Max Newyork

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PART- 1

COMPANY PROFILE

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COMPANY PROFILE

INTRODUCTION OF MAX NEW YORK LIFE INSURANCE CO. LTD.

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

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developed a strong corporate governance model based on the core values of

excellence, honesty, knowledge, caring, integrity and teamwork.

Incorporated in 2000, Max New York Life 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.3


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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 worlds fifth largest insurer and the

largest in the UK. Our main activities are long-term savings, fund management

and general insurance. It has premium 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 groups 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 worlds 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

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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.

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 CO.

LTD.. 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,5


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flexible and transparent. Max New York launched a life insurance and long-term

savings joint venture in June 2002 with Dabur Group, 1 of Indias 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 UKs largest and the worlds 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 Yorks

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

customers 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,

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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 Yorks 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,

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 Yorks 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.

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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. To the

appointment, 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.

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."

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"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."

Mucci added, "Gary played an important role in the tremendous growth and

success of Max New York Life Insurance Co. Ltd. and we are grateful to him for10


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his many contributions. He did an outstanding job leading Max New York Life

Insurance Co.Ltd., 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.

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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.

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.

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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 Co. Ltd., 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 Co. Ltd. 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.

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 Life13


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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 YorkLife Insurance Company Ltd. 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

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enabling customers to choose the policy or plan that best fits their need. These

include:

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




1696, Max New York has a 40 million customer base worldwide. It has more


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http://www.aviva.com/http://www.aviva.com/


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Max New York Life Insurance Co. Ltd. India Management Team

Board Of Directors

Mr. Analjit Singh

Chairman,

Max New York Life Insurance Co. Ltd.

Mr. Anuroop (Tony) Singh

Vice Chairman,


Mr. Rajesh Sud

CEO & Managing Director,


Mr. Rajit Mehta

Executive Director & Chief Operating Officer,


Mr. William Beaty

Director,


Mr. Richard L. Mucci

Director,


Dr. Omkar Goswami16


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Director,


Mr. Rajesh Khanna

Director,


Ms. Marielle Theron

Director,


Management Team

Mr. Rajesh Sud

CEO & Managing Director,


Mr. Rajit Mehta

Executive Director & Chief Operating Officer


Mr. Anil Mehta

Sr. Director, New Business

SBU


Mr. Sunil Kakar

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Sr. Director and Chief Financial Officer


Mr. Ajay Seth

Senior Director- Legal & Compliance


Mr. Debashis Sarkar

Senior Director & Chief Marketing Officer


Mr. John Poole

Chief Actuary


Mr. Prashant Tripathy

Executive Vice President- Strategic Planning and Business Development


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

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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.

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

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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

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

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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.

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

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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 worlds 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.

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.)

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COME DEAR I WILL TAKE U TO THE SKY-MAX NEW YORK LIFE

INSURANCE CO. LTD. INDIA

FACT SHEET OF THE MAX NEW YORK LIFE INSURANE CO.LTD.


FACT SHEET As of July 31st, 2009

Founded 2000Started Operations April 2001Headquarters New Delhi, IndiaWorld Wide Web Address http://www.maxnewyorklife.comChairman Analjit Singh

Managing Director & CEORajesh Sud

Paid-Up CapitalRs. 1,782 crore

Sum Assured Rs 1,03,500 crore

Number of Policies Sold3.9 million

Employees12,531

Agent Advisors92,667

Number of Products (INDIVIDUAL) 37Number of Riders/Options

(Individual)

8

Product Combinations Possible

(Individual)Over 800

Number of Products (Group)6

Number of Riders/Options (Group) 7

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Number of Offices712

Number of Offices Dedicated To

Rural Business137 (21 hub offices, 116 spoke offices)

MDRTs 218 (for calendar year 2008)

Trainers824

Table: 1

Business mix by worldwide sales

1. Long-term savings and fund management 71%.

2. General insurance and health 29%

MAX NEW YORK LIFE INSURANCE BRAND

AAMBASSADOR

Amitabh Bachchan to endorse Max New York Life's Max Vijay

Life 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.

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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 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."

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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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PRODUCT PROFILE

FINANCE POLICY OF MAX NEW YORK LFIE INSURANCE CO. LTD.

Max New York Life Insurance Company 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)

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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. 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

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 for28


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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.

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.29


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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 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.30


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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%.

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

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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

LifeSaver

SaveGuard

LifeSaver Plus

LifeSaver Super

Freedom Life Plan

Max New York DhanVriddhi

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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

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

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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 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 NEW YORK LIFE INSURANCE CO.

LTD. and practices is a fundamental part of business success.

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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

CO. LTD. related to Environment and Human Rights, which have an indirect

impact on CSR too. Please refer to these MAX NEW YORK LIFE

INSURANCE CO. LTD. individually for more details.

2. Purpose

The purpose of Max New Yorks CSR Policy is to convey the true meaning of

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CSR to the stakeholders of the organisation as well as to ensure their

commitment to the programme.

3. Scope

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 plcs CSR programme represents a first step

into defining Max New Yorks view and will be developed over time.

PRODUCTION POLICYOF MAX NEW YORK LIFE INSURANCE CO.

LTD.

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 in its production environment. The Windows program

will be used to streamline the Policy cycle process for CMI.

SECURING PERSONAL INFORMATION

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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

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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

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 Checkwill 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.

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RELIANCE COMPANY PROFILE

RELIANCE LIFE INSURANCE

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of

the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias

leading private sector financial services companies, and ranks among the top 3

private sector financial services and banking companies, in terms of net worth.

Reliance Capital has interests in asset management and mutual funds, stock

broking, life and general insurance, proprietary investments, private equity and

other activities in financial services.

Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

registered with the Reserve Bank of India under section 45-IA of the Reserve

Bank of India Act, 1934.

Reliance Capital sees immense potential in the rapidly growing financial

services sector in India and aims to become a dominant player in this industry

and offer fully integrated financial services.

Reliance Life Insurance is another step forward for Reliance Capital Limited to

offer need based Life Insurance solutions to individuals and Corporates.

Opportunity has a new name Reliance Life Insurance Company Limited. If

you have been waiting for that one job which will enrich your professional and

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personal life then you are at the right place. At Reliance Life Insurance

Company Limited our mission is to be the best in every sphere - business results,

customer care and employee focus. Some of our core values are:

1. Result Oriented

2. Performance Driven

3. Customer Focused

4. Learning & Development Oriented

5. Employee centric

6. Informal & fun

In the area of Human Resources we are looking towards fulfilling our core

values through:

1. An open environment enabling free interaction between all levels.

2. A balanced scorecard approach to strategy deployment and performance

3. Measurement which set goals and measure financial, customer focused,

process related and employee development related initiatives.

4. Aggressive Reward & Recognition plans including sales incentives

5. Career Development plans that will identify potential and create avenues for growth.

6. Intensive training practices for both functional as well as competency

development.

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OUR FOUNDER

Few men in history have made as dramatic a contribution to their

countrys economic fortunes as did the founder of Reliance, Sh.

Dhirubhai H Ambani. Fewer still have left behind a legacy that is

more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the

true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the

proud patriot, the leader of men, the architect of Indias capital markets, the

champion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of Indias greatest

wealth creator. In one lifetime, he built, starting from the proverbial scratch,

Indias largest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of

barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he

converted this fledgling enterprise into a Rs 60,000 crore colossusan

achievement which earned Reliance a place on the global Fortune 500 list, the

first ever Indian private company to do so.

Dhirubhai is widely regarded as the father of Indias capital markets. In 1977,

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when Reliance Textile Industries Limited first went pubReliance, the Indian

stock market was a place patronised by a small club of elite investors which

dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail

investors to participate in the unfolding Reliance story and put their hard-earned

money in the Reliance Textile IPO, promising them, in exchange for their trust,

substantial return on their investments. It was to be the start of one of great

stories of mutual respect and reciprocal gain in the Indian markets.

Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of

the greatest growth stories in corporate history anywhere in the world, and went

on to become Indias largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of the

ordinary shareholder uppermost in mind, in the process making millionaires out

of many of the initial investors in the Reliance stock, and creating one of the

worlds largest shareholder families.

PROMOTION STRATEGIES

Advertisement on television

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Daily Query column in Financial Express News Paper

Through companies employees/advisors

Sponsor the film VIRUDDH (cast by Amitabh Bachhan etc.)

FACT SHEET OF THE RELIANCE

JOINT VENTURE : Dabur (74% stake)

MANAGING DIRECTOR : Mr. Stuart E. Purdy

PAID UP CAPITAL : Rs 559 crores

LOCATIONS : 41 branches, 378 locations

CURRENT BUSINNES : In India,Rs.50.53 crore premium in first quarter

of 2005-2006. Last quarter it was Rs 32.59 crore.

TOTAL SALES : In India ,Total sales from the joint-venture life

business with Dabur Group increased by 86% to 50 million i.e.Rs.3700 million

(2004: 27 million i.e. Rs1971 million),

NET PROFIT : Worldwide 1,318 million i.e.Rs 96,214

million (2004: 1,076 million i.e.Rs.7854 million),increase by 21%.

RELIANCE PLC

INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2009

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Worldwide operating profit up 21% to 2.904 million

Life operating profit up 5% to 857 million, with more than 60% coming

from businesses outside the UK; Group margin up at 3.6% (2005: 3.5%)

Strong long-term savings sales growth, up 13% to 12,078 million, with

bancassurance a major driver for growth in continental Europe and Asia

Sustained excellent general insurance performance, with general insurance

and health profits up 18% to 694 million, and worldwide combined

operating ratio ahead of target at 95% (2005: 97%)

Strong performance from fund management with profits up 94% to 33

million# (2004: 17 million) and assets under management up to over

290 billion (31 December 2005: 280 billion)

35.0 billion worldwide sales

27.27 pence full year dividend

15.0% return on capital employed

14.9 billion equity shareholders funds

Strength and highlights 2009

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We have a balanced portfolio that benefits from diversification of

distribution, products and geography.

We continue to focus on managing the business to create value for

shareholders and customers.

We have delivered another strong performance from our international

long-term savings businesses.

Bancassurance goes from strength to strength, with total sales up 22%.

The acquisition of RAC has created a powerful new force in insurance and

motoring services.

PRODUCT PROFILE

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RELIANCE LIFE INSURANCE

These are the products offered by Reliance life insurance:-

Health

a. Individual Medclaim

b. Group Mediclaim

c. Reliance HealthWise Reliance

Personal Accident

a. Personal Accident

b. Group Personal Accident

Fire

a. Standard Fire and Special Perils

b. Consequential Loss (Fire)

c. Industrial All Risks

Engineering

a. Erection All Risks/Storage-cum-Erection

b. Contractors All Risks

c. Contractors Plant and Machinery

d. Machinery Breakdown Insurance

e. Machinery Loss of Profits Insurance

f. Boiler and Pressure Plant Insurance

g. Electronic Equipment Insurance

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Marine

a. Marine Cargo Insurance

Motor

a. Private Car Comprehensive

Liability

a. Directors and Officers Liability

b. PubReliance Liability (Act)

c. PubReliance Liability

d. Product Liability

e. Professional Indemnity

f. Workmens compensation

Miscellaneous

a. Industry Care

b. Commercial Care

c. Office Package

d. Fidelity Guarantee

e. Burglary and Housebreaking

f. Money Insurance

g. Householders Package

h. Shopkeepers Package

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Travel

a. Individual and Family

b. Asia

c. Student

d. Corporate

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PART 2

PROJECT OVERVIEW

INTRODUCTION

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A project means some task assigned by the company during my two months

training along with my training. Target I will also concentrate on the project

assigned to me.

My project topic is Comparison of Marketing Strategies between Max

Newyork Life Insurance Co. Ltd. & Reliance Life Insurance Co. Ltd.

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.

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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 :

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, familys income stops to that

extent affecting the economic condition.

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Life insurance helps in restoration of the adverse economic condition thus

caused.

Thus life insurance business is complementary to the States 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 pubReliance 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.

Role of insurance in economic development:-

Investments are necessary for economic development.

Life insurance plays a major role in mobilization of savings.

Savings out of life insurance fund are utilized in investments for economic

growth.

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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.

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OBJECTIVE OF THE PROJECT

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 Reliance Life Insurance as the

joint venture with the Reliance 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-Reliance

and Max New York Life Insurance Co. Ltd.

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 of

Reliance and Max New York Life Insurance Co. Ltd.

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, including54


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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 public

sector insurers. Following the passage of the Insurance Regulatory and

Development Authority Act in 1999, India abandoned public 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 Indias robust economic growth prospects and the nations high

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LITERATURE REVIEW




1696, Max New York has a 40 million-customer base worldwide. It has more


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.

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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 Yorks

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

customers 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 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 Yorks 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

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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 Yorks 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.

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.

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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 Muttylal

Seal, the foreign life insurance companies started insuring Indian lives. But

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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 CO. LTD.

1956: 245 Indian and foreign insurers and provident societies are taken over by

the central government and MAX NEW YORK LIFE INSURANCE CO. LTD.

formed by an Act of Parliament, viz. MAX NEW YORK LIFE INSURANCE

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Act, 1956, with a capital contribution of Rs. 5 crore from the Government of

India.

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.,

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*The New India Assurance Company Ltd.,

*The Oriental Insurance Company Ltd. and

*The United India Insurance Company Ltd. GIC incorporated as a company.

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 CO. LTD. 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

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companies operating in India, alongside eight insurance sector companies. Of

these, there were 14 life insurance companies comprising one MAX NEW

YORK LIFE INSURANCE CO. LTD. (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 Lloyds 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.

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 was63


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nationalized and the Life Insurance Corporation of India was formed on 1 st

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 CO. LTD. 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.

Companies at present scenario:-

MAX NEW YORK LIFE INSURANCE CO. LTD.

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

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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 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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RESEARCH METHODOLOGY

INTRODUCTION TO THE PROBELM

(1)(1) To study the present comparison between Max New York Life Insurance

Co. Ltd. & Reliance Insurance.

The market position of Max New York Life Insurance Co. Ltd. can be known

by working followings problems:

By studying the annual sales figures of Max New York Life Insurance

Co. Ltd. & reliance Life Insurance in the area.

By studying the total number of monopoly counter of Max New York Life

Insurance Co. Ltd. & reliance Life Insurance in the concerned sample

market.

By studying the total number of crates (empties) of reliance Life Insurance

in that area.

By studying the total number of some sample area.

By studying the total number of freezers.

Before knowing about the research methodology this will be better to know that

what the research is.

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RESEARCH

Research comprises defining and redefining the problems, formulating

hypothesis or suggested solutions, collecting, organizing and evaluating data,

making deductions and reaching conclusions. In other words this may be said

that the systematic approach concerning generalization and the formulation of a

theory is considered as the report.

RESESARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It

may be understood as a science of studying that how research is done

scientifically. In it we study various steps that are generally adopted by a

researcher in studying his research along with the logic behind them.

Thus when we talk about research metho

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