A PROJECT REPORT ON

“Potential of Life Insurance Industry

in Bhubaneswar”

By – Garima Dhan
(PGPM/07-09/18)
ASBM

Max New York Life Insurance

Company Ltd.

1
 A PROJECT REPORT ON

“Potential of Life Insurance Industry in

Bhubaneswar”

The study was conducted from 10th of April ’08 to of June ’08
At

Max New York Insurance Company

Ltd., Bhubaneswar.
Faculty Guide:
Company Guide:
Prof. Ratikant Biswal
Mr. Sidharth Mohanty
IT Department,
Associate sales Manager,
ASBM,
Max New York Life,
Bhubaneswar.
Bhubaneswar. Submitted by:
GARIMA DHAN
(PGPM/07-09/18)

ASIAN SCHOOL OF BUSINESS MANAGEMENT

2
 CERTIFICATE FROM THE
ORGANIZATION

This is to certify that the project entitled “Potential of Life Insurance

Industry in Bhubaneswar” is a bonafide work of Garima Dhan, a
student of Asian School of Business Management (ASBM), bearing
Roll No. PGPM/07-09/18, and was successfully conducted at Max
New York Life, Bhubaneswar, from 10th April to 4th June ’08, for the
partial fulfillment of the course Post Graduate Programme in Business
Management (PGPM) of ASBM, Bhubaneswar.

Mr. Sidharth Mohanty,

Associate Sales Manager,
Max New York Life,
Bhubaneswar.

3
 CERTIFICATE BY THE GUIDE

This is to certify that the project work entitled “Potential of Life

Insurance Industry in Bhubaneswar” is a piece of work done by
Garima Dhan, student of Asian School Of Business Management,
under my guidance and supervision for the partial fulfillment of the
course PGPM, Asian School Of Business Management, Bhubaneswar.
To the best of my knowledge and belief the thesis embodies the
work of the candidate herself and has been duly completed.
Simultaneously, the thesis fulfills the requirements of the rules and
regulations related to the summer internship of the institute and I am
assured that the project is up- to the standard both in respect to the
contents and language for being referred to the examiner.

Signature of the Faculty Guide

Name of Faculty Guide
Designation

4
 DECLARATION

I hereby declare that the project report entitled “Potential of Life

Insurance Industry in Bhubaneswar” is the produce of my sincere
effort. This Summer Internship Project Report is being submitted by
me alone, at Asian School of Business Management, Bhubaneswar,
for the partial fulfillment of the course PGPM, and the report has not
been submitted to any other educational institutions for any other
purpose.

Date:
Signature

5
 CONTENTS
PARTISULARS Page No.

Acknowledgement 7
Executive Summary 8

Introduction 9
• Introduction of the Industry
 Life Insurance 11
 General Insurance 12
 Major Policy changes 13
14
 Changing Face of Indian Insurance Industry
15
 Various types of Life Insurance Policies
• Introduction of the Company 18
 Company Profile 19
 Achievement 20
 Management 21
 Insurance Plans

Research Methodology
• Objective 26
• Scope of study 27
• Sampling Methodology 28
29
• Limitations
Survey
• Graph Analysis & Data Interpretation 30-47

Findings & recommendations

• Findings & Recommendations 49
• Growth Potential 50
• Conclusion 51

Bibliography 52
Annexure
• Questionnaire 54-55

6
 LIST OF GRAPHS
Particulars Page No.
30
[Fig 1] No of People Having Insurance

[Fig 2] Types of Insurance Policy Respondents Have 31

[Fig 3] Preferance of Respondents of Insurance Co’s 32

[Fig 4] Benefits of Insurance Perceived by Respondents 33

[Fig 5] Features of Insurance Policy That Attracted Respondents 34

[Fig 6] Peoples Perception About Insurance 35

[Fig 7] Persons Having Insurance For 36

[Fig 8] Reasons Behind Taking Insurance Policies 37

[Fig 9] Satisfaction of Respondents With Respect to Policies 38

[Fig 10] Satisfaction of Respondents With Respect to Agents 39

[Fig 11] No of Respondents Paying Tax 40

[Fig 12] Respondents Perception About Best Form of Investment 41

[Fig 13] Peoples Perception of Appropriate Age For Buying Insurance 42

[Fig 14] Peoples Opinion About Insurance Companies in India 43

[Fig 15] What People Look For in Insurance Companies 44

[Fig 16] People Interested In Going For Insurance Away From Their City 45

[Fig 17] People Planning For New Investment 46

7
 ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the

possibilities to complete this thesis. I would like to thank Prof. Dr.
Biswajeet Pattnaik, Director, Asian School of Business Management,
Dr. Kalyan Shankar Ray, Dean, Asian School of Business
Management, Ms. Kirti Mishra, Branch Manager, Max New York Life
Insurance, Bhubaneswar and college authorities first for providing me
the opportunity to work with one the prestigious organization.
I want to thank Associate sales Manager, Max New York Life,
Bhubaneswar Mr. Sidharth Mohanty for giving me permission to
commence this thesis in the first instance, to do the necessary research
work and for being my Company Guide.
With a deep sense of gratitude and humble submission I would like
to express my heartiest gratefulness to my Faculty Guide Prof.
Ratikant Biswal, Asian School of Business Management, whose help,
stimulating suggestions and encouragement helped me in all the times
of research for and writing of this thesis.

Date:
Signature:
8
 EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that insurance sector has the maximum
growth and potential as compared to the other sectors. Insurance has the maximum growth
rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth
potential attracts me to enter in this sector and MAX NEW YORK LIFE INSURANCE has
given me the opportunity to work and get experience in highly competitive and enhancing
sector.
• The success story of good market share of different organizations depends upon the
availability of the product and services near to the customer, which can be distributed
through a distribution channel. In Insurance sector, distribution channel includes only
agents or agency holders of the company. If a company like MAX NEW YORK LIFE,
BAJAJ ALLIANZ, TATA AIG, etc has adequate agents in the market they can capture
big market as compared to the other companies.
• Agents are the best way for a company of Insurance sector through which policies and
benefits of the company can be explained to the customer.

9
INTRODUCTION

 Introduction of the Industry

 Introduction of the Company
♦ Company Profile

♦ Achievements

♦ Management

♦ Insurance Plans

10
 THE HISTORY OF INDIAN INSURANCE INDUSTRY

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 1818 the British established the first insurance company in India in Calcutta, the Oriental
Life Insurance Company. First attempts at regulation of the industry were made with the
introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments
to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in
the Act were the power given to the Government to collect statistical information about the
insured and the high level of protection the Act gave to the public through regulation and
control. When the Act was changed in 1950, this meant far reaching changes in the industry.
The extra requirements included a statutory requirement of a certain level of equity capital, a
ceiling on share holdings in such companies to prevent dominant control (to protect the public
from any adversarial policies from one single party), stricter control on investments and,
generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life
insurance companies. Business was heavily concentrated in urban areas and targeted the
higher echelons of society. “Unethical practices adopted by some of the players against the
interests of the consumers” then led the Indian government to nationalize the industry. In
September 1956, nationalization was completed, merging all these companies into the so-
called Life Insurance Corporation (LIC). It was felt that “nationalization has lent the industry
fairness, solidity, growth and reach.”

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

are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance companies.

11
General Insurance
The General insurance business in India started with the establishment of Triton Insurance
Company Limited in 1850 at Calcutta. In 1907, the first company, The Mercantile Insurance
Ltd. Was set up to transact all classes of general insurance business. General Insurance
Council, a wing of the Insurance Association of India in 1957, framed a code of conduct for
ensuring fair conduct and sound business practices. In 1968 the Insurance Act was amended
to regulate investments and to set minimum solvency margins. In the same year the Tariff
Advisory Committee was also set up. In 1972, The General Insurance Business
(Nationalization) Act was passed to nationalize the general insurance business in India with
effect from 1st January 1973. For these 107 insurers was amalgamated and grouped into four
company’s viz., the National Insurance Company Ltd., the New India Assurance Company
Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd.
General Insurance Corporation of India was incorporated as a company

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

are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes
of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general
insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and
grouped into four companies viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India
Insurance Company Ltd. GIC incorporated as a company.

12
MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance
companies with the enactment of Insurance Regulatory and Development Authority Act, 1999
(IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and
Development Authority (IRDA) was established on 19th April 2000 to protect the interests of
holder of insurance policy and to regulate, promote and ensure orderly growth of the
insurance industry. IRDA Act 1999 paved the way for the entry of private players into the
insurance market which was hitherto the exclusive privilege of public sector insurance
companies/ corporations. Under the new dispensation Indian insurance companies in private
sector were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or through its
subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such
Indian insurance company;
The company's sole purpose is to carry on life insurance business or general insurance
business or reinsurance business.
The minimum paid up equity capital for life or general insurance business is Rs.100 crores.
The minimum paid up equity capital for carrying on reinsurance business has been prescribed
as Rs.200 crores.
The Authority has notified 27 Regulations on various issues which include Registration of
Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of
Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of
policy holders' interest etc. Applications were invited by the Authority with effect from 15th
August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The
Authority has its Head Quarter at Hyderabad.

Changing face of Indian insurance industry:

13
Indian life-insurance market is the target market of all the companies who either want to
extend or diversify their business. To tap the Indian market there has been tie-ups between the
major Indian companies with other International insurance companies to start up their
business. The government of India has set up rules that no foreign insurance company can set
up their business individually here and they have to tie up with an Indian company and this
foreign insurance company can have an investment of only 24% of the total start-up
investment.

Indian insurance industry can be featured by:

• Low market penetration.

• Ever growing middle class component in population.

• Growth of customer’s interest with an increasing demand for better insurance

products.

• Application of information technology for business.

• Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of
which are making strides in raising awareness levels, introducing innovative products and
increasing the penetration of life insurance in the vastly underinsured country. Several of
private insurers have introduced attractive products to meet the needs of their target
customers and in line with their business objectives. The success of their effort is that they
have captured over 28% of premium income in five years.
The biggest beneficiary of the competition among life insurers has been the
customer. A wide range of products, customer focused service and professional advice has
become the mainstay of the industry, and the Indian customer’s forms the pivot of each
company’s strategy. Penetration of life insurance is beginning to cut across socio-economic
classes and attract people who have never purchased insurance before.

Life insurance is also now being regarded as a versatile financial planning tool.
Apart from the traditional term and saving insurance policies, industry has seen the entry and
growth of unit linked products. This provides market linked returns and is among the most
flexible policies available today for investment. Now products are priced, flexible, and
realistic and sustain so people in better position to understand the risk and benefits of the
product and they are accepting these innovative products.

So it is clear that the face of life insurance in India is changing, but with the
changes come a host of challenges and it is only the credible players with a long term vision
and a robust business strategy that will survive. Whatever the developments, the future and
the opportunities in this industry will surely be exciting.

14
Various types of life insurance policies:-

• Endowment policies: This type of policy covers risk for a specified period, and
at the end of the maturity sum assured is paid back to policyholder with the bonuses
during the term of the policy.
• Money back policies: This type of policy is for periodic payments of partial
survival benefits during the term of the policy as long as the policy holder is alive.
• Group insurance: This type of insurance offers life insurance protection under
group policies to various groups such as employers-employees, professionals, co-
operatives etc it also provides insurance coverage for people in certain approved
occupations at the lowest possible premium cost.
• Term life insurance policies: This type of insurance covers risk only during the
selected term period. If the policy holder survives the term, risk cover comes to an
end. These types of policies are for those people who are unable to pay larger
premium required for endowment and whole life policies. No surrender, loan or paid
up values are in such policies.

• Whole life insurance policies: This type of policy runs as long as the
policyholder is alive and is covered for the entire life of the policyholder. In this
policy the insured amount and the bonus is payable only to nominee on the death of
policy holder.

• Joint life insurance policies: These policies are similar to endowment policies
in maturity benefits and risk cover, but joint life policies cover two lives
simultaneously such as married couples. Sum assured is payable on the first death and
again on the death of survival during the term of the policy.

• Pension plan: a pension plan or annuity is an investment over a certain number of

years but does not provide any life insurance cover. It offers a guaranteed income
either for a life or certain period.

• Unit linked insurance plan: ULIP is a kind of insurance plan which provides
life cover as well as return on premium paid over a certain period of time. The
investment is denoted as units and represented by the value called as net asset value
(NAV).

15
 COMPANY PROFILE

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

In line with its values of financial responsibility, Max New York Life has adopted prudent
financial practices to ensure safety of policyholder's funds. The Company's paid up capital is
Rs. 907.4 crore, which is more than the norm laid down by IRDA.

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

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

337 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership
in 2007. MDRT is an exclusive congregation of the world’s top selling insurance agents and
is internationally recognized as the standard of excellence in the life insurance business.

Having set a best in class agency distribution model in place, the company is spearheading a
major thrust into additional distribution channels to further grow its business. The company is
using a five-pronged strategy to pursue alternative channels of distribution. These include the
franchisee model, rural business, direct sales force involving group insurance and
telemarketing opportunities, bancassurance and corporate alliances.

Max New York Life offers a suite of flexible products. It now has 43 life insurance products
and 8 riders that can be customized to over 800 combinations enabling customers to choose
the policy that best fits their need.

16
VISION
To become one of the most admired life insurance company of India.

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

VALUES

Knowledge:
Knowledge leads to expertise; and our expertise is in helping people protect themselves.
Perfectly combining global expertise with local knowledge, we are India's life insurance
specialist. Max New York Life believes that for knowledge to be of value it must be focused,
current, tested and shared.

Caring:
Max New York Life is redefining the life insurance paradigm by focusing on customers first.
The service process is responsive, personalized, humane and empathetic. Every individual
who represents the company is for us our brand champion.

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

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

17
ACHEIVEMENTS

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

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

Been among top five most respected private life insurance companies in India according to a
2004 and 2006 Business World survey.

Have truly built an enviable sales force. With 345 agents becoming members of the MDRT in
2006, Max New York Life has moved up to 21st rank in MDRT global list.

18
 MANAGEMENT

BOARD OF DIRECTORS:

Analjit Singh Gary R. Bennett

Chairman, Managing Director and CEO,
Max India Limited Max New York Life Insurance

Ted Mathas Anuroop 'Tony' Singh

President & Chief Operating Officer, Vice Chairman,
New York Life Insurance Max New York Life Insurance

MANAGEMENT TEAM:
Gary Bennett Sunil Sharma

Managing Director and CEO, Chief Operating Officer and Executive

Max New York Life Director

Rajit Mehta Rajesh Sud

Executive Director, Executive Director, Distribution

Human Resources, Training and
Internal Communications

Sunil Kakar
Anil Mehta
Director and Chief Financial Officer
Director, Group Business

Ajay Seth Debashis Sarkar

Director, Legal & Compliance Director - Marketing, Product

Management and Corporate Affairs

John Poole

Chief Actuary

19
 INSURANCE PLANS
Protection Plans:

Five Year Renewable and Convertible Term Insurance

Max New York Life's Five Year Renewable and Convertible Term Insurance (Non-
Participating) plan not only provide you with a low cost insurance cover during its tenure of
five years, it also helps you plan in advance for various future needs and your family's
financial security, should anything unfortunate happen to you. Offering a guaranteed Death
Benefit, this plan is particularly useful as a short-term protection plan. An important feature
of this policy is that it allows the insured to convert the policy to a regular policy during the
tenure of the policy.

Level Term (Non Participating) Policy

Max New York Life's Level Term (Non Participating) Policy is a plan that covers your life at
a very low cost and reduces the consequent hardship your family may have to bear in the
unfortunate event of your death. Incase of the unfortunate death of the policy holder during
the term of the plan, an amount equal to the sum assured is paid to the nominee.

Children Plans:

Children's Endowment to 18 (Par) Plan

Max New York Life presents Children's Endowment Participating Insurance to age 18 with an
option to buy a permanent life insurance policy without medical underwriting (irrespective of
his/her health at that time). This policy which is especially designed to enable you to provide
for higher education of your child and take care of your child’s future needs in case of
spiraling costs.

Children's Endowment to 24 (Par) Plan

Max New York Life’s Children's Endowment Participating Insurance to age 24 provides an
option to buy a permanent life insurance policy without medical underwriting (irrespective of
his/her health at that time). This policy enables you to provide for various events in your
child’s life such as a grand wedding of your child. This excellent plan is a participating plan,
which is also eligible for bonuses and Max New York Life may declare these bonuses from
time to time and from the third policy year. An important feature of this plan is that the entire
sum assured is paid out on maturity and the plan automatically vests when the child turns 18.

Stepping Stones™ (Par) Plan

Max New York Life’s Stepping Stones™ is a smart way to plan your children’s education and
their future irrespective of whether you are there or not. It provides you with regular money
when it is required. This policy also builds cash value, which you can use during your
lifetime to fund any unforeseen needs by surrendering accumulated PUAs. This policy also
entitles you to make partial withdrawals for various unplanned expenses in the future.

20
SMART Steps™ Plan
Introducing Max New York Life’s regular premium unit linked life insurance children’s plan
– SMART Steps™, which will help you plan for your child's future in a SMART way and
takes your worries away. This plan offers the required financial protection for your loved ones
if you are not alive and provides an unmatched investment opportunity by way of well
managed investment funds. This policy also entitles you to make partial withdrawals for
various unplanned expenses in the future.

SMART Steps ™ Plus

A regular premium unit linked life insurance plan, Max New York Life’s SMART Steps™
Plus will help you plan for your child's higher education, marriage, and financial security.
This plan offers no-compromise 360 degree protection to your children even if you are not
alive and provides an unmatched investment opportunity by way of well managed investment
funds. This policy also entitles you to make partial withdrawals for various unplanned
expenses in the future.

SMART Steps ™ Single Premium Plan

Max New York Life’s SMART Steps™ Single Premium policy will help you plan for your
child's future in a SMART and organized manner. Apart from offering 360 degree protection
to your child if you are not alive, this plan also provides an unmatched investment
opportunity by way of well managed investment funds. This policy also entitles you to make
partial withdrawals for various unplanned expenses in the future.

Investment Plans:

Life Maker™ Premium Investment Plan

The latest Life Maker™ Premium Investment Plan gives you a lot of choices - especially
when you are looking for Great life style, Big Home, your own well established Business and
top of all - Protection for your family. Our Unit linked Life Insurance plan can be the
financial cornerstone for your objectives. Max New York Life Insurance provides you a
powerful investment-cum-insurance plan where you can direct your investments in the
customized unit linked funds such as equities, money market instruments, investment grade
corporate bonds, and government securities. These funds offer a wide range of returns basis
market returns. You can choose to invest your premiums in one or more of these funds, basis
your risk taking ability.

Life Maker™ Platinum - a Unit Linked Investment Plan

With the Life Maker™ Platinum - a Unit Linked Investment Plan, you can meet all your
financial needs, without the tedium of managing multiple products. In this plan, you can

21
direct your investments in the customized unit linked funds such as equities, money market
instruments, investment grade corporate bonds, and government securities. These funds offer
a wide range of returns basis market returns. You can also choose to invest your premiums in
one or more of these funds, basis your risk taking ability.

Life Maker™ Gold Plan

This plan enables you to choose an attractive investment fund, enjoy free loyalty units and tax
benefits on premiums and maturity value. Life Maker™ Gold Plan also provides you
insurance cover, in which, your nominee will get the Sum Assured plus the Fund Value to
your nominee(s), in case of unfortunate event of your death. Our Plan also offers you the
flexible investment feature, where you can choose one out of four attractive funds options and
also change your risk return profile of your existing investments by switching across funds
with our high customization feature.

Life Invest™ Plan

This policy will provides you comprehensive protection from 3 Ds i.e. Death, Disease and
Disability. Apart from loyalty units and tax benefits, the maturity feature of this policy will
also pay you the fund value. Flexible Investment with choice of four attractive fund options,
lump sum investment in your plans through top ups as per your cash flow, increasing death
benefits, flexibility to choose premium payment terms are few of the benefits you can enjoy
through this policy.

SMART Assure Plan

Our smart assure plan also enables you to make partial withdrawals at the time of unexpected
expenses. The switching feature of this policy provides you the facility to change the
investment pattern by moving from one fund to other fund(s) amongst the funds offered under
this contract

Retirement Plans:

Easy Life™ Retirement (Par) Plan

Catering to the diverse set of needs of various customers looking for retirement planning,
Max New York Life offers some splendid retirement plans, which would suit their budget and
lifestyle. Max New York Life's Easy Life™ Retirement Plan Regular Premium/Single
Premium (Participating) Policy is designed to help you save money for your retirement. It
also provides you with an opportunity to take home a regular retirement income (i.e.
pension).

SMART Invest™ Pension Plan

Offering competitive returns to secure the golden years of your life, Max New York Life's
SMART Invest™ Pension Plan is a comprehensive unit linked pension plan to meet your post
retirement financial needs, ensuring you complete peace of mind. One-third of the corpus can
be commuted at vesting age the amount commuted are eligible for tax exemption u/s 10A.

22
Health Plans:

LifeLine-MediCash™ Plan
Max New York Life's Lifeline-MediCash™ health Insurance plan provides you support by
giving you hospital cash benefit, whenever you are hospitalized. Through this plan you will
get a fixed benefit towards hospitalization, ICU and recuperation (post hospitalization).

LifeLine-MediCash™ Plus Plan

Presenting Lifeline - MediCash™ Plus health Insurance plans from MNYL that provide you
support by giving you hospital cash benefit, whenever you are hospitalized. Through this plan
you will get a fixed benefit towards hospitalization, ICU and recuperation (post
hospitalization). And the surgical expenses of a fixed Lump-sum amount will be paid under
LifeLine – MediCash™ Plus for more than 400 listed surgeries that you may undergo.

LifeLine-Wellness™ Plan
Max New York Life's LifeLine-Wellness™ is a health plan, which would provide you 360-
degree benefit in terms of long tenure of coverage, coverage for 10 critical illnesses, and
permissible tax benefit under an Income Tax Act.

LifeLine-Wellness™ Plus Plan

Max New York Life's LifeLine-Wellness™ Plus health plan provides a wonderful benefit
system in terms of long tenure of coverage, coverage for 38 critical illnesses and tax benefit.

LifeLine-Safety Net™ Plan

Recognizing the need for a complete all round financial protection for you and your family,
Max New York Life Insurance Company offers you a term cum health insurance - LifeLine-
Safety Net™ , the new age insurance covering death, disability, disease and accident under
one single plan.

SOME OF THE OTHER PLANS ARE:

SAVINGS PLANS:
 W hole Life Participating
 20 Year Endowment (Par)
 Endowment to Age 60 (Par)
 Life Gain Plus 20 (Par)
 Life Gain Plus 25 (Par)
 Life Pay Money Back
 Life Gain Endowment
 Life Partner

23
RURAL PLANS:

 Max Suraksha

 Easy Term Policy

STRATEGIC PRODUCTS PLANS:

 Bancassurance

 Super Saver Bond

 Capital Builder

 Additional Distribution

 Max Mangal

 Max Vriksha

 Capital Builder

 Max Amsure

 Future Builder

 Family Money Back

 Bonus Builder

 Business Builder

 Secure Returns builders

24
25
RESEARCH METHODOLOGY
Objective
Scope of study
Sampling methodology
Limitations

26
 RESEARCH METHODOLOGY

TITLE:

To Study Potential of Life Insurance Industry in Bhubaneswar.

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with studying the buying pattern in the

insurance industry with a special focus on Max New York life Insurance. The various segments of

the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also

studied.

OBJECTIVE

Main objective of the research is to have an analysis of life insurance industry in

Bhubaneswar. To accomplish this objective it has been divided into five.

• To determine reasons behind opting for an insurance.

• To know the most preferred policy.

• To determine customers perception towards private insurance companies and their expectation

form private insurance companies.

• To determine the feedback on services provided by an insurance agent.

• To study the types of benefits provided by insurance services.

27
SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number of new players

have entered the market and are trying to gain market share in this rapidly improving market. The

study deals with Reliance in focus and the various segments that it caters to. The study then goes on to

evaluate and analyze the findings so as to present a clear picture of trends in the Insurance sector.

SIGNIFICANCE TO THE INDUSTRY:

This is a limited study which takes into consideration the responses of 100 people. This data can be

explorated to take in the trends across the industry. The significance for the industry lies in studying

these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only

beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the

industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER:

To facilitate and provide useful information for the study of the company and the insurance industry

and also provide recommendations for Max New York Life.

RESEARCH DESIGN

• NON-PROBABILITY

• EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of information

are both primary & secondary.

28
A well-structured questionnaire was prepared and personal interviews were conducted to collect the

customer’s perception and buying behavior, through this questionnaire.

SAMPLING METHODOLOGY

Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot

study was done in order to know the accuracy of the Questionnaire. The final Questionnaire

was arrived only after certain important changes were done. Thus my sampling came out to

be judemental and convinent

Sampling Unit:

The respondents who were asked to fill out questionnaires are the sampling units. These comprise of

employees of MNCs, Govt. Employees, Self Employed etc.

Sample size:

The sample size was restricted to only 100, which comprised of mainly peoples from different regions

of Bhubaneswar due to time constraints.

Sampling Area:

The area of the research was Bhubaneswar, India.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Delhi and does not necessarily shows a pattern

applicable to all of Country.

2. Some respondents were reluctant to divulge personal information which can affect the validity

of all responses.

29
3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly.

The environmental changes are vital to be considered in order to assimilate the findings.

SURVEY
Graph Analysis
Data Interpretation

30
 DATA ANALYSIS & INTERPRETATION

NUMBER OF PEOPLE HAVING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 70 70%

No 30 30%

Total 100 100%

INTERPRETATION

• Of the sample size of 100 surveyed respondents 70% of the respondents are having Insurance

policy.

• 30% of the respondents are either not having any Insurance policy at present or their policy is

already matured.

• And at present 100% of the respondents are with the view that Insurance is a tool to protect your

family.

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 TYPES OF INSURANCE POLICY RESPONDENTS HAVE

POLICY TYPE NO. OF SHARE (%)

RESPONDENTS

LIFE POLICY 75 75

NON LIFE POLICY 25 25

BOTH 45 45

INTERPRETATION

 75% of the respondents have only Life Insurance Policy.

 while 45% of the respondents have both.

 25% of the respondents have only Non- life Policy.

[Some of the respondents opted for two or more than two items]

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 PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

NO.OF
COMPANY’S NAME SHARE (%)
RESPONDENT

L.I.C. 78 78

RELIANCE LIFE INSURANCE 3 3

ICICI PRUDENTIAL 10 10

SBI LIFE 7 7

Max New York Life 2 2

TOTAL 100 100

INTERPRETATION

 78% of the people contacted prefer LIC policy to any other and therefore it is ranked

no.1 by that percent of respondents.

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 BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Cover Future Uncertainty 55 55

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100

[Fig4]
Future
Investment
25%

Cover Future
Tax Uncertainty
Deductions 55%
20%

INTERPRETATION

 55% of the respondents believe that covering future uncertainty is the biggest benefit

of an insurance policy.

 Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and

future investments respectively.

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FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS

FEATURE NO.OF SHARE (%)

RESPONDENTS
Money Back Guarantee 15 15
Larger Risk Coverage 37 37
Easy Access to Agents 7 7
Low Premium 30 30
Company’s Reputation 11 11
TOTAL 100 100

INTERPRETATION

 Majority of the respondent (37%) found larger risk coverage as the most attracted feature

of the all.

 Minimum respondents (7%) opted for easy access to agents.

35
 PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect your family 100 100%

INTERPRETATION

• 81% of the respondents have perception of Insurance being a saving tool.

• And 74% of the respondents have perception of Insurance being a tax saving device.

• But 100% of the respondents are with the view that Insurance is a tool to protect your family.

[Some of the respondents opted for two or more than two items]

36
 PERSONS HAVING INSURANCE FOR

Response No of respondents

self 40

spouse 28

children 21

parents 18

all 11

INTERPRETATION

Among that 42% people who having insurance, they have insurance 40% for self, 28%for spouse
,21% for children and 18% for their parents and 11% for all family member.

REASONS BEHIND TAKING INSURANCE

RESPONSE NO. OF SHARE (%)

37
 RESPONDENTS

Tax saving 80 50%

Saving / Investment 80 50.%

Family protection 100 100%

INTERPRETATION

• 80% of the Respondents opted for Insurance for tax saving benefits and saving/investment both.

• But all of them, i.e. 100% of the respondents have opted for insurance for their family protection.

[Some of the respondents opted for two or more than two items]

38
 SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

• 60% of the respondents are more or less satisfied with their existing policy.

• 40% of the respondents are not satisfied with their existing policy.

• In this case all of those who have taken a policy have responded.

39
 SATISFACTION OF +VE RESPONDENTS WITH RESPECT TO SERVICE AGENT

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

• 45% of the respondents are satisfied with their existing service agent.

• 55% of the respondents are not satisfied with their existing insurance agent.

• All of those who have taken a policy have responded.

40
 NUMBER OF RESPONDENTS PAYING TAX

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Paying tax 100 100%

Not paying tax 0 0%

Total 100 100%

INTERPRETATION

• Of the sample size of 100 respondents, all the respondents are paying tax.

41
 RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR
SECURING THEIR FUTURE

NO. OF SHARE (%)

RESPONDENTS
Fixed Assets 75 33%

Bank deposits 11 5%
Jewellery 25 11%
Securities i.e. bonds, MFs 40. 17%
Shares 10 4%
Insurance 70 30%

INTERPRETATION

• 75% of the respondents are with the view that Fixed Assets is the best form of investment for

securing their future.

• 70% of the respondents are with the perception that Insurance is the best form of investment for

securing their future, which is 2nd highest and this shows that insurance is an important key for

securing your future.

[Some of the respondents opted for two or more than two items]

42
 PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE

RESPONSE NO. OF RESPONDENTS SHARE (%)

After 25 years 29 29%
After 35 years 10 10%
After 45 years 0 0%
Anytime 61 61%

INTERPRETATION

• 29% of the respondents are with the view that insurance should be bought after the age of 25

years.

• 10% of the respondents are with the view that insurance should be buyed after the age of 35

years.

• Whereas, 61% of the respondents are with the view that buying of insurance do not have any

thing to do with age i.e. there is no age limitations. It can be purchased any time according to the

need.

43
 PEOPLES OPINION ABOUT INDIAN INSURANCE COMPANIES

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Rigid plans 67 67%
Non user friendly 29 29%
Unsatisfactory services 26 26%
Non Aggressive 35 35%
Satisfactory 24 24%
Good 10 10%
Very good 0 0%

INTERPRETATION

• 67% of the respondents have the opinion that Indian Insurance Companies have Rigid plans.

• 29.5% feel that Indian Insurance companies are Non-user friendly.

• 26.5% feel that services of Indian Insurance companies are Unsatisfactory.

• 35.75% of the respondents are with the view that Indian Insurance companies are Non-

aggressive.

44
• 24% of the respondents feel that products and services of Indian Insurance companies is

Satisfactory.

• Whereas only 10.25% feel that it is Good enough.

• And according to the data, no single person has felt that it is very good.

[Some of the respondents opted for two or more than two items]

45
 WHAT PEOPLE LOOK FOR IN AN INSURANCE COMPANY

RESPONSE NO. OF SHARE (%)

RESPONDENTS
A trusted name 82 82%
Friendly service & 71 71%
responsiveness
Good plans 81 81%
Accessibility 49 49%

INTERPRETATION

• 82% customers look for a Trusted name in a company for insurance.

• 81.5% customers look for a good plan in a company for insurance.

• Friendly service & responsiveness and Accessibility are also important factors looked by

customers in a company.

[Some of the respondents opted for two or more than two items]

46
 PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER AWAY
FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Yes 43 43%
No 44 44%
Uncertain 13 13%
Total 100 100%

INTERPRETATION

• The interested customers i.e. 43% are ready to go for insurance even away from a city if services

and products are worthwhile, which again is a good prospect (potential) for Max New york Life

Insurance to take them on their favor.

47
 PEOPLE PLANNING FOR NEW INVESTMENTS

RESPONSE NO. OF RESPONDENTS SHARE (%)

Planning 87 87%

Not planning 13 13%

Total 100 100%

INTERPRETATION

• Only 13% of the customers contacted are not planning for new investments presently.

• Whereas, 87% of the customers are still planning for new investments this can be a great

potential for Max New York Life Insurance to take them on their favor.

48
 FINDINGS &
RECOMMENDATIONS

49
 FINDINGS & RECOMMENDATIONS

1. As the people think that insurance is a tool to protect their family & a tax saving device. They are

aware of the fact & realizing its, importance. There is a large potential for insurance in India.

2. The entrance of private players will increase the competition and it would be a tough task to secure

a good position in market.

3. Since Max New York Life Insurance is leading with several companies’ policies it should be easy

for them to penetrate into the market and secure a good position if they pay greater attention to the

service part provided to their customer and thereby forming a long and trusted relationship.

4. As seen from the survey that at present 70% of the customer are having insurance policy out of

which 87.5% of the customer are planning for new investments. So it can be a good potential for the

company and they should make an attempt to trap these customers.

5. As 43% of the customers are even ready to go for insurance if a service provider away from their

city is providing it. But inturn they should provide good products and services. The company should

try to convince these customers and get them in its favor.

50
GROWTH POTENTIAL

At present life insurance penetration in India is quite low – 3% of

GDP.

PHASE OF TRANSITION

• Life Insurance industry is under the phase of infancy after 50 years

of monopoly.

• Competition from within and other sectors of financial market.

• Needs environmental support till it reaches a comfort zone

51
 CONCLUSION

Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be

seen in the above analysis. A general impression that we gathered during Data collection was the

immense awareness and knowledge among people about various companies and their insurance

products. People are beginning to look beyond LIC for their insurance needs and are willing to trust

private players with their hard earned money.

People in general have been impressed by the marketing and advertising campaigns of insurance

companies. A high penetration of print, radio and Television Ad campaigns over the years is beginning

to have it’s impact now.

Another heartening trend was in terms of people viewing insurance as a tax saving and investment

instrument as much as a protective one. A very high number of respondents have opted for insurance

for such purposes and it shows how insurance companies have been successful to attract public money

in recent times.

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

improvement. But therein lies the opportunity for a relative player like Max New York Life. LIC has

never been known for prompt service or customer oriented methods and Max New York Life can build

on these factors.

52
 BIBLIOGRAPHY

 WEBSITES REFERRED
 www.maxnewyorklife.com

 www.irdaindia.org
 www.thehindubusinessline.com

53
ANNEXURE

54
 QUESTIONNAIRE

NAME:_________________________

ADDRESS:______________________
______________________________OCCUPATION:___________________

1. ARE YOU EMPLOYED?

YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

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

a) LIC b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE d) ING VYSYA LIFE

e) MAX NEW YORK LIFE INSURANCE f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

5. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN?

(RANK THEM)

a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS

c) FUTURE INVESTMENT d) ANY OTHER _________ (Specify)

6. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?

(RANK THEM)

a) LOW PREMIUM b) LARGER RISK COVERAGE

c) MONEY BACK GUARNTEE d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS f) ANY OTHER _________ (Specify)

7. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

55
 c) A TOOL TO PROTECT FUTURE

8. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL b) NOT SATISFIED

c) NOT RESPONDING

9. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL b) NOT SATISFIED

c) NOT RESPONDING

10. DO YOU PAY TAXES?

YES NO

11. WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM)

a) FIXED ASSETS b) BANK DEPOSITS

c) JEWELLERY d) SECURITIES, i.e. Bonds, MFs

e) SHARES f) INSURANCE

12. . WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS b) SECURITY

c) TAX BENIFITS

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

a) AFTER 25 Yrs b) AFTER 35 Yrs

c) AFTER 45 Yrs d) ANYTIME

14. HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES d) NON-AGGRESSIVE

e) SATISFACTORY f) GOOD

g) VERY GOOD

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

(RANK THEM)

a) A TRUSTED NAME b) FRIENDLY SERVICE & RESPONSIVENESS

c) GOOD PLANS d) ACCESSIBILITY

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

a) YES b) NO c) UNCERTAIN

17. ARE YOU PLANNING FOR NEW INVESTMENTS?

56
PLANNING NOT PLANING

THANK YOU.

57