M a y 2 0 11

India is one of the

fastest growing HNI markets

Indias High Net Worth Individual (HNI) population grew by 50.9% in 2009 India presents a great opportunity and remains an important market for wealth management providers Indias growth in the number of HNIs is the second fastest in Asia Pacific Indias GDP grew by 8.2% in 2010 and is expected to grow by 8.5% in 2011
25% 21.2% 20.5%

Most big insurance companies in India are increasingly tapping the HNI segment and have done a total business of ` 3,000 crore through HNI sales in the last nine months
Share on New Business from policies with Ticket Size> ` 1 Lac
40% 35% 30% 25% 20% 15% 10% 5% 0% 38% 33% 28% 18% 8% 0% HDFC Reliance 1% Bajaj 1% MNYL 1% Birla 10% 1% Tata AIG 2% Kotak

Premium Policies

13% 4% ICICI Pru 2% SBI 5%

15% 9%

India is the second largest country in HNI population growth

16.0% 15.5%

HNWI Population Growth (%)

20% 15.4%

15%

14.1%

13.3%

12.9%

12.6%

12.2%

ess usin e B nity Hugpportu o

10%

5%

0% Singapore India Indonesia Russia United Arab Emirates South Korea South Africa Israel Czech Republic
Hong Kong

Source: 2009 World Wealth Report 2008 and Merrill Lynch Wealth Management India HNI Definition: People who have liquid assets of more than ` 40 lac

As this segment has its own way of spending and savings, we have developed a product Max New York Life Fast Track Plan, which is ideally suited to meet the needs of the HNI segment. Max New York Life Fast Track Plan ensures that your customers meet their financial needs in the shortest time so that they can live the lifestyle they want and deserve. have seen a trend of margin decline, though sales are as per expectations. In Financials, credit growth and NIMs have seen better-than-muted expectations. Asset quality also held up well. IT Services companies reported a mix set of numbers; demand environment has improved & managements are cautiously confident on growth outlook. Cement companies have reported better-than-expected numbers on better realisations.

Market View
After a good fiscal year end rally, investor sentiments dampened due to weaker-than-expected IP and higherthan-expected inflation numbers reported over the month. Additionally, rising global commodity prices and lower margins reported by companies in Q4FY2011 results also had an adverse impact on the performance of Indian equities. Surprisingly, despite these headwinds FII flows remained supportive over the month, while DIIs tuned net sellers.

Fixed Income
March inflation surprised sharply on the upside, at 9% oya (1.4% m/m,) significantly higher than expectations. Non-food manufacturing prices rose a further 1.3% m/m suggesting that inflationary pressures continue to mount sharply. Equally revealing is the fact that the increase in manufacturing prices was very broad-based, with almost every single subcategory showing a sharp increase over the previous month. The only good news in this month was that primary food inflation moderated further to 9.5% oya (-0.6% m/m) from 10.6% oya the previous month and levels of about 15% a few months ago. Liquidity remained comfortable during the month resulting into some relaxation in short-term yields. 10-year benchmark treasury yield increased by 15 bps to 8.13% over the month. Higher-than-expected inflation data for March dampened investor sentiments. Prashant Sharma Corporate Vice President, Investment
For internal circulation only

Equity
Indian equity market lost a marginal 1.4% over the month and underperformed the Emerging Markets index. Consumer Discretionary, Consumer Staples and Healthcare were relative outperformers, whereas Telecom and IT Services underperformed. FIIs remained net buyers of Indian equities over the month. FIIs bought net USD 1,618 million over April. Over 2011 so-far, FIIs have been the net buyers of USD 1,098 million. DIIs were net sellers and sold a marginal USD 57 million of Indian equities. Insurance companies sold USD 51 million, while Mutual Funds sold USD 6 million over the month. Indian companies are reporting Q4FY2011 earnings. A notable trend has been that of healthy volume growth margin pressure felt across sectors. In Industrial and Autos, we

Fund Watch

Benchmark Definitions: Synthetic Benchmark is the weighted average of indices representing different classes of investments For equity investments: S&P CNX 500 Index For fixed income: CRISIL Bond Index For government securities: I-Sec Gilt Index

Disclaimer: Past fund performance is not an indicator of future performance. Growth Super Fund, Growth Fund, Balanced Fund, Conservative Fund and Secure Fund are names of funds being offered by Max New York Life at present. They do not in any way indicate the quality of respective funds, their future prospects or returns.

Asset Allocation of our Funds as on 30 April 2011

Growth Super Fund (Minimum Equity Exposure: 70%)
0% 1% 12% 0% 17% 51%

Secure Fund (100% Debt Fund)

32% 87%

Controlled Fund (Traditional Fund) Growth Fund (Maximum Equity Exposure: 70%)
1% 27% 19% 34% 62% 0% 4%

53%

Our traditional fund comprises mainly fixed income securities and is valued on HTM (Held Till Maturity) basis.
Balanced Fund (Maximum Equity Exposure: 40%)
26% 21%

Legend

Government Securities
26%

Corporate Bonds Cash and Cash Equivalents

Equities

27%

Top Equity Holdings

Conservative Fund (Maximum Equity Exposure: 15%)

9% 13% 51% 27%

Reliance Industries Ltd Infosys Technologies Ltd ITC Ltd Larsen & Toubro Ltd Housing Development Finance Corp Bank

For internal circulation only

Whats In
Introducing Max New York Life

Fast
Return

Track PLaN
Max New York Life has launched Max New York Life Fast Track Plan, a life insurance plan ideal for High Net Worth Individuals. This new Unit-Linked Plan (ULIP) would provide protection to policyholders in the age group of 30-70 years. This product not only provides the customers with flexibility to choose premium, but also the choice of funds. Fast Track Plan lends an opportunity to policyholders to multiply their wealth for long-term by paying premium for a limited period only, supported by a balanced mix of attractive investment options. Key highlights of the plan and their benefits Plan feature Short pay terms Benefit to you Allows payment for short-term while accumulating for longer time horizon. You no longer need to commit premiums for long years Allows systematic investment into equity, which spreads out purchase price that helps in lowering it in volatile markets. This feature takes away the hassles of managing your investments on your own, and STP feature does it all for you automatically Investment options to suit wider range of risk profiles from conservative to aggressive Policyholder can choose the amount of cover as per need, from 1.25 times to 20 times of the premium Additional protection in case of disease, death/disability due to an accident at a lower cost
High Growth Secure Conservative Balanced Risk High Growth Super Low

The plan also offers an option called Systematic Transfer Plan, specially designed for policyholders who want to invest in equities, but want to do it systematically to take advantage of marked volatilities. Systematic Transfer Plan Under this option, which is available only to those who choose the annual payment mode, the net investable premium will be initially directed to the Secure Plus Fund (debt-oriented fund). Subsequently, on each month proportionate number of units will be transferred to the Growth Super Fund (equity-oriented fund). This staggered investment into an equity-oriented fund enables systematic investment into equities to spread out the purchase of units and helps take advantage of market volatilities. Keeping in mind the need of liquidity, the plan also offers partial withdrawals and rider benefits to enhance protection cover.

Systematic Transfer Plan

Charges
The premium allocation charge is 4% of Annual Premium throughout the payment term for five-year and 10-year payment options. The allocation charge for Single Pay option is 2%. Policy administration charges are ` 1,500 p.a for 5/10 year payment term and ` 900 p.a for Single Pay option. The policy administration charge increases by 5% every year from policy year 2.

Option of six investment funds Option to select the level of insurance cover Option of Dread Disease and Personal Accidental Benefit Rider

The minimum premium for this plan is ` 1 lac per annum and there is no limit on the maximum premium; the premiums can be paid in yearly, half yearly, quarterly or monthly modes.

Investment Options
MNYL Fast Track Plan provides the customers the flexibility to choose from six different funds or combinations thereof to suit all risk profiles as displayed.
For internal circulation only

Watch Out
Give and Get
A policyholder of age 35 pays a premium of ` 5 Lac for five years. He chooses an insurance cover of 10 times the annual premium. He opts for the Growth Super Fund. Maturity value at the end of 10 years: ` 4,428,776 (This value is at 10% growth rate scenario) IRR to the customer: 7.3%. This IRR is inclusive of all charges and is basis the net fund value at the end of the term at 10% growth rate scenario Insurance cover at any point during the policy term: ` 50 lac + fund value at time of death

Flexibility
Short Premium Payment Terms (Single Pay/ 5 Pay/10 Pay)

Growth

Make the most of market volatility with STP

12 partial withdrawals in a policy year and all are free of charge

Six well managed funds to suit your risk appetite

What more in the Max New York Life Fast Track Plan?
This product welcomes its customers to a world of exclusive privileges at the prestigious Gold Circle. With Max New York Life Fast Track Plan, your customers would be inducted in the exclusive Gold Circle Loyalty Programme to enjoy an array of exclusive privileges As a Gold Circle member, customers will always remain on top of MNYL priority list & enjoy differentiated welcome processes with all these bundled benefits

Flexibility to choose protection with DD & PAB Rider

Settlement option help you stay invested till you reach your goal

Option to choose SA up to 20 times of ATP

Lower FMC Charges

together, we promise to make you feel a little more special!

ClaimsDesk Update
Hospitalisation Benefits Product Fixed Benefits Model
Scenario 1
Life Assured (LA) was a 49 year old female, Medicash Plus Policy was issued in January 2009 and she opted for two units Hospitalised for five days in February 2011 for Hysterectomy, insured incurred ` 35,000 expenses towards hospitalization and surgery charges Claim is settled for ` 43,000 towards hospitalisation and surgical benefit. (Hysterectomy is 24 months exclusion, this insured is eligible for surgical benefit as the policy completed 24 months waiting period) At the claims stage, all the required medical records and claim form were provided, claim was paid within 30 days to the insured Insured has actually incurred ` 35,000 towards hospital expenses where as this product has reimbursed ` 43,000 to the insured

Scenario 2
Life Assured (LA) was a 49 year old female, Medicash Plus Policy was issued in January 2010 and she opted for two units Hospitalised for five days in February 2011 for Hysterectomy, Insured incurred ` 35,000 expenses towards hospitalisation and surgery charges Claim is settled for ` 8,000 towards hospitalisation benefit only. (Hysterectomy is 24 months exclusion and insureds policy has not yet completed waiting period, hence, not eligible for surgical benefit) At the claims stage, all the required medical records and claim form were provided, claim was paid (only hospital cash benefit) within 30 days to the insured Insured has actually incurred ` 35,000 only towards hospital expenses whereas this product has reimbursed ` 8,000 only to the insured

This health product is unit based fixed benefit policy and reimburses the eligible amount irrespective of the expenses incurred.

Ensure that:
You read and understand the product correctly and accurately to the best of your knowledge. Medicash/Medicash Plus Policy should not be compared with regular Mediclaim policy as Mediclaim reimburses all incurred expenses.
For feedback and comments, please write to us at

Insurance is the subject matter of solicitation

For internal circulation only

producthelp@maxnewyorklife.com