CHAPTER 1

INTRODUCTION TO INSURANCE INDUSTRIES

Insurance in its basic form is defined as A contract between two parties whereby one party
called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party
called insured a fixed amount of money on the happening of a certain event."
In simple terms it is a contract between the person who buys Insurance and an Insurance
company who sold the Policy. By entering into contract of life Insurance company agrees to pay
the Policy holder or his family members a predetermined sum of money in case of any
unfortunate event for a predetermined fixed sum payable which is in normal term called
Insurance Premiums.
Insurance is basically a protection against a financial loss which can arise on the happening of an
unexpected event. Insurance companies collect premiums to provide for this protection. Thus, in
life insurance by paying a very small sum of money a person can safeguard himself and his
family financially from an unfortunate event.
Life Insurance is desired to safeguard oneself and ones family against possible losses on account
of risks and perils. By taking life insurance a person can have a peace of mind and need not
worry about the financial consequences in case of any ultimately death.

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 TYPES OF LIFE INSURANCE:

Life insurance may be divided into two basic classes temporary and permanent or following
subclasses - term, universal, whole life and endowment life insurance.
Temporary (term): Term assurance: provides for life insurance coverage for a specified term of
years for a specified premium. The policy does not accumulate cash value. Term is generally
considered "pure" insurance, where the premium buys protection in the event of death and
nothing else. The three key factors to be considered in term insurance are: face amount
(protection or death benefit), premium to be paid (cost to the insured), and length of coverage
(term).Various insurance companies sell term insurance with many different combinations of
these three parameters. The face amount can remain constant or decline. The term can be for one
or more years. The premium can remain level or increase. A common type of term is called
annual renewable term. It is a one year policy but the insurance company guarantees it will issue
a policy of equal or lesser amount without regard to the insurability of the insured and with a
premium set for the insured's age at that time. Another common type of term insurance is
mortgage insurance, which is usually a level premium, declining face value policy. The face
amount is intended to equal the amount of the mortgage on the policy owners residence so the
mortgage will be paid if the insured dies.
A policy holder insures his life for a specified term. If he dies before that specified term is up, his
estate or named beneficiary receives a pay-out. If he does not die before the term is up, he
receives nothing. In the past these policies would almost always exclude suicide.

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However, after a number of court judgments against the industry, pay-outs do occur on death by
suicide (presumably except for in the unlikely case that it can be shown that the suicide was just
to benefit from the policy). Generally, if an insured person commits suicide within the first two
policy years, the insurer will return the premiums paid. However, a death benefit will usually be
paid if the suicide occurs after the two year period.
Permanent Life Insurance: Permanent life insurance is life insurance that remains in force (inline) until the policy matures (pays out), unless the owner fails to pay the premium when due (the
policy expires OR policies lapse). The policy cannot be cancelled by the insurer for any reason
except fraud in the application, and that cancellation must occur within a period of time defined
by law (usually two years).Permanent insurance builds a cash value that reduces the amount at
risk to the insurance company and thus the insurance expense over time. This means that a policy
with a million dollar face value can be relatively expensive to a 70 year old. The owner can
access the money in the cash value by withdrawing money, borrowing the cash value, or
surrendering the policy and receiving the surrender value.
The four basic types of permanent insurance are whole life, universal life, limited pay and
endowment.
Whole Life Coverage: Whole life insurance provides for a level premium, and a cash
value table included in the policy guaranteed by the company. The primary advantages of
whole life are guaranteed death benefits; guaranteed cash values, fixed and known annual
premiums, and mortality and expense charges will not reduce the cash value shown in the
policy.
The primary disadvantages of whole life are premium inflexibility, and the internal rate of return
in the policy may not be competitive with other savings alternatives.
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Riders are available that can allow one to increase the death benefit by paying additional
premium. The death benefit can also be increased through the use of policy dividends.
Dividends cannot be guaranteed and may be higher or lower than historical rates over time.
Premiums are much higher than term insurance in the short-term, but cumulative premiums
are roughly equal if policies are kept in force until average life expectancy.
Cash value can be accessed at any time through policy "loans". Since these loans decrease the
death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary
upon the death of the insured; the beneficiary receives the death benefit only. If the dividend
option: Paid up additions is elected, dividend cash values will purchase additional death benefit
which will increase the death benefit of the policy to the named beneficiary

Universal Life Coverage: Universal life insurance (UL) is a relatively new insurance
product intended to provide permanent insurance coverage with greater flexibility in
premium payment and the potential for a higher internal rate of return. There are several
types of universal life insurance policies which include "interest sensitive" (also known
as "traditional fixed universal life insurance"), variable universal life insurance, and
equity indexed universal life insurance. A universal life insurance policy includes a cash
account. Premiums increase the cash account. Interest is paid within the policy (credited)
on the account at a rate specified by the company.

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Mortality charges and administrative costs are then charged against (reduce) the cash account.
The surrender value of the policy is the amount remaining in the cash account less applicable
surrender charges, if any. With all life insurance, there are basically two functions that make it
work. There's a mortality function and a cash function. The mortality function would be the
classical notion of pooling risk where the premiums paid by everybody else would cover the
death benefit for the one or two who will die for a given period of time. The cash function
inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies
depending on state and company), then the policy matures and endows the face value of the
policy. Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to
age 95, then the mortality function alone will not be able to cover the cash function. So in
order to cover the cash function, a minimum rate of investment return on the premiums will be
required in the event that a policy matures. Universal life insurance addresses the perceived
disadvantages of whole life. Premiums are flexible. Depending on how interest is credited, the
internal rate of return can be higher because it moves with prevailing interest rates (interestsensitive) or the financial markets (Equity Indexed Universal Life and Variable Universal
Life).
Mortality costs and administrative charges are known. And cash value may be considered
more easily attainable because the owner can discontinue premiums if the cash value allows it.
And universal life has a more flexible death benefit because the owner can select one of two
death benefit options, Option A and Option B.
Option A pays the face amount at death as it's designed to have the cash value equal the death
benefit at maturity (usually at age 95 or 100). With each premium payment, the policy owner is
reducing the cost of insurance until the cash value reaches the face amount upon maturity.
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Option B pays the face amount plus the cash value, as it's designed to increase the net death
benefit as cash values accumulate. Option B offers the benefit of an increasing death benefit
every year that the policy stays in force. The drawback to option B is that because the cash value
is accumulated "on top of the death benefit, the cost of insurance never decreases as premium
payments are made. Thus, as the insured gets older, the policy owner is faced with an ever
increasing cost of insurance (it costs more money to provide the same initial face amount of
insurance as the insured gets older).

LimitedPay: Another type of permanent insurance is Limited-pay life insurance, in which

all the premiums are paid over a specified period after which no additional premiums are
due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and
paid-up at age 65.

Endowments: Endowments are policies in which the cash value built up inside the policy,
equals the death benefit (face amount) at a certain age. The age this commences is known
as the endowment age. Endowments are considerably more expensive (in terms of annual
premiums) than either whole life or universal life because the premium paying period is
shortened and the endowment date is earlier.
Whole Life Coverage: Whole life insurance provides for a level premium, and a cash
value table included in the policy guaranteed by the company. The primary advantages of
whole life are guaranteed death benefits; guaranteed cash values, fixed and known annual
premiums, and mortality and expense charges will not reduce the cash value shown in the

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policy. The primary disadvantages of whole life are premium inflexibility, and the internal
rate of return in the policy may not be competitive with other savings alternatives. Riders
are available that can allow one to increase the death benefit by paying additional premium.
The death benefit can also be increased through the use of policy dividends. Dividends
cannot be guaranteed and may be higher or lower than historical rates over time. Premiums
are much higher than term insurance in the short-term, but cumulative premiums are
roughly equal if policies are kept in force until average life expectancy. Cash value can be
accessed at any time through policy "loans". Since these loans decrease the death benefit if
not paid back, payback is optional. Cash values are not paid to the beneficiary upon the
death of the insured; the beneficiary receives the death benefit only. If the dividend option:
Paid up additions is elected, dividend cash values will purchase additional death benefit
which will increase the death benefit of the policy to the named beneficiary

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WHO NEEDS LIFE INSURANCE?

Life insurance is designed to protect your family and other people who may depend on for
financial support. If you dies and lose income, the people that are dependent on his/her financial
support will lose that income, so life insurance can help cover some or all of that loss depending
on the policy you choose.
But there are instances where life insurance can be beneficial even if one has no
dependents, such as desire to cover ones own funeral expenses. Here are some guidelines
to help one decide if life insurance is the right choice for them:

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 Children: Children do not need life insurance. Yes, there have been cases where life
insurance for one's child has been a blessing, but in the majority of cases, children do not
need life insurance since no one depends on income from them.

Beginning Families: Life insurance should be purchased if one is considering starting a

family. Ones rates will be cheaper now than when one gets older and future children will
be depending on his/her income.

Established Families: If one has a family that depends on him/her, they need life
insurance now! This does not include only the spouse or partner working outside the
home. Life insurance also needs to be considered for the person working in the home.
The costs of replacing someone to do domestic chores, home budgeting and childcare can
cause significant financial problems for the surviving family.

Young Single Adults: The reason a single adult would typically need life insurance
would be to pay for their own funeral costs or if they help support an elderly parent or
other person they may care for financially. Otherwise, if one has other sources of money
for a funeral and has no other persons that depend on their income then life insurance
would not be a necessity.

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 Non-Child working couples: Both persons in this situation would need to decide if they
would want life insurance. If both persons are bringing in an income that they feel is
comfortable for living on alone if their partner should pass away, then life insurance
would not be necessary except if they wanted to cover their funeral costs. But, maybe in
some instances one working spouse contributes more to the income or would want to
leave their significant other in a better financial position, then as long as purchasing a life
insurance policy would not be a financial burden, it could be an option. For a low cost
life insurance option look into Term Life Insurance.

Elderly: As long as one does not have people who are depending on their income for
support, life insurance at this stage in life would not be necessary, unless again, one does
not have any other means to pay his funeral expenses. But, be aware that purchasing a life
insurance policy at this age can be very expensive. Before doing so, first talk to a
financial advisor or accountant about looking into other saving options to pay for owns
funeral costs before considering life insurance.

BENEFITS OF TAKING INSURANCE:

Under section 80c of Income Tax Act, a portion of premium paid for life insurance a policy
is allowed as deduction from tax liability. Similarly, exemption is available for health
insurance policy premiums.

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 An insurance scheme encourages thrift among individuals. It inculcates the habit of saving
compulsorily, unlike other saving instruments, wherein the saved money can be easily
withdrawn.

The beneficiaries to an insurance claim amount are protected from the claims amount are
protected from the claims of creditors by affecting a valid assignment.

For a policy taken under the MWP act 1874 (Married womens Property Act), a trust is
carried for wife and children as beneficiaries.

Life policies are accepted as a security for a loan-they can also be surrendered for meeting
unexpected emergencies.

Based on the concept of sharing of losses, the society will benefit as catastrophic losses are
spread globally.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE INSURANCE BUSINESS

IN INDIA ARE:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started
functioning.

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1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its
business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the central
government and nationalised. LIC formed by an Act of Parliament, i.e. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India.

ROLE OF LIFE INSURANCE IN ECONOMIC DEVELOPMENT:

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 For economic development, investments are necessary. Investments are made out of
savings. A life insurance company is a major instrument for the mobilization of savings of
people, particularly from the middle and lower income groups. These savings are
channelled into investment for economic growth. The insurance Act has strict provisions to
ensure that insurance funds are invested in safe avenues, like government bonds,
companies with record of profits and so on.

As on 31.3.2006, the total investments of the LIC exceeded Rs. 5, 20,000 crores, of which
nearly Rs. 3, 00,000 crores were directly invested in government (birth state and centre)
related securities, nearly Rs. 16,000 crores in the State Electricity Boards, nearly Rs.
22,000 crores in hosing loans, Rs. 19,000 crores in the power generation (private) sector
and Rs.10,000 crores in water supply and sewerage systems. Other investments included
road transport, setting up of industrial estates and directly financing industry. Investments
in the corporate sector (shares, debentures and term loans) exceeded Rs. 30,000 crores.
These directly affect the lives of the people and their economic well-being.
The L.I.C is not an exception. All good life insurance companies have huge funds,
accumulated through the payments of small amounts of premium of individuals.

These funds are invested in ways that contribute substantiality for the economic
development of the countries in which they do. But even their investments in the various
sectors and contributing directly and indirectly to the countrys economic development,
would be of similar proportions.

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 A Life insurance company funds are collected by way of premiums. Every premium
represents a risk that is covered by that premium. The funds are collected and held in trust
for the benefit of the policyholders.
The management of life insurance companies are required o keep this aspect in mind and
make all its decision in ways that benefit the community. This applies also its investment.
That is why successful insurance companies would not be found investing in speculative
ventures. Their investment, as in the case of the L.I.C, benefits the society at large.

Apart from investments, business and trade benefit through insurance without insurance,
trade and commerce will find it difficult to face the impact of major perils like fire,
earthquakes, and floods, etc. Financiers, like banks, would collapse if the factory,
financed by it, is reduced to ashes by a terrible fire. Insurers cover also the loss to the
financiers, if their debtors default.

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CHAPTER 2

INSURANCE ACT, 1938.

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 The insurance Act 1938, which came into effect from 1 st July 1939, and was amended in
1950 and later in 1999, is the principal enactment relating to the business of insurance in
India. The Act contains provisions regarding licensing of agents and their remuneration,
prohibition of rebates, and protection of policys holder interests. It also has provisions
placing limits on the expenses of the insurers, use of funds ad patterns of investments,
maintaining solvency levels, and the constitutions of Insurance associations and Insurance
councils and the Tariffs Advisory Committee for general use.

Till the constitutions of the IRDA by the IRDA Act in 1999, the IRDA has replaced the
controller of insurance.

THE INSURANCE ACT VESTS THE IRDA WITH THE POWERS TO:

Register insurance companies and also cancel their registration.

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Monitor and certify the soundness of the terms of life insurance business.

Make regulations relating to the conduct of the business of insurance. Appoint

additional directors.

Take over the management of an insurer and appoint administrators.

Adjudicate on disputes between insurers and intermediaries or between

intermediaries.

Decide on disputes relating to the settlements of claims of amounts not exceeding

Rs.2000.By the end of December 2006, the IRDA had issued more than 25
regulations and also had issued several guidelines to the insurers on a variety of
matters.

Insurance Business As A Career

Administrative Officer (AO) and Assistant Administrative Officer (AAO): These 1st
class officer group in LIC and GIC begin their job with probation-cum-training period for
6 months where the candidate is placed anywhere in the country. AAOs can choose any
of the areas from Administration, Development and Accounts. Administration AAOs
handle policy making, policy claims up to certain limit, checking clauses and details,
filing official returns and statements to higher regional offices etc. The Development
AAOs deal with marketing and procurement of business, meeting prospective clients,
promoting the policies and getting contracts. The Accounts AAOs manage the funds

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including incomes and expenses of the corporation. AAO's can be promoted to AO's after
3 years of working experience.
Development Officer: They are the II class officer group who are in charge of the
development of the insurance policies. The work profile of the development officer
includes recruitment of agents, training them for procurement of new business and
servicing of the existing policies.
Insurance / Composite Agents: Insurance agents help individuals, families and
businesses select insurance policies that provide the best protection for their lives, health,
and property. They are the people who have taken up an agency from the insurance
company to sell their policy on a commission basis. They work with the development
officer in the insurance Company and the credit for the policy of the insurance agents
goes to the development officers within the organization. Insurance agents can also serve
as financial consultants, who will offer a complete range of insurance solutions. Smart
and efficient insurance agents working hard can become a development officer over a
period of time.
Insurance Surveyors: Surveyors are independent professionals who are hired by the
insurance companies to work as consultants. Their main task is to assess the actual loss
and avoid false claims filed by the insured. Their work involves a lot of fieldwork,
communications, traveling, PR etc. A surveyor with a background in mechanical
engineering assesses industrial accidents. Here the surveyor would investigate, evaluate,
assess, adjust and determine the liability, negotiate and then finally submit a report to the
insurance company.

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 Actuaries: This is the most important position in the insurance business which deals with
a wide range of financial problems related with insurance investments, financial planning
and management. They apply mathematical and statistical methods to evaluate the risk
for their companies to be used for strategic management decisions and determine a
premium rate, studies mortality trends, constructs mortality tables etc and areas related to
benefits and investment.
Insurance Underwriters: Underwriters assess the risk in the business and takes care of
risk management. It is the underwriter who reviews the insurance applications and
decides whether they should be accepted or rejected. They explain policies and quotes
rates to medical personnel, other insurance companies or field representatives. Candidates
with medical or life science background are preferred for this job.
Investment Professionals: The funds collected from the investors have to be deployed in
various investment options for maximizing the returns. For this investment professionals
are required and this is a promising field for those with a degree in finance.

LIFE ISURANCE AGENCY BUSINESS AS A PROFESSION.

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 The insurance agent is bound by the terms of appointment of the insurer and is
expected to procure business for the insurer. It is not a job that he has to do at fixed
hours, in prescribed ways and under close supervision. Once licensed and appointed,
he is an independent professional. He is the master of his time. He is not prevented
from perusing any other interest or vocation.

Many agents see the agency as a means to supplement their earnings. They may
spend only part of the time on insurance, being busy on other work the rest of time.
Some agents however, try to study and understand the business in great details and to
improve their skills. They try to become the best in the profession. They would be
recognized as experts in the fields. There are many agents, who started as part-time
and then became whole-time agents, leaving their other secure jobs.

To most people, life insurance is just one of the many avenues for financial outlays.
When an agent approaches a prospect with the proposal of life insurance, the chances
are that the prospect will not know much about the benefits under various plans. He
may be vaguely familiar with the alternatives available, but is unlikely to be sure of
the details of all of them. He would need expert advice. If he sees the life insurance
agent as one who is keen to divert his money to life insurance to the exclusion of other
alternatives, then that agents intentions and expertise would be suspect. On the
contrary, if he sees the agent as one who knows about the alternatives and who is

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willing to take note of the needs of the prospects, then that agent would have a better
chance of persuading the prospect one way or the other. In other words, a little life,
while dealing with the prospect, should be thinking of its interest and requirement and
the best financial arrangement that would be appropriate in it situation.

To be able to advise the prospect on the best financial arrangements appropriate to his
situation, the agent needs to be with familiar with the alternatives available in the
market. He is also expected to know in full the benefits and limitations of the various
plan being offered by the insurer.

A good agent is a good financier, taking into account not merely the plans offered
by the insurers-his own as well as by the competition- but by the innumerable schemes on
offer in the market from other financial institutions. The needs study on ones own. It also
needs conviction that life insurance policies do not meet all the needs of all the people.
Other instruments have their own advantages. The advantage may be in terms of tax
benefits, ease of withdrawals, safety, appreciation, yield or return. No instruments will be
better on all accounts. Therefore, making comparisons and saying one is better than the
other, may often be inappropriate.

As an agent of the insurers, the life insurance agent is expected to obtain life
insurance business and contribute to the revenues of the insurer. He is also depended upon
to bring in business that would be profitable, to report attempts to commit any fraud, to

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report on relevant features that affect the risk of the subject of insurance. He is in with the
person to be insured. Having met him at his place of work of residence and observed his
life style and habits, he would be aware of the nature and characteristics of the risk, beyond
what is contained in the proposal form. He is therefore, called the primary underwriter.

As an agent of the prospects, he is expected to look after the interests of the

prospect. Even people, who are generally in financial matters like Chartered Accountants,
may not be aware of the implications of the insurance, in relation to terms and conditions,
warranties, exclusion, tax provisions, rights of the parties, etc. Agents also have the dual
responsibility of being true to the interest of both the parties in the transaction. He is
obliged to reveal to the prospect all the important terms and conditions of the policy, even
if they are restrictive and unpleasant

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CHAPTER 3
PROFILE OF THE COMPANY
New

York

Life

Insurance

Company (NYLIC)

is

the

largest mutual life-

insurance company in the United States, and one of the largest life insurers in the world, ranking
#80 on the 2015 Fortune 500 list, with about $512 billion in total assets under management, and
more than $19 billion in surplus and AVR. In 2007, NYLIC achieved the best possible ratings by
the four independent rating companies (Standard & Poor's, AM Best, Moody's and Fitch). Other
New York Life affiliates provide an array of securities products and services, as well as
institutional and retail mutual funds.
Max New York Life is a joint venture between Max India Ltd., one of Indias leading multibusiness corporations and New York Life, a Fortune 100 company. Max New York Life
Insurance, incorporated in 2000, is one of Indias leading private life insurance companies. The
company offers both individual and group life insurance solutions. It has established a wide
distribution network across India. Through its wide network of highly competent life insurance
agent advisors and flexible product solutions, Max New York life Insurance is creating a
partnership for life with its customers in India.

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ABOUT MAX INDIA:

Max India is a multi-business corporate, driven by the spirit of Enterprise, focused on People and
Service oriented businesses of Life Insurance (Max New York Life Insurance), Healthcare (Max
Healthcare), and Clinical Research (Max Newman Medical International). Max Indias other
businesses are Speciality packaging products (Max Speciality Products) and Healthcare Staffing
(Max Health Staff). Max India Limited is listed on National Stock Exchange of India and the
Bombay Stock Exchange. The companys vision is to be one of Indias most admired corporate
for service excellence. Towards this end, it has established niche businesses that are today
recognised as being at the fore front of service excellence, in each of the industry sectors where it
operates.
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Keeping in mind the core interests in the Life Insurance and Healthcare space, and its business
advantage due to significant presence in these areas, Max India is set to enter the Health
Insurance business through Max Bupa Health Insurance Ltd, its new Joint Venture with Bupa
Finance Plc UK, part of the Bupa Group, UK, a broad-based international health and care group.
For the financial year 2007-08, the Max India Group reported revenues of Rs. 3,611 Crore (US$
893 Mn), registering a growth of 81% over the previous year. The Group had a treasury corpus of
Rs. 1,261 Crore (US$ 316 Million) with total investments of Rs. 4,840 Crore (US$ 1.2 Billion)
as on March 31, 2008.

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About New York Life:

New York Life International, LLC, the international arm of New York Life Insurance
Company, offers insurance products through its subsidiaries and affiliates in Hong Kong, China,
Taiwan, South Korea, India, Argentina, Mexico, and Thailand.
New York Life Insurance Company, 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. New York Life has the highest possible financial strength ratings from all four of the
major credit rating agencies.
Headquartered in New York City, New York Lifes family of companies offers life insurance,
retirement income, investments and long-term care insurance. New York Life Investment
Management LLC provides institutional asset management, retirement plan and trust services.

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Other New York Life affiliates provide an array of securities products and services, as well as
institutional and retail mutual fund

THE COMPANY OBJECTIVES:

The company believes in building relationships with the people they serve so that their
customers enjoy the highest quality of service in life insurance. Towards this the company spells
out its defining qualities as under:

They are experts in life insurance: That's all they do.

New York Life has over 156 years of experience in the life insurance business. It is a
Fortune 100 company that has been trusted by millions worldwide, across generations.

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Their existence is rooted in their commitment to financial strength, integrity and

responsibility. They have doubled their capitalization requirement to Rs. 200 crore from the
initial Rs. 100 crore that has been stipulated by the Insurance Regulatory and Development
Authority (IRDA). Their investments are confined only to debt instruments and they meet
both Indian and US reporting norms. Max New York Life also deposits 1% of the premium
income with the RBI, towards Contingency Funds.

They like to believe they have the best Agent Advisors in the business. Backed by the best
training and infrastructure, their Agent Advisors will spend time evaluating client needs
rather than just selling. They are professionals who will thoroughly understand client needs
before recommending the policy tailored to fit their unique needs.

They endeavour to offer the best products with Flexibility as their cornerstone, so the
customer can buy just what he needs. With their various Products and Riders & Options,
the customer has more than 200 product combinations to choose from.

They would like Transparency to be the bedrock of the way they do business.
This is why they customize a Personal Insurance Plan, which gives the customer a broad
overview of the details of his policy along with a year-on-year summary, even before he
buys. And with the free look option the client even has the unconditional right to return the
policy, if he so wishes, within 10 days of receiving it.

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They offer multiple bonus options, which includes options such as annual bonus, bonus
accumulated and paid on maturity, bonus used to offset premiums, bonus utilized to buy
Paid up additions and bonus used to buy one-year term insurance. So the customer can
decide how he wants to use his bonus payments.

They take their social responsibility seriously. Every policy sold by them benefits a needy
child at SOS Children's Villages of India. They also provide life insurance to the rural and
socially underprivileged.

They have a national presence with a network in the 9 cities of Delhi, Mumbai, Kolkata,
Chennai, Bangalore, Hyderabad, Ahmedabad, Pune and Chandigarh.

VISION

To become the 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

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Become principal of choice for agents

KNOWLEDGE
Knowledge leads to expertise; and our expertise is in helping people protect them.
Perfectly combining global expertise with local knowledge, we are India's life insurance
specialists. 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 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.
ACHIEVEMENTS

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 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.
Max New York Life is the first life insurance company in India to be awarded the IS0
9001:2000 certifications.
They were among top five most respected private life insurance companies in India
according to a 2004 Business World survey.
They have truly built an enviable sales force. With 201 agents becoming members of the
MDRT in 2005, Max New York Life has moved up in the Top 50 MDRT global list.

Growth of Max New York Life

Max New York Life (MNYL) is looking at maintaining a double digit growth rate both in terms
of premium collection and number of policy holders this year, despite volatile market conditions
with more tailor made products.

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Speaking at the launch of the product, Debashis Sarkar, senior director & chief marketing officer,
Max New York Life said, We want to outperform the industry growth rate, maintain double
digit growth rate both in terms of number of policy holders and premium collection and gain
increased market share this year, despite the meltdown with increased focus on customer service
and newer products.
The company collected Rs 3,654 crores as total premium collection in January-December last
year, almost a 60 per cent rise compared to the previous year.
While insurance industry witnessed a negative eight per cent growth, MNYL achieved a 41 per
cent growth in first year premium collection with a single premium adjusted at 10 per cent and in
terms of number policy holders MNYL grew by 59 per cent, while the industry grew by only one
per cent, informed Sarkar.
Kolkata-based, The Peerless General Finance & Investment Company Limited will be the sole
corporate agent and third party distributor of this product across India, for now. The company
plans to rope in Yes Bank and other corporate agents later on. The product was specially
designed for partnership distribution, and right now our first priority was to use the network of
third party distribution channels, said Sarkar.

SWOT ANALYSIS OF MAX NEW YORK LIFE INSURANCE

STRENGTH

Strong corporate governance model

Quality product
Adaptability to changes
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Strong brand name

Large network
Leading private corporation
Diversification of funds
Efficient management

WEAKNESS

Low advertisement
Focus only in urban market

OPPORTUNITY

Fast growing economy

Scope for opening new branches in any state in India
Increase in population = Increase in polices
Catering to the untapped rural & semi urban areas in India

THREATS

Cut throat competition

New arrival of products every day
Consumer do not invest easily
Market uncertainty (recession , inflation , changes in government polices )

Today, agencies are working in an increasingly complex environment. But by capitalizing

on their strengths, addressing their weaknesses, and seizing opportunities, agencies can secure a
stronger, brighter future.

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CHAPTER 4

FINDINGS & CONCLUSION

FINDINGS FROM THE STUDY

IT is very clear that Agents are the life and blood of life insurance agency business. They play a
very important role for getting business to the organization. Agents who are working in the cutthroat competition obviously expect some kind of security, reorganization, and reward for

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working hard. They expect not only monetary rewards/incentives such as commission, bonus but
also expect non-monetary rewards such as reorganization which gives them sense of belonging
and job satisfaction. It is the duty of these insurers (organization) to retain these assets in the
organization by placing them in the position which best suits them. The organizations goals
should be in line with the employees (agents) goal for both the organization and agents to
prosper.

CONCLUSION
Life insurance industry in India has witnessed a sea change ever since it was opened up to
private players in 1999. The liberalization transformed the industrys outlook towards the huge
Indian market. For economic development, investments are very necessary. Investments are
made out of savings. A life insurance company is a major instrument for the mobilization of
savings of people. The savings are channeled into investments for the economic growth. Life
insurance has contributed 520,000 crores as on 31.3.2008 out of which nearly 300,000 crores
were directly invested in government related securities. Life insurance premiums form 1.8% of
GDP.
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In India only 20% of the population is insured rest 80% is still left uninsured. So the insurance
agents have to tap the untapped rural sector. Since agents are those people who get business to
the organization.

BIBLIOGRAPHY

www.webindia.com
www.maxnewyorklife.com
www.maxindia.com
www.newyorklife.com
www.insure2bsecure.com
www.moneycontrolmaster.blogspot.com
www.scribd.com
www.irda.com

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