Max New York Sip Project

RECRUITMENT OF FINANCIAL ADVISIOR AND THEIR DEVELOPMENT AT MAX NEW YORK LIFE INSURANCE.

UNDER THE GUIDENCE OF

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Executive Summary

This Report is an attempt to provide a detailed analysis of the process of Recruitment and Training program done by Max New York Life Insurance and benefits of the training. During this student internship program I came to know that, knowledge based economy, training helps people to learn how to do things differently or to do different things. However, my survey suggests that maximum number of employees, in the turbulent, fast changing world, effective training has never been more important. Products are now increasingly knowledge intensive; for this, employers are responsible for providing opportunities for continued leaning. In my survey I found that 80% of employees are new to the job and they must undergo the training program. Finally, creating awareness of organization structure and its products to the employee is very important to have individual as well as organization growth. So it can be possible only when the employees go through the training program.

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Contents Introduction of Title.

Page No.

History of Insurance Sector Company Profile Project Findings Recommendations Conclusion On the job training Objectives Targets Achievements Limitations Learning Bibliography

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Recruitment

Recruitment and selection are two of the most important functions of personnel management. Recruitment precedes selection and helps in selecting a right candidate. Recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that man power in adequate numbers to facilitate effective selection o f efficient personnel. Staffing is one basic function of management. All managers have responsibility of staffing function by selecting the chief executive and even the foremen and supervisors have a staffing responsibility when they select the rank and file workers. However, the personnel manager and his personnel department is mainly concerned with the staffing function . Ever y organization needs to look after recruitment and selection in the initial period and thereafter as and when additional manpower is required du e to expansion and development of business activities. Right person for the right job is the basic principle in recruitment and selection. Every organization should give attention to the selection of its manpower, especially its managers. The operative manpower is equally important and essential for the orderly working of an enterprise. Every business organization/unit needs manpower for carrying different business activities smoothly and efficiently and for this recruitment and selection of suitable candidates are essential. Human resource management in an organization will not be possible if unsuitable persons are selected and employment in a business unit. Recruitment means to estimate the available vacancies and to make suitable arrangements for their s election4

and appointment. Recruitment is understood as th e process of searching for and obtaining applicants for the jobs, from among whom the right people can be selected. A form al definition states, It is the process o f finding and attracting capable applicants for the employment. The process begins when new recruits are sought and ends when their applicants are submitted. The result is a pool o f applicants from which new employees are selected. In this , the available vacancies are given wide publicity and suitable candidates are encouraged to submit applications so as to have a pool of eligible candidates for scientific selection . In recruitment, information is collected from interested candidates. For this different source such as newspaper advertisement, employment exchanges, internal promotion, etc. are used. In the recruitment t, a pool of eligible and interested candidates is created for s election of most suitable candidates. Recruitment represents the first contact that a company makes with potential employees . According to E DW I FLI PPO, Recruitment is t he process of searching for prospective employees and stimulating them to apply for jobs in t he organization.

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TRAINING AND DEVELOPMENT

In simple terms, training and development refers to the imparting of specific skills, abilities and knowledge to an employee. A formal definition of training & development is) it is any attempt to improve current or future employee performance by increasing an employees ability to perform through learning, usually by changing the employees attitude or increasing his or her skills and knowledge. The need for training & development is determined by the employees performance deficiency ,computed as follows:Training & Development need= Standard performanceActual performance.

We can make a distinction among training, education and development. Such distinction enables us to acquire a better perspective about the meaning of the terms. Training, as was stated earlier, refers to the process of imparting specific skills. Education, on the other hand, is confined to theoretical learning in classrooms. Table1.Training and Education DifferentiatedTraining Education

Application Job Experience

Theoretical Orientation Classroom Learning6

Specific Tasks Narrow/Perspective

General Concepts Broad Perspective

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Training refers to the process of imparting specific skills. Development refers to the learning opportunities designed to help employees grow. Education is theoretical learning in classroom. Though training and education differ in nature and orientation, they are Complementary .An employee, for example, who undergoes training, is presumed to have had some formal education. Furthermore, no training programme is complete without an element of education. In fact, the distinction between training and education is getting increasingly blurred nowadays. As more and more employees are called upon to exercise judgments and to choose alternative Solutions to the job problems ,training programmers seek to broaden and develop the individual through education. For instance, employees in well paid jobs and employees in the service industry may be required to make independent decision regarding their work and their relationship with clients. Hence, organization must consider elements of both education and training while planning their training programmers. Development refers to those learning opportunities designed to help employees grow. Development is not primarily skill oriented. Instead, it provides general knowledge and attitudes which will be helpful to employees in higher positions.fforts towards development often depend on personal drive and ambition. Development activities, such as those supplied by management developmental programmes , are generally voluntary.

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To bring the distinction among training, education and development into sharp focus, it may be stated that training is offered to operatives, whereas developmental programmers are meant for employees in higher positions. Education however is common to all the employees, there grades notwithstanding. AIMS/OBJECTIVES OF TRAINING & DEVELOPMENT The fundamental aim of training is to help the organization achieve its purpose by adding value to its key resource the people it employs. Training means Investing in the people to enable them to perform better and to empower them to make the best use of their natural abilities. The particular objectives of training are to: 1. Develop the competences of employees and improve their performance; 2. Help people to grow within the organization in order that, as far as possible, its future needs for human resource can be met from within; 3. Reduce the learning time for employees starting in new jobs on appointment, transfers or promotion, and ensure that they become fully competent as quickly and economically as possible.

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INPUTS IN TRAINING AND DEVELOPMENTS Any training and development programme must containing in puts which enable the participants to gain skills, learn theoretical concepts and help acquire vision to look into distant future. In addition to these, there is a need to impart ethical orientation, emphasize on attitudinal changes and stress upon decision making and problem solving abilities. Skills Training, as was stated earlier, is imparting skills to employees. A worker needs skills to operate machines, and use other equipments with least damage or scrap.Thisisabasicskillwithoutwhichtheoperatorwillnotbeabletofunc tion.There is also the need for motor skills. Motor skills refer to performance of Specific physical activities. These skills involve training to move various parts of ones body in response to certain external and internal stimuli. Common motor skills include walking, riding a bicycle, tying a shoelace, throwing a ball and driving a car. Motor skills are needed for all employees from the clerk to the general manager. Employees, particularly supervisors and executives, need interpersonal skills popular known as the people skills. Interpersonal skills are needed to understand oneself and others better, and act accordingly.

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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 was 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. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360- degree turn witnessed over a period of almost 190 years. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 - 245 Indian and foreign insurers and provident societies11

taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. 1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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Insurance Act, 1938 to IRDA 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 incorporation 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 IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a 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 framework of globally compatible regulations. Duties, Powers and Functions of IRDA Section 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 subsection (1), the powers and functions of the Authority shall include, (a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;13

(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 enquiries 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 be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 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;14

(n) Supervising the functioning of the Tariff Advisory Committee; (o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and 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 favoured a review and revision of the Insurance Act, 1938 in such a manner that "it should not only promote insurance but also protect the 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 recommended 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

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and transfer of life insurance policies, there are certain anomalies in the working of subsections. 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, the Commission has favoured amending this section to make a distinction between a "beneficial" nominee and a "collector" nominee.

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Functions of Insurance The functions of Insurance can be bifurcated into two parts: Primary Functions Secondary Functions Other Functions The primary functions of insurance include the following: Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others. Collective bearing of risk - Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also. Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain. The secondary functions of insurance include the following: Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate17

consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured. Small capital to cover larger risks - Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty. Contributes towards the development of larger industries Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery. The other functions of insurance include the following: Means of savings and investment - Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance. Source of earning foreign exchange - Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.

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Life Insurance Market The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players have tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in19

the popular unit-linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatization was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average. Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich dividends. But a rejuvenated LIC is also trying to fight back to woo new customers. The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. Insurance Companies IRDA has so far granted registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance 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 insurance business.20

Particulars of the life insurance companies and general insurance companies including their web address are given below:

Public SectorLife Insurance Corporation of India www.licindia.com

Private Sector AllianzBajaj Life Insurance Company Limited www.allianzbajaj.co.in

Birla Sun-Life Insurance Company Limited

www.birlasunlife.com

HDFCStandard Life Insurance Co. Limited

www.hdfcinsurance.com

ICICI Prudential Life Insurance Co. Limited ING Vysya Life Insurance Company Limited

www.iciciprulife.com www.ingvysayalife.com

Max New York Life Insurance Co. Limited www.maxnewyorklife.com

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MetLife Insurance Company Limited

www.metlife.com

Om Kotak Mahindra Life Insurance Co. Ltd.

www.omkotakmahnidra.com

SBI Life Insurance Company Limited

www.sbilife.co.in

TATA AIG Life Insurance Company Limited

www.tata-aig.com

AMP Sanmar Assurance Company Limited

www.ampsanmar.com

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Company profile of MAX NEW YORK LIFE

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 taxsaving tool. 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. New York Life is a Fortune 100 company that has over 160 years of experience in the life insurance business. Max India Limited is a multi-business corporate dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic Products businesses.23

Max New York Life Insurance started its operations in India in 2000. It is the first life insurance company in India to be awarded the IS0 9001:2000 certification. Max New York offers customized products tailored to suit individual's needs. With its various Products and Riders, there are more than 400 product combinations to choose from. Today, Max New York Life Insurance has a network of 57 offices spread over 37 cities all over India. 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. 657 crore, which is more than the norm laid down by IRDA. Max New York Life has identified individual agents as its primary channel of distribution. The Company places a lot of emphasis on its selection process, which comprises four stages - screening, psychometric test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal control on quality of training. Max New York Life invests significantly in its training program 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 program 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. It has established a wide agency distribution network with 172 offices and representatives across 120 cities in India. The24

company has established additional channel with 22 banc assurance relationships, corporate tie-ups and a strong Direct Sales Team. Through its wide network of highly competent life insurance agent advisors, flexible product solutions and strong customer focus, Max New York life is creating a partnership for life with its customers in India. Max New York Life, one of Indias leading life insurance companies, expanded its presence in the southern region by opening its first general office in the city of Mysore. Max New York Life now has established a countrywide network of 172 offices and representatives across 120 cities in India. Max New York Life, which has till date sold over 1.53 million policies and recorded a sum assured of over Rs. 46,000 crore, has positioned itself on the quality platform. The company has developed a strong corporate governance model based on defined core values of caring, knowledge, excellence and honesty. Its strategy is to establish itself as a trusted life insurance specialist on the bedrock of quality of advice. The company has over 25,300 agent advisors, who are widely considered the best in the business. Max New York Life aspires to be the "life insurance brand of first choice" amongst Indian consumers. To achieve this company will draw on New York Life's demonstrated competence in developing and managing a superior personal sales network. For the last 46 years consecutively, the largest number of agents qualifying for membership to the Million Dollar Round Table (MDRT) have been from New York Life. The MDRT is the industry's most prestigious organization comprising the world's most successful insurance agents. Max New York Life, a merit oriented and equal

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opportunities employer, is looking for a few good men and women who will spearhead the effort to realize this vision. Max New York Life wants people to view insurance as a financial protection and wealth creation instrument and not just a taxsaving tool. Since the launch of our operations, our focus has always been on providing risk protection and long-term wealth creation solutions to our customers. With a diverse product portfolio to meet customer requirements, it is evident that we are setting benchmarks in the marketplace and are well on course of realizing our vision to become Indias most admired Life Insurance Company. An ever expanding presence of Max New York Life offices across India reinforces our commitment to serving the nation. We are extremely pleased with our progress in the region and feel that opening an office in Mysore would help us educate people about the true potential and benefits of life insurance. As life insurance specialists, Max New York Life will continue to help consumers make the right choices to meet their financial goals, both for the short and long-term, through sound quality advice offered by our agent advisors and a right mix of product offerings. he added. Max New York Life has been instrumental in changing the paradigm of life insurance in India. It is the first life insurance company in India to introduce cause related marketing. Children are at the very heart of Max New York Life's strategy. SOS Children's Villages of India is internationally recognized for its work in giving underprivileged children a wholesome life. The mission of SOS is "to help orphaned and abandoned children, by providing them with a family, a permanent home, education and strong foundation for an independent life." It's mission ties in with

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Max New York Life's philosophy of helping people secure the future of their near and dear ones. Vision Vision statement is Most Admired Life Insurance Company in 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 Max New York Life Values and Beliefs Excellence "In every aspect of work. Ranging from the in-house training institute to the detailed Personal Insurance Plan. Max New York Life is focused on achieving the highest standards of quality in every aspect of their business". Honesty "Is the heart of the Life Insurance business. Max New York believes that above all, Life Insurance is based on trust. Transparency, Dependability and Integrity will form the cornerstones of the Max New York Life experience." Knowledge "Is what makes experts. Max New York Life is focused on the Life Insurance business. Perfectly combining global expertise with local knowledge, Max New York Life is the Indian Life Insurance specialist."

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Caring "For the customer. Max New York Life is redefining the Life Insurance paradigm to focus on the needs of the customers. The Max New York service process is responsive, personalized, humane and empathetic." 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 below: y Customer comes first y Do it right the first time y Bias for result oriented action y Financial strength and discipline y Clarity of purpose y International quality standards y Inclusive Meritocracy y Learning opportunities y Fun at work y Commitment to published value system.

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Strategies Max New York Life Insurance is further strengthening its investment function, the growth strategy of the company. The company plans to strengthen its investment desk by adding analysts and fund managers and launching more fund options to provide better value to its customers of both ULIP and traditional products. The company also announced completion of one year of its Growth Super Fund, which has provided a return on investment of 20.2% as on 30th May 2008. At a time when equity markets have been volatile, the Growth Super Fund has performed exceptionally well. During the same period CNX 500 recorded a growth of 11.11% and the BSE Sensex a growth of 12.86%. Growth Super is a fund that has the mandate to invest a minimum of 70% in equity and can scale it up to 100%, with the rest invested in debt and cash instruments.

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Mr. Rajesh Sud CEO & Managing Director, Max New York Life Insurance Mr. Rajit Mehta Chief Operating Officer Max New York Life Insurance Mr. Anil Mehta Senior Director - New Markets SBU Max New York Life Insurance Mr. Sunil Kakar Senior Director & Chief Financial Officer Max New York Life Insurance Mr. Ajay Seth Senior Director- Legal & Compliance Max New York Life Insurance Mr. Debashis Sarkar Senior Director & Chief Marketing Officer Max New York Life Insurance Mr. John Poole Appointed Actuary Max New York Life Insurance

Mr. Rajesh Sud

CEO & Managing Director, Max New York Life Insurance Rajesh Sud is the CEO and Managing Director of Max New York Life Insurance, the first Indo American joint venture business to start operations in 2001 when the insurance sector was opened to private participation. A founder team member, Rajesh was amongst the first few management team members to join Max New York Life Insurance. He leads the company towards achieving its vision of being the most admired life insurance company in the country. Prior to this, Rajesh was responsible for establishing a multi channel distribution network for the individual life business. Rajesh has successfully established Agency as the core channel for the company with strong focus on process, training and productivity. These strong foundations have allowed Max New York Life30

Insurance to rapidly grow to pan India Mr. Prashant Tripathy presence with a professional and Executive Vice President- trained sales force, which is widely Strategic Planning and regarded as the best in the industry. Business Development Apart from his distribution role, Rajesh Max New York Life has also worked on many crossInsurance functional projects and Played a key role in defining Max New York Lifes business strategy and growth plans. Prior to joining Max New York Life Insurance, Rajesh was the Head of Asset Finance business at the largest foreign bank in India, ANZ Grindlays Bank and was seconded as the CEO and MD of the Bank's subsidiary finance company, Esanda Finance and Leasing Ltd. Rajesh started his career with Bank of America and held various positions of increasing responsibility. Rajesh was part of the transition team that managed the successful sale of Bank Of Americas consumer banking business to ABN Amro Bank and served as the Head of Consumer Banking Sales. Rajesh completed his Advanced Management Program from Wharton Business School, University of Pennsylvania, Philadelphia, USA. He also has a Management post graduation degree in Marketing and Finance from Faculty o

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Achievements

1. First company to provide Free look period of 15 days to the customer. This was later made mandatory by the regulator. 2. First company to start toll free line for agent services. 3. First and the only life insurance company in India to implement Lean methodology of service excellence in service industry. 4. First life insurance company in India to provide various services to the agents and customer over phone. 5. First Indian life insurance company to start service centre at the regional level. 6. First life insurance company in India to be awarded ISO 9001:2000 Certification

AWARDS

1.Outlook Money survey ranked MNYL No.1 in Slow, Medium and Categories. 2.BT Mercer Ranked No7 in the Best companies to Work For. Awarded the Gallup Great Work Place Award 2009. 3. CII Exim Bank Commendation Certificate for Business Excellence-2008.32

4. Recognized as a Super brand. 5. Recipient of 2008 CIO 100 Award for technology implementation. 6. Golden Peacock Award for Innovation 2008. 7. Among the top 25 companies to work for in India, according to Business world 2003 Great Workplaces of India. 8. Among the top five most respected insurance companies in Among the top five most respected insurance companies in India as per Business world 2004 & 2006 survey. 9. Received Best Six Sigma Project award at Sakal Six Sigma Excellence Awards 2006. 10. Received the Amity Corporate Excellence Award 2007. 11. Received the Outlook Money Award for being among the best new insurers in the country 12. First life insurance Company to be awarded CII-Exim Bank Commendation Certificate for Strong Commitment to Excel 2008.

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OBJECTIVES OF PROJECT The main objective of doing this project is to study employee attitude regarding the training program and the benefits of the training program. During this student internship program period I have to achieve something which is helpful to the development of myself and some value addition to the company. Getting more business to the company because of training program is the main objective. It gives me good exposure of myself and creating good impression of corporate mind. The main objective of this study is to know the employee opinion regarding the training program. To find out what is the training needs in concern area. To find out the benefits of the training program to the employee and to the organization. To find out what is the result for the organization because of giving the training to the employee. Project Activity Name Gathering: PO, Cold Calling & Nominator. Tele calling to Prospects for Recruitment Process. Initial Screening/Short-term Interview Career Seminar P-200 Evaluation Career Interview IRDA Training & Exam (2 weeks) Getting Feedback from Screening.

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SELECTION CRITERIA OF AGENTS:The basis of recruitment is based on nine points. AGE POINTS Below 25 yrs 1 25-35yrs. 2 Above 35yrs. 3

SEX POINTS

MALE 2

FEMALE 3

QUALIFICATION POINTS

UNDERGRADUATE GRADUATE 2 3

MARITAL SATUS POINTS

UNMARRIED 1

MARRIED 2

RESIDENT OF KOLKATA POINTS

NOT MORE THAN 5YRS. 1

MORE THAN 5YRS. 2

Those candidates having minimum NINE POINTS are only eligible for Screening. After selection they undergo for IRDA training for2-weeks.After IDRA Exam, Company gives its own Training for their all round development.

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Definition of Training: The systematic development of the knowledge, skills and attitudes required by an individual to perform adequately a given task or job. Training refers to efforts that help enhance employee skills for carrying out the present job. According to Edwin B Flippo, training is the act of increasing knowledge and skills of an employee for doing a particular job.

Needs for training: To improve the current job performance of employees To familiarize employees with the policies and procedures of the organization. To enhance the creativity, adaptability and versatility of the employees and to facilitate learning at the work place To prepare employees for future job. To change the skills, knowledge and attitudes of the employees on a permanent basis. To help employees manage their careers. To maintain knowledgeable work force. To gain competitive advantage through a knowledgeable work force. To promote organizational growth through individual growth.

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Areas of training: Company policies and procedures Human relations training Skill based training Problem solving training Onsite Workshops for Leadership Team Employees need more than bosses... They need mentors: Professionals skilled at assessing employee development needs and committed to guiding employees toward professional success. Team Leadership Workshop provides managers with proven techniques for effective personnel management. By helping leaders understand and address their employees' requirements, this interactive seminar offers significant benefit to managers at all levels. New supervisors gain a solid grounding in the concept of ''leadership,'' while more experienced managers refresh their commitment to teaching and coaching their team members. This training program provides healthy perspectives for managers at all levels, making it an ideal morale-boosting leadership development experience for mixed groups of front-line supervisors and senior staff members. Leadership Training for Success All managers need methods. Leaders need to know the most effective techniques for guiding teams, mentoring individuals, and validating the results. Without solid methods, managers will revert use a one-size-fits-all approach to leadership that reflects the leader's personality, rather than the employees' needs.37

Committed, mentoring leadership is essential to employee morale, productivity, and retention. A Results-Oriented Training Program Team Leadership Workshop provides proven methods and procedures for successful people management. Participants receive a step-by-step plan for guiding each employee toward success. This workshop includes elements of Frank Whyte's nationally respected Team Building Workshops expanding upon that foundation to help leaders: Recognize each employee's personality preferences and supervisory needs, Align their leadership style with those of their bosses, colleagues, and subordinates, Develop competent and committed employees by mentoring and guiding their employees toward success, Schedule their management responsibilities to ensure that nothing is left to chance, and Use practical, real-world scenarios to resolve challenges and remove barriers. Training Program done by Max New York Life Training is must for every individual when he enters into the organization. Even though the candidate has experience he also should get training. Why because the organization culture, values and beliefs are different from one organization to other. Thats why the training program plays a key role in every organization.

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Training program following by Max New York Life Insurance is different at various levels. Mainly in training program the company concentrates on sales managers, agents, operations executives and tele-callers. Training program for Financial-Advisors.: The training program duration is 15 20 days They get training on product knowledge How to convince the people? Objection Handling . They will get training on customer database files Taking care of the customer files Well trained in product information and documentation Renewals will be informed periodically. Required skills for employees in Max New York Life Insurance: Interpersonal skills Excellent communication skills Understanding nature Aggressiveness Convincing skills Ability to motivate others Interest to learn39

FINDINGS 1. Trained employees can work more efficiently. 2. Training makes employees more loyal to an organization. 3. Training makes an employee more useful to a firm. 4. Training enables employees to secure promotions easily. They can realize their career goals comfortably. 5. Employees can avoid mistakes on the job. They can handle jobs with confidence. They will be more satisfied on their jobs. 6. Training can contribute to higher production and fewer mistakes, greater job satisfaction and lower employee turnover. 7. Also, it can enable employees to cope up with organizational, social and technological change.

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RECOMMENDATIONS Max New York Life is a process oriented company. The recruitment process in MNYL is scientific. Create awareness: The Company has to take care of awareness creation about the products and services among the Advisors/Agents, Charges: The Company has to reduce the mortality and administration charges. . Product promotion strategies should be improved through alternative channel development like direct selling executive, corporate agencies, and NGO involvement. Company should consider the present competition and should act according to the customer needs. It should be like long term training like Fundamental Carrier class , Basic Carrier class which helps the advisors in different stages. Lack of data base is one of the hindrances in channel development. The product cost of MNYL should be reduced to compete with other insurance companies.

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CONCLUSION In this Knowledge-based economy, training helps people to learn how to do the things differently or to the different things. Products are now increasingly knowledge-intensive; for this employers are responsible for providing opportunities for continued learning. To cope with the challenges and competitiveness in the world, every organization needs the services of trained persons for performing the activities in the systemic way. So, training program plays a key role in individual as well as organizational performance.

ON THE JOB TRAINING INTRODUCTION My OJT is to finding the employee potentiality in their concern department. And I have to find how training will helpful for organization as well as individual growth. I have to identify the employees who needs training program and I have to find how company can make the employees to show interest for attending the training program. I have to submit the results what can company get after giving the training to the employees.

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ACHIEVEMENTS I promoted Max New York Life products during my SIP period. I have showing them as monthly wise as follows, In The Month of JUNE 1st week 2nd week 3rd week 4th week 1 lead 2 leads Training class on norms and why Insurance is needed

In The Month of JULY 1st week 2nd week 3rd week 4th week 2 leads 3 leads 3 leads 2 leads

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LIMITATIONS

1. The survey was conducted within the company. 2. And in survey I have to interact with the employees. But the employees will be busy their works. 3. Getting the good response from the employee will be difficult because of their busy schedule. 4. Time to interact with employees inside the branch is not sufficient. 5. Time Period of my OJT is one of the limitations.

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LEARNINGS 1. Learnings in the on the job training. 2. Importance of the training program. 3. How the training program will help for the individual as well as organizational growth? 4. The way to improve communication skills. 5. The way to behave people in corporate world. 6. How the company deals with the customer? 7. How to convince someone, motivate someone? 8. The work attitude of the company 9. The way of working under pressure 10. Overcome different situations

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BIBLIOGRAPHY

BOOKS REFERRED :1. Balachandran ,S, IC-33-LIFE INSURANCE(new syllabus)by Insurance Institute of India,( First edition 2007)

2. K.Aswathappa, Human Resource Management by Tata Mc-Hill7th edition 2008.

WEBSITES REFERRED ! www.maxnewyorklife.com ! www.irdaindia.org ! www.thehindubusinessline.com

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