Dams - Insurance Project

PREFACE

SUMMER TRAINING is an integral part of the curriculum of the MBA course

after the completion of Ist year. It gives the student a feel and inside into the

working of the real corporate world. The students are able to get practical

knowledge of the working of the organization. During the short stint with the

industry, the trainee gets to learn the various aspects of an organization like the

culture followed the functional aspects etc.

In today’s corporate and competitive world, I find that insurance sector has the

maximum growth and potential as compared to the other sectors. This growth

potential attracts me to enter in this sector and MAX NEW YORK LIFE

INSURANCE has given me the opportunity to work and gain insightful

experience in this highly competitive and growing sector.

1

ACKNOWLEDGEMENT

“How a person say thanks when there are so many people contributing towards success of your work……………”

one of the major contributors of the success of my training has been the environment of the organization, the corporation of all those whom I met and approached for help in the organization. Their support, stimulating successions and encouragement helped me in all the times of my research project.

I would like to express my heartiest gratitude to__________ for giving me an opportunity to be part of such an esteemed organization. This project could not have been smooth sailing but the guidance of my project guide ________ helped me throughout the project, his mentorship strongly supported me to do the necessary research work ensuring an exciting learning experience.

Finally I am indebted to my project guide ___________ faculty__________ my fellow summer trainees and my parents who gave their full-fledged support and co-operation for successful completion of my project.It was intended learning experience for me.

Akanksha Gupta

2

INDEX

PARTICULARS Page No.

Preface Acknowledgement Declaration Objective of the study

INTRODUCTION

Introduction of the insurance Role of insurance in economic development History of Indian insurance industry Functions of insurance Types of insurance

Life insurance Standard clauses in insurance policies General insurance Fire insurance

Insurance Act1938, IRDA Act 1999 Introduction of the company

Company profile Organization structure Achievement Product

Insurance companies

3

Role of an agent in insurance companies

Role of an agent in MNYL

Introduction to Form filling Portal Illustration & Aml

RESEARCH METHODOLOGY

Objective of the research Research hypothesis Method of data collection Design the research plan Limitations

ANALYSIS

Data analysis and data interpretation

SUGGESTIONS AND RECOMMENDATIONS

Recommendations and suggestions Conclusion

BIBLIOGRAPHY

ANNEXURE

Script Questionnaire Data base

4

DECLARATION

I, hereby declare that the project entitled -----------------------------------------

At Max New York life insurance Company has covered all information

and facts in this report are my findings and are original in nature, which are

collected from various sources. The same has never been submitted by the

undersigned either in part or in full to any institution.

This information is true to the best of my knowledge.

Akanksha gupta

5

DEFINING THE PROBLEM

Objective of study

The purpose of research is to find out lacking in form filling, portal illustration and Aml by agents advisors in the organization. The research needs to know enough about the agent’s problems and expectations so that they are retained in the organization for longer time.

Therefore, this project was an attempt to reach at the core of problem, under stand its basic causes and relatively design a solution for it. Certain methodology was adopted for analyzing the problem and working on it, which can be studied further in detail.

6

7

Introduction to Insurance

What is insurance?

The business of insurance is related to the protection of the economic

value of assets. Every asset has a value; the asset would have been created through

the efforts of the owner. The asset is valuable to the owner; because he expects to

get some benefits from it. The benefit may be an income or something else. It is a

factory or a cow, the product generated by is sold and income is generated. In the

case of motorcar, it provides comfort and convenience in transportation and there is

no direct income.

Every asset is expected to last for a certain period of time during which it

will perform. After that benefit may not be available. There is a lifetime for a

machine in a factory or cow or a motorcar. None of them will lose forever. The

owner is aware of this and he can so manage his affairs that by the end of that period

of lifetime, a substitute is made available. Thus, he makes sure that the value of

income is not lost. However, the asset may get lost earlier. An accident or some

other unfortunate event may destroy it or make it non financial. In that case, the

owner of those driving benefits there from, would be deprived of the benefit and the

planned substitute would not have been ready. There is an adverse or unpleasant

situation. Insurance is a mechanism that helps to reduce the effect of such adverse

situation.

8

ROLE OF INSURANCE IN ECONOMIC INSURANCE

History of Indian Insurance Industry

The history of insurance in India dates back to the year 1818, when the Oriental Life

Insurance Company was formed in Kolkata. The Life Insurance Act of 1912 marked

the beginning of a new era in the insurance sector of India.

The Indian Insurance Companies Act was passed in the year 1928. This act

empowered the government of India to gather necessary information about the life

insurance and Non-life insurance organizations operating in Indian financial

markets.

The Triton Insurance Company Ltd. Formed in 1850 and the first of its kind in the

general insurance sector in India. The Indian Mercantile Insurance Limited was

established in 1907, and was the company in India to handle all classes of insurance.

Insurance industry has always been a growth oriented globally. On the Indian scene

too, the insurance industry has always recorded growth vis-à-vis other Indian

industries. The insurance sector in India is one and half centuries old.

The Insurance sector in India is governed by –

The Insurance Act, 1938

The Life Insurance Corporation Act, 1956

9

General Insurance Business (Nationalization) Act, 1972

Insurance regulatory and Development Authority (IRDA) Act, 1999. Indian

insurance industry can be featured by:

Functions of Insurance

The functions of insurance can be bifurcated into three parts, which

are shown below:

Types of Insurance

Insurance can be divided into two types: -

10

LIFE INSURANCE

An important part of sound financial plan, Life insurance

ensures financial protection and enables maintenance of the

same lifestyle even after the unfortunate demise of a loved

one. The beneficiaries can utilize the money to replace the

income one would have earned or help pay off debts or other

expenses. Apart from these, there are other risks that need to

be managed in professional and private life. And Policy

Bazaar is here to assist you find the right life insurance

solution for you. The choice of policies, whether it is term life

insurance or ULIPS or Endowment plans or Whole Life

Policies, the options

11

Available are difficult to zero down on which best suites the

needs. Backed by advanced technology and the gurus of

insurance domain we can provide you the best quotes of the

most suitable policies at a flash of time. Fill in your basic

requirements in the online form provided and our expertise

will follow up on the same and fetch the best life insurance

solutions from trustworthy insurers.

The business of life insurance in India in its

existing from the started in India in the year 1818

with the establishment of the

Oriental Insurance Company in Calcutta

Parties to the insurance contract

The parties to the contracts of insurance are the ‘insurer’ and the

‘insured’. The person who undertakes the risk under the contract is

12

called the ‘insurer’ and the person to whom the undertaking is

given is the ‘insured’. Section 29(a) of the insurance Act defines

insurer and it gives a list of persons who can be qualified an

insurer. As per the provisions of the section the insurer means:

a. An individual,

b. An unincorporated body of individual,

c. Body corporate incorporated under the laws of the country other than in India carrying on insurance business,

d. Body corporate incorporated under any law in force in India or under the Indian companies Act, 1913 and carrying on the business of insurance in India,

e. Any subsidiary company incorporated under the provisions of companies Act and carrying on business in India,

f. Any person, who in India having a contract under writers with the ‘society of Lloyds ‘ authorized to undertake the insurance business in India till the expiry of the contract,

g. An India insurance company, which is termed and registered with a provision to wind up the business as per the provisions of the companies Act, 1956,

h. An association of partnership firm registered and eligible to be governed by the provisions of Indian partnership act, or i. Any agency permitted or sanctioned to undertake the insurance business either under section 30 of Life Insurance Acts of India, or sections 18 and 19 of general insurance Act.

PREMIUM The Insurance Act, 1938 has not define the premium. The first stage of insurance contract is submission of duly field in proposal form by the insured to the insurer, Sec. 64 VB says

13

that ‘no risk to be assumed unless premium is received in advance ’. This explains the need of premium in to the risk. They are two sides of a coin. The policy will be effective from the date of acceptance; but the risk cover will be from the date of payment of insurance premium. The important factor for calculating the risk and premium is dependent upon various possibilities and probabilities.

POLICY

The instrument in which the contract of insurance is generally embodied is called the policy .The policy is not the contract; it is the evidence of the contract.

Term of policy means the duration for which the policy will cover the risk. Except in case of life insurance, a contract of insurance is from year to year only and the insurance automatically comes to an end after the expiry of the year unless of course, it is renewed.

The insurance contract is a contract between the insurer and insured. It is

an aleatory, voluntary, executory and a conditional contract between the two parties.

The essential features of insurance contract are as here under:

The insurance policy is standard form of contact between the insurer and the insured.

The insurance policy reduces the term of agreement to writing. The policy, a document of contract, contains term and stipulations of a

contract regarding period of the contract and also about risks and its valuation.

The policy contains the indemnity clause by which the insurer undertakes to indemnify the loss of insured on the happening of a specified event.

It contains the stipulation of the consideration in the shape of premium payable by the insured during the continuance of the contract.

All the formalities required to form a valid contact are to be observed in formulating the contract.

Legal principal of insurance

14

The fundamental principles of insurance contract are mentioned below:

Good faith Insurable interest Law of indemnity Proximity of cause Risk Mitigation of loss Subrogation Contribution

Good faith (uberrimae fide)

The uberrimae fide is the foundation on which the insurance policy is constituted and the insurance contracts are exceptions to a cardinal rule of commercials principle that, he who buys should be aware (caveat emptor). The product and subject matters, i.e. risks are intangible assets in the hand of the insured and the insurer. The insured, by knowing the quality and quantity of the risk, proposal for a contract and the insures by knowing the facts and conditions laid down in the standard form of proposal and after considering the proposal of the insured sells the insurance produc to him.

Thus, the duty of disclosure forms an important part of the contract and disclosures of facts is presumed with good faith.

Insurable interest

Consideration is one of the essential elements to make the contract a valid one. Insurance contract, being a contract with uncertainty , is often treated as a wagering contract. Where the object of contract is wagering in nature it is not a lawful contract. On the other hand in existence of insurable interest, in an insurance contract has made the insurance contract as valid contract. The insurance act does not define the insurable interest. Presence of property right, interest, life or potential liability as a

15

subject matter of the contract and is essential feature of insurable interest. There should be recognized relation under the law between the insured and subject matter of the contract. The insurable interest may be created by the operation of common law by a contract or by a statute.

Insurable interest and life insurance policies:

a. One’s own life: In a life insurance policy a person need notprove the insurable interest when the policy is on one’s own life. A person has insurable interest in his own life to an unlimited extent.

b. Husband and wife: the law recognizes the existence of insurable interest in the life of one’s spouse. This is an exception to the general rule that insurable that insurable interest is a pecuniary interest. The interest in this case is much higher than the pecuniary interest.

c. Parent and child: Law of England and India does not recognize the insurable interest in the policies taken by the parents on the life of their children. But in USA, the courts have recognized the insurable interest if the parent purchase policy on life of their child.

d. Other relations: Insurable interest is also recognized in the policies where the creditor has purchase the policy in the name of a debtor and by an employer in the name of an employee. A business partner has the insurable interest in the life of his business co-partner to the extent of the partner’s share in the business.

Principle of indemnity

In general, the contract of insurance is the contract of indemnity in which the insurer promises to indemnify the insured from the loss or damage of asset due to risk attributed to it. It is the payment of many or the pecuniary interest that is compensated due to happening of a certain event to the insured subject, this principle, In India, is applicable to all the policies other than life policies, because the valuation of life cannot be made. Marine insurance, fire insurance and property insurance stand in relation to the principle of indemnity. Payment of insurance amount i.e. pecuniary benefit depends upon various factors. In England and also in USA, it is a very much – recognized principle

16

Proximity of cause

The proximity of cause is the other important element of insurance contract. The payment of compensation depends upon the nature and proximity of the cause resulting in the loss to the asset. It is the cause without which the loss would not have occurred. It is the cause, which is most closely and directly connected with the loss not necessarily in time but in efficiency and effectiveness. This doctrine is applicable when the insured peril need not be the initial cause and it is not direct result of the operation of an external peril, but then risk insured against must actively take place. An insurer is liable for any loss proximately caused by a peril insured against.

Risk

The insurer undertakes to protect the insured from a specified loss. The insurer, after taking the factor influencing risk, calculates the risk and a notice for payment of the premium is issued to the insured. The risk in a contract can be assumed only from the date on which the premium has been paid.

Mitigation of loss

In the event of some mishap to the insured property, the insured must take all necessary steps to mitigate or minimize the loss, just as any prudent person would do in those circumstances. If he does not so, the insurer can avoid the payment of loss attributable to his negligence. But it must be remembered that though the insured is bound to do his best for his insurer, he is not bound to the so at the risk of his life

.

Subrogation

It is defined as the transfer of rights and remedies from the insured to the insurer who has indemnified the insured in respect of the loss. This doctrine is applicable to fire and marine insurances. In such cases, the insured has the right to subrogation when the insurer pays for a total loss. In case of partial losses, the insurer is not eligible for the title of the subject, but he is subrogated to all rights and remedies of the assured in an d in respect of the subject matter insured as from the time of the loss or to an extent of the amount paid.

Contribution

17

It is the principle of insurance by which the insured is prevented from recovering more than his loss, despite having several insurance policies. It states that where the assured is over insured by different policy, each insured is to contribute ratably to the loss in proportion to the amount for which he is liable under his contract. If any insurer has already paid the loss to the assured irrespective of his share, the said insurer is entitled to receive the contribution from other co-insurers or joint insurers.

Other issues

Reinsurance

A reinsurance transaction can be defined as an agreement between a ‘ceding company’ and a reinsurer, where by the former agrees to ‘ cede’ and the latter agrees to accept a certain specified share of risk or liability in a return premium upon terms as set out in the agreement. Reinsurance said to be ceded when the part of the risks under taken are passed on to other insurance company for effecting reinsurance by the reinsurer, reinsurance premium is the consideration from ceding company. Reinsurance commission will be payable to the ceding company. Contribution towards its share of loss of arises, in payments if claims arise out of reinsurance policies. The effect of ceding will be reinsurance premium will be payable to the reinsurer company. The company receives commission the premium ceded. In the event of a claim, the ceding company will get apart of the claim from the reinsurance company.

Double insurance

Double or multiple insurance is insurance of the same risk with more than one insurer. This happen when the insured insurers the same risk with two or more independent insurers, and the total sum insured exceeds the value of the subject matter, the insured is said to be over insured by double insurance. Both double insurance and over insurance are perfectly lawful, unless the policy otherwise provides. For example, a man may insure with as many insurers as he pleases and up to the full value of his interest with each one of them. If a loss occurs, he may claim payment from the insurers in such order as he thinks fit. But in any event, he shall not be entitled to recover more than his loss, because a contract of insurance is a contract of indemnity only.

Standard clauses in insurance policies

18

Life insurance policy

The life insurance of a person is a contract by which the insurers in consideration at a certain premium, either in a gross sum or periodical payments, undertakes to pay the person for whose benefit the insurance is made, a stipulated sum, or annuity equivalent, upon the death of the person whose life is insured.The common of the insurance policy contains the following information:

a. The name of the plan governing the policy;

b. Whether it is participating in profits or not;

c. The basis of participation in profits such as case bonus , deferred bonus simple or compound reversionary bonus;

d. The benefits payable and the contingencies upon which they are payable and the other terms and condition of the insurance contract;

e. The details of the riders attached to the main policy.

f. The date of commencement of insurance and the date of maturity or dates on which the benefits are payable;

g. The premia payable, periodicity of payment, the date of the last installment of premium will be due, the implication of discontinue the payment installment a premium and also the provisions of the guaranteed surrender value;

h. The age at entry and whether the same has be admitted;

i. Contingencies excluded from the scope of the cover, both in respect of the main policy and the riders;

j. Any special clauses or condition such as first pregnancy clause, suicide clause etc.;

k. The address of the insurer to which all communication in respect of the policy shall be sent.

19

General insurance policy

GENERAL INSURANCE

With the awareness in the general insurance, the insurance business has developed by leaps and bounce after independence. The growth of the general insurance is also directly proportional to the economic growth of the country. As a result, after independence a no. of companies have come into the business of general insurance with an objective to earn profits. The mushrooming growth of the insurance companies has made the regulation of the general insurance difficult. The important elements in general insurance contracts are as follows:

20

All the general insurance contracts are of short-term contract the expired are contract can be revived b renewal and renewal of contract amount to a fresh contract. The general insurance contact differs from life insurance contract in the time period, and in payment mode.

Presence of insurable interest is essential in the general insurance contract. It is a pecuniary interest in the subject matter of insurance and derived due to the legal relationship with it. Insurable interest should be present at the time of happening of interest.

Principle of indemnity is applicable in general insurance contracts and amount payable as compensation depends upon the various factors like availability of assets, importance of assets, proximate cause, and intention of insured.

The insurance act, 1938 is applicable to the contract of general insurance business, particularly for registration and licensing of the company, investment of funds, declaration and warranties of a policy investigation, etc.

The general insurance business act, 1972 has incorporated, the general insurance corporation of India and to undertake the business with its four subsidiaries.

The policy document that is issued generally contain the following information and procedure:

A general insurance policy shall clearly state :

a. The name and address of the insured and of any bank or any other person having financial interest in the subject matter of insurance;

b. Full description of the property or interest insured;

c. The location or locations of the property or interest insured with respective insured values appropriate;

d. Period of insurance;

e. Sums insured;

21

f. Perils covered;

g. Excluded perils;

h. Any franchise or deductible applicable;

i. Policy terms, condition and warranties;

j. Action to be taken by the insured upon occurrence of a contingency likely to give rise to a claim under the policy;

k. Any special condition attached to the policy;

l. Provision for cancellation of the policy and the bases for a refund of the premium;

m. The address of the insurer to which all communication in respect of the insurance contract should be sent;

n. The existence of an Ombudsman and other forum for resolution of dispute;

o. The obligations of insured in relation to the subject matter of insurance upon occurrence of an event giving rise to a claim and the right of the premium;

Fire insurance

Fire insurance contracts are the contracts covering the risk of fire. They insure the risk of loss caused either by fire or incidental to fire. Thus fire insurance policies cover the insurance business in which the risk to the asset is from fire or incidental to fire.

Essentials of fire insurance contract

The fire insurance contract, being a part of typical insurance contract, is a contract of uberrima fides. Fire insurance is covered by the provisions of insurance

22

Act, 1938. Fire insurance policy cover the risk from fire and incidental to fire. All the essential elements of the contract Act are applicable to a fire insurance contract. The fire insurance policies are of short duration.

Essential principles of fire insurance are- insurable interest and principle of indemnity. Ignition and combustion are important ingredients of fire, without which the fire policy is not operative. The fire policy also covers the damages due to explosion and implosion of boiler, damage to aircraft or property dropped from aircraft, damage from missile testing operation. The fire policy cover the property of a person both tangible movable and immovable.

Coverage of risk

The fire policy covers the following risk that is Incidental fire and directly attached to fire.

Damage caused due to explosion or implosion other than the destruction or damage caused to boilers, machinery or apparatus that are used in specialized industries

The damage to aircraft or to the property dropped from he air craft

The damage caused from missile testing operation

Damage of bush fire excluding the forest fire.

It will not cover the loss, destruction or damage caused by war and kindred perils.

Loss, destruction or damage caused to the insured property by pollution or contamination, nuclear perils, loss or destruction caused to the stocks that are placed in cold store units is not covered by the fire policy

The fire policy cover the property of a person such as buildings may be of residential or commercial nature, furniture or machinery or other property that are movable and tangible.

Warranties

23

The warranties and important conditions of the fire policy concerning to principle of good faith should be followed; the assured should informed the insurer of any alteration which affect the risk levels. Insurers can take custody of the property of insured or happening of event and sell or dispose of the property and apply rule of subrogation. The conditions and warranties can be implied or express.

Types of fire insurance policies

The following are some of the fire insurance policies:

Valued policies, Unvalued or open policies, Long term, mid term and short term policies, All risk policies and Limited risk policies.

Assignment of policy

Under the transfer of property act, 1882,a fire policy can be assigned either by endorsement on the policy itself or by a separate deed of assignment. This can be done unless the insurer has been given notice of assignment. In case of transfer of insured immovable property, the transferee may require to be paid to him any money, which the transferor actually receives under the policy in case of damage or loss of the property from fire.

Loss assessment

The policy document contains the procedure to be adopted for the loss assessment and claim settlements of fire insurance business on happening of the event of risk. The insurer is having the right to reject the claim if the claim is not filed within a period of limitation mentioned in the policy or otherwise in accordance with the custom

24

prevailing in the particular class of the business. The insurer is having the right to replace the property that is insured and has suffered the loss

25

INSURANCE ACT, 1938 TO ACT, 1999

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA, since its incorporations as a statutory

body in April 2000 has fastidiously stuck to its schedule of framing regulations and

registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies were the launch of

the IRDA’s online service for issue and renewal of licenses to agents.

26

The approval of institutions of imparting training to agents has also ensured that the

insurance companies would have trained workforce of insurance agents in place to

sell their products, which are expected to be introduced by early next year. Since

being set up as an independent statutory body the IRDA has put in a framewor4k of

globally compatible regulations.

DUTIES, POWERS AND FUNCTIONS OF IRDA

Sections 14 of IRDA Act, 1999 lays down the duties, powers and functions of

IRDA.

1) Subject to the provisions of this Act and any other law for the time being in

force, the Authority shall have the duty to regulate, promote and ensure orderly

growth of the insurance business and re-insurance business.

2) Without prejudice to the generality of the provisions contained in sub-section

(1), the powers and functions of the Authority shall include, -

27

(a) issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;

(b) Protection of the interests of the policy holders in matters concerning assigning

of policy, nomination by policy holders, insurable interest, settlement of insurance

claim, surrender value of policy and other terms and conditions of contracts of

insurance;

(c) Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organizations connected with the

insurance and re-insurance business;

(g) Levying fees and other charges for carrying out the purposes of this Act;

(h) Calling for information from, undertaking inspection of conducting enquires and

investigations including audit of the insurers, intermediaries, insurance

intermediaries and other organizations connected with the insurance business;

(i) Control and regulation of the rates, advantages, terms and conditions that may

offered by insurers in respect of general insurance business not so controlled and

28

regulated by the Tariff Advisory Committee under section 64U of the Insurance Act,

1938.

(j) Specifying the form and manner in which books of account shall be maintained

and statement of accounts shall be rendered by insurers and other insurance

intermediaries;

(k) Regulating investment of funds by insurance companies;

(l) Regulating maintenance of margin of solvency;

(m) Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

(n) Supervising the functioning of the Tariff Advisory Committee;

(o) Specifying the percentage of premium income of the insurer to finance schemes

for promoting the regulating professional organizations referred to in clause (f);

(p) Specifying the percentage of life insurance business and general insurance

business to be undertaken by the insurer in the rural or social sector; and

(q) Exercising such other powers as may be prescribed.

The Law Commission has favored a review and revision of the Insurance Act, 1938

in such a manner that “it should not only promote insurance but also protect the

29

interests of policyholders and strengthen the Insurance Regulatory Development

Authority (IRDA) to ensure financial stability in this sector.

IRDA has to play a vital role for the regulation and development of insurance

business. The report recalled that following a raft of discussion held with the IRDA,

the Law Commission prepared an exhaustive Consultation paper in June 2003,

identifying thirteen tentative grounds of revision of the Insurance Act, 1938 and the

IRDA Act, 1999 ranging from merger of relevant provisions of IRDA Act with the

Insurance Act 1938 to harmonizing of the Act with rules and regulations.

On repudiation of life insurance policy under extant Sec 45 Insurance Act 1938, the

Commission has re commended taking into account the suggestion of the Life

Insurance Corporation that after the expiry of five years, no policy of life insurance

can be repudiated on any ground whatsoever. However, an insurer can repudiate a

policy before the expiry of five years on the ground that the insured has made a

misstatement of or suppressed a material fact.

While Section 38 of the IA provides for assignment and transfer of life insurance

policies, there are certain anomalies in the working of sub-sections.

Hence, the Commission has recommended that a clear distinction be made between

absolute assignment and conditional assignment. As Section 39 of the IA provides

that the policyholder might nominate one or more persons to whom the money

secured by the policy should be paid in the event of the death of the policyholder,

30

the Commission has favoured amending this section to make a distinction between a

“beneficial” nominee and a “collector” nominee.

31

Role of agents in insurance industry

According to section 182 of Indian contract act, an ‘Agent’- an agent is a person employed to do any act for another or to represent another in dealing with a third party principal- the person who is represented is called the principal. In the case of insurance, principal is insurance company.

In the insurance industry, the term ‘agent’ is ordinarily applied to a person engaged by the insurer to produce new business. The insurance Act defines an insurance agent as one who is licensed under section-42 of that Act and it is paid by way of commission or otherwise, in the consideration of his soliciting or procuring insurance business relating to the continuance, renewal or revival of policies of insurance. He is, for all purposes, an authorized salesman for insurance and needs a license.

Code of conduct for agent according to IRDA

32

The code says interalia that the agent shall:

Identify him self and the insurance company of which he is an agent

Disclose the license to the prospect on demand

Explain all available option to the prospect

Recommend a suitable plan taking into account the needs of the prospect

Disclose the scale of commission, if asked for by the prospect

Impress upon the prospect the need to disclose all information

Make all enquiries about the prospect

Inform the insurer about any material, facts including habits, that could adversely affect the underwriting decision

Convey to the prospect about the acceptance or rejection of the proposal

Advise policyholders to effect nomination

Not to include prospects submit wrong information

Not demand or receive from beneficiary, share of proceeds under an insurance contract

Make every attempt to ensure remittance of premiums by the policyholder with in the stipulated time, by giving notice orally

Not cause the termination of and existing policy with a view to effect a new proposal.

Who can become agent?

33

Individual

Collectives like companies, firm, banks, co-operative societies, etc. who can nominate one or more persons as “corporate insurance executives” (CIE).

CIEs will be required to obtain license after undergoing IRDA specified training.

Corporate agents will also have to nominate one or more of their directors, partners, employees with requisite qualification as “ specified persons” who will be responsible to solicit insurance business for corporate agents who will be required to obtain a certification.

Certification fee is Rs 500 and is valid for 3 years.

Procedure for becoming an agent

IRDA will issue a license to an agent under section 42 of the insurance act 1938 which would be valid for 3 years.

Only IRDA license holder agents are legally allowed to sell insurances in the market.

License may be renewed after 3 years after undergoing IRDA specified training for 25 hours for life/ non-life and 50 hours for composite.

License can be cancelled at any time if the agent acquires disqualification.

Prerequisites for obtaining a license

At least 18 years of age

34

Has passed standard 12 th or equivalent if he is to be appointed in a place with a population of 5000 or more, otherwise 10 th standard.

Should have undergone at least 100 hours by an IRDA authorized institute.

Should have passed pre-recruited examination conducted by III Or any body recognized by IRDA.

Disqualification for obtaining a license

Guilty of criminal breach of trust, cheating, forgery attempt to commit such a crime. Mentally unsound. The license once issued can be cancelled whenever the person acquires a

disqualification.

Termination of Agency

An agency will be terminated if:

Cancellation or non-renewal of licenses.

Agent acquiring any legal disqualification

For non-performance of minimum business.

Agency as a profession

Agent is the master of time – full time / part time agency Role of life insurance agent as

35

o Agent of insurero Agent of prospect

A good agent is a good financial planner.

Methods of remunerating agents

Commission rate:Commission on the first year’s 35%Premium Commission on the second and third 7.5%Year’s premiumCommission on the subsequent year’s 5%Premium

Following exception may be allowed

@ 40% of the first year’s premium in the first ten years,

@ 6% of renewal premium beyond third years,

36

37

COMPANY PROFILE OF MAX NEWYORK LIFE INSURANCE:

Max New York Life Insurance Company(MNYL)

COMPANY PROFILE

Max New York Life Insurance

“Max New York Life wants people to view insurance as a financial protection

and wealth creation instrument and not just a tax-saving tool.”

MAX is a multi business corporate, driven by the spirit of enterprise and focused

on people and service oriented businesses. 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. it has

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

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

38

Max India is a key player in Life Insurance, Healthcare, clinical Research and

Specialty Packaging products in India. Whereas it’s American counterpart, New

York Life Insurance Company, a fortune 100 company, is the largest mutual life

insurance company in America and one of the largest life insurers in the world.

New York Life is a leader in insurance business and has over $178 billion in

assets under management and over $25 billion in annual revenues. MNYL,

incorporated in 2000, is one of India’s leading private life insurance companies.

The company offers both individual and group life insurance solutions. It has

established a wide distribution network across India. Through its wide network

of highly competent life insurance agent advisors and flexible product solutions,

MNYL is creating a partnership for life with its customers in India to help them

meet their life stage needs.

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

39

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.

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.

40

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.

VISION

To become 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 advisors

JOINT VENTURE PARTNER

Max New York Insurance Company is a joint venture between New York Life

International Inc. a Fortune 100 company and America’s largest life insurance

41

provider and Max India Limited one of the leading multi-business corporation

in India. ax New York Life Insurance Co. Ltd is a Rs.250 crore joint venture

with a paid up capital of Rs.807 crore. Max India has raised its economic interest

in life insurance joint venture with a foreign partner, Max New York Life

(MNYL) from 50% to 74%.

It is widely known that as per the agreement signed between the two leading

giants in 2003, the New York Life was contributing 26% in the 26:74 joint

venture for every equity investment made. Max was contributing 50% and

remaining 24% was funded through an advance paid by New York Life to it.

New York Life had an option to raise its shareholding in the JV close to 50% at

the par value, in case of a relaxation up to 26% in the FDI sectoral cap in the

insurance segment. These terms were approved by the Insurance Regulatory and

Development Authority (IRDA) and were highlighted in the successive annual

reports of Max India.

VALUES

1) 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.

42

2) 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.

3) 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.

4) 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.

43

5) Culture:

Our "in house culture recipe" has some of the finest ingredients going into its

making. Some of the more prominent aspects of our culture are stated belo

Customer comes first

Do it right the first time

Bias for result oriented action

Financial strength and discipline

Clarity of purpose

International quality standards

Inclusive Meritocracy

Learning opportunities

Fun at work

Commitment to published value system

44

Different Channels of Distribution

I. Agency Channel:

In Max New York Life Insurance, business is done mainly through Agent

Advisor. In India it has more than 55000 agents.

Two Programs is run under Agency Channel:

AAP:- Agency Association Program

CEIP

II. Bancassurance:

Bancassurance is an innovative distribution channel involving banks to sell

insurance products of Insurance Companies. Max New York Life Insurance

has tied up with Yes Bank.

III. Direct Sales Team (DST):

Max New York Life Insurance makes a data base of potential customers;

contact them on the telephone to market different policy of the company.

45

IV. Alternate Channels:

Business is done through associate partners, internet etc.

ACHEIVEMENTS

Max New York Life is the first life insurance company in India to be awarded the

IS0 9001:2000 certifications.

Max New York Life was among the top 25 companies to work with in India,

according to 2003 Business World magazine, "Great Workplaces in India", Max

New York Life was ranked at the 20th position. This survey is the local version of

the "Great Places to Work" survey carried out every year in 22 countries.

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.

46

FOR FUTURE EXPANSION

Recruitment Vertical

Health and retirement Plan.

Highly Network Individual.

CEIP

Max BUPA: - Max India and BUPA International.

General Insurance

PRODUCTS

Max New York Life brings to you specially customized products and

services that are flexible and can e customized to suit your needs. It now has 30

Life Insurance products and 8 riders that can be customized to over 800

combinations enabling customers to choose the policy to plan that best fit their

needs. These include:

47

INDIVIDUAL INSURANCE

Protection Plans:

Whole life.

Level Term

Five Year Term R&C.

Life Partner Plus.

Savings:

Life Gain Endowment.

Life Pay Money Back.

Life Gain Plus 20.

Life Gain Plus 25.

20-Year Endowment.

Unit Linked:

Life Maker Gold.

Life Maker Premium.

Life Maker Platinum.

Life Maker Pension.

Life Invest.

48

Group Insurance:

Group Term Life.

Group Gratuity.

Employee Deposit Linked Insurance.

Credit Shield.

Unit Linked Group Gratuity.

Unit Linked Group Superannuation

Rural Insurance:

Max Suraksha.

Easy Terms.

Max Mangal Endowment.

Max Vriksha Money Back.

Max Assure:

Max Assure Bonus Builder.

Max Assure Business Builder.

Max Assure Money Back.

Max Assure Future Builder.

Max Assure Secure Returns Builder.

NAV:

Life Maker Investment Plan.

Life Maker Pension Plan.

49

Life Maker Premium.

Smart Steps.

Group Gratuity.

Group Superannuating.

Max Amsure Secure Returns Builder.

50

51

ORGANIZATION STRUCTURE

(KANPUR REGION)

Various Products Plans of Max New York Insurance

52

Whatever we need, Max New York Life has a plan for us. Because they understand

everyone have different needs. Their plans are designed towards meeting our long-

term financial goals & aspirations & helping us fulfill our dreams & commitments

LIFE PLAN

53

CHILD PLAN

Plans perfect for the ever growing needs of children. After all, you would want to

give the best to your child

[SMART Steps]

[SMART Steps Plus]

[SMART Steps Single Premium]

54

GROWTH PLAN

Plans designed to offer insurance cover along with superior returns in the long

term. Just what you need for a secure future.

[SMART Assure]

55

HEALTH PLAN

To provide a comprehensive cover for your health, from hospitalization to

recuperation. As they say, health is wealth.

[Lifeline Wellness Plus]

[Lifeline Medicash Plus]

[Lifeline Safety Net]

56

PENSION PLAN

To ensure that your retirement years are the most precious of your life.

[SMART Invest]

57

58

Insurance companies

IRDA has so far granted registration to 12 private life insurance companies and

9 general insurance companies. If the existing public sector companies are

included, there are currently 13 insurance companies in the life side and 13

companies operating in general insurance business. General Insurance

Corporation has been approved as the “Indian Reinsurer” for underwriting only

reinsurance business.

Particulars of the life insurance companies and general insurance companies

including their web addresses are given below:

LIFE INSURERS

Company Websites

Public Sector

Life Insurance Corporation of India: www.licindia.com

Private Sector

59

http://www.licindia.com/

Allian Bajaj life insurance Company Ltd www.allianzbajaj.co.in

BirlaSunLifeInsurance Company Limited www.birlasunlife.com

HDFC StandardLifeInsuranceCo.Ltd. www.hdfcinsurance.com

ICICI PrudentialLifeInsuranceCo.Ltd www.iciciprulife.com

ING Vysya Life Insurance Co. Ltd www.ingvysayalife.com

MaxNewYorkLifeInsuranceCo.Ltd www.maxnewyorklife.com

MetLife Insurance Company Limited www.metlife.com

OmKotakMahindraLifeInsuranceco.Ltd www.omkotakmahnidra.com

SBI LifeInsuranceCompanyLimited www.sbilife.co.in

TATAAIGLifeInsuranceCompanyLimited www.tataaig.com

AMPSanmarAssuranceCompanyLimited www.ampsanmar.com

DaburCGULifeInsuranceCo.Pvt.Limited www.avivaindia.com

GENERAL INSURERS

Company Websites

Public Sector

NationalInsuranceCompanyLimited www.nationalinsuranceindia.com

New India Assurance Company Limited www.niacl.com

OrientalInsuranceCompanyLimited www.orientalinsurance.nic.in

United India Insurance Company Limited www.uiic.co.in

60

http://www.uiic.co.in/

http://www.orientalinsurance.nic.in/

http://www.niacl.com/

http://www.nationalinsuranceindia.com/

http://www.avivaindia.com/

http://www.ampsanmar.com/

http://www.tataaig.com/

http://www.omkotakmahnidra.com/

http://www.maxnewyorklife.com/

http://www.ingvysayalife.com/

http://www.iciciprulife.com/

http://www.hdfcinsurance.com/

http://www.birlasunlife.com/

Private Sector

BajajAllianzGeneralInsuranceCo.Limited www.bajajallianz.co.in

ICICILombardGeneralInsuranceCo.Ltd. www.icicilombard.com

IFFCO-Tokyo General Insurance Co. Ltd. www.itgi.co.in

Reliance General Insurance Co. Limited www.ril.com

RoyalSundaramAllianceInsuranceCo.Ltd. www.royalsun.com

TATA AIG General Insurance Co. Limited www.tata-aig.com

CholamandalamGeneralInsuranceCo.Ltd www.cholainsurance.com

ExportCreditGuaranteeCorporation www.ecgcindia.com

REINSURE

Company Websites

General Insurance Corporation of India www.gicindia.com

61

http://www.gicindia.com/

http://www.ecgcindia.com/

http://www.cholainsurance.com/

http://www.tata-aig.com/

http://www.royalsun.com/

http://www.ril.com/

http://www.itgi.co.in/

http://www.icicilombard.com/

http://www.bajajallianz.co.in/

62

INTRODUCTION TO FORM FILLING

Form filling is a process of filling various policy forms according to the

various plans.

For example: ULIP and traditional plans

It is the first step of every case to be insured. Form filling requires a lot of information regarding the proposer and life to be insured.

Thus it holds a lot of importance while doing a case in the max New York life insurance.

Now it becomes rather more important that the agent advisors are fully trained so that they can fill the forms according to the requirements of the company. Until and unless the agents are properly trained they will not be able to perform their work accordingly.

So to insure that the form filling is proper agents require the training in form filing.

63

INTRODUCTION TO PORTAL

Portal is a complete package carrying the information regarding the various

Policies done by the Agent Advisors of max New York life insurance co. ltd

It holds the information regarding the compensation, policy servicing

Rewards and recognition and various other information.

The updated information about NAV is available on it.

An agent can access to it any where by simply login to the website of MNYL.

64

COMPENSATION

It provides information regarding the commissions on various policies

done by the agents.

An agent can access to its commission for a particular policy by giving the

Policy number.

The compensation head under the portal consists all the information about

the benefits given to the agents by the company.

POLICY SERVICING

Under policy servicing we can find the following things: -

Policy status

Proposal status

Due date calendar

Payment history

POS request

65

e- DOCKET

POLICY BRIEFCASE-

It constitutes the information regarding the various policies.

AGENT BRIEFCASE-

It constitutes the various information about the agents.

REWARDS AND RECOGNITION

These contain the information about the various rewards schemes given by

the company to the employees and advisors on successfully achieving the

given target to them.

ILLUSTRATIONS

It contains the description on various plans as the products of the

company.

For example- life plans, health plans etc.

It also includes various other information on riders given on various

policies, sum assured etc.

66

INTRODUCTION TO AML

AML (Anti Money Laundering):- money laundering is moving illegally acquired cash through the financial systems so that it appears to be legally acquired. It is a process by which criminals attempt to hide the true origin and ownership of the proceeds of crime. If undertaken successfully it provides an apparent legitimate cover for the criminals’ source of income, the objective being to avoid prosecution, conviction and subsequent confiscation of funds.

The prevention of money laundering Act 2002 (the Act) has come into force with effect from 1st July 2005 with the introduction of the anti money laundering rules (“Rules”). IRDA has issued guidelines (“Guidelines”) in this regard on 31st March 2006 and has directed all life insurance companies to establish an effective AML regime with effect from 1st August 2006 . The compliance on KYC norms in respect of existing customers would be carried out by the company with effect from 1st January 2006 as directed by the IRDA.

67

Documents required

AML case: Request letter/ policy amendment request form duly signed by the policyholder along with self attested residence proof for the new address if policy come under AML guideline (if the total ATP of all the polices of the policyholder is >Rs.10000.00).

Non AML: Request letter duly signed by customer or telecalling form duly signed by telecaller with all mandatory fields filled for non AML policy (if the total ATP of all the policy is <=Rs.10, 000.00).

Term insurance contracts are exempted for the purview of anti money Laundering requirements.

Details to be checked in my flow

Policy number Date and time stamp of receiving the request (to be stamped by the GO in case of

request received at GO or by POS in case the request in received at HO). New address with postal code, new telephone number and preferred mailing

address. Signature of policyholder should be matching with our records. AML proof required in case of complete change in residential address (address

proof as per the applicability proof list below) AML should be self attested or should be OSV (original seen and verified) by

SDE. AML proof not required if request is for correction of address/ charge of work

address. AML proof not required if customer is submitting request for correction of

existing address *nn** refer to below scenarios

68

Details to be checked in ingeniun

Check whether the policy is coming under AML –if gross annual premium of all policies (except NTU (<90 days)/rejected) of a particular policyholder is more than 10,000.00 AML is applicable else not.

If request is for updation of address of policyholder then the details should be updated for L2BI as well (for form 2 policies) however if the request is for work address updation then the same should be updated for policyholder ONLY.

** Note form 2: wherein the policyholder is different from the L2BI Policy status should not be NTU (<90days)/ rejected/ surrender

(manual)/lapsed>3yrs

Outgoing correspondence

A letter of confirmation goes out from policy owner services to the client on the old (SL name: CU01Z) as well as the new address (SL name: CU01X)

In case request is declined for any reason, decline letter is sent at both old and new address with a copy to the agent.

***Address proof vs. actual address (under AML guidelines)***

The purpose of proof of address (under AML guidelines) is to establish that the customer resides at the address shown on the proposal form. To that effect if the address given in the proposal form is more elaborate/ descriptive then the address proof it self it should be acceptable, and it should not be marked as a discrepancy.

please note that the pin code is a mandatory field for the address given in the proposal form and should have a landmark mentioned to facilitate faster and effective delivery .

69

Attached are some examples to clarify the above point

NOAddress as written on proposal form

Address proof (as per AML guidelines)

Acceptable/ not acceptable

1 4-F-56,near power house road ,Jodhpur-610234

4-F-56,near power house road ,sec7 Jodhpur-610234

Acceptable

2 265-A,sec 14,Hiran,Magri,Udaipur-110058

265-A,sec 14,Hiran,Magri,Udaipur-110058

Acceptable

3 (H # 91,Ward 10, Azad nagar, (Basti), Tapa, Barnala-210234

(H # 91,Ward 10, Azad nagar,(Basti), Tapa, Barnala-210234

Acceptable

70

71

RESEARCH METHODOLOGY

1. OBJECTIVE OF THE RESEARCH

To give the advisors form filling and portal training. To identify the problems faced by the advisors in form filling and portal access. To determine the motivational factor that derived them to perform well. To design and implement the most effective training strategies.

2. RESEARCH METHODOLOGY

It’s a systematic design to collect, analyze and interpret the collected data and to attain the objective of the research.

STEPS USED IN RESEARCH METHODOLOGY:

Defining the research objective Developing the research design Collection of information Analyzing and interpreting the data

3. DEFINING THE RESEARCH OBJECTIVE

72

A research objective is that for which the research work has been done. The objective of the research was “ to identify the problems faced by the agent advisors in form filling and portal access and to train them for the same “. The research needs to know enough about the agent’s problems and expectation so that they are well trained.

DEVELOPING THE RESEARCH PLAN:

Research approach Research instrument Research design

A)Research approach

A survey was conducted of the agents for the purpose of the research. The time provided for it was eight weeks.

B) research instrument

The survey was conducted with the help of questionnaires. The questions included were short, close and open ended. Questionnaires were filled based on the telephonic interviews of the agents,

Sample design

Sample size: the sample size provided for the survey was 190 agents of past three years vintage and productivity data of the agents in MAX NEW YORK LIFE, K1-office, kanpur.

1. COLLECTION OF DATA

73

All the necessary steps were taken in to account against various errors related to data collection. Both primary and secondary method of data collection was used.

Primary data: the primary data was collected with the help of telephonic survey and interview of the advisors/ agents. Questionnaires were used as a tool for data collection.

Secondary data: the data was taken from the Internet and brochures of the company for the research purpose.

2. ANALYSING AND ININTERPRETING DATA

The data collected from 180 advisors were carefully analyzed and interpreted to fulfill the real purpose of the research. For interpretation graphical tools like bar charts, pie charts were used.

“RESEARCH IS AN ART OF SCIENTIFIC INVESTIGATION OR INQUIRY, ESPECIALLY THROUGH SEARCH FOR NEW FACTS IN ANY BRANCH OF KNOWLEDGE.

Research design is a conceptual structure with research conducted. There is no unique method, which can entirely eliminate the elements of undertaking. But research methodology more than any other procedure can minimize the degree of uncertainty. Thus it reduces the profitability of making a wrong choice amongst alternative causes of action. Research design implies a framework or blue print for conducting the Human Resource research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve human resource research problems.

The research design adopted in fulfilling the given research objectives are given as under:

a) The nature of the study was descriptive

b) Data collection sheets were prepared

74

c) Data sorting was done.

d) Questionnaire was constructed.

e) Script was designed.

f) Sample size was determined.

g) Study was conducted through the collection of primary as well as secondary data.

h) Analysis of collected data was made.

i) Conclusion of analyzed data was done.

j) Meetings were conducted.

k) Action plans and problem solutions was designed and implemented.

Sample size:

Out of total sample of 190,150 were received. Thus, respondents are considered in the survey.

Data collection:

The data collection was of two types: -

Primary data:

It is first hand data, the respondents were contacted personally and the research instrument used for data gathering was the questionnaire.

Secondary data:

Secondary data was collected from journals and web sites.

SOURCES OF DATA/ INSTRUMENTS USED

75

The two sources used for data collection

1. Through personal interaction with respondents

2. Through telephonic interaction.

76

SURVEY REPORT

DATA ANALYSIS AND INTERPRETATION

Tools and techniques of analysis

The data was analyzed with the help of various table and charts. The charts used for analysis are:

1.Bar chart2.Table

The charts and table are used to represent the primary data:

FORM FILLINGTOTAL 30

CATEGORY PRE-TRAINING POST-TRAINING

Excellent 2 8

Very good 5 7

Good 9 9

Moderate 12 6

77

Poor 2 0

Explanation

Our survey was conducted on 150 advisors out of which only 30 advisors have responded in the form filling session. We tried to find out the reason that restricted them to perform their job well in the organization. The advisors have faced problems in form filling. We have trained the advisors we found that

BEFORE TRAINING:

2 ADVISORS: found excellent i.e.7 % of advisors.

5 ADVISORS: very good i.e. 17 % of advisors.

9 ADVISORS: good i.e.30% of advisors.

12 ADVISORS: moderate i.e. 40% of advisors.

2 ADVISORS: poor i.e.6% of advisors.

78

AFTER TRAINING:


7 ADVISORS: very good i.e. 23.3 % of advisors.

9 ADVISORS: good i.e.30 % of advisors.

6 ADVISORS: moderate i.e. 20 % of advisors.

0 ADVISORS: poor i.e.0 % of advisors.

PORTAL

TOTAL 30


Excellent 2 10

Very good 3 9

Good 5 6

Moderate 15 4

Poor 5 0

79

Explanation

Our survey was conducted on 150 advisors out of which only 30 advisors have responded in the PORTAL session. We tried to find out the reason that restricted them to perform their job well in the organization. The advisors have faced problems in portal. We have trained the advisors we found that

BEFORE TRAINING:

2 ADVISORS: found excellent i.e.6.7 % of advisors.


5 ADVISORS: good i.e.16.7% of advisors.


5 ADVISORS: poor i.e.16.6% of advisors.

80

AFTER TRAINING:

10 ADVISORS: found excellent i.e. 33.4 % of advisors.



5 ADVISORS: moderate i.e. 16.6 % of advisors.


ILLUSTRATION

TOTAL 30


Excellent 3 6

Very good 4 10

Good 6 9

Moderate 12 5

Poor 5 0

81

Explanation

Our survey was conducted on 150 advisors out of which only 30 advisors have responded in the ILLUSTRATION session. We tried to find out the reason that restricted them to perform their job well in the organization. The advisors have faced problems in illustration. We have trained the advisors we found that

BEFORE TRAINING:



6 ADVISORS: good i.e.20% of advisors.


5 ADVISORS: poor i.e.16.7% of advisors.

82

AFTER TRAINING:

6 ADVISORS: found excellent i.e. 20 % of advisors.





AML

TOTAL 30


Excellent 3 9

Very good 5 7

Good 7 10

Moderate 9 4

Poor 6 0

83

Explanation

Our survey was conducted on 150 advisors out of which only 30 advisors have responded in the AML session. We tried to find out the reason that restricted them to perform their job well in the organization. The advisors have faced problems in AML. We have trained the advisors we found that

BEFORE TRAINING:



7 ADVISORS: good i.e.23.3 % of advisors.



84

AFTER TRAINING:

9 ADVISORS: found excellent i.e. 30 % of advisors.


10 ADVISORS: good i.e.33.4 % of advisors.



85

ACTION PLANS

86

Following were the action plans taken on the basis of the responses received from the survey:

Employee-employer (middle management and top management) meeting was conducted to discuss on the issues regarding agent’s dissatisfaction and grievances with the sales managers and other sub-ordinates. Besides this, the expectation of the agents were also discussed and the solution designed were as follows:

Meetings of agent advisors with the top management were organized where in agent advisor were invited and encouraged to share their problems freely, discuss their reason for dissatisfaction and present their expectations and needs in front of the top management.

As per the Pareto analysis, it was seen that some of the agent advisors were performing extremely good. Therefore, considering such efficient agents training program M-Power was arranged and organized in order enhance and increase the efficiency of agents who were giving maximum business of the company.

Considering agent advisor’s needs and expectation, company initiated /launched a contest “WHEEL OF FORTUNE” which met the needs and expectation of those who expected some monetary benefit schemes and training sessions.

87

CONCLUSION

88

The success of every organization depends on its management and the management includes all the personnel- employee and employer, working at different levels.

Therefore, to maintain the prosperity of any firm it is very essential to retain its talent for as long as the business concern runs and avoid the phase of form filling, portal & AML.

Form filling, portal & AML are that depressing phase of any firm, which adversely affects its growth and success. Thus, it is very important for every firm to provide job satisfaction to their workers in order to avoid it. But even if it exists, the immediate action should be determining its causes and retaining talent of the company. Therefore, this project was an attempt in this regard.

As a result of the study various causes for form filling, portal & AML of agent advisors, their dissatisfaction, grievances and expectation were known with the help of survey, the survey gave the clear picture of potential & non- potential & interested and non- interested agent advisors, which help the organization in taking corrective action. As a result of which the non- interested & non- potential advisor were terminated and potential advisor were emphasized so that they can enhance their skills and contribute more to the firms productivity.

89

SUGGESTIONS AND RECOMMENDATIONS

90

1: As per the pareto analysis, out of total production, 20% of agents give 80% of the business. So, if this 20% of agents become more efficient, they may increase the productivity. Thus, the management should emphasize the skills of such agents.

2: Among the remaining productive agents, top 20% (on the basis of performance) should be targeted with the objective of enhancing their skill and increasing their efficiency by providing them necessary training. So that they contribute more in the productivity of the organization.

3: As the analysis, the agents with zero policies from past two years should be terminated.

4: The agents, whose productivity graph is decreasing as compared to past year, should be taken into consideration regarding their problems and expectations with the company.

5: Misleading recruitment should be taken into consideration by the top management. Necessary steps should be taken against such kind of recruitments.

LIMITATIONS FACED IN CONDUCTING THE RESEARCH

91

1: Some of the respondents were not genuinely helpful, co-operative & responsive. Thus, it was difficult to get the complete information from some advisors, because of their unwillingness.

2: For some advisors questionnaire was a source of showing their frustration.

3: Some advisors were hesitant to fully disclose the information with the research.

4: during the working hours, the offices and staff were heavily busy with their work hence the effective time available with them was often reduced.

92

BIBLIOGRAPHY

Research Methodology (By – Kothari C. R.)

93

Marketing Management (By – Philip Kotler)

Management of Human Resources (By – Rao V.S.P.)

Quantitative Techniques (By – Gupta S. P.)

Company Profile

Internet Surfing

Magazines

WEBSITES REFFRRED

www.maxnewyorklife.com

www.irdaindia.org

www.thehindubusinessline.com

www.wikepedia.org

www.google.com

www.irda.gov.in

94

http://www.irda.gov.in/

http://www.google.com/

http://www.wikepedia.org/

http://www.thehindubusinessline.com/

http://www.irdaindia.org/

http://www.maxnewyorklife.com/

SCRIPT

Hello, sir/mam, am I talking to Mr./ Mrs. _________. I am Mr./ Miss. __________ speaking from Max New York Life Insurance, Kanpur.

Sir/ mam, May I take your five minutes?

If,

No (or busy): so, when should I call you?

(Wait for response…)

Yes: sir/ mam you were the successful agent of your glorious past, you did wonder with us. Then what has suddenly happened that you have lost your interest working with us? For this purpose, we are working on a research project, so we want to have some information from you, so that we can mutually help each other. May I…..?

95

QUESTIONNAIRE FORM

Advisor’s Name Advisor’s ID S.M.

Ques-1 Do you have the knowledge of form filling process?

Very good Good Moderate Low

Ans-1

Ques-2 In which section of form most problem arises during Filling?

Personal details Coverage information Previous policy details Medical and life style details Declaration and authorization

Ans-2

96

Ques-3

Do you have the knowledge about Portal?

Very good Good Moderate Low

Ans-3

Ques-4

Which section you use most in your portal?

Compensation Policy servicing Tools Rewards and recognition Information center

Ans-4

Ques-5 Do you have the knowledge of Illustration in following?

Plans Riders Sum assured

Ans-5

Ques-6 Do you know the AML guidelines?

Yes No

Ans-6

Ques-7 Any suggestion

97

Ans-7

Ques-8 Preferable time for session

Ans-8

Ques-9 Voice response

Cold Warm Enthusiastic aggressive

Ans-9

98