Max Life Insurance

SUMEER TRAINING REPORT

ACKNOWLEDGEMENT

To accomplish a project it involves a lot of effort and contribution from a number of people. It is thus an opportunity for us to thanks those people who have helped us generously in the completion of this project.

Exchange of ideas generates a new object to work in a better way. Apart from the ability, labour and time devotion, guidance and cooperation are the two pillars for the success of the project, whenever a person is helped or cooperated by others his heart is bound to pay gratitude to them.

In the chain I am immensely thankful and convey my sincere gratitude to my project guide Mr. Dheeraj Tiwari, Max New York Life for his guidance, constant inspiration and keen interest shown on us during the project. I deliberate my profound sense of gratitude to him.

I am also highly indebted to my faculty guide Mrs. Urvi Jain for being the unfailing source of encouragement at pivotal juncture and fruitful guidance for the completions of this project.

CONTENTS

1. Executive summary

2. Industry profile

3. Company profile

4. Vision, Mission & Values at MNYL

5. Objective of study

6. Conceptual framework

7. History of insurance

8. Types of insurance policies

9. MNYL policies or products

10. About life insurance advisors

11. Channel development

11. Research Methodology & Analysis

12. Role & Learning at MNYL

13. Recommendations

14. Conclusion

15 Bibliography

16. Annexure

Chapter-1: Profile of the Firm/Company

Executive summaryA well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and the same time strengthen the risk taking ability.

Life insurance is also now being regarded as a versatile financial planning tool in India. India being a country having a huge population of around one billion people with only 33.2% of the population in India possessing life insurance. The country has a vast potential that has been left untapped till now.

Therefore what this has led to is the flooding of the life insurance market with a number of private players which in collaboration with recognized foreign companies promises to deliver the best of services at the lest price. All these companies are trying to grasp the maximum of market share in life insurance sector. For that they are recruiting world-class insurance advisors/agents who sell their product or policies. Who are these advisors/agents? Who can become advisors/agents? How channels are developed? How they are recruited in MNYL? , How much they can earn as an insurance advisors/agents, these are some questions we have tried to answer in our project report.

This report is trying to give detail about channel development i.e. recruitment and selection process of the life insurance advisors. Thus by going through the report one will get to know about life insurance and channel development i.e. recruitment & selection process of life insurance advisors/agents in Max New York Life Insurance company ltd.

INDUSTRY PROFILEIndustry ProfileThe Insurance landscape in India is undergoing major change. Closed to foreign competition since nationalization in 1956, the life insurance had been protected from competitive pressures. Now, with the re-opening of the sector, several new players have entered the scene.

The game is old but rules are new and still developing. Ensconced in a monopoly run from the nationalization days beginning in 1956, the insurance industry has indeed awakened: to a deregulated environment in which several private players have partnered with multinational insurance giants.

There are lots of life insurance companies in the industry but only few are getting good benefits and successfully trying to establish themselves. Life insurance industry is an upcoming industry and having a huge potential for making huge benefits. Some of the life insurance companies are:

LIFE INSURANCE CORPORATION OF INDIA (LIC)

MAX NEW YORK LIFE INSURANCE

ICICI PRUDENTIAL LIFE INSURANCE

TATA AIG LIFE INSURANCE

BIRLA SUN LIFE INSURANCE

HDFC LIFE INSURANCE

AVIVA LIFE INSURANCE

KOTAK LIFE INSURANCE

LIC is a government company so it is one of the biggest life insurance company but if we look at the private players then MAX NEW YORK LIFE IS No. 1 among all private life insurance companies. According to GENERAL ACCEPTED ACOUNTING PRINCIPLE (GAAP) Max New York Life is the only company, which is in the profit.

COMPANY PROFILECompanys Profile

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

In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital is Rs. 587 crore, which is more than the norm laid down by Insurance Regulatory Development Authority (IRDA).

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

Customers to Max New York Life offer a suite of flexible products. It now has22 life insurance products and8riders that can be customized to over 400 combinations enabling choose the policy that best fits their need.

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.

MNYL is among the top five most respected private life insurance companies in India according to a 2004 Business Worldsurvey.

MNYL has truly built an enviable sales force. With201 agents becoming members of the MDRT in 2005, Max New York Life has moved up in the Top 50 MDRT global list.ABOUT NEW YORK LIFE

New York Life Insurance Company, 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. Headquarter in New York City, New York Lifes 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 mutualfunds. 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.

ABOUT MAX INDIA LIMITED

Founded in 1985, Max India Limited is a Public Limited company listed in the NSE and BSE of India with over 37,000 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 International)

Max also maintains interests 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 that accounts for 28.7% of the total shareholding. The public and Institutional Investors hold the balance shareholding.

Till 1999, the companys main interests and partnerships were the following: Business PartnersBulk Active Pharmaceuticals DSM Gist Brocades

Electronic Component Distribution Motorola, USA

Electronic Component Distribution Avnet Inc., USA

Mobile Telephony Hutchison Telecom Ltd.

Hong Kong

V-SAT Communications Comsat Investment Inc.,

USA & Lockheed Martin,

USA

Plating Chemicals Atotech, Germany

Information Technology Mind Crossing, USAIn 2000, the Company reinvented and restructured itself to focus on the businesses of Life under the theme, LifeOur Focus.

Max New York Life Insurance, founded as a Joint Venture between Max India Limited and New York Life, a Fortune 100 company, is one of the leading private lifeinsurersinIndia.

Max Healthcare, a subsidiary of Max India Limited is Indias first provider of comprehensive, standardized, seamless, and integrated world-class healthcare services.

Neeman Medical International (NMI) is an International Clinical Research provider operating across three locations spanning North America, Asia and Latin America. Each location is backed by comprehensive infrastructure and highly skilled and experienced personnel.Board of Directors- Max India Limited

Dr Bhai Mohan Singh Lifetime Chairman Emeritus, Max India

Mr. Analjit Singh Chairman, Max India

Dr S S Baijal Former Chairman, ICI Ltd.

Mr. N C Singhal Former Vice Chairman & MD, SCICI

Mr. N Rangachary Former Chairman, IRDA

Mr. Nitin Sibal Vice President, Warburg Pincus India Pvt. Ltd.

Mr. Piyush Mankad Former Secy., Ministry of Finance, Govt. of India

Mr. Ashwani Windlass Former Managing Director, Hutchison Max

Mr. Bharat Sahgal Managing Director, Warburg Pincus India Pvt. Ltd.

Mr. B Anantharaman Jt. Managing Director, Max India

Vision, Mission&

Values

ofM NYLVision of MNYL

To become the most admired life insurance Company in India.

This we hope to achieve by:

Understanding the needs of customer and offering them superior products and services.

Leveraging technology to service customers quickly, efficiently and conveniently.

Providing an enabling environment to foster growth and learning for our employees.

And above all, building transparency in all our dealings.

We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.

MISSION OF MNYL

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

VALUES OF MNYL

This vision to become India's most admired life insurance companywill be realized through our unique set of values, which are as follows:

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

Caring

Max New York Life is redefining the life insurance paradigmby focusing oncustomers first. The service process is responsive, personalized, humane and empathetic. Every individual who represents the company is for us our brand champion.

Honesty

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

Excellence

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

Whole LifeParticipating Policy

Whole LifeParticipating Policy provides an insurance cover that is guaranteed for your entire life. This policy also builds cash value, which you can use during your lifetime to fund any unforeseen needs by taking a loan. In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Sum Assured plus accrued bonuses. On Maturity (attaining age 100): Sum Assured plus accrued bonuses. Bonus: From 3rd policy year, we will declare bonuses every year. Tax benefits: Your premiums are eligible for deduction u/s 80C up to Rs.100, 000/- every year.

Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10, 000/- every year.

Your claim amounts (from death, through surrendersor on maturity) are eligible for tax exemption u/s 10(10D).

Children's Endowment18 & 24 Policy

Child Endowment to Age 18 enables you to provide for higher education of your child. Child Endowment to Age 24 enables you to provide for the best possible wedding of your child and also builds cash value, which you can use during to fund any unforeseen needs by taking a loan. In addition this policy is also eligible for bonus. KEY BENEFITS

On death of life insured: Refund of premiums plus interest plus accrued bonus. On Maturity: Sum Assured plus accrued bonus. On Surrender of Policy: Surrender value. Bonus: From 3rd policy year, we will declare bonuses every year. Tax benefits: Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.

Your claim amounts (from death, on maturity or through surrenders) are eligible for tax exemption u/s 10(10D). Life Gain Endowment Policy

Life Gain Endowment Policy provides you with an insurance cover that is guaranteed during the tenure of the policy. This policy also builds cash value, which you can use during your lifetime to fund any unforeseen needs either by surrendering accumulated or taking a loan. In addition this policy is also eligible for bonuses.KEY BENEFITS

On death of life insured:Sum Assured plus accrued bonus. On maturity: Sum Assured plus Guaranteed Addition @ 10% of Sum Assured plus accrued bonus plus terminal bonus (if any). On Surrender of Policy: Surrender value. Bonus: From 3rd policy year, we will declare bonuses every year. Tax benefits: Your premiums are eligible for deduction u/s 80C up to Rs.100, 000/- every year. Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10, 000/- every year. Your claim amounts (from death, on maturity or through surrenders) are eligible for tax exemption u/s 10(10D).Easy Life Retirement Plan

Easy Life Retirement Plan(Participating) Policy helps you to save money for your retirement, and also provides you with an opportunity to take home a regular retirement income (i.e. pension) for your entire life from your chosen date of retirement. This income is a guaranteed amount, guaranteed when your annuity starts. In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Refund of accumulated premiums plus cash value of additional pure endowments purchased from bonuses. On the chosen retirement date: Sum Assured plus additional insurance coverage purchased in way of bonuses.

On Surrender: Surrender value (minimum guaranteed @ 55% of premiums paid).

Bonus: From 3rd policy year, we will declare bonuses every year.

Tax benefits: Your premiums are eligible for deduction u/s 80CCC (1) up to Rs.10, 000/- every year.

Your claim amounts (from death, on maturity or through surrenders) are eligible for tax exemption u/s 10(10D).

Unit linked

The journey of life is full of wonderful dreams. To make them come true, your need for protection, investment, and financial liquidity keeps changing at different stages of life. The birth of a child will require you to increase your insurance cover; a marriage in the family will require additional money. Similarly on a promotion you may want to increase your investments, to create a large kitty for

future expenses. Usually you would require multiple financial products to meet all your needs and would have to actively manage them. However with the Life Maker Unit Linked Investment Plan you can meet all your financial needs, without the tedium of managing multiple products.

Research MethodologyResearch is an art of scientific and systematic search of pertinent information on a specific topic. In fact research is an art of scientific investigation. The advance learners dictionary of current English lay down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and Mory define research as systematized effort to gain nee knowledge. Some people consider research as a movement, a movement from the known to unknown. It is actually a voyage of discovery. According to Clifford Woody Research comprise defining and redefining problem, formulating hypothesis or suggested solution; collecting; organizing and evaluating data; make deduction and reaching conclusion; and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis.

Research Design

Research type applied over here is Exploratory Research because the main purpose of such studies is that of formulating a problem for more precise investigation the working hypothesis from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights.

Data Collection Method

The task of data collection begins after a research problem has been defined and research design/plan chalked out. There are two types of data collection

Primary Data

Secondary Data

Primary Data

Primary data arte those which are collected afresh for the first time, and thus happen to be original in character

Secondary Data

Secondary data are those have already been collected by someone else and which have already been passed through the statistical process.

For the purpose of our study I have used both primary data and secondary data. This method of data collection is quite popular, particularly in case of big enquiries, as the customer himself/herself becomes an advisors so his /her point of view is must this can be obtained only with primary data

In secondary data I have used Internet, broachers of the company, companys website magazines, newspaper. Reports and publications of various associations connected with industry. I

Sample Area & Size

The area of sampling is Delhi & Ghaziabad. The sample size is 100 which include the Agent & Advisors of Max NewYork Life Insurance Company.

Chapter-2: SWOT Analysis of the CompanyStrengths & Weaknesses of the company Max New York Life Insurance has to improve its brand image, i.e. it has to position itself in the minds of prospects in a better way in comparisons to others.

It should provide better career opportunities for the retention of its potential advisors.

Further it has to provide training to its recruited advisors by good and efficient training methods, which might be a little bit customized if needed.

It should more emphasize in advertising, as it is the most powerful tool to position ant brand in the mindsets of customers.

It should provide online training and for those who are in jobs and want to become advisors Max New York Life should provide evening training classes, so that they can join the training after doing there jobs.

The policies should be made such that it is viewed as hedging tools to earn risk-free returns i.e. it should be considered more than just a risk cover. Company should start creating their own database and give it to the advisors so that the advisors have more option in their hand.

Companys PracticesLife Insurance

Life insurance is a contract providing for the payment of a sum of money to the person assured or failing him to the person entitled to receive the same on the happening of cetin event.

Uncertainly of death is inherited in human life. It is this rise, which gives rise to the necessity for some form of protection against the financial loss arising from the death. Insurance substitutes this uncertainty by certainly.

The objective of Insurance is normally to provide

A. Family protection

B. Provision for old age

Requirement of Life Insurance

You think twice before taking the plunge into buying life insurance. Is buying insurance is necessity now? Spending an extra amount as premium at regular intervals where do you not see immediate benefits does not seem a necessity at the moment.

Well you could be wrong. Buying insurance cannot be compared with any other form of investment. Insurance gives you a life long benefits and the returns will definitely come but only when you need it the most i.e. at the right time. Besides buying insurance early in life is one of the wise decisions you could take.

Insurance is not about how much more it can offer you when the stock market is at the peak. It may not be an attractive investment option. But weight pros and cons and consider how much more it can offers at a small price.

Most important of all it provides you with the unique sense of security that no other form of investment provides. It gives you a sense of financial support especially during that time of crises irrespective of the fluctuation in the stock market. Insurance provides for your career goals right from the childhood years.

If the eating member of the family is no more your childs educational need will not suffer. In fact his higher education too will be provided for. You need not spend sleepless night thinking about how to save for childs marriage. Life insurance will take care of that typical once-in-a-life-time spending on marriage.

An accident or a disability may be devastating but a life insurance policy can be of utmost support for the family during such times too. Besides it provide for addition benefits such as bonuses. You need not worry about retirement years. The rising prices, taxes and your lifestyle will be taken care of easily. And you can relax and spend your old age in comfort and peace.

Life insurance todays plays a major role in once life at various stages. Considering the benefits it offers one cannot give a thought to buying an insurance policy the earliest.

Need for Insurance

The need for life insurance comes from the need to safeguard our family. If you care of your familys need you will definitely consider insurance.

Today insurance has become even more important due to the disintegration of the prevalent joint family system, a system in which a number of generations co-existed in harmony, a system in which a sense of financial security was always there as there were more earnings members.

Times have changed and nuclear family has emerged. Apart from other pitfalls of a nuclear family, a high sense of insecurity is observed in it today besides, the family has shrunk. Needs are increasing with time and fulfillment of these needs is a big question mark.

How will you be able to satisfy all those needs? Better lifestyle, good education, and your long desired house. But again you just cannot fritter away your earnings. You need to save a part of it for the future too a wise decision. This is where insurance helps you.

Factors such as fewer numbers of earning members, stress, pollution, increasing competition, higher ambitious etc are some of the reasons why insurance has gained importance and where insurance plays a successful role.

Insurance provides a sense of security to the income earner as also to the family. Buying insurance frees the individual from unnecessary financial burden that can

Otherwise make him spend sleepless night. The individual has a sense of consolidation that he has sometime to fall back on.

From the very beginning of your life, to your retirement age insurance can take care of all your needs. Your child needs good education to mould him into a good citizen. After his schooling he needs to go for higher education, to gain a professional edge over the others a necessity in this age where cutthroat competition is the rule. His career needs have to be fulfilled.

Insurance is a must also because of the uncertain future adversities of the life. Accidents, illness, disability etc are the facts of life, which can be extremely devastating. Other than the hospitalization, medication bills these may run up its the aftermath of the accident, the physical well being of the individual that has to be taken into consideration. Will the individual be in a position to earn as before? A pertinent question. But what if he is not? Disability can be taken care of by insurance. Your family will not have to go through the grind due to your present inability.

Moreover, retirement, an age when every individual has almost fulfilled his responsibilities and looks forward to relaxing can be painful if not planned properly. Have you consider the increasing inflation and taxes? Will you investment offer you attractive return under such circumstances? Will it take of your family after you? An insurance policy will definitely take care of these things. Insurance today has opened up new vistas a lot of potential. Considering how dependent our agriculture system is on the monsoon, the farmer sees a dim future. The uncertainty of the monsoon too can be taken care of by insurance. Looking at the advantage of the insurance policy a number of farmers have gone into insurance. Insurance has become a necessity today.

The right time to buy Insurance

Buying life insurance cannot ever be compared with other investment decisions since it is very much contrast with those stock market investments where you wait for the right time to buy and sell. Neither is this like receiving tips on particular scrip doing well in the market and holding great future prospects.

Buy life insurance at the earliest. Do you think when you will fall ill? Are you sure about future income earning potential? Are you sure you will never meet an accident? If not buy insurance now

This is because the future is always uncertain. Just as buying insurance is a necessity so also buying insurance early in life is important too. With proper financial planning one can work out as to how much money an individual is entitled to after the end of a particular term. A policy that fulfills your childs future education needs would have to be timed appropriately so that he receives the policy amount at the time when he needs it the most.

Benefits of life insurance

The proceeds accruing from life insurance policy can be utilized for:

A. Final expenses resulting from death.

B. Guaranteed maintenance of lifestyle.

C. Replacement of income.

D. Mortgage or Liquidation payment.

E. Cost of education.

F. Estate and other taxes.

G. Continuity and security of interest.

Superiority of Life Insurance

An immediate estate is created in favor of the policyholder.

Protection in case of death.

Liquidity in case of need easy loans are available.

Tax relief income tax, wealth tax, etc.

Policies can be offered as collateral security.

Policies can be taken under M.P.W Act 1874, to protect against creditors.

TYPES OF

INSURANCE

POLICIES

Types Of Insurance Policies

Though there are lots of policies available in the market under different names and by different companies, the policies can broadly be classified into following categories:

Term Insurance policy

Whole life policy

Money back policy

Endowment policy

Pension plans or Annuities

Term Insurance Policy

Term insurance provides life insurance coverage for a specific period of time. Presently one year, ten year, and fifteen year are the periods one can buy term life insurance policy. If the insured person dies during the period the insurance is in force, the insurance company pays off the face value of the policy. If the insured lives longer than the term of the policy, the policy is no longer in effect and nothing is paid.

Term insurance is the least expensive form of life insurance. It is commonly used when the insured needs temporary protection or cant afford the premiums for the other forms of life insurance. The other reason an insured may want term insurance is to purchase life insurance and invest the difference between the term policy and cash value policy elsewhere.

Term insurance comes in several forms. There is renewable & non-renewable. Non-renewable means that on the expiry of your policy you must go under another physical test and filling out another questionnaire. On the other hand, with renewable policy you do not need to undergo these formalities again and you automatically re-qualify to continue your policy.

Then there is convertible & non-convertible policy is the one which can be converted into a permanent policy, whereas non-convertible is the one which can not be converted into a permanent policy or in other words the policy can not be converted into any form of life insurance policy.

WHOLE LIFE POLICY

The whole life policy provides insurance coverage for the entire life of the insured regardless of how many years the insurance to pay. Premiums may be paid throughout the insured entire life or for a portion of his life. Additionally the premium can be paid in one lump sum money when the policy is taken out. This is referred to as single premium whole life policy.

When the premium is paid throughout the life it is known as straight life policy, but when the premium is paid for a specified period of time it is known as limited life policy.

The premiums are higher for whole life policy as opposed to term insurance. The reason for this is that the policy has investment features as well as death benefits. The cash value portion of the whole life policy insurance belongs to the insured. One can take it out in the form of the policy loan or cash the policy in. another advantage of whole life policy is that the premium are fixed, i.e. regardless of your income, you pay the same amount for the coverage each year.

Universal life insurance policy

Universal life insurance is a variation of whole life. The difference is that with Universal life insurance part is spread from the investment portion of the policy. The cash value portion of the policy is tested, as an accumulation fund and investment is credit to the accumulation fund.

Money Back Policy

Money back policy provides the periodic payments of partial survival benefits during the term of the policy, as long as the policyholder is alive.

An important feature of this type policy is that in the event of the death at any time within the policy term, the death claims comprises the full sum assured, without deduction of any of the survival benefit amount, which may have already been paid as money back components. Similarly the bonus is also calculated on the entire sum assured.

Endowment policy

An Endowment policy covers the risk for a specified period, at the end of which the sum assured is paid back to the policyholder, along with the bonus accumulated during the term of the policy. This feature of payment of endowment to the policyholder when the policies term is complete is responsible for the popularity of endowment policies.

The amount received on maturity can either to buy an annuity policy to generate a monthly pension for the rest of the policy, or put it into any other suitable investment of our choice. This is one important benefit, which the endowment policy offers over a whole life insurance policy.

Overall, endowment policies are the most suitable of all insurance plans for covering the risk to a family breadwinners life. Not only do these policies provide financial risk cover for the family, were the policy holder to die prematurely but the insurance amount is also repaid once this risk is over.

Alternately, the endowment sum is available for a suitable investment geared to providing an income for the remainder of once own life. These types of plans are particularly suitable to those who other than having risk cover is also interested in a saving component simultaneously.

Pension Plan Or Annuity

An annuity is an investment that we make, either in a single lump sum or through installments paid over a certain numbers of years, in return for which we receive a specific sum every tear, every half-years of every month, either for whole life or a fixed number of year.

After the death of annuitant or after the fixed annuity period expires for annuity payments, the invested annuity fund is refunded, perhaps along with a small addition, calculated at that time. Annuities differ from all other form of life insurance in one fundamental way-an annuity does provide any life insurance cover but instead offers a guaranteed income either for life or a certain period.

Typically annuities bought to generate income during ones retired life, which is why they are also called pension plan. Annuity premiums are payments are fixed with reference to the duration of human life. Settlement Option

When the life insurance policy becomes payable, the insured or the beneficiaries may elect to take-to-take payment in one lump sum. However, when the insured or the beneficiaries, elect not to take lump sum payment, there are several other options available to him for receiving his payment, which are as follows:

Interest Option

According this option, the entire proceeds are left with the insurance company and it pays a guaranteed interest rate on your amount. At any time in the future, the beneficiary can withdraw the money.

Fixed Amount Option

In this option the beneficiary receives a fixed amount of money each month until the proceeds are exhausted.

Fixed Period Option

The fixed period option will pay the beneficiary equal payments over a fixed period of time, which may be 10 years, 20 years or even just 5 years. Excess interest earned will increase the amount of these payments.

Life Income Option

This option provides the beneficiary with the proceeds paid over the rest of his life. However when the beneficiary dies the balance of the policy is considered used up.

Chapter-3: Functional Analysis of the Company

ANALYSIS & INTERPRETATIONQ. MONTHS OF WORK OF SURVEYED RESPONDENT

FrequencyPercentValid PercentCumulative Percent

Valid1.0023.03.33.3

6.0011.51.64.9

7.0034.54.99.8

12.001623.926.236.1

14.0057.58.244.3

16.0011.51.645.9

17.0011.51.647.5

18.00710.411.559.0

24.0057.58.267.2

29.0011.51.668.9

30.0069.09.878.7

32.0011.51.680.3

33.0011.51.682.0

36.001116.418.0100.0

Total6191.0100.0

MissingSystem69.0

Total67100.0

Analysis:

From the chart above we find that 16.4% of the respondents are already covered their three years as an agent advisors, which is the maximum strength out 100%.

Therefore these agent advisors are needed to motivate more, than the new agents.

Q) HOW DO YOU COME TO KNOW ABOUT MNYL?


Valid1.003958.263.963.9

2.001522.424.688.5

3.0023.03.391.8

5.0057.58.2100.0

Total6191.0100.0

MissingSystem69.0

Total67100.0

Analysis:

From the chart above we find that 58.9 % of the respondents come to know about the company from their friends and 22.4% come to know from their relatives.

Therefore there is a continuous need of print advertising and media advertising from the company side to let more people know about the company brand name.

Q) PART TIME JOB OPTION IS AN IMPORTANT FACTOR TO JOIN AS AN AGENT?


Valid1.003044.847.647.6

2.002029.931.779.4

3.001014.915.995.2

4.0034.54.8100.0

Total6394.0100.0

MissingSystem46.0

Total67100.0

Analysis:

From the above chart we can conclude that 44.8% of the respondents have become an agent as a part time job. It clearly shows that the general psyche of the agents is that they take their agency as a part time business.It can therefore be concluded that this is an area of concern for the companys.

Q) INCENTIVES PLANS GIVEN TO AGENTS ARE ACHIVABLE.?


Validstrongly disagree11.51.61.6

disagree913.414.315.9

neither agree nor disagree69.09.525.4

agree2029.931.757.1

strongly agree2740.342.9100.0

Total6394.0100.0

MissingSystem46.0

Total67100.0

Analysis:

From the above chart, we can conclude that 40.3% of the respondents agree that incentive plan of mnyl are effective enough to keep them motivated & only 1.5% of the respondents feel that incentive plan doesnt motivate them.

Q) NO. OF POLICIES SOLD LAST YEAR?


Valid503146.350.050.0

50-1002334.337.187.1

100-150710.411.398.4

150 & above11.51.6100.0

Total6292.5100.0

MissingSystem57.5

Total67100.0

Analysis:

From the chart above we find that, 46.3% of the respondents surveyed have sold the 50 policies. 34% of the respondents have sold policies between 50 to 100. Hence we can conclude that MNYL agent advisors who are the license holder from the last 3 years are not able to capture the market after a certain time, may be they dont have further references or may be they are not willing to work now as an agent advisor.Q) COMMISION EARNED LAST YEAR?


Valid100k2334.337.7100.0

Total6191.0100.0

MissingSystem69.0

Total67100.0

Analysis:

From the chart above we find that, 34.3% of the respondents surveyed earned an annual commission of rs.100000. 28.4% of the respondents earned an annual commission between rs.10000 to rs.50000. Hence we can conclude that the agent advisors who have sold around 50 policies in a year are earning rs.100000 and they are in good numbers than those agents advisors who have sold the policies between 50 to 100 annually.

Q) TRAINING AT MNYL IS EXCELLENT?


Valid1.0011.51.61.6

2.00710.411.112.7

3.001014.915.928.6

4.001928.430.258.7

5.002638.841.3100.0

Total6394.0100.0

MissingSystem46.0

Total67100.0

Analysis:From the chart above we find that, 38.8% of the respondents surveyed, strongly agree that the training at MNYL is excellent,28.8% people are agree that training at MNYL is excellent, but there are 10.4% of the respondents says that the training is not good at MNYL.

Most of the people are satisfied with the training, because of the work environment,

Q) PERSONAL MANNUAL TRAINING IS NOT SO IMPORTANT TO BECOME AN AGENT OF MNYL.


Validstrongly agree69.09.59.5

agree69.09.519.0


disagree1319.420.650.8

strongly disagree3146.349.2100.0

Total6394.0100.0

MissingSystem46.0

Total67100.0

Analysis:

From the chart above we find that, 46.3% of the respondents surveyed, strongly Disagree with the statement that personal manual training is not so important, but 9% of the people agree with the statement which shows that some of the agents dont want to attend 18 days training.

Q) COMMISION GIVEN TO AGENTS IS NOT UPTO THE MARK?


Validpartially agree46.06.36.3


Disagree1116.417.544.4

Strongly disagree3552.255.6100.0

Total6394.0100.0

MissingSystem46.0

Total67100.0

Analysis:

From the above analysis we can conclude that 52.2% of the respondents disagree with statement, they are satisfied with the amount of commission that they get from the company.GENDER OF RESPONDENTS


Validmale32464646

female355454100.0

Total67100.0100.0

Total67100.0

Analysis: The above graph shows that 46% are male respondents and rests are females. It means that there are more females than the males. Though the difference is very less, but female wives can be targeted for recruitment.

OCCUPATION OF RESPONDENTS


Validservice&business2841.845.945.9

house wives3349.354.1100.0

Total6191.0100.0

MissingSystem69.0

Total67100.0

Analysis: From the above chart we can conclude that 49.3% of the respondents are housewives, 41.8% of the respondents belong service and business class, we can conclude that most of them are woman.

EDUCATION


Validgraduate3856.760.360.3

Post grad.2537.339.7100.0

Total6394.0100.0

MissingSystem46.0

Total67100.0

Analysis:

It is clear that the Agents & Advisors at MNYL are mostly graduate and a less number are post graduate. As MNYL does not recruits undergraduates, the major target are graduated only.

Chapter-4: Lessons Learnt

Knowledge Gained To understand the procedure of channel development in MNYL.

To know about Life Insurance, its benefits and needs.

To find out possible advantage of Insurance advisors in MNYL.

To find the suitable person for the recruitment of Insurance advisors.

To study the product basket at Max NewYork Life Insurance

Experience Gained from MNYL Confidence

Self motivation

Persuasion

Urge to be financially independent

Relationship skills

Working environment of company To be part of a world class sales team Work from own office or residence Work full time or part time Earn commission, bonus and incentives No upper limit on earnings Flexible career Opportunity with MNYL No startup capital required

Flexible working environment

Be your own boss

Unlimited earning potential

To be part of a world class team

Students should be sent to the company in future for summer training. Field visits Training on products and selling skills Regular on product and selling skills Regular business reviews Be a coach and Mentor Recognize high performance

Companys expectation Achieve sales targets

Participate in all meetings

Attend all training programs

Weekly reviews at the office

Follow the sales process

Follow weekly reporting process

Channel Development

It is very important to know that what sort of person would do the job MNYL suggest some skills that are listed below:

Confidence: This is the main skill, which an advisor must contain because till he will not confident, he would not be able to convince the different kind of people. Self-motivation: Self motivation is an essential quality, which must be, possess by an insurance advisor because in this job, rejection is must more than acceptance, so an advisor has to be very strong from the heart and should not depressed soon. Persuasion: It is one of the very effective qualities, which must be there in an insurance advisor. It shows the perceiving ability of an advisor for his job. Urge to be financially independent: For a job which is commission based, an urge should be their in an advisor to become financially independent, then only he would be able to generate more money for himself and for the company. Relationship skills: This very necessary element of quality shown in an advisor by the MNYL because these skills help the advisor to make good relation from his customers, which is very necessary for the future of the company.Role & Learning at MNYLJob at MNYL was to sell a career to people. It means had to recruit insurance advisors for our company. The kind of people was looking forward were:

people above the age of 25 years

minimum qualification- plus 2, but we prefer people who have a graduate degree in any field.

And the categories on which focused were:

Housewives: as they are the home-makers and when they advice you how to manage your funds then they are highly influential.

Retired people: these are the people who have seen life therefore their advice are also liked by people.

Voluntary retired people

Self employed people

Activities performed were:

Name Gathering:My 1st activity was name gathering. On the first day I was taught a pen framing exercise for this. This exercise helps you in getting 50 names from one person. We were told about the categories from which we can gather name. Figure given below depicts the same:

Fig. 1

Firstly I was to ask to target our family. Every name was entered in the centre box of the above figure and persons friends, relatives, neighbors names were asked. Similar exercise was done with friends and relatives. On the first day when sir asked me to give 5 names of people whom I know and who fulfill the criteria (as stated above), I found it very difficult but by the end of the day I was able to collect around 40 names.

Apart from pen-framing exercise I collected names by going to local market i.e. Atta market and sector-18 market. There I met shopkeepers and customers. I tried to get references from them. For this I prepared a simple questionnaire.

I went to Indian Habitat Center & also visited Coffee House at Connaught Place, Delhi. There I met retired people who come to the library for reading newspapers. I tried to convince them and invited them to attend the career seminar.

I did cold calling also. I got the directory and we called them, told them about the career opportunity and tried to invite them for the career seminar.

After collecting names, we have to find out the names of people those people from that list who are either housewives, retired people, self employed, people who have taken VRS, CAs, CSs, i.e. quality people and after that inviting them.

INVITING:

My second activity was to invite people to the career seminar. For this I had a conversation (telephonic) with the people whose references I got from people and invited them for the career seminar. For the conversation to be effective a script was given to us stating that what all we have to speak, how to convince them to meet us and how to get further references from them.

After the career seminar we used to give a project-200 booklet to them which they were supposed to fill. In this they were asked to fill at least 100 names of the people whom they know because advisors are asked to tap their natural market firstly and touch the reference market later on. INITIAL SCREENING:

I had to keep a follow up with the people who attended career seminar. I used to call them for initial screening, with their filled P-200s. In the initial screening my job was to see the profile they have filled in their P-200. Then I had to ask certain simple questions like who according to him/her is a successful sales person. If find the person suitable then I had to send him/her to my senior for further screenings. PROCEDURE:--

The whole procedure of my job is given in the form of a flow chart so that it is easy to conceptualize the idea.

DATABASE

TAKE ONE FROM THESE DATA

MADE A TELEPHONE CALL

AND FIXED AN APPOINTMENT

GO TO THAT PERSON

TRY TO CONVINCE THEM

AND CALL THEM TO CAREER SEMINAR OR

FOR AN INTERVIEW WITH SALES MANAGER

TOOK REFERANCE FROM THEM

GIVE THEM FORM AND ALL NECESSARY ELEMENTS

CLOSED THE CALL

Fig. 8

Reward and recognitions

Fig. 9

CONCLUSIONConclusion

Life insurance is also now being regarded as a versatile financial planning tool. Research indicates that Indians have four basic financial needs during their life asset accumulation (such as buying a house or car), protecting their family, securing their childrens education, and provision for their retirement.

India being a country having a huge population of around one billion people with only 32% of the insurable population in India possessing life insurance the country has a vast potential, which has been left untapped till now.

For life insurance company life insurance advisors are the lifeline and a very huge asset so each company try to recruit and select a potential force of life insurance advisors because this is the advisors who generate maximum business for the insurance company. Life insurance advisors provide a very strong support to the insurance company and do all possible efforts to generate huge amount of profit to the company and for him.

In Max New York Life recruitment and selection procedure is really very impressive. By the help of this process, company recruits a very good class of advisors. A detail study is done before starting the recruitment and selection procedure that help the company to select the best advisors. This study helps us to understand all the possible aspects related to the Max New York Life Recruitment and selection procedure.

BIBLIOGRAPHY

Bibliography

www.maxnewyorklife.com www.askjeeves.com www.europages.com www.directhit.com http://www.capitalmarket.com/Cmedit/story25-0.asp?SNo=108003

http://www.rncos.com/Report/FM003.htm

http://www.maxindia.com/pdf/InvestorReleaseQ2FY06.pdf Kothari, C.R, Research Methodology, New Delhi, Vikas Publishing House PVT LTD. 2005

Max New York Life brochure of advisors Recruitment.

IC 33 Life Insurance (Revised), Insurance Institute of India

ANNEXURES

Annexures

QUESTIONNAIRE

1. Are you an Insurance Agent at MNYL?

Yes

No

2. How long are you working for MNYL as an Agent & Advisor?

_________________

3. How do you come to Know about MNYL?

Friends

Relatives

Internet

Promotions

4. The profession is regarded by you as a part time or full time profession?

Full time Part time

cant say No answer

5. Are the incentive plans given at MNYL achievable?

strongly agree

Agree

neither agree nor disagree

disagree

Strongly disagree.

6. How many policies did you sell last year?

less than 50 50 - 100

100 - 150 150 & above

7. How much commission did you earned last year?

> 10000 10000 - 50000

50 - 100000 100000 & above

8. Do you agree that training program of agents at MNYL is excellent?

strongly agree

Agree


disagree

Strongly disagree

9. Do you agree that personal training is required for Agents & advisors?

strongly agree

Agree


disagree

Strongly disagree

10. Do you think that the commission given by MNYL is up to the mark?

strongly agree

Agree


disagree

Strongly disagree

Name____________________

Phone no._________________

Gender___________________

Education_________________

Occupation________________

Thank you, for your Valuable Time.

1.00

6.00

7.00

12.00

14.00

16.00

17.00

18.00

24.00

29.00

30.00

32.00

33.00

36.00

Missing

1.00

2.00

3.00

5.00

Missing

NAMES

RELATIVES

FRIENDS

NEIGHBOURS

CUSTOMES

DATABASE

Member-MAX LIFE Living Legends Galaxy

National vice President

Head, Training

Regional Vice President

Chief Manager (Training)

Financial Advisor

Sr. Financial Consultant

Branch Manager

Trainer

Sales Manager

Financial Consultant

Life Advisor

CEOs COUNCIL

MDRT

EXECUTIVE COUNCIL

PAUL COLGAN TROPHY

CENTURION

AGENT OF THE YEAR

PAID CASE, FYC, PERSISTENCY, RIDER, FEFERRAL AND CEIP LEADER

CAREER PRODUCER AWARD

CAREER SUCCESS AWARD

HI-FLIER

TEN-A-MONTHER

PREMIUM LEADER

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Max Life Insurance

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