CHAPTER-1 INTROUCTION

INTRODUCTION
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. We were among top five most respected private life insurance companies in India according to a 2004 Business World survey. 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 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 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.

INTRODUCTION TO INSURANCE
Insurance is related to the protection of the economic value of the asset. Every asset has a value. The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output, some other output, some of his needs would be met. In the case of the factor or a cow, the production is sold and income generated. In the case of a motorcar, it provides comfort and convenience in transportation. There is no direct income. There is normally expected life time for the asset during which time it is expected to perform to owner, aware of this, can so manage his affairs that by the end of that life time, a however, if the asset get lost earlier, being destroyed or made non those deriving benefits therefore suffer. Insurance is a mechanism that helps to reduce such adverse consequence. Example of Insurance 1000 people-age 50 & healthy Morality @ 10/year Value of the loss suffered Rs. 20000/Family Total Loss Rs. 200000/Individual contribution Rs. 200/Total Common fund 200*1000=200000/Thus the risk for 10 people is shared by 1000

What is Insurance Insurance is a financial product where you pay a premium or series of premiums. In return, if a particular event happens you will be compensated financially. Except for life assurance, most insurance is annually renewable. This means that the insurer can change both the premium and the benefits each time, or may even decide to no longer offer insurance to you. Insurers call this general insurance to differentiate it from life assurance. It is natural to think of insurance of physical assets such as motor car insurance but often we forget that creator of all these assets is human being whose efforts have gone a long way in building up the assets. In that sense, human life is a unique income generating assets. Unlike the physical assets, which decrease in value with the passage of time, the individual becomes more experienced and more matured as he advanced in age. This raise his earning capacity and the purpose of life insurance is to protect the income of individual and provide financial security to his family, which is dependent on his income in the event of his premature death. The individual himself also needs financial security for the old age or on his becoming permanently disabled when his income will stop. Insurance also has an element of saving in certain cases. Insurance is related to the protection of the economic value of the asset. Every asset has value. The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output, some of his needs would be met. In the case of the factor or a cow, the production is sold and income generated. There is no direct income. There is normally expected life time for the asset during which time it is expected to perform. The owner aware of this, can so manage his affairs that by the end of that life time, a substitute is made available to ensure that the value, or income is not lost, however, if the asset get lost earlier, being unfortunate events, the owner and those deriving benefits suffer insurance is a mechanism that helps to reduce such adverse consequence.

THE HISTORY OF INSURANCE

The roots of insurance might be traced to Babylonia, where traders were encouraged to assume the risks of the caravan trade through loans that were repaid (with interest) only after the goods had arrived safely-a practice resembling bottomry and given legal force in the Code of Hammurabi (c. 2100 B. C.). The Phoenicians and the Greeks applied a similar system to their seaborne commerce. The romans used burial clubs as a form of life insurance, providing funeral expenses for members and later payments to the survivors. With the growth of towns and trade in Europe, the medieval guilds undertook to protect their members from loss by fire and shipwreck, to ransom them from captivity by pirates, and to provide decent burial and support in sickness and poverty. By the middle of the 14th cent., as evidenced by the earliest known insurance contract (Genoa, 1347), marine insurance was practically universal among the maritime nations of Europe. In London, Lloyds Coffee House (1688) was a place where merchants, shipowners, and underwriters met to transact business. By the end of the 18 th Cent. Lloyds hand progressed into one of the first modern insurance companies. In 1963 the astronomer Edmond Halley constructed the first morality table, based on the statistical laws of mortality and compound interest. The table, corrected (1756) by Joseph Dodson, made it possible to scale the premium rate to age; previously the rate had been the same fo all ages. Insurance developed rapidly with the growth of British commerce in the 17th and 18th Cent. Prior to the formation of corporations devoted solely to the business of writing insurance, policies were signed by a number of individuals, each of whom wrote his name and the amount of risk he was assuming underneath the insurance proposal, hence the term underwriter. The first stock companies to engage in insurance were chartered in English in 1720, and in 1735, the first insurance company in the American colonies was founded at Charleston, S.C. Fire insurance corporations were formed in New York City (1787) and in philadephia (1794). The Presbyterian Synod of Philadelphia sponsored (1759) the first life insurance corporation in America, for the benefit of Presbyterian ministers and their dependents. After 1840, with the decline of religious prejudice against the practice, life insurance entered a boom period. In the 1830s the practice of classifying risks was begun. The New York fire of 1835 called attention to the need for adequate reserves to meet unexpectedly large losses; Massachusetts was the first state to require companies by law (1837) to maintain such reserves. The great Chicago fire (1871) emphasized the costly nature of fires in structurally dense modern cities. Reinsurance, whereby losses are distributed among many companies, was devised to meet such situations and is now common in other lines of insurance. The workmens compensation

Act of 1897 in Britain required employers to insure their employees against industrial accidents. Public liability insurance, fostered by legislation, made its appearance in the 1880s; it attained major importance with advent of the automobile. In the 19th cent. Many friendly or benefit societies were founded to insure the life and health of their members, and many fraternal orders were created to provide low-cost, members-only insurance. Fraternal orders continue to provide insurance coverage, as do most labor organizations. Many employers sponsor group insurance policies for their employees; such policies generally include not only life insurance, but sickness and accident benefits and old age pensions, and the employees usually contribute a certain percentage of the premium. Since the late 19th cent. there has been a growing tendency for the state to enter the field of insurance, especially with respect to safeguarding workers against sickness and disability, either temporary or permanent, destitute old age, and unemployment. The U.S. government has also experimented with various types of crop insurance, a landmark in this field being the federal crop insurance act of 1938. In world war II the government provided life insurance for members of the armed forces; since then it has provided other forms of insurance such as pensions for veterans and for government employees. After 1944 the supervision and regulation of insurance companies, previously an exclusive responsibility of the states, became subject to regulation by congress under the interstate commerce clause of the US constitution. Until the 1950s, most insurance companies in the United States were restricted to providing only one type of insurance, but then legislation was passed to permit fire and casualty companies to underwrite several classes of insurance. Many firms have since expanded, many mergers have occurred, and multiple-line companies now dominate the field. In 1999, congress repealed banking laws that had prohibited commercial banks from being in the insurance business; this measure was expected to result in expansion by major banks into the insurance arena. In recent years insurance premiums (particularly for liability policies) have increased rapidly, leaving unprecedented numbers of Americans uniusured. Many blame the insurance conglomerates, contending that US Citizens are paying for bad risks made by the companies. Insurance companies place the burden of guilt on law firms and their clients, who they say have brought unreasonably large civil suits to court, a trend that has become so common in the United States that legislation has been proposed to limit lawsuit awards. Catastrophic earthquakes, hurricanes, and wildfires in late 1980s and the 90s have also strained many insurance companys reserves.

Classification of Insurance
Uncertainty in life is certain, filled with trials and tribulations in every aspect of life. Prediction or estimation of what the future has in store for him is not possible. Insurance is expected to aid in partially overcoming these vagaries of life. Insurance can never replace or repair a loss. But the monetary value offered by insurance helps in adjusting to the new circumstances. Despite offering innumerable options and immense scope, insurance can be classified into four main categories. Insurance of Person Insurance of Property Insurance of Interest Insurance of Liability

Insurance of Person: The risk associated with human life and health, resulting from unplanned contingencies could be covered under insurance up to the limit specified. In the event of his death, his dependants will be reimbursed to the full amount that he was insured for. Or if the insured person meets with an accident or suffers from an illness that cripples him forever, he will be compensated with the complete sum assured anyway since he may not be able to lead a normal life again. In case, the accident is not that severe, he should be able to recover after medical treatment and rehabilitation. If he has opted for medical cover, then his medical expenses, treatment and medication will be paid for by his insurance policy. Insurance of Property: Every individual would be an owner of tangible assets in the form of land, Estate, vehicles, share holdings or plain paper money. The tangible assets are associated with risk of fire, theft, robbery etc. The life times achievements marked by these assets could be washes off without a trace within fraction of a second. But if a person judiciously invests in insurance for his property prior to any unexpected contingency then he will be suitably compensated for his loss as soon as the extent of damage is ascertained. Insurance of Interest: Every individual is bound to discharge certain duties, maintain a certain standard of conduct. But then, it is an intrinsic part of human nature to err. No one is infallible and no one will ever be. This trait may lead us to commission of occasional error or omission, leading to a loss for our clients or customers. As a result, we might have to pay them damages or compensation out of our own personal resources. But, if our chosen

profession qualifies for insurance of interest, then our insurance policy will more than suffice in arranging for the funds and court formalities that might ensue in the aftermath of legal libel. Insurance of Liability: Every person has to regulate his actions and behaviour so as not to cause injury or damage to other people and their property. Everyone is personally responsible and liable for his actions. If due to lack of control over his actions or prejudiced behaviour, a person incurs any liability then he has to provide compensation out of his personal resources. Liabilities: legal, civil or criminal can have severe repercussions on social standing and prestige besides the financial status. By investing in liability insurance, an individual can ward off any liabilities he might incur due to his actions and behaviour. Besides, the premiums payable on liability insurance are fairly minimal when compared to the damages that have to be compensated in the long run. What is life Insurance Life insurance is a form insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insureds named beneficiary so long as the insureds premiums are current. People take out life insurance policies for a number of reasons. Such insurance provides security to family members upon the loss of a loved one. For instance, if the primary wage earner dies in his or her prime, the death benefit received from a life insurance policy will assist the surviving family members in overcoming the burden of the tragic loss. Life insurance can be purchased by individuals, but is also offered as a perk by many employers. Often times, large employers and governments employers offer group life insurance at no cost to the employee. Should the employee wish to obtain additional life insurance from the employers insurance company, they can usually do so at reduced rates. The cost of life insurance varies depending on such factors as the insureds age, health, and occupation. For example, the premium for a 25-year-old, male, nonsmoker in excellent health will be far less expensive than a similar policy for a 65-yearold male smoker. Similarly, a sky dive instructor would have to pay much higher premiums for life insurance than would a librarian. Life insurance is available in a number in a number of different forms to fit the tastes of the proposed insured. Some of the typical forms of life insurance policies

include: whole life, variable life, and term life. Term life insurance policies begin with low premiums during the initial states of the policy and these premiums increase steadily as the insured grows older. There is no cash build-up in a term policy and, accordingly, the death benefit will not increase. With whole life and variable life insurance, a portion of each premium pays for the insurance and the remainder serves as a tax-free investment. A whole life policy sets a premium at the beginning of the policy and that premium does not change over the life of the policy. This form of insurance allows for a cash build-up during the insureds life. This each build-up can be used during the course of the policy or it will simply server to increase the death benefit in the end. In a variable life product, the premium remains the same over the life of the policy, and there should be a cash build-up as long as the various mutual funds selected by the insured perform well.

Some of the important milestones in the life insurance business in India are:
1850: 1870: 1912: 1928: 1938: 1956: Non Life Insurance debuts with triton insurance company. Bombay mutual life assurance society is the first Indian owned life insurer. The Indian Life Assurance Companies Act enacted as the first statue to regulate the life insurance business. The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of parliament, VIZ. LIC Act, with a capital contribution of Rs. 5 Crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907: 1957: The Indian Mercantile Insurance Ltd., set up, the first company to transact all classes of general insurance business. General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1 st 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.

1968: 1972: -

Life Insurance India

Life Insurance in India was nationalized b life Insurance Corporation (LIC) in 1956. All private life insurance companies at that time were taken over by LIC. In 1993 the Government of Republic of India appointed RN Malhotra Committee to lay down a road map for privatization of the life insurance sector. While the committee submitted its report in 1994, it took another six years before the enabling legislations was passed in the year 2000, legislation amending the Insurance act of 1938 and legislating the Insurance Regulatory and Development Authority Act of 2000. The ame year that the newly appointed insurance regulator Insurance Regulatory and Development Authority IRDA started issuing licenses to private life insurers. List of Life Insurers (as of March, 2006) Apart from Life Insurance Corporation, the public sector life insurer, there are 14 other private sector life insurers, most of them joint ventures between blue blooded Indian groups and global insurance giants. Life Insurer in Public Sector 1. Life Insurance Corporation of India

Life Insurers in Private Sector 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bajaj Allianz Life ICICI Prudential Life Insurance HDFC Standard Life Birla Sunlife SBI Life Insurance Kotak Old Mutual Life Insurance Aviva Life Insurance Reliance Life Insurance Formarly known as AMP Sanmar LIC Tata AIG Life Metlife India Life Insurance ING Vysya Life Insurance Max Newyork Life Insurance Sahara Life insurance Now they are not into business Shriram Life Insurance

Uses of life Insurance Life Insurance has many uses for both individuals and businesses. Some common uses include: Individual Uses Funeral Life Insurance proceeds can ensure that there is enough money for proper funeral and burial expenses. Dept Personal bills, credit card debt, student loans, and personal notes can be covered by life insurance in the event of an individuals death. Mortgage Protection The proceeds of a life insurance policy can pay off the balance of a mortgage or provide an income stream to pay monthly mortgage or rent payments. Income Replacement In the event of an individuals death life insurance proceeds can provide a supplemental income stream to ensure that the surviving family members are able to maintain the same standard of living. Education Life insurance proceeds can ensure that the education costs of the insureds children are covered. Taxes Federal estate and state inheritance taxes can be pre-funded using life insurance to preserve the value of an estate. Donations/Gifts An individual can use a life insurance policy to fund a donation to a charity or leave a gift to a family member. Business Uses Key-person A life insurance policy can be used to protect a business from the loss of profits caused by the death of a key employee. Business Continuation Life insurance can be used to fund a buy/sell agreement or stock redemption plan to enable a partner or group of employees to buy the business interest of a deceased partner. Business Loans Life insurance protection on a key employee or business owner can be used pay off the debts of a business in the event of that individuals death. Employee Benefits Life insurance protection for employees is commonly included in company employee benefits plans.

NEEDS FOR LIFE INSURANCE

The above definition capture the original, basic, intention of life insurance i.e. to provide for ones family & perhaps others in events of death, especially premature death. Originally, policies were provides for short period of time, covering temporary risk situation such as sea voyages. As life insurance becomes more established, it was realized what a useful tool it was for number of situation including: Temporary Needs/Threats: - The original purpose of life insurance remains an important element, namely providing the replacement of income on death etc. Regular saving: - Providing for ones family and oneself as a medium to long term exercise. This has become more relevant in recent times as people seek financial independence from their family. Investment: - Put simply, the building up of saving while safeguards it from ravages products are trationally lump sum investment, where the individual makes a one time payment. Retirement: - Provision for ones own later becomes increasingly necessary, especially in a changing cultural & social environment one can buy a suitable policy, which pull provide periodical payment in one old age.

BENEFITS FROM LIFE INSURANCE

1. It is Superior to a traditional saving vehicle: - As well as providing secure vehicle to build up saving etc. it provides peace of mind to the policy. In the event of untimely death, of say the main earner in the likely to be significantly more than the total premium paid. With more traditional saving vehicles, such as fixed deposits, the only return would be the amount invested plus any interest accrued. 2. It encourage saving and force thrift: - Once an insurance contract has been entered into, the insured has an obligation to continue paying premium, unit the end of the term of the policy, otherwise the policy will lapse. In other words, it becomes compulsory for the insured to save can be accessed easily. 3. It provides easy settlement & protection against creditors: - Once a persons is appointed for receiving or the transfer of right is made a claim under the life insurance contract can be settled easily. In addition, creditors have no right to any monies paid out by the insurer, where the policy is written under the trust. Under the married womens property act (MWP Act) the money available from the policy forms a kinds of trust which creditors cannot claims on. 4. It can be encased & facilities borrowing: - Some contract may allow the policy can be surrounded for cash amount, if a policy holder is not in the position to pay the premium. A loan against certain politics can be taken for a temporary period to tide over the difficulty. Some lending institutions will accept a life insurance policy as collateral for a personal or commercial loan. 5. Tax Relief: - The policy holder obtains income tax rebates by paying the insurance premium. The specified forms of saving which enjoys a tax rebate, under section 88 of the income tax Act, include life Insurance Premium & contribution to recognized provident fund etc.

INSURANCE AS A SOCIAL SECURITY TOOL

When the bread winner of a family dies, to that extent the families income dies, the economic condition of the family is affected unless other arrangement come into being to restore the situation, life insurance provides such an arrangement. If this does not happen another family would have been pushed into the lower strata of security. The lower strata create a cost on society. Life insurance tends to reduce such cost.

ROLE OF INSURANCE IN ECONOMIC DEVELOPMEN

For economic development investment are necessary. Investments are made out of saving a life Insurance Company is a major instrument for the mobilization of the saving of people. These investments are channeled into the investment for economics growth. Investments are made in the area like: 1. 2. 3. 4. Road Transport Setting up Industrial Estate Directly Financing Industry Investment in Corporate Sector like: a. Share b. Debentures c. Term Loan

These were the areas, which directly affect the live of the people and their economic well beings.

GROWTH AND COMPETITION IN INSURANCE INDUSTRY

The insurance industry recorded a booming growth of 35% in premium income during 2004-05 with the 13 private sector players walking away with an impressive 129% while the life insurance corporation of India recorded a 21% growth. Thus the market share of state behemoths drooped to 78% in 2004-05 from 87% a year ago. According to ASSOCHAM Eco. Pulse (AEP) study, the industry premium increased to Rs. 253.42 bn in 2004-05 from Rs. 187. Bn. In 2003-04. The LIC total premium for the year 2004-05 amounted to Rs. 197.85 Bn. As against the Rs. 162.84 Bn. During previous year. The figure for the first two months of the fiscal 2005-06 also speaks of the following share of the private insurers. The share of LIC for this period has further come down to 75% while the private players have grabbed over 24% share. With the huge potential the market has, the Government should, more seriously look like into increasing the FCI Cap in the sector. During April-June 2005, the largest private company Reliance Life has increased its shares from 6.25% in 2004-05 to 7.68% in current fiscal. The opening up of the sector has given some and now the until linked policies that have against much of customer attention. The sector has huge potential and other new and innovate areas can also be looked into for enhancing market share and premium income.

HDFC is next in the row with 2.91% market share which has increased from 1.92% last fiscal. Birla Sun Life share has dropped from 2.45% during FY 5 to 1.76% in first two months of FY 06. SBI Life comes next with 1.72% share and has infact dropped a few percent points from last year. The details of the market share of life Insurance companies are attached. The market share of the private players has doubled every year from 5.6% in 2002-03 to 12% in 2003-04 and close to 22% in 2004-05. The life insurance industry grew by a steady growth of 16.2% with 14 players mopping up Rs. 2678 crore in premium in new business even in the lean month of April May. Among the private insurer, Reliance Life is far head of others with a market share of 7.68% after posting a business growth of 50% at Rs. 136 crore. Bajaj Allianz climbed fast and was second with a market share of 3.63% followed by HDFC standard life, TATA AIG (2%) and Birla Sunlife (1.76%) SBI Life (1.72%), Max New York (1.33%) and AVIVA (1.11%). The state run insurance company has the biggest advantages of its hugh network which the company can use to penetrate into rural market that its still lying untapped. Another option with the life insurance companies to capture more and more market share could be product innovation and constantly developing an insurance product in order to meet the ever changing requirement of the customer. Quality customer service and education can be another area where a company can differentiate itself from other companies. Table: - Showing Market Share of Various Firms COMPANIES MARKET SHARE (%AGE) LIC 78 Reliance Life 7.62 Bajaj Allianz 3.61 HDFC Standard Life 2.91 Birla Sun Life 1.71 Max New York 1.33 Aviva 1.11 Each of the remaining players like: Amp Sanmar, Kotak Mohindra old Mutual Fund, ING Vysya, Met Life and Sahara Life Are yet to acquire even one percent of the market share.

Opportunities in the Insurance Sector As shown in the pie chart only 25% of the insurance population is covered. The yet have to cover 75% of the population.

25% c 75%

Oppetnity Taped Avaible Opportunity

ABOUT IRDA
Composition of Authority under IRDA Act, 1999 As per the section 4 of IRDA Act, 1999 Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority. The Authority is a Ten-Member team consisting of: a. A Chairman b. Five whole time members c. Four part time members (All appointed by the government of India)

DUTIES, POWER AND FUNCTIONS OF IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA 1. 2. Subject to the provisions of this act and any other law for the time being in force, the authority shall have the duty the regulate, promote and ensure growth of the insurance. Without prejudice to the generality of the provision contained in sub-section (1) the powers and functions of the Authority shall include:a. Issue to the applicant a certificate of registration, renew, modify withdraw, suspend or cancel such registration. b. Protection of the interest of the policy holders in matter concerning assigning of policy, nomination by policy holders, insurance interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance. c. Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents. d. Specifying the code of conduct for superiors and loss assessors. e. Promoting efficiency in the conduct of insurance business. f. Promoting and regulating professional organizations connected with the insurance and re-insurance business. g. Leveling fees and other charges for carrying out the purposes of this act. h. Calling for information form, undertaking inspection of, conducting enquires and investigation including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business. i. Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so

j. k. l. m. n. o. p. q.

controlled regulated by the Tariff Advisory committee under section 64U of the Insurance Act, 1938 (4 of 1938). Specifying the forms and manner in which books of accounts shall be maintained and the statement of account shall be rendered by insurers and other insurance intermediaries. Regulating investment of funds by insurance companies. Regulating maintenance of margin of solvency. Adjudication of disputes between insurer and intermediaries or insurance intermediaries. Supervisor the functioning of the Tariff Advisory Committee. Specifying the percentage of premium income of the insurer to finance scheme for promoting and regulating professional organization referred to in clause (f). Specifying the percentage of life insurance business and general insurance business to be under taken by the insurer in the rural or social sector; and Exercising such other powers as may be prescribed. Section 88 Section 80CC Section 80 D Section 10 (10D)

TAX BENEFITS Section 88

Rebate u/s 88 is available @ 20% on certain investment. The maximum amount of investment qualifying for rebate u/s 88 is Rs. 60000/-. However additional rebate on investment up to Rs. 20000/- is available in respect of subscription to specified infrastructural equity shares / debentures. Section 80CC With effect from AY 1997-98, a new section namely 80CC has been enacted which provides that if an assesses being an individual pays or enacted any amount out of his income chargeable to tax to effect or keeps in force a contract for any annuity plan of life insurance corporation of India for receiving pension from the fund referred to in section 10 deduction of the amount deposited or Rs. 10000/- whenever is less. However, the assesses shall not be entitled to claim a rebate u/s 88 for the premium paid on the above policy if he has claimed deduction u/s 80-CCC.

Section 80D Section 80D of the income tax provides for a deduction up to Rs. 10000/from the total income of a tax payers, being an individual in respect of any sum paid by cheque, to effect or keep in force an insurance policy on the health of individual and his family members (including dependent parents). With effects from AY 2000-01 and subsequent years, the momentary limit of deduction under section 80D, has been raised form its present level insurance on the health of the assesses of his wife in force an dependents parents and who is senior citizens. Section 10 (10D) Receipts from life insurance policy the periodic cash benefits, maturity and death benefits are tax free under this section.

THE INSURANCE SECTOR IN INDIA: ITS POTENTIAL ATTRACTIVENESS TO FOREIGN INSURANCE COMPANIES
India at a glance Population: 1 Billion Economy: 5th largest in the world in terms of Purchasing Power Parity (PPP) GDP growth rate: Over 6% per year on an average for the last decade Saving Rate: Around 26% of GDP Estimated middle class population: 300 Million Insured Population: 70 Million only The Life Insurance Scenario in India Since 1956, with the nationalization of insurance industry, the state-run Life Insurance Corporation of India (LIC) has held the monopoly in that countrys life insurance sector. General Insurance Corporation of India (GIC), with its four subsidiaries, was its counterpart in the casualty sector, over time, taking advantage of its monopoly and virtual prerogative in establishing premiums, LIC has evolved into a monolith. With around 600000 agents in every nook and corner of the vast country, it has created an enviable brand name, particularly among the rural population of the country. It has around 40$ billion as its life fund and is a pride in. And there lies the potential for foreign players to challenge this behemoth.

As is typical with monopolies, the premium rates charged by LIC are among the highest in the world, and its track record in customer service can, at best, be called shabby. With a huge unionized, rigid workforce mostly in the clerical category, LIC runs the risk of high fixed cost, which will be the deciding factor in productivity in the competitive scenario. While boasting full-scale automation of its operation, the truth is that its technology is outdated. The new players, with the state-of-the-art technology under their belt, will be in an advantageous position. 80% of LICs business is procured by 20% of its ill-trained agent force. The foreign player, with the domestic partners strong brand value, can test the unconventional distribution channels like brokers, the internet, the banking distribution system, etc. although foreign players may be temped to keep their operation in the big cities for the creamy layer of the society, the real market lies in rural India, which accounts for the lions share of LICs present business. The foreign player must learn to adapt to Indian realities. The well-publicized failures of world famous consumer goods companies lide Electrolux, Whirlpool, Reebok, Nike etc. to gauge the Indian psyche and sentiments demonstrate the concept. They failed in the areas of realistic pricing, product promotion and reaching to the consumer. The foreign companies need to know the ground realities to the details. Political Scenario Until recently, India continued to be one of the few remaining countries of the world to remain insulated from the direct foreign investment in its insurance sector. However, things are changing now with the passage of Insurance Regulatory Development Act (IRDA) through Indian Parliament in late 1999. a much awaited and much debated act, it met with strong resistance from the political institutions of India and took almost six years to see daylight. Through first recommended by Malhotra Committee on Insurance Reforms in 1994, what emerges is a diluted form of the original recommendations. However in the long awaited period of its passage, the issue was nationally debated and was finally de-politicized, meaning that the reform path is irreversible. IRDA, for the time being, prohibits 100% foreign equity in insurance. It requires the Indian promoter to invest either wholly in an insurance venture or team up with a foreign insurer, with a cap of 26% of equity for a foreign partner. The Indian promoter is permitted to divest only after 10 years to the Indian public, through a public offering of shares, at which time the equity structure will provide for equal participation between the Indian and foreign partner with a share of 26% each in the share capital. The underlying tone of the 26% cap for the foreign insurer is to ensure that the financial inters substantially vest with the Indian promoter, permitting the foreign co-promoter a definite say in direction and management (by Indian Company Law, 26% is the minimum equity to move a resolution or vetoing a resolution in Board of Directors meeting). It is important to note that the 26% level is the bargained solution by the privatization

proponents (read Government) in the face of stiff political resistance. The main two political poles of Indian politics the congress party and the bhartiya janta party (BJP) are both in favor of the reform. Only the extent of the reform and who-will-bell-the-catand-get-(dis) credit factor bar them in reaching a consensus for more sweeping reforms. The populist out-of-fashioned socialistic jingoism, masking these parties rightist ideology, it fast losing its appeal to the masses. This will only hasten the reform process. Indian Partner Aditya Birla Group Kotak Mohindra Finance HDFC Reliance ICICI ICICI Max India Sundaram IFFCO Tata Group Vysya Bank Hero Group Cholamandalam Group Hindustan-Times Dabur Bajaj Auto Undecided Sanmar Group SBI S Kumars, J&K Bank Foreign Insurer Sunlife, Canada Old Mutul, S. Africa Standard Life, UK Specialization Present Status Life Received License Life Received License Life

Received License, Commence operation No foreign Life, Non-Life Received License for alliance and Health Non-life Prudential, UK Life Received License, Commence operation Lombard, Canada Non- Life Not applied New York Life, Life Received License USA Royal & Sun Non-Life Received License Alliance PLC, UK Tokio Marine, Non-Life Received License Japan AIG, USA Life and Non- Received License life ING Insurance, Life Applied for License Netherland Zurich, Life Not applied Switzerland Undecided Life Not applied Undecided CGNU Life, UK Allianz Metlife, USA AMP, Australia Cafdiff, France Undisclosed Life Life Non-Life Life Life Life Non-Life Not applied Not applied IRDA seeks information Not applied Not applied Not applied Finalizing Partner

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Corporation Bank Undisclosed Undisclosed Undisclosed Undisclosed Undisclosed Undisclosed City Bank, India Undisclosed Videocon, International

Undisclosed Life Aegon, Nethelands Life Pensions Cigna, USA Life Health Chubb, USA Property Casualty Yasuda Marine Non-life and Fire, Japan Mitsui Marine and Non-life Fire Nationwide, USA Life Pensions Undecided Non-life GE Capital Life Services international, USA Talks on with Non-life BNP Paribas, AXA, France

Finalizing Partner and Finalizing Partner and Finalizing Partner and Finalizing Partner Finalizing Partner Finalizing Partner and Finalizing Partner Finalizing Partner Finalizing Partner Finalizing Partner

CHAPTER 2 INTRODUCTION

MAX NEW YORK LIFE INSURANCE CO. LTD.

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. 657 crore, which is more than the norm laid down by IRDA. Max New York Life has identified individual agents as its primary channel of distribution. The Company places a lot of emphasis on its selection process, which comprises four stages - screening, psychometric test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal control on quality of training. Max New York Life invests significantly in its training 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 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. 201 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2005. MDRT is an exclusive congregation of the worlds 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 26 life insurance products and 8 riders that can be customised to over 400 combinations enabling customers to choose the policy that best fits their need. 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. Headquartered in New York City, New York Lifes family of companies offer life insurance, annuities and longterm care insurance. New York Life Investment Management LLC provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds. The mission of New York Life is to maintain its superior 'financial strength', adhere to the highest standards of 'integrity' and demonstrate 'humanity' by treating its customers, agents and employees with compassion, consideration and respect. New York Life is one of the largest and strongest life insurance companies in the world with more than USD$215 billion assets under management and has received among the highest ratings for financial strength from the life insurance industry's principal rating agencies: A.M. Best (AA+), Standard & Poor's (AA+), Moody's (Aa1), Fitch (AAA). According to Moody's, "New York Life's rating reflects the company's good quality investment portfolio, ample liquidity, and sound capitalization, as well as the good growth potential of its international business. As a leader in the insurance industry, New York Life continues to bring to its operations new management concepts, advanced technologies, new distribution and training systems and innovative insurance products. Founded in 1985, Max India Limited is a Public Limited company listed in the NSE and BSE of India with over 37,000 shareholders. Today, Max India Limited is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of:

Healthcare (Max Healthcare) Life Insurance (Max New York Life Insurance) Clinical Research (Neeman Medical International)

Max also maintains interests in:

Specialty Plastic Products for the packaging industry (Max Speciality Products) Healthcare Staffing (Max Health Staff)

Prominent shareholders are Mr Analjit Singh and a leading private equity firm, Warburg Pincus which accounts for 28.7% of the total shareholding. The balance shareholding is held by the public and Institutional Investors. Till 1999, the companys main interests and partnerships were the following: Business

Partners

Bulk Active Pharmaceuticals Electronic Component Distribution Electronic Component Distribution Mobile Telephony V-SAT Communications Plating Chemicals

DSM Gist Brocades Motorola, USA Avnet Inc., USA Hutchison Telecom Ltd. Hong Kong Comsat Investment Inc., USA & Lockheed Martin, USA Atotech, Germany Mind Crossing, USA

Information Technology In 2000, the Company reinvented and restructured itself to focus on the businesses of Life under the theme, LifeOur Focus. Max New York Life Insurance, founded as a Joint Venture between Max India Limited and New York Life, a Fortune 100 company, is one of the leading private life insurers in India. Max Healthcare, a subsidiary of Max India Limited is Indias first provider of comprehensive, standardized, seamless, and integrated world-class healthcare services. Neeman Medical International (NMI) is an International Clinical Research provider operating across three locations spanning North America, Asia and Latin America. Each location is backed by comprehensive infrastructure and highly skilled and experienced personnel.

ACHIEVEMENTS
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. We were among top five most respected private life insurance companies in India according to a 2004 Business World survey. We 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.

VISION AND MISSION

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 Become principal of choice for agents Values This vision to become India's most admired life insurance company will be realized through our unique set of values, which are as follows: 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 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.

BOARD OF DIRECTOR

Analjit Singh Chairman, Max India Limited Gary R. Bennett Managing Director and Chief Executive Officer, Max New York Life Insurance Company Ltd. Anuroop 'Tony' Singh Vice Chairman, Max New York Life Insurance Company Ltd. Joseph Gilmour President and Chief Executive Officer, New York Life International

Analjit Singh Chairman, Max India Limited An MBA and BSBA from Boston University, Mr. Singh founded Max India in 1984. He has since built a true multi-business corporation focused on the businesses of Life Insurance, Healthcare and Information Technology with interests in Bulk Pharma, Plastic Speciality Products, Electronic Components and Plating Chemicals. Mr. Singh is a widely acknowledged businessman revered for his skills in successfully managing joint ventures across businesses. Apart from his direct involvement in Max India and its related ventures, Mr. Singh is also a Member of the Executive Board of the Indian School of Business; the Harvard Medical School -Microbiology Advisory Council, Trustee of the Delhi Chinmaya Mission Seva Trust and Member of the Board of Directors of Welhams School, Dehradun.

Gary R. Bennett Managing Director and Chief Executive Officer, Max New York Life Insurance Company Ltd. Gary Bennett joins Max New York Life from New York Life Insurance Worldwide in Hong Kong, where he was President and Chief Executive. A true Asia life insurance veteran, Gary has over 25 years of experience in the industry and has worked for a number of companies in Australia and across Asia Pacific. Before joining New York Life, Gary was Managing Director North Asia of Prudential Corporation Asia. During his tenure, he was also a member of the PCA Regional Board, Life ExCo and Chairman of the Life Insurance Companies in Japan and Korea as well as a Director of PCA Asset Management Japan. Prior to this, he was of Chairman and Chief Executive Officer of CMG Asia Life in Hong Kong where he led CMG's substantial growth in Hong Kong from 1997. He was also instrumental in establishing CMG Asia Pensions and Retirement Co. and CMG Asia Trustee.

Gary also held a number of senior management positions for Colonial (CMG) in the Asia-Pacific region, including CEO & Chairman of Jardine CMG Consulting in Singapore where he worked on the China Licensing Team and headed the team that saw Colonial receive the first Australia Joint Venture Life Insurance License in Vietnam and China. Gary is currently on the board of the Australian Chamber of Commerce in Hong Kong, and is a Councilor of the Life Insurance Council of the Federation of Hong Kong Insurers. Anuroop 'Tony' Singh Vice Chairman, Max New York Life Insurance Company Ltd. Anuroop (Tony) Singh is Vice Chairman of Max New York Life Insurance Company Ltd. He is also an independent director on the board of other corporate entities, including philanthropies. He is a Chartered Accountant with over three decades of experience in the financial services sector, including two decades as a Chief Executive for various businesses. Having built a number of successful businesses, he is now pursuing board level engagements with select professionally managed and value driven organizations, which aim to leverage the full potential of an active board. Before he was elevated to Vice Chairman, Mr. Singh was the CEO and Managing Director of Max New York Life, a company he led since its inception in 2000. As the chief driver of the companys vision, he played a pivotal role in the companys operations and articulation of its business strategy. Under his stewardship, the company established a pan-India presence and gained a market reputation for trust, quality and customer focus. The company was awarded the New York Life International Chairmans Trophy for Sales Excellence in 2004 and has become GAAP profitable in record time, ahead of plan. Earlier, Mr. Singh was Country Head, India and Regional Head, Consumer Banking, Middle East and South Asia, for ANZ Grindlays Bank - the largest foreign bank in India. At ANZ Grindlays Bank, he implemented a new revenue led business strategy and significantly turned around the banks overall performance. Mr. Singh has also been the Country General Manager for retail banking at Bank of America for five years. He spearheaded Bank of Americas launch in India and oversaw the retail banking business in the country. Mr. Singh was

appointed a member of the global key 200 management group of Bank of America by office of the Chairman. Mr. Singh worked for 15 years in various positions with American Express, establishing the company in several countries in the region. His exemplary work in launching new products and services in regional markets, including the signature American Express Card, earned him the coveted Chairmans Award for Quality in 1994. He also inspired the creation of Finance Resource Centre the countrys first Business Processes Outsourcing organization, which is now a living example of successful strategic reengineering. Qualified as Chartered Accountant in 1976, Mr. Singh did his articleship from A.F. Ferguson and Co., a leading firm of public accountants in India, where he also spent two years as a Management Consultant. He also worked overseas, with Ernst & Young. Mr. Singh graduated from Delhi University in 1973 and studied at the Doon School, Dehra Dun. He is married to Catherine Morice Singh, a professor of Mathematics and a keen Indologist. They have two teen-aged daughters. Joseph Gilmour President and Chief Executive Officer, New York Life International Mr. Gilmour joined New York Life International in August 2003 as Executive Vice President and Chief Financial Officer. He was previously with Canada Life, where he worked for the majority of his 25-year career. In his last five years with Canada Life, Mr. Gilmour served as senior vice president of the International and Reinsurance Division. In that role he was responsible for the management and development of Canada Life's international holdings and reinsurance operations. Mr. Gilmour's career with Canada Life also included senior roles in group life insurance and pension, strategic planning, mergers and acquisitions, and product development. Mr. Gilmour is a fellow of the Society of Actuaries (F.S.A.) and a graduate of the University of Toronto, Ontario. He and his wife, Cathy, have three children.

SOCIAL RESPONSIBILITY

The company donates a part of the total money collected on all policies sold, to SOS Children's Villages of India at the end of the year. Max New York Life has been instrumental in changing the paradigm of life insurance in India. It is the first life insurance company in India to introduce cause related marketing. Children are at the very heart of Max New York Life's strategy. SOS Children's Villages of India is internationally recognized for its work in giving underprivileged children a wholesome life.The mission of SOS is "to help orphaned and abandoned children, by providing them with a family, a permanent home, education and strong foundation for an independent life." It's mission ties in with Max New York Life's philosophy of helping people secure the future of their near and dear ones. MNYL employees at a painting competition at SOS Village Max New York Life employee visits to SOS Villages are organized regularly to generate a sense of ownership and involvement among employees. Anuroop 'Tony' Singh, making an annual commitment to SOS Max New York Life has also instituted the David Allen trophy for the Most Socially Responsible Student at SOS Children's Villages. David Allen, an employee of New York Life, has donated Rs. 50,000 towards the rolling trophy, which will be awarded to a student, of the Herman Gmeiner (SOS) School at Faridabad, who displays and shows caring and a social responsibility towards his/her schoolmates or on a larger stage. Shortly after inception, Max New York Life saw Gujarat being devastated by a ruinous earthquake. The Max India Family and New York Life International contributed Rs.86.25 lakh towards the permanent care of children affected by the earthquakes in Gujarat. Tsunami

More recently, in March 2005, New York Life made a donation of Rs. 17 lakh to SOS Childrens Villages of India for the long-term rehabilitation of survivors of the Tsunami disaster in Tamil Nadu. The funds will be used by SOS Childrens Villages of India for the reconstruction of permanent dwellings for fishing communities severely affected by the Tsunami waves in December 2004. A few weeks earlier, New York Life joined its joint venture partner Max India in making a donation of Rs. 75 lakh to the Prime Ministers National Relief Fund. The Chairman of Max New York Life, Analjit Singh, met Prime Minister Manmohan Singh to personally hand over the cheque. Shortly after inception, Max New York Life saw Gujarat being devastated by a ruinous earthquake. The Max India Family and New York Life International contributed Rs.86.25 lakh towards the permanent care of children affected by the earthquakes in Gujarat.

OFFICE NETWORK
Registered office Max New York Life Insurance Company Limited, Max House, 3rd Floor, 1 Dr. Jha Marg, Okhla, New Delhi 110020 Tel: (011) 6933610 Home office Max New York Life Insurance Company Limited, 11th Floor, DLF Square Building, Jacaranda Marg, Phase II, Gurgaon 122002 Tel: (0124) 2561717 Call toll free number 1 800 1805577. OFFICES IN PUNJAB Chandigarh MAX NEW YORK LIFE INSURANCE CO.LTD SCO No. 36-37-38, 2nd flr, Sector 8C, Madhya Marg, Chandigarh - 160018, Tel: 0172- 5019901-10. Jalandhar MAX NEW YORK LIFE INSURANCE CO.LTD 1st floor, 917/918, Namrita Complex, G.T. Road, Jalandhar, Tel: 0181 - 5075555, 51. Ludhiana MAX NEW YORK LIFE INSURANCE CO.LTD SCO 120, Ist & 2nd Floor, Firoze Gandhi Market, Firozepur Road, Ludhiana -141001, Tel: 0161-5084000.

PREMIUM PAYING OPTIONS

The life insurance policy owner may designate a specific settlement option to be paid upon his or her death. If the policy owner does not choose a specific option, the beneficiary (s) will be given a number of choices These usually include: Lump Sum Payment: The death proceeds of a life insurance policy are paid to the beneficiary (s) for a fixed period. Fixed Period Payments: The death proceeds of a life insurance policy are paid to the beneficiary (s) for a fixed period. Life Income with Installments Certain: The death proceeds of a life insurance policy are paid to the beneficiary (s) in installment payments through a certain period. After the certain period, payments will continue to be made throughout the beneficiarys lifetime but the payment may very from the payments during the certain period. Interest Payments: The death proceeds of a life insurance policy remain with the insurance company and the company pays the beneficiary interest payments. Fixed Installments: The death proceeds of a life insurance policy are paid to the beneficiary (s) in fixed installments until the proceeds and interest on the unpaid balance of the proceeds are exhausted. Single Premium Annuity: The death proceeds of a life insurance policy are used to purchase a single premium annuity from the insurance company.

PRODUCTS OF MAX NEW YORK LIFE INSURACNE

Individual Plans Whole Life Participating Five Year Renewable and Convertible Term Insurance Life Partner Plus Level Term Policy Unit Link Investment Plans Life Maker Premium Investment Plan Life Maker Pension Plan Life Maker Platinum Life Maker Gold Saving Plans Life Pay Money Back Life Gain Endowment Children Plans Children's Endowment Participating Insurance Stepping Stones Participating Insurance Plan Retirement Plans Easy Life Retirement Plan Endowment to age 60 Participating Insurance Group Plans Unit Linked Group Gratuity Plan Employee's Deposit Linked Insurance Group Gratuity Group Term Life

WHOLE LIFE PARTICIPATING

Whole Life Participating Insurance provides an insurance cover that is guaranteed for your entire life. This policy also builds cash value, which you can use during your lifetime to fund any unforeseen needs either by surrendering accumulated PUAs (explained below) or taking a loan. In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Sum Assured plus accrued bonuses. On Maturity (attaining age 100): Sum Assured plus accrued bonuses. Bonus: From 3rd policy year, we will declare bonuses every year. Option to Participate in Progressive Bonuses: Allows you to top up your premiums to purchase additional Sum Assured in your existing policy. It also generates further bonuses. Tax benefits: You are entitled to the following tax benefits under Income Tax Act 1961: Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year. Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,000/- every year. Your claim amounts (from death, through surrenders or on maturity) are eligible for tax exemption u/s 10(10D). Customize your policy to meet your specific needs:

We offer you the flexibility to enhance the valuej of your policy by using the following riders/options: Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the ten diseases covered e.g. Heart Attack, Cancer, etc. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case of death or disability caused by an accident.

Term / Term R&C Riders: Offers additional Sum Assured to match your changing needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your life. Waiver of Premium (WOP) / Payor Riders: Waives your future premiums in case you suffer total disability. The payor rider waives future premiums on your childs policy in case you suffer total disability Guaranteed Insurability Option (GIO) Rider: Allows you to buy guaranteed additonal insurance at seven different stages in your life.

Unique features in this policy:

Bonuses: You can use your bonuses in the following ways: o Withdraw in cash: bonus will be paid to you by cheque. o Pay your premiums: bonus will be used to pay the next premium. o Increase your Sum Assured: bonus will be used to buy additional layers of insurance cover in the existing policy by buying Paid Up Additions (PUA). o Purchase term insurance: bonus will be used to purchase additional coverage valid for one year. Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs. 5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that can lead to death in 6 months; you can use this money for your treatment. The balance of the sum assured and the bonuses will be payable to your family on the occurrence of the Insured Event. Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse and we will utilize your cash value to buy you insurance coverage in one of the following ways: o Reduced Paid Up: A lower Sum Assured for the remaining term of your policy. Extended Term Insurance: The same Sum Assured for part of the remaining term of your policy. In case you do not want either of the above, you can choose to take the cash value by cheque.
o

Special rates for female lives

UNIT LINKED PREMIUM INVESTMENT PLAN

A unit linked insurance plan that enables you to manage your investments and fulfill your lifes needs. Life gives you a lot of choices-especially when youre looking for ways to protect your family, build the business you aim to own and the life style you hope to establish. But things may change along the way and you may have to adjust to the changes which life brings to you and this adaptability should also be available with your life insurance plan. Our Unit linked Life Insurance plan can be the financial cornerstone for your objectives. Life MakerTM Premium Investment Plan provides you a solution to fulfill all your dreams, whether youre buying a home, starting a family, launching a business venture. Max New York Life Insurance provides you a powerful investment-cum-insurance plan that empowers you to manage your investments through your insurance policy. In this unit linked plan, you can direct your investments in our customized unit linked funds, which offer investments of different types: Fixed Income (e.g. Govt. Securities, Company Debentures) and Equities (i.e. shares). Hence it is a one-stop option to fulfill all your plans without the hassle of managing multiple products.
KEY BENEFITS

Protection Attractive Returns Liquidity Tax Benefits Flexible Investments PROTECTION-This policy provides you comprehensive protection incase of Death Level Insurance Cover - In the unfortunate event of your death anytime during the tenor of the plan, we will pay to your nominee(s) the higher of the Sum Assured or the Fund Value in the policy. Disability Personal Accident Benefit (PAB) Rider This rider provides a lump-sum amount if you die by accident or are involved in an accident, which results in Total and Permanent Disability.

Disease Dread Disease (DD) Rider This rider provides a lump-sum amount on you being diagnosed with any of the ten dread diseases covered or your undergoing the surgery covered. Please note that the rider Sum Assured cannot exceed the Sum Assured of the base plan and the rider Sum Assured is subject to limits. RETURNS-This policy provides you competitive returns in the form of Maturity Benefit On maturity, we will pay you the Fund Value. However, if you do not want the proceeds on maturity (due to adverse market movements or to take advantage of a bull run etc.), you may choose to defer it up to 5 year by opting for the Settlement option. Loyalty Units We will allocate free units (called Persistency Units) to your unit account on the 9th policy anniversary and on every 3rd anniversary thereafter. These will be equal to 0.75% of your fund values on the immediately preceding 36 monthiversaries.

LIQUIDITY- This policy provides you easy liquidity viaPartial Withdrawal-Withdraw up to 20% of your Fund value as on previous policy anniversary, to take care of any irregular expenses. Partial Withdrawals are allowed once Policy completes 3 Years. Surrenders- Incase of unforeseen needs ensures easy liquidity to you by accessing your fund through surrender benefit. However, full surrender is possible only after the completion of three policy years. TAX BENEFITS- This plan entitles you to tax benefits under

U/s 10(10D) of the Income Tax Act 1961 on the Maturity proceeds of the Policy U/s 80C of the Income Tax Act 1961 on the Annual Premium on the Policy

FLEXIBILITY Flexibility to Choose the Insurance Cover: You have the option to choose your sum

assured from a wide range of available limits. This feature gives you an opportunity to direct your money towards investments or towards coverage, depending on your need. High or low Sum Assured will not change the premium. Flexibility to Choose Premium Payment Term: You have the flexibility to choose the premium payment term between Regular Pay and Limited Pay (5/10/15 years). Suitable for all kind of cash flows of any individual. Flexibility to Choose Policy Term: You can choose the policy term from a wide range of 10 years to 30 years, subject to a maximum maturity age of 75. Flexible Investment: You have the flexibility to direct your investments in any one or more of the following five unit linked investment funds of the Company: SECURE, CONSERVATIVE, BALANCED, GROWTH and GROWTH SUPER. These funds invest in Fixed Income and equity assets as follows: FUND -> GROWTH SECURE CONSERVATIVE BALANCED GROWTH SUPER INVESTMENT FUND FUND FUND FUND FUND TYPE Govt.Securities 50-100% 50-80% 20-50% 0-30% 0-20% Corporate Bond (Investment 0-50% 0-50% 20-40% 0-30% 0-20% Grade Money Market 0-20% 0-20% 0-20% 0-20% 0-20% Instrument/Cash Equities Nil 010% 10-40% 10-70% 70-100%

Invest more through fund Top-ups to match your cash flows: You can invest extra money in your policy through occasional top-ups at anytime post the policy commencement dates. However, cumulative top ups will be allowed only up to 25% of the cumulative Annual Target Premium till date. Top ups will not effect the Sum Assured. Switch across funds: This plan allows you to switch between funds and allows you to change your risk return profile of your existing investments. The switch option we offer is one of the most powerful and flexible ones in the market where money from one fund can be switched to multiple funds in a single switch. 6 Free switches are available to you in a Policy Year. Re-direction: This plan allows you to re-direct your future premiums. You can invest your future premiums in a fund different from your earlier fund, or to multiple funds in a ratio different from your earlier ratio. 3 free re-directions are available to you in a policy year.

LIFE PAY MONEY BACK

Life Pay(R) Money Back (Participating Plan) will keep paying you a part of the Sum Assured at regular intervals, to take care of your periodic foreseen needs, and the balance keeps growing to take care of your long term saving needs, as well as provides insurance coverage till maturity. In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Sum Assured plus Sum Assured of Paid Up Additions, if any(without deducting any money back installments, if already paid). On maturity: Sum Assured less money backs already paid plus 10% of SA as guaranteed addition plus accrued bonuses (if any). Bonus: From 3rd policy year, we will declare bonuses every year. Tax benefits: You are entitled to the following tax benefits under Income Tax Act 1961: Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year. Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,000/- every year. Your claim amounts (from death, thorugh surrenders or on maturity) are eligible for tax exemption u/s 10(10D). Customize your policy to meet your specific needs:

We offer you the flexibility to enhance the value of your policy by using the following riders/options: Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the ten diseases covered e.g. Heart Attack, Cancer, etc. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case of death or disability caused by an accident.

Term / Term R&C Riders: Offers additional Sum Assured to match your changing needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your life. Waiver of Premium (WOP) / Payor Riders: Waives your future premiums in case you suffer total disability. The payor rider waives future premiums on your childs policy in case you suffer total disability.

Unique features in this policy:

Bonuses: You can use your bonuses in the following ways: o Withdraw in cash: bonus will be paid to you by cheque. o Pay your premiums: bonus will be used to pay the next premium. o Increase your Sum Assured: bonus will be used to buy additional layers of insurance cover in the existing policy by buying Paid Up Additions (PUA). Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse and we will utilize your cash value to buy you insurance coverage in one of the following ways: o Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.
o

Extended Term Insurance: The same Sum Assured for part of the remaining term of your policy.

In case you do not want either of the above, you can choose to take the cash value by cheque.

CHILDRENS ENDOWMENT
Children's Endowment Participating Insurance to age 18/24 with whole life option enables you to provide for specific needs of your growing children viz Child Endowment to Age 18 enables you to provide for higher

education of your child.

Child Endowment to Age 24 enables you to provide for the best possible wedding of your child and also builds cash value, which you can use during to fund any unforeseen needs by taking a loan. In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Refund of premiums plus interest. On Maturity: Sum Assured. On Surrender of Policy: Surrender value. Bonus: From 3rd policy year, we will declare bonuses every year Tax benefits: You are entitled to the following tax benefits under Income Tax Act 1961: Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year. Your claim amounts (from death, on maturity or through surrenders) are eligible for tax exemption u/s 10(10D) Customize your policy to meet your specific needs: We recommend that you enhance the value of your policy by buying the following rider: Payor Rider: Waives your future premiums in case you suffer total disability or meet with an untimely death. This ensures that your child will still get the lump sum money on attaining age 18 or 24

Unique features in this policy:

Cash Bonuses: Bonus will be paid to you by cheque. Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse and we will utilize your cash value to buy you insurance coverage in the following way: Reduced Paid Up : A lower Sum Assured for the remaining term of your policy. In case you do not want the above, you can choose to take cash value by cheque. o Upon your child attaining the age of 18, he/she will

have the option to buy a permanent life insurance policy without medical underwriting (irrespective of his/her health at that time).
o

On maturity of the policy, the benefits payable under the policy shall automatically vest with your child so that your child receives the benefits.

ENDOWMENT TO AGE 60 PARTICIPATING INSURANCE

Endowment to age 60 Participating Insurance is a quasi retirement policy that helps you to save primarily for your retired life. It will mature on the policy anniversary after your 60th birthday, and enables you to use the maturity proceeds in many ways viz. Purchase a pension from any life insurance company Purchase that house in your hometown where you want to lead your retired life

Pay for your childs higher education or marriage and also provides you with an insurance cover to protect your family from financial uncertainties in case of your untimely death before reaching age 60.

Till age 60, this policy also builds cash value, and is eligible for bonuses . You may use the cash value and/or the bonuses to fund any unforeseen needs either by surrendering accumulated PUAs (explained below) or taking a loan. KEY BENEFITS

On death of the life insured: Sum Assured plus accrued bonuses plus terminal bonus (if any).

On maturity (attaining age 60): Sum Assured plus accrued bonuses plus terminal bonus (if any).

On Surrender of Policy: Surrender value.

Bonus: From 3rd policy year, we will declare bonuses every year.

Tax benefits: You are entitled to the following tax benefits under Income Tax Act 1961: Your premiums are eligible for deduction u/s 80C up to

Rs.100,000/- every year. Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,000/- every year. Your claim amounts (from death, on maturity or through surrenders) are eligible for tax exemption u/s 10(10D).

Customize your policy to meet your specific needs: We offer you the flexibility to enhance the value of your policy by using the following riders/options: Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the ten diseases covered e.g. Heart Attack, Cancer, etc. Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case of death or disability caused by an accident. Term / Term R&C Riders: Offers additional Sum Assured to match your changing needs. The R&C also allows you the freedom to buy a fresh insurance plan later in your life.

Waiver of Premium (WOP) / Payor Riders: Waives your future premiums in case you suffer total disability. The payor rider waives future premiums on your childs policy in case you suffer total disability.

Unique features in this policy:

Cash Bonuses: You can use your bonuses in the following ways: o Withdraw in cash: bonus will be paid to you by cheque. o Pay your premiums: bonus will be used to pay the next premium. o Increase your Sum Assured: bonus will be used to buy additional layers of insurance cover in the existing policy by buying Paid Up Additions (PUA). o Purchase term insurance: bonus will be used to purchase additional coverage valid for one year. Terminal Illness Benefit: Pays 50% of Sum Assured (subject

to maximum of Rs. 5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that can lead to death in 6 months; you can use this money for your treatment. The balance of the sum assured and the bonuses will be payable to your family on the occurrence of the Insured Event. Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse and we will utilize your cash value to buy you insurance coverage in one of the following ways: o Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.
o

Extended Term Insurance: The same Sum Assured for part of the remaining term of your policy.

In case you do not want either of the above, you can choose to take the cash value by cheque.

GROUP TERM
Group Term Insurance is the mainstay of our employee benefit platform. Here are some of the key features and benefits: Group Term Life - Key features and Benefits

Easy and convenient administration one single master policy for all employees. Group size of at least 25 employees. No upper limit on membership. Policy is valid for one year and can be renewed annually. Uniform or a graded cover can be provided on any basis chosen by your subject to a maximum of three years of salary per employee. In case of death of an employee, due to natural or accidental reasons, the entire sum assured amount is paid to the employer. Additional Protection is available through riders for Critical Illness, Accidental Death Benefits, Disability and Dismemberment. New members can join and out going members can leave the scheme at any time with premium adjustment.

OBJECTIVES OF THE STUDY

Following are the main objectives of the study are a) To know the customers awareness regarding the Life insurance. b) To know the Customer awareness regarding the various life Insurance Companies in the Insurance Sector. c) To know the Customer awareness regarding the various life Insurance Companies in the Insurance Sector. d) To know the Customer awareness regarding the various life Insurance Companies in the Insurance Sector. e) To know the Customer preference towards the private or public Insurance Sector. People comes to know about Max New York Life Insurance Company through Print Media. f) It has clearly comes out that most of the people like to go in far a policy, which gives them. Tax benefits that is why most of the people prefer pension plan. g) The survey also reveals that people have strong faith in the services 7 capabilities of provide sector. h) It has hardly comes out that as most of the business men, have surplus money at their disposal so they prefer to go in Investment.

RESEARCH METHODOLOGY
Introduction and Meaning Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge : market research specifies the information. Required to address these issues: designs the method for collecting information: manage and implements the data collection process analyses the results and communicates the finding and the implications. Research problem is the one which requires a researcher to find out the best solution for the given problem that is to find out the course of action, the action the objectives can be obtained optimally in the context of a given environment. Techniques The problem definition can be said to be the quite essential part of the research process; as it determine precisely. What the managerial problem is and the type of information that the research can generate to help the problem before conducting the fieldwork. It is better to decide upon the method/technique of data collection. Generally, there are two technique of data collection are: 1. Census Technique 2. Sample Technique or Convenient sampling. A census is u complete enumeration of each and every unit of population where us in a sample only n part of the universe is studies and conclusion about the entire universe is dnl\ n about that basis. The census method is costlier and more time Consuming as Compared to sampling method but the result is near representatives.

RESEARCH METHODS
Research is literally everywhere, and knowing about research methods will help us understand how we came to know what we accept as fact. We all know that 4 out of 5 dentists recommend sugarless gum for their patients who chew gum, and that taste-tests show that Burger Kings Croissanwich is preferred 2 to lover McDonalds Egg McMuffin. We also know that proper nutrition is important for childrens development, and that heroin is addictive. The question is: How did we come to know these things? We learned about these things through research. Someone somewhere did a study and found each of the above findings. While most of us accept the value of good nutrition for children and the dangers of heroin, at least some of us (especially Certs Sugarless Mint and Egg McMuffin fans) would quibble with the other two findings. Just how did the researchers do the studies that found those numbers (by the way, get in the habit of questioning how researchers find their, even those you agree with)? Who knows, maybe they did the Croissanwich study at Burger King one morning and asked people which sandwich they preferred. The fact that the participants had already gone to Burger King for breakfast meant that they had at least some tolerance for Croisanwiches. What about the dentists ? What percentage of them recommended candies of any kind ? Which dentists participated in the study and what exactly do they prefer about sugarless gum over sugarless mints ? When we ask questions like these, we are questioning the methods the researchers employed in their studies. Research methods are a variety of techniques that people use when studying a given phenomenon. They are planned, scientific, and value-neutral., What that means is that good research methods dont just happen. Instead, they are deliberately employed in a way that is designed to maximize the Accuracy of the results. Assume, for example, that you want to do a survey to. Asses students level of satisfaction with the parking situation on your campus. Because no one wants to take time to be interviewed, you are forced to start interviewing the people sitting in their cars waiting for parking places. Since theyre bored anyway and have nothing better to do, they agree to answer your questions. Lo and behold, you find that all 50 people you talk to are VERY unhappy about the lack of parking spaces on campus. A better way for you to do your survey would be to randomly select names from a list of all enrolled students (there will be more on random samples in a later section). You could ask them what they think about the parking situation. Because your sample was randomly selected, you would expect their answers to reflect what students as a whole felt about the parking situation. The use of random samples is just one way that researchers try to ensure that the answers they find are accurate.

Common errors made in research

When we do research, we can make many errors. Some of them occur often enough to have names. Here are nine common ones Selective observation Inaccurate observation Selective observation Selective observation happens when our attention is drawn to answers or observations that confirm our pre-existing beliefs. Its a lot like selective hearing (i.e., when people, especially children, hear only the things they want to hear). For example, if I hypothesize that blacks are more likely than whites to speed, I am probably likely to not the blanks who are speeding while paying less attention to speeding whites and blacks who are not speeding. A better approach to this study would be to write down the speed of every car going by and the race of the driver. I could then make tables and compare the percentages of speeding drivers of each race. Chances are that Ill find that race isnt related to ones likelihood of speeding. A few ways you can try to avoid selective observation in your research are to do a literature Review (so youll know which relationship other researchers found), decide your research approach beforehand (e.g., when I decided above to write down the speed of every car rather than just depend on my memory), take thorough notes (to prevent biases from affecting you memory), watch for disconfirm Tory information (such as speeding whites and non-speeding blacks), and consider both sides of your study (i.e., try to argue against you hypothesis; if you cant poke holes in your theory then youre more likely to be on the mark). You could also use time or area sampling. Time or area sampling means that you focus your attention on a smaller part of the action for a given amount of time. Instead of trying to watch the entire crowd at a basketball game, for example, I could look at the rightmost four columns of people for ten minutes, then the next four columns for ten minutes, and so on. By doing this, I would be able to get a picture of what the shole crowd was doing. And, most importantly for selective observation, I would be forced to look at all parts of the crowd at some point time, rather than just those who were doing what I expected them to do. Inaccurate observation Inaccurate observation happens when we misremember or misreport data. How many times have you missed a question on an exam because you incorrectly copied down something from lecture? Thats one form of inaccurate observation. You thought you correctly observed the information when you really hadnt done so. Have you ever misunderstood what someone said, and thought s/he said something that rhymed with his/her actual utterances? Thats another form of inaccurate observation. Your brain

somehow miscoded the information at the processing stage. Inability to remember what you saw is another form. Your brain somehow jumbles or changes the original memory during the recall stage. Observations before actually doing it for real. Practice will make it easier to quickly and accurately record or summarize a given situation, and will show you the parts of the task about which you are less clear. Methodology Adopted The methodology adopted by me studding the objectives was surveying the working segment in the city of Distt. Kapurthala So keeping in view the nature of requirement of study to collect all the relevant information regarding the privatization of the insurance sector direct personal interview method with structured questionnaire method was found to be the best for the collection of primary data. For this a set of questionnaire was designed for the working segment. The survey was conducted. Although this method was difficult and required the researcher to visit and meet the respondents at different places and at different times, but had the advantage of higher accuracy. Secondary data has been collected through the various magazines, books and by surfing on Internet. And the guide in the organization was consulted at many times.

DATA ANALYSIS
Keeping in mind the objectives of the study, the survey was being done and following interpretation were being drawn. 1. Have you heard about Privatization in Life Insurance Sector ? Objective :- To know the awareness of Privatization in insurance sector, this question is asked. As there are a number of private insurance companies, which provide a variety of products and services as compared to, nationalized insurance companies. Awareness of Privatization in Insurance sector Yes No 78% 22%

22%

Yes No
78%

Interpretation The evident from above finding showed that out of 100 respondents, 78 respondents are aware of private companies present in the insurance sector and rest of the respondents i.e., 22 is not aware of private insurance companies.

2.

Have you heard about Pvt. Insurance Co. Max New York Life Insurance Company? Objective :- To know the awareness of customer regarding Max New York Life Insurance Company. 4.2 Awareness of Customer Regarding Max New York Life Insurance Company. Yes No 52% 48%

48% 52%

Yes No

Interpretation The above figure depicts that out of 100 respondents, 52 respondents are aware Max New York Life Insurance Company and rests of the respondents i.e., 48 are not aware of Max New York Life Insurance Company.

3.

From where did you come to know about Max New York Life Insurance Company?

Objective :- To know the media, which helps in promotion of Max New York Life Insurance Company. As we know in the present era media plays an important role in the promotion of companies. Role of Media in the Promotion of Max New York Life Insurance Company Electronic Media Print Media Agents Others
60% 50% 40% 30% 20% 10% 0% Electronic Media Print Media Agents Others 20% 10% 14% 56%

56% 20% 10% 14%

Interpretation According to above data Electronic Media plays a vital role in the promotion of Max New York Life Insurance Company. As 56 of the respondents are aware through Electronic Media, 20 through Agents, 10 through Print Media and 14 through other like friends and relatives. 4. Do you think services provided by Private Sector will be better than Public Sector companies ? Objective :- To know the priority given by customer to the private sector over public sector. As we know that more and more customers are moving towards private sector because of better facilities and services provided by private sector.

Priority of Private sector over the public sector. Yes No 68% 32%

32%
Yes No

68%

Interpretation The above figure depicts that 68 of the total respondents agree that private sector was providing better services as compared to the public sector.

5.

Do you have Insurance Policy ? Objective :- To know the number of persons who presently have life insurance policy. As most of the persons are very much concerned about their family and life so cover the risk by an insurance policy. Yes 38%

No

62%

38%

Yes No

62%

Interpretation The above evident shows that as most of 62 of the total respondents have insurance policy to cover the risk of the life and tax. This shows that most peoples are interested in buying insurance policy.

6.

With which company do you have Insurance Policy ? Objective :- To known the number of customers dealing with different insurance companies. As the there are a number of companies providing different products. ICICI HDFC LIC MNYL 18% 06% 62% 04%

70% 60% 50% 40% 30% 20% 10% 0% ICICI HDFC 18% 6%

62%

4% LIC MNLY

Interpretation The above evident shows that out of the total respondents 62 dealing with LIC, which is a public sector insurance company, 18 respondents were dealing with ICICI Pru and HDFC Std. Life respectively, 03 respondents are dealing with Reliance Insurance company.

7.

What according to you are the motives of buying Life Insurance Policy? Objective :- To know the motive of buying insurance policy. There is always a reason to buy life insurance policy as it protects the insurer from different aspects even after death. Tax Lives Cover Liquidity Secure Investment 42% 30% 06% 22%

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

42%

30% 22%

6%

Tax

Lives Cover

Liquidity

Secure Investment

Interpretation As the above figure showed that most of the respondents buy insurance policy for the purpose of saving tax, 42 respondents are in favor of this, 22 respondents gave preference to secure investment, 30 and 06 are with life cover and liquidity respectively. 8. Do you have any plan to buy Insurance Policy in near future ?

Objective :- To know the customer preference to buy insurance policy in near future. 4.8 Preference to buy insurance policy in future Yes No Can't Say 62% 33% 18%

18%

Yes
33% 62%

No Can't Say

Interpretation As the above figure depicts that mostly respondents are interested to buy insurance policy in the future. 40 of the total respondents are in favour of this and rest 42 respondents want any insurance.

9.

If you have any plan to buy an Insurance Policy, Which policy would you prefect? Objective: - To knows the customer preference regarding various insurance plans provided by the insurance companies. Whole Life Participating Unit Link Investment Plans Children's Endowment Participating Insurance Group Gratuity 24% 52% 10% 14%

60% 52% 50% 40% 30% 20% 10% 0% Whole Life Participating Unit Link Investment Plans Children's Endowment Participating Insurance Group Gratuity 10%

24% 14%

Interpretation As the above evident shows that as most as 32 of the total respondents prefer to invest in endowment plan, 26 prefer to have child plan, 24 prefer to Spl. Endowment Plan and rest 18 cash flow plan.

10.

If you are not taking any insurance policy, please tell us the reasons why? Objective: - To know the reasons not to buy any insurance plan by the respondents. Reasons not to buy any insurance plan We could not afford We don't see any benefit with the system We don't want insurance 26% 24% 15%

We don't understand how system works

40% 35% 30% 26% 25% 20% 15% 10% 5% 0% We could not afford We don't see any benefit with the system We don't want insurance 15% 24%

35%

35%

We don't understand how system works

Interpretation As the evident shows that as most as 35 of the total respondents dont understand the working of the insurance system and nearly 24 of the respondents dont see any benefit with the system, 15 and 26 of the respondents dont want insurance and could not afford respectively.

FINDINGS OF THE STUDY

a) Life insurance has becomes generic now. People believe in Life Insurance Company only and therefore, everybody wants to go in for a policy with LIC. It will take a lot of time, to private companies to win the confidence of the people. As far as future decision making about the policy is concerned most of the policy would go in for saving plan.

b)

c)

It is a service class, which has maximum number of LIC and private sector policies. As far as future decision-making is concerned most of the service class prefers to protection plan. LIC is the oldest player in the Insurance market, so people are more aware of i.e., as compared to new players. This clearly comes out of the survey conducted that most of the people comes to know about Max New York Life Insurance Company through Electronic Media. It has clearly comes out that most of the people like to go in for a policy, which gives them tax.

d) e) f)

LIMITATIONS OF STUDY
All efforts have been made to make study a complete and comprehensive survey of the customer perception. Although all efforts have been made so that the study present a true picture of the customers perception. The limitations of the study are :1) 2) Time Factor :Time available was very short. Fake Informations :The informations provided by the customers may be fake, for example customer of Max New York Life Insurance Company may be shown interest in ICICI Prudential. Limited Survey :As the project was limited to Ludhiana only, therefore overall picture cant be presented. Randomly Survey :The customers of LIC, ICICI and Max New York Life Insurance Company were randomly selected without any constrains. Area :Area of study chosen was not large.

3)

4)

5)

RECOMMENDATIONS To introduce innovative products offering a right mix of flexibility / risk / return/ depending, which will suit the requirement of the customers and should target specific niches, which are poorly served or not served at all. People have a high priority to securities of their investment, therefore the promotion schemes should concentrate, on educating the customer that private sector players have a strong financial backing like that of LIC. Number of formalities should reduce, as customer feels irritated with lots of formalities. The company should also be deal with rural areas and with cities not having authorized pin code. It is seen that till today a large portion of population is unaware of various Insurance plans, these include educated professionals also. Therefore, the Private sector insurance companies should focus on improving awareness and the increase the understanding about insurance plans thus increasing their scope of sale. Life Insurance Company should lay more stress on advertisements, both in print as well as in other media. People of Reliance Max New York Life Insurance Company should approach people who belong to age group if 25-35 and 35-45 also people who belong to serviceclass, as these are the only once who are interested in purchase a life insurance policy in future.

CONCLUSION
Max New York Life Insurance Company is one of the largest life insurance Companies in the world with Insurance and Investment funds exceeding Rs. 11,00,000 Crore Max New York Life Insurance Company is the challenge against the other Insurance Companies in the 21st century with the emerging hope and aspiration. Max New York Life Insurance Company is a bless to the maintain which has awakened many new hopes and aspiration for human kind a vision of a new, just equitable and fair global order governed by a time tested value system based on a noble human passion of law, compassion tolerance and mutual understanding. Globalization has opened new formalities of technology knowledge communication and information Max New York Life Insurance Company is a gift of globalization for the maintain development of these formalities there before is a daunting challenge i.e. the utilization of these facilities to create a brave new worlds in which a qualitative and a clear change between yesterdays and hormones can easily perceived. I have done a detailed the comparative study of Max New York Life Insurance Company with LIC as well as other private companies and concluded that most of the people proffered to deal with nationalization insurance companies. About the awareness regarding the products offered regarding by Max New York Life Insurance Company, I conduced that most of the people are but they still needs more publicity among the citizens of the city. Max New York Life Insurance Company has set all the strategies and mission after proper vision and is achieving the largest by working in co-operative and co-ordinate manner and giving the people full services and facilities and making easy. So I would like to conducted by saying that Max New York Life Insurance Company is a wonderful gift given to the mankind in the new are for people development and maintenance of the world as well as India.

BIBLIOGRAPHY
Books Mishra, M.N. Insurance Principles and Practices (S. Chand & Co., Delhi, 1999) Kalyani Publishers, Marketing Management (CN Santaki) Kothari, C.R., Research Methodology: Methods & techniques (Wishwa Publication, Delhi, 1990. Magazines & Journal Outlook Insurance Special, June 12, 2005 The Chartered Accountant Journal, June 16, 2005. Web Sites www.maxnewyorklifeinsurance.com www.bimaonline.com www.google.com www.yahoosearch.com

QUESTIONNAIRE
Dear Sir/Madam I am student of MBA at G.G.N.I.V.S CIVIL LINES LUDHIANA doing a project Consumers awareness regarding Max New York Life Insurance Company. Please co-operate to fill this questionnaire. 1. Have you heard about privatization in Life Insurance sector ? a) Yes 2. b) No

Have you heard about Private Insurance Company Max New York Life Insurance

Company? a) Yes 3. b) No

From where did you come to know about Max New York Life Insurance Company? a) Electronic Media c) Agents b) Print Media d) Others

4.

Do you think services provided by Private sector will be better than Public Sector companies ? a) Yes b) No

If yes, Remarks___________________________________________ If no, Why_______________________________________________

5.

Do you have Insurance Policy ? a) Yes b) No

6.

With which company do you have Insurance Policy ? _______________________________________________________________ _______________________________________________________________

7.

What according to you are motives of buying Life Insurance Policy ? a) Tax Saving c) Liquidity b) Life cover d) Secure Investment

8.

Do you have any plan to buy Insurance Policy in near future ? a) Yes b) No

9.

If you have any plan to buy an Insurance Policy, which Policy would you prefer ? a) Saving Plan c) Pension Plan b) Protection Plan d) Childrens Plan

10.

If you are not taking any Insurance Policy, please tell us the reasons why ? a) We could not afford b) We dont see any benefit with the system c) We dont want insurance d) We dont understand how system works

BACKGROUND DATA 1. 2. 3. 4. Name__________________________ Sex : Age : Education : a) Under Graduate 5. Occupation: a) Service c) Business 6. Income: a) Less than Rs. 50,000 b) Rs. 50,000 to Rs. 1,50,000 c) Rs. 1,50,000 to 3,00,000 d) Rs. 3,00,000 & above 7. Address ________________________________________________ ________________________________________________ ________________________________________________ 8. Phone No. ________________________________________________ b) Profession d) Others b) Graduate a) Male b) Female

A SUMMER TRAINING PROJECT REPORT ON

ABOUT

SUBMITTED TO G.G.N.I.V.S CIVIL LINES LUDHIANA (In partial fulfillment of the Degree requirements towards the Masters in Business Administration)

PROJECT GUIDE:

SUBMITTED BY: Komal Sharma Roll No.584580616325

ACKNOWLEDGEMENT
I wish to express my perform gratitude to the 'almighty God' with whose grace and blessing, we have been able to completed the project. It gives us immense pleasure to express my sincere wholehearted sense of gratitude to our esteemed guide MR. Himanshu, Sales Manager of Max New York Life Insurance Company in Ludhiana branch for their appreciated guidance, help encouraging attitude and supervision throughout my study. I am very thankful to the Course Leader Mr. S. S. Grewal who encouraged me and permitted throughout my study. I am very thankful to management of Max New York Life Insurance Company who gave me valuable time. They provide us all the support and offered utmost co-operations in making relevant material available. I am extremely grateful to my parents for time-to-time guidance and for providing me the necessary resources.

PREFACE
MBA is a step stone to management careers. In orders to achieve practical, positive and concrete result the classroom learning needs to be effective to the situation existing outside the classroom. This is practically true of management to develop healthy managerial and administrative skill in a potential manager, it is necessary that theoretical knowledge must be supplemented wit exposure of real environment actually it is the life of management. It is in the practical training that the measuring of management itself is realized. This project is aimed by customer awareness derives towards Life Insurance Services. It has a great learning process for both of us that we acknowledge the fact that is not a work of excellence by scholar but if it is a student attempt to have the real things in today business. Still we dare day that it is an honesty attempt and through guidance and suggestion, we are able to accomplish.

CONTENTS
Introduction What is Insurance Introduction to Insurance History of Insurance Classification of Insurance What is Life Insurance Insurance Regulatory & Development Authority Benefits of Insurance Foreign Companies in Insurance Company Profile CHAPTER 3 Objective of Study CHAPTER 4 Research Methodology CHAPTER - 5 Data Analysis and Interpretation CHAPTER 6 Findings of the Study CHAPTER 7 Limitations of the Study CHAPTER - 8 Recommendations CHAPTER -9 Conclusion Bibliography Questionnaire 34-65 66 67-71 72-81 82 83 84 85 87