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Acknowledgement

“Success is not a destination, but a journey”. While I reach towards the


end of this journey, I realized I may not have come this far without the
guidance, help and support of people who acted as guides, friends and
torch bearers along the way.

I wish to express my profound thanks to all those who helped in making


this Summer Training report on “Max New York Life Insurance Co. Ltd.
To study the recruitment process of financial advisors at MNYL. Much
needed moral support and encouragement is provided by all the Staff
members of MNYL (Head Office, Gomti Nagar). I am especially grateful
to Naveen Srivastava, Associate Partner and other staff
members for their time to time much needed valuable guidance in
preparation of this report.

I would like to thank Mr. Sunny Agouthwal, Associate Sales Manager for
giving Practical tips and colour to my quest.
TABLE OF CONTENTS

SERIAL TOPIC
NO.
1. Introduction: RECRUITMENT
2. RECRUITMENT: Process and Types
3. LIFE INSURANCE: Introduction
4. HISTORY OF INSURANCE
5. OTHER INSURANCE COMPANIES
6. IRDA (Mission, Expectations and Functions)
7. MNYL: About the Company
8. RECRUITMENT at MNYL
9. SCREENING and SELECTION of AGENTS
10. FUNCTIONS OF AGENTS
11. RESEARCH METHODOLOGY
12. RECRUITMENT FUNNEL
13. TELEPHONIC SCRIPT
14. SURVEY ANALYSIS
15. SWOT ANALYSIS
16. ANNEXURES

Definition of recruitment:
According to Edwin B. Flippo, “Recruitment is the process of searching
the candidates for employment and stimulating them to apply for jobs in
the organization”. Recruitment is the activity that links the employers and
the job seekers. A few definitions of recruitment are:
A process of finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their
applications are submitted. The result is a pool of applications from which
new employees are selected.
Recruitment of candidates is the function preceding the selection, which
helps create a pool of prospective employees for the organization so that
the management can select the right candidate for the right job from this
pool. The main objective of the recruitment process is to expedite the
selection process.

Recruitment is a continuous process whereby the firm attempts to develop


a pool of qualified applicants for the future human resources needs even
though specific vacancies do not exist. Usually, the recruitment process
starts when a manger initiates an employee requisition for a specific
vacancy or an anticipated vacancy.
Recruitment of candidates is the function preceding the selection, which
helps create a pool of prospective employees for the organization so that
the management can select the right candidate for the right job from
this pool. The main objective of the recruitment process is to expedite
the selection process.

Recruitment is a continuous process whereby the firm attempts to


develop a pool of qualified applicants for the future human resources
needs even though specific vacancies do not exist. Usually, the
recruitment process starts when a manger initiates an employee
requisition for a specific vacancy or an anticipated vacancy.

GENERAL RECURITMENT PROCESS:

TYPES OF
RECRUITMENT:
LIFE INSURANCE
Life insurance is a form of 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 insured's named beneficiary so long as the insured's
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.

Insurance is basically a sharing device. The losses to assets resulting from natural
calamities like fire, flood, earthquake, accidents etc. are met out of the common pool
contributed by the large no of person who are exposed to similar risks. This contribution
of many is used to pay the losses suffered by the unfortunate few.
However the basic principle is that loss should occur as a result of natural calamities or
unexpected events which are beyond the human control

It is natural to think of insurance of physical assets such as motor car insurance or fire
insurance but often we forget that the creator of all these assets is the human being whose
efforts have gone a long way in building up the assets. In that sense, human life is a unique
income generating asset. Unlike the physical assets, which decrease in value with passage
of time, the individual becomes more experienced and more matured as he advances in
age. This raises 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 premature death. The individual himself also needs financial
security for the old age or on his becoming permanently disabled

Need for life insurance

Originally policies were to provide for short periods of time, covering temporary risk
situations, such as sea voyages. As life insurance became more established, it was realized
what a useful tool it was for a number of situations, including:

a) Temporary needs/threats:
the original purpose of life insurance remains an important element, anamely
providing for replacement of income on death. It provides peace of mind to the
policyholder. In the event of untimely death of the main earner in the family, the
policy will pay out the guaranteed sum assured, which is likely to be significantly
more than the total premiums paid.

b) Regular savings:
once an insurance contract has been entered into, the insured has an obligation to
continue paying premiums, until the end of the term of the policy, otherwise the
policy will lapse. In other words, it becomes compulsory for the insured to save
regularly and spend wisely.

c) Investment:
put simply, the building up of savings while safeguarding it from the ravages of
inflation. Changing cultural and social environment. One can buy a suitable
insurance policy, which will provide periodical payments in one’s old age.
Generally identified as the problem of living too long.
Research Methodology
The recruitment of Agent Advisor at MAX NEW YORK LIFE starts with the basic step of
NAME GATHERING which is done through the following sources which in further
studies become my methods which have helped a lot in my research work. I have used
personal observation, data collection, telecalling etc. as my methods for name gathering
including the following sources too.

Sources of Name Gathering

1. Controllable Sources

• Centers of Influence (COI)

• Nominators

• Magic Question
• Agent Advisor Referrals

• Personal Observation

• Policyholders

• Friends and Family

2. Uncontrollable Sources

• Newspaper advertising

• Agent Advisor marketing Tools

• Direct mail and pre-approach letters

• Employment agencies

• Seminars

• Campus recruiting

• HR Managers

• Job fairs

• The Internet
ABOUT THE
COMPANY:MNYL

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.

 Present in 365 cities with 575 offices across India


 Has sum assured of more than Rs. 93,500
crores
 Has sold more than 33 lakh policies
 Has paid up capital of Rs. 1,782 crores
 Has asset under management of Rs. 4,500
crores
 Has employee strength of more than 16,000
 Max New York Life was the first Insurance company in India to get
ISO 9001 Certificate. Recently, we have received CII-Exim Business
Excellence Award which clearly recognizes MNYL following best in
class processes and standards.

World has recognized our excellence for product innovation through


Golden Peacock Award, Indo American award for best partnership, Amity
HR Excellence award for our caring policies, and Business Today has
ranked MNYL 7th best company to work for; it is the only insurance
company featuring in the list of top 20 places to work for in India.

WHY MAX NEW YORK LIFE INSURANCE??????? 20


POINTS THAT MAKES THE COMPANY STAND APART
FROM OTHER INSURANCE COMPANIES:
1. Max New York Life is the first life insurance
company in India to be ISO 9001:2000 certified.
2.Listed on NSE and BSE of India with around
26,000 shareholders.
3. Max New York Life has been ranked as the 7th in
the Business Today –Mercer’s Best companies to
work in the India survey for the year 2008.
4.MNYL is in the top 25 Percentile of Gallup Global
database.
5.We have call centres in ten
languages.
6.We send premium receipt to
the customers mailing address.
7.We bring to you “no wait hassel free” SMS2Me
service – a facility that lets you keep track of
your policy details from just about anywhere.
8.In the year 2008 MNYL was awarded “ G olden
Peacock Award “ for innovation.
9.Outlook money recognized MNYL as one of the
best life insurance companies.
10. MNYL ranked 5th Most Respected Company
among the private life insurance companies.
11. Outlook Money recognizes MNYL as the best
in the year 2003.
12. We have the Best Training oriented
organisation.
13. All our agents undergo 50 hours training
provided by the IRDA.
14. We have a large network of more than
58,500 agents ensuring families in India.
15. We are No 1 in the first three categories in
terms of performance over the 2 years period .
Our Growth Super fund , which falls in the Fast
funds category , is still not two years old.
16. We have emerged Numero Uno on All the
funds over a Medium term horizon.
17. Received the A mity Corporate Excellence
Award-2007
18. Among the top 3 in the Asia Life Insurance
Company of the year 2007 institued by Asia
Insurance Review.
19. First life insurance company to be awarded
CII- EXIM B ank Commendation Certificate for
Strong Commitment to excel -2008.

History of insurance
SECTOR
The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market
again.

Tracing the developments in the Indian insurance sector reveals the 360-
degree turn witnessed over a period of almost 190 years.

The business of life insurance in India in its existing form started in India
in the year 1818 with the establishment of the Oriental Life Insurance
Company in Calcutta.

Some of the milestones in life


insurance:

• 1912 - The Indian Life Assurance Companies Act enacted as the first
statute to regulate the life insurance business.
• 1928 - The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non-
life insurance businesses.
• 1938 - Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interests of the
insuring public.
• 1956 - 245 Indian and foreign insurers and provident societies taken
over by the central government and nationalized. LIC formed by an
Act of Parliament, viz. LIC Act, 1956, 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 milestones in general insurance:

• 1907 - The Indian Mercantile Insurance Ltd.


set up, the first company to transact all classes
of general insurance business.
• 1957 - General Insurance Council, a wing of the Insurance
Association of India, frames a code of conduct for ensuring fair
conduct and sound business practices.
• 1968 - The Insurance Act amended to regulate investments and set
minimum solvency margins and the Tariff Advisory Committee set
up1972 - The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect from
1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the
National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and the United
India Insurance Company Ltd. GIC incorporated as a company.

Some prominent players in the


field of life insurance:
• HDFC Standard Life Insurance Company Ltd.

• Max New York Life Insurance Co. Ltd.

• ICICI Prudential Life Insurance Company Ltd.

• Kotak Mahindra Old Mutual Life Insurance Limited

• Birla Sun Life Insurance Company Ltd.

• Tata AIG Life Insurance Company Ltd.

• SBI Life Insurance Company Limited .

• ING Vysya Life Insurance Company Private Limited

• Bajaj Allianz Life Insurance Company Limited

• Metlife India Insurance Company Ltd.

• Future Generali India Life Insurance Company Limited

• IDBI Fortis Life Insurance Company Ltd.

• Reliance Life Insurance Company Limited.

• Aviva Life Insurance Co. India Pvt. Ltd.

• Sahara India Insurance Company Ltd.

• Shriram Life Insurance Company Ltd.


• Bharti AXA Life Insurance Company Ltd.

• Future Generali India Life Insurance Company Limited

• IDBI Fortis Life Insurance Company Ltd.

• Canara HSBC Oriental Bank of Commerce Life Insurance Company


Ltd.

Aegon Religare Life Insurance Company

some of the prominent players in the feild of


general insurance:

• Royal Sundaram Alliance Insurance Company Limited

• Reliance General Insurance Company Limited.

• IFFCO Tokio General Insurance Co. Ltd

• TATA AIG General Insurance Company Ltd.

• Bajaj Allianz General Insurance Company


Limited

• ICICI Lombard General Insurance


Company Limited.

• Apollo DKV Insurance Company Limited


• Future Generali India Insurance Company Limited

• Universal Sompo General Insurance Company Ltd.

• Cholamandalam General Insurance Company Ltd.

• Export Credit Guarantee Corporation Ltd.

• HDFC-Chubb General Insurance Co. Ltd.

• Bharti Axa General Insurance Company Ltd.

• Raheja QBE General Insurance Co. Ltd


• Shriram General Insurance Co. Ltd.
Insurance Regulatory and Development Authority
(IRDA):
The Insurance Regulatory and Development
Authority (IRDA)[1] is a national agency of the
Government of India, based in Hyderabad. It was
formed by an act of Indian Parliament known as IRDA
Act 1999, which was amended in 2002 to incorporate
some emerging requirements. Mission of IRDA as stated
in the act is "to protect the interests of the
policyholders, to regulate, promote and ensure orderly
growth of the insurance industry and for matters
connected therewith or incidental thereto.

Mission of IRDA
To protect the interests of the policyholders, to regulate, promote and
ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto

INSURANCE REGULATORY & DEVELOPMENT AUTHORITY (IRDA) ACT,


1999.

 Under this Act an authority called IRDA has been set up.
 This is a corporate body established for the purpose and objects as set out in the
explanation to the title.
 The Authority replaces “Controller” under Insurance Act 1938.
 The first schedule amends Insurance Act 1938.

 It states that if Authority is superseded by Central Government, the Controller of


Insurance may be appointed till such time as “Authority” is reconstituted.
CONSTITUTION OF IRDA

 The Insurance Regulatory and Development Authority consists of the following


members:
1. Chairperson.
2. Less than five whole time members.
3. Less than four part time members.

 Members should be persons of Ability, Integrity & Standing.


 They should have experience in the fields of
1. Life Insurance
2. General Insurance
3. Actuarial Science
4. Finance
5. Economics
6. Law
7. Accountancy
8. Administration

• Chairperson, members, officers and other employees of Authority shall be public


servants.
THE FOLLOWING ARE THE EXPECTATIONS FROM
IRDA:
The law of India has following expectations from IRDA

• To protect the interest of and secure fair treatment to policyholders

• To bring about speedy and orderly growth of


the insurance industry (including annuity and
superannuation payments), for the benefit of the common man, and
to provide long term funds for accelerating growth of the economy;

• To set, promote, monitor and enforce high standards of integrity,


financial soundness, fair dealing and competence of those it regulates;

• To ensure that insurance customers receive precise, clear and correct


information about products and services and make them aware of
their responsibilities and duties in this regard;

• . To ensure speedy settlement of genuine claims, to prevent insurance


frauds and other malpractices and put in place effective grievance
redressal machinery;
• 6. To promote fairness, transparency and orderly conduct in financial
markets dealing with insurance and build a reliable management
information system to enforce high standards of financial soundness
amongst market players;

• To take action where such standards are


inadequate or ineffectively enforced;

RECURITMENT PROCESS FOLLOWED AT MAX NEW


YORK LIFE:
Recruitment of quality advisors & focusing on quality personnel (as per
MNYL recommendations). Observation of processes at MNYL & also
studying in depth the various practices of the organization.
The recruitment processes includes various stages starting from the initial
stage i.e. NAME GATHERING which ends up at the final interview &
hence the candidate is selected for the training at the organization.
The training is imparted by the training head of the organization that
takes care of all the queries of the candidate & this training is given to
prepare the candidate of the IRDA (Insurance Regulatory Development
Authority).
The training period extends up to 15days & after that there is an
online exam of IRDA, clearing that exam the candidate becomes a
Recruitment Advisor or agent at the organization.

This is the basic schedule which is being followed by the

1. Name gathering: - It’s a continuous process. (on going)

1. Name gathering: - It’s a continuous process. (on going)

2. Call people to office: - The person’s who turn up in the organization


for a formal meeting with the recruitment head at MNYL.

3. Initial screening: - This is next step to be followed as per the pre-


defined schedule of MNYL.

4. Career seminar: - This is a PPT (power point presentation) which is


given to the personnel those who have been selected for the next level
after the initial screening.
5. P200: - This is a detailed form known as the PROJECT 200.
According to this the candidate has to fill in the form which includes
the filling of 200 contacts which the candidate has interacted with or
knows well (as such relatives, friends or any known personnel).

6. Evaluate: - On the filling of the P200 the candidate is further


evaluated.

7.Career interview: - This is an interview with the OFFICE HEAD & also
the last stage of the schedule which to be followed at MAX

RECURITMENT OF FINANCIAL ADVISORS:


The Insurance Regulatory and Development Authority, IRDA for short,

has lain down that those who wish to become insurance agents will be

given licenses only after they complete a course of study and pass an

examination prescribed by it. In 2000, when the IRDA made the relevant

regulations, the course of study was to last 100 hours. The course IC 33

was prepared keeping in mind that requirement. In 2007, the period of

compulsory study has been reduced to 50 hours.


The institute wishes all those who complete this course and get their

licenses, very successful careers as insurance agents.

BASIC CRITERIA:

According to IRDA to join any insurance company or to become a part of

agent’s family, you must meet essential criteria.

 Age – 18 years and above

 Education – 12th Pass

DEFINITION OF FINANCIAL ADVISORS:

According to Section 182 of the Indian Contracts Act, an ‘agent’ is a

person employed to do any act for another or to represent another in

dealing with a third person. In the insurance industry, the term ‘agent’ is

ordinarily applied to a person engaged by insurer to procure new business.


The Insurance Act defines an insurance agent as one who is licensed under

Section 42 of that Act and is paid by way of commission or otherwise, in

consideration of his soliciting or procuring insurance business, including

business relating to the continuance, renewal or revival of policies of

insurance. He is for all purposes, an authorized salesman for insurance

and needs a license.

As stated above, an agent is one who acts on behalf of another. The

‘another’ on whose behalf the agent acts, is called the principal. The

insurance company is the principal in this case. The lawyer is the agent of

the client, when he argues the case in court. An ambassador is an agent of

his country. The agents represent the principal and acts on his behalf.

Some insurers designate their agents as ‘advisors’, ‘consultants’ etc., as if

they are independent persons. It is the nature of the function, which

determines the relationship of agency, not the designation. An independent

advisor or consultant would not be appointed by and insurance company.

He would be knowledgeable enough as a person to be approached for

advice or consultation. Some insurance agents may acquire that status. All

insurance agents should strive to attain that status. In the layman language

we can say an insurance agent is a person who takes up agency from the
insurance company to sell their policy on a commission basis. He acts as an

intermediary between the insurance company and the policy holder. But

before doing so, he has to undergo training and get a certificate of

proficiency from the insurance company.

PROCEDURE OF BECOMING OF FINANCIAL


ADVISORS:
The Insurance Act, 1938 lays down that an insurance agent must possess a

license under Section 42 of that Act. The license is to be issued by the

IRDA. The IRDA has authorized designated persons, in each insurance

company, to issue the licenses on behalf of the IRDA. The fee for the

license is Rs. 250 for individual as well as corporate agents. A license is

granted for 3 years. It may be renewed after 3 years. The fee for the

certification of the specified person is Rs. 500. This is also valid for 3 years.

A license issued by the IRDA may be to act as an agent for a life insurer,

for a general insurer or as a composite insurance agent working for a life

insurer as well as a general insurer. No agent is allowed to work for more

than one life insurer or more than one general insurer.


The qualifications necessary before a license can be given are that the

(individual or corporate insurance executive) must

 Not be a minor

 Have passed at least the 12th standard or equivalent examination, if he

is to be appointed in a place with population of 5000 or more, or 10th

standard otherwise

 Have undergone practical training for at least 100 hours in life or

general insurance business, as the case may be, from an institution,

approved and notified by the IRDA. In the case of a person wanting

to become a composite insurance agent, the applicant should have

completed at least 150 hours practical training in life and general

insurance business, which may be spread over six to eight weeks.

 Have passed the pre-recruitment examination conducted by the

Insurance

In 2007, the IRDA has reduced the requirement of training hours of 50 to


100 hours.

Functions of financial advisors:


The agent’s main function is to solicit and procure life insurance business

for the insurer, which has appointed him for that purpose. At the same

time, he is trusted by the prospect to advise him suitably, keeping his

circumstances and needs in mind. He is thus, in the unique role of a person

trusted by both parties to the transaction. His functions would require him

to

 Understand the prospect’s needs and persuade him to buy a plan

of life insurance that suits his interests best

 Complete the formalities (paper work, medical examination)

necessary to get the policy expeditiously

 Keep in touch to ensure that changing circumstances are reflected

in the arrangements relating to premium payments, nomination

and other necessary alternations

 Facilitate quick settlement of claims

 Be totally honest with both the prospect and the insurer.


The Regulations framed by the IRDA lays down a code of conduct which

incorporate some of these concepts. The code says interalia that the agent

shall

a. Identify himself and the insurance company of which he is an

agent

b. Disclose the license to the prospect on demand

c. Explain all available options to the prospect

d. Recommend a suitable plan taking into account the needs of the

prospect

e. Disclose the scales of commission, if asked for by the prospect

f. Explain the nature and importance of the information required

in the proposal form

g. Impress upon the prospect the need to disclose all information

h. Make all enquiries about the prospect

i. Inform the insurer about any material facts, including habits,

that could adversely affect the underwriting decision


j. Convey to the prospect about the acceptance or rejection of the

proposal

k. Render necessary assistance to policyholders or claimants or

beneficiaries in complying with requirements asked for by the

insurer

l. Advise policyholders to effect nomination

m.Make every attempt to ensure remittance of premiums by the

policyholders within the stipulated time, by giving notice orally

and in writing

n. Not to induce prospects to submit wrong information

o. Not to interfere with the proposals introduced by other

insurance agents

p. Not demand or receive from beneficiary, share of proceeds

under an insurance contract

q. Not cause the termination of an existing policy with a view to

effect a new proposal


Responsibilities of financial advisors/agents:

An agent, individual or corporate, is the main component of the

distribution channel for the life insurance business. He would be required

to solicit and procure new life insurance business, in a manner that is

consistent with the interests of the policyholders and of the insurance

company. For this purpose, he would have to do the following.

 Contact prospects for life insurance, study their needs and persuade

them to buy.

 Complete all related formalities, including filling up proposal forms,

collecting premium, arranging medical examination, collecting proofs

(of age or income), reports and other information required by the

underwriter.

After having sold a new insurance policy, the agent has to ensure that the

policy continues, without a lapse, till it becomes a claim. The conservation

of the policy is in the interests of all the three persons concerned, the

insurer, the policyholder and the agent. For this purpose, he has to
 Keep in touch with the policyholder to make sure that renewal

premiums are paid in time.

 Ensure that nominations are made or changed according to changing

circumstances

 Assist in settlement of the claim, by helping the claimants to complete

the necessary formalities and requirements.

In order that he may perform all these tasks well, the agent has to be

familiar with

 The benefits under the various plans of insurance offered by his insurer.

 The office procedures for various matters including the forms and

documents. The forms and procedures will vary between one insurer

and another.

RECURITMENT FUNNEL:
This is the recruitment funnel which shows the detailed process of the
recruitment process which is being practiced at MAX NEW YORK LIFE.
This shows the filtering process as such which depicts that in the initial
stage 120 names are gathered & how they are filtered through various
stages hence contracting 4 agents.
SURVEY ANALYSIS:
In order to understand the perception of customers, market position of

MAX NEW YORK LIFE INSURANCE.CO.LTD and general awareness

of Insurance, a survey was conducted. The sample size for the survey was

100 individuals. The respondents

were given a questionnaire (See Appendices) and asked, to answer the

questions. Some of the respondents were having policy of

MAX NEW YORK LIFE INSURANCE.CO.LTD and some of don’t have.

On the basis of 100 samples, survey, conducted and analysis done.


From the above pie chart it is clear that customers mostly preferred to

invest their money at the Beginning of the year to yield the benefits for the

whole year.

On the basis of survey (above chart), the result come out that customers

invest at the beginning of the year.

To judge the awareness of customers towards life insurance and the above

pie chart that 95% of the customers are aware of life insurance and only

5% are unaware. The 5% of customers who have answered that they are

unaware of life insurance could possibly be an error of lack of interest in

taking up the survey.


During the survey I came to know that 76% of the
customers have the knowledge of the different
investments and 24% of the customers are not aware
of the different investments that are available .The
reason for the above outcome is the fear of the
investments and due to the lack of the proper
knowledge .
On the basis of survey (above chart), the result come out that customers
invest in Insurance sector mostly. However it is well known that share
markets hold the first place in investment as every customer is interested
in return on investments. But keeping in mind the present economic
conditions and the recession the perception of the customers have changed
towards insurance for tax benefits and safe investments.

To judge the perception of customers, that, in which Insurance company they like to invest

their money, a question is asked as to which Insurance Company they prefer most and it is

SBI Life (23%) customers invest.

It is cleared from above pie chart that customers invest in

23% in SBI Life

20% in Max New York

18% in ICICI Prudential


8% in Bajaj Allianz

11% HDFC Standard Life

19% in LIC

1% in AVIVA Life Insurance

To understand the medium through which customers are aware about

insurance companies a question was asked and the following results were

obtained.

54% through commercial advertisements

33% through Newspaper

9% through Magazines

4% through hoardings
In Lucknow, most of the customers are belonging to middle class family, so

they can pay premium, how much they are earning (monthly, yearly) and

most of customers also belonging to upper middle class family.

69% of customers like to pay premium in between Rs. 10,000 – Rs.15, 000

because they can pay.

13% 0f customers say that they can pay premium in between Rs. 15,000 –

Rs. 30,000.

12% of customers can pay in between Rs.30, 000 – Rs. 50,000.

3% of customers can pay in between Rs.50, 000 – Rs. 1, 00,000.

3% individual can pay premium above Rs. 1, 00,000.


Risk cover is given on the basis of how much premium customers are

paying.

From above pie chart it is clear that, customers’ wants risk cover in the

form of money as

53% of customers want Rs. 2, 00,000

12% of customers want Rs. 3, 00,000

14% of customers want Rs. 4, 00,000

9% of customers want Rs. 5, 00,000

12% of customers want above Rs. 5, 00,000


Highest demand of Insurance return is that, customers want Return on

Investments i.e. 60%, 20% of customers want risk cover, Safety is 13%

and 7% is coverage from future perceived losses.

Above pie chart reflect that about Rider benefit. Rider benefit includes:

1) Accident death benefit


2) Waiver of premium

3) Critical illness

4) Hospital cash benefit

5) Other (theft, damage of property, etc.)

12% of customers want benefit from Insurance in critical illness,

51% wants benefit from accident death,

4% of customers want waiver of premium [to refrain from enforcing (a


rule or penalty, etc)],

27% of customers want hospital cash benefit,

6% of customers want other (theft, damage of property, etc).


66% customers are strongly satisfied,

31% customers are satisfied with the service provided by the company

because they are not getting policy bond timely therefore they are switch

over to Insurance Company.


Swot analysis:
Strengths

• Untapped population.
• Large network and customer base of banks.
• Existing resources of insurance companies.

Weaknesses

• Information technology not at par with other sectors.


• Middle segment overburdened with inflationary pressure.
• Inflexibility of products. Not tailor made to suit the needs of
customers.

Opportunities

• Banks' data base in India is enormous.


• Efficient IT structure of banks.
• Appropriate atmosphere and political consensus.

Threats

• Channel conflict
• Banks venturing into insurance sector.
• Change in preferred models to broker model.
Annexure:
The telephonic script which was used by at MAX
NEWYORK LIFE INSURANCE to recruit the financial
advisors along with certain objections put forward
by the prospective:

Hello, MR X, you may not know me, my name is


SAURABHSRIVASTAVA. I am working as an intern in Max
Newyork life Insurance company here in Lucknow city . I would
like to schedule a time to spend 15-20 minutes with you. We
may be in a position to help each other, and I would to take
your advice.

EXPECTED OBJECTIONS:
What is it regarding ?
“As I told you that I am in charge of recruitment for the
Lucknow city. My primary responsibility is to recruit successful
individuals “

I cannot think of anybody to refer?


“ Of course Mr X ,I don’t except you to know anybody
offhand .In the 15-20 minutes that we will spend together , we
will in a position to find out , if not than I have the pleasure of
meeting you .With in mind can I have your office address ?”
I will call you back
“ I would really appreciate that Mr X. In case if you are not in a
position to give a call by Monday , would it fine if I call you
back ?

I don’t want to be an agent


“ Mr X ,I have not called you up for that purpose at all . As I told
you earlier also that I work as sales manager whose primary
responsibility is to recruit successful individuals who will work
as the financial advisors for my company” .

Where did you get my number from?


“ My company actually maintains database of successful
people in the city and that’s where I got your name and
number from.”

Tell me over phone


“ I would have loved to do that but , Mr you would
appreciate that such a great opportunity cannot be explained
over the phone properly and can be face to face in a proper
manner .I am sure I will be able to add value to your time .
Would Tuesday morning fine with you ...........”
I will speak to the people and get back to you
“I really appreciate that Mr X but wouldn’t you appreciate the
fact that you would be in a position to explain the opportunity
to the people once I have told you what exactly is this about
and the kind of people we are looking out for “
I will tell everyone who is interested
“I would really appreciate that Mr X ,but I would like to tell you
that our organisation is very quality conscious and has a very
strict selection process . So I would like to first discuss with you
the profile and traits of the people that we are looking out
for .Perhaps that would help your identity and answer the
queries of people who can fit the bill or would be the right
candidates for us . With that in mind would.......”

I am already associated with life insurance


“That’s fantastic Mr X, who would know this business better
than you but I would like to share this opportunity with you
personally and communicate hoe different we are from any
other insurance company “

Why not MNYL? Why not LIC?


“I really appreciate your query Mr X . No doubt LIC is a good
company but wouldn’t you agree with the fact that no one
company can have all the good ideas? So I would suggest if
you could accommodate a meeting of 20-25 minutes wherein I
will be in a position to tell you how are we different from any
other insurance company “

“I generally know people who are already well settled in


their business and so am I”
“Mr X, I understand that you are already managing a
successful enterprise ,I however would like to share this
opportunity wherein within the same working hours you have
the potential to not only double your earnings but create
ongoing income and wealth. So that your one business income
could be your complete savings and existing business
expenditure is taken care of by other business income”. With
that in mind.........

I will make a list for you


“Thank you, I really appreciate your offer, however, I don’t
want to add anything to your ‘to do’ list . I know I caught you
unaware on the phone. By getting together for say half an
hour, I can give you an idea of the kind of the individual we are
looking out for , and then we can brainstorm for the names at
that point. My calendar is open for Thursday afternoon, how
does that fit your schedule?”
RECOMMENDATIONS

Max New York Life as an insurance firm has a very strong presence in
India and is rapidly expanding its operations in India. After working on
this project I feel that following are some of the ways in which the
company can improve the current market base and selection procedure
for AAs, the key revenue generating resource for the company:

• Very few people in India are aware of the company and its
products. The company should find more ways to market itself to
the outside world and create awareness about its existence and
the efficiencies of its varied excellent products.
• Another suggestion to the company would be to reduce its timing
for the training program for the agent advisors. Most of the people
coming to MNYL are not satisfied with the timing of training
and return dejected.
• Have a re-look at the existing product range and design products
which can attract masses rather than just serving only classes
CONCLUSION

It has been a great experience working with Max New York Life. I have
gained a lot of knowledge and improved immensely on my skills. I got
the opportunity to meet and communicate with many people and
undertake responsibility. I feel that MNYL is a great organization with
plenty scope for growth. One of the main reasons in the success of this
project was the constant appreciation and motivation from the staff of
MNYL . The internship was both informative and also interactive.
Questionnaire:

Name- ………………………………………………………………………………

Age-……………………………qualification-……………………………….…………

Address- …………………………………………………………………………………

Contact no- ……………………………email id-………………………………………

Q1) When do you plan your investments?

I) Beginning of the year ii) middle of the year iii) end of the year

Q1) Are you aware of life insurance?

i) Yes ii) no

Q2) Have you ever invested in any of the firms?

i) yes ii) no
Q3) What is your preference regarding investments?

i) Fixed deposit ii) insurance iii) share market iv) real state v)
mutual funds vi) others

Q4) Which insurance company do you prefer?

i) Bajaj allianz ii) sbi life iii) icici prudential iv) hdfc standard life
v) max new york life vi) LIC

If any others please specify


……………………………………………………………………………….

Q5) How did you come to know about the insurance company?

i) Commercial add ii) newspaper iii) magazines iv) hoardings

Q6) How much premium can you pay?

i) Rs 10,000 – Rs 15,000 ii) Rs 15,000 – Rs 30,000 iii) Rs 30,000 – Rs


50,000

Iv) Rs 50,000 – Rs 1,00,000 v) above Rs 1, 00,000

Q7) How much do you expect as a risk cover?

i) Rs 2,00,000 ii) Rs 3,00,000 iii) Rs 4,00,000 iv) Rs 5,00,000 v)


above Rs 5,00,000

Q8) What do you expect as returns from your investments in insurance?

i) Risk coverage ii) safety iii) return on investments iv) coverage


from future perceived losses

Q9) What would be your preference regarding rider benefits?

i) Accidental death benefit ii) waiver of premium benefit iii) critical


illness benefit
iv) hospital cash benefit v) others

Q10) Are you satisfied with your insurance company?

i) Strongly satisfied ii) satisfied iii) strongly dissatisfied iv)


dissatisfied v) others

Q11) Would you recommend your insurance company to your friend?

i) Yes ii) no

Q12) What are your opinions about insurance advisors?

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Q13) Any suggestions

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Thanks for your co-operation.


Have a nice day
Bibliography

Internet

• www.maxnewyorklife.com
• www.maxindia.com
• www.newyorklife.com
• www.irda.org
• en.wikipedia.org/wiki/Inusrance

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