A PROJECT REPORT ON

“Potential of Life Insurance Industry in Delhi”

Submitted in partial fulfillment of the requirements for the award

degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide Submitted by

Mr. Rajkamal Kumar Anoop Thakur

(Lecturer) 0372051808
BBA(B&I)], 5th sem

BLS Institute of Technology Management

Delhi-Rohtak Road, NH-10, Jakhoda,

Bahadurgarh-124507 (HR.)
Batch (2008-2011)

1
 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude that I got a great chance to work

within such an esteemed organization as “Max New York Life Insurance”.

The amount of exposure and support, which I have been received during my study

there, has been simply outstanding.

A Special word of thanks to Mr. Pulkit chopra, Human resource manager, (BLSI)
for giving me an opportunity to work in his organization.

I express my special thanks to all the employees especially Mr. Rajnish kumar,
Assistant project manager, at MNYL for their support and spending time for necessary

information gathering and data collection for the study.

I am grateful to the MNYL, organization for giving me this opportunity to pursue my

summer internship.

2
 CERTIFICATE

I, Mr. Anoop Thakur Enrollment no. 0372051808 certify that the Summer Training

Report (Paper Code BBA 315) entitled “ Potential of Life Insurance Industry
In Delhi)” is done by me and it is an authentic work carried out by me at Birla sun life
insurance. The matter embodied in this has not been submitted earlier for the award of any
degree or diploma to the best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Summer Training Report (Paper Code BBA 315) entitled “Potential Of
Life Insurance Industry In Delhi” is done by Mr. Anoop Thkur, E.No.
0372051808, is completed under my guidance.

Signature of the Guide

Date:

Name of the Guide:

Designation:

Countersigned

Director

3
 CONTENTS

PARTISULARS Page No.

Acknowledgement 7
Executive Summary 8

Introduction 9

• Introduction of the Industry

 Life Insurance 11

 General Insurance 12

13
 Major Policy changes
14
 Changing Face of Indian Insurance Industry
15
 Various types of Life Insurance Policies

• Introduction of the Company

18
 Company Profile
19
 Achievement
20
 Management
21
 Insurance Plans

Research Methodology

• Objective 26

27
4
• Scope of study 28

• Sampling Methodology 29

• Limitations
Survey

• Graph Analysis & Data Interpretation 30-47

Findings & recommendations

• Findings & Recommendations 49

• Growth Potential 50

• Conclusion 51

Bibliography 52
Annexure

• Questionnaire 54-55

LIST OF GRAPHS

Particulars Page No.

[Fig 1] No of People Having Insurance 30

5
[Fig 2] Types of Insurance Policy Respondents Have

31

[Fig 3] Preferance of Respondents of Insurance Co’s 32

[Fig 4] Benefits of Insurance Perceived by Respondents 33

[Fig 5] Features of Insurance Policy That Attracted Respondents 34

[Fig 6] Peoples Perception About Insurance 35

[Fig 7] Persons Having Insurance For 36

[Fig 8] Reasons Behind Taking Insurance Policies 37

[Fig 9] Satisfaction of Respondents With Respect to Policies 38

[Fig 10] Satisfaction of Respondents With Respect to Agents 39

[Fig 11] No of Respondents Paying Tax 40

[Fig 12] Respondents Perception About Best Form of Investment 41

[Fig 13] Peoples Perception of Appropriate Age For Buying Insurance 42

6
[Fig 14] Peoples Opinion About Insurance Companies in India 43

[Fig 15] What People Look For in Insurance Companies 44

[Fig 16] People Interested In Going For Insurance Away From Their City 45

[Fig 17] People Planning For New Investment 46

EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that Insurance sector has the

maximum growth and potential as compared to the other sectors. Insurance has the

maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of

growth rate. This growth potential attracts me to enter in this sector and MAX NEW

7
YORK LIFE INSURANCE has given me the opportunity to work and get experience

in highly competitive and enhancing sector.

• The success story of good market share of different organizations depends

upon the availability of the product and services near to the customer, which

can be distributed through a distribution channel. In Insurance sector,

distribution channel includes only agents or agency holders of the company. If

a company like MAX NEW YORK LIFE, BAJAJ ALLIANZ, TATA AIG, etc

has adequate agents in the market they can capture big market as compared to

the other companies.

• Agents are the best way for a company of Insurance sector through which

policies and benefits of the company can be explained to the customer.

8
INTRODUCTION

 Introduction of the Industry

 Introduction of the Company
♦ Company Profile
♦ Achievements
♦ Management
♦ Insurance Plans

9
THE HISTORY OF INDIAN INSURANCE INDUSTRY

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

that prompts modern businessmen today to secure themselves against loss and disaster

existed in primitive men also. They too sought to avert the evil consequences of fire

and flood and loss of life and were willing to make some sort of sacrifice in order to

achieve security. Though the concept of insurance is largely a development of the

recent past, particularly after the industrial era – past few centuries – yet its

beginnings date back almost 6000 years.

Life Insurance

In 1818 the British established the first insurance company in India in Calcutta, the

Oriental Life Insurance Company. First attempts at regulation of the industry were

made with the introduction of the Indian Life Assurance Companies Act in 1912. A

number of amendments to this Act were made until the Insurance Act was drawn up

in 1938. Noteworthy features in the Act were the power given to the Government to

collect statistical information about the insured and the high level of protection the

Act gave to the public through regulation and control. When the Act was changed in

1950, this meant far reaching changes in the industry. The extra requirements included

a statutory requirement of a certain level of equity capital, a ceiling on share holdings

in such companies to prevent dominant control (to protect the public from any

adversarial policies from one single party), stricter control on investments and,

generally, much tighter control. In 1956, the market contained 154 Indian and 16

foreign life insurance companies. Business was heavily concentrated in urban areas

and targeted the higher echelons of society. “Unethical practices adopted by some of

10
the players against the interests of the consumers” then led the Indian government to

nationalize the industry. In September 1956, nationalization was completed, merging

all these companies into the so-called Life Insurance Corporation (LIC). It was felt

that “nationalization has lent the industry fairness, solidity, growth and reach.”

Some of the important milestones in the life insurance business in

India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance companies.

General Insurance

The General insurance business in India started with the establishment of Triton

Insurance Company Limited in 1850 at Calcutta. In 1907, the first company, The

Mercantile Insurance Ltd. Was set up to transact all classes of general insurance

business. General Insurance Council, a wing of the Insurance Association of India in

1957, framed a code of conduct for ensuring fair conduct and sound business

practices. In 1968 the Insurance Act was amended to regulate investments and to set

minimum solvency margins. In the same year the Tariff Advisory Committee was also

set up. In 1972, The General Insurance Business (Nationalization) Act was passed

to nationalize the general insurance business in India with effect from 1st January

11
1973. For these 107 insurers was amalgamated and grouped into four company’s viz.,

the National Insurance Company Ltd., the New India Assurance Company Ltd., the

Oriental Insurance Company Ltd., and the United India Insurance Company Ltd.

General Insurance Corporation of India was incorporated as a company

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

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

classes of general insurance business.

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

frames a code of conduct for ensuring fair conduct and sound business practices.

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

margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the

general insurance business in India with effect from 1st January 1973. 107 insurers

amalgamated and grouped into four companies viz. the National Insurance

Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance

Company Ltd. and the United India Insurance Company Ltd. GIC incorporated

as a company.

12
MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance

companies with the enactment of Insurance Regulatory and Development Authority

Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance

Regulatory and Development Authority (IRDA) was established on 19th April 2000

to protect the interests of holder of insurance policy and to regulate, promote and

ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for

the entry of private players into the insurance market which was hitherto the exclusive

privilege of public sector insurance companies/ corporations. Under the new

dispensation Indian insurance companies in private sector were permitted to operate in

India with the following conditions:

Company is formed and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or

through its subsidiary companies or its nominees, do not exceed 26%, paid up equity

capital of such Indian insurance company;

The company's sole purpose is to carry on life insurance business or general insurance

business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is Rs.100

crores.

The minimum paid up equity capital for carrying on reinsurance business has been

prescribed as Rs.200 crores.

13
The Authority has notified 27 Regulations on various issues which include

Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-

insurance, Obligation of Insurers to Rural and Social sector, Investment and

Accounting Procedure, Protection of policy holders' interest etc. Applications were

invited by the Authority with effect from 15th August, 2000 for issue of the

Certificate of Registration to both life and non-life insurers. The Authority has its

Head Quarter at Hyderabad.

Changing face of Indian insurance industry:

14
Indian life-insurance market is the target market of all the companies who either want

to extend or diversify their business. To tap the Indian market there has been tie-ups

between the major Indian companies with other International insurance companies to

start up their business. The government of India has set up rules that no foreign

insurance company can set up their business individually here and they have to tie up

with an Indian company and this foreign insurance company can have an investment

of only 24% of the total start-up investment.

Indian insurance industry can be featured by:

• Low market penetration.

• Ever growing middle class component in population.

• Growth of customer’s interest with an increasing demand for better insurance

products.

• Application of information technology for business.

• Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players,

each of which are making strides in raising awareness levels, introducing innovative

products and increasing the penetration of life insurance in the vastly underinsured

country. Several of private insurers have introduced attractive products to meet the

needs of their target customers and in line with their business objectives. The success

of their effort is that they have captured over 28% of premium income in five years.

The biggest beneficiary of the competition among life insurers has been

the customer. A wide range of products, customer focused service and professional

advice has become the mainstay of the industry, and the Indian customer’s forms the

pivot of each company’s strategy. Penetration of life insurance is beginning to cut

15
across socio-economic classes and attract people who have never purchased insurance

before.

Life insurance is also now being regarded as a versatile financial

planning tool. Apart from the traditional term and saving insurance policies, industry

has seen the entry and growth of unit linked products. This provides market linked

returns and is among the most flexible policies available today for investment. Now

products are priced, flexible, and realistic and sustain so people in better position to

understand the risk and benefits of the product and they are accepting these innovative

products.

So it is clear that the face of life insurance in India is changing, but with

the changes come a host of challenges and it is only the credible players with a long

term vision and a robust business strategy that will survive. Whatever the

developments, the future and the opportunities in this industry will surely be exciting.

Various types of life insurance policies:-

• Endowment policies: This type of policy covers risk for a specified

period, and at the end of the maturity sum assured is paid back to policyholder

with the bonuses during the term of the policy.

• Money back policies: This type of policy is for periodic payments of

partial survival benefits during the term of the policy as long as the policy

holder is alive.

• Group insurance: This type of insurance offers life insurance protection

under group policies to various groups such as employers-employees,

professionals, co-operatives etc it also provides insurance coverage for people

in certain approved occupations at the lowest possible premium cost.

16
• Term life insurance policies: This type of insurance covers risk only

during the selected term period. If the policy holder survives the term, risk

cover comes to an end. These types of policies are for those people who are

unable to pay larger premium required for endowment and whole life policies.

No surrender, loan or paid up values are in such policies.

• Whole life insurance policies: This type of policy runs as long as the

policyholder is alive and is covered for the entire life of the policyholder. In

this policy the insured amount and the bonus is payable only to nominee on the

death of policy holder.

• Joint life insurance policies: These policies are similar to endowment

policies in maturity benefits and risk cover, but joint life policies cover two

lives simultaneously such as married couples. Sum assured is payable on the

first death and again on the death of survival during the term of the policy.

• Pension plan: A pension plan or annuity is an investment over a certain

number of years but does not provide any life insurance cover. It offers a

guaranteed income either for a life or certain period.

• Unit linked insurance plan: ULIP is a kind of insurance plan which

provides life cover as well as return on premium paid over a certain period of

time. The investment is denoted as units and represented by the value called as

net asset value (NAV).

17
COMPANY PROFILE

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

Life, a Fortune 100 company and Max India Limited, one of India's leading multi-

business corporations. The company has positioned itself on the quality platform. In

line with its vision to be the most admired life insurance company in India, it has

developed a strong corporate governance model based on the core values of

excellence, honesty, knowledge, caring, integrity and teamwork. The strategy is to

establish itself as a trusted life insurance specialist through a quality approach to

business.

In line with its values of financial responsibility, Max New York Life has adopted

prudent financial practices to ensure safety of policyholder's funds. The Company's

paid up capital is Rs. 907.4 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 programme 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

18
agents at Max New York Life and ensures development of skills and knowledge

through a structured programme 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.

337 agent advisors have qualified for the Million Dollar Round Table (MDRT)

membership in 2007. MDRT is an exclusive congregation of the world’s top selling

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

life insurance business.

Having set a best in class agency distribution model in place, the company is

spearheading a major thrust into additional distribution channels to further grow its

business. The company is using a five-pronged strategy to pursue alternative channels

of distribution. These include the franchisee model, rural business, direct sales force

involving group insurance and telemarketing opportunities, bancassurance and

corporate alliances.

Max New York Life offers a suite of flexible products. It now has 43 life insurance

products and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need.

VISION

To become one of the most admired life insurance company of India.

MISSION

• Become one of the top quartile life insurance companies in India

19
 • Be a national player

• Be the brand of first choice

• Be the employer of choice

• Become principal of choice for agents

VALUES

Knowledge:

Knowledge leads to expertise; and our expertise is in helping people protect

themselves. Perfectly combining global expertise with local knowledge, we are India's

life insurance specialist. Max New York Life believes that for knowledge to be of

value it must be focused, current, tested and shared.

Caring:

Max New York Life is redefining the life insurance paradigm by focusing

on customers first. The service process is responsive, personalized, humane and

empathetic. Every individual who represents the company is for us our brand

champion.

Honesty:

Honesty is the heart of the life insurance business. It is all about trust. Transparency,

integrity and dependability form the cornerstones of the Max New York Life

20
experience. The company ensures that everyone who represents the brand carries a

promise : we care — in word as well as deed.

Excellence:

Excellence at Max New York Life implies the ability to perform at a consistently high

level. Focused on the value of continuous improvement in people, processes and the

organization, the company strives for the highest standards of quality in every aspect

of its business.

Max New York Life Insurance, the joint venture between Max India and New York Life

International, has named Rajesh Sud as the new CEO and managing director of the joint venture

operation, effective November 1, 2008, pending formal Insurance Regulatory and Development

Authority approval.

ACHEIVEMENTS

Max New York Life is the first life insurance company in India to be awarded the IS0

9001:2000 certification.

Max New York Life was among the top 25 companies to work with in India,

according to 2003 Business World magazine, "Great Workplaces In India", Max New

York Life was ranked at the 20th position. This survey is the local version of the

"Great Places To Work" survey carried out every year in 22 countries.

Been among top five most respected private life insurance companies in India

according to a 2004 and 2006 Business World survey.

21
Have truly built an enviable sales force. With 345 agents becoming members of the

MDRT in 2006, Max New York Life has moved up to 21st rank in MDRT global list.

MANAGEMENT

BOARD OF DIRECTORS:

Analjit Singh Gary R. Bennett

Chairman, Managing Director and CEO,
Max India Limited Max New York Life Insurance
22
Ted Mathas Anuroop 'Tony' Singh
President & Chief Operating Officer, Vice Chairman,
New York Life Insurance Max New York Life Insurance

MANAGEMENT TEAM:

Gary Bennett Sunil Sharma

Managing Director and CEO, Chief Operating Officer and

Max New York Life Executive Director

Rajesh Sud
Rajit Mehta
Executive Director, Distribution
Executive Director,
Human Resources, Training and
Internal Communications

Sunil Kakar
Anil Mehta
Director and Chief Financial Officer
Director, Group Business

Ajay Seth Debashis Sarkar

Director, Legal & Compliance Director - Marketing, Product

Management and Corporate Affairs

John Poole

Chief Actuary

23
INSURANCE PLANS

Protection Plans:

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.

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:

24
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.

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.

Stepping Stones™ (Par) Plan

25
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.

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.

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

26
by way of well managed investment funds. This policy also entitles you to make

partial withdrawals for various unplanned expenses in the future.

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:

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

27
choose to invest your premiums in one or more of these funds, basis your risk taking

ability.

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.

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.

Life Invest™ Plan

28
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.

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:

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

29
money for your retirement. It also provides you with an opportunity to take home a

regular retirement income (i.e. pension).

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.

Health Plans:

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).

LifeLine-MediCash™ Plus Plan

30
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.

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.

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.

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.

31
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

32
 Capital Builder

 Max Amsure

 Family Money Back

 Bonus Builder

 Business Builder

 Secure Returns builders

33
RESEARCH METHODOLOGY
Objective
Scope of study
Sampling methodology
Limitations

34
RESEARCH METHODOLOGY

TITLE:

To Study Potential of Life Insurance Industry in Agra.

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with studying the buying pattern

in the insurance industry with a special focus on Max New York life Insurance. The various

segments of the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels

etc will also studied.

OBJECTIVE

Main objective of the research is to have an analysis of life insurance industry in

Agra. To accomplish this objective it has been divided into five.

• To determine reasons behind opting for an insurance.

• To know the most preferred policy.

• To determine customers perception towards private insurance companies and

their expectation form private insurance companies.

• To determine the feedback on services provided by an insurance agent.

• To study the types of benefits provided by insurance services.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number of new

players have entered the market and are trying to gain market share in this rapidly improving

35
market. The study deals with Max New York Life in focus and the various segments that it

caters to. The study then goes on to evaluate and analyze the findings so as to present a clear

picture of trends in the Insurance sector.

SIGNIFICANCE TO THE INDUSTRY:

This is a limited study which takes into consideration the responses of 100 people. This data

can be explorated to take in the trends across the industry. The significance for the industry

lies in studying these trends that emerge from the study. It is a rapidly changing and evolving

sector. People are only beginning to wake up to its vast possibilities. A study like this can

attempt to guide the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER:

To facilitate and provide useful information for the study of the company and the insurance

industry and also provide recommendations for Max New York Life.

RESEARCH DESIGN

• NON-PROBABILITY

• EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of

information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews were conducted to

collect the customer’s perception and buying behavior, through this questionnaire.

SAMPLING METHODOLOGY

Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A

pilot study was done in order to know the accuracy of the Questionnaire. The final

36
Questionnaire was arrived only after certain important changes were done. Thus my

sampling came out to be judemental and convinent.

Sampling Unit:

The respondents who were asked to fill out questionnaires are the sampling units. These

comprise of employees of MNCs, Govt. Employees, Self Employed etc.

Sample size:

The sample size was restricted to only 100, which comprised of mainly peoples from different

regions of Agra due to time constraints.

Sampling Area:

The area of the research was Agra, India.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Agra and does not necessarily shows a pattern

applicable to all of Country.

2. Some respondents were reluctant to divulge personal information which can affect the

validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one segment can change very

quickly. The environmental changes are vital to be considered in order to assimilate the

findings.

37
 SURVEY
Graph Analysis
Data Interpretation

38
DATA ANALYSIS & INTERPRETATION

NUMBER OF PEOPLE HAVING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Yes 86 86%
No 14 14%
Total 100 100%

[Fig1]
NO
14%

YES
86%

INTERPRETATION

• Of the sample size of 100 surveyed respondents 86% of the respondents are

having Insurance policy.

• 14% of the respondents are either not having any Insurance policy at present or

their policy is already matured.

• And at present 100% of the respondents are with the view that Insurance is a tool

to protect your family.

TYPES OF INSURANCE POLICY RESPONDENTS HAVE

POLICY TYPE NO. OF SHARE (%)

RESPONDENTS
LIFE POLICY 75 75
NON LIFE POLICY 25 25

39
 BOTH 45 45

INTERPRETATION

 75% of the respondents have only Life Insurance Policy.

 while 45% of the respondents have both.

 25% of the respondents have only Non- life Policy.

[Some of the respondents opted for two or more than two items]

PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

NO.OF
COMPANY’S NAME SHARE (%)
RESPONDENT
L.I.C. 78 78%

40
 RELIANCE LIFE INSURANCE 3 3%

aICICI PRUDENTIAL 8 8%

SBI LIFE 6 6%

Max New York Life 5 5%

TOTAL 100 100

MNYL
[Fig3]
SBI 5%
ICICI 6%
8%
REL
3%

LIC
78%

INTERPRETATION

 78% of the people contacted prefer LIC policy to any other and therefore it is

ranked no.1 by that percent of respondents.

BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

41
 Cover Future Uncertainty 35 35%

Tax Deductions 45 45%

Future Investment 20 20%

TOTAL 100 100

[Fig4]
Future
Investment
25%

Cover Future
Tax Uncertainty
Deductions 55%
20%

INTERPRETATION

 55% of the respondents believe that covering future uncertainty is the biggest

benefit of an insurance policy.

 Whereas, 20% and 25% of them believe that the other benefits are Tax

deduction and future investments respectively.

FEATURES OF INSURANCE POLICY THAT ATTRACTED

RESPONDENTS

FEATURE NO.OF SHARE (%)

RESPONDENTS
Money Back Guarantee 15 15
Larger Risk Coverage 37 37
Easy Access to Agents 7 7
Low Premium 30 30

42
 Company’s Reputation 11 11
TOTAL 100 100

INTERPRETATION

 Majority of the respondent (37%) found larger risk coverage as the most attracted

feature of the all.

 Minimum respondents (7%) opted for easy access to agents.

43
PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

A saving tool 81 81%

A tax saving device 74 74%
A tool to protect your family 100 100%

INTERPRETATION

• 81% of the respondents have perception of Insurance being a saving tool.

• And 74% of the respondents have perception of Insurance being a tax saving

device.

• But 100% of the respondents are with the view that Insurance is a tool to protect

your family.

[Some of the respondents opted for two or more than two items]

PERSONS HAVING INSURANCE FOR

44
 Response No of respondents
self 40
spouse 28
children 21
parents 18
all 11

INTERPRETATION

Among that 42% people who having insurance, they have insurance 40% for self, 28%for

spouse ,21% for children and 18% for their parents and 11% for all family member.

REASONS BEHIND TAKING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Tax saving 80 50%
Saving / Investment 80 50.%
Family protection 100 100%

45
INTERPRETATION

• 80% of the Respondents opted for Insurance for tax saving benefits and

saving/investment both.

• But all of them, i.e. 100% of the respondents have opted for insurance for their

family protection.

[Some of the respondents opted for two or more than two items]

46
SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Satisfied 60 60%
Not satisfied 40 40%
Not Responded 0 0.0%
Total 100 100%

INTERPRETATION

• 60% of the respondents are more or less satisfied with their existing policy.

• 40% of the respondents are not satisfied with their existing policy.

• In this case all of those who have taken a policy have responded.

47
SATISFACTION OF +VE RESPONDENTS WITH RESPECT TO SERVICE AGENT

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Satisfied 45 45%
Not satisfied 55 55%
Not Responded 0 0.0%
Total 100 100%

INTERPRETATION

• 45% of the respondents are satisfied with their existing service agent.

• 55% of the respondents are not satisfied with their existing insurance agent.

• All of those who have taken a policy have responded.

48
NUMBER OF RESPONDENTS PAYING TAX

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Paying tax 100 100%
Not paying tax 0 0%
Total 100 100%

INTERPRETATION

• Of the sample size of 100 respondents, all the respondents are paying tax.

RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR

SECURING THEIR FUTURE

NO. OF SHARE (%)

49
 RESPONDENTS
Fixed Assets 75 33%

Bank deposits 11 5%
Jewellery 25 11%
Securities i.e. bonds, MFs 40. 17%
Shares 10 4%
Insurance 70 30%

INTERPRETATION

• 75% of the respondents are with the view that Fixed Assets is the best form of

investment for securing their future.

• 70% of the respondents are with the perception that Insurance is the best form of

investment for securing their future, which is 2nd highest and this shows that

insurance is an important key for securing your future.

[Some of the respondents opted for two or more than two items]

PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE

RESPONSE NO. OF RESPONDENTS SHARE (%)

After 25 years 29 29%
After 35 years 10 10%
After 45 years 0 0%
Anytime 61 61%

50
INTERPRETATION

• 29% of the respondents are with the view that insurance should be bought after

the age of 25 years.

• 10% of the respondents are with the view that insurance should be buyed after

the age of 35 years.

• Whereas, 61% of the respondents are with the view that buying of insurance do

not have any thing to do with age i.e. there is no age limitations. It can be

purchased any time according to the need.

51
PEOPLES OPINION ABOUT INDIAN INSURANCE COMPANIES

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Rigid plans 67 67%
Non user friendly 29 29%
Unsatisfactory services 26 26%
Non Aggressive 35 35%
Satisfactory 24 24%
Good 10 10%
Very good 0 0%

INTERPRETATION

• 67% of the respondents have the opinion that Indian Insurance Companies have

Rigid plans.

• 29.5% feel that Indian Insurance companies are Non-user friendly.

• 26.5% feel that services of Indian Insurance companies are Unsatisfactory.

• 35.75% of the respondents are with the view that Indian Insurance companies are

Non-aggressive.

• 24% of the respondents feel that products and services of Indian Insurance

companies is Satisfactory.

52
 • Whereas only 10.25% feel that it is Good enough.

• And according to the data, no single person has felt that it is very good.

[Some of the respondents opted for two or more than two items]

53
WHAT PEOPLE LOOK FOR IN AN INSURANCE COMPANY

RESPONSE NO. OF SHARE (%)

RESPONDENTS
A trusted name 82 82%
Friendly service & 71 71%

responsiveness
Good plans 81 81%
Accessibility 49 49%

INTERPRETATION

• 82% customers look for a Trusted name in a company for insurance.

• 81.5% customers look for a good plan in a company for insurance.

• Friendly service & responsiveness and Accessibility are also important factors

looked by customers in a company.

[Some of the respondents opted for two or more than two items]

54
PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER

AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Yes 43 43%
No 44 44%
Uncertain 13 13%
Total 100 100%

INTERPRETATION

• The interested customers i.e. 43% are ready to go for insurance even away from

a city if services and products are worthwhile, which again is a good prospect

(potential) for Max New york Life Insurance to take them on their favor.

55
PEOPLE PLANNING FOR NEW INVESTMENTS

RESPONSE NO. OF RESPONDENTS SHARE (%)

Planning 87 87%
Not planning 13 13%
Total 100 100%

INTERPRETATION

• Only 13% of the customers contacted are not planning for new investments

presently.

• Whereas, 87% of the customers are still planning for new investments this can be

a great potential for Max New York Life Insurance to take them on their favor.

56
 FINDINGS &
RECOMMENDATIONS

57
FINDINGS & RECOMMENDATIONS

1. As the people think that insurance is a tool to protect their family & a tax saving device.

They are aware of the fact & realizing its, importance. There is a large potential for insurance

in India.

2. The entrance of private players will increase the competition and it would be a tough task

to secure

a good position in market.

3. Since Max New York Life Insurance 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 and thereby forming a long and trusted

relationship.

4. As seen from the survey that at present 70% of the customer are having insurance policy

out of which 87.5% of the customer are planning for new investments. So it can be a good

potential for the company and they should make an attempt to trap these customers.

5. As 43% of the customers are even ready to go for insurance if a service provider away from

their city is providing it. But inturn they should provide good products and services. The

company should try to convince these customers and get them in its favor.

58
GROWTH POTENTIAL

At present life insurance penetration in India is quite low – 3% of GDP.

PHASE OF TRANSITION

• Life Insurance industry is under the phase of infancy after 50 years of

monopoly.

• Competition from within and other sectors of financial market.

• Needs environmental support till it reaches a comfort zone

59
CONCLUSION

Our exhaustive research in the field of Life Insurance threw up some interesting trends which

can be seen in the above analysis. A general impression that we gathered during Data

collection was the immense awareness and knowledge among people about various

companies and their insurance products. People are beginning to look beyond LIC for their

insurance needs and are willing to trust private players with their hard earned money.

People in general have been impressed by the marketing and advertising campaigns of

insurance companies. A high penetration of print, radio and Television Ad campaigns over the

years is beginning to have it’s impact now.

Another heartening trend was in terms of people viewing insurance as a tax saving and

investment instrument as much as a protective one. A very high number of respondents have

opted for insurance for such purposes and it shows how insurance companies have been

successful to attract public money in recent times.

The general satisfaction levels among public with regards to policy and agents still requires

improvement. But therein lies the opportunity for a relative player like Max New York Life.

LIC has never been known for prompt service or customer oriented methods and Max New

York Life can build on these factors.

60
BIBLIOGRAPHY

 WEBSITES REFERRED

 www.maxnewyorklife.com

 www.irdaindia.org

 www.thehindubusinessline.com

61
ANNEXURE

62
QUESTIONNAIRE

NAME:_________________________

ADDRESS:______________________

______________________________OCCUPATION:___________________

1. ARE YOU EMPLOYED?

YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANKTHEM)

a) LIC b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE d) ING VYSYA LIFE

63
 e) MAX NEW YORK LIFE INSURANCE f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

5. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN?

(RANK THEM)

a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS

c) FUTURE INVESTMENT d) ANY OTHER _________ (Specify)

6. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?

(RANK THEM)

a) LOW PREMIUM b) LARGER RISK COVERAGE

c) MONEY BACK GUARNTEE d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS f) ANY OTHER _________ (Specify)

7. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

64
 8. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL b) NOT SATISFIED

c) NOT RESPONDING

9. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL b) NOT SATISFIED

c) NOT RESPONDING

10. DO YOU PAY TAXES?

YES NO

11. WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM)

a) FIXED ASSETS b) BANK DEPOSITS

c) JEWELLERY d) SECURITIES, i.e. Bonds, MFs

e) SHARES f) INSURANCE

12. . WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS b) SECURITY

c) TAX BENIFITS

13. WHAT’S THE RIGHT AGE TO BUY INSURANCE?

65
 a) AFTER 25 Yrs b) AFTER 35 Yrs

c) AFTER 45 Yrs d) ANYTIME

14. HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES d) NON-AGGRESSIVE

e) SATISFACTORY f) GOOD

g) VERY GOOD

15. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs?

(RANK THEM)

a) A TRUSTED NAME b) FRIENDLY SERVICE & RESPONSIVENESS

c) GOOD PLANS d) ACCESSIBILITY

16. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY
OFFERS BETTER SERVICE & PRODUCTS?

a) YES b) NO c) UNCERTAIN

17. ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING

THANK YOU.

66
67