life
insurance and invest the difference between the term policy and cash
value policy elsewhere.
Term insurance comes in several forms. There is renewable & non-
renewable. Non-renewable means that on the expiry of your policy
38
7/27/2019 AMAN VOHRA.DOC
39/116
7/27/2019 AMAN VOHRA.DOC
40/116
life policy insurance belongs to the insured. One can take it out in the
form of the policy loan or cash the policy in. another advantage of
whole life policy is that the premium are fixed, i.e. regardless of your
income, you pay the same amount for the coverage each year.
Universal life insurance policy
Universal life insurance is a variation of whole life. The difference is
that with Universal life insurance part is spread from the investment
portion of the policy. The cash value portion of the policy is tested, as
an accumulation fund and investment is credit to the accumulation
fund.
Money Back Policy
Money back policy provides the periodic payments of partial survival
benefits during the term of the policy, as long as the policyholder is
alive.
An important feature of this type policy is that in the event of the
death at any time within the policy term, the death claims comprises
the full sum assured, without deduction of any of the survival benefit
amount, which may have already been paid as money back
components. Similarly the bonus is also calculated on the entire sum
assured.
40
7/27/2019 AMAN VOHRA.DOC
41/116
Endowment policy
An Endowment policy covers the risk for a specified period, at the
end of which the sum assured is paid back to the policyholder, along
with the bonus accumulated during the term of the policy. This feature
of payment of endowment to the policyholder when the policies term
is complete is responsible for the popularity of endowment policies.
The amount received on maturity can either to buy an annuity policy
to generate a monthly pension for the rest of the policy, or put it into
any other suitable investment of our choice. This is one important
benefit, which the endowment policy offers over a whole life
insurance policy.
Overall, endowment policies are the most suitable of all insurance
plans for covering the risk to a family breadwinners life. Not only do
these policies provide financial risk cover for the family, were the
policy holder to die prematurely but the insurance amount is also
repaid once this risk is over.
Alternately, the endowment sum is available for a suitable investment
geared to providing an income for the remainder of once own life.
These types of plans are particularly suitable to those who other than
having risk cover is also interested in a saving component
simultaneously.
Pension Plan Or Annuity
41
7/27/2019 AMAN VOHRA.DOC
42/116
An annuity is an investment that we make, either in a single lump sum
or through installments paid over a certain numbers of years, in return
for which we receive a specific sum every tear, every half-years of
every month, either for whole life or a fixed number of year.
After the death of annuitant or after the fixed annuity period expires
for annuity payments, the invested annuity fund is refunded, perhaps
along with a small addition, calculated at that time. Annuities differ
from all other form of life insurance in one fundamental way-anannuity does provide any life insurance cover but instead offers a
guaranteed income either for life or a certain period.
Typically annuities bought to generate income during ones retired
life, which is why they are also called pension plan. Annuity
premiums are payments are fixed with reference to the duration of
human life.
Settlement Option
When the life insurance policy becomes payable, the insured or the
beneficiaries may elect to take-to-take payment in one lump sum.
However, when the insured or the beneficiaries, elect not to take lump
sum payment, there are several other options available to him for
receiving his payment, which are as follows:
Interest Option42
7/27/2019 AMAN VOHRA.DOC
43/116
7/27/2019 AMAN VOHRA.DOC
44/116
7/27/2019 AMAN VOHRA.DOC
45/116
7/27/2019 AMAN VOHRA.DOC
46/116
o Your premiums are eligible for deduction u/s 80C up to
Rs.100,000/- every year.
o Your claim amounts (from death, on maturity or through
surrenders) are eligible for tax exemption u/s 10(10D).
Life Gain Endowment Policy
Life Gain Endowment Policyprovides you with an insurance cover
that is guaranteed during the tenure of the policy. This policy also
builds cash value, which you can use during your lifetime to fund any
unforeseen needseither by surrendering accumulated or taking a loan.
In addition this policy is also eligible for bonuses.
KEY BENEFITS
On death of life insured: Sum Assured plus accrued bonus.
On maturity: Sum Assured plus Guaranteed Addition @ 10%
of Sum Assured plus accrued bonus plus terminal bonus (if
any).
On Surrender of Policy: Surrender value.
Bonus: From 3rd policy year, we will declare bonuses every
year.
Tax benefits:
46
7/27/2019 AMAN VOHRA.DOC
47/116
7/27/2019 AMAN VOHRA.DOC
48/116
7/27/2019 AMAN VOHRA.DOC
49/116
Working of Life Maker Unit Linked Investment Plan
In the Life Maker unit linked plan; the premiums you pay are
invested in funds offered by us. You will determine the appropriate
ratio of investments into these funds in consultation with your Agent
Advisor. These funds are invested in assets such as equities, money
market instruments, investment grade corporate bonds, and
government securities. These funds offer a wide range of returns. You
can choose to invest your premiums in one or more of these funds,
basis your risk taking ability. In turn, we issue units, which representthe value of your policy i.e. you can "see" the value of your policy on
any day by multiplying the number of your units by the value of units
on that day. The value of these units is called the Net Asset Value (or
NAV) and is normally published in newspapers on a daily basis. The
NAV is based on the market value of the underlying investments in
that fund i.e. equities, company bonds, government securities, etc.
KEY BENEFITS
Flexible Protection: You have the flexibility to choose from
two in insurance covers - as per your need.
o Level insurance cover: In the unfortunate event of death
the nominee shall receive higher of the insurance cover
or value of units.
49
http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Unit%20Linked%20Investment%20Plan.aspx#f1%23f1http://www.maxnewyorklife.com/Products/Individual/Life%20Maker%20Unit%20Linked%20Investment%20Plan.aspx#f1%23f17/27/2019 AMAN VOHRA.DOC
50/116
o Increasing insurance cover: In the unfortunate event of
death the nominee shall receive the sum of insurance
cover and the value of units in the plan. You can change
your type of cover from increasing insurance cover to
level insurance cover during the plan tenor after age 60
by writing to MNYL.
Flexible Investment:
o Secure Fund - Invests 100% in high quality fixed income
securities issued by the Government of India, or
companies or other bodies corporate with a high credit
rating. This fund will have low level of risk and return.
o Conservative Fund - Invests largely in high quality fixed
income securities issued by the Government of India or
companies or other bodies corporate with a high credit
rating. This fund will have a low to moderate level of
risk and return.
o Balanced Fund - Invests in both high quality fixed
income securities issued by the Government of India or
companies or other bodies corporate with high credit
rating, as well as in high quality Indian equity stocks.
This fund will have a moderate level
of risk and return.
50
7/27/2019 AMAN VOHRA.DOC
51/116
o Growth Fund - Invests largely in high quality Indian
equity stocks. A small portion of the fund may be
invested in high quality fixed income securities issued
by the Government of India or
companies or other bodies corporate with high credit
rating. This fund will have a moderate to high level of
risk and return.
High Customization: We understand your need to adjust yourinvestment portfolio based on factors like changing interest
rates or the volatility in the equities market or a change in your
life stage. The Life Maker plan allows you to switch
between funds in any ratio.The switch allows you to change
your risk return profile of your
existing investments. In every policy year, the
first two switches are free. The switch option we
offer is one of the most powerful and flexible
ones in the market where money from one fund
can be switched to multiple funds in a single
switch.
Life Maker allows you to re-direct your future premiums. You can
invest your future premiums in a fund different from your earlier fund,
or to multiple funds in a ratio different from your earlier ratio
(provided the amount paid into each fund meets our minimum in-force
51
7/27/2019 AMAN VOHRA.DOC
52/116
requirement). Re-directing helps you change the risk - return profile
of your future investments. In every policy year, the first re-direction
is free Invest more through fund top-ups to match your cash flows.
You can invest extra money in your plan through occasional top-ups
at anytime post the policy commencement dates. However,
cumulative top ups will be allowed up to only 25% of the cumulative
Annual Target Premium. Top ups wont effect any change in Sum
Assured.
Guaranteed free units as loyalty bonus: In the last policy
year, you can get free additional units, known as persistency
units. These are equal to 2.5% of your annual target
premium multiplied by the policy term, but not exceeding
one annual target premium.
Attractive Tax Benefits: .All premiums (including all top-
ups) paid are eligible for a tax rebate under Section 80C of
the Income Tax Act of 1961.All maturity benefits are tax
free under Section 10 (10D) of the Income Tax Act of 1961.
All switches are tax free.
Group Term Life
Easy and convenient administration one single master policy for all
employees. Group size of at least 25 employees. No upper limit on
52
7/27/2019 AMAN VOHRA.DOC
53/116
membership. Policy is valid for one year and can be renewed
annually.
Uniform or a graded cover can be provided on any basis chosen by
your subject to a maximum of three years of salary per employee.
In case of death of an employee, due to natural or accidental reasons,
the entire sum assured amount is paid to the employer.
Additional Protection is available through riders forCritical Illness,
Accidental Death Benefits, Disability and Dismemberment.
New members can join and out going members can leave the scheme
at any time
with premium adjustment.
Group gratuity
After an employee has rendered continuous service for at least five
years, he/ she is eligible for 15 of days pay for each completed year of
service. The employer can also structure a gratuity benefit that is
higher than statutory requirements. The gratuity benefit is payable on
cessation of employment (either by resignation, death, retirement or
termination etc), by taking last drawn basic salary as the basis for the
calculation.
Gratuity payment is a statutory liability for an organization and tends
to increase as the salaries and tenure of employment increase
annually. In case of big, developing & growing organization, gratuity53
7/27/2019 AMAN VOHRA.DOC
54/116
7/27/2019 AMAN VOHRA.DOC
55/116
Employee deposit linked insurance
All establishments with at least 10 full-time permanent employees and
to whom the Employee's Provident Fund and Miscellaneous
Provisions Act, 1952 applies, have a statutory liability to subscribe to
Employee's Deposit Linked Insurance Scheme (EDLI), 1976 to
provide for life insurance for all their employees. The organization
has to make a contribution @ 0.51% of each employee's wages (Basic
+ Dearness Allowance + Retaining Allowance), subject to a
maximum of Rs.6, 500 per month, to the Provident Fund Authoritiesas part of its compliance to the Act. The death benefit payable under
this scheme is based on the provident fund account balance of the
individual member, subject to a maximum of Rs.60, 000.
Under Section 17 (2-A) of the Provident Fund Act, the Central
Provident Fund Commissioner may, if requested to do so by the
employer, by notification in the Official Gazette, exempt, whether
prospectively or retrospectively, any establishment from the
provisions of the EDLI scheme, if he is satisfied that the employees of
such establishment, without making any separate contribution or
payment of premium, enjoy life insurance benefits more favorable
than the benefits under the EDLI scheme. Max New York Life
Insurance Co. Ltd offers Group Term Insurance Scheme, a unique,
simple and flexible scheme, which is a far better alternative to the
Employee Deposit Linked Insurance Scheme (EDLI) because of the
benefits it offers to both the employer and the employee. The
Employees Provident Fund
55
7/27/2019 AMAN VOHRA.DOC
56/116
Organization has approved this scheme as an alternative to EDLI
scheme.
The organization will enjoy the following advantages by subscribing
to the Max New York Life Group Term Insurance as compared to the
EDLI scheme:
The premium payable by the employer under the Max New York Life
group Term Insurance Scheme will be usually less than the total
contribution being paid by the employer to Regional Provident Fund
Commissioner, particularly when average age of the group is low and
the employer is in a low-risk industry.
Flexibility to opt for either a uniform flat cover for all employees or a
graded cover as per notional PF balance.
Well defined and simplified claim process will ensure quicker and
hassle-free claim settlement.
Administrative convenience for additions and deletions of members
with no elaborate.
Credit shield
Credit Shield is a protection cover, which ensures that the loan
amount is paid back to the lender in case of an untimely demise of the
borrower.
Convenient Structuring
56
7/27/2019 AMAN VOHRA.DOC
57/116
The plan can be conveniently structured in a way such that the entire
loan amount or the balance loan amount is paid up in case of the
untimely demise of the borrower. The premiums can also be adjusted
every year according to the reducing loan balance amount.
This plan provides total peace of mind because in case of an untimely
demise of the borrower, the family is not burdened with the loan.
Unit linked group gratuity
Gratuity is a statutory benefit to the employees under the Payment of
Gratuity Act
1972. After the employee has rendered continuous service for at least
five years, he/ she are eligible for 15 days pay for each completed year
of service. The gratuity benefit is payable on cessation of employment
(either by resignation, death, retirement or termination etc), by taking
last drawn basic salary as the basis for the calculation.
Gratuity payment is a statutory liability for an organization and tends
to increase as the salaries and tenure of employment increase
annually. In case of big, developing & growing organization, gratuity
payout can work out to a substantial amount. If the trust pays gratuity
from its current revenue, it becomes difficult to meet the liability, it is
therefore beneficial that a gratuity fund is set up for prudent financialplanning.
Apart from being used as an effective tool to reward loyal employees,
Gratuity can be considered as a powerful tool to retain employees as
well. This can be done by structuring a higher gratuity benefit than the57
7/27/2019 AMAN VOHRA.DOC
58/116
statutory requirements. Max New York Life has made the Group
Insurance portfolio more robust by launching the Unit Linked
Gratuity Plan.
Max New York can now offer you two options of:
Non-unit Linked or Traditional Group Gratuity Plan: Which
facilitates systematic and steady funding of the liability?
Unit Linked Group Gratuity Plan: This facilitates steady funding
and the opportunity of increased returns on investment.
Benefits of the Unit Linked Group Gratuity Plan
Opportunity for growing the fund safely and prudently by managing
the fund investments properly and maximizing the returns on the
investments and thereby bringing down the costs of the funding
liability in the future.
Multiple Flexible Investment options based on the risk taking ability
of the trust.
Life covers for full-anticipated service.
Contributions are exempted from Tax.
Total Transparency in charges and the returns declared.
58
7/27/2019 AMAN VOHRA.DOC
59/116
Complete range of services provided: Taxation, Legal, and
Investment.
Max Suraksha Policy
Max Suraksha Policy is designed by us keeping in mind our social
responsibility. The policy is used to provide protection to social and
rural segments. It provides an insurance cover for 5 years.
KEY BENEFITS
A. On death of life insured: Sum Assured
B. On Maturity: Return of 100% of premiums.
C. Tax benefits:
Super Saver Bond Policy
Super Saver Bond Policy will keep paying you a part of the Sum
Assured at regular intervals, to take care of your periodic foreseen
needs, and the balance keeps growing to take care of your long term
saving needs, as well as provides insurance coverage till maturity.
KEY BENEFITS
59
7/27/2019 AMAN VOHRA.DOC
60/116
On death of life insured: Sum Assured (without deducting
any money back benefits already paid) plus additional death
benefit equal to Sum Assured in case of accidental death.
On survival / maturity:
4th year 10% of Sum Assured
6th year - 10% of Sum Assured
8th year 10 % of Sum Assured
At Maturity 140% of Sum Assured
On Surrender of Policy: Surrender value.
Tax benefits:
o Your premiums are eligible for deduction u/s 80C up to
Rs.100, 000/- every year.
o Your claim amount (from death, on maturity or throughsurrender) is eligible for tax exemption u/s 10(10D).
Amsure Bonus Builder Policy
Amsure Bonus Builder Policyprovides an insurance cover that is
guaranteed for your entire life. This policy also builds cash value,which you can use during your lifetime to fund any unforeseen needs
either by surrendering accumulated or taking a loan. In addition this
policy is also eligible for bonuses.
60
7/27/2019 AMAN VOHRA.DOC
61/116
7/27/2019 AMAN VOHRA.DOC
62/116
LifeIinsurance Advisor or Agents
An agent is the representative of an insurance company who sells
different policies or products to its clients. Another term used for
insurance agents is Advisors.
Today in life insurance companys advisors are known to be the
backbone of the whole system. Advisors/agents do not work on
monthly payroll basis; they receive a certain commission on the
policies they sell to the clients.
The eligibility required to become an advisors/agents is that he/sheshould be 12th pass to operate in urban area and 10th pass for rural
areas. Before a person becomes advisors/agents he/she has to undergo
100 hrs training according to IRDA norms, which is compulsory.
70-75% of profits gained in life insurance business are through
advisors/agents.
Requisites of an Insurance advisors/agents
Any person who is 12th pass and having a minimum age of 18 years
can become insurance advisor but an insurance company wants such
persons who are having a very zeal to earn more and more and should
have a very good communication skill, which can satisfy the
customer. Relationship skill is must in insurance advisor/agents.
MNYL wants mainly five things in an insurance advisor:
62
7/27/2019 AMAN VOHRA.DOC
63/116
7/27/2019 AMAN VOHRA.DOC
64/116
7/27/2019 AMAN VOHRA.DOC
65/116
7/27/2019 AMAN VOHRA.DOC
66/116
7/27/2019 AMAN VOHRA.DOC
67/116
amongst the highest agent pass rate in IRDA examinations and the
agents have the highest productivity among private life insurers.
201 agent advisors have qualified for the Million Dollar Round Table
(MDRT) membership in 2005. MDRT is an exclusive congregation of
the worlds top selling insurance agents and is internationally
recognized as the standard of excellence in the life insurance business.
Having set a best in class agency distribution model in place, the
company is spearheading a major thrust into additional distribution
channels to further grow its business. The company is using a five-
pronged strategy to pursue alternative channels of distribution. These
include the franchisee model, rural business, direct sales force
involving group insurance and telemarketing opportunities, banc
assurance and corporate alliances.
Recruitment and selection of insurance advisors
As we know that Recruitment involves seeking and attracting a pool
of people, from which qualified candidates for the job vacancies can
be chosen. Recruitment sets out the necessary stages to clarify what
kind of person is required, where he/she might found and how to
make right choice.
Recruitment of life insurance agent is also a very impressive criterion
because in this process we need to recruit and select those persons
who bear some special characteristics, which are very necessary to
67
7/27/2019 AMAN VOHRA.DOC
68/116
sell insurance. Life insurance is an intangible product and it needs
insurance advisors who are having tremendous skills to sell an
intangible product.
The key to good selection is preparation. So many people are found of
their ability to pick a good sales person and so often, that person is
good but not at the particular job which needs to be done. It is vital to
be clear about what job needs doing and what kind of person would
do it best; and then to find that person. Once the plan has been
decided, the choice of candidate should be made carefully.
The effectiveness of the unit manager is dependent to great extent on
the effectiveness of the team of advisors supporting him, because an
advisors works under a unit manager. So it is very important to recruit
a very good team of life insurance advisors who can give their best to
increase the effectiveness and the profit of the company. MNYL give
very much stress on it and to recruit only those people as a life
insurance advisor who is having some key skills specifies by the
company.
Further we will show the recruitment and selection procedure of life
insurance advisors in MNYL insurance company ltd, and try to
analyze whether it is the best process of recruitment or company can
do certain new modifications to enhance their recruitment processor
for the increment of companys effectiveness. From the next page, we
will see the recruitment and selection procedure of life insurance
advisors.
68
7/27/2019 AMAN VOHRA.DOC
69/116
7/27/2019 AMAN VOHRA.DOC
70/116
7/27/2019 AMAN VOHRA.DOC
71/116
rejection is must more than acceptance, so an advisor has to be
very strong from the heart and should not depressed soon.
Persuasion: It is one of the very effective qualities, which must
be there in an insurance advisor. It shows the perceiving ability
of an advisor for his job.
Urge to be financially independent: For a job which is
commission based, an urge should be their in an advisor to
become financially independent, then only he would be able to
generate more money for himself and for the company.
Relationship skills: This very necessary element of qualityshown in an advisor by the MNYL because these skills help the
advisor to make good relation from his customers, which is
very necessary for the future of the company.
3. Where will this person be found?
Now, we know what the job is and what kind of person is
required for the job-only we need to find this person. The
persons for this kind of job of a life insurance advisor can be
found at many places through many resources but most of the
insurance agents chosen from the relations and with direct
contacts. The following are the sources from where we can find
out the persons who can become good life insurance agent:
Employment agencies: Employmentagencies can be used as a
wide source for the persons to this job.
71
7/27/2019 AMAN VOHRA.DOC
72/116
Advertising: It also plays a very effective role in finding of the
persons for becoming an insurance agent. MNYL also use this
source.
Educational institutes: They are also one of the main sources
for the company to find out the person as an advisor.
Direct contact with people: MNYL also uses direct contacts
with people and offers business opportunity to them, company
representatives contact to the persons and explains business
opportunity presentation to them.
4. Which person is to be recruited?
The simple answer to this is that the one who fits the
specification and who has the essential characteristics as
defined should be recruited. This implies a structured approach
of three steps. These are:
First, compare companys specification for an advisor with that
of the prospects specifications and remove all these who do not
meet the essential criteria.
Secondly, move on to those areas where the Measuring
Instruments and an assessment at interview are needed. For
instance,
o Education, which should be at least graduate.
o Age, above 30 years.
o Married people are given more importance.
72
7/27/2019 AMAN VOHRA.DOC
73/116
o Doesnt matter male or female.
o Must be living in city for more than 5 years and should
possess high ambitious and zeal to become financially
independent.
Thirdly, involves the identification pattern of behavior, which
will help
in forming judgments.
After all three steps have been followed and care has been taken to see
that the candidate fits into the specific job requirements one can besure of choosing the right candidate for the right job.
Selection and Placement of Insurance Advisors
A selection system is a set of successive screens at any of which an
applicant may be dropped from further consideration. The process of
selection of insurance advisors differs from companies to companiesdepending upon the requirement. In MNYL the applicant goes
through various stages, the chances of selection get better as more and
more stages are cleared.
Selection procedure: The following selection procedure is used by
for the selection of life insurance advisor in MNYL insurance
company.
o Preliminary interview: In this interview the applicant have face-
to-face interaction with the respective Unit Manager and clear
out all queries and doubts about job. After this interview73
7/27/2019 AMAN VOHRA.DOC
74/116
7/27/2019 AMAN VOHRA.DOC
75/116
7/27/2019 AMAN VOHRA.DOC
76/116
7/27/2019 AMAN VOHRA.DOC
77/116
7/27/2019 AMAN VOHRA.DOC
78/116
7/27/2019 AMAN VOHRA.DOC
79/116
7/27/2019 AMAN VOHRA.DOC
80/116
33.00 1 1.5 1.6 82.036.00 11 16.4 18.0 100.0Total 61 91.0 100.0
Missin
g
System6 9.0
Tota
l67 100.0
Analysis:
From the chart above we find that 16.4% of the respondents are
already covered their three years as an agent advisors, which is the
maximum strength out 100%.
Therefore these agent advisors are needed to motivate more, than the
new agents.
80
1.00
6.00
7.00
12.00
14.00
16.00
17.00
18.00
24.00
29.00
30.00
32.00
33.00
36.00
Missing
7/27/2019 AMAN VOHRA.DOC
81/116
7/27/2019 AMAN VOHRA.DOC
82/116
7/27/2019 AMAN VOHRA.DOC
83/116
Q3) PART TIME JOB OPTION IS AN IMPORTANT FACTOR
TO JOIN AS AN AGENT?
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Valid 1.00 30 44.8 47.6 47.62.00 20 29.9 31.7 79.43.00 10 14.9 15.9 95.24.00 3 4.5 4.8 100.0Total 63 94.0 100.0
Missin
g
Syste
m4 6.0
Total67 100.0
83
7/27/2019 AMAN VOHRA.DOC
84/116
7/27/2019 AMAN VOHRA.DOC
85/116
Q4) INCENTIVES PLANS GIVEN TO AGENTS ARE
ACHIVABLE.?
Frequen
cy Percent
Valid
Percent
Cumulativ
e Percent
Valid strongly
disagree1 1.5 1.6 1.6
disagree 9 13.4 14.3 15.9neither
agree nor
disagree
6 9.0 9.5 25.4
agree 20 29.9 31.7 57.1strongly
agree 27 40.3 42.9 100.0
Total 63 94.0 100.0Missing System 4 6.0
Total 67 100.0
85
7/27/2019 AMAN VOHRA.DOC
86/116
strongly disagree
disagree
neither agree nor
disagree
agree
strongly agree
Missing
incentive plan
Analysis:
From the above chart, we can conclude that 40.3% of the respondents
agree that incentive plan of mnyl are effective enough to keep them
motivated & only 1.5% of the respondents feel that incentive plan
doesnt motivate them.
86
7/27/2019 AMAN VOHRA.DOC
87/116
7/27/2019 AMAN VOHRA.DOC
88/116
between 50 to 100. Hence we can conclude that MNYL agent advisors
who are the license holder from the last 3 years are not able to capture
the market after a certain time, may be they dont have further
references or may be they are not willing to work now as an agent
advisor.
Q6) COMMISION EARNED LAST YEAR?
Frequency Percent Valid Cumulative
88
7/27/2019 AMAN VOHRA.DOC
89/116
Percent Percent
Valid 100k 23 34.3 37.7 100.0Total 61 91.0 100.0
Missing System 6 9.0Total 67 100.0
1.00
2.00
3.00
4.00
Missing
COMMISSION_EARND
Analysis:
From the chart above we find that, 34.3% of the respondents surveyed
earned an annual commission of rs.100000. 28.4% of the respondents
earned an annual commission between rs.10000 to rs.50000. Hence
we can conclude that the agent advisors who have sold around 50
89
7/27/2019 AMAN VOHRA.DOC
90/116
policies in a year are earning rs.100000 and they are in good numbers
than those agents advisors who have sold the policies between 50 to
100 annually.
Q7) TRAINING AT MNYL IS EXCELLENT?
Frequen
cy Percent
Valid
Percent
Cumulative
Percent
Valid 1.00 1 1.5 1.6 1.62.00 7 10.4 11.1 12.7
90
7/27/2019 AMAN VOHRA.DOC
91/116
3.00 10 14.9 15.9 28.64.00 19 28.4 30.2 58.75.00 26 38.8 41.3 100.0Total 63 94.0 100.0
Missin
g
Syste
m4 6.0
Total67 100.0
1.002.00
3.00
4.00
5.00
Missing
TRNG_MNYL
Analysis:
From the chart above we find that, 38.8% of the respondents
surveyed, strongly agree that the training at MNYL is excellent,28.8%
people are agree that training at MNYL is excellent, but there are
10.4% of the respondents says that the training is not good at MNYL.
Most of the people are satisfied with the training, because of the work
environment,
91
7/27/2019 AMAN VOHRA.DOC
92/116
7/27/2019 AMAN VOHRA.DOC
93/116
7/27/2019 AMAN VOHRA.DOC
94/116
Q9) COMMISION GIVEN TO AGENTS IS NOT UPTO THE
MARK?
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid partially
agree4 6.0 6.3 6.3
neither agree
nor disagree13 19.4 20.6 27.0
Disagree 11 16.4 17.5 44.4Strongly
disagree 35 52.2 55.6 100.0
Total 63 94.0 100.0Missing System 4 6.0
Total 67 100.0
partially agree
neither agree nordisagree
disagree
strongly disagree
Missing
COMMS_STS
94
7/27/2019 AMAN VOHRA.DOC
95/116
Analysis:
From the above analysis we can conclude that 52.2% of the
respondents disagree with statement, they are satisfied with the
amount of commission that they get from the company.
GENDER OF RESPONDENTS
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid male 32 46 46 46female 35 54 54 100.0Total 67 100.0 100.0
Total 67 100.0
95
7/27/2019 AMAN VOHRA.DOC
96/116
7/27/2019 AMAN VOHRA.DOC
97/116
OCCUPATION OF RESPONDENTS
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid service&busines
s
28 41.8 45.9 45.9
house wives 33 49.3 54.1 100.0Total 61 91.0 100.0
Missing System 6 9.0Total 67 100.0
97
7/27/2019 AMAN VOHRA.DOC
98/116
Analysis:
From the above chart we can conclude that 49.3% of the respondents
are housewives, 41.8% of the respondents belong service and business
class, we can conclude that most of them are woman.
98
service&businesshouse wives
Missing
OCCUPATION
7/27/2019 AMAN VOHRA.DOC
99/116
EDUCATION
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid graduate 38 56.7 60.3 60.3Post
grad.25 37.3 39.7 100.0
Total 63 94.0 100.0
Missing System 4 6.0Total 67 100.0
99
7/27/2019 AMAN VOHRA.DOC
100/116
graduatepost catagory
Missing
EDUCATION
Analysis:
It is clear that the Agents & Advisors at MNYL are mostly graduate
and a less number are post graduate. As MNYL does not recruits
undergraduates, the major target are graduated on
100
7/27/2019 AMAN VOHRA.DOC
101/116
CHAPTER - 8
ROLE & LEARNING ATMNYL
Role & Learning at MNYL
Job at MNYL was to sell a career to people. It means had to recruit
insurance advisors for our company. The kind of people was looking
forward were:
101
7/27/2019 AMAN VOHRA.DOC
102/116
people above the age of 25 years
minimum qualification- plus 2, but we prefer people who have
a graduate degree in any field.
And the categories on which focused were:
Housewives: as they are the home-makers and when they advice
you how to manage your funds then they are highly influential.
Retired people: these are the people who have seen life
therefore their advice are also liked by people.
Voluntary retired people
Self employed people
Activities performed were:
Name Gathering:My 1st activity was name gathering. On the first
day I was taught a pen framing exercise for this. This exercise helps
you in getting 50 names from one person. We were told about the
categories from which we can gather name. Figure given below
depicts the same:
102
7/27/2019 AMAN VOHRA.DOC
103/116
7/27/2019 AMAN VOHRA.DOC
104/116
the library for reading newspapers. I tried to convince them and
invited them to attend the career seminar.
I did cold calling also. I got the directory and we called them,
told them about the career opportunity and tried to invite them for
the career seminar.
After collecting names, we have to find out the names of people those
people from that list who are either housewives, retired people, selfemployed, people who have taken VRS, CAs, CSs, i.e. quality
people and after that inviting them.
INVITING:
My second activity was to invite people to the career seminar. Forthis I had a conversation (telephonic) with the people whose
references I got from people and invited them for the career seminar.
For the conversation to be effective a script was given to us stating
that what all we have to speak, how to convince them to meet us and
how to get further references from them.
After the career seminar we used to give a project-200 booklet to them
which they were supposed to fill. In this they were asked to fill at least
100 names of the people whom they know because advisors are asked
to tap their natural market firstly and touch the reference market later
on.
104
7/27/2019 AMAN VOHRA.DOC
105/116
INITIAL SCREENING:
I had to keep a follow up with the people who attended career
seminar. I used to call them for initial screening, with their filled P-
200s. In the initial screening my job was to see the profile they have
filled in their P-200. Then I had to ask certain simple questions like
who according to him/her is a successful sales person. If find the
person suitable then I had to send him/her to my senior for further
screenings.
PROCEDURE:--
105
7/27/2019 AMAN VOHRA.DOC
106/116
The whole procedure of my job is given in the form of a flow chart so
that it is easy to conceptualize the idea.
DATABASE
TAKE ONE FROM THESE DATA
MADE A TELEPHONE CALL
AND FIXED AN APPOINTMENT
GO TO THAT PERSON
TRY TO CONVINCE THEM
AND CALL THEM TO CAREER SEMINAR OR
FOR AN INTERVIEW WITH SALES MANAGER
TOOK REFERANCE FROM THEM
GIVE THEM FORM AND ALL NECESSARY ELEMENTS
CLOSED THE CALL
CHAPTER-9
Recommendations106
7/27/2019 AMAN VOHRA.DOC
107/116
Max New York Life Insurance has to improve its brand
image, i.e. it has to position itself in the minds of prospects
in a better way in comparisons to others.
It should provide better career opportunities for the
retention of its potential advisors.
Further it has to provide training to its recruited advisors by
good and efficient training methods, which might be a little
bit customized if needed.
It should more emphasize in advertising, as it is the most
powerful tool to position ant brand in the mindsets of
customers.
It should provide online training and for those who are in
jobs and want to become advisors Max New York Life
should provide evening training classes, so that they can
join the training after doing there jobs.
The policies should be made such that it is viewed as
hedging tools to earn risk-free returns i.e. it should be
considered more than just a risk cover.
107
7/27/2019 AMAN VOHRA.DOC
108/116
Company should start creating their own database and give
it to the advisors so that the advisors have more option in
their hand.
108
7/27/2019 AMAN VOHRA.DOC
109/116
CHAPTER 10
CONCLUSION
Life insurance is also now being regarded as a versatile financial
planning tool. Research indicates that Indians have four basic
financial needs during their life asset accumulation (such as
buying a house or car), protecting their family, securing their
childrens education, and provision for their retirement.
India being a country having a huge population of around one
billion people with only 32% of the insurable population in India
possessing life insurance the country has a vast potential, which
has been left untapped till now.
For life insurance company life insurance advisors are the lifeline
and a very huge asset so each company try to recruit and select a
potential force of life insurance advisors because this is the
advisors who generate maximum business for the insurance
company. Life insurance advisors provide a very strong support to
the insurance company and do all possible efforts to generate huge
amount of profit to the company and for him.
In Max New York Life recruitment and selection procedure is
really very impressive. By the help of this process, company
recruits a very good class of advisors. A detail study is done
before starting the recruitment and selection procedure that help
109
7/27/2019 AMAN VOHRA.DOC
110/116
the company to select the best advisors. This study helps us to
understand all the possible aspects related to the Max New York
Life Recruitment and selection procedure.
110
7/27/2019 AMAN VOHRA.DOC
111/116
CHAPTER 11
ANNEXURES
1. Are you an Insurance Agent at MNYL?
Yes No
2. How long are you working for MNYL as an Agent & Advisor?
_________________
3.How do you come to Know about MNYL?
Friends Relatives
Internet Promotions
4. The profession is regarded by you as a part time or full time
profession?
Full time Part time
cant say No answer
111
7/27/2019 AMAN VOHRA.DOC
112/116
5. Are the incentive plans given at MNYL achievable?
strongly agree
Agree
neither agree nor disagree
disagree
Strongly disagree.
6. How many policies did you sell last year?
less than 50 50 - 100
100 - 150 150 & above
7. How much commission did you earned last year?
> 10000 10000 - 50000
50 - 100000 100000 & above
8. Do you agree that training program of agents at MNYL is
excellent?
strongly agree
Agree
neither agree nor disagree
disagree
112
7/27/2019 AMAN VOHRA.DOC
113/116
Strongly disagree
9. Do you agree that personal training is required for Agents &
advisors?
strongly agree
Agree
neither agree nor disagree
disagree
Strongly disagree
10. Do you think that the commission given by MNYL is up to the
mark?
strongly agree
Agree
neither agree nor disagree
disagree
Strongly disagree
Name____________________
Phone no._________________
Gender___________________
Education_________________
Occupation________________
Thank you, for your Valuable Time.
113
7/27/2019 AMAN VOHRA.DOC
114/116
CEOsCOU
NCILMDRT
EXECUTIVECOUNCIL
PAUL COLGAN TROPHY
CENTURION
AGENT OF THE YEAR
PAID CASE, FYC, PERSISTENCY, RIDER, FEFERRALAND CEIP LEADER
CAREER PRODUCER AWARD
CAREER SUCCESS AWARD
HI-FLIER
TEN-A-MONTHER
PREMIUM LEADER
CAREER PROGRESSION OF LIFE ADVISOR IN MAX NEW
YORK LIFE
Fig. 8
Reward and recognitions
114
Member-MAX LIFELiving Legends Galaxy
Head, Training National vice Presiden
Financial Advisor Chief Manager (Training) Regional Vice President
Sr. FinancialConsultant
Trainer Branch Manager
Financial Consultant Sales Manager
Life Advisor
7/27/2019 AMAN VOHRA.DOC
115/116
Fig. 9
CHAPTER 12
BIBLIOGRAPHY
115
7/27/2019 AMAN VOHRA.DOC
116/116
Bibliography
www.maxnewyorklife.com
www.askjeeves.com
www.europages.com
www.directhit.com
http://www.capitalmarket.com/Cmedit/story25-0.asp?
SNo=108003
http://www.rncos.com/Report/FM003.htm
http://www.maxindia.com/pdf/InvestorReleaseQ2FY06.pdf
Kothari, C.R, Research Methodology, New Delhi, Vikas
Publishing House PVT LTD. 2005
Max New York Life brochure of advisors Recruitment.
IC 33 Life Insurance (Revised), Insurance Institute of India
http://www.maxnewyorklife.com/http://www.askjeeves.com/http://www.europages.com/http://www.directhit.com/http://www.capitalmarket.com/Cmedit/story25-0.asp?SNo=108003http://www.capitalmarket.com/Cmedit/story25-0.asp?SNo=108003http://www.rncos.com/Report/FM003.htmhttp://www.maxindia.com/pdf/InvestorReleaseQ2FY06.pdfhttp://www.maxnewyorklife.com/http://www.askjeeves.com/http://www.europages.com/http://www.directhit.com/http://www.capitalmarket.com/Cmedit/story25-0.asp?SNo=108003http://www.capitalmarket.com/Cmedit/story25-0.asp?SNo=108003http://www.rncos.com/Report/FM003.htmhttp://www.maxindia.com/pdf/InvestorReleaseQ2FY06.pdf