Max Newyork Life Insuance 2

Summer Project Reporton

“STUDY OF MAX NEW YORK LIFE INSURANCE PRODUCT AND PRESENT MARKET SCENERIO”

Submitted to:Ms. Gargi VermaProject Supervisor

Submitted by:Arun Kumar

Roll No. 0708170020MBA- III Sem.September 2009

to

U.P. TECHNICAL UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIESINSTITUTE OF FOREIGN TRADE & MANAGEMENT

STUDIES, LODHIPUR RAJPUT, DELHI ROAD MORADABAD

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“STUDY OF MAX NEW YORK LIFE INSURANCE PRODUCT AND PRESENT MARKET SCENERIO”

byARUN KUMAR

MBA III SEMESTERSUBMITTED TO DEPARTMENT OF MANAGEMENT STUDIES IN THE PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATIONAT THE

INSITUTE OF FOREING TRADE AND MANAGEMENT

SEPTEMBER 2009

The author hereby grants IFTM, MORADABAD reproduce and to distribute publicly, paper and electronic copies of the project report in whole or in part.

Signature of studentDepartment of Management studies

September 2009

Certified byMs. Gargi Verma

Project Supervisor

Accepted byMs. Majula Jain

Professor and HeadDepartment of Management studies

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ACKNOWLEDGEMENT

Heartiest thanks to Dr. Manjula Jain (H.O.D, Department of Management Studies ,

IFTM, Moradabad) and other faculty members, librarian and all other staffs of my esteemed

institute for their time to time assistance.

I would like to thanks all the customers whom I met and they gave their valuable time to

answer my queries.

I express my heartfelt gratitude toward Ms. Gargi Verma (Project Supervisor) for giving

me the opportunity to do the Project Work and for providing me this learning experience in

this esteemed organization.

Lastly I would express my sincere thanks to all respondents for their cooperation. I am

extremely obliged and highly thankful all those who have contributed to completion of this

project.

Arun Kumar

MBA III Semester

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CONTENTS

ACKNOWLEDGEMENT

INTRODUCTION

SCOPE OF THE STUDY

INDUSTRY PROFILE

COMPANY PROFILE

PRODUCT PROFILE

RESEARCH METHODOLOGY

FINDINGS & ANALYSIS

CONCLUSIONS

SUGGESTIONS

LIMITATIONS

BIBLIOGRAPHY

ANNEXURE

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INTRODUCTION

What Is Insurance and How Does It Fit Into My Plan?

Insurance is the cheapest and most immediate way for a person to displace risks that are too

great to assume individually. I can afford the doctor for an annual check-up, but what if I need

an MRI and surgery? By paying a smaller amount up front, I am moving the responsibility

from my shoulders to a large organization.

When you displace that risk with a large group of others, you are pooling your risk with your

neighbor. The insurance company is a large organization charged with administering that

group of risks in the unforeseen event that something happens to any individual in that pool.

There are all types of risks that we face on a day to day basis. Any of these risks can throw a

monkey wrench in our months and years of frugality, and ruin the spirit of getting rich slowly.

Some of the more concrete risks that we face are getting into a car accident or our house

burning down — known as property and casualty. Some risks are less tangible such as getting

sick, staying sick, and dying — known as life and health.

When I originally wrote J.D., I told him that I saw two potential problems that his readers

faced:

1. Throwing away good money on insurance when your cash flow is better spent in other

areas. This basically means that if you are struggling to make ends meet on a $19k

salary and drowning in credit card debt at the rate of 21%, your first priority should not

be picking out permanent life insurance.

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2. Being unprepared for a catastrophic event which could have been easily displaced.

Someone in my neighborhood died last month. When my wife and I took the casserole

over to his family, I offered to help his wife with the insurance claims forms if she

couldn’t contact her agent. Come to find out her late husband had two kids, a business

with 12 employees to run and no life insurance.

The aim of all insurance is to compensate the owner against loss arising from a variety of

risks, which he anticipates, to his life, property and business. Insurance is mainly of two types:

Life insurance and general insurance. General insurance means Fire, Marine and

Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee,

insurance for employer’s liability, and insurance of motor vehicles, livestock and crops.

The Insurance Act. 1972 and the General Insurance Business (Nationalisation) Act, 1972

govern Fire and Marine Insurance, while the Indian Marine Insurance At, 1963 governs

marline insurance in our country. These laws contain provisions relating to the constitution,

management and winding up of insurance companies and the conduct of insurance business of

all types. Al insurance business in India has been nationalized.

A contract of insurance is a contract by which one party undertakes to make good the loss of

another, in consideration of a sum of money, on the happening of a specified event, e.g. fire

accident or death. Law recognizes insurance as a system of sharing risk too great to be borne

by one individual

Insurance is an oft-misunderstood financial tool. I feel like it’s my responsibility to help folks

out with their questions when I can. Don’t get me wrong, I don’t think I’m the patron saint of

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insurance, but I do think the world would be a slightly better place if I could help people save

money, improve their coverage, or understand their coverage better.

A quick note: I am not giving out tax or legal advice, and you shouldn’t think I am. The

advice I have to offer through this site is generic only because the audience is so diverse. If

you have specific questions, you should consult a financial planner or insurance specialist.

What Steps Should I Take?

Many people have inadequate insurance protection because they don’t know where to begin.

Don’t be frightened. Here are some easy ways to get started:

Figure out what your risks are. Do you have adequate life insurance? Have

construction costs doubled since you last reviewed your homeowner’s policy?

Prioritize the list. Once you have figured out where your exposures to risk are, put

them in order by doing some research. You are more likely to get sick during your

working years than you are to die during the same period, so take care of that first.

Always get more than one expert opinion. Everyone who has an opinion projects the

biases of their background in their words. I don’t care if it’s your father, your

insurance agent of 15 years, or me. Make sure that the advice really rings true to you

and makes sense in your situation. Talking with at least two experts in the field will get

an informed opinion from at least two perspectives.

Use some common sense. If it costs too much to insure your Mustang, maybe it’s time

to sell your baby. If you have a cash surplus of $10k, maybe you should increase the

deductible on your health insurance to reduce premiums.

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Every asset has a value for its owner and also for those who are benefited with the existence

of that asset. Insurance is concerned with the protection of economic value of assets.

All of us are interested in the creation of assets because:

1. All assets have values .

2. They yield income to the owner.

3. They meet some other needs of the owner.

4. They may provide satisfaction of some needs and also yield income to the owner.

Purpose and need for insurance:-

Assets are likely to be destroyed or made non-functional due to accidental occurrences

called perils. Assets can, therefore, be insured. A few examples of perils are: fire,

floods, breakdowns, lightning, and earthquake. Perils are the events. Risks are the

consequential losses or damages.

Possibility of damage to asset caused by any peril is the risk that asset is exposed to.

Risk means uncertainty or unpredictability about future loss or damage, which may or

may not happen. This refers to the losses, which may happen suddenly and

unexpectedly.

This is because of uncertainty about the risk that insurance plays the role.

Insurance becomes relevant only if there are uncertainties of occurrence of event

leading to loss/es. Insurance is done against the contingency of the happening of such

events.

No uncertainty – No insurance.

Insurance as a social security tool:-

United Nations Declaration of human rights 1948 provides :

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“Every one has a right to a standard of living adequate for health and well-being of

himself and his family, including food, clothing, housing and medical care and

necessary social services and the right to security in the event of unemployment,

sickness, disability, widowhood, or other lack of livelihood in circumstances beyond

his control.”

Where the breadwinner of a family dies, family’s income stops to that extent affecting

the economic condition.

Life insurance helps in restoration of the adverse economic condition thus caused.

Thus life insurance business is complementary to the State’s efforts in social

management.

Social security is now a growing concern for all countries; however, the provisions

made in this field vary from country to country.

In India, Article 41 of our Constitution requires the State (within limits of its economic

capacity and development) to make effective provision for securing right to work, to

education and to provide MAX NEW YORK LIFE INSURANCE assistance in case

of unemployment, old age, sickness and disablement.

Parts of the obligations under Article 41 are met by the State through the mechanism

of Life Insurance.

Some social security schemes have been made by the State for economically weaker

sections of the society. MAX NEW YORK LIFE INSURANCE has been directed to

create funds for such schemes.

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Role of insurance in economic development:-

Investments are necessary for economic development.

Life insurance plays a major role in mobilization of MAX NEW YORK LIFE

INSURANCE savings.

Savings out of life insurance fund are utilized in investments for economic growth.

In the absence of insurance cover against fire and engineering risks, business, industry

and trade would be seriously handicapped.

Advantages of life insurance:-

Secured targeted savings – a uniqueness

Life insurance is not merely an investment or a saving device-much more than that.

In any other investment or saving avenue, like bank deposits, savings certificates or

mutual funds or shares and stocks etc., amount of funds available at any time will not

be more than the amount saved, appreciation or interest earned till then. In life

insurance, the amount available is the one that one wished to have at end of the savings

period which may range up to 30 or even more years.

Life insurance has advantages over the other forms of savings:

Facility of nomination and assignment makes the claim settlement easy on

death.

Life insurance involves compulsory savings.

Tax benefits – on premium paid as well as the amount received by way of

claim.

(specified MAX NEW YORK LIFE INSURANCE) Protected against court

attachments.

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SCOPE OF THE STUDY

This research report is being presented in such a way that on every step of the report the

objective of the study remains in the tune. The very emphasis is going to be paid on the scope

and the importance of the study. Insurance may be said as the assurance against the risk. The

Indian insurance industry is growing with a new pace as the multinational organizations like

MAX NEW YORK LIFE INSURANCE as the joint venture with the MAX NEW YORK

LIFE INSURANCE in the life insurance business and Iffco-Tokyo life and non-life business

respectively. The research focuses the attention on the facts that are going to be more crucial

for the Indian insurance industry- MAX NEW YORK LIFE INSURANCE.

Since the India is the second largely populous country in the world that means in the India

there are a number of the potential customers for the insurance business. The research report

summaries all those facts and figures that are of the immense importance for the readers.

The report consists the challenges and the prospects in the life insurance MAX NEW YORK

Life Insurance Company.

In 2003, the Indian insurance market ranked 19th globally and was the fifth largest in Asia.

Although it accounts for only 2.5% of premiums in Asia, it has the potential to become one of

the biggest insurance markets in the region. A combination of factors underpins further strong

growth in the market, including sound economic fundamentals, rising household wealth and a

further improvement in the regulatory framework.

The insurance industry in India has come a long way since the time when businesses were

tightly regulated and concentrated in the hands of a few MAX NEW YORK LIFE 11

INSURANCE sector insurers. Following the passage of the Insurance Regulatory and

Development Authority Act in 1999, India abandoned MAX NEW YORK LIFE

INSURANCE sector exclusivity in the insurance industry in favour of market-driven

competition. This shift has brought about major changes to the industry. The inauguration of a

new era of insurance development has seen the entry of international insurers, the proliferation

of innovative products and distribution channels, and the raising of supervisory standards.

Insurance development and potential

Notwithstanding the rapid growth of the sector over the last decade, insurance in India

remains at an early stage of development. At the end of 2003, the Indian insurance market (in

terms of premium volume) was the 19th largest in the world, only slightly bigger than that of

Denmark and comparable to that of Ireland.2 This was despite India being the second most

populous country in the world as well as the 12th largest economy. Yet, there are strong

arguments in favour of sustained rapid insurance business growth in the coming years,

including India’s robust economic growth prospects and the nation’s high savings rates

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INDUSTRY PROFILE

Max New York is UK’s largest and the world’s fifth largest insurance Group. It is one of the

leading providers of life and pensions products to Europe and has substantial businesses

elsewhere around the world. With a history dating back to 1696, Max New York has a 40

million-customer base worldwide. It has more than £364 billion of assets under management.

In India, Max New York has a long history dating back to 1834. At the time of nationalisation

it was the largest foreign insurer in India in terms of the compensation paid by the

Government of India. Max New York was also the first foreign insurance company in India to

set up its representative office in 1995.

In India, Max New York has a joint venture with Dabur, one of India's oldest, and largest

Group of companies. A professionally managed company, Dabur is the country's leading

producer of traditional healthcare products.

In accordance with the government regulations Max New York holds a 26 per cent stake in

the joint venture and the Dabur group holds the balance 74 per cent share.

With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), Max New York

has initiated an innovative and differentiated sales approach to the business. Through the

“Financial Health Check” (FHC) Max New York’s sales force has been able to establish its

credibility in the market. The FHC is a free service administered by the FPAs for a need-based

analysis of the customer’s long-term savings and insurance needs. Depending on the life stage

and earnings of the customer, the FHC assesses and recommends the right insurance product

for them.

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Max New York pioneered the concept of Banc assurance in India, and has leveraged its global

expertise in Banc assurance successfully in India. Currently, Max New York has Banc

assurance tie-ups with ABN Amro Bank, American Express Bank, IndusInd Bank, Centurion

Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks

in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra nks. Pradesh and

Maharashtra and regional Bank When Max New York entered the market, most companies

were offering traditional life products. Max New York started by offering the more modern

Unit Linked and Unitised With Profit products to the customers, creating a unique

differentiation. Max New York’s products have been designed in a manner to provide

customers flexibility, transparency and value for money. It has been among the first

companies to introduce the more modern Unit Linked products in the market. Its products

include: whole life (LifeLong), endowment (Lifesaver, Easy Life Plus, Lifesaver Plus), child

policy (Young Achiever, Save Guard Junior, Max New York Little Master) single premium

(Life Bond and Life Bond Plus), Pension (Pension Plus), Term (Life Shield), fixed term

protection plan (Freedom Life Plan) and a tax efficient investment plan with limited premium

payment term (LifeBond5). Max New York products are modern and contemporary unitised

products that offer unique customer benefits like flexibility to choose cover levels, indexation

and partial withdrawals.

Max New York’s Fund management operation is one of its key differentiators. Operating from

Mumbai, Max New York has an experienced team of fund managers and the range of fund

options includes Unitised With-Profits Fund and seven Unit Linked funds: - Protector Fund,

Secure Fund, Balanced Fund, Growth Fund, Enhancer Fund, Index Fund and Bond Fund.

Max New York has 193 Branches in India (including rural branches) supporting its

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distribution network. Through its Banc assurance partner locations, Max New York products

are available in more than 2,795 locations across India.

Max New York is also keen to reach out to the underprivileged that have not had access to

insurance so far. Through its association with Basic (a micro financial institution) and other

NGOs, it has been able to reach the weaker sections of the society and provide life insurance

to them.

Max New York has been felicitated with the "Bronze Award for Excellence in People

Management" by Grow Talent Company Limited and Business world. This honour is given to

Max New York based on the ranks received in top 25 lists of the Great Place to Work India

studies conducted in the last four years. Max New York was ranked 12th in 2004, 14th in

2005 and 13th in the year 2006.

The story of insurance is probably as old as the story of mankind. The same instinct that

prompts modern businessmen today to secure themselves against loss and disaster existed in

primitive men also. They too sought to avert the evil consequences of fire and flood and loss

of life and were willing to make some sort of sacrifice in order to achieve security. Though the

concept of insurance is largely a development of the recent past, particularly after the

industrial era – past few centuries – yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life

Insurance Company started by Europeans in Calcutta was the first life insurance company on

Indian Soil. All the insurance companies established during that period were brought up with

the purpose of looking after the needs of European community and Indian natives were not

being insured by these companies. However, later with the efforts of eminent people like Babu

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Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian

lives were being treated as sub-standard lives and heavy extra premiums were being charged

on them.

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

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started

functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started

its business.

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 MAX NEW YORK LIFE INSURANCE

1956: 245 Indian and foreign insurers and provident societies are taken over by the central

government and MAX NEW YORK LIFE INSURANCE formed by an Act of Parliament,

viz. MAX NEW YORK LIFE INSURANCE Act, 1956, with a capital contribution of Rs. 5

crore from the Government of India.

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The General insurance business in India, on the other hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the year 1850 in

Calcutta by the British.

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

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of

general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code

of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins

and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) 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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1. REGULATION OF THE INSURANCE BUSINESS

Regulation of insurance companies began with the Indian Life Assurance Companies Act,

1912. In 1938, all insurance companies were brought under regulation when a new Insurance

Act was passed. It covered both life and non-life insurance companies. It clearly defined what

would come under life and non-life insurance business.

The Act also covered, among others, deposits, supervision of insurance companies,

investments, commissions of agents and directors appointed by the MAX NEW YORK LIFE

INSURANCE holders This piece of legislation lost significance after the insurance business

was nationalized in 1956 (life) and 1972 (non-life), respectively.

When the market was opened again to private participation in 1999, the earlier Insurance Act

of 1938 was reinstated as the backbone of the current legislation of insurance companies, as

the IRDA Act of 1999 was superimposed on the 1938 Insurance Act. By mid-2004, there were

21 private sector insurance companies operating in India, alongside eight MAX NEW YORK

LIFE INSURANCE sector companies. Of these, there were 14 life insurance companies

comprising one MAX NEW YORK LIFE INSURANCE (the old monopoly) and 13 private

companies. Most private companies had foreign participation up to the permissible limit of

26% of equity.

2. A BRIEF HISTORY

The business of insurance started with marine business. Traders, who used to gather in

Lloyd’s coffee house in London, agreed to share the losses to their goods while being carried

by ships. The losses used to occur because of the pirates who robbed on the high seas or

because of bad weather spoiling the goods or sinking the ships. The first insurance Policy was

issued in1583 in England. In India insurance began in 1870 with life insurance being

transacted by an English company, “The European and the Albert”.

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The first Indian insurance company was the Bombay mutual Insurance Society Ltd, formed in

1870. This was followed by the Oriental Life Assurance Company in 1874, the Bharat in 1896

and the Empire of India in 1897.

Later the Hindustan Cooperative was formed in Calcutta, the united India in Madras, the

Bombay Life in the Bombay, the National in Calcutta, the New India in Bombay, the Jupiter

in Bombay and the Lakshmi in the New Delhi. These were all Indian companies, started as the

result of the swadeshi movement in the early 1900s. by the year 1956, when the life insurance

business was nationalized and the Life Insurance Corporation of India was formed on 1st

September 1956, there were 170 companies and 70 provident fund societies transacting life

insurance business in India.

After the amendments to the relevant laws in 1999, the MAX NEW YORK LIFE

INSURANCE did not have the exclusive privilege of doing life insurance business in India.

By 31.3.2002, eleven new insurers had been registered and had begun to transact life

insurance business in India.

The business of insurance is related to the protection of the economic values and the assets.

Every asset has a value. The asset is valuable to the owner, because the owner expects to get

some benefits from it.

The benefit may be an income or something else. It is a benefit because it meets some of his

needs, in the factory or cow, the product generated is sold and income is generated. In case of

a motor car, it provides comfort and convenience in transportation. There is no direct income.

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Companies at present scenario:-

Bajaj Allianz

Bajaj Auto Ltd.

Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj

Trading Corporation. Initially it started by assembling two and three wheelers in collaboration

with Piaggio of Italy. After the expiry of the agreement in 1971 the two and three wheelers

acquired the brand name of Bajaj. The strength of the company lies in its strong brand image

and ability to offer value for money products leveraging on its large-scale operations.

Bajaj is one of India's largest two and three - wheeler manufacturer and the fourth largest

manufacturer of two-wheeler in the world, with an annual turnover of Rs. 42.16 billion.

Allianz AG

Allianz group was founded in 1890 and is one of the world's leading insurance companies

with over 117 years' experience in insurance and related services. It is also the largest insurer

in Europe. Allianz group has multi-local structure and presence in over 70 countries. The key

business areas of Allianz group include General Insurance (property, engineering, marine,

motor, casualty and miscellaneous), Reinsurance, Risk Management, Life & health insurance,

Asset Management and Pension Funds Management.

Cornhill Insurance in the United Kingdom, Fireman's Fund in the United States of America,

AGF in France, RAS s.p.a in Italy, MMI in Australia are some companies under Allianz

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group. Rated 'AAA' by S&P it has assets over 670 billion DM (Rs. 17,160 billion) under its

management with employee strength of over 1, 05,700.

The Joint Venture

Bajaj Allianze Life Insurance Co. Ltd. Company is a joint venture between Allianze AG and

Bajaj Auto Limited. Characterized by global presence with a local focus and driven by

customer orientation to establish high earnings potential and financial strength, Bajaj Allianze

Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received the

Insurance Regulatory and Development Authority (IRDA) Certificate of Registration (R3) No

116 on 3rd August 2001 to conduct Life Insurance business in India.

MAX NEW YORK LIFE

Max New York Plc

Max New York Plc is the largest life and general insurance group of UK and the world's

seventh largest insurer with world wide premium income and retail investment sales of £28

billion and more than £200 billion in assets under management. Max New York Plc is the

holding company of Max New York group of companies which is in to life assurance

business, long term savings, all classes of general insurance business and fund management.

The group has 64,000 employees serving 25 million customers.

Dabur India Limited

Established in 1884, Dabur is one of India's oldest and largest group of companies with

interests in ayurvedic specialities, pharmaceuticals, personal care and healthcare products. The

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annual sales turnover of the group is over Rs. 1200 crores. For more than a century Dabur has

worked in active collaboration with nature to provide the best of herbal health and personal

care products to its consumers.

The Joint Venture

Max New York Life Insurance Company, a joint venture between Dabur India and CGU, a

wholly owned subsidiary of Max New York Plc, is capitalized at Rs. 110 crore. Mr. Stuart

Purdy is the managing director of Max New York Life.

Max New York Life has tied up with ABN Amro, Canara Bank, Laxmi Vilas Bank and

American Express for distribution of its products

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OTHER INSURANCE COMPANY

HDFC Standard Life Insurance Company Limited

HDFC

Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the

largest residential mortgage finance institution in the country. The corporation has had a series

of share issues raising its capital to Rs. 119 crores. The net worth of the corporation as on

March 31, 2000 stood at Rs. 2,096 crores.

HDFC operates through 75 locations throughout the country with its Corporate Headquarters

in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service

associates in Kuwait, Oman and Qatar.

Standard Life

Standard Life is Europe's largest mutual life assurance company. Standard Life, which has

been in the life insurance business for the past 175 years, is a modern company surviving quite

a few changes since selling its first Policy in 1825. The company expanded in the 19th century

from its original Edinburgh premises, opening offices in other towns and acquiring other

similar businesses.

Standard Life currently has assets exeeding over £70 billion under its management and has the

distinction of being accorded "AAA" rating consequently for the past six years by Standard &

Poor.

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The Joint Venture

HDFC Standard Life Insurance Company Limited was one of the first companies to be

granted BAJAJ ALLIANZ by the IRDA to operate in life insurance sector. Each of the JV

player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by both

CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and

Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset

base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC

is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a

stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.

ICICI Prudential Life Insurance Company

ICICI

ICICI Ltd., was established in 1955 by the World Bank, the Government of India and the

Indian Industry, to promote industrial development of India by providing project and

corporate finance to Indian industry.

. Since inception, ICICI has grown from a development bank to a financial conglomerate and

has become one of the largest BAJAJ ALLIANZ financial institutions in India. ICICI has thus

far financed all the major sectors of the economy, covering 6,848 companies and 16,851

projects. As of March 31, 2000, ICICI had disbursed a total of Rs. 1,13,070 crores, since

inception

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Prudential plc.

Prudential plc. Was founded in 1848. Since then it has grown to become one of the largest

providers of a wide range of savings products for the individual including life insurance,

pensions, annuities, unit trusts and personal banking. It has a presence in over 15 countries,

and caters to the financial needs of over 10 million customers. It manages assets of over US$

259 billion (Rupees 11,39,600 crores approx.) as of December 31, 1999.

Prudential is the largest life insurance company in the United Kingdom (Source: S&P's UK

Life Financial Digest, 1998). Asia has always been an important region for Prudential and it

has had a presence in Asia for over 75 years. In fact Prudential's first overseas operation was

in India, way back in 1923 to establish Life and General Branch agencies.

The Joint Venture

ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The

authorized capital of the company is Rs.2300 Million. The paid up capital is Rs. 1900 Million.

The Company is a joint venture of ICICI (74%) and prudential plc UK (26%).

The Company was granted Certificate of Registration for carrying out Life Insurance business,

by the Insurance Regulatory and Development Authority on November 24, 2000. It

commenced commercial operations on December 19, 2000, becoming one of the first few

private sector players to enter the liberalized arena.

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ING Vysya Life Insurance Company Pvt Limited

About Vysya Bank

Vysya Bank is one of the most aggressive of the older-generation private-sector banks. With

the investment from a foreign partner, Bank Brussels Lamberts, in the equity of the bank, it is

expected to gear up to effectively fight competition in the new liberalized era. Vysya Bank is a

big player given its significant branch penetration. It has a very high degree of retail focus

with good customer service. The Vysya Bank is one of the largest private banks in India with

around 2 million customers and 480 retail outlets.

About ING

ING Group, with an asset base of over Rs. 28,42,000 crore is a global financial institution of

Dutch origin, which is active in the field of banking, insurance and asset management in more

than 60 countries, with nearly 90,000 employees. ING comprises a broad spectrum of

prominent companies working close to the customer, many of them operating under their own

brand names.

ING Insurance

ING Insurance is the world’s second largest life insurance company as per latest Fortune

rankings with a client base of over 50 million since it acquired ReliaStar and Aetna Financial

Services earlier this year. It is the third largest financial services company in Europe and the

tenth largest financial services company in the World.

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The Joint Venture

ING has joined hands with Vysya Bank, one of India's leading private sector banks, to form

ING Vysya Life Insurance, which is expected to be the first Bank assurance venture in the

country. Together they have roped in GMR group, which has wide ranging interests in fields

such as power generation, infrastructure, manufacturing, software and banking.

As per the JV agreement, Vysya Bank would hold 49 per cent stake, ING 26 percent, and the

GMR Group would hold 25 per cent. The paid up capital of the joint venture is Rs. 110 crore.

The company which is headquartered at Bangalore has commenced its operations at Mumbai

and Delhi. Mr. Yvo Metzelaar is the Chief Executive Officer cum Managing Director of ING

Vysya Life Insurance.

Life Insurance Corporation of India

Life Insurance Corporation of India has been established by an act of the Parliament and

started functioning from 1-9-1956. It is an autonomous body authorized to run the life

insurance business in India with its Head Office at Mumbai.

It has 7 zonal offices, over 100 Divisional offices and 2048 branches in India, with around

6.51 lakh agents. The Corporation also has offices in London, Fiji and Mauritius.

The chairman of Life Insurance Corporation of India is Mr. S B Mathur

27

Max New York Life Insurance Company Limited

Max India Limited

Starting early 1999, Max has refocused itself into building a company based on the knowledge

platform that India represents. Today, Max is building businesses in the emerging knowledge-

based areas of Healthcare, Financial Services and Information Technology. It has grown

independently on its own and by joining hands in partnerships with major international

companies where specific business opportunities are best addressed through joint ventures.

Max India has a significant presence in the most vital & fast growing sectors of the Indian

Economy, Telecommunication services, Electronic components distribution, Speciality Plastic

Films and Bulk Pharmaceuticals. These diversified businesses are organized as Max India's

100% owned Business Units (BU) and equity sharing Joint Ventures (JV). Each of the BUs &

JVs, fully empowered to lead their operations, have grown and obtained leadership position in

their respective industries by providing high quality products and services, working closely

with their customers.

New York Life International Inc.

In 1998 New York Life International Inc., a Fortune 100 company, had total revenues

amounting to almost US $ 20 billion, and was rated the number one provider of new life

insurance poBAJAJ ALLIANZies in the United States. In the same year, New York Life was

also the leader in insurance sales to the growing Indian community in the Unites States.

28

The Joint Venture

Max New York Life is a partnership between Max India Limited, one of India's leading multi-

business corporations and New York Life, a Fortune 100 company.

The paid-up capital of the Joint Venture is Rs. 250 crores and the CEO and Managing Director

of Max New York Life Insurance Company is Mr. Anuroop 'Tony' Singh.

MetLife India Insurance Company Ltd.

Metropolitan Life

MetLife India proudly carries a 135 year old legacy of helping build financial freedom for

every one. .

Metropolitan Life Insurance Company ("MetLife"), a subsidiary of MetLife, Inc. (NYSE:

MET), is a leading provider of insurance and other financial services to individual and

institutional customers. The MetLife Companies serve approximately 12 million individuals in

the U.S. and companies and institutions with 33 million employees and members, including

88 of the Fortune 100 companies. MetLife also has, through its subsidiaries and affiliates,

international insurance operations in 12 countries. For more information about MetLife, please

visit the company's web site at www.metlife.com.

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The Joint Venture

MetLife India Insurance Company Private Limited ("MetLife India") is the Indian affiliate of

Metropolitan Life Insurance Company ("MetLife"), the number one life insurer in the U.S,

based on approximately US$ 2.4 trillion in life insurance in-force as of December 31, 2002.

MetLife India was incorporated in April 2001 as a joint venture between MetLife International

Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other

private investors.

MetLife India benefits from its affiliated company's 135-year old expertise and track record of

establishing successful operations in emerging markets, in addition to the unique strengths of

its Indian promoters. MetLife India offers a range of innovative products and aims to build

financial freedom for everyone. MetLife India is headquartered in Bangalore and has offices

in 9 cities and an additional 1,000 outreach points through its distribution channel partners.

For more information about MetLife India, please visit the company's web site at

www.metlifeindia.com.

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OM Kotak Mahindra Life Insurance

Kotak Mahindra Bank Ltd.(KMBL)

Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak

Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited

on November 2, 1985 and obtained its ‘Certificate of Commencement of Business on

February 11, 1986.

With the liberalization of the Indian economy and the opening up of the financial markets, the

Company diversified and started offering a wider spectrum of financial services.

Old Mutual plc.

Old Mutual plc. is a leading financial services provider in the world, providing a broad range

of financial services in the area of insurance, asset management and banking. It is a leading

life insurer in South Africa, with more than 30% market share. The partnership with Old

Mutual plc provides the Kotak Mahindra group with an international perspective and expertise

in the life insurance business.

The Joint Venture

The joint venture OM Kotak Mahindra Life Insurance started off with an initial net worth of

Rs. 150 crore, with 74:26 stake between KMBL and OM

The Life Insurance business offers KMBL with an opportunity to leverage its core strengths of

Wealth Management and Retail Distribution

31

SBI Life Insurance Company Ltd

SBI

State Bank of India (SBI) started its business way back in 1806 as Bank of Bengal. Today SBI

is the largest bank in the country with more than 9000 branches. It has seven associate banks

and together they have 30% of the Indian market share.

It has the distinction of being the strongest and amongst the most profitable bank in the

country. Net worth of SBI as on March 2000 stood at Rs. 12146 crore (US$ 2784 mn) and it

has a deposit base of Rs 19,680.3 crore (US$45,121mm).

The insurance venture, SBI-Life, is a step aimed at being a universal bank as it already has

subsidiaries for housing finance, merchant banking, mutual funds and primary dealership in

government papers and factoring businesses.

Cardiff

BNP Paribas, which is one among the three largest banks in Europe, is the holding company

of Cardiff. BNP's presence in India dates as far back as 1860 and has 9 branches here.

Cardiff, the insurance arm of BNP Paribas was set up in 1973 that specializes in long-term

savings, protection products and creditor insurance. In 1999 its premium income stood at US$

4 billion, with assets worth over US $ 23 billion under its management

Cardiff based in France, has the expertise for selling insurance products through banks and has

operations in over 20 countries.

32

Joint Venture

India's largest bank SBI and Cardiff S.A a leading insurer in France came together to form

SBI Life. It would be a 74:26 venture; with Cardiff the foreign partner contributing 26% in the

paid capital of Rs. 250 crore.

SBI would market the insurance products through select branches of SBI and its seven

associate banks. Mr. R. Krishnamurthy is the CEO of SBI Life.

Tata AIG Life Insurance Company Limited

TATA Group

Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover

exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over

years that it is a value driven company and has pioneering contributions in various fields

including insurance, aviation, iron and steel. Tata companies have forged a number of global

alliances with eminent international partners in several fields. In terms of capital market

performance as many as 40 listed Tata companies account for nearly 5% of the total market

capitalization of all listed companies. The Group has had a long association with India's

insurance sector having been the largest insurance company in India prior to the

nationalisation of insurance.

TATA Group in Insurance

The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., a group

company incorporated way back in 1919. Government of India took over the management of

33

this company as a part of nationalization of general insurance companies in 1972. Not deterred

by the move, Tata group have ventured into risk management services having tied up with

AIG group, back in 1977, with the incorporation of Tata AIG Risk Management Services Pvt.

Ltd.

AIG

American International Group, Inc is the leading U.S. based international insurance and

financial services organization and the largest underwriter of commercial and industrial

insurance in the United States. Its member companies write a wide range of commercial and

personal insurance products through a variety of distribution channels in over 130 countries

and jurisdictions throughout the world.

AIG's Life Insurance operations comprise of the most extensive worldwide network of any life

insurer. AIG's global businesses also include financial services and asset management,

including aircraft leasing, financial products, trading and market making, consumer finance,

institutional, retail and direct investment fund asset management, real estate investment

management, and retirement savings products.

The Joint Venture

Tata AIG Life Insurance Co. Ltd. is capitalized at Rs. 185 crores of which 74 per cent has

been brought in by Tata Sons and the American partner brings in the balance 26 per cent. Mr.

George Oommen has been named managing director of Tata AIG Life.

Tata-AIG plans to provide broad array of life insurance plans to cover to both individuals and

groups.

34

The Insurance Act, 1972 and the General Insurance Business (Nationalisation) Act,

1972 govern Fire and Marine Insurance, while the Indian Marine Insurance At, 1963

governs marine insurance in our country. These laws contain provisions relating to

the constitution, management and winding up of insurance companies and the

conduct of insurance business of all types. All insurance business in India has been

nationalized.

A Contract of insurance is a contract by which one party undertakes to make good the

loss of another, in consideration of a sum of money, on the happening of a specified

event, e.g. fire accident or death. Law recognises insurance as a system of sharing

risk Insurance is a huge business in the United States. As in the case of liability auto

insurance, some insurance is mandated by law and in most states you have to show

proof of insurance to obtain a license. Homeowner’s insurance is required from the

lending institution as a condition of obtaining a home mortgage. Medical insurance is

necessary to reduce the financial impact of uncontrollable events. Life insurance

provides financial security to love ones in the event of death. Annuities are basic to

retirement planning. Business insurance protects against business interruptions and

asset losses. The list goes on and on.

Insurance has also become important to our national economy as well. The billions of

dollars of annual premiums paid into insurance companies are invested in a wide

range of investments to secure sufficient earnings to meet the contracted coverages.

In fact, the insurance industry is reported to be second only to the commercial

banking industry as a source of investment funds.

35

To the average untrained person, insurance as a whole is mind boggling and, since it

involves your dollars, it is often scary. There’s no other way to put it. Insurance can

be scary. There are so many choices for your money and so many people chasing

after it that often times it is difficult to decide the best option for you to take. And talk

about options! Life insurance, annuities, variable products, continued care insurance,

etc., are all voluntary options. You don’t have to invest in any of these but you want

to for a myriad of reasons. Security for those you love, better return on the

investment, less risk, retirement, fear of old age, etc., are all good reasons to look at a

vehicle to provide those results. Insurance can provide for those reasons but it’s not

free. It’s scary!

Through-out most peoples lives they will have to make some sort of decision relating

to these options and will need to make these decisions again and again. New and

better insurance products, interest rate changes, family changes, etc., will cause you

to relook at your position many times. You want to do the right thing each time but,

indeed, it is scary!

From a purely financial perspective, both personal and business, insurance plays a

very important role in preserving those hard earned dollars you have tried so hard to

accumulate and you need to make the best choice possible with each of those dollars.

Our purpose is to give you some insight into this voluntary sector of insurance. We

will not attempt to discuss auto insurance, mortgage insurance, or other similar

insurance purposes. Similarly, we will not attempt to guide you into one product over

another or suggest that you trade in your certificate of deposit for an insurance

36

product. Our purpose is to inform you of the various products so you can make an

informed decision when the time comes.

At some time you may be asked to exchange one life insurance product for another.

Insurance is a constantly evolving industry and there are many new products on the

market from when you may have entered into your current policy and you may be

shown what appears on the surface to be a better deal. Is it a better deal? Should you

exchange your old policy for a new one? That is difficult to say without a thorough

review of both your old policy and the new policy but particularly your old policy.

The National Association of Securities Dealers has a very good discussion “…to help

you evaluate whether the exchange is right for you, and how you can find out what

you need to know to make an appropriate decision.”

This material contains only general descriptions and is not a solicitation to sell any

insurance product or security, nor is it intended as any financial or tax advice. For

information about specific insurance needs or situations, contract your insurance

agent. Our articles are intended to assist in educating you about insurance generally

and not to provide personal service. They may not take into account your personal

characteristics such as budget, assets, risk tolerance, family situation or activities

which may affect the type of insurance that would be right for you. In addition, state

insurance laws and insurance underwriting rules may affect available coverage and its

costs. If you need more information or would like personal advice you should consult

an insurance professional. You may also visit your state’s insurance department for

more information. too great to be borne by one individual

37

The options for purchasing Insurance are plentiful with choices ranging from

choosing the Insurance Company, searching for an agent, deciding on the deductible,

amount of coverage, beneficiaries and dependent coverage. Once you have a child the

offers start pouring in on insuring your new arrival. Does the child need a policy or

can he or she be added to an existing policy?

For couples planning on marrying they need to decide which Employer offers the best

coverage. When you merge your belongings into one household as cohabitants the

need for a renter’s policy, if one is not already in place, becomes an issue. When

settling into your new residence immediately start photographing the big-ticket items,

and create a notebook recording the model and serial numbers. I prefer Analysis Pads

that have columns for easy record keeping. You can also keep this data on the

owner’s manual with all manuals in one location for easy access.

Several months ago my home was burglarized. I received from the Police a Victim’s

Supplemental Property Loss Report. The categories on this report include quantity,

article, serial number, brand, model number, miscellaneous description – color, size,

etc. and fair dollar value. I have been renting for seven years a house that is a duplex

and was not insured. I now have Renter’s and Earthquake Insurance.

I learned while serving on a jury this summer that a robbery occurs with force while a

burglary is the unlawful entry of premises. It was alarming to learn the number of

members on the jury panel that answered yes to being a victim of a crime. Not one of

these crimes ended with the capture of the culprit. This is another reason why

insuring one’s property is a must in this day and age.

38

When a family member turns 15 or 16 in most states they are eager to obtain a

driver’s license or student permit. A few months before this event takes place the

family needs to look over their automobile policy and make changes to the coverage

to cover the additional driver in their household.

On some policies when a child turns the legal age of eighteen they may no longer

qualify to be on their parent’s insurance policy. If the graduate is going onto college

the health and auto policies need to be consulted to determine coverage options.

With many Insurance companies you have the option of paying the entire premium

in one payment, or make monthly payments. You can have the payments deducted

from your checking account or pay at your agent’s office, mail in a check to the

company or use their automated telephone system and perhaps even pay online.

There are choices galore in determining your Insurance options. Bellaonline’s

Insurance Site will help guide you in the right direction to take care of all your

Insurance needs. Topics covered will include:

None of us know what is going to happen to us in the future but what we do know is

that accidents happen. This is the simple idea that the insurance industry is founded

on. You never know when you might crash your car or come home to find someone

has broken into your home. But what you can do is protect yourself financially

against something going wrong at some point in the future. This protection is what we

call insurance.

39

Insurance can seem complicated but the basic principles are really quite

straightforward.

An insurance company works out how likely it is that an accident or event will

happen and what it would cost to put it right.

Based on this, the insurance company sets what is know as a premium. This is

the amount it asks you to pay in order to protect yourself against the accident

or event. The cost of the premium is often spread so you pay it on a monthly

basis.

If whatever it is you have insured yourself against happens, you then make a

claim to your insurance company and it pays out the agreed amount.

40

COMPANY PROFILE

INTRODUCTION OF MAX NEW YORK

MAX NEW YORK - THE SOLUTION OF LIFE

Max New York is not only a leading company in the unit-linked life insurance market. The Max

New York brand also represents a new philosophy of customer service, responsibility to the

environment, employees and other global aspects affecting all of us.

Max New York means -

LIFE

VITALITY

SUCCESS

Max New York Life Insurance Company Ltd. is a joint venture between Max India

Limited, one of India's leading multi-business corporations and New York Life International,

the international arm of New York Life, a Fortune 100 company. 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.

41

Incorporated in 2000, Max New York Life started commercial operation in 2001. In line with

its values of financial responsibility, Max New York Life has adopted prudent financial

practices to ensure safety of policyholder's funds. The Company's paid up capital as on 30th

April, 2009 is Rs 1782 crore.

Max New York Life has multi-channel distribution spread across the country. Agency

distribution is the primary channel complemented by partnership distribution, bancassurance,

alliance marketing and dedicated distribution for emerging markets. The Company places a lot

of emphasis on its selection process for agent advisors, 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. The company currently has

around 92,667 agent advisors at 712 offices across 389 cities. The company also has 36

referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships

each. Max New York Life has put in place a unique hub and spoke model of distribution to

deepen our rural penetration. This is the first time such a model has been put in place for rural

marketing of insurance. The company has 137 offices dedicated to rural areas.

Max New York Life offers a suite of flexible products. It now has 37 products covering both

life and health insurance and 8 riders that can be customized to over 800 combinations

enabling customers to choose the policy that best fits their need. Besides this, the company

offers 6 products and 7 riders in group insurance business.

Max New York is a world leader in financial services. With more than 300 years’ of history,

Max New York is now the world’s fifth largest insurer and the largest in the UK. Our main

activities are long-term savings, fund management and general insurance. It has premium

42

income and investment sales from continuing operations of about £30 billion and over £240

billion of assets under management.

Max New York became the new name for the former CGNU in July 2002. The change

represented part of the group’s planned journey towards being recognized as a world-class

financial services provider.

Today the Max New York brand is alive and trading in more than 20 countries with Max New

York now the world’s fifth-largest insurance group (based on gross worldwide premiums for

the year ended 31 December 2005).

Max New York is 14th in the “Great Places to Work” survey in 2004 and ranked highest

among insurance companies, making it the best insurer to work for in India. This is the third

year that Max New York Life Insurance remains the top 25 “great place to work” in a survey

of more than 200 companies administered by Grow Talent Company Ltd. along with Great

Places to Work® Institute, Inc. and Business World magazine.

Max New York India has created through the active contribution of its employees. These lines

not only define the way we live and work but also serve as a reminder to deliver the best to

our customers, shareholders, colleagues, partners & employees at all times.

Embedded in this vision are the core values of Integrity, Customer centricity, Passion for

winning, Innovation and Empowered team that we have collectively defined and committed to

working towards Max New York has been operating in Asia since 1880 and we are dedicated

to the provision of long-term savings products and investments, with the commitment to serve

our customer in trust.

43

Max New York operating in the key markets of Singapore, India, Hong Kong and China, our

vision is to become the leading provider of financial services differentiated by our multi-

distribution strategy across these chosen markets.

Most private life insurance companies launched traditional products in India, very similar to

those offer by MAX NEW YORK LIFE INSURANCE. Max New York, however, took a

different approach and was among the first private insurers in the country to introduce Unit

Linked products in the market, offering its customers value for money products that are

modern, flexible and transparent. Max New York launched a life insurance and long-term

savings joint venture in June 2002 with Dabur Group, 1 of India’s oldest and most respected

business houses. We are now among the top 12 life insurers in the Indian market.

A unit linked product fund is a form of pooled investment where you purchase units.

Premiums usually invested as units in stock market funds. The value of the Policy goes up &

down in line with the performance of the particular fund




million-customer base worldwide. It has more than £364 billion of assets under management.

In India, Max New York has a long history dating back to 1834. At the time of nationalisation

it was the largest foreign insurer in India in terms of the compensation paid by the

Government of India. Max New York was also the first foreign insurance company in India to

set up its representative office in 1995.

44

In India, Max New York has a joint venture with Dabur, one of India's oldest, and largest

Group of companies. A professionally managed company, Dabur is the country's leading

producer of traditional healthcare products.

In accordance with the government regulations Max New York holds a 26 per cent stake in

the joint venture and the Dabur group holds the balance 74 per cent share.

With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), Max New York

has initiated an innovative and differentiated sales approach to the business. Through the

“Financial Health Check” (FHC) Max New York’s sales force has been able to establish its

credibility in the market. The FHC is a free service administered by the FPAs for a need-based

analysis of the customer’s long-term savings and insurance needs. Depending on the life stage

and earnings of the customer, the FHC assesses and recommends the right insurance product

for them.

Max New York pioneered the concept of Banc assurance in India, and has leveraged its global

expertise in Banc assurance successfully in India. Currently, Max New York has Banc

assurance tie-ups with ABN Amro Bank, American Express Bank, IndusInd Bank, Centurion

Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks

in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and

Maharashtra and regional Banks When Max New York entered the market, most companies

were offering traditional life products. Max New York started by offering the more modern

Unit Linked and Unitised With Profit products to the customers, creating a unique

differentiation. Max New York’s products have been designed in a manner to provide

customers flexibility, transparency and value for money. It has been among the first

45

companies to introduce the more modern Unit Linked products in the market. Its products

include: whole life (LifeLong), endowment (Lifesaver, Easy Life Plus, Lifesaver Plus), child

policy (Young Achiever, Safeguard Junior, Max New York Little Master) single premium

(Life Bond and Life Bond Plus), Pension (Pension Plus), Term (Life Shield), fixed term

protection plan (Freedom Life Plan) and a tax efficient investment plan with limited premium

payment term (LifeBond5). Max New York products are modern and contemporary unitised

products that offer unique customer benefits like flexibility to choose cover levels, indexation

and partial withdrawals.

Max New York’s Fund management operation is one of its key differentiators. Operating from

Mumbai, Max New York has an experienced team of fund managers and the range of fund

options includes Unitised With-Profits Fund and seven Unit Linked funds: - Protector Fund,

Secure Fund, Balanced Fund, Growth Fund, Enhancer Fund, Index Fund and Bond Fund.


distribution network. Through its Banc assurance partner locations, Max New York products

are available in more than 2,795 locations across India.

rior to the appointment, Sud was serving as Max New York Life Insurance's Deputy

Managing Director. Gary Bennett, who served as Chief Executive Officer and Managing

Director of the company since July 2005, has been named Executive Vice President and

Greater China Chief Executive Officer of New York Life International, LLC, effective

immediately.

In a related announcement, Rajit Mehta, Max New York Life's Deputy Chief Operating

Officer has been appointed as the Chief Operating Officer of the joint venture, also pending

regulatory approval.

46

Analjit Singh, Chairman Max New York Life Insurance, commented: "Rajesh and Rajit's

appointments are part of an orderly management transition that has been planned for some

time. We are confident that this new leadership team will build on the solid foundation that is

in place as we continue our journey of becoming the most admired life insurance company in

India with the most professional, most highly trained agency sales force in the country. We

thank Gary Bennett for all that he has done on behalf of Max New York Life and wish him the

very best in his new role."

"We are fortunate to have executives of Rajesh's caliber taking the helm at Max New York

Life Insurance," added Singh. "Rajesh has made a significant impact implementing business

strategies that have contributed to the rapid growth of our life insurance business, steering the

overall distribution network, and contributing greatly to the company's product management

and marketing efforts." Singh continued, "Rajit has played an equally important role for Max

New York Life, helping make Max New York Life's human resources and talent development

the strategic differentiator that it is today, as well as adding significant value to the company's

sales, operations and customer service functions."

"We're very pleased to have individuals with the level of skill and accomplishment of Rajesh

and Rajit at Max New York Life Insurance," said Dick Mucci, Chairman and Chief Executive

Officer of New York Life International, LLC. "It's a testament to organizational depth of the

company that we are tapping two founding team members who have had major roles in

building the company into what it is today, one of India's premier life insurers, widely

recognized for its quality and innovation and for its role in making life insurance and

retirement savings a reality for tens of millions of low-income and underserved Indian

households."

47

Mucci added, "Gary played an important role in the tremendous growth and success of Max

New York Life Insurance and we are grateful to him for his many contributions. He did an

outstanding job leading Max New York Life, and in his prior post running New York Life's

Hong Kong operation, and I'm pleased he's accepted a new position within New York Life

International overseeing our large and attractive Greater China region."

Previously, as a member of the company's core management team, Sud was responsible for

steering the overall distribution network of the company and overseeing the product

management, marketing, corporate affairs and customer relationship management functions.

Prior to that he served as Executive Director - Distribution, and was the primary driver for

Max New York Life Insurance's distribution footprint across India, setting up alliances and an

agent-advisor network and model that was recognized as the "best in class." Mr. Sud earned

his Bachelor of Commerce and an MBA and in marketing and finance from Faculty of

Management Studies, Delhi University before completing his Advanced Management

Program from Wharton Business School, University of Pennsylvania, Philadelphia, USA.

Mehta is also a founding team member of the Max New York Life team. Prior to his role as

Deputy Chief Operating Officer, Rajit served as Max New York Life's Executive Director for

Human Resources, Training and Internal Communications where he was responsible for

strategic initiatives leading to the strengthening of the Max New York Life's human resource

management.

He has also made important contribution in development and implementation of Max Vijay,

the innovative business model that fulfills protection and savings needs of underserved

market. Prior to joining Max New York Life, he was Director - Personnel at Bank of America

and worked with HCL - Hewlett Packard. Mr. Mehta is management graduate and has

attended an Advanced Management Course at INSEAD, France.

48

The leading private life insurance company - Max New York Life Insurance Company Ltd.

has launched 'lifeline' - a health insurance product on Wednesday, 5th March 2008, across

India. Now, the company can boast of offering complete health and life insurance products

across ll regions in India. This newly launched health insurance product of Max New York

Life Insurance Company offers three groups of heath insurance solutions.

The Director Marketing Product Management and Corporate Affairs of Max New York Life

Insurance said that these three distinct heath insurance products are meant to cover

eventualities like hospitalization, surgery and critical illness of the insured. He points out that

these plans have been structured with features like coverage for a wide range of ailments, no

claim discount on revised premium for a healthy life, a fixed premium for a five-year term,

free second opinion from the best health care institutions of India on detection of illness.

Further, it also has provision for a free telephonic medical helpline across India.

The hospitalization - is covered by "Medicash plan", which is meant to provide a fixed amount

of cash benefit on a day-to-day basis during the entire period of hospitalization of the insured.

The Medicash plan would also cover expenses for admission in ICU, lump sum benefits

against an unlimited number of surgeries and recuperation benefits.

The second plan of the newly launched health insurance of Max New York Life Insurance, is

the "Wellness Plan", which is a more attractive one and covers 'critical illness' like cancer,

alzheimers, heart ailments, liver disease, deafness, permanent disability, etc. The Wellness

plan covers thirty eight critical illnesses, which is the highest number of illness covered under

one insurance plan in India by any insurance company.

The third health insurance policy of Max New York Life Insurance is a term plus health

protection plan known as "Safety Net". This provides coverage to the insured person for any

losses incurred by him/her in eventualities like critical illness, accident, disability and death.

49

With 21 lakh life insurance policies and with an assured sum of Rs 62,000 crores in its kitty

Max Life Insurance wishes to achieve business at least five percent higher than it did in the

last financial year. The company also announced that it would go for an expansion drive and

would also increase the number of branch offices in Tamil Nadu within the fiscal year 2008-

2009. Max New York Life Insurance Company is one of the fastest growing life insurance

companies in India and is the first life insurance company of India to be awarded with ISO

9001:2000 certification. This Rs 907.4 crores insurance company is one of the most respected

companies in India. After making strong inroads into the Indian life insurance market with a

strong product portfolio the company is expected to do well with its new product line in the

Indian health insurance sector as well.

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

International Inc., a Fortune 100 company and America's largest life insurance provider and

Max India Limited one of the leading multi-business corporations in India. Max New York

Life Insurance Co Ltd is a Rs. 250 crore joint venture with a paid up capital of Rs. 807

crore.The insurance agents employed at Max New York Life Insurance Co Ltd are trained in-

house with a rigorous training program of over 152 hrs, much higher than the standard 100 hrs

of mandatory training laid down by the IRDA. Around 345 Max New York Agent Advisors

qualified for Million Dollar Round table (MDRT) membership in 2006.

It is an internationally renowned congregation of world's top insurance agents. Max New York

Life brings to you specially customized products and services that are flexible and can e

customized to suit your needs. It now has 30 life insurance products and 8 riders that can be

customized to over 800 combinations enabling customers to choose the policy or plan that

best fits their need. These include:

50

Max New York is also keen to reach out to the underprivileged that have not had access to

insurance so far. Through its association with Basix (a micro financial institution) and other

NGOs, it has been able to reach the weaker sections of the society and provide life insurance

to them.

Max New York has been felicitated with the "Bronze Award for Excellence in People

Management" by Grow Talent Company Limited and Business world. This honour is given to

Max New York based on the ranks received in top 25 lists of the Great Place to Work India

studies conducted in the last four years. Max New York was ranked 12th in 2003, 14th in

2004 and 13th in the year 2005.

Max New York




million customer base worldwide. It has more than £377 billion of assets under management.

51

http://www.aviva.com/

Max New York India Management Team

Board Of Directors

Mr. Analjit Singh

Chairman,

Max New York Life Insurance

Mr. Anuroop (Tony) Singh

Vice Chairman,


Mr. Rajesh Sud

CEO & Managing Director,


Mr. Rajit Mehta

Executive Director & Chief Operating Officer,


Mr. William Beaty

Director,


Mr. Richard L. Mucci

Director,


Dr. Omkar Goswami

Director,


Mr. Rajesh Khanna

52

Director,


Ms. Marielle Theron

Director,


Management Team

Mr. Rajesh Sud

CEO & Managing Director,


Mr. Rajit Mehta

Executive Director & Chief Operating Officer


Mr. Anil Mehta

Sr. Director, New Business

SBU


Mr. Sunil Kakar

Sr. Director and Chief Financial Officer


Mr. Ajay Seth

Senior Director- Legal & Compliance


Mr. Debashis Sarkar

53

Senior Director & Chief Marketing Officer


Mr. John Poole

Chief Actuary


Mr. Prashant Tripathy

Executive Vice President- Strategic Planning and Business Development


Our Vision

Max New York - where exceeding expectations through innovative solutions is "our" way of life

This is the compelling vision that Max New York India has created through the active

contribution of its employees. These lines not only define the way we live and work but also

serve as a reminder to deliver the best to our customers, shareholders, colleagues, partners &

employees at all times.

Embedded in this vision are the core values of Integrity, Customer centricity, Passion for

winning, Innovation and Empowered team that we have collectively defined and committed to

working towards.

54

Achievements and Awards

Some of the Industry Firsts

First company to provide Freelook period of 15 days to the customer. This was later

made mandatory by the regulator

First company to start toll free line for agent services

First and the only life insurance company in India to implement Lean methodology of

service excellence in service industry

First life insurance company in India to provide various services to the agents and

customers over phone

First Indian life insurance company to start service center at the regional level

First life insurance company in India to be awarded ISO 9001:2000 certification

Awards

Outlook Money survey ranked MNYL No.1 in Slow, Medium and Quick fund

categories

BT Mercer – Ranked No7 in the “Best companies to Work For”

Awarded the Gallup Great Work Place Award 2009

CII – Exim Bank Commendation Certificate for Business Excellence – 2008

Recognized as a Superbrand

Recipient of 2008 CIO 100 Award for technology implementation

Golden Peacock Award for Innovation – 2008

Among the top 25 companies to work for in India, according to Businessworld 2003

‘Great Workplaces of India’

55

Among the top five most respected insurance companies in India as per Businessworld

2004 & 2006 survey

Won Indo-American Corporate Excellence Award for Best Indo-US company in

Financial Services Category in 2006

Received ‘Best Six Sigma Project’ award at Sakal Six Sigma Excellence Awards –

2006

Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by

Asia Insurance Review

Received the Amity Corporate Excellence Award – 2007

Received the ‘Outlook Money Award’ for being “among the best new insurers in the

country”.

First life insurance company to be awarded CII-Exim Bank Commendation Certificate for

Strong Commitment to Excel - 2008.

56

ORGANIZATION

SALES FORCE

The company currently has around 93,000 agent advisors and more than 800 own employed

sales force at 712offices across 389 cities. The company also has 36 referral tie-ups with banks,

24 partnership distribution and alliance marketing relationships each. Max New York Life has

put in place a unique hub and spoke model of distribution to deepen our rural penetration. This

is the first time such a model has been put in place for rural marketing of insurance. The

company has 133 offices dedicated to rural areas. Max New York Life invests significantly in

its training programme and each agent is trained for around 100 hours as opposed to the

mandatory 50 hours stipulated by the IRDA before beginning to sell in the marketplace.

Training is a continuous process for agents at Max New York Life and ensures development of

skills and knowledge through a structured programme spread over 400 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. 218 agent advisors have qualified for the Million Dollar Round Table

(MDRT) membership in 2008. MDRT is an exclusive congregation of the world’s top selling

insurance agents and is internationally recognized as the standard of excellence in the life

insurance business. Max New York Life offers a suite of flexible products. It now has 37

individual life and health insurance products and 8 riders that can be customised to over 800

combinations enabling customers to choose the policy that best fits their need. Besides this, the

company offers 6 products and 7 riders in group insurance business. The company currently

has more than 12000 employees. Vision- To become the most admired life insurance Company

in India.

57

PROMOTION STRATEGIES

Advertisement on television

Daily Query column in Financial Express News Paper

Through companies employees/advisors

Sponsor the film “VIRUDDH” (cast by Amitabh Bachhan etc.)

COME DEAR I WILL TAKE U TO THE SKY-MAX NEW YORK INDIA

FACT SHEET OF THE MAX NEW YORK


FACT SHEET – As of July 31st, 2009

Founded 2000

Started Operations April 2001

Headquarters New Delhi, India

World Wide Web Address http://www.maxnewyorklife.com

Chairman Analjit Singh

Managing Director & CEO Rajesh Sud

Paid-Up Capital Rs. 1,782 crore

Sum Assured Rs 1,03,500 crore

Number of Policies Sold 3.9 million

Employees12,531

58

http://www.maxnewyorklife.com/

Agent Advisors 92,667

Number of Products (INDIVIDUAL) 37

Number of Riders/Options (Individual) 8

Product Combinations Possible (Individual) Over 800

Number of Products (Group) 6

Number of Riders/Options (Group) 7

Number of Offices 712

Number of Offices Dedicated To Rural

Business 137 (21 hub offices, 116 spoke offices)

MDRTs 218 (for calendar year 2008)

Trainers 824

Business mix by worldwide sales ‡

1. Long-term savings and fund management 71%.

2. General insurance and health 29%

59

MAX NEW YORK LIFE INSURANCE BRND AAMBASSADOR

Amitabh Bachchan to endorse Max New York Life's Max VijayLife insurance company Max New York Life has appointed veteran actor Amitabh Bachchan

as the ambassador for its product, Max Vijay, that was launched towards the end of 2008.

Max Vijay is a product designed to meet the investment and insurance needs of the investor,

particularly the underprivileged strata of society.

The policy offers stable investment returns, with insurance and

savings at low entry level premiums of Rs 1,000, Rs 1,500 and Rs

2,500. Investors have the convenience to pay amounts between Rs

10-2,500 per day.

The policy does not lapse as long as there is sufficient value in the

policy account to cover charges, even if no subsequent premiums are

paid.

On choosing Bachchan as the ambassador, Anisha Motwani, executive vice-president,

marketing and chief marketing officer, new markets, Max New York Life Insurance, tells

afaqs!, "This is a low ticket product and we launched the product with the large objective of

60

providing financial independence to the masses. When the objective is as large, one needs a

celebrity ambassador who has a stature that could reach out to a large mass of the population."

Motwani says that the product was launched in the retail channel earlier

with below-the-line activities and a more aggressive campaign will be

launched in mid-September.

The launch will be in a phased manner, beginning from Uttar Pradesh,

where the business model of the product will be tested.

"We are targeting people in the annual income bracket of Rs 60,000-

1,00,000.

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Comparison b/w MAX NEW YORK LIFE INSURANCE

& OTHER INSURANCE COMPANY on Certain bases:-

1. Comfortable life style for your dependent on your death.

2. Consistent income at an elderly age

3. Profits/higher return from flow Policy at the end of the tenure.

4. Forced savings help comfortable build up of an estate.

5. Livelihood provision in case of disability (though in meet Indian life,

insurance, plans it is Mandatory added).

6. Tax Benefits

In detail

1) MAX NEW YORK LIFE INSURANCE has been in the market for last

7 yrs. So people find it more promising than others. The benefits

provided by it are incomparable to any other. On death MAX NEW

YORK LIFE INSURANCE provide much more claims then MAX

NEW YORK to the dependents. So it helps in running the life easily for

the dependents after the death of MAX NEW YORK LIFE

INSURANCE holder too.

2) If any one has taken life long MAX NEW YORK LIFE INSURANCE

then a continues flow of income is maintained at an elderly age too.

Since, MAX NEW YORK LIFE INSURANCE is a popularly Insurance

62

Corporation while MAX NEW YORK LIFE INSURANCE is like a

new face in the Market. So, people run for MAX NEW YORK LIFE

INSURANCE while is left behind.

3) Return on investment i.e. profit from flow MAX NEW YORK LIFE

INSURANCE at the end of whenever is same in both. MAX NEW

YORK LIFE INSURANCE & OTHER COMPANY. Though MAX

NEW YORK LIFE INSURANCE is a new face but if try to capture the

attention of people or market by providing more attractive MAX NEW

YORK LIFE INSURANCE. The percentage of return is same.

4) In old days, people were reluctant to do savings. They do not know the

benefits of saving but with the commencements of MAX NEW YORK

LIFE INSURANCE various saving schemes its percentage ratio of

return. People were forced to do saving & this saving result in

comfortable living & build up a social state. Though MAX NEW

YORK LIFE INSURANCE is also providing good return on saving but

people believe MAX NEW YORK LIFE INSURANCE the best.

5) There life corporations provide various benefits in case of disability,

accident or in any unforeseen circumstances. By considering this point

we can say that both the corporations are equally good

6) Generally people take insurance MAX NEW YORK LIFE

INSURANCE for some reason it may be tax rebate, securing or any

other reason. Today people are proffering MAX NEW YORK LIFE

INSURANCE as the best tax benefit provider as it is a private sector.

Corporation which is much more flexible than MAX NEW YORK

63

LIFE INSURANCE who is a MAX NEW YORK LIFE INSURANCE

Sector.

Comparison between Marketing Strategies of

MAX NEW YORK & OTHER’s

MAX NEW YORK LIFE INSURANCE is related to MAX NEW YORK LIFE

INSURANCE sector which established since last 7 years & there turnover of year

2007 is 12000. as regarding their MAX NEW YORK LIFE INSURANCE of welfare

is concerned with MAX NEW YORK LIFE INSURANCE & OTHER but knowing

the aspect of both, I think the more promising is MAX NEW YORK LIFE

INSURANCE as compared other because it still provided better advantages for

general MAX NEW YORK LIFE INSURANCE while other is also generating their

image is the current but still to be established more. Rather finance MAX NEW

YORK LIFE INSURANCE is concerned then MAX NEW YORK LIFE

INSURANCE & OTHER is come to the same level because MAX NEW YORK

LIFE INSURANCE is a joint venture between MAX NEW YORK LIFE

INSURANCE is UK’s largest & the world’s sixth largest insurance group. MAX

NEW YORK LIFE INSURANCE insurance to Non-Resident & Foreign national to

Indian Origin likes MAX NEW YORK LIFE INSURANCE Housing, Finance, MAX

NEW YORK LIFE INSURANCE, Mutual Fund schemes & insurance in foreign

currency from foreign offices & subsidiary companies. And last but not the least

production MAX NEW YORK LIFE INSURANCE. Under this, MAX NEW YORK

LIFE INSURANCE concerned wit Mutual benefits, Guaranteed surrender values,

64

optional sides benefit & many more & MAX NEW YORK LIFE INSURANCE

concerned with MAX NEW YORK LIFE INSURANCE processing, souring

personal information plant office automation. Customer relationship management. So,

by considering both corporation’s the conclude is made that through some aspects

MAX NEW YORK LIFE INSURANCE is best & through other aspects MAX NEW

YORK LIFE INSURANCE is better.

65

PRODUCT PROFILE

FINANCE POLICY OF MAX NEW YORK

Max New York Life Insurance Company India Pvt. Ltd. is a joint venture between Max

New York of UK and Dabur, one of India's leading producer of traditional healthcare

products. Max New York holds a 26 percent stake in the joint venture and the Dabur

group holds the balance 74 per cent share.

Max New York is UK's largest and the world's sixth largest insurance Group. It is one of

the leading providers of life and pensions products to Europe and has substantial

businesses elsewhere around the world.

Max New York pioneered the concept of Bancassurance in India. Currently, Max New

York has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara

Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank,

11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir and Maharashtra and

one regional Bank in Sikkim.


distribution network. Through its Bancassurance partner locations, Max New York

products are available in 378 towns and cities across India.

Investments in life insurance provide the dual benefit of saving for your future financial

requirements as well as financial security for your dependants in case of your death.

66

Unlike other investment instruments (term deposits, mutual funds and stock market

securities etc.), the nature of life insurance products is such that they are designed for the

long term (10 years or more) and provide the best results when they are continued for their

full term.

The right investment strategies won't just help you plan for a more comfortable tomorrow

-- they will help you get Kal Par Control.

At Max New York, life insurance plans are created keeping in mind your changing

needs and your family's. Our life insurance plans are designed to provide you with flexible

options that meet both protection and savings needs.

We offer our customers a full range of transparent, flexible and value for money products

that include whole life (LifeLong), endowment (LifeSaver, SaveGuard, EasyLife Plus,

LifeSaver Plus, LifeSaver Super and a traditional endowment – Dhan Vriddhi), child plan

(Max New York Little Master) single premium (LifeBond Plus), pension (Pension Plus),

term (Life Shield), fixed term protection cum savings plan (Freedom Life Plan) and a

short-pay recurring premium investment cum protection plan (LifeBond5). Max New

York products are modern and contemporary unitized products that offer unique customer

benefits like flexibility to choose cover levels, indexation, partial withdrawals and unique

investment options like a Systematic Transfer Plan to get the benefit of systematic

investments and an Automatic Asset Allocation Plan which changes the risk structure on

your investments as your age increases. We also have 3 rural plans which are a low cost

term plan – Amar Suraksha and 2 endowments – Anmol Suraksha and Jana Suraksha.

67

We also offer you a choice of investment options. You can choose between our Unit

Linked Fund and our With Profits Fund (only on Pension Plus).

The With Profits Fund guarantees that the selling price of the units will never fall. The

unit value of this fund is increased by crediting bonuses on a daily compounding basis.

The fund provides investment security to your capital.

The Unit Linked Funds are designed to provide relatively more progressive capital growth

wherein you automatically receive the benefit related to the investment performance of the

fund.

Under our Unit-Linked Insurance Plans we offer a choice of Unit-Linked Fund options:

Bond Fund: To generate a steady income through investment in high quality fixed

income securities. The fund comprises of 100% debt and money market and no equities.

Protector Fund: Progressive returns on your investment by investing higher element of

assets in debt securities, with minimum exposure to equities. The fund comprises of debt

securities in the range of 60-100%, equities in the range of 0-20% and money market and

cash in the range of 0-40%.

Secure Fund: The investment objective of this fund is to provide progressive return on

your investment with a minimum guarantee on maturity. The fund comprises of debt

68


cash in the range of 0-40%. Initially the equity exposure will be 10 %.

Balanced Fund: The investment objective of this fund is to provide capital growth by

availing opportunities in debt and equity markets and providing a good balance between

risk and return. The fund comprises of debt securities in the range of 50-90%, equities in

the range of 0-45% and money market and cash in the range of 0-40%.

Growth Fund: The investment objective of this fund is to provide high capital growth by

investing higher element of assets in the equity market. The fund will comprise of debt


cash in the range of 0-40%.

Index Fund: To generate returns in line with the stock market index – NIFTY. The fund

comprises of debt and money market securities in the range of 0-20% and equities in the

range of 80-100%.

Enhancer Fund: To provide aggressive, long term capital growth with high equity

exposure. The fund will comprise of debt and money market in the range of 0-40% and

equities in the range of 60-100%.

69

Max New York also offers a whole range of group insurance and savings products

catering to pensions, gratuities, credit protection and pure protection. We have a dedicated

team that works with corporates across the country.

Individual

At Max New York we are dedicated to helping you make the most out of your life, and

that includes all your savings and protection requirements. We are here when you need to

make informed financial decisions - for you, and for your loved ones.

We offer products under the following six categories for individuals

1. Whole Life – As the name suggests, these products continue throughout your life and pay

out to your dependants only upon your death. These are useful if you want to create a financial

corpus for your family.

LifeLong

2. Pure Term – Pure term products are designed to provide your dependants financial

protection at a low cost in case of your death.

Life Shield

3. Endowments – Endowment products are meant to help you create a corpus to meet

financial needs during your lifetime. These products also provide a financial cover in case of

death

EasyLife Plus

LifeBond 5

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LifeSaver

SaveGuard

LifeSaver Plus

LifeSaver Super

Freedom Life Plan

Max New York DhanVriddhi

Anmol Suraksha

4. Single Premium – single premium products are meant for lump sum investments. These

products are meant for maximizing your investment returns while providing tax benefits on

your investment.

LifeBond Plus

5. Pension Plans – pension products as the name sug

Pension Plus

6. Child Plans – child plans are meant for investments benefiting your child when he/ she

needs them. Investments in these plans can be used for needs like funding higher education,

setting up a business, marriage expenses etc.

Max New York Little Master

1. Endorsement request form

2.Reinstatement request forms

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http://www.avivaindia.com/product_catalogue/OPSfiles/Endorsment%20request%20form.pdf











LifeLong, Life Saver or Young Achiever

EasyLife Plus, Treasure Plus, SaveGuard or Life Bond5

Life Shield, Secure Life, Amar Suraksha or Anmol Surakshagests are meant for retirement

planning and aim to maximize your post retirement income

Group

Our Group products are designed keeping in mind the special requirements of organizations

and large groups

EasyLife Plus

Corporate Life

Credit Net

Superannuation

Group Gratuity

Credit Plus

LoanSuraksha

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http://www.avivaindia.com/product_catalogue/Reinstatement_details.asp?frm=3



Group Shield

Rural

At Max New York we have specially designed products for the rural sector

Amar Suraksha

Jana Suraksha

WELFARE POLICYOF MAX NEW YORK

1. Policy statement

We recognize that our business activities have direct and indirect impacts on the societies in

which we operate. We endeavour to manage these in a responsible manner, believing that

sound and demonstrable performance in relation to Corporate Social Responsibility MAX

73




NEW YORK LIFE INSURANCE and practices is a fundamental part of business success.

As a part of its global philosophy, Max New York India will also develop and follow a

Corporate Social Responsibility (CSR) programme that will demonstrate it as a “good

corporate citizen”. The CSR programme will be evolved and developed with the active

participation of the employees who will believe in such a philosophy.

The programme will be evolved and developed by the respective team of Max New York

employees at each location across the country, under the guidance of the CSR Corporate

Team at the Head Office.

To provide a focused and structured approach to the programme, Max New York in the

beginning, will limit its support to causes related to the elderly and children, including

destitutes, mentally and physically challenged children. It will enlist specific Non

Government Organisations (NGOs) and associations who work for these causes.

Max New York has also formulated MAX NEW YORK LIFE INSURANCE related to

Environment and Human Rights, which have an indirect impact on CSR too. Please refer to

these MAX NEW YORK LIFE INSURANCE individually for more details.

2. Purpose

The purpose of Max New York’s CSR Policy is to convey the true meaning of CSR to the

stakeholders of the organisation as well as to ensure their commitment to the programme.

3. Scope

74

This Policy applies to all parts and activities of Max New York in India, including the

branches.

4. Underlying philosophy

Max New York believes in “giving back” what it gets from the society. The CSR

programme followed by the organisation with the active participation of the employees will

essentially work towards that belief. The manner in which we interact with the world in

which we operate determines our place within it. This global statement of Max New York

plc’s CSR programme represents a first step into defining Max New York’s view and will be

developed over time.

PRODUCTION POLICYOF MAX NEW YORK

POLICYPROCESSING

The Cumberland Insurance Group, a Bridgeton, N.J., multi-line carrier, has placed Mount

Arlington, N.J.-based AGO Insurance Software Inc.'s Commercial Multi-Peril Policy System

75

in its production environment. The Windows program will be used to streamline the Policy

cycle process for CMI.

SECURING PERSONAL INFORMATION

In an effort to comply with regulatory mandates, American National Insurance Co.,

Galveston, Texas, selected PGP Universal from Palo Alto, Calif.-based PGP Corp., to secure

electronic communications containing personal and confidential information.

POLICYADMIN, LIFECYCLE SUPPORT

Quick Solver, a Policy administration solution from INSTEC Corp., Naperville, Ill., is in full

production at Cheshire, Conn.-based Housing Authority Insurance Group (HAI Group).

Existing data was imported in real time during the rating process, and Quick Solver Policy

data was exported to HAI Group's data warehouse for data mining. Quick Solver is designed

to provide a Policy administration solution including bureau-compliant rating for all 50 states,

full Policy issuance capabilities and full Policy lifecycle transaction support.

WORKERS' COMP POLICYAND CLAIMS SYSTEM

After a two-month set up and configuration, Umialik Insurance Co., a multiple line,

property/casualty insurance company headquartered in Anchorage, Alaska, went live with a

workers' compensation Policy and claims systems from Tropics Software Technologies,

Sarasota, Fla.

CUSTOMER RELATIONSHIP MANAGEMENT

AIG Edison Life Insurance, a Tokyo-based division of American International Group Inc.,

providers of insurance and financial services, selected Bellevue, Wash.-based Onyx Software

Corp. to support AIG's ongoing customer relationship management strategy

76

Financial Planning

The uniqueness of life insurance products is that you can combine protection and long-term

savings, enabling you to safeguard and provide for your family.

Max New York Life Insurance provides you three easy-to-use tools:

60 sec Financial Health Check will give you an indication of how healthy your finances are.

Lifecycle Guide will take you through different stages of life and possible financial needs.

Record Sheet is useful to record details of all your investments. .

These tools are designed to give you an overview of your financial needs. To fully plan for

your future, please contact our Financial Planning Adviser.

RESEARCH METHODOLOGY

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http://www.avivaindia.com/financial_planning/recordsheet.asp

http://www.avivaindia.com/financial_planning/lifecycle_guide.asp

http://www.avivaindia.com/financial_planning/60fhc.asp

The Advanced Learner’s Dictionary of current English Lays down the meaning of

Research as, “A careful investigation or inquiry especially through search for new fact in any

branch of knowledge.”

Redman & Mory define research as, “Systematized effect to gain new knowledge.”

RESEARCH DESIGN

“The research design is the conceptual structure with in which research is conducted it

consist the blue print of the collection measurement and analysis of data.”

In that project the research design was adopted for the “Descriptive research study” the

exploratory research studies are also termed as formulative research studies. The main purpose

of such studies is that of formulating a problem for more precise investigation or of

developing the working hypothesis from an operational point of view

The main purpose of the study was to tell the consumer perception in ‘A. The major

emphasis was on the discovery of the ideas and opinions of the consumers at different levels

in the existing environment.

Two methods that are used for the study are:

1. The survey of concerning literature.

2. The experience study.

SAMPLE DESIGN

78

A sample design is a definite plan for obtaining a sample from a given population. It

refers to the technique or the procedure the researcher would adopt in selecting items for the

sample. The sample design is determined before data are collected.

The sampling used for the study is “Convenience Sampling”. Under this sampling

design every item or the universe has equal chance or inclusion in the sample because this is

Consumers’ Perception survey, so we give each person at any place an equal probability of

getting into the sample.

The MAX NEW YORK LIFE INSURANCE of random sampling are:

1. It gives each element in the population an equal probability of getting into the sample;

and all choices are independent of one another.

2. It gives each possible sample combination an equal probability of being chosen.

DATA COLLECTION

TYPES OF DATA

In the survey two types of data are collected:

1. Primary data: These data’s are those which are collected for the first time and therefore

original in nature.

2. Secondary data: Data, which have already been collected by someone else and hence

passed through the statistical process.

DATA SOURCE

79

PRIMARY DATA COLLECTION

For the collection of the primary data following methods were used:

1. Interview method: Personal interviews of the customers are taken at different levels to

get their opinions and suggestions. And the interview was structured in nature.

2. Questionnaire method: Structured questionnaire on the basis of information collected

from different sources. The questionnaire contains both open and ended questions.

SECONDARY DATA COLLECTION

Secondary data were collected from the following sources:

a. Books related to topic

b. Organization documents

c. Magazines

d. Websites

DATA APPROACHES

Stratified Random Probability Sample Selection Method.

Research Instrument

Questionnaire (no of questions )

Focus Group

Observation

Direct Method

MECHANICAL INSTRUMENT:

Telephonic Method

80

POPULATION:

Sampling Unit

The units chosen for survey were related advisor consultant & customers.

Sample size 100

Sample Selection Procedure

Probability

Contact Method

Direct method

Telephone

STATISTICAL TOOLS USED

Statistical tools used in the project study are:

Graph.

FINDING AND ANALYSIS

81

Q.1. What made you to switch to another Policy of Life Insurance?

New Policy Condition of Premium Maturity Date

Table: 2

Option Number of People

New Policy 10

Condition of Premium 20

Maturity Date 70

Fig. 3

Interpretation: 70% of the People prefer Maturity date and 20 People prefer Condition

premium and 10% people prefer new policy.

Q.2. What factor among the following you consider before purchasing MAX NEW YORK

LIFE INSURANCE?

82

Tax Rebate Security Investment Purpose Any other

Table: 3


Tax Rebate 25

Security 65

Investment Purpose 5

Any Other 5

Fig. 4

Interpretation: 65% of the People prefer Security] 25% people prefer tax rebate, 5% people

Investment purpose prefer and 5% People prefer Any other.

Q.3 Which Policy do you use at present:

CUG FGU Pension plus Plan. 83

Table: 4


CUG 60

FGU 25

Pension Plus Plan 15

Fig. 5

Interpretation: 60% of the People prefer Capital Unit Gain Plan and 25% People prefer

FGU, 15% people prefer Pension plus plan.

84

Q.4. How many Policy/Policies do you have?

1 2 3

Table: 5


1 25

2 60

3 15

Fig. 6

Interpretation: 60% of the People prefer two Policy of MAX NEW YORK LIFE

INSURANCE and 25% people prefer Bajaj Allianz Insurance and 15% People prefer policy

Mahindara Kotak Insurance.

85

Q.5 Have you face any compliant regarding insurance Policy till now?

Yes No

Table: 6


Yes 30

No 70

Fig. 7

Interpretation: 70% of the People prefer No & 30% People Prefer .

86

Q.6. How will you rate benefits of your existing MAX NEW YORK LIFE INSURANCE ?

Excellent Good Average Poor

Table: 7


Excellent 10

Good 20

Average 65

Poor 5

Fig.8

Interpretation: 65% of the People prefer Average benefit of MAX NEW YORK LIFE

INSURANCE & 20% people prefer Good max new york life insurance & 10% People prefer

Excellent max new york life insurance & 5% people prefer Poor max new york life insurance.

87

Q.7. Have you suggested the same Policy to anyone till now?

Yes No

Table: 8

Option Number of people

Yes 90

No 10

Fig. 9

Interpretation: 90% people says Yes for suggested the same policy and 10 People no for

suggestion.

88

Q.8. What is your main source of information for MAX NEW YORK LIFE INSURANCE?

Newspaper Magazine Internet Agents

Table: 9


Newspaper 5

Magazine 15

Internet 25

Agents 55

Fig. 10

Interpretation: 55% of the People prefer main source of information for MAX NEW

YORK LIFE INSURANCE by Agents & 25% People Prefer Main source of

information for max new York life insurance by Internet & 15% People Prefer Main

source of information for max new York life insurance by Magazinet. 5% People

Prefer Main source of information for max new York life insurance by Newspaper.

89

Q.9. If you will have a chance to purchase the Policy of any other company, which will you

prefer?

MAX NEW YORK LIFE INSURANCE RELIANCE Any Other

Table: 10


MAX NEW YORK LIFE INSURANCE 30

RELIANCE 10

Any Other 60

Fig. 11

Interpretation: 60% of the People prefer any other company and 30% People prefer Aviva

Life Insurance Company & 10% People prefer Reliance company.

90

Q.10. When did you purchase Policy First time?

5 yrs back 10 yrs back 15 yrs back

Table: 11


5 yrs back 60

10 yrs back 30

15 yrs back 10

Fig. 12

Interpretation: 60% of the People prefer more than 5 Yrs Back and People prefer more than

10 YRS & 10 people prefer than more than 15 YRS Back.

Q.11. Amount of Policy taken?91

5,000 10,000 15,000

Table: 12


5000 10

10000 20

15000 70

Fig. 13

Interpretation: 70% of the People prefer amount of MAX NEW YORK LIFE INSURANCE

15000 & 20% People prefer amount of Aviva Life Insurance 10000 & 10% People prefer

amount of Mahindra Kotak Life Insurance 5000 &

Q.12. Complaints regarding Policy whether?

92

Satisfied Dissatisfied.

Table: 13

Satisfied 80

Dissatisfied 20

Fig. 14

Interpretation: 80% of the People Satisfied MAX NEW YORK LIFE INSURANCE & 20%

of the People dissatisfied MAX NEW YORK LIFE INSURANCE.

Q.13. Which age of group do people prefer to get insurance?

93

10-20 20-30 30-40 40-50

Table: 14


10-20 15

20-30 20

30-40 25

40-50 40

Fig. 15

Interpretation: 30% of the People prefer age group 40-50 and 30% People prefer age group

20-30 and 25% people prefer age group 30-40 and 15% People prefer age group 10-20.

Q.14. Which class of family prefer insurance?

94

Higher Middle Low

Table: 15


Higher 20

Middle 70

Low 10

Fig. 16

Interpretation: 70% of the People prefer Meddle family and 20% of the People prefer Low

family and 20% of the People prefer Higher family.

CONCLUSION95

Insurance is a best growing sector in last few years there has been some major

changes in the face of the market.

While conducting survey in Moradabad city to fine the actual position. It was

found that people are very much aware about new life insurance companies

and their MAX NEW YORK LIFE INSURANCE in Moradabad. MAX NEW

YORK LIFE INSURANCE is the leading company with total market share.

Most people have regular premium but others have single premium plan.

It is observed that most of the people think that insurance MAX NEW YORK

LIFE INSURANCE are very important for their life.

It is also find that other insurance companies affect maximum people.

Most of the people think that today life insurance Policy is very important &

think that without it life is at risk. Most of the people think that for every

person life insurance is not important.

It is also find out that people are not very much satisfied with Bajaj Allianz.

Asking about the importance of life insurance in modern time most of the

people say that it is very important while few of them say that it is not

important.

On questioning with people that whether they would like to give some name

for insurance company. Most of the people state that they will suggest name.

They told when they are satisfied with MAX NEW YORK LIFE

INSURANCE services then they can give the name for use of others. When I

asked with people to give some suggestions to improve the services of MAX

96

NEW YORK LIFE INSURANCE maximum people state that the return

should be high. Some people said that company should decrease the premium.

Now on analyzing why any person goes for some particular insurance

company what is affecting their choice, there I found to be number of

responses. The most of the people said the premium should be low.

In our research I found that most of people prefer life insurance MAX NEW

YORK LIFE INSURANCE. In life insurance most of the people prefer money

back plan and most of the people Ire satisfied with their current plan. In the

current Policy they like the feature most is safety. Near about 50% of the

people have more than one MAX NEW YORK LIFE INSURANCE Most of

the people have taken the life insurance Policy for their self. 42.5% Ire affected

with the brand image.

97

SUGGESTIONS

PROSPECTS OF MAX NEW YORK LIFE INSURANCE

Capital Unit Gain

In my opinion the following steps of Suggestions, Company should adopt to

increase his sale: -

1. The first and the foremost step that company should be self-dependent

because the company has collaboration with foreign company.

2. The company should try to adopt new MAX NEW YORK LIFE

INSURANCE so has to take a lead over the other insurance companies.

3. The company should improve their infrastructure.

4. Marketing is also very much needed for the company.

5. Max New York Life Insurance announced an increase in its capital base by

Rs 100 crores, taking the total paid-up capital to Rs 559 crores.

6. The fresh infusion will help fuel the aggressive growth plans of the

company. Max New York has fared well, increasing its market share to

5.1% during April 2005-March 2006, up from 4.2% during the same period

last year. Against the life insurance industry growth rate of 32%, Max New

York Life Insurance has recorded a growth of 118% compared to the last

year..

98

7. In the last six months, Max New York has strengthened their

Bancassurance channels, allowing access to a wider customer base.

LIMITATIONS

People did not cooperate while filling the questioner.

Few of the people did not filled the full questionnaire.

Maximum people complaint regarding the length of the questionnaire, they

thought it is lengthy.

People Ire not honest in filling the questionnaire that’s why the data is not

exact.

Time consuming.

Too much expensive.

Lack of awareness among the respondent.

Most calls are obtained at the sufferance of the respondent .The interviewer

is unknown to the respondent .

Survey was restricted to the people who have telephone facility.

Despite willingness to co-operate , many persons are unable to give

accurate information on questions , which the marketing observer would

like to ask.

Language problems, as some were don’t able to understand Hindi or English as

they were Gujaratis or Marathis etc.

Lack of sufficient time of the respondent.

Little time was given to respondents because of telecalling.

Not much information can be gained from respondents.

99

Max New York should try to maintain it rate of return between 20%-40% for

every type of investment plan.

It should develop MAX NEW YORK LIFE INSURANCE for other purposes

like travel, marine etc.also.

Insurance companies should not mislead to customers to provide wrong

information about their own MAX NEW YORK LIFE INSURANCE

Rural areas in India lacks this facility so the insurance BAJAJ ALLIANZ

should spread their business in rural areas also.

Insurance companies should make personal contact with customer or own

client for improving bad promotion.

100

BIBLIOGRAPHY

BOOKS-

Kotler Philip (2008), ‘Marketing Management’, Prentice Hall India, 13th Edition.

Kothari C.R. (2000), ‘Research Methodology’, Wishwa Prakashan, 8th Edition.

Jha Mithileshwar (1997), ‘Retail Marketing’, Dorling Kindersley (India) 5th Edition

Internet site:

www.maxnewyorklife.com

http://www.maxnewyorklife.com/about_us/about_us.aspx

http://www.maxnewyorklife.com/about_us/management.aspx

http//www.google.com

101

ANNEXURE

QUESTIONNAIRE

Dear Respondent’s

I am student of MBA III Sem from I F T M, Moradabad conducting a survey on

“STUDY OF MAX NEW YORK LIFE INSURANCE PRODUCT AND PRESENT

MARKET SCENERIO” I seek your Co-operation so, please do us a favor by filling this

questionnaire.

Q.1. What made a to switch to another Policy of MAX NEW YORK LIFE INSURANCE of

Life Insurance?

New Policy Condition of Premium Maturity Date

Q.2. What factor among the following you consider before purchasing policy of MAX NEW

YORK LIFE INSURANCE

Tax Rebate Security Investment Purpose Any other

Q.3. Which Policy do you use at present

CUG PLAN FUG PLAN Pension plus Plan

Q.4. How many Policy/Policies do you have?

1 2 3

Q.5 Have you face any compliant regarding insurance Policy till now

Yes No

Q.6. How will you rate benefits of your existing policy

Excellent Good Average Poor

Q.7. Have you suggested the same policy to anyone till now?

102

Yes No

Q.8. What is your main source of information for policy?

Newspaper Magazine Internet Agents

Q.9. If you will have a chance to purchase the policy of any other brand, what will you prefer.

MAX NEW YORK LIFE INSURANCE Reliance Other

Q.10. When did you purchase policy First time.

5 yrs back 10 yrs back 15 yrs back More than 15 yrs

Q.11. Amount of policy taken

5,000 10,000 15,000

Q.12. Complaints regarding policy whether

Satisfied Dissatisfied.

Q.13. Which age of group do people prefer to gat insurance.

10-20 20-30 30-40 40-50

Q.14. Which classes of family prefer insurance

Higher Middle Low

Personal Details

Name : …………………………………………………………

Age : …………………………………………………………

Phone No. : …………………………………………………………

Address : …………………………………………………………

Occupation : …………………………………………………………

103

E-mail : …………………………………………………………

104

Max Newyork Life Insuance 2

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