ACKNOWLEDGMENT

To complete a project successfully is never a one man approach. While doing this project we have accepted valuable helps and suggestions from various people. We feel pride to put on record that the enormous task of our project work would not be possible but for effective guidance and helping attitude of our respective Company guide of Max New York Life Insurance Company, Agartala, Mr. Gangadhar Chakraborty and Faculty guide of ICFAI NATIONAL COLLEGE, Agartala, Mr. Nirmalya Debnath who has not only helped us a lot but constantly catalyzes our inspiration. We would like to express our regard and gratitude to them for their valuable guidance and suggestions. We also hope that they will forgive for any un knowing fault in our project work. We look forward to receive further help and suggestions of this kind. We also want to thank the Coordinator of B.B.A of ICFAI NATIONAL COLLEGE, Agartala, Mr. SHAFIQ UL HASSAN & Training Manager of Max New York Life Insurance Company, Agartala, Mr. Anup Das for their timely guidance and support. Finally I am indebted to other faculty members, my friends and my parents who gave their full- fledged co-operation for successful completion of my project.

(RAHUL DAS)
Roll no.-08ATUA017 INC AGARTALA

FINIANCIAL PRODUCTS
Life plans: Products Level Term Whole Life Par Life PartnerTM Plus Premium payment term 5,10,15.20 or 25 years or to 60 years Regular 3,7,10,20 years Benefit Provides high insurance cover at low cost a. Covers till the age of 99. B.Accidental death benefit. Provides up to 212.5% returns from of 61-75 years

Growth Plans: Products SMART AssureTM Life MakerTM Premium Premium payment term Regular a. Regular pay b. Limited pay- 5,10 &15 years 3 pay, 5 pay or single premium Benefit The more you pay, the lesser are the charges a. 100% equity fund b. Investment option based on risk taking ability. a. NAV never comes down b.Comprehensive coverage through accident and dreaded disease cover

Smart XpressTM

Pension Plans: Products Premium payment term Benefit

SMART Invest TM

a. Regular pay-Rs.10,000 b. Single pay-Rs.1,50,000

a. Better returns b. Lesser charges deducted c. Increase investment when you have the money

Child Plans: Products SMART Steps TM Premium payment term Regular pay Benefit 5% of SA to be paid every year subject to maximum of 100% of SA. a. Guaranteed payout b.The plan will automatically vest in child when he turns 18

Child Endowment TM

a. Regular pay- Rs.1,00,000 b. Single pay- Rs. 75,000

Health Plans: Products LifeLine Medicash Plus LifeLine Wellness

TM

Premium payment term

TM

Benefit Covers most of hospitalization expenses. a. As many as 38 critical illness covered under this plan b. 3 simple and easy steps to make the claim a. Coverage tenure of 30 years b. Gives financial protection from critical illness, disability, death. a. Complete family coverage b. Maximum critical illness covered. c. Easy claim process d. Cover even at the age of 65

Half yearly, yearly & monthly mode a. Minimum- Rs. 2,500(yearly mode) b. Maximum- Rs.1,300 ( half yearly mode) Regular pay

Plan

LifeLine Safety Net TM

LifeLine Healthy Family TM

Regular pay

ABSTRACT
In todays corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to other sectors. This growth potential attracts me to enter in this sector and MAX NEW YORK LIFE has given me the opportunity to work and get experience in highly competitive and enhancing sector. The project starts with the company profile. It also gives information regarding various products of MNYL. The main aim of this project is to make a report on the sales and distribution strategy followed by MNYL. Efficiency in delivery system tends to determine the shape of the market. In insurance sector the different distribution channels like banks, corporate agencies, finance companies play an important role in distributing the products. Agents are the best way through which policies and benefits of the company can be explained to the customer. If MAX NEW YORK LIFE has adequate agents in the market, it can capture big market as compared to other companies. This project contains the objective, methodology, analysis, major findings& suggestion of my survey on the basis of questionnaire.

INTRODUCTION
In B.B.A course curriculum, project work is essential to gather practical experience in the field of trade, business in general & particularly in areas like marketing, finance, production & human resource development. So, every student undergoes project work in any organization with repute. The main objective of such project work is to expose the student to the actual environment that prevails in todays industry & also inform the student the practical realities. Although carrying out a study on a specific topic in a particular organization expose the student to be informed dynamics of the organization. As far my project work is concerned, I underwent to the MAX NEW YORK Life Insurance Company, Agartala for doing my project work. The topic of my project was, A study on the sales and distribution strategies of different products followed by MNYL. The project report is stocked by imparting information related to the company, its historical background. Apart from the introductory information the project tried to capture various issues & facts.

OBJECTIVES: To study the sales strategy of MAX NEW YORK Life. To study the distribution channel of MNYL. To study the satisfactory level of the customers.

LIMITATIONS: While collecting data few people were not comfortable to interact. The time period of the study was limited.

METHODOLOGY

PRIMARY: Field Survey Data Collection through Personal Interview. Tools used for data collection (Questionnaire). Sample size- 100

SECONDARY: Personal Interview of the sales authority of MNYL. Through internet from the web page given below www.maxnewyorklife.com

COMPANY PROFILE
Max New York Life Company limited is a joint venture between New York Life, a fortune 100 company and Max India Limited, one of Indias 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 service and specialty plastic product business. Max New York Life Insurance started in India in the year 2000. MNYL wants people to view insurance as a financial and wealth creation instrument and not just a tax saving tool. MNYL is the first Life Insurance Company to get ISO 9001-2000 certification. MAX NEW YORK Life insurance has a network of 57 offices spread over 37 cities all over India. MAX NEW YORK Life, one of Indias leading life insurance companies wants people to view insurance as a financial protection and wealth creation instrument and not just a saving tool. Te focus of MNYL has always been on providing risk protection and long term wealth creation solution to customers. MNYL has till date sold over 1.53 million policies and recorded a sum assured of over Rs. 46,000 crores. For the last 46 years the largest number of agents qualifying for membership to the Million Dollar Round Table (MDRT) have been from MAX NEW YORK Life.

VISION The vision statement of MNYL is Most admirable Life Insurance Company in India MISSION Become one of the top quartile Life Insurance Company in India. Be a national player. Be the brand of first choice. Be the employer of choice. Become principal of choice for the agent

ACHIEVEMENTS
MAX NEW YORK Life is the first insurance company in India to be awarded the ISO 9001: 2001 certification. MAX NEW YORK Life was among the top 25 companies to work within India according to 2003 Business World Magazine. Been among top 5 most respected private life insurance companies in India according to 2004 and 2006 World Survey. Have truly built an enviable sales force. With 345 agents becoming member of the MDRT in 2006, MNYL has moved up to 21st rank in MDRT global list.

Credit rating received by MNYL by different credit rating agencies

ORGANIZATION STRUCTURE

Head of Office/Location Partner(s) Associate Partner(s) Sales Managers Training Manager(s) Customer Service Manager

BDM Agency Associate / Business Consultant /CEIP Recruitment Manager Agency Coordinator

Agency Associate

Agent Advisors

Accounts & Administration Executive

Customer Service Executive

10

STRATEGIES ADOPTED
Promotion in services
Promotion is a set of activities designed to increase purchases by consumers & is the means through which the service provider communicates with its target market. The promotion of services covers a number of areas or promotional tools which forms the communication mix.

11

The use of promotional tools in the service sector is comparatively of recent origin. Now the fiercely competitive environment has made the service marketers use promotional tools actively. But, promotional tools exercise is not the same for service industry. To communication to the target market by promotion, the various elements communication mix must be integrated together with the program. This process involves many tasks among which the following considered important Identification of target audience. Determination of promotion objective. Selection of communication mix.

Advertising
Previously advertising had limited potential in services. In recent times, advertisements of services especially financial services & telecommunication have shown tremendous growth & as a result the advertising expenditure in these services have grown drastically. There are most important issues in advertising, the most important being the selection of media, determination of advertising goals & methods for determining the advertising budget. Media includes Radio, TV, Newspaper & Periodicals, Direct mail & Outdoor advertising. In selecting the media, the characteristics of the media, its advantages & comparative costs are important factors. Advertising goals are important to an advertising campaign. They should be sound & complete & a measurement of effectiveness of advertisement/advertising campaign is impossible unless satisfactory objectives are specified. The advertising objectives should be explicit, commonly agreed, true, calibrated & testable

Personal selling
It involves oral presentation in conversation with purchases for the purpose of making a sale. Its main objective is to provide specific inputs which can not be achieved by advertiser & non-personal selling at the individual level. Personal selling creates product awareness, arouses interest, develops products preferences & is useful in negotiating prices & other terms in providing post transactional reinforcement. It is a complementary activity to advertisement.

Public relation
12

Public relation as a vital elements in the marketing mix of services, is concerned with the crucial corporate tasks such as Building & managing image of the organization. Handling problems & issues smoothly. Reinforcing positioning. Influencing the public to a position favorable to the marketer. Preparing the public while launching new services.

Word of mouth
Due to risks involved in the purchase of services are intangible. Non-standardized & are usually sold without guarantee. Consumers in the service sector rely directly upon word of mouth while buying the services. Thus mode of communication reduces the perceived risk inherent in the purchase of services. Word of mouth is considered to be more effective than advertisement. Customers utilizing the services take to other potential customers about their experiences. Such endorsement has more reliability & a wider impact than advertisement or other personal communication mix elements.

Direct marketing
It is a form of marketing by which an organization seeks to generate a direct & measurable response to advertising which offers goods & services or information about them. The common criteria in all direct response & hence immediately measurable result. Direct marketing is recognized as a low cost & effective method for communicating with corporate customers due to increasing cost in direct sales force. Developments in electronic media, telephonic communication, internet etc. provide great opportunities for developing integrated programmes for direct marketing. Consequently many service firms begun to take advantage of the benefits of coordinate direct marketing

DISTRIBUTION CHANNEL
In Insurance sector every Insurance company uses different distribution channels to secure a good position in the market. MAX NEEW YORK Life follows some distribution channels:

Agency Channel:

13

In MAX NEW YORK Life Insurance, business is done mainly through Agent Advisors. In India it has more than 55,000 Agents.

Corporate Agent:
In Agartala MAX NEW YORK Life has tie up with companies like Peerless, Amsure, Golden Trust Financial Services (GTFS), and India Polls which act as corporate agents to promote MNYL products.

Direct Sales Team:

MNYL makes a data base of potential customers, contact them on the telephone to market different policies of the company.

Bancassurance:
It is an innovative distribution channel involving banks to sell Insurance products of Insurance Companies. MNYL Insurance Company has tied up with HSBC, YES Bank. MNYL, Agartala has no such Channel

Alternate Channel:
Business is done through associate partner, internet etc.

STRATEGIES FOR FUTURE

Recognize the changes that have taken place in the market place. Understand the implications of these changes for the company. Examine their specific markets and needs. Assess the strengths and capabilities of the Company. 14

 Analyze the distribution options that are available. Select a distribution/ non- distribution strategy that will work in the market place

SALES CYCLE

15

Prospect200

Referred Leads

Approach

Sales Cycle

Decision & Close

Fact Finding

Solution

16

Sales strategy
M N Y L applies these following six steps for selling their product.

Prospect 200:- The initial step is to collect the phone no. of 200 individuals and to
note those down in a respective manner in a plain paper. Generally the sources of p-200 are Natural and Reference. Natural means the contact no. of near and dear ones like friends, relatives, neighbours and mates. Reference means friends of friends, relatives friends, familiar persons etc.

APPROACH: - The next step is to establish preliminary contact with the prospects
via phone.

FACT FINDING: - In this step, the agents visits the house of the customers and
identify their needs. They try to maintain a good relation with the customers.

SOLUTION: - In this step the Agents provide solutions to the problem DECISION & CLOSE- After the solution being provided by the Agents the customer takes decision . REFERRED LEADS: - In this step agent advisers collect some name and phone no.
from the current person, which helps us for the advancement of the

17

TRAINING OF AGENTS
Agents when recruited in the organization have to undergo a basic training for 15 days where they are coded with: Product knowledge. Ways of pitching the products. Ways of convincing people. Objection Handling.

18

ROLE of Agents
Though defined differently as consultants, advisors, etc., an agent is the main component Of the distribution channel in insurance business and the world of insurers look at the institution only through the agent. A sale results when the agent takes the prospect along with him through well- defined steps. The steps are not separate and clear cut, but blended into one integrated process. The steps are: Pre- approach Approach Interview Objections Close Functions Contacts the prospects, studies their needs, offers plans and convinces them to buy. Gathers all the relevant papers, information as needed by the insurer for final selection of the life. Makes continuous efforts to keep the policy alive. Helps policy holder to meet the needs of alteration or changes of any type during the policy. 19

 Finally gets the claim for the assured or for his family as the case may be. Wins the confidence and becomes a permanent friend of the family.

REMUNERATING THE AGENTS

An agent is not a paid employee of the insurer. He acts on commission basis, generally a percentage of the premium he collects. Sec 40A (1) of Insurance Act provides that the maximum amount which can be paid by way of commission is: 35% of the first years premium. 7.5% of the second and third years premium. 5% for the subsequent years. There are certain exceptions to this rule. Normally the insurer fixes the rate within the prescribed limit each for different plans/ schemes. For term assurance, the rates are less. For short duration policies, the rates are less. For annuity plans, pension plans or single premium plans, the rate is much lower.

20

Questionnaire For customer

Personal Information: NameProfessiona) Self employed c) Housewife Educational Qualification: a) 10th pass c) Graduate Marital Status: a) Single QUERIES: 1) How many policies have you taken from MAX NEW YORK Life Insurance Company? a) One b) Two c) Three b) Married b) H.S pass d) Other b) Government service d) Others AgeSex-

2) What type of policy you have taken from Max New York life insurance? a) Life Plan c) Pension Plan b) Child Plan d) Growth Plan

3) How did you come to know about the various plans of MNYL? a) Agents b) Banners

21

c) Banks e) Newspaper

d) leaflets f) Television

4) How do you pay the premium amount of your policy? a) Monthly c) Half yearly b) Quarterly d) Yearly

5) Do you think the premium amount you are paying is affordable? a) Yes b) No

6) Through which medium have you done the policy? a) Agents c) Banks b) Corporate agent d) By own

7) Why did you prefer MNYL for insurance among other insurance companies? a) Advice of parents c) Motivation given by agents b) Self Choice

8) Are you satisfied with the terms & conditions of your existing policy? a) Yes b) No

9) Are you satisfied with the agents activities of MNYL? a) Highly satisfied c) Partially satisfied b) Satisfied d) Not at all satisfied

10) What is your view regarding the advertisement of MNYL? a) Informative c) Influencing e) Wasteful b) Educative d) Boring

11) What do you think about the policies of MNYL in comparison to other Insurance Companies? a) Excellent c) Good e) Poor b) Satisfactory d) Average

12) Other than Insurance in which sector would you like to invest a part of your income?

22

a) Share Market c) Other savings

b) Banking

Questionnaire For non customer

Personal Information: NameProfessiona) Self employed c) Housewife Educational Qualification: a) 10th pass c) Graduate Marital Status: a) Single QUERIES: 1) Are you aware of MNYL? a) Yes b) No 2) How did you know about MNYL? a) Advertisement b) Word of mouth 3) Do you have any Insurance policy? a) Yes b) No 4) In which insurance company did you invest? 5) What type of policy did you take? a) Life plan b) Pension Plan c) Growth Plan d) Child Plan 6) Which term of investment do you prefer? a) Short term b) Long term 7) Did you meet any agent adviser of MNYL? a) Yes b) No 8) Do you know about any plan of MNYL? a) Yes b) No (If Yes than what?) Ageb) Government service d) Others b) H.S pass d) Other b) Married Sex-

23

9) What is your view regarding the advertisement of MNYL? a) Informative b) Educative c) Influencing d) Boring e) Wasteful 10) Other than Insurance in which sector would you like to invest a part of your income? a) Share Market b) Banking c) Other savings

DATA ANALYSIS & INTERPRETATION ANALYSIS OF DATA THROUGH QUESTIONNAIRE OF CUSTOMER:

1. Plans taken by policy holders:

Plans
Growth Pension Life Child

No. of respondents 20 5 20 5

20 18 16 14 12 10 8 6 4 2 0 Growth Pension

Life

Child

24

Interpretation:
It has been found that out of 50 customers, 20 people preferred Growth plan, 5 preferred Pension plan, 20 people went for Life plan and the remaining 5 people have chosen Child plan.

2. Sources of knowledge about various Life Insurance plans of MNYL:

Source
Agents Banners Banks Television

No. of customers
45 0 0 5

50 40 30 20 10 0 Agents Banners Banks Television

Interpretation:
It has been found that, out of 50 people, 45 people has come to know about MNYL plans from MNYL Agents and the rest 5 people has come to know about MNYL

25

from television.

3) Term of premium payment:

Term
Monthly Quarterly Half yearly Yearly

No of respondents
28 0 7 15

30 20 10 0 Monthly Quarterly Half yearly Yearly

Interpretation:

26

Out of 50 customers, 28 paid their premium amount monthly, 7 paid it half yearly and 15 customers paid their term yearly.

4) Reason for the preference of LICI for insurance among the other insurance companies.

Reasons
Advice of parents Self Choice Motivation by agents

No of respondents
0 30 20

30 25 20 15 10 5 0

30 20

0 Advice of parents Self Choice Motivation by agents

Interpretation:
27

From the survey conducted, out of 50 customers, 30 have preferred MNYL for insurance by self Choice and 20 have invested in MNYL due to the motivation given by MNYL agents.

5) Satisfaction of customers about the Agents activities:

Satisfaction Level
Highly Satisfied Satisfied Partially Satisfied Not at all Satisfied

No. of respondents
8 32 10 0

35 30 25 20 15 10 5 0 Highly Satisfied Satisfied Partially Satisfied Not at all Satisfied

Interpretation:

28

It has been found that, out of 50 customers, 8 customers were highly satisfied, 32 were satisfied, and 10 were partially satisfied.

6) Policy holders view regarding MNYL compared to other insurance companies:

View
Excellent Satisfactory Good Average Poor

No. of respondents
12 16 18 4 0

20 18 16 14 12 10 8 6 4 2 0
Av er ag e G oo d Ex ce lle fa ct Po or or y nt

Interpretation: 29

Sa tis

From the survey conducted of 50 people it is found that 12 people gave an excellent grade to MNYL, 16 people viewed it as satisfactory, 18 measured MNYL as good and 4 customers termed MNYL as average in comparison to other insurance companies.

7) Thinking of people for the investment of money in different sectors:-

Sectors
Share Market Banking Other Savings

No. of respondents
18 22 10

25 20 15 10 5 0 Share Market Banking Other Savings

Interpretation:

30

It has been found that, out of 50 people, 18 people think share market sector as the best sector for investment, 22 people think banking as the best sector for investment & 10 people think the best sector for investment is other savings.

ANALYSIS OF DATA THROUGH QUESTIONNAIRE OF NON CUSTOMER:

1) Awareness of MAX NEW YORK LIFE in Agartala:

Aware
Yes No

Response
36 14

14 Yes No 36

Interpretation: 31

Out of 50 people 36 are aware of MNYL and the other 14 are unaware of MNYL.

2) Company chosen by non customers for investment:

Company
LIC Reliance Rose Valley Bajaj Allianz ICICI

No. of respondents
25 5 10 5 5

LIC Reliance Rose Valley Bajaj Allianz ICICI

Interpretation:

32

It has been found that, out of 50, 25 people have chosen LIC for investment, 5 people each have trusted Reliance, Bajaj Allianz and ICICI for investment where as 10 people have done their policy in Rose Valley.

3) Effectiveness of MNYL advertisement:

Effectiveness
Informative Educative Influencing Boring Wasteful

No. of respondents
21 15 12 2 0

20 12 21 Informative Educative Influencing Boring Wasteful 15

Interpretation: It has been found that, out of 50 people, 21 people opined that MNYL advertisements are informative, 15 people opined that these are educative, 12 people opined that are

33

influencing, 2 people opened that they are boring & none of them opined that they are wasteful.

4) Preference of policy maturity term:

Term
Short term Long term

No. of people
35 15

15 Short term Long term 35

Interpretation: Out of 50 people, 35 people have preferred short term plans where as 15 people have preferred long term plans for maturity.

34

FINDINGS
The entrance of private players has increased the competition and it has become a tough task to secure a good position in the market. Agents are playing an important role in making new customers & motivating them. People opined that MNYL advertisements are informative, educative & influencing also. People are satisfied with the activities of MYNL agents. 80 % people prefer short term plans.

RECOMMENDATIONS
Since MAX NEW YORK Life is leading with several companies policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer thereby forming a long and trusted relationship. MNYL should introduce short term plans. MNYL should take necessary strategies to increase customer base in semiurban & rural areas which offer huge market potential. MNYL should take aggressive advertisement strategy for rural areas. The promotional tools should be more strengthened for better promotion of services.

35

 Customer meets, seminars, public meetings can be done for the awareness programmes of MNYL plans by the Agents. The advertisements should clearly depict the plans in regional languages if possible; it will help for the better awareness & understanding of the advertisements on the part of the customers. ATM payment system can be introduced by using all Bank ATM cards especially SBI ATM card. Other ATM cards available in Agartala are UBI ATM, AXIS Bank ATM, ICICI Bank ATM etc. Design innovative new plans & products to suit the needs of the rural people.

CONCLUSION
The project has given a good opportunity to understand the different activities of MNYL, the different promotional tools to market their products, the various distribution channels of MNYL, the views of customers etc. It is found that MNYL is trying to reach the, masses with their valuable insurance services & we are expecting that MNYL will contribute their resources for the development of nation. MNYL has many policies which need low premium to pay on part of the customers but yields high benefit. Moreover, MNYL has modern methods of premium payment which are ultimately beneficial to the customers. The project helps me to understand the various facts & figures of MNYL Agartala, which is very satisfactory indeed. I hope that, if the recommendations given in the project report are followed, then the customers will increase in number & their satisfaction towards MNYL Agartala will also increase.

36

BIBLIOGRAPHY

MAGAZINE:
Business world. WEB SITE: www.maxnewyorklife.com

37