Max Newyork Life Insuance 2
description
Transcript of Max Newyork Life Insuance 2
Summer Project Reporton
“STUDY OF MAX NEW YORK LIFE INSURANCE PRODUCT AND PRESENT MARKET SCENERIO”
Submitted to:Ms. Gargi VermaProject Supervisor
Submitted by:Arun Kumar
Roll No. 0708170020MBA- III Sem.September 2009
to
U.P. TECHNICAL UNIVERSITY
DEPARTMENT OF MANAGEMENT STUDIESINSTITUTE OF FOREIGN TRADE & MANAGEMENT
STUDIES, LODHIPUR RAJPUT, DELHI ROAD MORADABAD
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“STUDY OF MAX NEW YORK LIFE INSURANCE PRODUCT AND PRESENT MARKET SCENERIO”
byARUN KUMAR
MBA III SEMESTERSUBMITTED TO DEPARTMENT OF MANAGEMENT STUDIES IN THE PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATIONAT THE
INSITUTE OF FOREING TRADE AND MANAGEMENT
SEPTEMBER 2009
The author hereby grants IFTM, MORADABAD reproduce and to distribute publicly, paper and electronic copies of the project report in whole or in part.
Signature of studentDepartment of Management studies
September 2009
Certified byMs. Gargi Verma
Project Supervisor
Accepted byMs. Majula Jain
Professor and HeadDepartment of Management studies
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ACKNOWLEDGEMENT
Heartiest thanks to Dr. Manjula Jain (H.O.D, Department of Management Studies ,
IFTM, Moradabad) and other faculty members, librarian and all other staffs of my esteemed
institute for their time to time assistance.
I would like to thanks all the customers whom I met and they gave their valuable time to
answer my queries.
I express my heartfelt gratitude toward Ms. Gargi Verma (Project Supervisor) for giving
me the opportunity to do the Project Work and for providing me this learning experience in
this esteemed organization.
Lastly I would express my sincere thanks to all respondents for their cooperation. I am
extremely obliged and highly thankful all those who have contributed to completion of this
project.
Arun Kumar
MBA III Semester
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CONTENTS
ACKNOWLEDGEMENT
INTRODUCTION
SCOPE OF THE STUDY
INDUSTRY PROFILE
COMPANY PROFILE
PRODUCT PROFILE
RESEARCH METHODOLOGY
FINDINGS & ANALYSIS
CONCLUSIONS
SUGGESTIONS
LIMITATIONS
BIBLIOGRAPHY
ANNEXURE
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INTRODUCTION
What Is Insurance and How Does It Fit Into My Plan?
Insurance is the cheapest and most immediate way for a person to displace risks that are too
great to assume individually. I can afford the doctor for an annual check-up, but what if I need
an MRI and surgery? By paying a smaller amount up front, I am moving the responsibility
from my shoulders to a large organization.
When you displace that risk with a large group of others, you are pooling your risk with your
neighbor. The insurance company is a large organization charged with administering that
group of risks in the unforeseen event that something happens to any individual in that pool.
There are all types of risks that we face on a day to day basis. Any of these risks can throw a
monkey wrench in our months and years of frugality, and ruin the spirit of getting rich slowly.
Some of the more concrete risks that we face are getting into a car accident or our house
burning down — known as property and casualty. Some risks are less tangible such as getting
sick, staying sick, and dying — known as life and health.
When I originally wrote J.D., I told him that I saw two potential problems that his readers
faced:
1. Throwing away good money on insurance when your cash flow is better spent in other
areas. This basically means that if you are struggling to make ends meet on a $19k
salary and drowning in credit card debt at the rate of 21%, your first priority should not
be picking out permanent life insurance.
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2. Being unprepared for a catastrophic event which could have been easily displaced.
Someone in my neighborhood died last month. When my wife and I took the casserole
over to his family, I offered to help his wife with the insurance claims forms if she
couldn’t contact her agent. Come to find out her late husband had two kids, a business
with 12 employees to run and no life insurance.
The aim of all insurance is to compensate the owner against loss arising from a variety of
risks, which he anticipates, to his life, property and business. Insurance is mainly of two types:
Life insurance and general insurance. General insurance means Fire, Marine and
Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee,
insurance for employer’s liability, and insurance of motor vehicles, livestock and crops.
The Insurance Act. 1972 and the General Insurance Business (Nationalisation) Act, 1972
govern Fire and Marine Insurance, while the Indian Marine Insurance At, 1963 governs
marline insurance in our country. These laws contain provisions relating to the constitution,
management and winding up of insurance companies and the conduct of insurance business of
all types. Al insurance business in India has been nationalized.
A contract of insurance is a contract by which one party undertakes to make good the loss of
another, in consideration of a sum of money, on the happening of a specified event, e.g. fire
accident or death. Law recognizes insurance as a system of sharing risk too great to be borne
by one individual
Insurance is an oft-misunderstood financial tool. I feel like it’s my responsibility to help folks
out with their questions when I can. Don’t get me wrong, I don’t think I’m the patron saint of
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insurance, but I do think the world would be a slightly better place if I could help people save
money, improve their coverage, or understand their coverage better.
A quick note: I am not giving out tax or legal advice, and you shouldn’t think I am. The
advice I have to offer through this site is generic only because the audience is so diverse. If
you have specific questions, you should consult a financial planner or insurance specialist.
What Steps Should I Take?
Many people have inadequate insurance protection because they don’t know where to begin.
Don’t be frightened. Here are some easy ways to get started:
Figure out what your risks are. Do you have adequate life insurance? Have
construction costs doubled since you last reviewed your homeowner’s policy?
Prioritize the list. Once you have figured out where your exposures to risk are, put
them in order by doing some research. You are more likely to get sick during your
working years than you are to die during the same period, so take care of that first.
Always get more than one expert opinion. Everyone who has an opinion projects the
biases of their background in their words. I don’t care if it’s your father, your
insurance agent of 15 years, or me. Make sure that the advice really rings true to you
and makes sense in your situation. Talking with at least two experts in the field will get
an informed opinion from at least two perspectives.
Use some common sense. If it costs too much to insure your Mustang, maybe it’s time
to sell your baby. If you have a cash surplus of $10k, maybe you should increase the
deductible on your health insurance to reduce premiums.
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Every asset has a value for its owner and also for those who are benefited with the existence
of that asset. Insurance is concerned with the protection of economic value of assets.
All of us are interested in the creation of assets because:
1. All assets have values .
2. They yield income to the owner.
3. They meet some other needs of the owner.
4. They may provide satisfaction of some needs and also yield income to the owner.
Purpose and need for insurance:-
Assets are likely to be destroyed or made non-functional due to accidental occurrences
called perils. Assets can, therefore, be insured. A few examples of perils are: fire,
floods, breakdowns, lightning, and earthquake. Perils are the events. Risks are the
consequential losses or damages.
Possibility of damage to asset caused by any peril is the risk that asset is exposed to.
Risk means uncertainty or unpredictability about future loss or damage, which may or
may not happen. This refers to the losses, which may happen suddenly and
unexpectedly.
This is because of uncertainty about the risk that insurance plays the role.
Insurance becomes relevant only if there are uncertainties of occurrence of event
leading to loss/es. Insurance is done against the contingency of the happening of such
events.
No uncertainty – No insurance.
Insurance as a social security tool:-
United Nations Declaration of human rights 1948 provides :
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“Every one has a right to a standard of living adequate for health and well-being of
himself and his family, including food, clothing, housing and medical care and
necessary social services and the right to security in the event of unemployment,
sickness, disability, widowhood, or other lack of livelihood in circumstances beyond
his control.”
Where the breadwinner of a family dies, family’s income stops to that extent affecting
the economic condition.
Life insurance helps in restoration of the adverse economic condition thus caused.
Thus life insurance business is complementary to the State’s efforts in social
management.
Social security is now a growing concern for all countries; however, the provisions
made in this field vary from country to country.
In India, Article 41 of our Constitution requires the State (within limits of its economic
capacity and development) to make effective provision for securing right to work, to
education and to provide MAX NEW YORK LIFE INSURANCE assistance in case
of unemployment, old age, sickness and disablement.
Parts of the obligations under Article 41 are met by the State through the mechanism
of Life Insurance.
Some social security schemes have been made by the State for economically weaker
sections of the society. MAX NEW YORK LIFE INSURANCE has been directed to
create funds for such schemes.
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Role of insurance in economic development:-
Investments are necessary for economic development.
Life insurance plays a major role in mobilization of MAX NEW YORK LIFE
INSURANCE savings.
Savings out of life insurance fund are utilized in investments for economic growth.
In the absence of insurance cover against fire and engineering risks, business, industry
and trade would be seriously handicapped.
Advantages of life insurance:-
Secured targeted savings – a uniqueness
Life insurance is not merely an investment or a saving device-much more than that.
In any other investment or saving avenue, like bank deposits, savings certificates or
mutual funds or shares and stocks etc., amount of funds available at any time will not
be more than the amount saved, appreciation or interest earned till then. In life
insurance, the amount available is the one that one wished to have at end of the savings
period which may range up to 30 or even more years.
Life insurance has advantages over the other forms of savings:
Facility of nomination and assignment makes the claim settlement easy on
death.
Life insurance involves compulsory savings.
Tax benefits – on premium paid as well as the amount received by way of
claim.
(specified MAX NEW YORK LIFE INSURANCE) Protected against court
attachments.
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SCOPE OF THE STUDY
This research report is being presented in such a way that on every step of the report the
objective of the study remains in the tune. The very emphasis is going to be paid on the scope
and the importance of the study. Insurance may be said as the assurance against the risk. The
Indian insurance industry is growing with a new pace as the multinational organizations like
MAX NEW YORK LIFE INSURANCE as the joint venture with the MAX NEW YORK
LIFE INSURANCE in the life insurance business and Iffco-Tokyo life and non-life business
respectively. The research focuses the attention on the facts that are going to be more crucial
for the Indian insurance industry- MAX NEW YORK LIFE INSURANCE.
Since the India is the second largely populous country in the world that means in the India
there are a number of the potential customers for the insurance business. The research report
summaries all those facts and figures that are of the immense importance for the readers.
The report consists the challenges and the prospects in the life insurance MAX NEW YORK
Life Insurance Company.
In 2003, the Indian insurance market ranked 19th globally and was the fifth largest in Asia.
Although it accounts for only 2.5% of premiums in Asia, it has the potential to become one of
the biggest insurance markets in the region. A combination of factors underpins further strong
growth in the market, including sound economic fundamentals, rising household wealth and a
further improvement in the regulatory framework.
The insurance industry in India has come a long way since the time when businesses were
tightly regulated and concentrated in the hands of a few MAX NEW YORK LIFE 11
INSURANCE sector insurers. Following the passage of the Insurance Regulatory and
Development Authority Act in 1999, India abandoned MAX NEW YORK LIFE
INSURANCE sector exclusivity in the insurance industry in favour of market-driven
competition. This shift has brought about major changes to the industry. The inauguration of a
new era of insurance development has seen the entry of international insurers, the proliferation
of innovative products and distribution channels, and the raising of supervisory standards.
Insurance development and potential
Notwithstanding the rapid growth of the sector over the last decade, insurance in India
remains at an early stage of development. At the end of 2003, the Indian insurance market (in
terms of premium volume) was the 19th largest in the world, only slightly bigger than that of
Denmark and comparable to that of Ireland.2 This was despite India being the second most
populous country in the world as well as the 12th largest economy. Yet, there are strong
arguments in favour of sustained rapid insurance business growth in the coming years,
including India’s robust economic growth prospects and the nation’s high savings rates
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INDUSTRY PROFILE
Max New York is UK’s largest and the world’s fifth largest insurance Group. It is one of the
leading providers of life and pensions products to Europe and has substantial businesses
elsewhere around the world. With a history dating back to 1696, Max New York has a 40
million-customer base worldwide. It has more than £364 billion of assets under management.
In India, Max New York has a long history dating back to 1834. At the time of nationalisation
it was the largest foreign insurer in India in terms of the compensation paid by the
Government of India. Max New York was also the first foreign insurance company in India to
set up its representative office in 1995.
In India, Max New York has a joint venture with Dabur, one of India's oldest, and largest
Group of companies. A professionally managed company, Dabur is the country's leading
producer of traditional healthcare products.
In accordance with the government regulations Max New York holds a 26 per cent stake in
the joint venture and the Dabur group holds the balance 74 per cent share.
With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), Max New York
has initiated an innovative and differentiated sales approach to the business. Through the
“Financial Health Check” (FHC) Max New York’s sales force has been able to establish its
credibility in the market. The FHC is a free service administered by the FPAs for a need-based
analysis of the customer’s long-term savings and insurance needs. Depending on the life stage
and earnings of the customer, the FHC assesses and recommends the right insurance product
for them.
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Max New York pioneered the concept of Banc assurance in India, and has leveraged its global
expertise in Banc assurance successfully in India. Currently, Max New York has Banc
assurance tie-ups with ABN Amro Bank, American Express Bank, IndusInd Bank, Centurion
Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks
in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra nks. Pradesh and
Maharashtra and regional Bank When Max New York entered the market, most companies
were offering traditional life products. Max New York started by offering the more modern
Unit Linked and Unitised With Profit products to the customers, creating a unique
differentiation. Max New York’s products have been designed in a manner to provide
customers flexibility, transparency and value for money. It has been among the first
companies to introduce the more modern Unit Linked products in the market. Its products
include: whole life (LifeLong), endowment (Lifesaver, Easy Life Plus, Lifesaver Plus), child
policy (Young Achiever, Save Guard Junior, Max New York Little Master) single premium
(Life Bond and Life Bond Plus), Pension (Pension Plus), Term (Life Shield), fixed term
protection plan (Freedom Life Plan) and a tax efficient investment plan with limited premium
payment term (LifeBond5). Max New York products are modern and contemporary unitised
products that offer unique customer benefits like flexibility to choose cover levels, indexation
and partial withdrawals.
Max New York’s Fund management operation is one of its key differentiators. Operating from
Mumbai, Max New York has an experienced team of fund managers and the range of fund
options includes Unitised With-Profits Fund and seven Unit Linked funds: - Protector Fund,
Secure Fund, Balanced Fund, Growth Fund, Enhancer Fund, Index Fund and Bond Fund.
Max New York has 193 Branches in India (including rural branches) supporting its
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distribution network. Through its Banc assurance partner locations, Max New York products
are available in more than 2,795 locations across India.
Max New York is also keen to reach out to the underprivileged that have not had access to
insurance so far. Through its association with Basic (a micro financial institution) and other
NGOs, it has been able to reach the weaker sections of the society and provide life insurance
to them.
Max New York has been felicitated with the "Bronze Award for Excellence in People
Management" by Grow Talent Company Limited and Business world. This honour is given to
Max New York based on the ranks received in top 25 lists of the Great Place to Work India
studies conducted in the last four years. Max New York was ranked 12th in 2004, 14th in
2005 and 13th in the year 2006.
The story of insurance is probably as old as the story of mankind. The same instinct that
prompts modern businessmen today to secure themselves against loss and disaster existed in
primitive men also. They too sought to avert the evil consequences of fire and flood and loss
of life and were willing to make some sort of sacrifice in order to achieve security. Though the
concept of insurance is largely a development of the recent past, particularly after the
industrial era – past few centuries – yet its beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company on
Indian Soil. All the insurance companies established during that period were brought up with
the purpose of looking after the needs of European community and Indian natives were not
being insured by these companies. However, later with the efforts of eminent people like Babu
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Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian
lives were being treated as sub-standard lives and heavy extra premiums were being charged
on them.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started
functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started
its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring MAX NEW YORK LIFE INSURANCE
1956: 245 Indian and foreign insurers and provident societies are taken over by the central
government and MAX NEW YORK LIFE INSURANCE formed by an Act of Parliament,
viz. MAX NEW YORK LIFE INSURANCE Act, 1956, with a capital contribution of Rs. 5
crore from the Government of India.
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The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz.
*The National Insurance Company Ltd.,
*The New India Assurance Company Ltd.,
*The Oriental Insurance Company Ltd. and
*The United India Insurance Company Ltd. GIC incorporated as a company.
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1. REGULATION OF THE INSURANCE BUSINESS
Regulation of insurance companies began with the Indian Life Assurance Companies Act,
1912. In 1938, all insurance companies were brought under regulation when a new Insurance
Act was passed. It covered both life and non-life insurance companies. It clearly defined what
would come under life and non-life insurance business.
The Act also covered, among others, deposits, supervision of insurance companies,
investments, commissions of agents and directors appointed by the MAX NEW YORK LIFE
INSURANCE holders This piece of legislation lost significance after the insurance business
was nationalized in 1956 (life) and 1972 (non-life), respectively.
When the market was opened again to private participation in 1999, the earlier Insurance Act
of 1938 was reinstated as the backbone of the current legislation of insurance companies, as
the IRDA Act of 1999 was superimposed on the 1938 Insurance Act. By mid-2004, there were
21 private sector insurance companies operating in India, alongside eight MAX NEW YORK
LIFE INSURANCE sector companies. Of these, there were 14 life insurance companies
comprising one MAX NEW YORK LIFE INSURANCE (the old monopoly) and 13 private
companies. Most private companies had foreign participation up to the permissible limit of
26% of equity.
2. A BRIEF HISTORY
The business of insurance started with marine business. Traders, who used to gather in
Lloyd’s coffee house in London, agreed to share the losses to their goods while being carried
by ships. The losses used to occur because of the pirates who robbed on the high seas or
because of bad weather spoiling the goods or sinking the ships. The first insurance Policy was
issued in1583 in England. In India insurance began in 1870 with life insurance being
transacted by an English company, “The European and the Albert”.
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The first Indian insurance company was the Bombay mutual Insurance Society Ltd, formed in
1870. This was followed by the Oriental Life Assurance Company in 1874, the Bharat in 1896
and the Empire of India in 1897.
Later the Hindustan Cooperative was formed in Calcutta, the united India in Madras, the
Bombay Life in the Bombay, the National in Calcutta, the New India in Bombay, the Jupiter
in Bombay and the Lakshmi in the New Delhi. These were all Indian companies, started as the
result of the swadeshi movement in the early 1900s. by the year 1956, when the life insurance
business was nationalized and the Life Insurance Corporation of India was formed on 1st
September 1956, there were 170 companies and 70 provident fund societies transacting life
insurance business in India.
After the amendments to the relevant laws in 1999, the MAX NEW YORK LIFE
INSURANCE did not have the exclusive privilege of doing life insurance business in India.
By 31.3.2002, eleven new insurers had been registered and had begun to transact life
insurance business in India.
The business of insurance is related to the protection of the economic values and the assets.
Every asset has a value. The asset is valuable to the owner, because the owner expects to get
some benefits from it.
The benefit may be an income or something else. It is a benefit because it meets some of his
needs, in the factory or cow, the product generated is sold and income is generated. In case of
a motor car, it provides comfort and convenience in transportation. There is no direct income.
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Companies at present scenario:-
Bajaj Allianz
Bajaj Auto Ltd.
Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj
Trading Corporation. Initially it started by assembling two and three wheelers in collaboration
with Piaggio of Italy. After the expiry of the agreement in 1971 the two and three wheelers
acquired the brand name of Bajaj. The strength of the company lies in its strong brand image
and ability to offer value for money products leveraging on its large-scale operations.
Bajaj is one of India's largest two and three - wheeler manufacturer and the fourth largest
manufacturer of two-wheeler in the world, with an annual turnover of Rs. 42.16 billion.
Allianz AG
Allianz group was founded in 1890 and is one of the world's leading insurance companies
with over 117 years' experience in insurance and related services. It is also the largest insurer
in Europe. Allianz group has multi-local structure and presence in over 70 countries. The key
business areas of Allianz group include General Insurance (property, engineering, marine,
motor, casualty and miscellaneous), Reinsurance, Risk Management, Life & health insurance,
Asset Management and Pension Funds Management.
Cornhill Insurance in the United Kingdom, Fireman's Fund in the United States of America,
AGF in France, RAS s.p.a in Italy, MMI in Australia are some companies under Allianz
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group. Rated 'AAA' by S&P it has assets over 670 billion DM (Rs. 17,160 billion) under its
management with employee strength of over 1, 05,700.
The Joint Venture
Bajaj Allianze Life Insurance Co. Ltd. Company is a joint venture between Allianze AG and
Bajaj Auto Limited. Characterized by global presence with a local focus and driven by
customer orientation to establish high earnings potential and financial strength, Bajaj Allianze
Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received the
Insurance Regulatory and Development Authority (IRDA) Certificate of Registration (R3) No
116 on 3rd August 2001 to conduct Life Insurance business in India.
MAX NEW YORK LIFE
Max New York Plc
Max New York Plc is the largest life and general insurance group of UK and the world's
seventh largest insurer with world wide premium income and retail investment sales of £28
billion and more than £200 billion in assets under management. Max New York Plc is the
holding company of Max New York group of companies which is in to life assurance
business, long term savings, all classes of general insurance business and fund management.
The group has 64,000 employees serving 25 million customers.
Dabur India Limited
Established in 1884, Dabur is one of India's oldest and largest group of companies with
interests in ayurvedic specialities, pharmaceuticals, personal care and healthcare products. The
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annual sales turnover of the group is over Rs. 1200 crores. For more than a century Dabur has
worked in active collaboration with nature to provide the best of herbal health and personal
care products to its consumers.
The Joint Venture
Max New York Life Insurance Company, a joint venture between Dabur India and CGU, a
wholly owned subsidiary of Max New York Plc, is capitalized at Rs. 110 crore. Mr. Stuart
Purdy is the managing director of Max New York Life.
Max New York Life has tied up with ABN Amro, Canara Bank, Laxmi Vilas Bank and
American Express for distribution of its products
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OTHER INSURANCE COMPANY
HDFC Standard Life Insurance Company Limited
HDFC
Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the
largest residential mortgage finance institution in the country. The corporation has had a series
of share issues raising its capital to Rs. 119 crores. The net worth of the corporation as on
March 31, 2000 stood at Rs. 2,096 crores.
HDFC operates through 75 locations throughout the country with its Corporate Headquarters
in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service
associates in Kuwait, Oman and Qatar.
Standard Life
Standard Life is Europe's largest mutual life assurance company. Standard Life, which has
been in the life insurance business for the past 175 years, is a modern company surviving quite
a few changes since selling its first Policy in 1825. The company expanded in the 19th century
from its original Edinburgh premises, opening offices in other towns and acquiring other
similar businesses.
Standard Life currently has assets exeeding over £70 billion under its management and has the
distinction of being accorded "AAA" rating consequently for the past six years by Standard &
Poor.
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The Joint Venture
HDFC Standard Life Insurance Company Limited was one of the first companies to be
granted BAJAJ ALLIANZ by the IRDA to operate in life insurance sector. Each of the JV
player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by both
CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and
Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset
base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC
is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a
stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.
ICICI Prudential Life Insurance Company
ICICI
ICICI Ltd., was established in 1955 by the World Bank, the Government of India and the
Indian Industry, to promote industrial development of India by providing project and
corporate finance to Indian industry.
. Since inception, ICICI has grown from a development bank to a financial conglomerate and
has become one of the largest BAJAJ ALLIANZ financial institutions in India. ICICI has thus
far financed all the major sectors of the economy, covering 6,848 companies and 16,851
projects. As of March 31, 2000, ICICI had disbursed a total of Rs. 1,13,070 crores, since
inception
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Prudential plc.
Prudential plc. Was founded in 1848. Since then it has grown to become one of the largest
providers of a wide range of savings products for the individual including life insurance,
pensions, annuities, unit trusts and personal banking. It has a presence in over 15 countries,
and caters to the financial needs of over 10 million customers. It manages assets of over US$
259 billion (Rupees 11,39,600 crores approx.) as of December 31, 1999.
Prudential is the largest life insurance company in the United Kingdom (Source: S&P's UK
Life Financial Digest, 1998). Asia has always been an important region for Prudential and it
has had a presence in Asia for over 75 years. In fact Prudential's first overseas operation was
in India, way back in 1923 to establish Life and General Branch agencies.
The Joint Venture
ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The
authorized capital of the company is Rs.2300 Million. The paid up capital is Rs. 1900 Million.
The Company is a joint venture of ICICI (74%) and prudential plc UK (26%).
The Company was granted Certificate of Registration for carrying out Life Insurance business,
by the Insurance Regulatory and Development Authority on November 24, 2000. It
commenced commercial operations on December 19, 2000, becoming one of the first few
private sector players to enter the liberalized arena.
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ING Vysya Life Insurance Company Pvt Limited
About Vysya Bank
Vysya Bank is one of the most aggressive of the older-generation private-sector banks. With
the investment from a foreign partner, Bank Brussels Lamberts, in the equity of the bank, it is
expected to gear up to effectively fight competition in the new liberalized era. Vysya Bank is a
big player given its significant branch penetration. It has a very high degree of retail focus
with good customer service. The Vysya Bank is one of the largest private banks in India with
around 2 million customers and 480 retail outlets.
About ING
ING Group, with an asset base of over Rs. 28,42,000 crore is a global financial institution of
Dutch origin, which is active in the field of banking, insurance and asset management in more
than 60 countries, with nearly 90,000 employees. ING comprises a broad spectrum of
prominent companies working close to the customer, many of them operating under their own
brand names.
ING Insurance
ING Insurance is the world’s second largest life insurance company as per latest Fortune
rankings with a client base of over 50 million since it acquired ReliaStar and Aetna Financial
Services earlier this year. It is the third largest financial services company in Europe and the
tenth largest financial services company in the World.
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The Joint Venture
ING has joined hands with Vysya Bank, one of India's leading private sector banks, to form
ING Vysya Life Insurance, which is expected to be the first Bank assurance venture in the
country. Together they have roped in GMR group, which has wide ranging interests in fields
such as power generation, infrastructure, manufacturing, software and banking.
As per the JV agreement, Vysya Bank would hold 49 per cent stake, ING 26 percent, and the
GMR Group would hold 25 per cent. The paid up capital of the joint venture is Rs. 110 crore.
The company which is headquartered at Bangalore has commenced its operations at Mumbai
and Delhi. Mr. Yvo Metzelaar is the Chief Executive Officer cum Managing Director of ING
Vysya Life Insurance.
Life Insurance Corporation of India
Life Insurance Corporation of India has been established by an act of the Parliament and
started functioning from 1-9-1956. It is an autonomous body authorized to run the life
insurance business in India with its Head Office at Mumbai.
It has 7 zonal offices, over 100 Divisional offices and 2048 branches in India, with around
6.51 lakh agents. The Corporation also has offices in London, Fiji and Mauritius.
The chairman of Life Insurance Corporation of India is Mr. S B Mathur
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Max New York Life Insurance Company Limited
Max India Limited
Starting early 1999, Max has refocused itself into building a company based on the knowledge
platform that India represents. Today, Max is building businesses in the emerging knowledge-
based areas of Healthcare, Financial Services and Information Technology. It has grown
independently on its own and by joining hands in partnerships with major international
companies where specific business opportunities are best addressed through joint ventures.
Max India has a significant presence in the most vital & fast growing sectors of the Indian
Economy, Telecommunication services, Electronic components distribution, Speciality Plastic
Films and Bulk Pharmaceuticals. These diversified businesses are organized as Max India's
100% owned Business Units (BU) and equity sharing Joint Ventures (JV). Each of the BUs &
JVs, fully empowered to lead their operations, have grown and obtained leadership position in
their respective industries by providing high quality products and services, working closely
with their customers.
New York Life International Inc.
In 1998 New York Life International Inc., a Fortune 100 company, had total revenues
amounting to almost US $ 20 billion, and was rated the number one provider of new life
insurance poBAJAJ ALLIANZies in the United States. In the same year, New York Life was
also the leader in insurance sales to the growing Indian community in the Unites States.
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The Joint Venture
Max New York Life is a partnership between Max India Limited, one of India's leading multi-
business corporations and New York Life, a Fortune 100 company.
The paid-up capital of the Joint Venture is Rs. 250 crores and the CEO and Managing Director
of Max New York Life Insurance Company is Mr. Anuroop 'Tony' Singh.
MetLife India Insurance Company Ltd.
Metropolitan Life
MetLife India proudly carries a 135 year old legacy of helping build financial freedom for
every one. .
Metropolitan Life Insurance Company ("MetLife"), a subsidiary of MetLife, Inc. (NYSE:
MET), is a leading provider of insurance and other financial services to individual and
institutional customers. The MetLife Companies serve approximately 12 million individuals in
the U.S. and companies and institutions with 33 million employees and members, including
88 of the Fortune 100 companies. MetLife also has, through its subsidiaries and affiliates,
international insurance operations in 12 countries. For more information about MetLife, please
visit the company's web site at www.metlife.com.
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The Joint Venture
MetLife India Insurance Company Private Limited ("MetLife India") is the Indian affiliate of
Metropolitan Life Insurance Company ("MetLife"), the number one life insurer in the U.S,
based on approximately US$ 2.4 trillion in life insurance in-force as of December 31, 2002.
MetLife India was incorporated in April 2001 as a joint venture between MetLife International
Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other
private investors.
MetLife India benefits from its affiliated company's 135-year old expertise and track record of
establishing successful operations in emerging markets, in addition to the unique strengths of
its Indian promoters. MetLife India offers a range of innovative products and aims to build
financial freedom for everyone. MetLife India is headquartered in Bangalore and has offices
in 9 cities and an additional 1,000 outreach points through its distribution channel partners.
For more information about MetLife India, please visit the company's web site at
www.metlifeindia.com.
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OM Kotak Mahindra Life Insurance
Kotak Mahindra Bank Ltd.(KMBL)
Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak
Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited
on November 2, 1985 and obtained its ‘Certificate of Commencement of Business on
February 11, 1986.
With the liberalization of the Indian economy and the opening up of the financial markets, the
Company diversified and started offering a wider spectrum of financial services.
Old Mutual plc.
Old Mutual plc. is a leading financial services provider in the world, providing a broad range
of financial services in the area of insurance, asset management and banking. It is a leading
life insurer in South Africa, with more than 30% market share. The partnership with Old
Mutual plc provides the Kotak Mahindra group with an international perspective and expertise
in the life insurance business.
The Joint Venture
The joint venture OM Kotak Mahindra Life Insurance started off with an initial net worth of
Rs. 150 crore, with 74:26 stake between KMBL and OM
The Life Insurance business offers KMBL with an opportunity to leverage its core strengths of
Wealth Management and Retail Distribution
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SBI Life Insurance Company Ltd
SBI
State Bank of India (SBI) started its business way back in 1806 as Bank of Bengal. Today SBI
is the largest bank in the country with more than 9000 branches. It has seven associate banks
and together they have 30% of the Indian market share.
It has the distinction of being the strongest and amongst the most profitable bank in the
country. Net worth of SBI as on March 2000 stood at Rs. 12146 crore (US$ 2784 mn) and it
has a deposit base of Rs 19,680.3 crore (US$45,121mm).
The insurance venture, SBI-Life, is a step aimed at being a universal bank as it already has
subsidiaries for housing finance, merchant banking, mutual funds and primary dealership in
government papers and factoring businesses.
Cardiff
BNP Paribas, which is one among the three largest banks in Europe, is the holding company
of Cardiff. BNP's presence in India dates as far back as 1860 and has 9 branches here.
Cardiff, the insurance arm of BNP Paribas was set up in 1973 that specializes in long-term
savings, protection products and creditor insurance. In 1999 its premium income stood at US$
4 billion, with assets worth over US $ 23 billion under its management
Cardiff based in France, has the expertise for selling insurance products through banks and has
operations in over 20 countries.
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Joint Venture
India's largest bank SBI and Cardiff S.A a leading insurer in France came together to form
SBI Life. It would be a 74:26 venture; with Cardiff the foreign partner contributing 26% in the
paid capital of Rs. 250 crore.
SBI would market the insurance products through select branches of SBI and its seven
associate banks. Mr. R. Krishnamurthy is the CEO of SBI Life.
Tata AIG Life Insurance Company Limited
TATA Group
Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover
exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over
years that it is a value driven company and has pioneering contributions in various fields
including insurance, aviation, iron and steel. Tata companies have forged a number of global
alliances with eminent international partners in several fields. In terms of capital market
performance as many as 40 listed Tata companies account for nearly 5% of the total market
capitalization of all listed companies. The Group has had a long association with India's
insurance sector having been the largest insurance company in India prior to the
nationalisation of insurance.
TATA Group in Insurance
The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., a group
company incorporated way back in 1919. Government of India took over the management of
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this company as a part of nationalization of general insurance companies in 1972. Not deterred
by the move, Tata group have ventured into risk management services having tied up with
AIG group, back in 1977, with the incorporation of Tata AIG Risk Management Services Pvt.
Ltd.
AIG
American International Group, Inc is the leading U.S. based international insurance and
financial services organization and the largest underwriter of commercial and industrial
insurance in the United States. Its member companies write a wide range of commercial and
personal insurance products through a variety of distribution channels in over 130 countries
and jurisdictions throughout the world.
AIG's Life Insurance operations comprise of the most extensive worldwide network of any life
insurer. AIG's global businesses also include financial services and asset management,
including aircraft leasing, financial products, trading and market making, consumer finance,
institutional, retail and direct investment fund asset management, real estate investment
management, and retirement savings products.
The Joint Venture
Tata AIG Life Insurance Co. Ltd. is capitalized at Rs. 185 crores of which 74 per cent has
been brought in by Tata Sons and the American partner brings in the balance 26 per cent. Mr.
George Oommen has been named managing director of Tata AIG Life.
Tata-AIG plans to provide broad array of life insurance plans to cover to both individuals and
groups.
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The Insurance Act, 1972 and the General Insurance Business (Nationalisation) Act,
1972 govern Fire and Marine Insurance, while the Indian Marine Insurance At, 1963
governs marine insurance in our country. These laws contain provisions relating to
the constitution, management and winding up of insurance companies and the
conduct of insurance business of all types. All insurance business in India has been
nationalized.
A Contract of insurance is a contract by which one party undertakes to make good the
loss of another, in consideration of a sum of money, on the happening of a specified
event, e.g. fire accident or death. Law recognises insurance as a system of sharing
risk Insurance is a huge business in the United States. As in the case of liability auto
insurance, some insurance is mandated by law and in most states you have to show
proof of insurance to obtain a license. Homeowner’s insurance is required from the
lending institution as a condition of obtaining a home mortgage. Medical insurance is
necessary to reduce the financial impact of uncontrollable events. Life insurance
provides financial security to love ones in the event of death. Annuities are basic to
retirement planning. Business insurance protects against business interruptions and
asset losses. The list goes on and on.
Insurance has also become important to our national economy as well. The billions of
dollars of annual premiums paid into insurance companies are invested in a wide
range of investments to secure sufficient earnings to meet the contracted coverages.
In fact, the insurance industry is reported to be second only to the commercial
banking industry as a source of investment funds.
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To the average untrained person, insurance as a whole is mind boggling and, since it
involves your dollars, it is often scary. There’s no other way to put it. Insurance can
be scary. There are so many choices for your money and so many people chasing
after it that often times it is difficult to decide the best option for you to take. And talk
about options! Life insurance, annuities, variable products, continued care insurance,
etc., are all voluntary options. You don’t have to invest in any of these but you want
to for a myriad of reasons. Security for those you love, better return on the
investment, less risk, retirement, fear of old age, etc., are all good reasons to look at a
vehicle to provide those results. Insurance can provide for those reasons but it’s not
free. It’s scary!
Through-out most peoples lives they will have to make some sort of decision relating
to these options and will need to make these decisions again and again. New and
better insurance products, interest rate changes, family changes, etc., will cause you
to relook at your position many times. You want to do the right thing each time but,
indeed, it is scary!
From a purely financial perspective, both personal and business, insurance plays a
very important role in preserving those hard earned dollars you have tried so hard to
accumulate and you need to make the best choice possible with each of those dollars.
Our purpose is to give you some insight into this voluntary sector of insurance. We
will not attempt to discuss auto insurance, mortgage insurance, or other similar
insurance purposes. Similarly, we will not attempt to guide you into one product over
another or suggest that you trade in your certificate of deposit for an insurance
36
product. Our purpose is to inform you of the various products so you can make an
informed decision when the time comes.
At some time you may be asked to exchange one life insurance product for another.
Insurance is a constantly evolving industry and there are many new products on the
market from when you may have entered into your current policy and you may be
shown what appears on the surface to be a better deal. Is it a better deal? Should you
exchange your old policy for a new one? That is difficult to say without a thorough
review of both your old policy and the new policy but particularly your old policy.
The National Association of Securities Dealers has a very good discussion “…to help
you evaluate whether the exchange is right for you, and how you can find out what
you need to know to make an appropriate decision.”
This material contains only general descriptions and is not a solicitation to sell any
insurance product or security, nor is it intended as any financial or tax advice. For
information about specific insurance needs or situations, contract your insurance
agent. Our articles are intended to assist in educating you about insurance generally
and not to provide personal service. They may not take into account your personal
characteristics such as budget, assets, risk tolerance, family situation or activities
which may affect the type of insurance that would be right for you. In addition, state
insurance laws and insurance underwriting rules may affect available coverage and its
costs. If you need more information or would like personal advice you should consult
an insurance professional. You may also visit your state’s insurance department for
more information. too great to be borne by one individual
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The options for purchasing Insurance are plentiful with choices ranging from
choosing the Insurance Company, searching for an agent, deciding on the deductible,
amount of coverage, beneficiaries and dependent coverage. Once you have a child the
offers start pouring in on insuring your new arrival. Does the child need a policy or
can he or she be added to an existing policy?
For couples planning on marrying they need to decide which Employer offers the best
coverage. When you merge your belongings into one household as cohabitants the
need for a renter’s policy, if one is not already in place, becomes an issue. When
settling into your new residence immediately start photographing the big-ticket items,
and create a notebook recording the model and serial numbers. I prefer Analysis Pads
that have columns for easy record keeping. You can also keep this data on the
owner’s manual with all manuals in one location for easy access.
Several months ago my home was burglarized. I received from the Police a Victim’s
Supplemental Property Loss Report. The categories on this report include quantity,
article, serial number, brand, model number, miscellaneous description – color, size,
etc. and fair dollar value. I have been renting for seven years a house that is a duplex
and was not insured. I now have Renter’s and Earthquake Insurance.
I learned while serving on a jury this summer that a robbery occurs with force while a
burglary is the unlawful entry of premises. It was alarming to learn the number of
members on the jury panel that answered yes to being a victim of a crime. Not one of
these crimes ended with the capture of the culprit. This is another reason why
insuring one’s property is a must in this day and age.
38
When a family member turns 15 or 16 in most states they are eager to obtain a
driver’s license or student permit. A few months before this event takes place the
family needs to look over their automobile policy and make changes to the coverage
to cover the additional driver in their household.
On some policies when a child turns the legal age of eighteen they may no longer
qualify to be on their parent’s insurance policy. If the graduate is going onto college
the health and auto policies need to be consulted to determine coverage options.
With many Insurance companies you have the option of paying the entire premium
in one payment, or make monthly payments. You can have the payments deducted
from your checking account or pay at your agent’s office, mail in a check to the
company or use their automated telephone system and perhaps even pay online.
There are choices galore in determining your Insurance options. Bellaonline’s
Insurance Site will help guide you in the right direction to take care of all your
Insurance needs. Topics covered will include:
None of us know what is going to happen to us in the future but what we do know is
that accidents happen. This is the simple idea that the insurance industry is founded
on. You never know when you might crash your car or come home to find someone
has broken into your home. But what you can do is protect yourself financially
against something going wrong at some point in the future. This protection is what we
call insurance.
39
Insurance can seem complicated but the basic principles are really quite
straightforward.
An insurance company works out how likely it is that an accident or event will
happen and what it would cost to put it right.
Based on this, the insurance company sets what is know as a premium. This is
the amount it asks you to pay in order to protect yourself against the accident
or event. The cost of the premium is often spread so you pay it on a monthly
basis.
If whatever it is you have insured yourself against happens, you then make a
claim to your insurance company and it pays out the agreed amount.
40
COMPANY PROFILE
INTRODUCTION OF MAX NEW YORK
MAX NEW YORK - THE SOLUTION OF LIFE
Max New York is not only a leading company in the unit-linked life insurance market. The Max
New York brand also represents a new philosophy of customer service, responsibility to the
environment, employees and other global aspects affecting all of us.
Max New York means -
LIFE
VITALITY
SUCCESS
Max New York Life Insurance Company Ltd. is a joint venture between Max India
Limited, one of India's leading multi-business corporations and New York Life International,
the international arm of New York Life, a Fortune 100 company. The company has positioned
itself on the quality platform. In line with its vision to be the most admired life insurance
company in India, it has developed a strong corporate governance model based on the core
values of excellence, honesty, knowledge, caring, integrity and teamwork.
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Incorporated in 2000, Max New York Life started commercial operation in 2001. In line with
its values of financial responsibility, Max New York Life has adopted prudent financial
practices to ensure safety of policyholder's funds. The Company's paid up capital as on 30th
April, 2009 is Rs 1782 crore.
Max New York Life has multi-channel distribution spread across the country. Agency
distribution is the primary channel complemented by partnership distribution, bancassurance,
alliance marketing and dedicated distribution for emerging markets. The Company places a lot
of emphasis on its selection process for agent advisors, which comprises four stages -
screening, psychometric test, career seminar and final interview. The agent advisors are
trained in-house to ensure optimal control on quality of training. The company currently has
around 92,667 agent advisors at 712 offices across 389 cities. The company also has 36
referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships
each. Max New York Life has put in place a unique hub and spoke model of distribution to
deepen our rural penetration. This is the first time such a model has been put in place for rural
marketing of insurance. The company has 137 offices dedicated to rural areas.
Max New York Life offers a suite of flexible products. It now has 37 products covering both
life and health insurance and 8 riders that can be customized to over 800 combinations
enabling customers to choose the policy that best fits their need. Besides this, the company
offers 6 products and 7 riders in group insurance business.
Max New York is a world leader in financial services. With more than 300 years’ of history,
Max New York is now the world’s fifth largest insurer and the largest in the UK. Our main
activities are long-term savings, fund management and general insurance. It has premium
42
income and investment sales from continuing operations of about £30 billion and over £240
billion of assets under management.
Max New York became the new name for the former CGNU in July 2002. The change
represented part of the group’s planned journey towards being recognized as a world-class
financial services provider.
Today the Max New York brand is alive and trading in more than 20 countries with Max New
York now the world’s fifth-largest insurance group (based on gross worldwide premiums for
the year ended 31 December 2005).
Max New York is 14th in the “Great Places to Work” survey in 2004 and ranked highest
among insurance companies, making it the best insurer to work for in India. This is the third
year that Max New York Life Insurance remains the top 25 “great place to work” in a survey
of more than 200 companies administered by Grow Talent Company Ltd. along with Great
Places to Work® Institute, Inc. and Business World magazine.
Max New York India has created through the active contribution of its employees. These lines
not only define the way we live and work but also serve as a reminder to deliver the best to
our customers, shareholders, colleagues, partners & employees at all times.
Embedded in this vision are the core values of Integrity, Customer centricity, Passion for
winning, Innovation and Empowered team that we have collectively defined and committed to
working towards Max New York has been operating in Asia since 1880 and we are dedicated
to the provision of long-term savings products and investments, with the commitment to serve
our customer in trust.
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Max New York operating in the key markets of Singapore, India, Hong Kong and China, our
vision is to become the leading provider of financial services differentiated by our multi-
distribution strategy across these chosen markets.
Most private life insurance companies launched traditional products in India, very similar to
those offer by MAX NEW YORK LIFE INSURANCE. Max New York, however, took a
different approach and was among the first private insurers in the country to introduce Unit
Linked products in the market, offering its customers value for money products that are
modern, flexible and transparent. Max New York launched a life insurance and long-term
savings joint venture in June 2002 with Dabur Group, 1 of India’s oldest and most respected
business houses. We are now among the top 12 life insurers in the Indian market.
A unit linked product fund is a form of pooled investment where you purchase units.
Premiums usually invested as units in stock market funds. The value of the Policy goes up &
down in line with the performance of the particular fund
Max New York is UK’s largest and the world’s fifth largest insurance Group. It is one of the
leading providers of life and pensions products to Europe and has substantial businesses
elsewhere around the world. With a history dating back to 1696, Max New York has a 40
million-customer base worldwide. It has more than £364 billion of assets under management.
In India, Max New York has a long history dating back to 1834. At the time of nationalisation
it was the largest foreign insurer in India in terms of the compensation paid by the
Government of India. Max New York was also the first foreign insurance company in India to
set up its representative office in 1995.
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In India, Max New York has a joint venture with Dabur, one of India's oldest, and largest
Group of companies. A professionally managed company, Dabur is the country's leading
producer of traditional healthcare products.
In accordance with the government regulations Max New York holds a 26 per cent stake in
the joint venture and the Dabur group holds the balance 74 per cent share.
With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), Max New York
has initiated an innovative and differentiated sales approach to the business. Through the
“Financial Health Check” (FHC) Max New York’s sales force has been able to establish its
credibility in the market. The FHC is a free service administered by the FPAs for a need-based
analysis of the customer’s long-term savings and insurance needs. Depending on the life stage
and earnings of the customer, the FHC assesses and recommends the right insurance product
for them.
Max New York pioneered the concept of Banc assurance in India, and has leveraged its global
expertise in Banc assurance successfully in India. Currently, Max New York has Banc
assurance tie-ups with ABN Amro Bank, American Express Bank, IndusInd Bank, Centurion
Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks
in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and
Maharashtra and regional Banks When Max New York entered the market, most companies
were offering traditional life products. Max New York started by offering the more modern
Unit Linked and Unitised With Profit products to the customers, creating a unique
differentiation. Max New York’s products have been designed in a manner to provide
customers flexibility, transparency and value for money. It has been among the first
45
companies to introduce the more modern Unit Linked products in the market. Its products
include: whole life (LifeLong), endowment (Lifesaver, Easy Life Plus, Lifesaver Plus), child
policy (Young Achiever, Safeguard Junior, Max New York Little Master) single premium
(Life Bond and Life Bond Plus), Pension (Pension Plus), Term (Life Shield), fixed term
protection plan (Freedom Life Plan) and a tax efficient investment plan with limited premium
payment term (LifeBond5). Max New York products are modern and contemporary unitised
products that offer unique customer benefits like flexibility to choose cover levels, indexation
and partial withdrawals.
Max New York’s Fund management operation is one of its key differentiators. Operating from
Mumbai, Max New York has an experienced team of fund managers and the range of fund
options includes Unitised With-Profits Fund and seven Unit Linked funds: - Protector Fund,
Secure Fund, Balanced Fund, Growth Fund, Enhancer Fund, Index Fund and Bond Fund.
Max New York has 193 Branches in India (including rural branches) supporting its
distribution network. Through its Banc assurance partner locations, Max New York products
are available in more than 2,795 locations across India.
rior to the appointment, Sud was serving as Max New York Life Insurance's Deputy
Managing Director. Gary Bennett, who served as Chief Executive Officer and Managing
Director of the company since July 2005, has been named Executive Vice President and
Greater China Chief Executive Officer of New York Life International, LLC, effective
immediately.
In a related announcement, Rajit Mehta, Max New York Life's Deputy Chief Operating
Officer has been appointed as the Chief Operating Officer of the joint venture, also pending
regulatory approval.
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Analjit Singh, Chairman Max New York Life Insurance, commented: "Rajesh and Rajit's
appointments are part of an orderly management transition that has been planned for some
time. We are confident that this new leadership team will build on the solid foundation that is
in place as we continue our journey of becoming the most admired life insurance company in
India with the most professional, most highly trained agency sales force in the country. We
thank Gary Bennett for all that he has done on behalf of Max New York Life and wish him the
very best in his new role."
"We are fortunate to have executives of Rajesh's caliber taking the helm at Max New York
Life Insurance," added Singh. "Rajesh has made a significant impact implementing business
strategies that have contributed to the rapid growth of our life insurance business, steering the
overall distribution network, and contributing greatly to the company's product management
and marketing efforts." Singh continued, "Rajit has played an equally important role for Max
New York Life, helping make Max New York Life's human resources and talent development
the strategic differentiator that it is today, as well as adding significant value to the company's
sales, operations and customer service functions."
"We're very pleased to have individuals with the level of skill and accomplishment of Rajesh
and Rajit at Max New York Life Insurance," said Dick Mucci, Chairman and Chief Executive
Officer of New York Life International, LLC. "It's a testament to organizational depth of the
company that we are tapping two founding team members who have had major roles in
building the company into what it is today, one of India's premier life insurers, widely
recognized for its quality and innovation and for its role in making life insurance and
retirement savings a reality for tens of millions of low-income and underserved Indian
households."
47
Mucci added, "Gary played an important role in the tremendous growth and success of Max
New York Life Insurance and we are grateful to him for his many contributions. He did an
outstanding job leading Max New York Life, and in his prior post running New York Life's
Hong Kong operation, and I'm pleased he's accepted a new position within New York Life
International overseeing our large and attractive Greater China region."
Previously, as a member of the company's core management team, Sud was responsible for
steering the overall distribution network of the company and overseeing the product
management, marketing, corporate affairs and customer relationship management functions.
Prior to that he served as Executive Director - Distribution, and was the primary driver for
Max New York Life Insurance's distribution footprint across India, setting up alliances and an
agent-advisor network and model that was recognized as the "best in class." Mr. Sud earned
his Bachelor of Commerce and an MBA and in marketing and finance from Faculty of
Management Studies, Delhi University before completing his Advanced Management
Program from Wharton Business School, University of Pennsylvania, Philadelphia, USA.
Mehta is also a founding team member of the Max New York Life team. Prior to his role as
Deputy Chief Operating Officer, Rajit served as Max New York Life's Executive Director for
Human Resources, Training and Internal Communications where he was responsible for
strategic initiatives leading to the strengthening of the Max New York Life's human resource
management.
He has also made important contribution in development and implementation of Max Vijay,
the innovative business model that fulfills protection and savings needs of underserved
market. Prior to joining Max New York Life, he was Director - Personnel at Bank of America
and worked with HCL - Hewlett Packard. Mr. Mehta is management graduate and has
attended an Advanced Management Course at INSEAD, France.
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The leading private life insurance company - Max New York Life Insurance Company Ltd.
has launched 'lifeline' - a health insurance product on Wednesday, 5th March 2008, across
India. Now, the company can boast of offering complete health and life insurance products
across ll regions in India. This newly launched health insurance product of Max New York
Life Insurance Company offers three groups of heath insurance solutions.
The Director Marketing Product Management and Corporate Affairs of Max New York Life
Insurance said that these three distinct heath insurance products are meant to cover
eventualities like hospitalization, surgery and critical illness of the insured. He points out that
these plans have been structured with features like coverage for a wide range of ailments, no
claim discount on revised premium for a healthy life, a fixed premium for a five-year term,
free second opinion from the best health care institutions of India on detection of illness.
Further, it also has provision for a free telephonic medical helpline across India.
The hospitalization - is covered by "Medicash plan", which is meant to provide a fixed amount
of cash benefit on a day-to-day basis during the entire period of hospitalization of the insured.
The Medicash plan would also cover expenses for admission in ICU, lump sum benefits
against an unlimited number of surgeries and recuperation benefits.
The second plan of the newly launched health insurance of Max New York Life Insurance, is
the "Wellness Plan", which is a more attractive one and covers 'critical illness' like cancer,
alzheimers, heart ailments, liver disease, deafness, permanent disability, etc. The Wellness
plan covers thirty eight critical illnesses, which is the highest number of illness covered under
one insurance plan in India by any insurance company.
The third health insurance policy of Max New York Life Insurance is a term plus health
protection plan known as "Safety Net". This provides coverage to the insured person for any
losses incurred by him/her in eventualities like critical illness, accident, disability and death.
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With 21 lakh life insurance policies and with an assured sum of Rs 62,000 crores in its kitty
Max Life Insurance wishes to achieve business at least five percent higher than it did in the
last financial year. The company also announced that it would go for an expansion drive and
would also increase the number of branch offices in Tamil Nadu within the fiscal year 2008-
2009. Max New York Life Insurance Company is one of the fastest growing life insurance
companies in India and is the first life insurance company of India to be awarded with ISO
9001:2000 certification. This Rs 907.4 crores insurance company is one of the most respected
companies in India. After making strong inroads into the Indian life insurance market with a
strong product portfolio the company is expected to do well with its new product line in the
Indian health insurance sector as well.
Max New York Life Insurance Company is a joint venture between New York Life
International Inc., a Fortune 100 company and America's largest life insurance provider and
Max India Limited one of the leading multi-business corporations in India. Max New York
Life Insurance Co Ltd is a Rs. 250 crore joint venture with a paid up capital of Rs. 807
crore.The insurance agents employed at Max New York Life Insurance Co Ltd are trained in-
house with a rigorous training program of over 152 hrs, much higher than the standard 100 hrs
of mandatory training laid down by the IRDA. Around 345 Max New York Agent Advisors
qualified for Million Dollar Round table (MDRT) membership in 2006.
It is an internationally renowned congregation of world's top insurance agents. Max New York
Life brings to you specially customized products and services that are flexible and can e
customized to suit your needs. It now has 30 life insurance products and 8 riders that can be
customized to over 800 combinations enabling customers to choose the policy or plan that
best fits their need. These include:
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Max New York is also keen to reach out to the underprivileged that have not had access to
insurance so far. Through its association with Basix (a micro financial institution) and other
NGOs, it has been able to reach the weaker sections of the society and provide life insurance
to them.
Max New York has been felicitated with the "Bronze Award for Excellence in People
Management" by Grow Talent Company Limited and Business world. This honour is given to
Max New York based on the ranks received in top 25 lists of the Great Place to Work India
studies conducted in the last four years. Max New York was ranked 12th in 2003, 14th in
2004 and 13th in the year 2005.
Max New York
Max New York is UK’s largest and the world’s fifth largest insurance Group. It is one of the
leading providers of life and pensions products to Europe and has substantial businesses
elsewhere around the world. With a history dating back to 1696, Max New York has a 40
million customer base worldwide. It has more than £377 billion of assets under management.
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Max New York India Management Team
Board Of Directors
Mr. Analjit Singh
Chairman,
Max New York Life Insurance
Mr. Anuroop (Tony) Singh
Vice Chairman,
Max New York Life Insurance
Mr. Rajesh Sud
CEO & Managing Director,
Max New York Life Insurance
Mr. Rajit Mehta
Executive Director & Chief Operating Officer,
Max New York Life Insurance
Mr. William Beaty
Director,
Max New York Life Insurance
Mr. Richard L. Mucci
Director,
Max New York Life Insurance
Dr. Omkar Goswami
Director,
Max New York Life Insurance
Mr. Rajesh Khanna
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Director,
Max New York Life Insurance
Ms. Marielle Theron
Director,
Max New York Life Insurance
Management Team
Mr. Rajesh Sud
CEO & Managing Director,
Max New York Life Insurance
Mr. Rajit Mehta
Executive Director & Chief Operating Officer
Max New York Life Insurance
Mr. Anil Mehta
Sr. Director, New Business
SBU
Max New York Life Insurance
Mr. Sunil Kakar
Sr. Director and Chief Financial Officer
Max New York Life Insurance
Mr. Ajay Seth
Senior Director- Legal & Compliance
Max New York Life Insurance
Mr. Debashis Sarkar
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Senior Director & Chief Marketing Officer
Max New York Life Insurance
Mr. John Poole
Chief Actuary
Max New York Life Insurance
Mr. Prashant Tripathy
Executive Vice President- Strategic Planning and Business Development
Max New York Life Insurance
Our Vision
Max New York - where exceeding expectations through innovative solutions is "our" way of life
This is the compelling vision that Max New York India has created through the active
contribution of its employees. These lines not only define the way we live and work but also
serve as a reminder to deliver the best to our customers, shareholders, colleagues, partners &
employees at all times.
Embedded in this vision are the core values of Integrity, Customer centricity, Passion for
winning, Innovation and Empowered team that we have collectively defined and committed to
working towards.
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Achievements and Awards
Some of the Industry Firsts
First company to provide Freelook period of 15 days to the customer. This was later
made mandatory by the regulator
First company to start toll free line for agent services
First and the only life insurance company in India to implement Lean methodology of
service excellence in service industry
First life insurance company in India to provide various services to the agents and
customers over phone
First Indian life insurance company to start service center at the regional level
First life insurance company in India to be awarded ISO 9001:2000 certification
Awards
Outlook Money survey ranked MNYL No.1 in Slow, Medium and Quick fund
categories
BT Mercer – Ranked No7 in the “Best companies to Work For”
Awarded the Gallup Great Work Place Award 2009
CII – Exim Bank Commendation Certificate for Business Excellence – 2008
Recognized as a Superbrand
Recipient of 2008 CIO 100 Award for technology implementation
Golden Peacock Award for Innovation – 2008
Among the top 25 companies to work for in India, according to Businessworld 2003
‘Great Workplaces of India’
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Among the top five most respected insurance companies in India as per Businessworld
2004 & 2006 survey
Won Indo-American Corporate Excellence Award for Best Indo-US company in
Financial Services Category in 2006
Received ‘Best Six Sigma Project’ award at Sakal Six Sigma Excellence Awards –
2006
Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by
Asia Insurance Review
Received the Amity Corporate Excellence Award – 2007
Received the ‘Outlook Money Award’ for being “among the best new insurers in the
country”.
First life insurance company to be awarded CII-Exim Bank Commendation Certificate for
Strong Commitment to Excel - 2008.
56
ORGANIZATION
SALES FORCE
The company currently has around 93,000 agent advisors and more than 800 own employed
sales force at 712offices across 389 cities. The company also has 36 referral tie-ups with banks,
24 partnership distribution and alliance marketing relationships each. Max New York Life has
put in place a unique hub and spoke model of distribution to deepen our rural penetration. This
is the first time such a model has been put in place for rural marketing of insurance. The
company has 133 offices dedicated to rural areas. Max New York Life invests significantly in
its training programme and each agent is trained for around 100 hours as opposed to the
mandatory 50 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 400 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. 218 agent advisors have qualified for the Million Dollar Round Table
(MDRT) membership in 2008. 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. Max New York Life offers a suite of flexible products. It now has 37
individual life and health insurance products and 8 riders that can be customised to over 800
combinations enabling customers to choose the policy that best fits their need. Besides this, the
company offers 6 products and 7 riders in group insurance business. The company currently
has more than 12000 employees. Vision- To become the most admired life insurance Company
in India.
57
PROMOTION STRATEGIES
Advertisement on television
Daily Query column in Financial Express News Paper
Through companies employees/advisors
Sponsor the film “VIRUDDH” (cast by Amitabh Bachhan etc.)
COME DEAR I WILL TAKE U TO THE SKY-MAX NEW YORK INDIA
FACT SHEET OF THE MAX NEW YORK
Max New York Life Insurance
FACT SHEET – As of July 31st, 2009
Founded 2000
Started Operations April 2001
Headquarters New Delhi, India
World Wide Web Address http://www.maxnewyorklife.com
Chairman Analjit Singh
Managing Director & CEO Rajesh Sud
Paid-Up Capital Rs. 1,782 crore
Sum Assured Rs 1,03,500 crore
Number of Policies Sold 3.9 million
Employees12,531
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Agent Advisors 92,667
Number of Products (INDIVIDUAL) 37
Number of Riders/Options (Individual) 8
Product Combinations Possible (Individual) Over 800
Number of Products (Group) 6
Number of Riders/Options (Group) 7
Number of Offices 712
Number of Offices Dedicated To Rural
Business 137 (21 hub offices, 116 spoke offices)
MDRTs 218 (for calendar year 2008)
Trainers 824
Business mix by worldwide sales ‡
1. Long-term savings and fund management 71%.
2. General insurance and health 29%
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MAX NEW YORK LIFE INSURANCE BRND AAMBASSADOR
Amitabh Bachchan to endorse Max New York Life's Max VijayLife insurance company Max New York Life has appointed veteran actor Amitabh Bachchan
as the ambassador for its product, Max Vijay, that was launched towards the end of 2008.
Max Vijay is a product designed to meet the investment and insurance needs of the investor,
particularly the underprivileged strata of society.
The policy offers stable investment returns, with insurance and
savings at low entry level premiums of Rs 1,000, Rs 1,500 and Rs
2,500. Investors have the convenience to pay amounts between Rs
10-2,500 per day.
The policy does not lapse as long as there is sufficient value in the
policy account to cover charges, even if no subsequent premiums are
paid.
On choosing Bachchan as the ambassador, Anisha Motwani, executive vice-president,
marketing and chief marketing officer, new markets, Max New York Life Insurance, tells
afaqs!, "This is a low ticket product and we launched the product with the large objective of
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providing financial independence to the masses. When the objective is as large, one needs a
celebrity ambassador who has a stature that could reach out to a large mass of the population."
Motwani says that the product was launched in the retail channel earlier
with below-the-line activities and a more aggressive campaign will be
launched in mid-September.
The launch will be in a phased manner, beginning from Uttar Pradesh,
where the business model of the product will be tested.
"We are targeting people in the annual income bracket of Rs 60,000-
1,00,000.
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Comparison b/w MAX NEW YORK LIFE INSURANCE
& OTHER INSURANCE COMPANY on Certain bases:-
1. Comfortable life style for your dependent on your death.
2. Consistent income at an elderly age
3. Profits/higher return from flow Policy at the end of the tenure.
4. Forced savings help comfortable build up of an estate.
5. Livelihood provision in case of disability (though in meet Indian life,
insurance, plans it is Mandatory added).
6. Tax Benefits
In detail
1) MAX NEW YORK LIFE INSURANCE has been in the market for last
7 yrs. So people find it more promising than others. The benefits
provided by it are incomparable to any other. On death MAX NEW
YORK LIFE INSURANCE provide much more claims then MAX
NEW YORK to the dependents. So it helps in running the life easily for
the dependents after the death of MAX NEW YORK LIFE
INSURANCE holder too.
2) If any one has taken life long MAX NEW YORK LIFE INSURANCE
then a continues flow of income is maintained at an elderly age too.
Since, MAX NEW YORK LIFE INSURANCE is a popularly Insurance
62
Corporation while MAX NEW YORK LIFE INSURANCE is like a
new face in the Market. So, people run for MAX NEW YORK LIFE
INSURANCE while is left behind.
3) Return on investment i.e. profit from flow MAX NEW YORK LIFE
INSURANCE at the end of whenever is same in both. MAX NEW
YORK LIFE INSURANCE & OTHER COMPANY. Though MAX
NEW YORK LIFE INSURANCE is a new face but if try to capture the
attention of people or market by providing more attractive MAX NEW
YORK LIFE INSURANCE. The percentage of return is same.
4) In old days, people were reluctant to do savings. They do not know the
benefits of saving but with the commencements of MAX NEW YORK
LIFE INSURANCE various saving schemes its percentage ratio of
return. People were forced to do saving & this saving result in
comfortable living & build up a social state. Though MAX NEW
YORK LIFE INSURANCE is also providing good return on saving but
people believe MAX NEW YORK LIFE INSURANCE the best.
5) There life corporations provide various benefits in case of disability,
accident or in any unforeseen circumstances. By considering this point
we can say that both the corporations are equally good
6) Generally people take insurance MAX NEW YORK LIFE
INSURANCE for some reason it may be tax rebate, securing or any
other reason. Today people are proffering MAX NEW YORK LIFE
INSURANCE as the best tax benefit provider as it is a private sector.
Corporation which is much more flexible than MAX NEW YORK
63
LIFE INSURANCE who is a MAX NEW YORK LIFE INSURANCE
Sector.
Comparison between Marketing Strategies of
MAX NEW YORK & OTHER’s
MAX NEW YORK LIFE INSURANCE is related to MAX NEW YORK LIFE
INSURANCE sector which established since last 7 years & there turnover of year
2007 is 12000. as regarding their MAX NEW YORK LIFE INSURANCE of welfare
is concerned with MAX NEW YORK LIFE INSURANCE & OTHER but knowing
the aspect of both, I think the more promising is MAX NEW YORK LIFE
INSURANCE as compared other because it still provided better advantages for
general MAX NEW YORK LIFE INSURANCE while other is also generating their
image is the current but still to be established more. Rather finance MAX NEW
YORK LIFE INSURANCE is concerned then MAX NEW YORK LIFE
INSURANCE & OTHER is come to the same level because MAX NEW YORK
LIFE INSURANCE is a joint venture between MAX NEW YORK LIFE
INSURANCE is UK’s largest & the world’s sixth largest insurance group. MAX
NEW YORK LIFE INSURANCE insurance to Non-Resident & Foreign national to
Indian Origin likes MAX NEW YORK LIFE INSURANCE Housing, Finance, MAX
NEW YORK LIFE INSURANCE, Mutual Fund schemes & insurance in foreign
currency from foreign offices & subsidiary companies. And last but not the least
production MAX NEW YORK LIFE INSURANCE. Under this, MAX NEW YORK
LIFE INSURANCE concerned wit Mutual benefits, Guaranteed surrender values,
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optional sides benefit & many more & MAX NEW YORK LIFE INSURANCE
concerned with MAX NEW YORK LIFE INSURANCE processing, souring
personal information plant office automation. Customer relationship management. So,
by considering both corporation’s the conclude is made that through some aspects
MAX NEW YORK LIFE INSURANCE is best & through other aspects MAX NEW
YORK LIFE INSURANCE is better.
65
PRODUCT PROFILE
FINANCE POLICY OF MAX NEW YORK
Max New York Life Insurance Company India Pvt. Ltd. is a joint venture between Max
New York of UK and Dabur, one of India's leading producer of traditional healthcare
products. Max New York holds a 26 percent stake in the joint venture and the Dabur
group holds the balance 74 per cent share.
Max New York is UK's largest and the world's sixth largest insurance Group. It is one of
the leading providers of life and pensions products to Europe and has substantial
businesses elsewhere around the world.
Max New York pioneered the concept of Bancassurance in India. Currently, Max New
York has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara
Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank,
11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir and Maharashtra and
one regional Bank in Sikkim.
Max New York has 40 Branches in India (including rural branches) supporting its
distribution network. Through its Bancassurance partner locations, Max New York
products are available in 378 towns and cities across India.
Investments in life insurance provide the dual benefit of saving for your future financial
requirements as well as financial security for your dependants in case of your death.
66
Unlike other investment instruments (term deposits, mutual funds and stock market
securities etc.), the nature of life insurance products is such that they are designed for the
long term (10 years or more) and provide the best results when they are continued for their
full term.
The right investment strategies won't just help you plan for a more comfortable tomorrow
-- they will help you get Kal Par Control.
At Max New York, life insurance plans are created keeping in mind your changing
needs and your family's. Our life insurance plans are designed to provide you with flexible
options that meet both protection and savings needs.
We offer our customers a full range of transparent, flexible and value for money products
that include whole life (LifeLong), endowment (LifeSaver, SaveGuard, EasyLife Plus,
LifeSaver Plus, LifeSaver Super and a traditional endowment – Dhan Vriddhi), child plan
(Max New York Little Master) single premium (LifeBond Plus), pension (Pension Plus),
term (Life Shield), fixed term protection cum savings plan (Freedom Life Plan) and a
short-pay recurring premium investment cum protection plan (LifeBond5). Max New
York products are modern and contemporary unitized products that offer unique customer
benefits like flexibility to choose cover levels, indexation, partial withdrawals and unique
investment options like a Systematic Transfer Plan to get the benefit of systematic
investments and an Automatic Asset Allocation Plan which changes the risk structure on
your investments as your age increases. We also have 3 rural plans which are a low cost
term plan – Amar Suraksha and 2 endowments – Anmol Suraksha and Jana Suraksha.
67
We also offer you a choice of investment options. You can choose between our Unit
Linked Fund and our With Profits Fund (only on Pension Plus).
The With Profits Fund guarantees that the selling price of the units will never fall. The
unit value of this fund is increased by crediting bonuses on a daily compounding basis.
The fund provides investment security to your capital.
The Unit Linked Funds are designed to provide relatively more progressive capital growth
wherein you automatically receive the benefit related to the investment performance of the
fund.
Under our Unit-Linked Insurance Plans we offer a choice of Unit-Linked Fund options:
Bond Fund: To generate a steady income through investment in high quality fixed
income securities. The fund comprises of 100% debt and money market and no equities.
Protector Fund: Progressive returns on your investment by investing higher element of
assets in debt securities, with minimum exposure to equities. The fund comprises of debt
securities in the range of 60-100%, equities in the range of 0-20% and money market and
cash in the range of 0-40%.
Secure Fund: The investment objective of this fund is to provide progressive return on
your investment with a minimum guarantee on maturity. The fund comprises of debt
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securities in the range of 50-100%, equities in the range of 0-20% and money market and
cash in the range of 0-40%. Initially the equity exposure will be 10 %.
Balanced Fund: The investment objective of this fund is to provide capital growth by
availing opportunities in debt and equity markets and providing a good balance between
risk and return. The fund comprises of debt securities in the range of 50-90%, equities in
the range of 0-45% and money market and cash in the range of 0-40%.
Growth Fund: The investment objective of this fund is to provide high capital growth by
investing higher element of assets in the equity market. The fund will comprise of debt
securities in the range of 0-50%, equities in the range of 30-85% and money market and
cash in the range of 0-40%.
Index Fund: To generate returns in line with the stock market index – NIFTY. The fund
comprises of debt and money market securities in the range of 0-20% and equities in the
range of 80-100%.
Enhancer Fund: To provide aggressive, long term capital growth with high equity
exposure. The fund will comprise of debt and money market in the range of 0-40% and
equities in the range of 60-100%.
69
Max New York also offers a whole range of group insurance and savings products
catering to pensions, gratuities, credit protection and pure protection. We have a dedicated
team that works with corporates across the country.
Individual
At Max New York we are dedicated to helping you make the most out of your life, and
that includes all your savings and protection requirements. We are here when you need to
make informed financial decisions - for you, and for your loved ones.
We offer products under the following six categories for individuals
1. Whole Life – As the name suggests, these products continue throughout your life and pay
out to your dependants only upon your death. These are useful if you want to create a financial
corpus for your family.
LifeLong
2. Pure Term – Pure term products are designed to provide your dependants financial
protection at a low cost in case of your death.
Life Shield
3. Endowments – Endowment products are meant to help you create a corpus to meet
financial needs during your lifetime. These products also provide a financial cover in case of
death
EasyLife Plus
LifeBond 5
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LifeSaver
SaveGuard
LifeSaver Plus
LifeSaver Super
Freedom Life Plan
Max New York DhanVriddhi
Anmol Suraksha
4. Single Premium – single premium products are meant for lump sum investments. These
products are meant for maximizing your investment returns while providing tax benefits on
your investment.
LifeBond Plus
5. Pension Plans – pension products as the name sug
Pension Plus
6. Child Plans – child plans are meant for investments benefiting your child when he/ she
needs them. Investments in these plans can be used for needs like funding higher education,
setting up a business, marriage expenses etc.
Max New York Little Master
1. Endorsement request form
2.Reinstatement request forms
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LifeLong, Life Saver or Young Achiever
EasyLife Plus, Treasure Plus, SaveGuard or Life Bond5
Life Shield, Secure Life, Amar Suraksha or Anmol Surakshagests are meant for retirement
planning and aim to maximize your post retirement income
Group
Our Group products are designed keeping in mind the special requirements of organizations
and large groups
EasyLife Plus
Corporate Life
Credit Net
Superannuation
Group Gratuity
Credit Plus
LoanSuraksha
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Group Shield
Rural
At Max New York we have specially designed products for the rural sector
Amar Suraksha
Jana Suraksha
WELFARE POLICYOF MAX NEW YORK
1. Policy statement
We recognize that our business activities have direct and indirect impacts on the societies in
which we operate. We endeavour to manage these in a responsible manner, believing that
sound and demonstrable performance in relation to Corporate Social Responsibility MAX
73
NEW YORK LIFE INSURANCE and practices is a fundamental part of business success.
As a part of its global philosophy, Max New York India will also develop and follow a
Corporate Social Responsibility (CSR) programme that will demonstrate it as a “good
corporate citizen”. The CSR programme will be evolved and developed with the active
participation of the employees who will believe in such a philosophy.
The programme will be evolved and developed by the respective team of Max New York
employees at each location across the country, under the guidance of the CSR Corporate
Team at the Head Office.
To provide a focused and structured approach to the programme, Max New York in the
beginning, will limit its support to causes related to the elderly and children, including
destitutes, mentally and physically challenged children. It will enlist specific Non
Government Organisations (NGOs) and associations who work for these causes.
Max New York has also formulated MAX NEW YORK LIFE INSURANCE related to
Environment and Human Rights, which have an indirect impact on CSR too. Please refer to
these MAX NEW YORK LIFE INSURANCE individually for more details.
2. Purpose
The purpose of Max New York’s CSR Policy is to convey the true meaning of CSR to the
stakeholders of the organisation as well as to ensure their commitment to the programme.
3. Scope
74
This Policy applies to all parts and activities of Max New York in India, including the
branches.
4. Underlying philosophy
Max New York believes in “giving back” what it gets from the society. The CSR
programme followed by the organisation with the active participation of the employees will
essentially work towards that belief. The manner in which we interact with the world in
which we operate determines our place within it. This global statement of Max New York
plc’s CSR programme represents a first step into defining Max New York’s view and will be
developed over time.
PRODUCTION POLICYOF MAX NEW YORK
POLICYPROCESSING
The Cumberland Insurance Group, a Bridgeton, N.J., multi-line carrier, has placed Mount
Arlington, N.J.-based AGO Insurance Software Inc.'s Commercial Multi-Peril Policy System
75
in its production environment. The Windows program will be used to streamline the Policy
cycle process for CMI.
SECURING PERSONAL INFORMATION
In an effort to comply with regulatory mandates, American National Insurance Co.,
Galveston, Texas, selected PGP Universal from Palo Alto, Calif.-based PGP Corp., to secure
electronic communications containing personal and confidential information.
POLICYADMIN, LIFECYCLE SUPPORT
Quick Solver, a Policy administration solution from INSTEC Corp., Naperville, Ill., is in full
production at Cheshire, Conn.-based Housing Authority Insurance Group (HAI Group).
Existing data was imported in real time during the rating process, and Quick Solver Policy
data was exported to HAI Group's data warehouse for data mining. Quick Solver is designed
to provide a Policy administration solution including bureau-compliant rating for all 50 states,
full Policy issuance capabilities and full Policy lifecycle transaction support.
WORKERS' COMP POLICYAND CLAIMS SYSTEM
After a two-month set up and configuration, Umialik Insurance Co., a multiple line,
property/casualty insurance company headquartered in Anchorage, Alaska, went live with a
workers' compensation Policy and claims systems from Tropics Software Technologies,
Sarasota, Fla.
CUSTOMER RELATIONSHIP MANAGEMENT
AIG Edison Life Insurance, a Tokyo-based division of American International Group Inc.,
providers of insurance and financial services, selected Bellevue, Wash.-based Onyx Software
Corp. to support AIG's ongoing customer relationship management strategy
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Financial Planning
The uniqueness of life insurance products is that you can combine protection and long-term
savings, enabling you to safeguard and provide for your family.
Max New York Life Insurance provides you three easy-to-use tools:
60 sec Financial Health Check will give you an indication of how healthy your finances are.
Lifecycle Guide will take you through different stages of life and possible financial needs.
Record Sheet is useful to record details of all your investments. .
These tools are designed to give you an overview of your financial needs. To fully plan for
your future, please contact our Financial Planning Adviser.
RESEARCH METHODOLOGY
77
The Advanced Learner’s Dictionary of current English Lays down the meaning of
Research as, “A careful investigation or inquiry especially through search for new fact in any
branch of knowledge.”
Redman & Mory define research as, “Systematized effect to gain new knowledge.”
RESEARCH DESIGN
“The research design is the conceptual structure with in which research is conducted it
consist the blue print of the collection measurement and analysis of data.”
In that project the research design was adopted for the “Descriptive research study” the
exploratory research studies are also termed as formulative research studies. The main purpose
of such studies is that of formulating a problem for more precise investigation or of
developing the working hypothesis from an operational point of view
The main purpose of the study was to tell the consumer perception in ‘A. The major
emphasis was on the discovery of the ideas and opinions of the consumers at different levels
in the existing environment.
Two methods that are used for the study are:
1. The survey of concerning literature.
2. The experience study.
SAMPLE DESIGN
78
A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting items for the
sample. The sample design is determined before data are collected.
The sampling used for the study is “Convenience Sampling”. Under this sampling
design every item or the universe has equal chance or inclusion in the sample because this is
Consumers’ Perception survey, so we give each person at any place an equal probability of
getting into the sample.
The MAX NEW YORK LIFE INSURANCE of random sampling are:
1. It gives each element in the population an equal probability of getting into the sample;
and all choices are independent of one another.
2. It gives each possible sample combination an equal probability of being chosen.
DATA COLLECTION
TYPES OF DATA
In the survey two types of data are collected:
1. Primary data: These data’s are those which are collected for the first time and therefore
original in nature.
2. Secondary data: Data, which have already been collected by someone else and hence
passed through the statistical process.
DATA SOURCE
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PRIMARY DATA COLLECTION
For the collection of the primary data following methods were used:
1. Interview method: Personal interviews of the customers are taken at different levels to
get their opinions and suggestions. And the interview was structured in nature.
2. Questionnaire method: Structured questionnaire on the basis of information collected
from different sources. The questionnaire contains both open and ended questions.
SECONDARY DATA COLLECTION
Secondary data were collected from the following sources:
a. Books related to topic
b. Organization documents
c. Magazines
d. Websites
DATA APPROACHES
Stratified Random Probability Sample Selection Method.
Research Instrument
Questionnaire (no of questions )
Focus Group
Observation
Direct Method
MECHANICAL INSTRUMENT:
Telephonic Method
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POPULATION:
Sampling Unit
The units chosen for survey were related advisor consultant & customers.
Sample size 100
Sample Selection Procedure
Probability
Contact Method
Direct method
Telephone
STATISTICAL TOOLS USED
Statistical tools used in the project study are:
Graph.
FINDING AND ANALYSIS
81
Q.1. What made you to switch to another Policy of Life Insurance?
New Policy Condition of Premium Maturity Date
Table: 2
Option Number of People
New Policy 10
Condition of Premium 20
Maturity Date 70
Fig. 3
Interpretation: 70% of the People prefer Maturity date and 20 People prefer Condition
premium and 10% people prefer new policy.
Q.2. What factor among the following you consider before purchasing MAX NEW YORK
LIFE INSURANCE?
82
Tax Rebate Security Investment Purpose Any other
Table: 3
Option Number of People
Tax Rebate 25
Security 65
Investment Purpose 5
Any Other 5
Fig. 4
Interpretation: 65% of the People prefer Security] 25% people prefer tax rebate, 5% people
Investment purpose prefer and 5% People prefer Any other.
Q.3 Which Policy do you use at present:
CUG FGU Pension plus Plan. 83
Table: 4
Option Number of People
CUG 60
FGU 25
Pension Plus Plan 15
Fig. 5
Interpretation: 60% of the People prefer Capital Unit Gain Plan and 25% People prefer
FGU, 15% people prefer Pension plus plan.
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Q.4. How many Policy/Policies do you have?
1 2 3
Table: 5
Option Number of People
1 25
2 60
3 15
Fig. 6
Interpretation: 60% of the People prefer two Policy of MAX NEW YORK LIFE
INSURANCE and 25% people prefer Bajaj Allianz Insurance and 15% People prefer policy
Mahindara Kotak Insurance.
85
Q.5 Have you face any compliant regarding insurance Policy till now?
Yes No
Table: 6
Option Number of People
Yes 30
No 70
Fig. 7
Interpretation: 70% of the People prefer No & 30% People Prefer .
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Q.6. How will you rate benefits of your existing MAX NEW YORK LIFE INSURANCE ?
Excellent Good Average Poor
Table: 7
Option Number of People
Excellent 10
Good 20
Average 65
Poor 5
Fig.8
Interpretation: 65% of the People prefer Average benefit of MAX NEW YORK LIFE
INSURANCE & 20% people prefer Good max new york life insurance & 10% People prefer
Excellent max new york life insurance & 5% people prefer Poor max new york life insurance.
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Q.7. Have you suggested the same Policy to anyone till now?
Yes No
Table: 8
Option Number of people
Yes 90
No 10
Fig. 9
Interpretation: 90% people says Yes for suggested the same policy and 10 People no for
suggestion.
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Q.8. What is your main source of information for MAX NEW YORK LIFE INSURANCE?
Newspaper Magazine Internet Agents
Table: 9
Option Number of People
Newspaper 5
Magazine 15
Internet 25
Agents 55
Fig. 10
Interpretation: 55% of the People prefer main source of information for MAX NEW
YORK LIFE INSURANCE by Agents & 25% People Prefer Main source of
information for max new York life insurance by Internet & 15% People Prefer Main
source of information for max new York life insurance by Magazinet. 5% People
Prefer Main source of information for max new York life insurance by Newspaper.
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Q.9. If you will have a chance to purchase the Policy of any other company, which will you
prefer?
MAX NEW YORK LIFE INSURANCE RELIANCE Any Other
Table: 10
Option Number of People
MAX NEW YORK LIFE INSURANCE 30
RELIANCE 10
Any Other 60
Fig. 11
Interpretation: 60% of the People prefer any other company and 30% People prefer Aviva
Life Insurance Company & 10% People prefer Reliance company.
90
Q.10. When did you purchase Policy First time?
5 yrs back 10 yrs back 15 yrs back
Table: 11
Option Number of People
5 yrs back 60
10 yrs back 30
15 yrs back 10
Fig. 12
Interpretation: 60% of the People prefer more than 5 Yrs Back and People prefer more than
10 YRS & 10 people prefer than more than 15 YRS Back.
Q.11. Amount of Policy taken?91
5,000 10,000 15,000
Table: 12
Option Number of People
5000 10
10000 20
15000 70
Fig. 13
Interpretation: 70% of the People prefer amount of MAX NEW YORK LIFE INSURANCE
15000 & 20% People prefer amount of Aviva Life Insurance 10000 & 10% People prefer
amount of Mahindra Kotak Life Insurance 5000 &
Q.12. Complaints regarding Policy whether?
92
Satisfied Dissatisfied.
Table: 13
Satisfied 80
Dissatisfied 20
Fig. 14
Interpretation: 80% of the People Satisfied MAX NEW YORK LIFE INSURANCE & 20%
of the People dissatisfied MAX NEW YORK LIFE INSURANCE.
Q.13. Which age of group do people prefer to get insurance?
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10-20 20-30 30-40 40-50
Table: 14
Option Number of People
10-20 15
20-30 20
30-40 25
40-50 40
Fig. 15
Interpretation: 30% of the People prefer age group 40-50 and 30% People prefer age group
20-30 and 25% people prefer age group 30-40 and 15% People prefer age group 10-20.
Q.14. Which class of family prefer insurance?
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Higher Middle Low
Table: 15
Option Number of People
Higher 20
Middle 70
Low 10
Fig. 16
Interpretation: 70% of the People prefer Meddle family and 20% of the People prefer Low
family and 20% of the People prefer Higher family.
CONCLUSION95
Insurance is a best growing sector in last few years there has been some major
changes in the face of the market.
While conducting survey in Moradabad city to fine the actual position. It was
found that people are very much aware about new life insurance companies
and their MAX NEW YORK LIFE INSURANCE in Moradabad. MAX NEW
YORK LIFE INSURANCE is the leading company with total market share.
Most people have regular premium but others have single premium plan.
It is observed that most of the people think that insurance MAX NEW YORK
LIFE INSURANCE are very important for their life.
It is also find that other insurance companies affect maximum people.
Most of the people think that today life insurance Policy is very important &
think that without it life is at risk. Most of the people think that for every
person life insurance is not important.
It is also find out that people are not very much satisfied with Bajaj Allianz.
Asking about the importance of life insurance in modern time most of the
people say that it is very important while few of them say that it is not
important.
On questioning with people that whether they would like to give some name
for insurance company. Most of the people state that they will suggest name.
They told when they are satisfied with MAX NEW YORK LIFE
INSURANCE services then they can give the name for use of others. When I
asked with people to give some suggestions to improve the services of MAX
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NEW YORK LIFE INSURANCE maximum people state that the return
should be high. Some people said that company should decrease the premium.
Now on analyzing why any person goes for some particular insurance
company what is affecting their choice, there I found to be number of
responses. The most of the people said the premium should be low.
In our research I found that most of people prefer life insurance MAX NEW
YORK LIFE INSURANCE. In life insurance most of the people prefer money
back plan and most of the people Ire satisfied with their current plan. In the
current Policy they like the feature most is safety. Near about 50% of the
people have more than one MAX NEW YORK LIFE INSURANCE Most of
the people have taken the life insurance Policy for their self. 42.5% Ire affected
with the brand image.
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SUGGESTIONS
PROSPECTS OF MAX NEW YORK LIFE INSURANCE
Capital Unit Gain
In my opinion the following steps of Suggestions, Company should adopt to
increase his sale: -
1. The first and the foremost step that company should be self-dependent
because the company has collaboration with foreign company.
2. The company should try to adopt new MAX NEW YORK LIFE
INSURANCE so has to take a lead over the other insurance companies.
3. The company should improve their infrastructure.
4. Marketing is also very much needed for the company.
5. Max New York Life Insurance announced an increase in its capital base by
Rs 100 crores, taking the total paid-up capital to Rs 559 crores.
6. The fresh infusion will help fuel the aggressive growth plans of the
company. Max New York has fared well, increasing its market share to
5.1% during April 2005-March 2006, up from 4.2% during the same period
last year. Against the life insurance industry growth rate of 32%, Max New
York Life Insurance has recorded a growth of 118% compared to the last
year..
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7. In the last six months, Max New York has strengthened their
Bancassurance channels, allowing access to a wider customer base.
LIMITATIONS
People did not cooperate while filling the questioner.
Few of the people did not filled the full questionnaire.
Maximum people complaint regarding the length of the questionnaire, they
thought it is lengthy.
People Ire not honest in filling the questionnaire that’s why the data is not
exact.
Time consuming.
Too much expensive.
Lack of awareness among the respondent.
Most calls are obtained at the sufferance of the respondent .The interviewer
is unknown to the respondent .
Survey was restricted to the people who have telephone facility.
Despite willingness to co-operate , many persons are unable to give
accurate information on questions , which the marketing observer would
like to ask.
Language problems, as some were don’t able to understand Hindi or English as
they were Gujaratis or Marathis etc.
Lack of sufficient time of the respondent.
Little time was given to respondents because of telecalling.
Not much information can be gained from respondents.
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Max New York should try to maintain it rate of return between 20%-40% for
every type of investment plan.
It should develop MAX NEW YORK LIFE INSURANCE for other purposes
like travel, marine etc.also.
Insurance companies should not mislead to customers to provide wrong
information about their own MAX NEW YORK LIFE INSURANCE
Rural areas in India lacks this facility so the insurance BAJAJ ALLIANZ
should spread their business in rural areas also.
Insurance companies should make personal contact with customer or own
client for improving bad promotion.
100
BIBLIOGRAPHY
BOOKS-
Kotler Philip (2008), ‘Marketing Management’, Prentice Hall India, 13th Edition.
Kothari C.R. (2000), ‘Research Methodology’, Wishwa Prakashan, 8th Edition.
Jha Mithileshwar (1997), ‘Retail Marketing’, Dorling Kindersley (India) 5th Edition
Internet site:
www.maxnewyorklife.com
http://www.maxnewyorklife.com/about_us/about_us.aspx
http://www.maxnewyorklife.com/about_us/management.aspx
http//www.google.com
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ANNEXURE
QUESTIONNAIRE
Dear Respondent’s
I am student of MBA III Sem from I F T M, Moradabad conducting a survey on
“STUDY OF MAX NEW YORK LIFE INSURANCE PRODUCT AND PRESENT
MARKET SCENERIO” I seek your Co-operation so, please do us a favor by filling this
questionnaire.
Q.1. What made a to switch to another Policy of MAX NEW YORK LIFE INSURANCE of
Life Insurance?
New Policy Condition of Premium Maturity Date
Q.2. What factor among the following you consider before purchasing policy of MAX NEW
YORK LIFE INSURANCE
Tax Rebate Security Investment Purpose Any other
Q.3. Which Policy do you use at present
CUG PLAN FUG PLAN Pension plus Plan
Q.4. How many Policy/Policies do you have?
1 2 3
Q.5 Have you face any compliant regarding insurance Policy till now
Yes No
Q.6. How will you rate benefits of your existing policy
Excellent Good Average Poor
Q.7. Have you suggested the same policy to anyone till now?
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Yes No
Q.8. What is your main source of information for policy?
Newspaper Magazine Internet Agents
Q.9. If you will have a chance to purchase the policy of any other brand, what will you prefer.
MAX NEW YORK LIFE INSURANCE Reliance Other
Q.10. When did you purchase policy First time.
5 yrs back 10 yrs back 15 yrs back More than 15 yrs
Q.11. Amount of policy taken
5,000 10,000 15,000
Q.12. Complaints regarding policy whether
Satisfied Dissatisfied.
Q.13. Which age of group do people prefer to gat insurance.
10-20 20-30 30-40 40-50
Q.14. Which classes of family prefer insurance
Higher Middle Low
Personal Details
Name : …………………………………………………………
Age : …………………………………………………………
Phone No. : …………………………………………………………
Address : …………………………………………………………
Occupation : …………………………………………………………
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E-mail : …………………………………………………………
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