Shadman Haider

ACKNOWLEDGEMENT
There is always a sense of gratitude which one express to other for the helpful so
needy services they render during all phases of life. I would like to express my
gratitude towards all those who have been helpful to me in getting this mighty
task of training to a successful end.
First of all, I consider it a pleasant duty to express my heart felt appreciation,

gratitude and indebtedness to Mrs. Preeti (Manager- Agency Recruitment and Training)
& Mr.Anupam Bajpayee(H.O.D. MBA) for his keen interest, invaluable pain taking &
excellent guidance, patience, endurance, encouragement & thoughtful advice throughout the
project work duration.
I am deeply grateful to Mr. Ajay Saigal (External guide) for his ever willing help and
guidance to complete my project successfully.
I would like to thank to Mrs. Rashmi Malvia (Internal guide) for his nobel
inspiration, keen interest, constant supervision and ever willing help throughout the course of
this study.
I would also like to be thankful to Mr. Vishal Gupta (Branch Manager, MAX
NEW YORK LIFE INSURANCE, New Delhi), who has given me the right
way to prepare my project report.
I am also thankful to all my friends who gave me constant & continuous inspiration to
complete this project.
(Shadman Haider)
Shadman Haider, MBA IIIrd Sem 1

DECLERATION
I hereby declare that this report on “RECRUITMENT OF ADVISORS AND

TRAINING PROGRAMMES FOR EMPLOYEES IN MAX NEW YORK LIFE” has been
written and prepared by me during the academic year 2009-2010.This project was done under
the able guidance and supervision of Mr. Anupam Bajpayee, (H.O.D. MBA) and Mr.
Ajay Saigal, (External guide), Max New York Life Insurance Company Ltd.,New Delhi in
partial fulfillment of the requirement for the Master Of Business Administration Degree
course of the Utter Pradesh Technical University.
I also declare that this project is the result of my own effort and has not been submitted to
any other institution for the award of any Degree or Diploma.
Shadman Haider
0827770427

ABSTRACT
This Report is an attempt to provide a detailed analysis of the process of training

program done by Max New York Life Insurance and the benefits of the training.
However, survey done for this project suggests that maximum number of
employees, in the turbulent, fast changing world, effective training has never been more
important. Products are now increasingly knowledge intensive; for this, employers are
responsible for providing opportunities for continued learning. This project gives a detailed
analysis of the training done by agents at various levels, its benefits and also their personal
growth which they will be having after the training. This project gives a brief analysis about
the benefits of the training and the improvement of the agents because of the same.
In an Insurance Industry, training programs is the key to success. Its effectiveness

decides the fate of the Industry.
Finally, creating awareness of organization structure and its products to the employee
is very important to have individual as well as organization growth. So it can be possible
only when the employees go through the training program.

INDEX
1. Executive summary 7
2. Objective of the study 8
3. Introduction to the company 9
4. Indian insurance industry 16
5. A Brief History Of Max India 18
6. Life Insurance Products 36
Insurance Plans 41
Plan Detail 53
Distribution of Insurance Products 69
Achivement and award 70
7. Resaearch methodology 82
Data collection 83
8. Data analysis & interpretation 84
9. findings Of Study 119

10. Recommendations 110
11.Suggestions: 121
12. Conclusion 124
13.Limitation Of Research 124
14.Bibliography 126
15.Appendix 127
Questionnaire

Executive Summary
This Report is an attempt to provide a detailed analysis of the process of

training program done by Max New York Life Insurance and benefits of the training.
In my complete student internship program I met more than 90 employees.

During this student internship program I came to know that, knowledge based
economy, training helps people to learn how to do things differently or to do different
things.
However, my survey suggests that maximum number of employees, in the

turbulent, fast changing world, effective training has never been more important.
Products are now increasingly knowledge intensive; for this, employers are
responsible for providing opportunities for continued learning.
In my survey I found that 80% of employees are new to the job and they must
undergo the training program.
Finally, creating awareness of organization structure and its products to the

employee is very important to have individual as well as organization growth. So it
can be possible only when the employees go through the training program.

OBJECTIVES
The main objective of doing this project is to study Financial Consultants’

attitude regarding the training program and the benefits of the training program.
 The main objective of this study is to know the agents’ opinion regarding
the training program and to identify training needs for the agents.
 To find out the benefits of the training program to the agent and to the
organization.
 To find out the contribution of the training towards individual growth of
agents.
 To suggest ways to improve the quality of training for the agents.

INTRODUCTION of INSURANCE
Insurance may be described as a social device to ensure protection of economic value

of life and other assets. Under the plan of insurance, a large number of people associate
themselves by sharing risks attached to individuals. The risks, which can be insured against,
include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon
these, may be insured against at a premium commensurate with the risk involved. Thus
collective bearing of risk is insurance.
Insurance is a contract whereby, in return for the payment of premium by the insured,
the insurers pay the financial losses suffered by the insured as a result of the occurrence of
unforeseen events. The term "risk" is used to describe the possibility of adverse results
flowing from any occurrence or the accidental happenings, which produce a monetary loss.
Insurance is a pool in which a large number of people exposed to a similar risk make
contributions to a common fund out of which the losses suffered by the unfortunate few, due
to accidental events, are made good. The sharing of risk among large groups of people is the
basis of insurance. The losses of an individual are distributed over a group of individuals.
Definitions:
General definition:
In the words of John Magee, “Insurance is a plan by themselves which large number of
people associate and transfer to the shoulders of all, risks that attach to individuals.”
Fundamental definition:
In the words of D.S. Hansell, “Insurance accumulated contributions of all parties

participating in the scheme.”
Contractual definition:
In the words of justice Tindall, “ Insurance is a contract in which a sum of money is
paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon
a given contingency.”

CHARACTERISTICS OF INSURANCE
 Sharing of risks
 Cooperative device
 Evaluation of risk
 Payment on happening of a special event
 The amount of payment depends on the nature of losses incurred.
 The success of insurance business depends on the large number of people insured
against similar risk.
 Insurance is a plan, which spreads the risk and losses of few people among a large
number of people.
 The insurance is a plan in which the insured transfers his risk on the insurer.
 Insurance is a legal contract which is based upon certain principles of insurance

which includes
1. utmost good faith
2. insurable interest
3. contribution, indemnity
4. causas proxima
5. subrogation, etc.
 The scope of insurance is much wider and extensive.

FUNCTIONS OF INSURANCE
Primary Functions:
1. Provide protection:- Insurance cannot check the happening of the risk, but can provide
for the losses of risk.
2. Collective bearing of risk: - Insurance is a device to share the financial losses of few
among many others.
3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating

various factors that give rise to risk.
4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to

certainty.
Secondary Functions:
1. Prevention of losses: - Insurance cautions businessman and individuals to adopt suitable

device to prevent unfortunate consequences of risk by observing safety instructions.
2. Small capital to cover large risks: - Insurance relives the businessman from security
investment, by paying small amount of insurance against larger risks and uncertainty.
3. Contributes towards development of larger industries.
Other Function:
Means of savings and investment:
Insurance companies are business houses. The product they sell is financial protection. To
succeed and survive, they must cover their costs, which include payments to cover the losses
of policyholders, as well as sales and administrative expenses, taxes and dividends.

Insurance companies have two sources of income for covering these costs:
Premiums:- The premiums are collected on a regular basis and invested in Government
Bonds, Gilt, stocks, mutual funds, real estates and other conservative avenues.
Investment income.:- However, investment income depends on market conditions, interest

rates, economy etc. and varies from year to year. Because of the uncertainty
associated with the investment income, insurance companies must generate
enough income from premiums to cover the bulk of their expenses.
The risk becomes insurable if the following requirements are complied with:
 The insured must suffer financial loss if the risk operates.
 The loss must be measurable in money,
 The object of the insurance contract must be legal.
 The insurer should have sufficient knowledge about the risks he accepts.

Fundamentals of Insurance
The fundamental Principles of the Insurance are as follows:
 Insurable Interest: Insurable interest means the legal right to insure. Insurable
Interest is a must and only then the insurance contract is enforceable at law. This
principle differentiates a Contract of insurance from wager. Lack of insurable interest
renders the contract null and void. For Insurable Interest to exist there must be
Property, Rights, Interest, Life
 Liability: this must be insured and the Insured should have a legally recognizable
relationship thereto. The Insured should be benefited by the safety of the property or
is prejudiced by its loss.
Insurable Interest may arise in the following manner:
1. Ownership: Absolute ownership entitles the owner to insure the property. This is the
commonest method whereby Insurable Interest arises.
2. Partial Interest is also insurable e.g. a mortgagee. A creditor can also insure the life of
his debtor but only to the extent of his loan.
3. Administrators and executors i.e. officials appointed by a court of law to take care of
a property may also insure the property.
4. Relationship does not automatically constitute insurable interest. The only relationship
recognized by law for this purpose is the one between a husband and
wife.
5. An employer can insure his employee under a Personal Accident Policy as he has
insurable interest in them.
 Proximate cause: Generally, the claims are payable under insurance policies if they
arise out of events which are proximately caused by the insured perils. In other words,

the proximate cause of the event has to be peril covered by the policy, so as to
constitute a valid claim.
 Contribution: An insured may have several insurance on the same subject matter. If
he recovers his loss under all these insurance, he will obviously make a profit out of
loss. This will be an infringement of the principle of indemnity. Common Law has,
therefore, evolved the doctrine of contribution whereby the insured is prevented from
recovering more than his loss, despite his having several insurance on the subject
matter.
 Subrogation: The principle of indemnity seeks to prevent the insured from making
profit out of loss. However, it may so happen that that the insured may recover his
loss under his policy and he may also have rights against third parties. If, after the
insurance claim is settled, the insured is allowed to enforce his rights against third
parties and to retain whatever damages he receives from them, he will certainly make
a profit and the principle of indemnity will be infringed.
Common Law has therefore, evolved the doctrine of subrogation as corollary to the
principle of indemnity. Subrogation may be defined as the transfer of rights and
remedies of the insured to the insurers who have indemnified the insured in respect of
the loss. The Common Law right of subrogation is implied an all contracts on
indemnity, as it arises only after payment of loss.
 Utmost Good Faith: In all General Insurance contracts we know that a property or
interest or liability or life is offered for insurance and the insured has to take decisions
on the acceptance of the proposal. If he decides to accept the proposal a premium
commensurate with the risk has to be charged. To enable him to take necessary
decision in this regard, the insurer must have certain facts about the risk offered.
These facts influence the judgment of the insurer in deciding about the acceptance or
otherwise of the risk and the rate of premium to be charged, if accepted. Such facts
are known as material facts.

NATURE OF INSURANCE CONTRACTS
When the insured pays the premium and the insurers accept the risks, the contract of
insurance is concluded. The policy issued by the insurers is the evidence of the contract. The
contract of insurance, like any other contract, for example a contract for the sale of goods, is
subject to the general law of contract as embodied in the Indian Contract Act,1872.
According to this Act, a contract must have certain essential features in order to make it
legally valid and enforceable.
The following are the essential elements:
a) Offer and acceptance: Usually, the offer is made by the proposer, and acceptance made
by the insurer.
b) Consideration: This means that the contract must involve some mutual benefit to the
parties. The premium is the consideration from the insured and the
promise to indemnity is the consideration from the insurers.
c) Agreement between the parties: Both the parties should agree to the same thing in the
same sense.
d) Capacity of the parties: Both the parties to the contract must legally competent to enter
into the contract. For example, minors cannot enter into insurance
contracts.
e) Legality: The object of the contract must be legal and the contract should not violate any
legal requirements. E.g. no insurance can be had for smuggled goods.

Risk
Reasonable or not, risks are inescapable in business. Every business venture is

something of a gamble, because the possibility of loss is as real as the prospects for profits.
And even though managers do everything possible to ensure that their business succeeds,
they cannot guard against every conceivable form of risk.
Pure Risk versus Speculative Risk
 Pure Risk: Events representing the kind of risk that no business can predict or
escape, known as Pure Risk, it is the threat of a loss without the possibility of gain. In
other words, a disaster such as avalanche or fire is costly for the business it strikes,
but the fact that no disaster occurs contributes nothing to a firm's profit.
 Speculative Risk: It is the type of risk that offers the prospect of making profit - and
prompts people to go into business in the first place. Every business accepts the
possibility of losing money in order to make money.
Approaches to Risk Management
Risk Management is the process of reducing the threat of loss due to uncontrollable events.
Steps in selecting a risk management approach:
 To identify all the things those can possibly go wrong. ·
 To consider the probability that an event will occur.

Techniques of Risk Management
1. Avoiding the Risk: When a company avoids risk, it eliminates the possibility that a
particular event will occur. To avoid the possibility of a suit, for example, not to
produce any products -which would, of course, eliminate both the threats of a
lawsuit and the opportunity to profit. With rare exceptions, avoiding risk entirely
is extremely difficult.
2. Reducing Risk: A more practical approach is to reduce the risk by taking precautions.
Risk reduction is an important element in most companies' approach to risk
management. Typical precautions include putting safety locks on doors to prevent
robberies, installing overhead sprinklers to minimize fire damage, and periodic
checking motor vehicles to prevent accidents.
3. Assuming risk: Many companies draw on current revenues or set aside a "Contingency
Fund" to cover unexpected losses. Setting aside money on regular basis could be
cheaper than purchasing insurance. Moreover, the company can earn interest on
the reserved cash. Such assumption of risk is also called self-insurance or risk
retention.
4. Transferring the risk: Most companies still rely on outside insurance firms for financial
protection against catastrophic losses. In buying insurance, companies transfer the
risk of loss to an insurance firm, which agrees to pay for certain types of losses. In
exchange, the insurance firm collects a fee known as a premium.

Insurable and Uninsurable Risks:
 Insurable risks: An insurable risk - one that an insurable company will cover
- Generally meets the following requirements. The peril insured against must not be
under the control of the Insured. This means, of course that insurer do not pay for
losses that are intentionally caused by an insured, caused at the Insured's direction, or
caused with the insured's collusion. For example, a fire insurance policy excludes loss
caused by the Insured’s own arson. It does, however, include loss caused by an
employee's arson. Losses must be calculable, and the cost of insuring must be
economically feasible. To operate profitably, insurance companies must have data on
the frequency of losses caused by a given peril. If this information covers a long
period of time and is based on a large number of cases, Insurance companies can
usually predict quite accurately how many losses will occur in the future. For
example, the insurance companies to fix up the rate of premium of Personal Accident
Insurance may use the information of the number of people who will die each year in
India in accidents. The peril must be unlikely to affect all insured simultaneously.
Unless an insurance company spreads its coverage over large geographic areas or a
broad population base or different classes of Insurance, a single disaster might force it
to pay out all its policies at once. The possible loss must be financially serious to the
Insured. An Insurance company could not afford the paperwork involved in handling
numerous small claims of a few Rupees each. As a result, many policies have a clause
specifying that the insurance company will pay only that part of a loss greater than an
amount - the deductible or excess - stated in the policy. The excess represents small
losses that the Insured has to absorb.

INDUSTRY PROFILE
Origin of Life Insurance
Life Assurance was born in England when the first policy providing temporary cover
for a period of 12 months was issued as easy as 1583 A.D. The Amicable Society started
granting fluctuating sum on death since 1705 and a fix sum since 1757, With the
development of mortality tables, the life Assurance acquired a scientific character. The
Equitable Society founded in 1762 was the first Society established on scientific basis.
Origin of Life Assurance In India
In India, after failure of two British companies, the European and the Albert in 1870,
which attempted writing business on Indian lives, first Indian Life Assurance Society was
formed in the same year called Bombay Mutual Assurance Society Ltd. It was followed by
the Oriental Life Assurance Company Limited in 1874, Bharat in 1896 and Empire of India
in 1897. The Idea of insurance was born out of a desire of the people to share loss of an
individual by many. Originally it restricted to forms other than life assurance. It started with
Marine Insurance, where the losses on account of perils of sea were shared by all who were
engaged in trade. Reference to some forms of insurance, is found in the codes of Hammurabi,
Manu (Manav Dharma Shastra). The word `Yogakshema’ is used in the Rig Veda suggesting
that some form of community insurance was practiced by the Aryans in India over 3000
years ago. In India during Buddhist period burial societies existed which were mutual in their
character and used to help a family by building a house, protecting the widow, marrying the
girls.
The Swadeshi Movement of 1905 provided impetus to the formation of several

companies such as the `Hindustan Cooperative’, the `United India’, the `Bombay Life’, the

`National’. Further in the wake of freedom movement number of companies such as the
`New India’, the `Jupiter’ the `Lakshmi’ emerged.
The Government began to exercise a certain measure of control on Insurance business

by passing the `Insurance Act’ in 1912. For controlling investment of funds, expenditure and
management, a comprehensive Act was passed known as `The Insurance Act 1938’. For
controlling the affairs, the office of Controller of Insurance was established. The act was
extensively amended in 1950.
In the year 1955, approximately 170 Insurance Offices and 80 Provident Fund
Societies had been registered for transacting Life Assurance business in India. There were,
however, no full guarantees to the policyholders. The concept of trusteeship was lacking.
Many insurance companies went into liquidation. There were malpractices in insurance
business. For achieving the following purposes it was felt necessary to nationalize the
insurance business in India. To provide security to the policyholders
 To utilize the funds for nation-building activities.
 To avoid cut throat competition
 To abolish mal-practices
 To spread the insurance message to the rural areas.
The first step in this direction was taken by the Government of India by issuing the
Life Insurance (the Emergency provisions) Ordinance, 1956 on 19th January, 1956. The then
Finance Minister, Shri C. D. Deshmukh mentioned the purpose of nationalisation as reaching
the goal of socialistic pattern of society, rendering genuine service to the people in the rural
area. The Life Insurance
Corporation Act (Act XXXI of 1956) was passed by the Parliament in June 1956
which came in force on 1st July 1956. The Life Insurance Corporation of India came into
existence on 1st September 1956.

INSURANCE SECTOR REFORMS
Having looked at the insurance sector, let us look at the efforts made by the
government to make the industry more dynamic and customer friendly. To begin with, the
Malhotra committee was set up with the objective of suggesting changes that would achieve
the much required dynamism.
The Malhotra Committee Report
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI

Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and
recommend its future direction. In 1994, the committee submitted the report and gave the
following recommendations:
Structure
 Government stake in the insurance Companies to be brought down to 50%
 Government should take over the holdings of GIC and its subsidiaries so that
these subsidiaries can act as independent-corporations
 All the insurance companies should be given greater freedom to operate
Market Regulations:
 Private Companies with a minimum paid up capital of Rs.1bn should be

allowed to enter the industry

 No Company should deal in both Life and General Insurance through a single
entity
 Foreign companies may be allowed to enter the industry in collaboration with

the domestic companies
 Postal Life Insurance should be allowed to operate in the rural market
 Only one State Level Life Insurance Company should be allowed to operate in
each state
 Regulatory Body
 The Insurance Act should be changed
 An Insurance Regulatory body should be set up
 Controller of Insurance (Currently a part from the Finance Ministry) should be

made independent Investments
 Mandatory Investments of LIC Life Fund in government securities to be

reduced from 75% to 50%
 GIC and its subsidiaries are not to hold more than 5% in any company (There
current holdings to be brought down to this level over a period of time)
Customer Service
 LIC should pay interest on delays in payments beyond 30 days
 Insurance companies must be encouraged to set up unit linked pension plans
 Computerization of operations and updating of technology to be carried out in

the insurance industry
Overall, the committee strongly felt that in order to improve the customer services and
increase the coverage of the insurance industry should be opened up to competition.

But at the same time, the committee felt the need to exercise caution as any failure on the
part of new players could ruin the public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the minimum
capital requirement of Rs.1 bn. This amount is not very high for foreign firms, as it translates
to only about US$25 million. Further, to date it is unclear
Whether equity should be payable in one go or should be brought in as installments. Also, the
foreign equity participation was to be restricted to only 40%.
The committee felt the need to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act as independent companies with economic
motives. For this purpose, it had proposed setting up an independent regulatory body.
The industry and analysts find that there is lack of clarity in the following areas:-
 Though coverage of rural areas was to be made compulsory, it raises the

question as to who would subsidies the rural policies as they would be difficult to
service and hence costs will go up.
 There is some confusion with respect to investments. Where should the funds
be invested? Currently 70% of the funds with LIC & GIC are invested in Government
securities. Would new entrants be allowed to invest in GOI securities?
 The report also does not enumerate exit options available to the new entrants.
In the event of failure, there should be an arrangement made whereby the other
Companies pool in to bail the customers, who in all probability would be middle class
individuals.
POTENTIALITY OF INSURANCE IN INDIAN MARKET
Marketing inefficiency of general insurers has kept society in dark even when so
many personal as well as commercial lines of insurance covers are available for them.
Insurers have failed to identify the need of the individual risk factors and thereafter selecting
proper market segments and developing demand of these needs by adopting proper marketing

mix. There is great scope of commercial line of insurance as we are developing at a very fast
rate but the potentiality and scope of personal lines of insurance is vast as this areas is still
under-tapped. Product designing and pricing is also simple and growth of this portfolio is
guaranteed in this country which has a base of over 100 crore population, where there are
about 25 crore dwellings, 20 crore schools, colleges and educational institutions and about 5
crore small and big shops. But despite this the Indian insurers share in personal line of
business is very low or negligible.
There are enormous growth opportunities to Indian as well as foreign insurers

because of such a huge base of population there is ample scope to introduce the new line of
covers as per the changing needs and to increase the per capita share of the insurance by
encouraging risk transfer by investing small portion of the savings of the individuals.
By opening up the sector far more opportunities has came up in insurance and
reinsurance market. After privatization of this sector presence of the foreign players has also
increased. Therefore the insurers, in time to come, will have to change their attitude from
selling of the product to marketing of the protection needs of the insured and for this what is
required is:
 Effective product planning
 Suitable pricing
 Efficient promotion and physical distribution.
 Proper physical evidence.
 Good and well trained sales force.
 Your Plans, Your Dreams & Their Future:
The Essence of Life Insurance
Your family counts on you every day for financial support: food, shelter,
transportation, education, and much more. You and your spouse have plans for your future
and dreams for your family: another child, a bigger home, a new business, college education,
travel, retirement… Life insurance is all about making sure your family has adequate

financial resources to make those plans and dreams come true, if you were to die
prematurely. And just as your spouse and children (as beneficiaries) count on you, you count
on your spouse. That's why coverage for your spouse is also important. If he or she were to
die unexpectedly, you would feel similar financial strains. This is especially true today, with
so many "double income" families.
When Should Someone Invest?
The answer, of course, is right now! Since no one can tell when the best time to invest
is, it is whenever you have the money! One should first invest in any plans for which tax-
deductible contributions can be made because these types of savings reduce current taxes.
Then, any more surplus funds should be invested in a variable annuity, especially in equities
so as to get the maximum growth of the capital.
Insurance as a Safety Net
The function of insurance is to protect you against losses you can't afford. This is
done by transferring the risks of a person, business, or organization -- the "insured" -- to an
insurance company, or "insurer." The insurer then reimburses the insured for "covered"
losses -- i.e., those losses it pays for under the policy's terms.
As the insurance consumer, you pay an amount of money, called a premium, to the insurer to
transfer the risk. The insurer pools all its premiums into a large fund, and when a
policyholder has a loss, the insurer draws funds from the pool to pay for the loss. Life is full
of unexpected events that can create large financial losses. For example, whenever you drive,
it is possible that you may have a costly accident. Risks affect you by causing worry about
potential loss and how to deal with the consequences. Insurance reduces anxiety over a
possible loss and absorbs the financial brunt of its consequences. However, while insurance
coverage is essential, how much and what type of insurance people need differ with each
individual. You must decide how much risk you're willing to tolerate without insurance. For
example, benefits for disability policies typically begin after a waiting period of one to six

months. Therefore, you should ensure that you have some form of coverage or financial
resources before the policy period begin.
Where Can I Get Insurance?
Since insurance can be expensive, it makes sense to get more than one price quote for
coverage. At one time, we in India had no option but the nationalized insurance companies
like LIC, GIC, etc. Now several private players, often with foreign tie-ups, are entering the
fray. There are now several companies selling any one type of insurance, each with its own
price structures, coverage, and policy exclusions. To help consumers choose among the
various types of coverage’s, companies train sales representatives in the technical points of
their insurance products. Many representatives work for just one insurance company. There
are also brokers and independent agents -- self-employed business people who sell insurance
on commission for several insurers -- who claim they can comparison shop to get the best
coverage’s for consumers. Certain banks also sell insurance.
What Type of Insurance Agent Should I Trust?
With multiple players in the life insurance field now, a choice should be first made
regarding the insurance company before choosing an agent. To determine a company's
willingness to pay claims, ask a policyholder who has filed several claims. Obviously, the
more claims an insurer has handled with no complaints, the more likely that the company
will provide you with good service. Barring LIC, the remaining players in life insurance are
still new in the field, so this kind of information will not be available for another few years at
the least. It remains to be seen how the newer players will perform on the claims front, but
given the regulatory framework and their strong parentage, their performance should be
comparable, if not better than LIC.

It is quite imperative that your insurance agent be competent and professional enough
to clearly understand your insurance requirements and suggest a suitable scheme. Also, with
insurance companies offering varying rate of commissions on different schemes, there is a
likelihood that a 'not-so-professional' agent may be tempted to recommend a scheme which
pays him a higher commission, though it may not be very suitable for your needs. This is
especially so in the case of LIC, sole provider of life insurance in our country till recently,
where the eligibility criteria are not very rigorous and very often the level of knowledge and
competence of the agents leaves a lot to be desired. The new players seem to be much more
stringent in appointing agents and more committed in providing training to them. In today's
context, especially in case of LIC, it may be advisable to go in for an agent who comes
recommended from one of your friends, relatives or associates. Further, the agent should be
able to provide you with a comparison of multiple schemes and also explain them in simple
terms, so that you are are able to make an informed decision. In case an agent is not inclined
to spend the time and resources to provide you with relevant information and solve your
queries, it may be better to give a go-by to such a person and start looking for a new agent.
The market is becoming increasingly competitive and it should not be a difficult task to find
a good agent.
Life Insurance Players:
 Bajaj Allianz General Insurance: Bajaj Allianz General Insurance Company

Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany.
Both enjoy a reputation of expertise, stability and strength.
 Birla Sun Life Insurance: The Aditya Birla Group contributes its knowledge of the
Indian market while Sun Life Financial contributes global expertise in the areas of
protection and wealth management.
 HDFC Standard Life Insurance: HDFC and Standard Life have a long and close
relationship built upon shared values and trust. Providing long term financial security
to policy holders will be the constant endeavor.

 ICICI Prudential Life Insurance: The Company was granted Certificate of
Registration for carrying out Life Insurance business, by the Insurance Regulatory
and Development Authority.
 ING Vysya Life Insurance: ING, the world’s second largest life insurance company
together with Vysya Bank, one of India’s leading private sector banks, forms ING
Vysya Life Insurance.
 Life Insurance Corporation (LIC): Life Insurance Corporation (LIC) has been one
of the pioneering organizations in India who introduced use of Information
Technology in their business.
 MetLife India: The Metropolitan Life Insurance Company is the number one insurer
in the U.S. It is helping build financial independence for its customers.
 Oriental Insurance: The Oriental Insurance Company Ltd. (OICL) is one of the
leading General Insurance companies in India and is a subsidiary of the General
Insurance Corporation (GIC) of India.
 Royal Sundaram Alliance Insurance: Royal Sundaram marks the coming together
of Sundaram Finance, one of India’s most respected and trusted finance companies,
and Royal and Sun Alliance, one of the largest insurance groups in the world.
 Tata AIG Insurance: Life insurance & general insurance for individuals &
corporates by Tata AIG. This site will guide you on how to capitalize on
opportunities and protect against uncertainties.

Tax Benefits
Life Insurance and Tax Benefits:
Max New York Life’s insurance plans can be used for protection, investment and tax
planning. There are two kinds of income tax benefits available to individuals:
Deductions
Tax Deductions
Sec 80C
Sec 80D
Exemptions
Exemption from the proceeds
Commuted pension: 10(10A)(iii)
One-third of the Value on vesting date would be tax free
Life Insurance Proceeds: 10(10D)
 This includes any sum received from insurance policy as maturity proceeds, death
benefits
 Proceeds of keyman insurance are taxable
 The single premium policies would be taxed as income in the year it is received
assuming that premium exceeds 20% of the sum assured.

Please note that an insurance policy issued after 1st April, 2003 with respect to which
the premium payable for any of the years during the term of the policy exceeds 20% of the
actual capital sum assured, will not be eligible for Sec 10(10D) benefit. This won't be
applicable for any sum received on the death of a person.
LIFE INSURANCE PRODUCTS
WHOLE LIFE POLICY
These are low-cost insurance plans where the sum assured is payable on the death
of the insured. A typical whole life policy runs as long as the policyholder is alive. In other
words, the risk is covered for the entire life of the policyholder, which is why it is known as
whole life policies.
The policy money and the bonus are payable only to the nominee of the beneficiary
upon the death of the policyholder. The policyholder is not entitled to any money during his
or her own lifetime, i.e. there is no survival benefit.
Whole life policies are fairly rigid and inflexible and are suitable only in a few, very
specific cases. Whole Life Policy can be a good initial policy to buy since its cost is very
low. That is an important consideration when one is just starting a career.
ENDOWMENT POLICY
Under these plans, the sum assured is pay-able on the maturity of the policy or in
case of death of the insured individual before maturity of the policy. Endowment policies
cover the risk for a specified period at the end of which the sum assured is paid back to the
policyholder along with the entire bonus accumulated during the term of the policy. It is this
feature - the payment of the endowment to the policyholder upon the completion of the

policy’s term -, which rightly accounts for the popularity of endowment policies. The
original sum assured and the accumulated bonus - received back comes handy from the
endowment can either be used for buying an annuity policy to generate a monthly pension for
the whole life, or put it in any other suitable investment of his choice. As compared to whole
life policies, the premium rates for endowment policies are higher and the bonus rates are
lower. On the plus side, these polices offer an endowment - representing a return on his
premium payments payable to him in his own lifetime when the policy comes to an end.
MONEY BACK POLICY
Unlike ordinary endowment insurance plans where the survival benefits are payable
only at the end of the endowment period, money back policies provide for periodic payments
of partial survival benefits during the term of the policy, of course so long as the policy
holder is alive.
An important feature of this type of policies is that in the event of death at any time
within the policy term, the death claim comprises full sum assured without deducting any of
the survival benefit amounts, which may have already been paid as money-back components.
Similarly, the bonus is also calculated on the full sum assured
Under money back policies premiums can be paid as per the insurance company’s
policy. These could be quarterly, half yearly or annually. The premiums for these policies are
payable for the selected term of years, or till death if it occurs earlier.
By buying such policies one can receive income at regular intervals other than the
risk cover it provides. Also a good amount of bonus on the full sum assured is quite a good
bargain Individual before expiry of the policy.
TERM POLICY:
Term policies; cover only the risk during the selected term period. If the policyholder
survives the term, the risk cover comes to an end. A Term plan is designed to meet the needs

of people who are initially unable to pay the larger premium required for a whole life or an
endowment assurance policy, but they hope to be able to pay for such a policy in the near
future. No surrender, loan or paid-up values are granted under these policies because reserves
are not accumulated. If the premium is not paid with the days of grace, the policy will lapse
without acquiring a paid-up value.
However, a lapsed policy may be revived during the lifetime of the life assured but
before the expiry of the period of two years from the due date of the first unpaid premium on
the usual terms. Accident and / or Disability benefits are not granted on policies under the
Term plan.
ANNUITY (PENSION PLAN)
These plans provide for either immediate or deferred pension for life. The pension
payments are made till the death of the annuitant (per-son who has a pension plan) unless the
policy has provision of guaranteed period.
An annuity is an investment that one make, either in a single lump sum or through
installments paid over a certain number of years, in return for which one receive back a
specific sum every year, every half-year or every month, either for life or for a fixed number
of years.
After the death of the annuitant or after the fixed annuity period expires for annuity
payments, the invested annuity fund is refunded, perhaps along with a small addition,
calculated at that time.
Annuities differ from all the other forms of life insurance discussed so far in one
fundamental way - an annuity does not provide any life insurance cover but, instead, offers a
guaranteed income either for life or a certain period.
Typically annuities are bought to generate income during one’s retired life, which is
why they are also called pension plans. Annuity premiums and payments are fixed with
reference to the duration of human life.
JOINT LIFE POLICY

Joint life policies are similar to endowment policies in as much as these policies also
offer maturity benefits to the policyholders, apart form covering the risks as all life insurance
policies.
But these are categorized separately as these cover two lives together thus offering a unique
advantage in some cases; notable, for a married couple or for partners in a business firm.
Under a joint life policy the sum assured is payable on the first death and again on the
death of the survivor during the term of the policy. Vested bonuses would also be paid
besides the sum assured after the death of the survivor. If one or both the lives survive to the
maturity date, the sum assured as well as the vested bonuses are payable on the maturity date.
The premiums payable cease on the first death or on the expiry of the selected term,
whichever is earlier. Accident benefits equivalent to the sum assured are available under this
plan on the first death. However, if both lives are covered under Double Accident Benefit
(DAB), the surviving life is covered under DAB until the end of the policy year, in which the
first life dies under the cover of the policy.
These benefits are available with respect to both lives if
 Both lives perish simultaneously owing to an accident. To avoid such an eventuality,

nomination is allowed under the policy OR
 Both die within the specified period as a result of the same accident OR
The second life also dies in the same policy year as result of another accident. To avoid such
an eventuality, nomination is allowed under the policy.
Particularly for couples - Joint life policies provide dual-purpose income and risk protection
for both belonging to every income group and class of society.
Under a joint life plan though the premium payment stops after the first life's death, bonuses
continue to accrue on the basic Sum Assured till Maturity Date or till the death of the second
life, if earlier.

GROUP INSURANCE
Group Insurance offers life insurance protection under group policies to various
groups such as employer-employee, professionals, co-operatives, weaker sections of society
etc. It also provides insurance coverage to people under certain approved occupations at the
lowest possible premium cost. Besides providing insurance coverage, it also offers group
schemes to employers, which provide funding of gratuity and pension liabilities of the
employer’s Group insurance plans have low premiums. Such plans are particularly beneficial
to those for whom other regular policies are a costlier proposition. Group insurance plans
extend cover to large segments of the population including those who cannot afford
individual insurance. As such the premia one need to pay is comparatively lower and at the
same time one can avail of insurance benefits.
The main features of the schemes are low premium and simple insurability
conditions. Premiums are based upon age combination of members, occupation and working
conditions of the group.
A number of group insurance schemes have been designed for various groups. These
include employer-employee groups, associations of professionals (such as doctors, lawyers,
chartered accountants etc.), and members of cooperative banks, welfare funds, credit
societies and weaker sections of society. Creditor-Debtor groups are also offered group
insurance schemes. Group insurance schemes providing uniform cover can be granted to
outstanding loans. These groups are Members of primary housing societies where housing
loans are granted by State Apex housing societies, borrowers granted loans by Institutional
agencies in Public/Joint Sectors for housing purposes and borrower members of cooperative
societies/banks formed by employees of the same employers
SPECIAL PLAN
Special plans are insurance policy plans available from the national insurance
providers to serve the needs of citizens that cannot be commonly classified or segregated.
These special plans are designed to satisfy needs ranging from debt-clearance in event of the
death of the insured to financial aid in the event of a medical mishap.

Special plans also provide financial assistance for handicapped dependants as well as
emergency surgery required if and when a medical condition arises. Since special plans are
designed for people with diverse and specific needs, the average citizen may not necessarily
need or use them. Yet, in the normal course of life, situations may arise when one may need
to provide for unplanned or unexpected contingencies and mishaps.

IRDA ACT 1999
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority
(IRDA, which was constituted by an act of parliament) specify the composition of Authority.
The Authority is a ten member team consisting of :
 a Chairman;
 five whole-time members;
 four part-time members,
(all appointed by the Government of India)
DUTIES, POWERS AND FUNCTIONS OF IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.
 Subject to the provisions of this Act and any other law for the time being in force, the
Authority shall have the duty to regulate, promote and ensure orderly growth of the
insurance business and re-insurance business.
 Without prejudice to the generality of the provisions contained in sub-section (1), the
powers and functions of the Authority shall include –
1. Issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;
2. protection of the interests of the policy holders in matters concerning

assigning of policy, nomination by policy holders, insurable interest, settlement of
insurance claim, surrender value of policy and other terms and conditions of
contracts of insurance;
3. Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;
4. Specifying the code of conduct for surveyors and loss assessors;

5. Promoting efficiency in the conduct of insurance business;
6. Promoting and regulating professional organizations connected with the

insurance and re-insurance business;
7. Levying fees and other charges for carrying out the purposes of this Act;
8. calling for information from, undertaking inspection of, conducting enquiries

and investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organizations connected with the insurance business;
9. control and regulation of the rates, advantages, terms and conditions that may
be offered by insurers in respect of general insurance business not so controlled
and regulated by the Tariff Advisory Committee under section 64U of the
Insurance Act, 1938 (4 of 1938);
10. Specifying the form and manner in which books of account shall be
maintained and statement of accounts shall be rendered by insurers and other
insurance intermediaries;
11. Regulating investment of funds by insurance companies;
12. Regulating maintenance of margin of solvency;
13. Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;
14. Supervising the functioning of the Tariff Advisory Committee;
15. specifying the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organizations referred to in
clause (f);
16. Specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector; and
17. Exercising such other powers as may be prescribed.

PLAYERS IN INDIAN INSURANCE INDUSTRY
LIFE INSURERS
Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:
 Life Insurance Corporation of India (LIC)
GENERAL INSURERS
 General Insurance Corporation of India (GIC) (with effect from Dec'2000, a

National Reinsure)
GIC had four subsidiary companies, namely ( with effect from Dec'2000, these subsidaries
have been de-linked from the parent company and made as independent insurance
companies.
 The Oriental Insurance Company Limited
 The New India Assurance Company Limited,
 National Insurance Company Limited
 United India Insurance Company Limited.

Yr: 2000-2007: Insurance Industry in the year 2000-2001 had 15 new entrants, namely:
Life Insurers:
S.No. Name of the Company
1 Max New York Life Insurance Co. Ltd.
2 HDFC Standard Life Insurance Company Ltd.
3 ICICI Prudential Life Insurance Company Ltd.
4 Om Kotak Mahindra Life Insurance Co. Ltd.
5 Birla Sun Life Insurance Company Ltd.
6 Tata AIG Life Insurance Company Ltd.
7 SBI Life Insurance Company Limited
8 ING Vysya Life Insurance Company Private Limited
9 Allianz Bajaj Life Insurance Company Ltd.
10 Metlife India Insurance Company Pvt. Ltd.
11 Reliance Life Insurance Company Ltd.
12 Shriram Life Insurance Company Ltd.
13 Sahara India Life Insurance Company Ltd.
14 Bharti AXA Life Insurance Company Ltd.
15 Aviva Life Insurance Company Ltd.
General Insurers:
S.No. Name of the Company

1 Royal Sundaram Alliance Insurance Company Limited
2 Reliance General Insurance Company Limited.
3 IFFCO Tokio General Insurance Co. Ltd
4 TATA AIG General Insurance Company Ltd.
5 Bajaj Allianz General Insurance Company Limited
6 ICICI Lombard General Insurance Company Limited.
6.3 INSURANCE BUSINESS:
Insurance business is divided into four classes :
 Life Insurance
 Fire Insurance
 Marine Insurance
 Miscellaneous Insurance.
Life Insurers transact life insurance business; General Insurers transact the rest.
No composites are permitted as per law
Legislation (as on 1.4.2000):
Insurance is a federal subject in India. The primary legislation that deals with insurance
business in India is:

Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999.
Insurance Products (as on 1.4.2000) (for latest information get in touch with the current
insurers – website information of insurers is provided at the web page for insurers):
Life Insurance:
Popular Products: Endowment Assurance (Participating) and Money Back (Participating).

More than 80% of the life insurance business is from these products.
General Insurance:
Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is
compulsory.
Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance
products.
New products have been launched by life insurers. These include linked-products. For
details, please visit the websites of life insurers.

FOUNDED : 1985
TYPE : PUBLIC LTD COMPANY
HEADQUARTERS : HYDERABAD
KEY PERSON : RAJESH SUD
CHAIRMAN
NO OF SHARE : 26,000
HOLDERS
Max India Limited is a multi-business corporate, driven by the spirit of Enterprise,

focused on Knowledge, People and Service oriented businesses of Life Insurance,
Healthcare and Clinical Research. Max also maintains interests in Specialty Plastic
Products for the packaging industry and Healthcare Staffing.

Partnership with the most respected names in the world.
 Healthcare Services : Harvard Medical Institute, USA

 Life Insurance : New York Life International, USA
 Communication Services : Lockheed Martin Global
Telecommunications, USA
 IT Enabled Services : Mind Crossing Inc. , USA
 Mobile Telephone Services : Hutchison Telecommunications ltd. ,
Hong Kong

Each group companies has tremendous potential.
 Max New York Life Insurance Company Limited - www .maxnewyorklife.co m

1. Analjit Singh-promoted Max India group has a 74:26 JV with New York Life in
life insurance.
2. MNYL ranked amongst the top in quality of services among private life
insurance companies in India.
3. MNYL ranked #4 amongst private life insurers in FY08.
4. Grossed premium income growing at average 70-80% YoY.
 Max Health Insurance

1. 74:26 JV in the health insurance domain with Bupa Financial. Max India
holds 74% in JV.
 Max Healthcare - www .maxhealt hcare.in

1. Max Healthcare (MHC) provides comprehensive, integrated and
world-class healthcare services with state-of-art infrastructure designed
in accordance with international norms. The Max India group also holds a
70% in Max Healthcare.
2. Max Healthcare owns and operates a network of five hospitals,
two specialty medical centers and nine clinics/implants located in New
Delhi and surrounding NCR region. They are planning to open couple of
more hospitals in FY09.
 Neeman Medical International - www.neeman-medical.com

1. Neeman Medical International (NMI) is a contract research organization
that provides a broad range of clinical research services, to a cross
section of pharmaceutical and biotechnology companies as well as other
contract research organizations. Max holds 100% in Max Neemann
Medical International.

Max Health staff - www.maxhealthstaff.com
1. Max Health Staff (MHS) provides value added end-to-end placement
solutions of healthcare resources in the U.S.
2. Currently, MHS provides solutions relating to nursing staff, through
strategic alliances with multiple healthcare staffing companies in the
U.S.
Max Specialty Packaging - ht tp:// www .maxspeciality products.com

1. Max Specialty Products (MSP) is a fully owned business unit of Max
India Limited. The organization specializes in the manufacture of a
wide range of sophisticated Barrier and Packaging BOPP films.
Max India seei ng opportunity in distress
 More investment, more expansion in pipeline.
1. Total investment plan of Rs 3000cr by 2012 - Delhi-based Max I ndia

Group, along with its joint venture partners across its lines of businesses,
is set to invest an additional Rs 3,000 crore by 2012. Of the Rs 3,000
crore, nearly Rs 2,000 crore will be brought in by the Max I ndia group
alone, while the balance Rs 1,000 crore will be provided by the joint
venture partners for its various lines of business.
2. Health insurance JV - Recently floated health insurance JV with Bupa

Finance of UK where Bupa Finance will hold 26%. The balance stake would
be held by the Max I ndia group. The company has been floated with an
initial capital of Rs 100 crore while peak capital commitment is about Rs
400-450 crore.

3. Max Healthcare - Bed capacity for this segment is slated to almost double to
1,500 beds by December 2011 from the current level of 800 at an
investment of Rs 400 crore. Expansion plans include a 255 bed facility at
Patparganj, expected to be launched by October 2009, additional 90 beds
at the Max Hospital at Saket, two 300-bed Max Hospitals at Shalimar Bagh
and Greater Noida and another 150-bed hospital at Dehradun.
4. Max New York Life Insurance - The Max India group will invest an
additional Rs 1,320 crore in the life insurance venture — Max New
York Life I nsurance — which will see its capital base rise to Rs 3,600
crore from the present level of Rs 1,782 crore.
5. Max Specialty Products — the manufacturing arm of the group — is

currently in the process of setting up its third thermal line which is
expected to be operational by January 2009. Plans include tripling
capacity of the leather finishing foil business by February 2009 and a
fourth BOPP (Biaxially Orientated Polypropylene) production line with a
capacity of 20,000 TPA by 2010.
Highest growth in premium (Sept’07 to Sept’08)
 Being FIR ST is a differentiating idea.



1. Max I ndia focus is on Life I nsurance, they don’t have any Non-Life
insurance part, reason is very clear, life premium contributes more than 85%
of total premium hence focus on life insurance.
2. Max I ndia (I ndividual Non-Single Premium) grew 66% compare to

22% growth shown by I CI CI prudential.
3. Max I ndia which holds 76% in MNYLI is not yet identified by big
guys (who?), with group Mcap ~ 2000Cr, it has great potential to grow bigger
4. I n insurance sector conservative players wins the race, & MNYLI is

a smart, innovative but conservative player. One must remember that any
company small or big who are pioneer in “Me First” concept will create
wealth. Just like Reliance in Equity cult, I nfosys in ESPO, Pantaloon in lowest
price, Max I ndia in “Max Vijay”.
5. Even in the current economic condition we can see only two
companies still expanding their operation 1s t one is pantaloon from retail
sector and 2nd one is Max I ndia from I nsurance.
Aggressive growth plan in-line with performance
 Max New York Life crosses over Rs. 3,000 crore in collected
premium and adds 1 million policyholders in 2008.
1. The company has also acquired more than 1 million policies since
January 2008, and is ranked number 4 amongst private life insurers in

terms of number of policies sold (YTD September). The Assets Under
Management have also increased to over Rs.4,185 crore on October 31,
2008 as compared to Rs. 2,851crore on October 31, 2007.
2. I t has crossed Rs. 3,000 crore in collected premium since

January 2008 recording a growth of 61% over the corresponding period
last year. Of this, first year premiums contributed Rs. 1,653 crore, while
earnings from renewal premium stood at Rs 1,375 crore.
 Max New York Life has already embarked on an aggressive growth

strategy even in downturn of economy.
1. During the period January–July 2008, Max New York Life

Insurance has added more than 5,000 employees and now has over
11,000 employees. The company’s advisor strength is close to 50,000
agents. The company plans to significantly expand its distribution
footprint by opening more than 250 new offices every year for next four
years. The number of agent advisors is also expected to touch 3,00,000.
The growth in agency distribution will be complemented by strong
growth in partnership distribution. Another 700 offices will be opened
in emerging markets.
2. During the period January – October 2008, Max New York Life
Insurance has added more than 8500 employees and now has over 15,000
employees. The company agent advisors strength is now touching 61,500
agents.
Company restructured its joint-venture agree ment

 By doing this they have increased the valuation of the group company
MNYLI
1. During the quarter ended September 30, 2008, the Company

restructured its joint-venture agreement ("JVA") with New York Life I
international L LC, ("NYI L") w.r.t. MNYL. Under the amended JVA.
a. N YL I has an option for 8 years to increase its shareholding in MNYL by

24% up to a maximum of 50% subject to regulations.
b. The option can be exercised at a fair market value based formula, less
discount of 10%, against a preferential formula earlier.
c. The deposit of Rs 1740 million received from NYL I has been refunded as a
result of this amendment.
2. Max India has increased its economic interest in the JV from 50%
to around 71.4%. While Max I ndia owned 74% stake in the JV, N YL had the
right to raise its stake from 26% to 50% by paying close to par value.
Now, NYL will have to pay market related value for increasing its stake
(allowed 10% discount). Hence, they have raised the SOTP (Sum of the
Parts) by 50% to Rs256 owing to a 65% rise in the value of the insurance
biz. as we value Max I ndia’s share at 71.4% now (v/s 50% earlier). Value
of insurance biz. raised by 17%.
3. Max India became the first Indian life insurer to disclose its
embedded value (EV). As per MNYL, its EV increased by 96% in FY08 to
Rs13.2bn (US$330mn), in part owing to Rs3bn of capital infusion and NBAP

of Rs2.67bn (NBAP margin of 20.4%) and minimal negative variances.
While the rise in EV in FY09-10 may be modest as MNYL could see high
negative expense variance (due to rapid distribution ramp up – plans 6-
fold jump in agents, offices) and operating variance (owing to low returns)
the EV (4.7x FY08 ) surprised positively.
Huge Expansion Plan For Branches, Agents & Staffs
 From 475 offices, 61.5K agents and 15K staffs to 1600 offices, 3.5
lakhs agents & 25K staffs by 2012.
1. Max New York Life (I ndia) has increased its paid-up capital by
Rs 350 crore to fund its expansion plans in this fiscal. This new infusion,
approved by the board last week, will increase paid-up capital to Rs 1,782
crore. Max I ndia plans to increase its paid-up capital to Rs 3,600 crore by
the end of 2011-12.
2. The capital will be used for increasing the company’s presence

in the country by setting up more offices and employing more agents. At
present, they have 475 offices, 61,500 agents and 15,200. The company
recorded a 65% growth in first year premium income between April to
September this year.
3. Max New York Life is planning to hire around 14,000 employees and
30,000 agents in the current fiscal. By 2011-12, the company hopes to appoint
3,50,000 agents and increase its staff strength to 25,000. I t also plans to set
up around 900 offices in urban cities and 700 offices in Tier-I I and Tier-I I I
cities, by then.
4. The insurer, which expects to improve its premium income
four-to five fold by 2011, has sold about 5.77 lakh policies in the first

six months of the current fiscal. Max New York Life has so far sold 31
lakh policies on a sum assured of Rs 86,300 crore.
 N YL increasing the stake in its life insurance arm @ fair market value.
1. New York Life (NYL), plans to increase its stake in Max New York Life,
once the insurance sector FDI norms are liberalized. Presently, Max I
ndia holds a 74 per cent stake in Max New York Life I nsurance while
the balance is held by New York Life. The Union Cabinet last month
approved a Bill for hiking the F DI limit to 49 per cent from the current
26 per cent. The Bill will be introduced in Parliament in December.
2. Based on an agreement between Max I ndia and New York Life, the
latter has an option to buy an additional 24 per cent stake if the
regulator permits, the option can be exercised at a fair market value
based formula, less discount of 10%, against a preferential formula
earlier.

ABOUT NEW YORK LIFE
 FOUNDED : 1845
 TYPE : MUTUAL
 HEADQUARTERS : NEW YORK , USA
 KEY PEOPLE : TED MATHS , CEO
 INDUSTRY : INSURANCE - LIFE AND
HEALTH
 REVENUE : $ 18.37 BILLION (2008)
 Insuring Millions of Lives all over the Globe, for over 162 Years

 The company was founded in 1845 as the Nautilus Insurance Company in New York
City, with assets of just $17,000.
 Its first headquarters were at 112-114 BROADWAY ; the first president was JAMES
DEPEYSTER OGDEN .
 NOW THE COMPANY HAS ASSETS WORTH $216 BILLION
 Insuring Millions of Lives all over the Globe, for over 162 Years
 Providing Insurance Solutions Since 1845
 Strongly Rooted in the Commitment of …..
• Financial Strength,
• Integrity
• Humanity
 Has Never Failed in its Commitment to Deliver to its Policyholders despite having
Hit by World Wars, Famine, Drought and even the Great Depression
 Ranked 68 on Fortune 100, ahead of Coca Cola , Microsoft & McDonalds
 Ranked 2ND in Fortune’s Global list of ……
• “Most Admired Life Insurance Companies”
 Assets under Management – US $ 201 Billion (Rs. 8,90,456 Crores)
 Annual Revenues – US $ 25 Billion
 Annual Surplus & Reserves – US $ 11 Billion (Rs. 50,000 Crores)
New York Life Insurance Company had started to build the business in 1840 and a
Fortune 100 company founded in 1845, is the largest mutual life insurance company in the
United States and one of the largest life insurers in the world with more than USD$215
billion assets with more than USD$215 billion assets. According to Moody's, "New York
Life's rating reflects the company's good quality investment portfolio. Headquartered in New
York City, New York Life’s family of companies offer life insurance, annuities and long-

term care insurance. New York Life Investment Management LLC provides institutional
asset management and retirement plan services. Other New York Life affiliates provide an
array of securities products and services, as well as institutional and retail mutual funds.
The mission of New York Life is to maintain its superior 'financial strength', adhere
to the highest standards of 'integrity' and demonstrate 'humanity' by treating its customers,
agents and employees with compassion, consideration and respect.
As a leader in the insurance industry, New York Life continues to bring to its
operations new management concepts, advanced technologies, new distribution and training
systems and innovative insurance products.
FORTUNE
2006 : GLOBAL MOST ADMIRED COMPANIES

INSURANCE : LIFE & HEALTH
Industry
Rank Company Overall Score 2006 Score 2005 Rank
1). Northwestern Mutual 7.38 7.23 1

2). New York Life 7.25 7.05 2
3). Prudential Financial 7.06 6.81 3
4). TIAA-CREF 6.62 5.90 --
5). ING Group 6.27 6.32 5
6). MetLife 6.24 6.46 4
7). AXA 6.18 6.03 6
8). Aegon 5.67 5.80 7
9). Meiji Yasuda Life Insurance 5.57 4.62 14
10). Dai-ichi Mutual Life 5.52 4.65 13

11). Nippon Life Insurance 5.51 4.87 11
12). Sumitomo Life Insurance 5.20 4.82 16
13). Prudential PLC 5.17 4.79 8
14). Aviva 5.02 4.64 9
15). CNP Assurances 4.82 4.50 --
16). Assicurazioni Generali 4.75 4.67 15
From The March 8,2006 Issue
Key Dates:
1841: Nautilus Insurance Company is chartered to sell fire and marine

insurance.
1849: A product shift is marked by name change to New-York Life Insurance

Company.
1868: The company opens its first international office.
1892: A branch office system is implemented by company president

John A. McCall.
1905: New York state investigation of insurance industry results in new

regulations subsequently fought by New York Life.
1929: The company moves to Madison Avenue corporate headquarters.
1951: The first group insurance policies are issued.
1969: A separate entity is created to manage growing commercial and

residential real estate holdings.
1984: The company enters the financial services market.
1987: The company purchases one of the largest healthcare companies in the
nation.
1996: The company sells its healthcare operations.
2000: The company brings all asset management businesses under one roof.
Company History of NEW YORK LIFE COMPANY
New York Life Insurance Company is one of the largest insurance companies in the
United States and the world. Ranked as a Fortune 100 company, New York Life has provided
its policyholders with financial security and investment opportunities since 1841. As a
mutual company, New York Life is owned solely by its policyholders, to whom it pays
annual dividends and provides long-term coverage on a wide range of insurance products.
The company prospered during its first 100 years of operations, as the growth of the nation's
population and economy created an expanding market for life insurance. Since World War II
New York Life has maintained its competitive edge by diversification.
Building the Business: 1840s-50s
In 1840 New York State passed a law allowing a married woman to insure her
husband's life with immunity from having the benefits seized by his creditors. Such
legislation recognized the use of life insurance in a developing industrial economy and
widened its potential market beyond wealthy speculators.
New York Life has its origins in a charter granted by the New York state legislature
to Nautilus Insurance Company in 1841, for the sale of fire and marine insurance. The

company began issuing policies in April 1845 and soon decided to jettison its fire and marine
business in order to concentrate on life insurance. By 1849 the company was so securely
established in this new business that it petitioned the state legislature and had its name
changed to New-York Life Insurance Company.
Civil War Risks and Postwar Expansion: 1860s-90s
The Civil War presented the company with its first major crisis, since it had
developed a sizable southern business. President Abraham Lincoln's prohibition of commerce
with the Confederate states during the war cut off communication between the home office
and its southern policyholders, creating a host of problems, including lapsed payments and
unpaid claims. The company compensated for these losses, however, by issuing policies to
soldiers and civilians involved in combat. One of the few companies to take on such war
risks, New-York Life managed continued growth despite its southern losses. In fact, the
company sold more than half of the 6,500 new life insurance policies issued in New York
City in 1862.
After the war, New-York Life expanded quickly with the nation's booming economy.
The company recovered its southern business by paying benefits on death claims left
unsettled during the war and by allowing former customers to renew their lapsed
policies. New-York Life also became an international name during this era, opening offices
in Canada in 1868, Great Britain in 1870, Paris in 1884, Berlin in 1885, Vienna in 1887,
Amsterdam in 1891, and Budapest in 1894. by 1900 its growth in sales made it one of the
nation's three biggest mutual insurance companies, along with Mutual Life Insurance
Company and Equitable Life Assurance Society.
World Conditions Creating Volatile Environment: 1900s-40s
New-York Life prepared early for World War I, selling securities and borrowing in
order to increase cash reserves and meet wartime obligations. During the war the company
also issued war-risk policies. The war's greatest challenges came in its aftershocks. The
worldwide influenza epidemic of 1918 and 1919 hit the United States with unexpected

ferocity: death claims resulted in a $10 million loss for the company, almost twice the cost of
benefits paid during the war.
During the Russian Revolution of 1917 the company's assets in Moscow were seized.
Soon after, New York Life began its withdrawal from Europe, a reaction to unfriendly
regulation and a volatile world economy.
Industry on the Rise: 1950s-70s
Recognizing the need for housing in the postwar nation, New York Life began
moving its assets out of wartime government securities and into real estate development in
the late 1940s. The company established a mortgage-loan program for veterans in 1946 and
also invested in residential housing developments in Queens and Manhattan and in Chicago
and Princeton, New Jersey, during the 1940s and 1950s. In 1969 it established the Nautilus
Realty Corporation to handle its commercial and residential real estate operations, which
proved to be of increasing importance as inflation in the 1970s and 1980s made other
investments less desirable.
In the 1960s New York Life introduced the family insurance plan, a policy of
comprehensive family coverage. When economic recession and inflation caused the lapse
rate on new policies to increase in the early 1970s, the company created an insurance
conservation office to study ways of better serving--and thus keeping--customers.
Diversification Prompted by Industry Downturn: 1980s
Another major growth area for New York Life during the 1980s was healthcare. The
spiraling cost of medical care in the 1970s and 1980s strengthened the appeal of insurance as
a security against long-term illness. In 1987 New York Life purchased controlling interest in

Sanus Corporation Health Systems, one of the largest healthcare companies in the nation. At
the time, New York Life's greatest concern in the healthcare field was AIDS.
Diversification into real estate development, mutual funds, partnership investments,
annuities and pensions, and healthcare preserved New York Life's market position, and it
entered the 1990s ready to take advantage of expanding demand for these new products.
Reacting to the Changing Marketplaces: 1990s
New York Life reorganized its management structure in 1992. A team of specialists
from areas such as service, legal, marketing, and actuarial led by a product manager could
move new offerings through the pipeline and out into the market more quickly than in the
past. In 1993, New York Life rolled out a variable annuity policy and in 1994 its first
variable universal life policy. To tap into a market of more conservative investors, the
company began selling a variable annuity product through the banking system in 1995. New
York Life sold its NYL Care Health Plans subsidiary in 1998
Preparing for the Future: 2000 and Beyond
The creation of New York Life Investment Management LLC, in 2000, brought all of
the company's $115 billion in assets under management into one subsidiary. New York Life
followed a trend in the insurance industry--distancing the financial products from traditional
insurance products--intended to improve competitive strength
New York Life prepared for another venture in the finance end of business by seeking
and receiving approval to operate a federally insured thrift, a move made possible by changes
in federal regulations during the late 1990s. The company first planned to offer trusts and
individual retirement accounts. The trust operation gave New York Life the ability to manage
insurance money distributions, a capability it lacked to this point.
A matter related to its long dissolved European operation was finally resolved in
2001. New York Life settled claims by the survivors of ethnic Armenians killed by Turkish
soldiers back in World War I. A 1999 class-action lawsuit led to legislation allowing
Armenians living in California to pursue claims against insurers for unpaid benefits.

International Presence
 North America
 All 50 states
 Latin America
 Argentina (a JV)
 Mexico
 Asia Pacific
 Joint Ventures
 India
 Indonesia
 Thailand
 China
 The Republic of South Africa
 Cost-Ricca
 Wholly Owned Subsidiaries
 Hong Kong
 Philippines

 Taiwan
 South Korea
 Representative offices
 Vietnam
New York Life, has insured the lives of as many as 9 US Presidents.
 Richard Nixon (1913-1994)
 Franklin D. Roosevelt (1882-1945)
 Herbert Hoover (1874-1964)
 Calvin Coolidge (1872-1933)
 Warren Harding (1865-1923)
 Theodore Roosevelt (1865-1923)
 William McKinley (1843-1901)
 Benjamin Harrison (1833-1901)
 James Garfield (1831-1881)

Company Profile of MAX NEW YORK LIFE
Max New York Life Insurance
“Max New York Life wants people to view insurance as a financial protection
and wealth creation instrument and not just a tax-saving tool.”
Max New York Life Insurance Company Ltd. is a joint venture between New York
Life, a Fortune 100 company and Max India Limited, one of India's leading multi-business
corporations. The company has positioned itself on the quality platform. In line with its
vision to be the most admired life insurance company in India, it has developed a strong
corporate governance model based on the core values of excellence, honesty, knowledge,

caring, integrity and teamwork. The strategy is to establish itself as a trusted life insurance
specialist through a quality approach to business.
New York Life is a Fortune 100 company that has over 160 years of experience in the life
insurance business. Max India Limited is a multi-business corporate dealing in Clinical
Research, IT and Telecom Services, and Specialty Plastic Products businesses.
Max New York Life Insurance started its operations in India in 2000. It is the first life
insurance company in India to be awarded the IS0 9001:2000 certifications. Max New York
offers customized products tailored to suit individual's needs. With its various Products and
Riders, there are more than 400 product combinations to choose from. Today, Max New
York Life Insurance has a network of 57 offices spread over 37 cities all over India.
In line with its values of financial responsibility, Max New York Life has adopted
prudent financial practices to ensure safety of policyholder's funds. The Company's paid up
capital is Rs. 657 crore, which is more than the norm laid down by IRDA.
Max New York Life has identified individual agents as its primary channel of distribution.
The Company places a lot of emphasis on its selection process, which comprises four stages -
screening, psychometric test, career seminar and final interview. The agent advisors are
trained in-house to ensure optimal control on quality of training.
Max New York Life invests significantly in its training program and each agent is
trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before
beginning to sell in the marketplace. Training is a continuous process for agents at Max New
York Life and ensures development of skills and knowledge through a structured program
spread over 500 hours in two years. This focus on continuous quality training has resulted in
the company having amongst the highest agent pass rate in IRDA examinations and the
agents have the highest productivity among private life insurers.

It has established a wide agency distribution network with 172 offices and
representatives across 120 cities in India. The company has established additional channel
with 22 bancassurance relationships, corporate tie-ups and a strong Direct Sales Team.
Through its wide network of highly competent life insurance agent advisors, flexible product
solutions and strong customer focus, Max New York life is creating a partnership for life
with its customers in India.
Max New York Life, one of India’s leading life insurance companies, expanded its
presence in the southern region by opening its first general office in the city of Mysore. Max
New York Life now has established a countrywide network of 172 offices and
representatives across 120 cities in India.
Max New York Life, which has till date sold over 1.53 million policies and recorded
a sum assured of over Rs. 46,000 crore, has positioned itself on the quality platform. The
company has developed a strong corporate governance model based on defined core values
of caring, knowledge, excellence and honesty. Its strategy is to establish itself as a trusted life
insurance specialist on the bedrock of quality of advice. The company has over 25,300 agent
advisors, who are widely considered the best in the business.
Max New York Life aspires to be the "life insurance brand of first choice" amongst
Indian consumers. To achieve this the company will draw on New York Life's demonstrated
competence in developing and managing a superior personal sales network. For the last 46
years consecutively, the largest number of agents qualifying for membership to the Million
Dollar Round Table (MDRT) have been from New York Life. The MDRT is the industry's
most prestigious organization comprising the world's most successful insurance agents. Max
New York Life, a merit oriented and equal opportunities employer, is looking for a few good
men and women who will spearhead the effort to realize this vision.
“Max New York Life wants people to view insurance as a financial protection and
wealth creation instrument and not just a tax-saving tool. Since the launch of our operations,
our focus has always been on providing risk protection and long-term wealth creation

solutions to our customers. With a diverse product portfolio to meet customer requirements,
it is evident that we are setting benchmarks in the marketplace and are well on course of
realizing our vision to become India’s most admired Life Insurance Company.”
“An ever expanding presence of Max New York Life offices across India reinforces
our commitment to serving the nation. We are extremely pleased with our progress in the
region and feel that opening an office in Mysore would help us educate people about the true
potential and benefits of life insurance. As life insurance specialists, Max New York Life will
continue to help consumers make the right choices to meet their financial goals, both for the
short and long-term, through sound quality advice offered by our agent advisors and a right
mix of product offerings.” he added.
Max New York Life has been instrumental in changing the paradigm of life insurance
in India. It is the first life insurance company in India to introduce cause related marketing.
Children are at the very heart of Max New York Life's strategy. SOS Children's
Villages of India is internationally recognized for its work in giving underprivileged children
a wholesome life. The mission of SOS is "to help orphaned and abandoned children, by
providing them with a family, a permanent home, education and strong foundation for an
independent life." It's mission ties in with Max New York Life's philosophy of helping
people secure the future of their near and dear ones.
Vision:
Vision statement is "Most Admired Life Insurance Company in India".
Mission:
 Become one of the top quartile life insurance companies in India
 Be a national player
 Be the brand of first choice
 Be the employer of choice

 Become principal of choice for agents
Max New York Life Values and Beliefs
Excellence
"In every aspect of work. Ranging from the in-house training institute to the detailed
Personal Insurance Plan. Max New York Life is focused on achieving the highest standards
of quality in every aspect of their business".
Honesty
"Is the heart of the Life Insurance business. Max New York believes that above all, Life
Insurance is based on trust. Transparency, Dependability and Integrity will form the
cornerstones of the Max New York Life experience."
Knowledge
"Is what makes experts. Max New York Life is focused on the Life Insurance business.
Perfectly combining global expertise with local knowledge, Max New York Life is the Indian
Life Insurance specialist."
Caring
"For the customer. Max New York Life is redefining the Life Insurance paradigm to focus on
the needs of the customers. The Max New York service process is responsive, personalized,
humane and empathetic."
Culture:
Our "in house culture recipe" has some of the finest ingredients going into its making. Some
of the more prominent aspects of our culture are stated below:

 Customer comes first
 Do it right the first time
 Bias for result oriented action
 Financial strength and discipline
 Clarity of purpose
 International quality standards
 Inclusive Meritocracy
 Learning opportunities
 Fun at work
 Commitment to published value system
The products offered by Max New York are
 Life Partner Plus Plan  20 year Endowment (Par)

Plan
 Life Gain Plus 20 Participating Plan  Life Gain Endowment Plan
 Life Gain Plus 25 Participating Plan  Endowment to Age 60 (Par)

Plan
 Children Plan  Whole Life Participating Plan
 SMART Invest Pension Plan  Five Yr Renewable and

Convertible
Plan (Non - Par)
 Level Term Plan  LifeLine Wellness Plan
 LifeLine MediCash Plan  LifeLine-Safety Net Plan
 Life Pay Money Back  Life Maker Gold Plan
 Smart Assure  Life Invest Plan

 Life Maker Premium Investment  SMART EXPRESS
The latest product that MNLY has come up with is known as the SMART EXPRESS
where the minimum premium is 50,000 but the benefit of this policy if taken on a yearly
mode is since it being a ULIP product and the markets trend not looking too great the value
of the fund freezes when the stock price increases hence it to an extent offers a fixed return it
can say that one who invest in this plan is assured of a positive return. This product was
introduced since it had to discontinue its very famous product Life Invest again this was due
to the guidelines of IRDA when it says if the plan crosses a certain limit of sum assured
offered it has to close the product.
The insurance companies are guided or the governing body of any insurance company
is the IRDA that is the Insurance Regulatory and Development Authority. So when a
company launches a new product they first have to submit the blue prints to the IRDA and
only when it receives an approval from the IRDA it can start marketing the product.
Relatively longer tenure policies
 Average tenure of polices is 26 years, which is much higher than the ~12 years for
some of the leading players; Also due to significant whole life policies underwritten
in the past
 Flagship products include Life Maker Premium and Life Invest; Recently launched
pension, health and children plans
 Pension and health will be key focus areas going forward
INSURANCE PLANS
a. Protection Plans:
1. Five Year Renewable and Convertible Term Insurance

Max New York Life's Five Year Renewable and Convertible Term Insurance
(Non-Participating) plan not only provide you with a low cost insurance cover during its
tenure of five years, it also helps you plan in advance for various future needs and your
family's financial security, should anything unfortunate happen to you. Offering a guaranteed
Death Benefit, this plan is particularly useful as a short-term protection plan. An important
feature of this policy is that it allows the insured to convert the policy to a regular policy
during the tenure of the policy.
2. Level Term (Non Participating) Policy
Max New York Life's Level Term (Non Participating) Policy is a plan that
covers your life at a very low cost and reduces the consequent hardship your family may
have to bear in the unfortunate event of your death. Incase of the unfortunate death of the
policy holder during the term of the plan, an amount equal to the sum assured is paid to the
nominee.
 Children Plans:
1. Children's Endowment to 18 (Par) Plan
Max New York Life presents Children's Endowment Participating Insurance

to age 18 with an option to buy a permanent life insurance policy without medical
underwriting (irrespective of his/her health at that time). This policy which is especially
designed to enable you to provide for higher education of your child and take care of your
child’s future needs in case of spiraling costs.
2.

6. Stepping Stones™ (Par) Plan
Max New York Life’s Stepping Stones™ is a smart way to plan your
children’s education and their future irrespective of whether you are there or not. It provides
you with regular money when it is required. This policy also builds cash value, which you
can use during your lifetime to fund any unforeseen needs by surrendering accumulated
PUAs. This policy also entitles you to make partial withdrawals for various unplanned
expenses in the future.
3. Children's Endowment to 24 (Par) Plan
Max New York Life’s Children's Endowment Participating Insurance to age

24 provides an option to buy a permanent life insurance policy without medical underwriting
(irrespective of his/her health at that time). This policy enables you to provide for various
events in your child’s life such as a grand wedding of your child. This excellent plan is a
participating plan, which is also eligible for bonuses and Max New York Life may declare
these bonuses from time to time and from the third policy year. An important feature of this
plan is that the entire sum assured is paid out on maturity and the plan automatically vests
when the child turns 18.
4. Children’s Endowment to Age 18 (Participating) Policy
Max New York Life’s Child Endowment Plan takes care of their future financial
needs in case of spiraling costs, whether higher education or marriage.
Key Benefits
b. On Maturity- Sum Assured is paid out

c. Automatic vesting at age 18-The Plan automatically vests when the
child turns 18.
d. On Death of life insured- In case of death before maturity, premiums

paid, together with interest will be paid.
1. SMART Steps™ Plan
Introducing Max New York Life’s regular premium unit linked life insurance
children’s plan – SMART Steps™, which will help you plan for your child's future in a
SMART way and takes your worries away. This plan offers the required financial protection
for your loved ones if you are not alive and provides an unmatched investment opportunity
by way of well managed investment funds. This policy also entitles you to make partial
withdrawals for various unplanned expenses in the future.
6. SMART Steps ™ Plus
A regular premium unit linked life insurance plan, Max New York Life’s
SMART Steps™ Plus will help you plan for your child's higher education, marriage, and
financial security. This plan offers no-compromise 360 degree protection to your children
even if you are not alive and provides an unmatched investment opportunity by way of well
managed investment funds. This policy also entitles you to make partial withdrawals for
various unplanned expenses in the future.
This specially designed plan for your child's future needs, offers you:
a. An unmatched investment opportunity by way of well managed
Investment Funds.

b. A no compromise 360 degrees protection for your children if you are
not alive
c. Financial protection for your loved ones if you are not alive.
d. Facility of partial withdrawals for those unplanned expenses.
2. SMART Steps ™ Single Premium Plan
Max New York Life’s SMART Steps™ Single Premium policy will help you
plan for your child's future in a SMART and organized manner. Apart from offering 360
degree protection to your child if you are not alive, this plan also provides an unmatched
investment opportunity by way of well managed investment funds. This policy also entitles
you to make partial withdrawals for various unplanned expenses in the future.
 Investment Plans:
1. Life Maker™ Premium Investment Plan
The latest Life Maker™ Premium Investment Plan gives you a lot of choices -
especially when you are looking for Great life style, Big Home, your own well established
Business and top of all - Protection for your family. Our Unit linked Life Insurance plan can
be the financial cornerstone for your objectives. Max New York Life Insurance provides you
a powerful investment-cum-insurance plan where you can direct your investments in the
customized unit linked funds such as equities, money market instruments, investment grade
corporate bonds, and government securities. These funds offer a wide range of returns basis
market returns. You can choose to invest your premiums in one or more of these funds, basis
your risk taking ability.
2. Life Maker™ Platinum - a Unit Linked Investment Plan

With the Life Maker™ Platinum - a Unit Linked Investment Plan, you can
meet all your financial needs, without the tedium of managing multiple products. In this plan,
you can direct your investments in the customized unit linked funds such as equities, money
market instruments, investment grade corporate bonds, and government securities. These
funds offer a wide range of returns basis market returns. You can also choose to invest your
premiums in one or more of these funds, basis your risk taking ability.
3. Life Maker™ Gold Plan
This plan enables you to choose an attractive investment fund, enjoy free
loyalty units and tax benefits on premiums and maturity value. Life Maker™ Gold Plan also
provides you insurance cover, in which, your nominee will get the Sum Assured plus the
Fund Value to your nominee(s), in case of unfortunate event of your death. Our Plan also
offers you the flexible investment feature, where you can choose one out of four attractive
funds options and also change your risk return profile of your existing investments by
switching across funds with our high customization feature.
a. Life MakerTM Gold is a powerful insurance plan that empowers you to manage your
investments through your insurance policy.
b. In this unit linked insurance plan, you can direct your investments in our customized
unit linked funds, which offer investments of
c. different types: Fixed Income (e.g. Govt. Securities, Company Debentures) and
Equities (i.e. shares).
d. These funds offer you different combinations of fixed income and equity assets
ranging from potentially high-risk-high-return to potentially low-risk-low return to
match your risk taking ability.
4. Life Invest™ Plan
This policy will provides you comprehensive protection from 3 Ds i.e. Death,
Disease and Disability. Apart from loyalty units and tax benefits, the maturity feature of this
policy will also pay you the fund value. Flexible Investment with choice of four attractive

fund options, lump sum investment in your plans through top ups as per your cash flow,
increasing death benefits, flexibility to choose premium payment terms are few of the
benefits you can enjoy through this policy.
5. SMART Assure Plan
Our smart assure plan also enables you to make partial withdrawals at the time
of unexpected expenses. The switching feature of this policy provides you the facility to
change the investment pattern by moving from one fund to other fund(s) amongst the funds
offered under this contract
 Retirement Plans:
1) Easy Life™ Retirement (Par) Plan
Catering to the diverse set of needs of various customers looking for

retirement planning, Max New York Life offers some splendid retirement plans, which
would suit their budget and lifestyle. Max New York Life's Easy Life™ Retirement Plan
Regular Premium/Single Premium (Participating) Policy is designed to help you save money
for your retirement. It also provides you with an opportunity to take home a regular
retirement income (i.e. pension).
2) SMART Invest™ Pension Plan
Offering competitive returns to secure the golden years of your life, Max New
York Life's SMART Invest™ Pension Plan is a comprehensive unit linked pension plan to
meet your post retirement financial needs, ensuring you complete peace of mind. One-third
of the corpus can be commuted at vesting age the amount commuted are eligible for tax
exemption u/s 10A.

a. SMART Invest Pension (unit linked pension plan) is an unparalleled pension plan that
gives you an option to let your premiums automatically increase at a fixed rate and
helps you combat inflation and effectively preserve your objective of a secure
retirement.
b. Also, as we understand that the portfolio risk should reduce as you near your
retirement to conserve the corpus from any unnecessary erosion and that's the reason
why SMART Invest Pension offers the “Dynamic Fund Allocation” feature at no
extra cost.
c. This feature enables your money to automatically get invested basis the years left for
your retirement date as chosen by you and frees you from the worry of switching your
funds manually from one fund to another.
 Health Plans:
1. LifeLine-MediCash™ Plan
Max New York Life's Lifeline-MediCash™ health Insurance plan provides

you support by giving you hospital cash benefit, whenever you are hospitalized. Through this
plan you will get a fixed benefit towards hospitalization, ICU and recuperation (post
hospitalization).
2. LifeLine-MediCash™ Plus Plan
Presenting Lifeline - MediCash™ Plus health Insurance plans from MNYL

that provide you support by giving you hospital cash benefit, whenever you are hospitalized.
Through this plan you will get a fixed benefit towards hospitalization, ICU and recuperation
(post hospitalization). And the surgical expenses of a fixed Lump-sum amount will be paid
under LifeLine – MediCash™ Plus for more than 400 listed surgeries that you may undergo.

3. LifeLine-Wellness™ Plan
Max New York Life's LifeLine-Wellness™ is a health plan, which would

provide you 360-degree benefit in terms of long tenure of coverage, coverage for 10 critical
illnesses, and permissible tax benefit under an Income Tax Act.
4. LifeLine-Wellness™ Plus Plan
Max New York Life's LifeLine-Wellness™ Plus health plan provides a

wonderful benefit system in terms of long tenure of coverage, coverage for 38 critical
illnesses and tax benefit.
5. LifeLine-Safety Net™ Plan
Recognizing the need for a complete all round financial protection for you
and your family, Max New York Life Insurance Company offers you a term cum health
insurance - LifeLine-Safety Net™ , the new age insurance covering death, disability, disease
and accident under one single plan.
SOME OF THE OTHER PLANS ARE:
SAVINGS PLANS:
 W hole Life Participating
 20 Year Endowment (Par)
 Endowment to Age 60 (Par)
 Life Gain Plus 20 (Par)
 Life Gain Plus 25 (Par)
 Life Pay Money Back
 Life Gain Endowment
 Life Partner
RURAL PLANS:
 Max Suraksha

 Easy Term Policy
STRATEGIC PRODUCTS PLANS:
 Bancassurance
 Super Saver Bond
 Capital Builder
 Additional Distribution
 Max Mangal
 Max Vriksha
 Capital Builder
Research Methodology:
The Research Methodology adopted for the present study has been systematic and
was done in accordance to the objectives set which has been detailed as below.
Research Definition
Research is a process in which the researcher wishers to find out the end result for a
given problem and thus the solution helps in future course of action.
According to Redman & Mory research is defined as a “Systemized effort to gain
new knowledge”.
So, This project here finds out the training procedure and it’s effectiveness and the
benefits of the training process for the employees who undergo training here.

Research Design:
According to “Claire Seltiz”, a research design is the arrangement of condition and
analysis of data in manner that aims to combine relevance to the research purpose with
economy in procedure.
Nature of Research:
Research is basically of two types.
1. Descriptive research
2. Explorative research
1. Descriptive Research: These studies are concerned with describing the characteristic of a
particular individual or a group.
Determining Sources of Data:

There are two main sources of data
1. Primary data
2. Secondary data
Primary Data:
It consists of original information collected for specific research. Primary data for this
research study was collected through a direct survey to obtain this primary data a well
structured questionnaire was prepared by the researcher.
Secondary Data:

It consists of information that already exists somewhere and has been collected for some
specific purpose in the study. The secondary data for this study is collected from various
Management books and Internet .
Questionnaire:
A set of questions containing a few Technical questions and more number of Opinionated
questions are prepared for the employees of both Centralized and Decentralized sections of
HR Department.
Sample Size: Total sample size is 30
Questionnaire Development:
Questionnaire is the most common instrument in collecting primary data. In order to gather
primary data from viewers.
Type of Questions
The present questionnaire consists of following type of questions.
 Open ended questions
 Closed ended questions
 Dichotomous questions
 Multiple choice questions
 Ranking question.

Open ended questions: It has no fixed alternatives to which the answer must conform. Thus,
respondent answer in his/her own words at any length they choose.
Closed ended questions: Closed ended questions have no other options other than the
selecting the one that close matches the respondent’s opinion or attitude.
Dichotomous questions: A dichotomous questions refers to one, which offers the

respondents a choice between only two alternatives.
Multiple Questions: A multiple choice question refers to one, which provides several sets of
alternatives for the respondents’ choice.
Ranking questions: These questions are given when there are many points to be considered
and to be ranked in priority.
LIMITATIONS
 The survey was conducted with in the company.
 And in survey I have to interact with the employees. But the employees will be busy
their works.

 Getting the good response from the employee will be difficult because of their busy
schedule.
 Time to interact with employees inside the branch is not sufficient.
 Time Period of my OJT is one of the limitations.
 Small sample size may not be sufficient to generalize regarding all the employees.
RECRUITMENT OF FINANCIAL CONSULTANTS/ADVISORS IN

MAX NEW YORK LIFE INSURANCE

What is Recruitment?
Recruitment is the process of searching for and obtaining applications so as to build a
pool of job seekers from whom the right people for the right jobs may be selected.
The purpose of recruitment is to build a pool of applicants. Recruitment represents the
first contact a company makes with potential employees. Recruitment done well will result in
better selection.
It is the process of finding and attracting capable applicants for employment. The
process begins where new recruits are sought and ends when their applications are submitted.
The result is a pool of applicants from which new employees are selected.
Business description
Be our Certified Financial Consultant, Join Max New York Life Insurance as a
Financial Consultant and help analyze your customer’s financial needs, provide customized
financial solutions to each one and conduct reviews on a regular basis to keep your customers
on track.
Along with being a great career move you get associated with Max New York Life
Insurance, India’s Most Respected Private Life Insurance Company. We at Max New York
Life also offer you unmatched support with various training programmes to help you excel in
your Endeavour.
A great career move in every way Zero investment, there is no start-up capital. You
can work full-time or part-time, depending on your convenience Sunrise industry Support
every step of the way At Max New York Life, training is an inherent element of our support
system - at no extra cost - for our new Financial Consultants
Purposes and Importance

The purpose of recruitment is to provide a pool of potentially qualified job
candidates. Specifically the purposes are to:
 Determine the present and future requirements of the organization in
conjunction with its personnel planning and job analysis activities.
 Increase the pool of job candidates at minimum cost.
 Help increase the success rate of the selection process by reducing the
number of visibly under qualified or overqualified job applicants.
 Help reduce the probability that job applicants, once recruited and selected,
will leave the organization only after a short period of time.
 Meet the organization’s legal and social obligations regarding the
composition of its workforce.
 Being identifying and preparing potential job applicants who will be
appropriate candidates.
 Increase organizational and individual effectiveness in the short term and
long term.
Evaluate the effectiveness of various recruiting techniques and sources for all types of
job applicants.
Excellent Opportunity
 Join Max New York Life Insurance as a Financial Consultant and earn a
rewarding career
 Flexible work timings – You can work whenever you like. You can work full-time
or part-time, depending on your convenience. However, the time you invest will
determine your start success
 Any one can join - Young graduates, Housewives, Retired Personnel, Self-
employed or Working Professionals.
 Zero Investment - There is no -up capital required. Be your own boss with flexible
working environment, unlimited earning potential and opportunities to be part of a
world class sales team.

 Attractive Remuneration - Company offers excellent commissions, award and
rewards for the performers. You have unlimited earning potential. Commission
structure is pretty handsome and is 15-40% and renewal commission of 5% second
year onwards till the policy is in force.
Desired Profile:
Age : 18 Yrs to 65 Yrs

Education : Intermediate or more
Experience : Not Mandatory
Type of Job : Full Time or Part Time
Recruitment Criteria
Point system
1) Age Points
I. Below 25 Yrs. : 1
II. 25-35 Yrs. : 2
III. Above 35 Yrs. : 3
2) Sex
I. Male : 2
II. Female : 3
3) Qualification
I. Undergraduate : 1
II. Graduate : 2
4) Marital Status
I. Unmarried : 1
II. Married : 2
5) Resident of New Delhi:
I. Not more than 2 Years : 2
II. Last 5 or more Years : 1

Documents Required:
 8 photograph
 Age proof (passport, Birth certificate, College Leaving Certificate, Driving License)
 Address proof
 Education proof
 Copy of PAN Card
 Duly Signed Cancelled Cheque of self

 A candidate needs to bring a DD of Rs.1225/- in case of offline training and
Rs.1000 in case of online training towards Max New York Life Insurance payable
at New Delhi.
Process of recruitment
Names 60
Screening Interview 20
NAT/ARIF 16
Career seminar 8
P200 & market survey
6
Career interview 4
Agents 2

NAME GATHERING
EFFECTIVE SOURCES OF NAME GATHERING
The sources of name gathering can be broadly divided into two categories
 Primary sources
1. Agent referrals
2. Centre of Influences
3. Nominators
4. Personal Observations
5. Policy Holders
6. Friends and Family
 Supplement sources
1. Newspaper Advertising
2. Direct mail/ Pre-Approach Letters
3. Employment news
4. Seminars
5. Campus Recruitments
6. Personnel Directors.
INITIAL SCREENING
It is the first interaction of the recruiter with the prospect agent and the first step towards the
entire interview process. There are primarily two objectives of the initial screening.
NUMERICAL APTITUDE TEST

This test focuses on the comfort level of the agents in simple mathematical calculations
and basic finance questions like simple interest, compound interest etc, as they would be
generating illustrations while they sell.

CAREER SEMINAR
So far in the recruitment process the manager has tried to access the ability of the
candidate. But the candidate should also be given an opportunity to know about the company
and the career opportunity; he/she should be able to access for himself/herself the worth of
the company and the opportunity given to him/her.
EVALUATION OF P-200
After attending the career seminar the candidate is given a project called the P-200. In
this the candidate is required to write down the names of 200 people that he/she knows along
with some of their details. A sample copy of the P-200 is attached in the appendices. Once
they have filled the P-200 with the names, then an evaluation is done on those names.
CAREER INTERVIEW
After the completion of the career seminar and the evaluation of P-200, the candidate
and the company know about each other and can make a call. Therefore the last part of the
recruitment process is the career interview which is conducted by the Managing Partner/
Partner.

Definition of Training:
The systematic development of the knowledge, skills and attitudes required by an
individual to perform adequately a given task or job. Training refers to efforts that help
enhance employee skills for carrying out the present job. According to Edwin B Flippo,
training is the act of increasing knowledge and skills of an employee for doing a particular
job.
METHODS OF TRAINING.
Two methods of training.
A) ON THE JOB TRAINING: This type of training is also known as job instruction
training, is the most commonly used method. Under this method the individual is
placed on a regular job and certain skills are taught that are necessary to perform that
job. The trainee learns under the supervision and guidance of a qualified worker or
instructor. On the job training has the advantage of giving first hand knowledge and
experience under the actual working conditions. On the job training method include
job rotation, coaching, job instruction or training through step-by-step and committee
assignments.
 Job rotation: Job rotation involves movement of trainee from one job to another.
The trainee receives job knowledge and gains experience from the supervisors or
trainers in each of different job assignment. This method gives on opportunity to the
trainee to understand the problems of employees on other jobs and respect them.
 Coaching: In coaching superior plays an active role in training the subordinate by

assigning him challenging tasks. The superior acts as a coach in training the
subordinate by assisting and advising him to complete the assigned task..

 Job instruction: This method is known as training through step by step. Under “
“trainer explains trainee the way of doing job, job knowledge and skills and allows
him to do the job. The trainer appraises the performance of the trainee, provides
feedback information and corrects the trainee.
The process or the steps under job instruction method are as follows
Step1: Prepare the employee for instruction. Put him at ease. Explain the job and its
importance. Get him interested in learning the job.
Step 2: Present the job. Follow your breakdowns. Explain and demonstrate one step
at a time – tell why and how? Stress key points. Instruct clearly and patiently.
Give everything you will want back, but no more.
Step 3: have him do the job. Have him tell why and how and stress key points.
Correct errors and omissions as he makes them. Encourage him. Get back
everything you gave him in the step 2. Continue until you know he knows.
Step 4: Follow through. Put him on his own. Encourage questions. Check frequently.
Let him know how he is doing. If the learner has not learnt, correct him and
teach him repeatedly.
 Committee assignment: Under committee assignment group of trainers are

given and asked to solve an actual organizational problems. The trainee solves the
problem jointly. It develops teamwork.

B) OFF THE JOB TRAINING: Under this method of training, trainee is separated
from the job situation and his attention is focused upon learning the material related
to his future job performance. Since the trainee is not distracted by the job
requirements, he can place his entire concentration on learning the job rather than
spending his time in performing it. Off – field job training methods are as follows:
 Classroom method:
Classroom method for training personnel includes lectures, discussions, role-
playing and case study.
1. Lectures: It is common method to impart facts, concepts, principles

etc to a large group at one time. The main advantage of lectures is
that it can be used for a very large group at one time and there is low
cost per trainee.
2. Discussion: Combining lectures with discussion eliminate the
limitation of one-way communication. In this method the trainees
interact with the lecturer and any doubts or misunderstanding of the
concept and principles are cleared.
3. Case study: In this technique, an actual or hypothetical problem is
presented to a training group for discussion and solution. It is
important to note that the problem is presented in cases is usually do
not have a single solution, but narrow mindedness of trainees is
reduced as problem-solving ability is increased.
a. Vestibule training: In this method, actual work conditions are simulated in

the classroom. Material, files and equipments those are used in actual job
performance are also used in training. This type of training is commonly used
for training personnel for clerical and semi-skilled jobs. The duration of this
training ranges from days to a few weeks.

b. Committee conference: Committees can be a method of training. The junior
members of the committee can learn from the discussion and interaction with
the senior member of the committee. The senior member can also learn from
the opinions and views expressed by the junior members. Committees can
serve the purpose of developing good social relations. In the case of
conference, group discussions and the meetings are held to discuss various
issues and to provide solutions to various problems. The chairperson leads the
discussion and then the participants attempt to provide solutions. The
conferences act as a group interaction and exchange of views and idea. It
reshapes thinking and attitudes of t6he participants.
c. Reading, television and video instructions: Planned reading of relevant and

current management literature is one of the best methods of management
development. It is essentially a self-development programme. A manager may
be aided by training department, which often provide a list of valuable books.
Also there are television programme that are features towards management
development. Videotapes are also available whereby important managerial
discussions, debates and talks can be viewed and listened.
d. Role playing: It is defined as a method of human interaction that involves

realistic behavior in imaginary situations. this method of training involves
actions, doing and practice. The participants play the role of certain
characters, such as production manager, mechanical engineer,
superintendents, maintenance engineers, quality control inspectors, foreman,
workers and the like. This method is mostly used for developing interpersonal
interactions and relations.

Requirements of Successful Training Programme
(Principles Of Training)
1) Training should be exactly as per the training needs: The training needs should be
identified clearly and precisely before deciding the details of training programme. It
is also necessary to identify the organizational constraints that are creating roadblocks
in the performance. It deals with the problems due to which production efficiency
reduces. Identifying training needs are the basic requirements of successful training
programme
.
2) Elaborate and systematic: The training programme should be elaborate and
systematic. It should be directly related to specific training needs of the organization.
3) Motivation of trainees: Training programme should motivate trainees to take interest

and initiative in the training process. For this some attraction should be created. This
may be like pay increase, promotion or delegation of authority.
4) Theoretical and practical character: Training should be theoretical as well as

practical. The contents of training programme should be prepared with the help of
experts. This will make training purposeful/ result-oriented.
5) Superior in quality: The training programme should be superior in quality. There

should be proper balance between theory and practice. Expert trainers should be
appointed for giving training. Suitable materials and facilities such as books,
workshops must be provided.
6) Provision of periodical tests for evaluation: There should be periodical test and
evaluation of candidate. Progress report should be given to trainee. This facilitates the
learning and encourages the trainee to take interest in training programmes.
7) Longer period training: Training programme should be of a reasonable longer

duration. It should not be too short or too long as both these extremes are undesirable.

8) Training by experts: Experts with suitable qualification, qualities, experience and
maturity should provide training. Professional field trainer should be invited for
giving additional information and guidance to trainee.
9) Involvement of trainees: Industrial training should not be like spoon-feeding.

Effective participation of trainees should be encouraged. Training should act as a tool
for self-learning and self-development.
10) Periodical updating: Training programme should be reviewed periodically for

updating the course content. It is necessary for removing deficiencies in the training
programme and also making it result oriented. Training should be made interesting
with use of films, audio-visuals and visit to industrial estate etc.
11) Provision for rewards and penalties: Rewards should be given those who show
satisfactory progress and punishments to those who do not take active interest in
training programme. For this instructor should maintain progress report of trainees.
12) Convenient place: The place of training should be peaceful with necessary facilities
and conveniences to instructor and trainees. On the job training has certain limitation
as it is given in factory premises where as off the job training is always better as the
place is convinent.
13) Reinforcement of trainees: Training should be followed by promotion to higher

position where practical application of training can be done. There should be suitable
increase in pay and status of a trained employee. In the absence of such training will
be wasted and trained person will face frustration.
14) Efficient training administration: This is also one more essential requirement of
training. It includes deciding training content, types of training programmes, location
of training activities and the general administration of training. For decision making
proper planning and efficient execution is required by the managers. Suitable
administrative machinery must be created.

Needs for Training:
 To improve the current job performance of employees
 To familiarize employees with the policies and procedures of the organization.
 To enhance the creativity, adaptability and versatility of the employees and to
facilitate learning at the work place
 To prepare employees for future job.
 To change the skills, knowledge and attitudes of the employees on a permanent basis.
 To help employees manage their careers.
 To maintain knowledgeable work force.
 To gain competitive advantage through a knowledgeable work force.
 To promote organizational growth through individual growth.
Areas of training:
 Company policies and procedures
 Human relations training
 Skill based training
 Problem solving training
Onsite Workshops for Leadership Team

Employees need more than bosses... They need mentors: Professionals skilled at
assessing employee development needs and committed to guiding employees toward
professional success.
Team Leadership Workshop provides managers with proven techniques for effective
personnel management. By helping leaders understand and address their employees'
requirements, this interactive seminar offers significant benefit to managers at all levels. New
supervisors gain a solid grounding in the concept of ''leadership,'' while more experienced
managers refresh their commitment to teaching and coaching their team members.

This training program provides healthy perspectives for managers at all levels,
making it an ideal morale-boosting leadership development experience for mixed groups of
front-line supervisors and senior staff members.
Training programs for Success
Leadership Training for Success
All managers need methods. Leaders need to know the most effective techniques for
guiding teams, mentoring individuals, and validating the results. Without solid methods,
managers will revert use a one-size-fits-all approach to leadership that reflects the leader's
personality, rather than the employees' needs.
Committed, mentoring leadership is essential to employee morale, productivity, and

retention.
A Results-Oriented Training Program
Team Leadership Workshop provides proven methods and procedures for successful
people management. Participants receive a step-by-step plan for guiding each employee
toward success.
This workshop includes elements of Frank Whyte's nationally respected Team

Building Workshops expanding upon that foundation to help leaders:
 Recognize each employee's personality preferences and supervisory needs,

 Align their leadership style with those of their bosses, colleagues, and subordinates,
 Develop competent and committed employees by mentoring and guiding their
employees toward success,
 Schedule their management responsibilities to ensure that nothing is left to chance,
and Use practiced, real-world scenarios to resolve challenges and remove barriers.

Training programs done by MNYL
Training is must for every individual when he enters into the organization. Even
though the candidate has experience he also should get training. Why because the
organization culture, values and beliefs are different from one organization to other. That’s
why the training program plays a key role in every organization.
Training program following by Max New York Life Insurance is different at various levels.
Mainly in training program the company concentrates on sales managers, agents, operations
executives and telecallers.
Training program for sales managers:
 The training program duration is 15 – 20 days

 They get training on product knowledge.
 Motivating and encouraging Advisors
Training program for Advisors:
 The training program duration is 15 – 20 days

 They get training on product knowledge
 How to convince the people.
 Objection Handling
Training program for operations executives:
 They will get training on customer database files

 Taking care of the customer files
 Well trained in product information and documentation
 Renewals will be informed periodically.

Required skills for employees in Max New York Life Insurance:
 Interpersonal skills
 Excellent communication skills
 Understanding nature
 Aggressiveness
 Convincing skills
 Ability to motivate others
 Interest to learn

Analysis of the Questionnaire
Analysis of office staff who are having sufficient Knowledge on life Insurance .
6
New Advisors
Advisors 18
Telecallers 4
Marketing Executives 2
Diagram of the table:
20
15
10
0
newadvisors advisors telecallers marketingexecutives
Analysis of the table:

The above chart shows that advisors only have more knowledge than telecallers,
marketing executives and new advisors. Advisors will complete the deals. But after that
everything will be taken care by operations executives and telecallers. Without sufficient
knowledge these both people can’t work well. When the telecaller is calling to customer
for renewal premium that person should have a knowledge how the premium should
calculate, and they should know any extra charges for late payment, and how much grace
period will be… these things should be known even by telecallers and operations
executives too.
Q1. How do you feel about the Training Programme?

Very good 15
Good 8
Fine 4
Bad 2
Time waste process 1
16
14
12
10
8
6
4
2
0
very good good fine bad time waste
process
Here 50% of the employees feel good about the program and another 50% says that it is not
upto that extent which was expected. That means training process should still more be
improved.
Q2. How far is the training effective?
Very helpful 7
Helpful 8
Fine 2
Can be done from other sources 3
Time waste process 0

8
7
6
5
4
3
2
1
0
very helpful helpful fine othersources time waste
This shows that the training process is very effective and it is very much
needed. Training of agents in Insurance Industry almost decides its success
and failure. Therefore, training to Advisors is very important.
Q3. Did you understand about all the products during the process?
All the products 10
Some products 10
Few products 5
No clear idea 5
Nothing 0

10
0
all the products some products fewproducts no clear idea nothing
As we have already known that the training process is effective, here hence
forth it is clear that the products they deal is quite well communicated to the
agents. But still if more focus is given to the agents who are poor in
understanding then it would a complete deal.
Q4. After the training, do you think you improved your interpersonal skills?
Yes 25
No 5
25
20
15
10
0
yes no
As we know, training is good for Agents, it is also necessary to improve their

interpersonal skills for their individual growth and till to very good extent it is
successful.

So, because of this training they even improve their skills for their individual growth
which is important for their career.
Q5. During the process, is there any training program, which can improve your
communication skills?
Yes 10
No 20
20
15
10
0
yes no
To communicate the products well to our customer, we should have very good
communication skills, but here there is no good session to practice and improve their
communication skills. Now I recommend to have more sessions to improve this
quality of theirs’.
Q6. Are you satisfied with the training process in terms of teaching, and
environment?
Very much satisfied 8

Satisfied 10
Needs improvement 10
Not at all 2
Cant say 0
10
8
6
4
2
0
very m uch needs cant say
satisfied im provem ent
Teaching environment is good but it still need more improvement because more
agents are not completely satisfied with the environment and they complained about
its punctuality.
Q.7. Is the approach of your trainer with you is good and friendly?
Good 15
Fine 8
Bad 5
Rude 3
15
10
0
good fine bad rude

Q.8. Do you think, you have made any improvement in your performance after the
training?
Lot of improvement 8
Don’t know 10
No improvement 10
Instead deteriotated 2
20
15
10
0
lot ofimprovement don’t know no mprovement deteriotated
This is a mixture of comments. These people here were not able assist themselves.
But anyway the majority gave positive results.
Q.9. Who needs much knowledge regarding the company and its products?
Agents 5
Tele callers 4
Operational executives 1
Recruitment consultants 0
All the above 20

20
15
10
0
agents telecallers operational recr consultants all
executives
This table shows that all the people related to Insurance companies should be having
sufficient knowledge about the company and its products. When a customer
approaches he may not have idea about his designation, so everyone should be aware
of the same.
Q.10. For which areas, the agent needs training?
Company policies and procedures 1
Skill based training 0
Problem solving skills/objections 2

handling.
Communications skills. 2
All 20
20
15
10
0
companypolicies sillsbased problmsolving communitnskills all

The survey tells us that, an agent should take training for all the areas. It is not
sufficient to have proper knowledge only about the products when you don’t know
how to present them. He should be talented enough to answer or solve all the odd
questions a customer asks. So, agent should get training for all the areas mentioned.
Q.11 Are all the benefits, incentives and promotions in MNYL are communicated
properly to you? Are you satisfied?
Yes 25
No 5
25
20
15
10
0
yes no
Q.12. To which level did the training motivate you to give your best performance?
Very strong 17
Fine 9
Didn’t get motivated 2
Time wasted 0

20
15
10
0
verystrong fine ddnt get motivated time wasted
As we know that the training process has been very effective, the trainer has a very
good motivating skill which motivates other people very well. This survey tells that after the
training they got goose bumps and they felt very strongly motivated and they will be doing
their work very efficiently.
Q.13. Group activities are conducted to find out creative ideas and suggestive
from the participants?
Strongly agree 20
Agree 5
Neutral 0
Disagree 3
Strongly disagree 2

20
15
10
0
stronglyagree agree neutral disagree stronglydisagree
As there is a saying, “Unity is stronger”. It tells that, when a group activity is done it
unconsciously creates very good ideas and suggestions which can be very beneficial for the
other team members as well as for the organization.
Q.14. Is the environment of MNYL friendly?
Yes 25
No 5
25
20
15
10
0
yes no
Q.15. The training is very stressful?

Interesting 15
Fine 10
Boring 4
Cant Comment 1
15
10
0
interesting fine boring no comm ents
The agents feel very interesting about the training program which shows good
vibes to us. But a very few people find it a bit boring which is negligible.
Q.16. Do you want to make any changes in the training?
Yes 20
No 10
20
15
10
0
yes no

Maximum people are satisfied with the training and they don’t want any
changes. But still there are a few people who want some changes in the program.
Q.17. If yes what?
33% of the people wanted changes in the training program. The changes
which they wanted are listed below:-
• Change in timings.
• Instead of coming every day, they wanted a few holidays in between.
• Some people wanted to have online training programs.
• Some wanted brief description instead of detailed which is taking 10 days.
Q.18. Do you think the participants were involved properly during the training
process?
Yes, all the participants or agents were involved very well in the training
programs. Everyone was excited to know the products to play tasks, and they were
attentive also.

Q.19. Were you are exposed to
Brainstorming sessions 2
Group Discussion 8
Lecture Sessions 20
Business Game 0
All the above 0
20
15
10
0
brainstorming groupdiscussion lecture businessgame all the above
The survey tells that agents were mostly exposed to Lecture Sessions, which
means the trainer was giving more information about the projects instead of asking or
making ice-breaking sessions. But anyway 30% of the people also say that they were
exposed to Group Discussions as well.

Q.20. During the training, how well you were communicated the objectives of
the training programme?
The survey tells that the objectives were communicated very well for which
they were tempted and joined MNYL. And now they were happy to be a member of
MNYL family.
Findings
 Training program is good but it should still more be improved.
 During training program, poor agents who are weak in their communication skills and
English are not able to understand.
 Because of training, employees became more loyal to the organization, as they came
to know the vision and mission of the Industry.
 Training made the employees and agents more useful to the firm.
 Training improved their interpersonal skills which is very helpful for their career
growth and individual growth.
 But there are no sessions which can improve their communication skills.
 Training classes are not commencing on time.
 The trainer is good and friendly.
 All the members in the Industry should have knowledge about the products.
 Training can contribute to higher production and fewer mistakes, greater job
satisfaction and lower employee turnover. Also, it can enable employees to cope up
with organizational, social and technological change.

Recommendations
 Create awareness: The Company has to take care of awareness creation about the
products and services among the Advisors/Agents
 There should be more sessions which can improve their communication skills.
 The classes should commence on time.
 The company has to give periodic training.
 Extra training should be given to poor students.
 Product promotion strategies should be improved.
 Company should consider the present competition and should act according to the
customer needs.

 It Should be like long term training like Fundamental Carrier class , Basic Carrier
class which helps the advisors in different stages.
Key Learning
 Before this internship project my knowledge about the insurance industry was quite
bleak. This internship in MNYL has immensely helped me in categorizing the
different financial products.
 Another of my crucial learning has been in the area of communication with the
outside world. Finding a possible prospect and then giving them information about
the opportunities available was a really tough challenge.
 Majority of the population in DELHI and NCR have a negative perception about the
insurance industry. Giving them appropriate information about the opportunity to
earn in this field was a challenging task.
 Along with the information on the job, the staff of MNYL also gave many inputs that
would definitely help in the management field.

CONCLUSION
It has been a great experience working with Max New York Life. I have gained a lot of
knowledge and improved immensely on my skills. I got the opportunity to meet and
communicate with many people and undertake responsibility. I feel that MNYL is a great
organization with plenty scope for growth. One of the main reasons in the success of this
project was the constant appreciation and motivation from the concerned guides of company
as well as college. The internship was both informative and also interactive.
In this Knowledge-based economy, training helps people to learn how to do the things
differently or to the different things. Products are now increasingly knowledge-intensive; for
this employers are responsible for providing opportunities for continued learning. To cope
with the challenges and competitiveness in the world, every organization needs the services
of trained persons for performing the activities in the systemic way. So, training program
plays a key role in individual as well as organizational performance.

BIBLIOGRAPHY
 www.maxnewyorklife.com
 www.google.com
 www.encylopedia.com
 IC 33 book of max newyork life
 Lynton, R.P. and Pareek, U. “Training for development”, 2nd Ed., New Delhi:
Vistaar publication, 2002.
 Bhatnagar, O.P. “Evaluation methodology for training”, New Delhi: Oxford

and IBH publishing co.pvt.ltd.
 Rae, L. “The art of training and development, effective planning”. Vol. 1,

New Delhi.
 Tannenbaum, S. “A strategic view of organizational training and learning”.
 A hand book of human resource management practice, 8th ed., 2001.

QUESTIONNAIRE
Name:
Age:
Designation:
Work Experience:
Income Level
Q.1. How do you feel about the Training Programme?
A. Very Good
B. Good
C. Fine
D. Bad
E. Time waste process
Q.2. How far is the training effective?

A. Very helpful
B. Helpful
C. Fine
D. Can be done from other sources
E. Time waste process
Q.3. Did you understand about all the products during the process?
A. All the products
B. Some products
C. Few products
D. No clear idea
E. Nothing
Q.4. After the training, do you think you improved your interpersonal skills?
A. Yes
B. No

Q.5. Do you think or feel, the training program is helpful for your individual growth in
your career?
A. Yes
B. No
Q.6. During the process, is there any training program, which can improve your
communication skills?
A. Yes
B. No
Q.7. If Yes, What is the programme?
Q.8. Are you satisfied with the training process in terms of teaching, and environment?
A. Very much satisfied
B. Satisfied
C. Needs improvement
D. Not at all
E. Cant say
Q.9. Do you feel the training program is very lengthy and boring?
A. Yes
B. No

Q.10.How many days do you think this training process should take place.
A. 4-5 days
B. 5-6
C. 6-7
D. 7-8
E. 8-9
Q.11. Is the approach of your trainer with you is good and friendly?
A. Good.
B. Fine.
C. Bad.
D. Rude.
Q.12. Does your boss or trainer give you a patient ear and clear all the doubts?
A. Yes.
B. No.

Q.13. Do you think, you have made any improvement in your performance after the
training?
A. Lot of improvement.
B. Don’t know.
C. No improvement.
D. Instead deteriorated.
Q.14. Who needs much knowledge regarding the company and its products?
A. Agents.
B. Tele callers.
C. Operational executives.
D. Recruitment consultants.
E. All.
Q.15. For which areas, the agent needs training?
A. Company policies and procedures.
B. Skill based training.
C. Problem solving skills/objections handling.
D. Communications skills.
E. All the above.

Q.16. Is the environment of MNYL friendly?
A. Yes.
B. No.
Q.17. Are all the benefits, incentives and promotions in MNYL are communicated
properly to you? Are you satisfied?
A. Yes.
B. No.
Q.18. To which level did the training motivate you to give your best performance?
A. Very strong.
B. Fine.
C. Didn’t get motivated.
D. Time waste.
Q.19. The training is very stressful?
A. Interesting.
B. Fine.
C. Boring.
D. Can’t comment.

Q.20. Do you want to make any changes in the training?
A. Yes.
B. No.
Q.21. If yes what?
………………………………………………………………………………………
………………………………………………………………………………………
Q.22. 3 modules you liked the most?
………………………………………………………………………………………
………………………………………………………………………………………
Q.23. Do you think the participants are involved properly during the training process?
………………………………………………………………………………………
Q.24. Group activities are conducted to find out creative ideas and suggestive from the
participants?
A. Strongly agree.
B. Agree.
C. Neutral.

D. Disagree.
E. Strongly disagree.
Q.25. Are you are exposed to
A. Brainstorming sessions.
B. Group discussion.
C. Lecture sessions.
D. Business game.
E. All the above.
Q.26. During the training, how you were communicated the objectives of the training
programme?
………………………………………………………………………………………

Shadman Haider

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ACKNOWLEDGEMENT

task of training to a successful end.

First of all, I consider it a pleasant duty to express my heart felt appreciation,

guidance to complete my project successfully.

way to prepare my project report.

Shadman Haider, MBA IIIrd Sem 1

I hereby declare that this report on “RECRUITMENT OF ADVISORS AND

Shadman Haider, MBA IIIrd Sem 2

This Report is an attempt to provide a detailed analysis of the process of training

In an Insurance Industry, training programs is the key to success. Its effectiveness

Shadman Haider, MBA IIIrd Sem 3

8. Data analysis & interpretation 84

9. findings Of Study 119

Shadman Haider, MBA IIIrd Sem 4

This Report is an attempt to provide a detailed analysis of the process of

In my complete student internship program I met more than 90 employees.

However, my survey suggests that maximum number of employees, in the

Finally, creating awareness of organization structure and its products to the

Shadman Haider, MBA IIIrd Sem 5

The main objective of doing this project is to study Financial Consultants’

Shadman Haider, MBA IIIrd Sem 6

Insurance may be described as a social device to ensure protection of economic value

In the words of D.S. Hansell, “Insurance accumulated contributions of all parties

Shadman Haider, MBA IIIrd Sem 7

 Payment on happening of a special event

 The amount of payment depends on the nature of losses incurred.

 Insurance is a legal contract which is based upon certain principles of insurance

1. utmost good faith

 The scope of insurance is much wider and extensive.

Shadman Haider, MBA IIIrd Sem 8

3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating

4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to

1. Prevention of losses: - Insurance cautions businessman and individuals to adopt suitable

3. Contributes towards development of larger industries.

Means of savings and investment:

Shadman Haider, MBA IIIrd Sem 9

Investment income.:- However, investment income depends on market conditions, interest

 The insured must suffer financial loss if the risk operates.

 The loss must be measurable in money,

 The object of the insurance contract must be legal.

Shadman Haider, MBA IIIrd Sem 10

The fundamental Principles of the Insurance are as follows:

Insurable Interest may arise in the following manner:

Shadman Haider, MBA IIIrd Sem 11

Shadman Haider, MBA IIIrd Sem 12

The following are the essential elements:

Shadman Haider, MBA IIIrd Sem 13

Reasonable or not, risks are inescapable in business. Every business venture is

Pure Risk versus Speculative Risk

Approaches to Risk Management

 To identify all the things those can possibly go wrong. ·

 To consider the probability that an event will occur.

Shadman Haider, MBA IIIrd Sem 14

Shadman Haider, MBA IIIrd Sem 15

Shadman Haider, MBA IIIrd Sem 16

Origin of Life Insurance

Origin of Life Assurance In India

The Swadeshi Movement of 1905 provided impetus to the formation of several

Shadman Haider, MBA IIIrd Sem 17

The Government began to exercise a certain measure of control on Insurance business

 To utilize the funds for nation-building activities.

 To avoid cut throat competition