SUMMER INTERNSHIP PROGRAM

WITH MAX NEW YORK LIFE

PROJECT TITLE-

RECRUITMENT OF AGENTS
AT MAX NEW YORK LIFE

(SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF

FULL TIME BACTHLOR IN BUSINESS ADMINISTRATION (2006-09) )

Under guidance of:

Faculty Guide: Submitted By:
Mr. Arvind Kumar Singh Akansha Yadav
(Faculty—SAMA) BBA 5th Semester
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67005

PREFACE

The training is generally compared to a `window’ through which the trainee can jump

into experience and observe the activities of the real business world, it also becomes a

`door’ that leads the trainee to become successful in the world of business.

These days’ universities are giving more stress on management training, as it is the first

interface of a management student with the culture of the corporate world. It also gives

the first hand experience to the student by applying the knowledge acquired in class into

actual practice.

Our institute believes in the same and is determined to produce quality students who have

a balanced knowledge of theoretical aspects and practical experience. In the same context

I had to undergo summer training after 5th Semester, in a company.

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ACKNOWLEDGEMENT

“Such thanks I give……”

As one near to those Who Wish Him Live. - Shakespeare

Words often fail to express one’s inner feelings of indebtedness to one’s benefactors; infact,
words are no proper media for this purpose. The same difficulty haunts the student in penning
down his deep sense of gratitude, which he owes to his reverend for this kind of guidance. I take
proud privilege, gratitude and sense of indebtedness from the core of my heart to all those people
who shared with me their rich experience and gave me the opportunity to work on this project.
This project would have been a wild goose chase, if I had not referred various principles and
fundamentals from the books of Philip Kotler, CR Kothari. And books on HR practices in
organizations...
I take this opportunity to thanks Mr. Sachdeva, Sales Manager, Max New York Life, for
encouraging and guiding me in this project.

My special thanks to the project guide Prof(Dr)D.N.Kakkar(Director SAMA Degree College),

Dr.Vinitendra Pratap Singh (Co-ordinator) , Mr. Arvind Kumar Singh (Faculty) member
of “SAMA Degree College-Lucknow”, and my project guide for her learned guidance and
friendly attitude, which had been a source of constant inspiration to me.

AKANSHA YADAV
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TABLE OF CONTENTS

1. Preface

2. Acknowledgement

3. Introduction To Max New York Life

5 Vision And Mission

6 Facts About Real Estates

7 Competitors

8 Project Details

9 Objective

10 Recruitment Of Insurance Advisor

11 Research Methodology ( Questionnaire )

12 Findings

13 SORT Analysis

14 Conclusion

15 Recommendations

16 Bibliography
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INTRODUCTION TO MAX NEW YORK LIFE

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.

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 is Rs. 1032 crore.
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 has
multi-channel distribution that includes the agency distribution, partnership distribution,
bancassurance, distribution focused on emerging markets and alliance marketing through
employed sales force. The company currently has 33 bancassurance relationships, 14 corporate
agency tie-ups and direct sales force at 14 locations. Max New York Life has put in place a
unique hub and spoke model of distribution to deepen rural penetration. The company has 39 (9
hub office 30 spoke offices) offices dedicated to emerging markets in Punjab and Haryana. Max
New York Life offers a suite of flexible products. It now has 38 products covering both life and
health insurance 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 4 riders in group insurance business.
The company currently has more than 7500 employees.

PROMOTERS-
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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.
Since its inception in 2000, the organization has progressed and 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 service provider through a quality approach to business.

MAX INDIA LTD.

Founded in 1985, Max India Limited is a Public Limited company listed on the NSE and BSE of
India with over 26,000 shareholders. Today, Max India Limited is a multi-business corporate,
driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses
of:
• Healthcare (Max Healthcare)
• Life Insurance (Max New York Life Insurance)
• Clinical Research (Neeman Medical Internationa
•
•
•
• MAX ALSO MAINTAINS INTEREST IN-:

• Specialty Plastic Products for the packaging industry (Max Specialty Products)
• Healthcare Staffing (Max Health Staff)

Prominent shareholders are Mr Analjit Singh and a leading private equity firm, Warburg Pincus
which accounts for 28.7% of the total shareholding. The balance shareholding is held by the
public and Institutional Investors.

NEW YORK LIFE LIC

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A Fortune 100 Company founded in 1845, is the largest mutual life insurance company in the
United States and one of the largest life insurers in the world. Headquartered in New York City,
New York Life’s family of companies offer life insurance, annuities and long-term care
insurance. New York Life Investment Management LLC provides institutional asset
management and retirement plan services. Other New York Life affiliates provide an array of
securities products and services, as well as institutional and retail mutual funds.

The mission of New York Life is to maintain its superior 'financial strength', adhere to the
highest standards of 'integrity' and demonstrate 'humanity' by treating its customers, agents and
employees with compassion, consideration and respect.

New York Life is one of the largest and strongest life insurance companies in the world with
more than USD$215 billion assets under management and has received among the highest
ratings for financial strength from the life insurance industry's principal rating agencies: A.M.
Best (AA+), Standard & Poor's (AA+), Moody's (Aa1), Fitch (AAA). According to Moody's,
"New York Life's rating reflects the company's good quality investment portfolio, ample
liquidity, and sound capitalization, as well as the good growth potential of its international
business.”

As a leader in the insurance industry, New York Life continues to bring to its operations new
management concepts, advanced technologies, new distribution and training systems and
innovative insurance products.

WHAT IS INSURANCE
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Every asset has a value for its owner and also for those who are benefited with the existence
of that asset. Insurance is concerned with the protection of economic value of asset.
All asset carry the risk of being destroyed or damaged. But all assets may not necessarily get
destroyed or damaged. Only in a few instances, the probability turns out to be true and the
asset gets actually lost or destroyed by accident or some other unfortunate event before the
completion of its expected life time. The owner and those deriving benefits from the asset
will suffer because the arrangement to make availed its substitute is not yet ready. Insurance
is helpful in mitigating such adverse consequences.

It may be further described as :

 Protection of economic value.
 Mechanism to reduce impact of adverse events on value generating assets.

PURPOSE OF INSURANCE

PERIL – Assets need to be insured because they are likely to be destroyed or made non-
functional, through an accident occurrence. Such an accidental occurrence is known as peril.
Fire, floods, breakdowns, lightning, earthquakes, etc. are perils.

RISK – The damage that these perils may cause the asset is the risk that the asset is exposed to.
Risk means that thee is possibility of loss or damage.

Insurance is a function of UNCERTAINTY. If there is no uncertainty, it cannot be insured.

With insurance people who are exposed to the same risk come together and agree that if any
member suffers a loss the other will share the loss and make good the person who suffered the
loss.

Human life is a income generating asset which can be lost due to the premature death.

ADVANTAGES OF LIFE INSURANCE

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Secured Targeted Saving –A Uniqueness :

Life insurance is not an merely an investment or a saving device.

In any other investment or saving avenues, like bank deposits, savings certificates or mutual
funds r shares are stokes 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 upon 30 or even
more years.

Life insurance has an advantage over the other forms of saving :

 Facility of nomination and assignment makes the claims settlement easy on death.

 Life insurance involves compulsory savings.

 Tax benefits on premium paid as well as the amount receiving by way of claim.
(Specified policies) protected against court attachments.

 Loans can be raised against a life insurance polic

 Monopoly Raj

The nationalization of life insurance was justified mainly on three counts.

(1) It was perceived that private companies would not promote insurance in rural areas.

(2) The Government would be in a better position to channel resources for saving and
Investment by taking over the business of life insurance.

(3) Bankruptcies of life insurance companies had become a big problem (at the time of
takeover, 25 insurance companies were already bankrupt and another 25 were on the verge of
bankruptcy).

HISTORY OF INSURANCE IN INDIA

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The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360 degree turn witnessed over period of almost two centuries.

The business of life insurance in India in its existing form started in India in 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta.

VISION AND VALUES-

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VISION -:

To become the most admired life insurance company in India.

MISSION-:

1. become one of the top life insurance companies in India

2. be a national player
3. be the brand of first choice
4. be the employer of choice
5. become principle 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 significance it must be
focused, up to date, tested and shared.

CARING-:

Max New York Life is redefining the life insurance paradigm by focusing on its customers first.
The service process is responsive, personalized, humane and empathetic. We build brand
champions and every individual who represents the company is considered as a brand champion.

HONESTY-:

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

EXCELLENCE-:

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

COMPETITORS
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At present there are around 16 companies doing business in India in life insurance
sector. MAX NEW YORK LIFE INSURANCE is getting a tough competition from
them. Despite all of them the company has been able to distinguish itself from them
with its quality products and services. The main competitors MAX NEW YORK LIFE
are as below:

 LIFE INSURANCE CORPORATION OF INDIA

 ICICI PRUDENTIAL LIFE INSURANCE
 SBI LIFE INSURANCE
 HDFC STANDARD LIFE INSURANCE
 ALLIANJ BAJAJ LIFE INSURANCE
 BIRLA SUNLIFE INSURANCE
 AVIVA LIFE INSURANCE
 METLIFE INSURANCE
 ING VYSYA LIFE INSURANCE
 RELIANCE LIFE INSURANCE
 SAHARA LIFE INSURANCE
 KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE
 TATA AIG LIFE INSURANCE

INDIAN COMPANIES WITH FOREIGN PARTNERSHIP

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Indian Partner and International Partner

• Alpic Finance Allianz Holding, Germany

• Tata American Int. Group, US

• CK Birla Group Zurich Insurance, Switzerland

• ICICI Prudential, UK

• Sundaram Finance Winterthur Insurance, Switzerland

• Hindustan Times Commercial Union, UK

• Ranbaxy Cigna, US

• HDFC Standard Life, UK

• Bombay Dyeing General Accident, UK

• DCM Shriram Royal Sun Alliance, UK

• Dabur Group Allstate, US

• Kotak Mahindra Chubb, US

• Godrej J Rothschild, UK

• Sanmar Group Gio, Australia

• Cholamandalam Guardian Royal Exchange, UK

• SK Modi Group Legal & General, Australia

• 20th Century Finance Canada Life

• M A Chidambaram Met Life

• Vysya Bank ING

Source: U.S. Department of State FY 2001 Country Commercial Guide: India

There are three other companies with "in principal" approvals:

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(1) Max New York Life. It is a partnership between Delhi based pharmaceutical
Company Max India and New York Life, the New York based life insurance
Company.

(2) ICICI Prudential Life Insurance Company. This is a joint venture between Mumbai based
Industrial Credit & Investment Corporation and the London based Prudential PLC.

(3) IFFCO Tokyo General Insurance Company. It is a joint venture between Indian
Farmers' Fertilizers Cooperative and Tokyo Marine and Fire of Japan.

To date (end of April 2001), the following companies have thus been granted
Licenses:
• ICICI -Prudential,
• Reliance General,
• Reliance Life,
• Tata-AIG General,
• HDFC Standard Life,
• Royal-Sundaram,
• Max-New York Life,
• Birla-SunLife,
• Bajaj-Allianz General,
• Tata-AIG Life,
• ING-Vyasa,
• Bajaj-Allianz Life,
• SBI Cardiff Life.

Note that all of these companies are either in the life insurance business or in the non-life
insurance business. No license has been granted for reinsurance business so far (the size of the
reinsurance business can be 10-20% of the total revenue). No stand-alone health insurance
company has been granted license so far.

Enter the Dragon On December 28, 2000, the State Bank of India (SBI) announced a joint
venture Partnership with Cardiff SA (the insurance arm of BNP Paribas Bank). This partnership
won over several others (with Forties and with GE Capital). The entry of the SBI has been
awaited by many. It is well known that the SBI has long harbored plans to become a Universal
bank (a universal bank has business in banking, insurance and in security). For a bank with more
than 13,000 branches all over India, this would be a natural expansion. In the first round of
license issue, the SBI was absent.
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PROJECT DETAILS

The project included-

1. Bringing to the company the insurance advisors by marketing the company and making
people aware of the company details.

2. Research to understand the comfort and investment level of customer in any insurance
company and his preference for the company.
3. Product knowledge
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OBJECTIVE

The business of insurance can not catch a hold without advisor , so advisor are
eligible, efficient hardworking and fruitful advisor is one of the most important
tasks in the insurance sector.

My project accomplished the task of recruitment of valuable and eligible advisor to

the company, who would provide value to the company both in financial as well as
qualitative terms.

The objectives can be mentioned as following-

To identify the profiles of high performing advisors in insurance company .

To identify the best selling products in insurance industry.

To find out the best kind of investment preferred by investors.

To look for potential clients and churning them in to Max New York Life
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RECRUITMENT OF INSURANCE ADVISORS-

DEFINITION OF AN ADVISOR/ AGENT

1. An agent is one who acts on behalf of another. The ‘another’ on whose behalf the agent
acts, is called the principal. This is the simple definition. The lawyer is the agent of the client,
when he argues the case in court. An ambassador is an agent of his country. It is the function,
which determines the relationship of agency, not the designation.
2. According to Section 182 of the Indian Contracts Act, an ‘agent’ is a person employed to
do any act for another or to represent another in dealing with a third person. The person for
whom such act is done or who is so represented is called the ‘principal’. In the insurance
industry, the term ‘agent’ is ordinarily applied to a person engaged by the insurer to procure
new business. The insurance Act defines an insurance agent as one who is licensed under
section 42 of that Act and is paid by way of commission or otherwise, in consideration of his
soliciting or procuring insurance business, including business relating to the continuance,
renewal or revival of p9licies of insurance. He is, for all purposes, an authorized salesman for
insurance.

ROLE OF AN ADVISOR/ AGENT

 To provide ongoing financial advice to his/her clients:

 Identify future clients
 Make appointments
 Conduct financial review meetings with clients
 Close sale
 Get referrals
 Provide services to clients.
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BENEFITS TO ADVISOR/AGENTS

 To be part of a world-class sales team.

 No start-up capital required.
 Work full time or part time.
 Earn commission, bonus & incentives.
 Unlimited earning potential.
 Be your own boss.
 Flexible career.
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AGENCY RECRUITMENT

RECRUITMENT - THE ACTUAL PROCESS

The most important responsibility of a sales Manager is to achieve sales

growth. It is what staying in business requires for a Max New York Life sales
manager. Part of this growth is accomplished by improving the productivity of
existing agency member. However, bringing sufficient numbers of high quality new
producers (agents or advisors) in to your sales organization each year is an absolute
must.

During the year of appointment, new Advisors usually account for a

relatively small proportion of the organization's total production. This points to a
particularly significant fact, one that simply this- the penalty for not recruiting, or
for inadequate recruiting, is a differed penalty.

Nonetheless, the penalty will be realized in due time. The sales manager s’
numbers one job is to achieve consistent production increases. The most promising
means of successfully getting this job done is to induct a sufficient number of
quality advisors each year.

The most promising means achieving profitable production growth lies in

Unit Manager's sales organization's Capacity to give policy owners good counsel
and prompt, courteous serves- to give them value for premium paid. The best
guarantee of having that capacity comes from retaining large numbers of productive
Advisor. In turn retention and productivity of advisor in your organization depends
largely on the quality and quantity of your recruiting efforts.

Consequently, the development needs of sales organization calls for

successful recruiting. It's a necessity. The induction of a sufficient quantity of high
potential advisor results in substantial, steady growth in production. This is why
manager who move to the top of Max New York Life honor roll and stay there are
always found to be manpower-focused.
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Before we move to the " How to" of recruiting, Let's consider some important
philosophies related to recruiting.

Five Persistent Concerns

A Max New York Life Manager is fully committed in building a high

perfoming, growing agency. It follows five concerns which must be constant in
Sales Manager's annual planning. They are:

• The SEARCH for talent

• The EVALUATION of potential advisors

• The ATTRACTION of advisors

• The RETENTION of advisors

• The PRODUCTIVITY of advisors

Any manager who attains satisfying results in these five areas will enjoy -

• Satisfying sales results

• Outstanding persistency of business
• Superior policy owner service capabilities
• An enviable reputation as a Max New York Life agency builder

• A momentum which comes from the synergistic benefit of success

Obviously, the first three concerns searching, evaluating and attracting-are

vital. The other two concerns, the retention and productivity of advisor, must be
considered together. To attain success might be achieved in either area without total
or real benefits to the agency, the company or the client. There is nothing short term
or temporary about the challenge connected with these recruiting concerns. They are
constant.
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 To provide ongoing financial advice to his/her clients:

 Identify future clients
 Making appointments
 Conduct financial review meetings with clients
 Close sale
 Get referrals
 Provide service to client
 Follows internal sales and reporting system

SUPPORT REQUIRED TO MAKE A SUCCESSFUL

ADVISOR

 High quality management support.

 Extensive training.
 Superior products.
 Attractive payments and benefits.
 Strong reputation.
 Excellent customer service.

FLOW CHART SHOWING HOW TO

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GET POTENTIAL ADVISOR

SEARCH
(Where to look for)

ATTRACT
(How to attract towards life insurance)

EVALUATE
(How to evaluate)

PRODUCTIVITY

RETENTION

COMPANY'S GUIDELINES TO SUMMER TRAINEES FOR AGENCY

RECRUITMENT
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 Philosophy of high standards

 Atmosphere of Success

 Attraction Power

 Decide on the profile of the Constant need of advisors at Max New York Life

 Thread of profile of the advisor Constant need to advisors at Max New York

Life

 Thread of Discontent (TOD)

 Success determined by past performance.

 Build a weekly recruiting success formula

The project on the fore front required to bring to the company the insurance advisors/agents.

This required us as a summer trainee to go to various places and search for the people who
can join with Max New York life as an agent. For this the target market were mostly the
teenagers who are either in search of job or are sitting idle. mostly the graduates and
undergraduates were covered. Also the identified market were the housewives who wish to
have their own earnings and who wish to engage themselves in any sought of productive
activity. Women who can easily pitch up the policies were targeted.

The task involved an effort of persuasion and counseling those targeted,.

The company provided the to be agents lots of facilities which can attract them to this
company.

RECRUITMENT PROCESS MAP

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INITIAL
NAME SELECTION
SCREENING
GATHERING INTERVIEW
INTERVIEW

PURPOSE-DOES HE MEET THE PURPOSE-TESTING THE

PURPOSE-BUILD
INITIAL 5,IS HE WORTH TAKING CONVICTION AND
STEADY PIPELINE
THROUGH OUR TESTS. SUSTAINABILITY OF A
OUTCOME- RULE OUTCOME- FILLED IN INTERVIEW CAREER
OF 31 FILE. SELL THE CAREER OUTCOME-SHORT
LISTING

TESTS-
NUMERICAL CAREER
ABILITY & P-200
SEMINAR
REFERENCE
CHECKING

PURPOSE-SCREEN THE PURPOSE- PURPOSE-GET HIM TO

CANDIDATE AND TO FIT EVANGALISE FEEL HIS INITIAL
HIM TO THE CLOSEST INSURANCE AND MARKET
SUCCESSFUL PROFILE SELL IT AS A CAREER. OUTCOME- LIST OF
OUTCOME- PROFILE OF OUTCOME- I WANT PROBABLE BUYERS
THE CANDIDATE AND TO DO IT(HIGHER
LIST OF PROBES CONVERSION RATIO)

EVALUATE P-
CAREER APPLICATION
200/MARKET
INTERVIEW FORM
SURVEY

PURPOSE- PURPOSE- REVIEW

CANDIDATE TO OF ALL WHICH HAS
ASSESS HIS MARKET BEEN DONE AND
AND GET REFERRED
LEADS CHECK ON
OUTCOME- MOTIVATION,
READINESS TO DREAMS &
ACCEPT THIS CAREER LONGIVITY
OUTCOME-
CANDIDATE READY
TO JOIN

PROVISIONS FOR THE AGENTS TO BE RECRUITED

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The company explained us the various policies and conditions which were to be described to
the people so that they are persuaded to join the company.

The company kept these provisions and conditions as attractive and competitive as possible
in comparison to other company’s provisions.

CRITERIA FOR AGENT SELECTION

The following are the conditions on which the agents were to be selected.

1. the person selected should be a graduate or a person pursuing graduation.

2. the person should be living in the city for past 5 yrs atleast.
3. the person should be above 20 yrs of age.

Besides these basic conditions the person should posses

1. confidence
2. zeal to work
3. good communication skills
4. convincing power
5. Smart appearance

STRATEGIES INVOLVED IN SEARCHING POTENTIAL ADVISORS

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The search for prospective advisors must be continuous and systematic- Just like
prospective for sales, you must search among several sources on a regular basis
sources are broadly classified as primary source and secondary source.

 Personal observation

 Present Advisor recommendation.

 Client referrals

 College campuses

 Seminars

 Newspaper advertisement

 Direct Mail

THE METHOD ADOPTED

Following method was adopted by us for the purpose of recruiting Financial

Advisors to the company:

• The first activity that was being done was to find/ develop a market for
the purpose of getting Financial Advisors. For this we followed
prospecting- prospecting is looking, judging, scanning people in our
surrounding who can join as Financial Advisors and can be of any worth
to the company. A prospect is a person who possesses the essential
requirements to become Financial Advisors.

• We began with the people we know which constituted our Natural

Market. It consisted of relatives, friends, neighbors, co-workers and
anyone whom we know or are familiar with.

• A self indicative booklet, "project-200" was being filled by us as per

instructions mentioned in it. There were separate categories like my
relatives, My friends, My neighbors, My colleagues, etc. Under the above
mention categories we filled Name, Location and Contact Numbers in
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respective column. This helped us in identifying our Natural Market and

it served as a ready reference. Once we have done with the filling of
project 200 we proceeded by making Telephonic Calls and making
Appointments. The appointment venue was the company's meeting room.
Those who turn to appointment were given a presentation by us.

THE PRESENTATION

The aim of presentation was:

1. To make the prospect familiar with the company's profile.

2. To make the prospect understand the requirement on the part of Financial

Advisors.

3. To make the prospect aware of earning and carrier growth prospects

associated with the company.

4. To motivate the prospects to join the company as Financial Advisors.

INITIAL SCREENING FORM

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The prospects who turned up were given an initial screening form wherein they were required to
fill up some details about themselves.
This initial screening form was just meant to keep a track of all the people who were interested in
the job offered and visited the company for the counseling session.

* Note- the Performa of the form has been provided as an annexure at the end.

Also we as summer trainees were required to keep a record of the recruitments made every
week.

For this we were provided with a recruitment sheet wherein we were to mention the name,
city, occupation and phone number of the candidate.

Note.- the Performa of the form has been attached as annexure at the end.
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STEPS/PROVISIONS TO MOTIVATE THE SUMMER TRAINEES TO BRING IN

MORE ADVISORS TO THE COMPANY

The company followed a motivation pattern to attract the summer trainnes for this job.

The trainees were provided with a stipend of rs.1500 per agent recruited.

Also the company provided for a trip to Pataya if they meet the target of 10 advisors.

Besides this, the trainees were provided with various gift vouchers and gadgets like Steam
iron, ipod, camera and mobile phones.

These incentives motivated the summer trainees to dream for higher targets.

3. RESEARCH TO UNDERSTAND THE COMFORT AND INVESTMENT

LEVEL OF CUSTOMER IN ANY INSURANCE COMPANY AND HIS
PREFERENCE FOR THE COMPANY

This was the second task which we were assigned after completion of 1 month.

We were provided with sum questionnaires which we were asked to get them filled from people
from various strata fo life. These questionnares were designed so as to accumulate knowledge
about the reaction and satisfaction level of people when they come across any insurance
company in general and Max New York Life in particular.
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RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic.
Research is an art of investigation. The Advance Learner’s Dictionary of Current English lays
down the meaning of research as “a careful investigation or inquiry especially through search for
new facts in any branch of knowledge “. Some people consider research as a movement, a
movement from known to unknown .it is actually a voyage of discovery
Research methodology mean what's method apply to do any type of research and. how
can you collect the data from the field'. Before conducting any type of research and analysis and
inference based on it, the first and the foremost thing is to collected the date and after the
proceeding in a systematic manner to finally reach at result. There are the various steps to be
followed such as:
 What should be the sample size?
 From where it can be taken?
 Compilation of data
 Presentation of data
 Analysis and presentation of data
 Making inference
Research can be conducted by researcher by:-

1. UNDERSTANDING THE ORGANIZATION:

An in depth study of the Organization's working was done. The motive was to know the working
of the Organization and why Max New York Life is considered as number one. Current status of
the competitors is considered as to analyze their competitive situation. Moreover we wanted to
give the feed back to the organization as how to increase its share in the insurance sector of
Lucknow.
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2. DEVELOP A SURVEY QUESTIONNAIRE:

A questionnaire was developed to understand the comfort and investment level of customer in
any insurance company and his preference the with the Organization. To know the areas where
Max New York Life lack so that the Organization can improve upon its weak areas and be able
to extract best business.

3. CONDUCT SURVEY:

After finalizing the sample, who may be old or new, meetings were scheduled and survey
conducted. We contacted the Customers, fixed appointment with them and collected data. Data
obtained was then analyzed.

4. ANALYSIS AND INTERPRETATION OF INFORMATION

The collected data should be properly analyzed ,so that some fruitful information can be yielded .
The data must then be interpreted in a manner that the analysis may be easily presented before
anyone and easy to understand.
 32

TYPES OF RESEARCH:-

1. Descriptive and Analytical Research:-

Descriptive research include survey and fact finding enquiries of different
kinds.
In analytical research, the research has to use facts or information already
available, and analyze these to make a critical evaluation of the material.

2. Applied and fundamental Research:-

Applied research aim at finding a solution for an immediate problem facing a society or an
industrial /business organization.
Fundamental research is mainly concerned with generalizations and with
the formulation of a theory.

3. Quantitative and Qualitative Research:-

Quantitative research is based on the measurement of quantity or amount.
Qualitative research is concerned with qualitative phenomenon, i.e., phenomena relating to or
involving quality or kind.

4. Conceptual and Empirical Research:-

Conceptual research is used by the philosophers and thinkers to develop new
concepts or to reinterpret existing ones.
Empirical research relies on experience or observation alone, often without
due regards for system and theory.
 33

The type of research adopted to perform the project work is Descriptive Research as the
information is collected through survey by questionnaire, without giving regards to any theory
and concepts. The need of primary information required for the project topic can be done through
Descriptive Research. The facts and information was surveyed and various fact finding enquiries
of different kinds. The description of current state of affairs in the current situation of the
insurance market may be analyzed.

The comparison of Max New York Life and other private Life Insurance companies
depends on the customer’s investment criteria and not in the hands of the company itself. The
performance of insurance company do not depends on the companies wish to earn profit, but the
investors wish to invest in any Life Insurance Company
The secondary information required to support the project topic findings is being colleted
through Analytical Research, in which the researcher has to use facts and information already
available, and analyze these to make a critical evaluation of the material. In analytical research,
the research has to use facts or information already available, and analyze these to make a critical
evaluation of the material.

The data colleted to conduct this type of research has been prepared from IRDA
book,AIP book, execrator , magazines , newspaper annual and weekly issues, books on
insurance.
 34

RESEARCH INSTRUMENT USED IN DETAIL:

PRIMARY

 Questionnaires: A formal list of the questions answered by the people who are thought to
have the desired information and later analyzing the responses is the questionnaire
method. It can be used to get some data relative to most problems. We have used
structured questionnaires as a formal list of questions produces more reliable results.

For collecting the data we used questionnaire method. The questionnaire was design mainly
of objective nature and partially of descriptive nature to get suggestion regarding housing finance
compares. We visited various government department and business organization for required
information according to our Performance knowing the views of the people and get their
suggestions.

 Personal Interviews: Personal interview is the most versatile and flexible kind of
technique. Direct face-to-face conversation helps in getting accurate data. Personal
interview were done with the people in order to get the required information.

SECONDARY

 Websites.
 Brochures
 and Company Magazines.
 35

SAMPLING PLAN

Research is basically depend up on the data and that data depend upon the size of sample
we want. So deciding of sample size is mainly based on the nature of objective of the research.
Sample size has to . confirm the objective on each and every respect. Suppose we are going to
decide any effective decision on the basis of this report or set up any new facts. On that position
we have require large size of sample on comparison to find out a trend.
Here our objective is simply go to "comparative analysis of Max New York Life and other
private insurance companies. So we preferred to go with a sample size of only 250 data into city
of Lucknow

SAMPLING TECHNIQUES USED

 Systematic Sampling
In some instances , the most practical way of sampling is to select every next item on the
list. Sampling of this type is known as systematic sampling. An element of randomness is
introduced into this kind of sampling by using random numbers to pick up the unit with which to
start.
In the project the samples are drawn from different zone of Lucknow city including 50
persons in each zone constituting 250 persons all together.

 Stratified Sampling
If a population from which as ample is to be drawn does not constitute a homogenous
group stratified sampling technique is generally applied in order to obtain a representative
sampling. Under stratified sampling the population is divided into several sub population that are
individually more homogenous than the total population (the different sub population are called
‘STRATA’ and then we select item from each stratum to constitute a sample.
 36

In the project ,the population was selected randomly from each zone having equal
chances to be selected as a sample. The population in each zone is called strata which includes
25 persons from each zone.

 Sequential Sampling
This sampling design is somewhat complex sample design the number of sample one more than
two but it is neither certain nor decided in advance this type of system is often referred to as
sequential sampling. thus in brief we can say that in sequential sampling one can go on taking
samples one after another as long as one desire to do so.
In the project, the samples are being surveyed in a sequential manner from every zone.

SAMPLE DESIGN

The selected respondents constitute what is technically called a sample and the selection process
is called sampling technique. the survey so conducted is known as sample survey.

1. Types of universe: - The sample design is clearly define the set of objects, technically called
the universe. The total population of India is universe for Max New York Life. The population of
the whole country may be considered as the sampling population.

2. Sampling unit: - Sampling unit may be a geographically one such as state, district, village,
etc. or a construction unit such as house flat etc. or it may be a social unit such as family club,
school etc or it may be an individual. The sampling unit is decided by dividing Lucknow into
central, eastern, western, northern and southern zones

3. Source list: - It is also known as sampling frame from with sample is to be drawn. It is
decided by considering the people who know about INSURANCE

4 Size of sample: - This refers to the number of items to be selected from the universe to
constitute a sample size. The sample size chosen by me is 125 persons, 25 persons in every zone.
 37

5. Sampling procedure:-It decides about the technique to be used in selecting the items for the
sample. The procedure of deciding the sample is done zone wise.
 38

DEMOGRAPHY

RESEARCHER’S NAME:- ………………………………………………

NAME OF THE ORGANISATION ………………………………………………
ADDRESS:- ………………………………………………
EMPLOYEE CODE:- ………………………………………………
NUMBER OF RESPONDENT:- ………………………………………………
DATE:- ………………………………………………

 RESPONEDENTS NAME:-……………………………………………………………..
AGE:-………………

 ADDRESS:-

………………………………………………………………………………………………

………………………………………………………………………………………………

 E-MAIL ADDRESS:-……………………………………………………………………...

 PHONE NUMBER/MOBILE.NO.………………………………………………………..

 MARRITAL STATUS:-

Married Unmarried

 OCCUPATION:-

Unemployed Part time worker

Service-public Service-private

Self employed Commission

 39

QUESTIONNAIRE

Q) What is your annual income of your family ?

1,00,000+ 2,00,000+
3,00,000+ uncertain(business)

Q)How much do you expect to save annually?

1% - 5% 5% - 20%
20% above Can’t say

Q)Are you currently holding any life insurance policy?

Yes No

If yes, than from which company………………………………………………………..

Q)Do you believe that women (housewife/working women) should be insured?

Yes No

Q)State the number of policies you are holding

1-2 policies 3-4 policies

5-6 policies More than 6 policies

Q)For you life insurance product is

Need Tax saving

Future planning Saving avenue

Q) Are you satisfied with your insurance company

Yes No

Q) What is the most reliable medium to collect information for investing in any private insurance
company?

Internet Trusted friend

Advisor ,agent, broker Be brand loyal
 40

Q) Choose the options from following to rank the top five companies

 ICICI Prudential Life Insurance Co. Ltd.

 HDFC Standard Life Insurance Co. Ltd.
 Bajaj Allianz Life Insurance Co. Ltd.
 Birla Sun life Insurance Co. Ltd.
 ING Vysya Life Insurance Co.Ltd.
 Max New York Life Insurance Co. Ltd.
 Met Life India Insurance Co. Ltd
 Kotak Mahindra Old Mutual Life Insurance Ltd.
 SBI Life Insurance Co. Ltd.
 Tata AIG Life Insurance Co. Ltd.
 Relience Life Insurance Co.Ltd
 Aviva Life Insurance Co. Ltd.
 Sahara India Life Insurance Co. Ltd.
 Shriram Life Insurance Co. Ltd
 Bharti AXA Life Insurance Co. Ltd

1) in order of customer service

 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..

2) in the order of premium rate

 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..

3) in the order of receiving claim status

 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..

4) in the order of range of policy

 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..
 ………………………………………………………..
 41

 ………………………………………………………..

Q)Why do you rank any private insurance company to be no.1

Brand name Returns

Service Reliability
Follow the crowd Easy claim on maturity

Q) Does installment payment(half yearly, monthly) system effect your choice of insurance
company
Yes No

Q)If you are have some complain with the current insurance company, then what will you like to
do?

Leave as the situation is Freeze the policy

Switchover to other company Do complain again

Q) Are you Max New York Life insurance policy holder?(178 resp.)
Yes No

Q)What do you think of Max New York Life Insurance(72 resp.)

Excellent Good
Satisfactory Poor

Q)Give some productive and protective suggestions for Max New York Life Insurance
……………………………………………………………………………………………………
…………………………………………………………………………………………
 42

ANALYSIS
Q) What is your annual income of your family ?(250 resp.)

ANNUAL INCOME OF RESPONDENTS

ABOVE
10%

3,00,000 1,00,000
1,00,000
20% 2,00,000
44%
3,00,000
ABOVE

2,00,000
26%

Q)How much do you expect to save annually?(250 resp.)

INVESTMENT DECISION

140
120
100
NO. OF 80
RESPONDENT
S 60
40
20
0
1% - 5% 5% - 20% 20% above Can’t say
% OF SAVING
 43

Q)Are you currently holding any life insurance policy?(250 resp.)

NUMBER OF LIFE INSU

NO, 72
Q)State the number of policies you are holding(178 Respondents)

NUMBER OF POLICI

80
70
60
NO. OF 50
 44

Q)For you life insurance product is(250 Respondents)

REASON

Tax saving , 38
Q) Choose the options from following to rank the top five companies

 ICICI Prudential Life Insurance Co. Ltd.

 HDFC Standard Life Insurance Co. Ltd.
 Bajaj Allianz Life Insurance Co. Ltd.
 Birla Sun life Insurance Co. Ltd.

 Saving avenue,
ING Vysya Life Insurance Co.Ltd.
Max New York Life Insurance Co. Ltd.
 Met Life India Insurance Co. Ltd

 59
Kotak Mahindra Old Mutual Life Insurance Ltd.
SBI Life Insurance Co. Ltd.
 Tata AIG Life Insurance Co. Ltd.
 Relience Life Insurance Co.Ltd
 Aviva Life Insurance Co. Ltd.
 Sahara India Life Insurance Co. Ltd.
 Shriram Life Insurance Co. Ltd
 Bharti AXA Life Insurance Co. Ltd
 45

Q) Are you MAX insurance policy holder?(178 resp.)

POLICY HOLDERS OF MAX NEW YORK

LIFE
120
100
80
60
40
NO. OF 20
RESPONDE 0
NTS YES NO

RESPONSE

Q)What do you think of Max New York Life Insurance(72 resp.)

RESPONSE OF MAX NEW YORK LIFE

INVESTORS

EXCELLENT,
POOR, 4
10
SATISFACTOR
EXCELLENT
Y, 13
GOOD
SATISFACTORY
POOR
GOOD, 45
 46

Q)Give some productive and protective suggestions for Max New York Life Insurance
……………………………………………………………………………………………………
…………………………………………………………………………………………

The suggestions given by the public mostly concentrated on the marketing aspect for the
company and introducing new products and improve its offerings.
 47

FINDINGS

When we go to prepare report there are so many work to do in report for betterments of
Max New York Insurance Company
We go to collected the data from investors, websites, magazines , books on insurance and
news papers. On the basis of collected data we analyzed and categorized into many field like
products, agents, services, complaints, premiums, tax benefits etc. After categorizations and
analysis of the. data we can show chart and explain according to categories .Lastly on behalf of
conclusion we give the suggestion for better position and work of the company

Whole report brief is that, if Max New York Life. wants to improve share and continue to
be no.1 private life insurance company of India, they need to advertise itself in market through-
print media channels, television, distributing pamphlets. Hoarding or banners in very important
area of different cities. Monthly and half monthly can do a fine campaign .conduct an insurance
fair ,since the company is not so popular among the masses.
Some other points have been drawn as conclusion:-

 Awareness about MNYL is not very high

 In middle family/lower buying according to price plays an important role.
 But in high and upper middle class family brands plays an important role.
 Customer thinks that a good policy itself constitute quality, features, after sales service
etc.
 Brand is the main feature of the product in view of customer but the price consciousness
is a little higher in middle class family than in upper class family.
 Perception before buying policy price takes first and benefits takes second place.
 Competition is very high with other insurance companies like Bajaj , ICICI, HDFC
Standard, TATA AIG etc.
 48

MNYL in Insurance Sector comes in market with good and attractive policies, like Smart
assure ,life maker premium, Life partner plus, smart steps, Retirement plans etc.. are very
attractive and advantageous policy, which makes profit for customer in a real way. In this way, it
is no doubt that this company can prove itself no. 1 company in this area and keep continuing it
in future. After analyzing all the aspects of the company policy I found that it is customer
friendly and it fully caters to the needs and requirements of the customer. It lays a great
emphasis on customer satisfaction in addition to employee retention.
The other companies also want to become number one ,so they are continuously working
hard on it. They have reduced premium rate and are providing other such additional facilities to
make new customer. They are trying hard but they have to do a lot. For example the advisors are
recruited with
Rs.725 in MNYL. But other private insurance companies are charging less than this as Rs.250,
Rs.450, Rs.500, Rs.700. so the company should look into this aspect to get in more advisors
working under it.
From the research conducted by me shows that both primary and secondary data support
to the fact that Max New York Life has certain special features in products , service and assets of
the company which any other company does not.all that company needs to do is to create an
awareness of itself in the minds of general public, Thus, it can enjoy the number one position
among the private insurance companies. The companies also make many innovations to hold the
investors to the company and make new investors. It tries to introduce new products and also
give small gifts to the investors in special cases.
 49

SWOT ANALYSIS
STRENGHTS :
1. Strong and well educated marketing team.
2. Some products are better then other companies in the industry.
3. Max New York Life use new technology in their work.
4. Working environment of the office is good.
5. Max New York Life is more careful of its customers.
6. Max New York Life uses aggressive marketing strategies.

WEAKNESSES :

1. Premium for some policies are comparatively high.

2. Branches of Max New York Life are less in numbers.
3. Some products are not promoted properly.

OPPORTUNITIES :
1. These days people are interested to avail the products and services of the
insurance company.
2. Insurance is the fastest growing sector in the industry.
3. Still there are 70% of the population left that had not invested in the
insurance company.
4. Many products are more competitive in comparison to other companies.
5. A big market is untouched.
THREATS :

1. Aggressive marketing strategies opted by the other companies.

2. Not enough knowledge about the importance of life insurance.
3. Government policies are main threats for the insurance companies.
 50

CONCLUSION

Despite innumerable delays the sector has finally opened up for private competition. The threat
of private players shaking and giving the run for incremental market share for the Public Sector
mammoths has been overplayed. The number of potential buyers of insurance is certainly
attractive but much of this population might not be accessible for the new insurers. Since
distribution will be a key determinant of success for all insurance companies regardless of age or
ownership, Indian Insurance companies should broaden the distribution network. As the product
move towards the mature stages of communication (increased awareness and popularity) they
could then a host of new channels like grocery stores, direct mails. Regulators must formulate
strong and fair guidelines and ensure that old and new players are subject to the same rules and at
the same time the government should ensure that the IRDA does not become yet another
toothless tiger like CEA or TRAI.

In a reopened Indian insurance market, regulators must formulate strong fair and transparent
guidelines and make sure that old and new players are subject to the same rules. Companies
meanwhile must be prepared to set and meet high standards for themselves. The big challenge
for both companies and regulators is to ensure that they replicate the benefits of the past while
eliminating its ills.
 51

RECOMMENDATIONS
1. More advertising should be done by print and electronic media as till the date only very
few advertisements are made for electronic media
2. The company should advertise for the major products as Smart Assure as customers are
not aware and competitors do not have products like this.
3. It should also launch new products that are new and profitable to both customer and
company
4. The channel of distribution which brings business for the company should be trained,
guide and facilitated
5. Should keep track on the competitors, so that the company should not lack behind in any
field which is being adopted by the investor.
6. Customers should be provided more expert facility to reduce the inconvenience
7. The company should introduce awareness camps, to create new customers.
8. The company should also try keep a good amount of competent advisors who will prove
as an asset for the company

PRODUCT KNOWLEDGE

The summer trainees along with the above mentioned tasks were also imparted
knowledge about the offerings of the company.

The sales managers from time to time kept us up to date about the various
products of the company in the form of insurance policies/plans.
 52

BIBLOGRAPHY

www.irda.com
www.maxnewyorklife.com
www.licindia.com
www.wikepedia.org
www.lifeinsurancewiz.com
Insurance and risk management- PK Gupta
Research methodology- CR Kothari
Marketing Management – Philip Kotler
Articles and journals on insurance