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TRANSCRIPT
A MINOR PROJECT REPORT
ON
“A STUDY ON ADVERTISING STRATEGY ON MAX NEW YORK LIFE
INSURANCE COMPANY”
SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF
THE DEGREE OF BACHELOR IN BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF:
Ms. Seema Wadhawan
SUBMITTED BY:
Aashiya Siddiqui
Enrollment No. – 05980301713
BBA, Semester – III
Batch 2013- 2016
RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES
NAAC Accredited ‘A’ Grade
Category ‘A++’ Institute
High grading 81.7% by joint assessment
An ISO 9001:2008 Certified Institute
(Approved by AICTE, HRD Ministry, Govt. of India)
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085
Table of Content
S.No Particular Page No.
1 Chapter- 1
1.1 Advertising strategy
1.1.1 Developing the strategy
1.1.2 Insurance – introduction
1.2 Objective of the Study
1.3 Literature Review
2 Chapter-2
2.1 Company profile
2.2 History
3 Chapter-3
3.1 Research Methodology
3.1.1 research: meaning
3.1.2 Types of Research
4 Chapter-4
Data analysis & Interpretation
5 Chapter -5 findings & conclusion
5.1 Findings of the study
5.2 Conclusion
6 Chapter-6 Suggestions & Bibliography
6.1 Suggestions
6.2 Bibliography
7 Annexure
STUDENT DECLARATION
This is to certify that I have completed this project title “ADVERTISING STRATERGIES OF
MAX NEW YORK LIFE INSURANCE CO. LTD.” In partial fulfillment of the requirement for
the award of degree of bachelor of business administration at RUKMINI DEVI INSTITUTE OF
ADVANCED STUDIES; ROHINI.
I hereby certify that all the endeavor put in the task are genuine and original my knowledge and I
have not submitted it earlier elsewhere.
Signature
AASHIYA SIDDIQUI
BBA 2nd shift 3rd
CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN
This is to certify that Aashiya Siddiqui has completed the project work “ADVERTISING
STRATEGY OF MAX NEW YORK LIFE INSURANCE CO. LTD .” Made by Bba(E),
05980301713 from Rukmini Devi Institute Of Advanced Studies affiliated to Guru Gobind Singh
Indraprastha university, Delhi under my guidance and his work is original.
PROJECT SUPERVISOR
SINGNATURE
Name: Ms. SEEMA WADHAWAN
ACKNOWLEDGEMENT
There is always a sense of gratitude which one express to other for the helpful so needy services
they render during all phases of life. I would like to express my gratitude towards all those who
have been helpful to me in getting this mighty task of training to a successful end. First of all, i
consider it a pleasant duty to express my heart felt appreciation, gratitude and indebtedness to
MS. SEEMA WADHAWAN (MY PROJECT GUIDE) for her keen interest, invaluable pain
taking & excellent guidance, patience, endurance, encouragement & thoughtful advice
throughout the project work duration. I would also like to be thankful to all my friends who gave
me constant & continuous inspiration to complete this project.
SIGNATURE
AASHIYA SIDDIQUI
BBA GENERAL
3RD SEMEMTER (05980301713)
EXECUTIVE SUMMARY
The Indian Insurance Industry is broadly segmented into public and privateinsurance companies.
Before year 2000, only public sector insurance companies were allowed to do business in India.
But after year 2000, insurance sector was thrown open for private insurance companies as well.
But as of now there now around 19 private life insurance companies and around 9 private
non-life insurance companies doing business in India.
This report is prepared with an aim to provide an overview of present India Insurance Industry.
Also with LIC, heading the public life insurance companies and Max New york life heading the
private life insurance players, this report also provides a comparative analysis of Life policies.
Based on this report, the prospecting insurance customers would get help in choosing the right
insurance products for themselves.
1.1ADVERTISING STRATEGY
Meaning
Advertising is a single component of the marketing process. It's the part that involves getting the
word out concerning your business, product, or the services you are offering. It involves the
process of developing strategies such as ad placement, frequency, etc. Advertising includes the
placement of an ad in such mediums as newspapers, direct mail, billboards, television, radio, and
of course the Internet. Advertising is the largest expense of most marketing plans, with public
relations following in a close second and market research not falling far behind.
The best way to distinguish between advertising and marketing is to think of marketing as a pie,
inside that pie you have slices of advertising, market research, media planning, public relations,
product pricing, distribution, customer support, sales strategy, and community involvement.
Advertising only equals one piece of the pie in the strategy. All of these elements must not only
work independently but they also must work together towards the bigger goal.
1.1.1 DEVELOPING THE STRATEGY
Positioning Statement
Formal advertising strategies are based on a "positioning statement," a technical term the meaning
of which, simply, is what the company's product or service is, how it is differentiated from
competing products and services, and by which means it will reach the customer. The positioning
statement covers the first two items in the listing above.
Implicit in a good positioning statement is what the industry calls the product concept, namely a
cluster of values that the product or service represents and the associational frameworks in which it
fits. A hunting knife will thus have a very different product concept than a pair of pink silk slippers
that glow in the dark. The product concept will later guide the choice of copy, images, and message
content to be used in actual ads (the "copy platform"). The positioning statement must also
implicitly include the profile of the targeted customer and the reasons why he or she would buy
this product or this service. At a later stage, more data on the "target consumer" is then developed
as the strategy is fleshed out.
Target Consumer
The target consumer is a complex combination of persons. First of all, it includes the person who
ultimately buys the product. Next it includes those who, in certain circumstances, decide what
product will be bought (but do not physically buy it). Finally, it includes those who influence
product purchases (children, spouse, and friends). In practice the small business owner, being close
to his or her customers, probably knows exactly how to advise the advertising agency on the target
consumer.
Communication Media
Once the product and its environment are understood and the target consumer has been specified,
the routes of reaching the consumer must be assessed—the media of communication. Five major
channels are available to the business owner:
Print—Primarily newspapers (both weekly and daily) and magazines.
Audio—FM and AM radio.
Video—Promotional videos, infomercials.
World Wide Web.
Direct mail.
Outdoor advertising—Billboards, advertisements on public transportation (cabs, buses).
Each of the channels available has its advantages, disadvantages, and cost patterns. A crucial stage
in developing the advertising strategy, therefore, is the fourth point made at the outset: how to
choose the optimum means, given budgetary constraints, to reach the largest number of target
consumers with the appropriately formulated message.
Implementation
The advertising campaign itself is distinct from the strategy, but the strategy is meant to guide
implementation. Therefore across-the-board consistency is highly desirable. Copy, artwork,
images, music—indeed all aspects of the campaign—should reflect the strategy throughout. This is
especially important when multiple channels are used: print, television, and direct mail, for
instance. To achieve a maximum coherence, many effective advertisers develop a unifying
thematic expressed as an image, a slogan, or a combination which is central to all the elements that
ultimately reach the consumer.
1.1.2 INSURANCE – AN INTRODUCTION
Insurance may be described as a social device to ensure protection of economic value of life and
other assets. under the plan of insurance, a large number of people associate themselves by
sharing risks attached to individuals. the risks, which can be insured against, include fire, the
perils of sea, death and accidents and burglary. any risk contingent upon these, may be insured
against at a premium commensurate with the risk involved. thus collective bearing of risk is
insurance. insurance is a contract whereby, in return for the payment of premium by the insured,
the insurers pay the financial losses suffered by the insured as a result of the occurrence of
unforeseen events. the term "risk" is used to describe the possibility of adverse results flowing
from any occurrence or the accidental happenings, which produce a monetary loss. insurance is
a pool in which a large number of people exposed to a similar risk make contributions to a
common fund out of which the losses suffered by the unfortunate few, due to accidental events,
are made good. the sharing of risk among large groups of people is the basis of insurance. the
losses of an individual are distributed over a group of individuals.
DEFINITIONS
General definition:
In the words of John Magee, “Insurance is a plan by themselves which large number of people
associate and transfer to the shoulders of all, risks that attach to individuals.”
Fundamental definition:
In the words of D.S. Hansell, “Insurance accumulated contributions of all parties participating in
the scheme.”
Contractual definition:
In the words of justice Tindal, “Insurance is a contract in which a sum of money is paid to the
assured as consideration of insurer’ incurring the risk of paying a large sum upon a given
contingency.”
CHARACTERISTICS OF INSURANCE
•Sharing of risks
•Cooperative device
•Evaluation of risk
•Payment on happening of a special event
•The amount of payment depends on the nature of losses incurred.
•The success of insurance business depends on the large number of people insured against
similar risk.
•Insurance is a plan, which spreads the risk and losses of few people among a large number of
people.
•The insurance is a plan in which the insured transfers his risk on the insurer.
•Insurance is a legal contract which is based upon certain principles of insurance which includes
utmost good faith, insurable interest, contribution, indemnity, causes proxima, subrogation, etc.
•The scope of insurance is much wider and extensive.
FUNCTIONS OF INSURANCE:
Primary functions:
1. Provide protection: Insurance cannot check the happening of the risk, but can provide for the losses of
risk.
2. Collective bearing of risk: - Insurance is a device to share the financial losses of few among many others.
3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating various factors that
give rise to risk.
4. .Provide certainty: - Insurance is a device, which helps to change from uncertainty to certainty.
Secondary functions:
1. Prevention of losses: - Insurance cautions businessman and individuals to adopt suitable device to prevent
unfortunate consequences of risk by observing safety instructions.
2. Small capital to cover large risks: - Insurance relives the businessman from security investment, by paying
small amount of insurance against larger risks and uncertainty.
3. Contributes towards development of larger industries.
Other Function:
Means of savings and investment:
Insurance companies are business houses. The product they sell is financial protection. To succeed and survive,
they must cover their costs, which include payments to cover the losses of policyholders, as well as sales and
administrative expenses, taxes and dividends.
Insurance companies have two sources of income for covering these costs:
Premiums and investment income. The premiums are collected on a regular basis and invested in Government
Bonds, Gilt, stocks, mutual funds, real estates and other conservative avenues. However, investment income
depends on market conditions, interest rates, economy etc. and varies from year to year. Because of the uncertainty
associated with the investment income, insurance companies must generate enough income from premiums to
cover the bulk of their expenses.
The risk becomes insurable if the following requirements are complied with:
1. The insured must suffer financial loss if the risk operates.
2. The loss must be measurable in money,
3. The object of the insurance contract must be legal.
4. The insurer should have sufficient knowledge about the risks he accepts.
Fundamentals of Insurance
The fundamental Principles of the Insurance are as follows:
INSURABLE INTEREST:
Insurable interest means the legal right to insure. Insurable Interest is a must and only then the
insurance contract is enforceable at law. This principle differentiates a Contract of insurance
from wager. Lack of insurable interest renders the contract null and void. For Insurable Interest
to exist there must be Property, Rights, Interest, Life or Liability; this must be insured and the
Insured should have a legally recognizable relationship thereto. The Insured should be benefited
by the safety of the property or is prejudiced by its loss. Insurable Interest may arise in the
following manner:
Ownership:
Absolute ownership entitles the owner to insure the property. This is the commonest
method whereby Insurable Interest arises.
Partial Interest
I s a lso insurab le e . g. a mortgagee . A c red ito r cans a lso insure the life of his
debtor but only to the extent of his loan.
Administrators and executors
I.e. officials appointed by a court of law to take care of a property may also insure the
property
Relationship
Does not automatically constitute insurable interest. The only relationship recognized by
law for this purpose is the one between a husband and wife.
An employer
Can insure his employee under a Personal Accident Policy a she has insurable interest in them.
1. PROXIMATE CAUSE:
Generally, the claims are payable under insurance policies if they arise out of events which
are proximately caused by the insured perils. In other words, the proximate cause of the
event has to be peril covered by the policy, so as to constitute a valid claim.
2. Contribution:
An insured may have several insurance on the same subject matter. If he recovers his loss under
all these insurance, he will obviously make a profit out of loss. This will be an infringement of
the principle of indemnity. Common Law has, therefore, evolved the doctrine of contribution
whereby the insured is prevented from recovering more than his loss, despite his
having several insurance on the subject matter.
3. Subrogation:
The principle of indemnity seeks to prevent the insured from making profit out of loss. However,
it may so happen that that the insured may recover his loss under his policy and he may also have
rights against third parties. If, after the insurance claim is settled, the insured is allowed to
enforce is rights against third parties and to retain whatever damages he receives from them, he
will certainly make a profit and the principle of indemnity will be infringed. Common Law has
therefore, evolved the doctrine of subrogation as corollary to the principle of indemnity.
Subrogation may be defined as the transfer of rights and remedies of the insured to the insurers
who have indemnified the insured in respect of the loss. The Common Law right of subrogation
is implied an all contracts on indemnity, as it arises only after payment of loss.
4. Utmost Good Faith:
In all General Insurance contracts we know that a property or interest or liability or life is offered
for insurance and the insured as to take decisions on the acceptance of the proposal. If he decides
to accept the proposal a premium commensurate with the risk has to be charged. To enable him
to take necessary decision in this regard, the insurer must have certain facts about the risk
offered. These facts influence the judgment of the insurer in deciding about the acceptance or
otherwise of the risk and the rate of premium to be charged, if accepted. Such facts are known as
material facts.
NATURE OF INSURANCE CONTRACTS
When the insured pays the premium and the insurers accept the risks, the contract of insurance is
concluded. The policy issued by the insurers is the evidence of the contract. The contract of
insurance, like any other contract, for example a contract for the sale of goods, is subject to the
general law of contract as embodied in the Indian Contract Act, 1872.
According to this Act, a contract must have certain essential features in order to
Make it legally valid and enforceable. The following are the essential elements:
Offer and acceptance: Usually, the offer is made by the proposer, and acceptance made
by the insurer.
Consideration: This means that the contract must involve some mutual benefit to the
parties. The premium is the consideration from the insured and the promise to indemnity
is the consideration from the insurers.
Agreement between the parties: Both the parties should agree to the same thing in the
same sense.
Capacity of the parties: Both the parties to the contract must legally competent to enter
into the contract. For example, minors cannot enter into insurance contracts.
Legality: The object of the contract must be legal and the contract should not violate any
legal requirements. E.g. no insurance can be had for smuggled goods.
Risk Reasonable or not, risks are inescapable in business. Every business ventures is
something of a gamble, because the possibility of loss is as real as the prospects for
profits. And even though managers do everything possible to ensure that their business
succeeds, they cannot guard against every conceivable form of risk.
Pure Risk versus Speculative Risk
Pure Risk: Events representing the kind of risk that no business can predict or escape,
known as Pure Risk, it is the threat of a loss without the possibility of gain. In other
words, a disaster such as avalanche or fire is costly for the business it strikes, but the fact
that no disaster occurs contributes nothing to a firm's profit.
Speculative Risk: It is the type of risk that offers the prospect of making profit -and
prompts people to go into business in the first place. Every business accepts the
possibility of losing money in order to make money. Approaches to Risk Management
Risk Management is the process of reducing the threat of loss due to uncontrollable
events.
Steps in selecting a risk management approach:
Avoiding the Risk:
When a company avoids risk, it eliminates the possibility that a particular event will occur. To
avoid the possibility of a suit, for example, not to produce any products -which would, of course,
eliminate both the threats of lawsuit and the opportunity to profit. With rare exceptions, avoiding
risk entirely is extremely difficult.
Reducing the Risk:
A more practical approach is to reduce the risk by taking precautions. Risk reduction is an
important element in most companies' approach to risk management. Typical precautions include
putting safety locks on doors to prevent robberies, installing overhead sprinklers to minimize fire
damage, and periodic checking motor vehicles to prevent accidents.
Assuming risk:
Many companies draw on current revenues or set aside a "Contingency Fund" to cover
unexpected losses. Setting aside money on regular basis could be cheaper than purchasing
insurance. Moreover, the company can earn interest on the reserved cash. Such assumption of
risk is also called self-insurance or risk retention.
Transferring the risk:
Most companies still rely on outside insurance firms for financial protection against catastrophic
losses. In buying insurance, companies transfer the risk of loss to an insurance firm, which
agrees to pay for certain types of losses. In exchange, the insurance firm collects a fee known as
a premium.
INSURABLE AND NON-INSURABLE RISKS
Insurable risks:
An insurable risk - one that an insurable company will cover-Generally meets the following
requirements. The peril insured against must not be under the control of the Insured. This means,
of course that insurer do not pay for losses that are intentionally caused by an insured, caused at
the Insured's direction, or caused with the insured's collusion. For example, a fire insurance
policy excludes loss caused by the Insured’s own arson. It does, however, include loss caused by
an employee's arson. Losses must be calculable, and the cost of insuring must be economically
feasible. To operate profitably, insurance companies must have data on the frequency of losses
caused by a given peril. If this information covers a long period of time and is based on a large
number of cases, Insurance companies can usually predict quite accurately how many losses will
occur in the future. For example, the insurance companies to fix up the rate of premium of
Personal Accident Insurance may use the information of the number of people who will die each
year in India in accidents. The peril must be unlikely to affect all insured simultaneously. Unless
an insurance company spreads its coverage over large geographic areas or a broad population
base or different classes of Insurance, a single disaster might force it to pay out all its policies at
once. The possible loss must be financially serious to the Insured. An Insurance company could
not afford the paperwork involved in handling numerous small claims of a few Rupees each. As
a result, many policies have a clause specifying that the insurance company will pay only that
part of a loss greater than an amount - the deductible or excess-stated in the policy. The excess
represents small losses that the Insured has to absorb.
1.2OBJECTIVE
Advertising Is The Best Way To Communicate To The Customers.
Advertising Helps Informs The Customers About The Brands Available In The Market .
Advertising Is For Everybody Including Kids, Young And Old. It Is Done Using Various
Media Types, With Different Techniques And Methods Most Suited.
To Become one Of The Top Quartile Life Insurance Companies In India.
Be The Brand Of The First Choice. Be The Employes Of The Choice. Become Principal
Choice For Agent.
1.3Literature Review
The company was incorporated on 24th February, and the certificate of commencement of
business was obtained on 21st March. The company was engaged in the manufacture of Bi-
axially oriented polypropylene (BOPP) films. The company was promoted in joint sector by
Max India Ltd.,Ranbaxy Laboratories Ltd., Montari Industries Ltd. and Punjab State
Industrial Development Corporation Ltd.
- The Company undertook to set up a project for the manufacture of 2,000 tonne’s per annum of
BOPP film.
-Following amalgamation, the Company organised its business and designated them under four
groups as follows: Max Pharm, Max Electronics, Maxxon BOPP Films, Max Telecom.
- The Max-GB Ltd. is a 50:50 joint venture formed with Gist-Brocades International BV of the
Netherlands. It manufactures and markets
Penicillin based drug intermediates (6-APA and 7-ADCA) and bulk drugs (Ampicillin,
Amoxicillin and Cephalexin).
- The Company undertook to set up a state-of-the-art bulk drugs and Intermediates facility at a
50 acre green field site at Nanjangud near Mysore in Karnataka. The bulk drugs range would
include Anti-epileptic and anti-histaminic drugs.1989
- During January, the Company issued
14,50,000-12% secured convertible debentures of Rs100 each as follows: (i) 2,90,000 debentures
to the resident and non-resident shareholders of the promoter companies(all were taken up). (ii)
72,500 debentures to employees (only 4,950 debentures taken up). The remaining 10,87,500
debentures, along with
67,550 debentures not taken by employees, were offered to the public.
All were taken up.
- The erstwhile Max India Ltd., expanded into pharmaceutical formulation at an existing
manufacturing facility at Okhla, New Delhi.
- New products such as Maxmox, a formulation of Amoxycillin, Cefamax, a formulation of
Cephalexin, Floxip and an innovative product Rejoor Were introduced.
Max Life Insurance, one of the leading life insurers, is a joint venture between Max India Ltd.
and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multi-business corporate,
while Mitsui Sumitomo Insurance is a member of MS&AD Insurance Group, which is amongst
the top general insurers in the world. Max Life Insurance offers comprehensive life insurance
and retirement solutions for long-term savings and protection to more than thirty lakh customers.
It has a country-wide diversified distribution model including the country's leading agent
advisors, exclusive arrangement with Axis Bank and several other partners. Max Life Insurance
is a quality business focused on delivering excellence to customers through advice based sale
process, customer centric approach to business, financial stability & investment expertise and
strong human capital.
Max Life Insurance has positioned itself on the quality platform. In line with its vision to be the
most admired life insurance company by securing the financial future of its customers, has
developed a strong corporate governance model based on the core values of caring, credibility,
collaborative and excellence.
Max Life Insurance offers comprehensive life insurance and retirement solutions for long-term
savings and protection to over thirty two lakh customers. It has a country-wide diversified
distribution model including the country's leading agent advisors, exclusive arrangement with
Axis Bank and several other partners. Max Life Insurance is a quality business focused on
delivering excellence to customers through advice based sale process, customer centric approach
to business, financial stability & investment expertise and strong human capital.
In the financial year 2013-14 Max Life Insurance ranked fourth among private life insurers with
a market share of 10.3%. The Company has been one of the fastest growing life insurance
companies with Gross Written Premium of Rs.7, 279 crore and Shareholders Profit after Tax of
Rs.43 crore for the Financial Year 2013-14. The Company's share capital of Rs.2,127 crore with
a solvency margin of 485% is indicative of its financial strength and stability. As on 31st March
2014,
Max Life Insurance had assets under management of Rs.24, 716 crore.
Max Life Insurance has a diversified distribution network spread across more than 750 cities.
The distribution is based on three pillars – agency distribution, banc assurance and partnership
distribution. Agency distribution forms its core distribution channels with advice based sales
process through its well trained and knowledgeable agent advisors. These agent advisors are
equipped to engage with prospective customers and offer customized solutions for their life stage
needs.
In banc assurance, the Company has a strong relationship with Axis Bank which in a short span
has become the largest non-captive banc assurance relationship in India with its network of over
2000 branches providing life insurance solutions to its customers. Partnership Distribution, the
third pillar of Max Life Insurance's distribution model is equally important and successful with
long standing relationship with large distributors of financial products such as Assure and
Peerless. These three key distribution channels are complemented by Group Insurance and
Customer Advocacy teams.
Max Life Insurance offers a comprehensive suite of Long Term Savings and Protection oriented
products. It currently has 12 products covering and 3 riders that can be customized to suit every
life stage need of the customer. Besides this, the company offers 3 products and 1 rider in group
insurance business.
2.1 COMPANY PROFILE
Max New York Life Insurance Company Limited is a joint venture between Max India Limited,
which is a one of India's leading multi-business corporate, and New York Life International,
which is a Fortune 100 company & global expert in life insurance. Max New York Life
Insurance started its commercial operations in India in 2001. It is the first life insurance company
in India to be awarded the IS0 9001:2000 certification. The company has around 133 offices all
over.
Max New York Life offers a variety of flexible products covering both life and health insurance
including 8 riders that can be customized to over 800 combinations which enable the customers
to choose the policy that suits their needs. Max New York Life also offers 6 products and 7
riders in group insurance business. The company has a plan for every need, designed as to meet
your long term financial goals & aspirations. They help you fulfilling your dreams &
commitments. The list of few plans provided by Max New York Life Insurance Company
Limited is given below:
Max India Limited (MIL) a multi-business corporate was incorporated in 24th February of the
year 1988. Focused on Knowledge, People and Service oriented of Healthcare (Max Healthcare),
Life Insurance (Max New York Life Insurance), Clinical Research (Neeman Medical
International) and also Max maintains interests in Specialty Plastic Products for the packaging
industry (Max Speciality Products) and Healthcare Staffing (Max HealthStaff). Max had
expanded its presents into pharmaceutical formulation at an existing manufacturing facility at
Okhla, New Delhi in the year 1994. Also in the same year, new products such as Maxmox, a
formulation of Amoxycillin, Cefamax, a formulation of Cephalexin, Floxip and an innovative
product Rejoor were introduced. In the year1992, a joint venture company was set up in
collaboration with Hutchison Telecom under the name of Hutchison Max Telecom Pvt. Ltd to
offer value added telecom services. MIL had entered into memorandum of understanding with
Comsat Corporation USA for a joint venture to address the needs of VSAT communication
services via satellite. Maxxon India, promoted by MIL, was merged with the company in the
year 1993. During the year 1994, an innovative new product for leather industry was introduced
under the name of Maxfoil and also in the same year the company commissioned the cellular,
paging and VSAT Satellite Communication networks. The joint venture between Max-GB Ltd.
and Hindustan Antibiotics Ltd for manufacture of Penicillin G was inaugurated at Pimpri on 8th
October of the year 1995. Forays were made into the banking and financial sectors and also into
distribution and manufacturing sectors. In March of the year 1996, a joint venture was formed
with Atotech BV of the Netherlands for PCB plating and general metal finishing chemicals. A
range of Upjohn products manufactured under licence in a new sterile facility were launched. In
April of the same year, the unit commissioned at its films metallising plant and launched its
metallised BOPP films branded Maxmet'. Max Corporation, a wholly owned subsidiary of the
Company has been amalgamated with the company in the year 1999. MCL stood dissolved
without winding up, and all assets and liabilities of MCL were transferred and vested with the
Company effective from 14th January of the year 2000. During the year 2000, the company had
acquired a majority interest in HealthScribe India Pvt. Ltd. a 100 per cent Indian subsidiary of
HealthScribe Inc., one of the World's leading medical transcription companies. MIL sold its 24
per cent stake in the 50:50 penicillin-based bulk pharmaceutical joint venture of Max GB to its
foreign partner, the Dutch DSM, for Rs. 26 crores. In the year 2001, Max healthcare, a division
of Max India Ltd., has opened two primary (Dr Max) and a secondary (Max Medcentre)
healthcare centres in New Delhi. During the identical year of 2001, the company entered into
insurance business, Max New York Life the joint venture between Max India and New York
Life. Max India became the first private player to shows interest in Health Insurance sector
during the year 2002 and also in the year, the company sold its pharmaceutical division to
Jubilant Organosys for the consideration of Rs. 62.7 crs. During 2002-03, the company had
entered into the healthcare staffing resources business through a 50% investment in a new
Company, Max HealthStaff International Ltd. During the year 2003, Max India closed down the
Max Ateev and Alta Cast, the software development and IT enabled business taking a big hit of
Rs.65 crs. During 2004-05, the company divested its equity stake in Comsat Max in favour of
Bharti Infotel Ltd, for a cash deal of Rs.33 crores. During 2005, the company decided to
amalgamate its wholly owned subsidiaries namely, Max Telecom Ventures Ltd and Max Asia-
Pacific Ltd Honkong with the company. In June of the year 2005, the company acquired
19,72,500 equity shares of Max HealthStaff for a consideration of Rs.2.51 Crores, thereby
making it a wholly owned subsidiary of the company. Max Super Speciality Hospital (MSSH)
was commenced its operations in May of the year 2006. Neeman Medical International (NMI)
had established preferred provider relationship with 5 Pharma major in the year 2006-07. Max
Speciality Products (MSP) commissioned a new state-of-the-art-speed BOPP film production
line with a capacity of 20000 tonnes per annum in March of the year 2007. The Company to
invests Rs 10 billion additionally in Max New York Life, the board decided in September of the
year 2007. The Company bagged an Express Healthcare Excellence Awards for the year 2007-
08. Max made a Joint venture with BUPA Finance Plc., UK (world leader of highest pedigree in
this space) in the year 2008.
Max Life Insurance Company Limited provides life insurance products in India. The company
offers a range of participating, non-participating, and linked products covering life insurance,
pension, and health benefits. The company provides individual and group life insurance products
consisting of protection, child, retirement, growth, savings, health, and group plans Max Life
Insurance Company Limited distributes its products primarily through individual agents,
corporate agents, banks, and brokers. The company was formerly known as Max New York Life
Insurance Company Limited and changed its name to Max Life Insurance Company Limited in
July 2012. The company was incorporated in 2000 and is based in New Delhi, India. Max New
York Life Insurance Company Limited is a subsidiary of Max India Limited.
Max Life Insurance Company Limited has pulled out of the bid to acquire Aviva Life Insurance
Company India Pvt. Ltd. A source close to the development told Financial Chronicle that the two
private life insurance players, HDFC Standard Life Insurance Co., Ltd. and Birla Sun Life
Insurance Company Limited, have entered a non-binding agreement with Aviva plc (LSE:AV.) a
few weeks back. “We did not see value in the deal,” said a source in Max Life Insurance.
According to a person close to the development, Aviva Life is looking at a valuation of INR 50
billion, while its embedded value is estimated to be around INR 18 billion. “Aviva has a good
back-book and a strong franchise in the south besides a robust distribution strength comprising
agency, online and corporate relationship tie-ups. But they are asking for too much,” said an
official with one of the bidders. A mail sent to Aviva Life director Mohit Burman, who
represents Dabur, did not elicit any response. Top officials of Aviva Life, HDFC Life and Birla
Sun Life refused to comment.
2.2 HISTORY:
The company was founded in 1845 as the Nautilus Insurance Company in New York City, with
assets of just $17,000. It was renamed the New York Life Insurance Company in 1849. Its first
headquarters were at 112-114 Broadway; the first president was James DePeyster Ogden. The
current New York Life headquarters was designed by architectCass Gilbert and completed in
1928. The New York Life Building, at 51 Madison Avenue, was constructed during the
presidency of Darwin P. Kingsley. As with other early insurance companies in the U.S., in its
early years the company insured the lives of slaves for their owners. In response to bills passed
in California in 2001 and in Illinoisin 2003, the company reported that Nautilus sold 485
slaveholder life insurance policies during a two-year period in the 1840s; they added that their
trustees voted to end the sale of such policies 15 years before the Emancipation Proclamation.[3]
In 1860, before state laws required it, New York Life developed the non-forfeiture option, the
predecessor to the guaranteed cash values of modern policies, under which a policy remains in
force even if a premium payment is missed. It was also the first American life insurance
company to pay a cash dividend to policyholders, and the first U.S. company to issue policies to
women at the same rates as men. Susan B. Anthonywas one of their first female policy holders,
and her father worked for NYLIC.[4] In 1896, New York Life became the first company to insure
people with disabilities and the first to issue a policy with a disability benefit that presumes total
disability to be permanent after a predetermined period.
In the late 1990s New York Life was one of several large mutual life insurers to back a bill that
would allow demutualizationinto a structure known as a mutual holding company (MHC).
CEO Sy Sternberg himself argued strongly in favor of the bill,[5]which was ultimately defeated.
The NYLIC board of directors subsequently reversed course, with the company strongly and
publicly embracing their mutual nature in a series of advertisements.
Financial crisis of early 21st Century
According to their Report to Policyholders 2007, in early 2007 the company's managers became
concerned about the state of credit markets, so in February 2007 "based on our belief that the
markets were acting irrationally" New York Life decided to move much of its cash flow into
safer investments such as US Treasury bonds. "By August 2007, the credit market problems we
had feared were front page news," the Report notes.
In November 2008, the company announced it will not participate in the Troubled Asset Relief
Program. "The company can meet all of its strategic objectives without government capital, its
businesses are strong and profitable, and it is committed to remaining a mutual company
operating for the sole benefit of its policyholders," states a company press release.[6]
Theodore "Ted" Mathas, president and CEO in 2008, said at the time of the financial crisis that
New York Life is "built for times like these." This phrase became the title for the 2008 report to
policyholders. Ted Mathas becomes the company chairman on June 1, 2009.[7]
New York Life maintains "superior" financial ratings from A.M.
Best, Fitch, Moody's and Standard and Poor's, all of which have reaffirmed the ratings during the
financial crisis of autumn 2008.
Max Life Insurance Co. Ltd.
Max Life Insurance, one of the leading life insurers, is a joint venture between Max India Ltd.
and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multi-business corporate,
while Mitsui Sumitomo Insurance is a member of MS&AD Insurance Group, which is amongst
the top general insurers in the world. Max Life Insurance offers comprehensive life insurance
and retirement solutions for long-term savings and protection to more than thirty lakh customers.
It has a country-wide diversified distribution model including the country's leading agent
advisors, exclusive arrangement with Axis Bank and several other partners. Max Life Insurance
is a quality business focused on delivering excellence to customers through advice based sale
process, customer centric approach to business, financial stability & investment expertise and
strong human capital.
Max Life Insurance has positioned itself on the quality platform. In line with its vision to be the
most admired life insurance company by securing the financial future of its customers, has
developed a strong corporate governance model based on the core values of caring, credibility,
collaborative and excellence.
Max Life Insurance offers comprehensive life insurance and retirement solutions for long-term
savings and protection to over thirty two lakh customers. It has a country-wide diversified
distribution model including the country's leading agent advisors, exclusive arrangement with
Axis Bank and several other partners. Max Life Insurance is a quality business focused on
delivering excellence to customers through advice based sale process, customer centric approach
to business, financial stability & investment expertise and strong human capital.
In the financial year 2013-14 Max Life Insurance ranked fourth among private life insurers with
a market share of 10.3%. The Company has been one of the fastest growing life insurance
companies with Gross Written Premium of Rs. 7,279 crore and Shareholders Profit After Tax
of Rs. 436 crore for the Financial Year 2013-14. The Company's share capital of Rs. 2,127 crore
with a solvency margin of 485% is indicative of its financial strength and stability. As on 31st
March 2014, Max Life Insurance had assets under management of Rs. 24,716 crore.
Max Life Insurance has a diversified distribution network spread across more than 750 cities.
The distribution is based on three pillars – agency distribution, bancassurance and partnership
distribution. Agency distribution forms its core distribution channels with advice based sales
process through its well trained and knowledgeable agent advisors. These agent advisors are
equipped to engage with prospective customers and offer customized solutions for their life stage
needs.
In bancassurance, the Company has a strong relationship with Axis Bank which in a short span
has become the largest non-captive bancassurance relationship in India with its network of over
2000 branches providing life insurance solutions to its customers. Partnership Distribution, the
third pillar of Max Life Insurance's distribution model is equally important and successful with
long standing relationship with large distributors of financial products such as Amsure and
Peerless. These three key distribution channels are compelmented by Group Insurance and
Customer Advocacy teams.
Max Life Insurance offers a comprehensive suite of Long Term Savings and Protection oriented
products. It currently has 12 products covering and 3 riders that can be customized to suit every
life stage need of the customer. Besides this, the company offers 3 products and 1 rider in group
insurance business.
At Max Life Insurance, providing a superior customer experience is central to its vision and the
Company is committed to provide superior service experience to the customer. As a proactive
step towards service excellence, Max Life Insurance has launched the "Treating Customer
Fairly" (TCF) policy. The TCF policy aims to raise standards in the way the Company interacts
with customers at every touch point right from the pre-sales engagement to the payment of
benefits.
Max Life Insurance follows a prudent investment philosophy to optimize risk management in its
bid to provide maximize returns to policyholders. Investments are in instruments which are safe
and provide good returns in the long run.
The company values human capital and considers it to be its competitive advantage. Max Life
Insurance believes that people are its biggest organizational assets and hence lays a strong
emphasis on employee friendly practices leading to high levels of employee engagement and
motivation. This is reflected in the recognition that the company received from the Great Places
To Work Institute, India, as one of the best workplaces in the industry.
Max Life insurance works closely with Max India Foundation, an independent social service
organization of the Max India Group for all its CSR activities. The company has taken up
immunization programme as a societal agenda to ensure protection against major ailments for the
next generation of the country. The programme covers vaccines like BCG, Hepatitis B vaccine,
Polio drops, DPT, D Tap, Measles vaccine, MMR, Typhoid, dT and TT.
Max Life Insurance has always believed in setting new benchmarks in quality of service and
product offerings to its stakeholders and its efforts have been duly recognized over the years.
Some of the awards and accolades won by Max Life Insurance in the recent year are as follows:
Recognized as a 'Superbrand of the Year' 2013-14
Ranked 8th amongst the Most Trusted Life Insurance companies in Brand Equity (The
Economic Times) survey
Golden Mikes 2014, the most coveted Indian Radio awards, for Max Life Insurance i-
genius
Amongst the top 100 'Great Place to Work'- 3rd year in a row
Awarded 'Celent Model Insurer Asia - Distribution Agent Channel' for New Work
System
'BIG Data & Business Analytics Award' for Business Analytics and Performance
Management Leadership
Project Unnati recognized at the ASQ World Conference 2013
3.1RESEARCH METHODOLOGY
3.1.1 RESEARCH: meaning and concept
Research refers to any original and systematic investigation undertaken in order to increase
knowledge and to establish facts and principles. It is an organized and systematic activity and
may lead to new and improved insights, development of new products and processes. Thus
research is an µorganized and µsystematic way of finding answers to questions or finding
solutions to problems. Research is said to be systematic because, it involves the following of
definite set of steps in order to arrive at some conclusion.
Also it is said to be organized, as it is a planned procedure which is focused and having a well
defined scope, i.e. it has a structure and method. Research is aimed at finding answers ± maybe
to simple questions or for some hypothesis. It is said to be successful when answers are found.
Lastly, questions constitute the main component of research because if there is no question, then,
it follows that there can be no research. This is so, since the dynamics of research invariably
involves the process of focusing on relevant, useful and important questions. The questions for
the same may originate from management dilemma.
Fact-finding enquiries of different kinds. The major purpose of descriptive research is
description of the state of an affair, as it exists at present. Research methodology refers to the
tools and methods used for obtaining information for the purpose of the subject under
study. The methodology followed for the purpose of finding customers response will be
Random sample survey.
3.1.2 Types of Research
1. Descriptive
It includes surveys and fact finding enquires. Main aim is to describe the state of affair as
it is exists at present. The researchers have no control over variable. They can report what
has happened or what is happening. It is also known as Ex Post Facto.
2. Analytical
In this research, researcher has to use facts or information already available and analyzed
it to make a critical evaluation.
3. Applied
Aims at finding a solution for immediate problem faced. It applies theories and models
already developed to the actual solution of the problem.
Aim is not to develop theories but to test the theories in actual situation.
4. Fundamental
It is a formal and systematic process which aims to develop theories or model.
All important variables are identified in fundamental research. It involves selecting
appropriate sample so that generalization can be done.
5. Quantitative
It is based on the measurement of quantity or amount. It can be applied to these concepts
which can be expressed in terms of quantity.
6. Qualitative
It is concerned with the qualitative aspects.
7. Conceptual
It is related to some abstract ideas or theories. Generally used by philosophers or thinkers
to develop new concepts.
3.2 DATA COLLECTION
Data base helps your team to assess the health of your process. To do so, you
must identify the key quality characteristics you will measure, how you will measure them, and
what you will do with the data you collect.
Data base is nothing more than planning for and obtaining useful information on key quality
characteristics produced by your process. However, simply collecting data does not ensure that
you will obtain relevant or specific enough data to tell you what is occurring in the process.
3.2.1Primary data
Primary research consists of a collection of original primary data collected by the
researcher. It is often undertaken after the researcher has gained some insight into the
issue by reviewing secondary research or by analyzing previously collected primary
data.[clarification needed] It can be accomplished through various methods, including
questionnaires and telephone interviews in market research, or experiments and direct
observations in the physical sciences, amongst others.
3.2.2Secondary data
Secondary source of information was internet and various other articles in magazines, pamphlets
etc.These was some of the sources through which up-to-date and relevant data was collected. It is
one of the best methods to collect data because of economy in terms of time and money. The tool
used for data collection in this project is SECONDARY DATA:
The secondary data tools used in the project are books and internet. I refused to various articles
and data on internet. The founding’s of other people were also used to achieve appropriate data.
The secondary data thus collected helped to get refined and reliable data.This Project report is
made on the basis of secondary data.
3.3TOOLS ANALYSIS
Observation and descriptive survey methods used to collect the data about the features,
expectations, satisfaction, problems etc. the customers.
3.4SAMPLING DESIGN
Data was collected through questionnaires
Sample Size :- 100
Sample Area :- New Delhi
Sample Method :- Random sampling method
A survey was conducted in which 100 people were asked to fill the questionnaire. I will be using
statistical method for sample size determination.
1. Table is showing the sex ration of the respondent while takinf the sampling in the delhi
reason.
INTERPRETATION
From the above data we found that out of 100 respondent, 60 respondent are male, and 40 are
female.
0
10
20
30
40
50
60
70
male female
no. of respondent
2. Table is showing showing the age group of the respondents
INTERPRETATION
From the above data we found that 10% of the people of age group18-25, 25% of the people
are of age group 26-35,50% are of age group 36-45, and remaining 15% is taken by the age
group above 45.
0
10
20
30
40
50
60
age 18-25 26-35 36-45 above 45
3. Table showing What kind of policies do you think MNYL provide?
INTERPRETATION
From the above data we found that Out of 100 respondent 30 of the people currently taking the
individual life insurance policies and 14 Group insurance,22 Children policy,15 aged are taking
Retirement benefis there are 19% of people are taking all of the above policies of max life
insurance co.
0
5
10
15
20
25
30
35
Answer Individual
life
insurance
Group
insuranceChildren
policyRetirement
benefisAll of above
4. Table showing respondent Have ever been solicited by a MNYL advisor?
INTERPRETATION
From the above data we found that Out of 100 respondent 30% of the people have solicited by
max new york life insurance advisor and there are 70 didn’t solicited by max life insurance co.
advisor.
0
10
20
30
40
50
60
70
80
Answer yes no
5. Table showing the occupation of the respondent.
INTERPRETATION
From the above data we found that 35% of respondent are from business,20% respondent are
from service,30% respondent are fromprofession,15% respondent are from other occupation.
0
5
10
15
20
25
30
35
40
BUSSINESS SERVICE PROFESSION ANY OTHER
NO. OF RESPONDENT
6 Table showing the occupation of the respondent.
INTERPRETATION
From the above data we found that10% of respondent belong to the income group of below
250000,29% of respondent belong to the income group of 250000-400000,49% of respondent
belong to the income group of400000-600000, remaining 12% of respondent belong to the
income group of above 600000.
0
10
20
30
40
50
60
no. of respondent
7. Table showing why people by the insurance policy.
INTERPRETATION
From the above data we found that 45% of respondent buy the policy for safety of life,25% of
respondent buy the policy for investment, 20% of respondent buy the policy fortax saving, 10%
of respondent buy the policy for other.
0
5
10
15
20
25
30
35
40
45
50
safety of life investment tax saving other
Series1
8. Table showing that people are associated with which insurance company.
INTERPRETATION
From the above data we found that 45% of respondent associated with MAX, 15% of respondent
associated with ICICI,20% of respondent associated with LIC, 15% of respondent associated with BIRLA SUN,5% of respondent associated with other.
0
5
10
15
20
25
30
35
40
45
50
MAX ICICI LIC BIRLA SUN OTHER
Series1
9. Table is showing how people come to know about tha max insurance policy.
INTERPRETATION
From the above data we found that 25% of respondent get information from agents,50% of
respondent get information from newspaper, 10% of respondent get information from internet, 15% of respondent get information fromother.
0
10
20
30
40
50
60
agent/advisor newspaper internet other
Series1
10. Table showing how max new york life insurance co. is performing.
INTERPRETATION
From the above data we found that majority of people think that the max insurance co. perform
good, 25% of people think that the max insurance co. perform fair, 15% of people think that the max insurance co. perform poor, and rest of the respondent cant say.
0
10
20
30
40
50
60
good fair poor cant say
5.1 FINDING OF THE STUDY
From the questionnaire it was found out that mainly people take policy of MNYL insurance co.
and most of them visited for solicited by a MNYL advisor.
The general awareness about the policy is very good and people like to coming here
as they find that MNYL better as compared to other insurances company.
Few years back MNYL is not common among the customer. But now alomost people
take MYNL policy.
Mostly the consumers are satisfied with the services provided by the MNYL.
Maximum numbers of consumer are loyal to there particular service providers and
they were using there policies since 1 to2 years.
5.2 CONCLUSION
MAX NEW YORK LIFE ENTERS “THE GUINNESS BOOK OFWORLD RECORDS”
Creates world record for the world’s largest umbrella Our exhaustive research in the field of Life
Insurance threw up some interesting trends, which can be seen in the above analysis. A general
impression that we gathered during Data collection was the immense awareness and knowledge
among people about various companies and their insurance products. People are beginning to look
beyond LIC for their insurance needs and are willing to trust private players with their hard earned
money. People in general have been impressed by the marketing and advertising campaigns of
insurance companies. A high penetration of print, radio and Television Ad campaigns over the
years is beginning to have its impact now .Another heartening trend was in terms of people
viewing insurance as a tax saving and investment instruments as much as a protective one. A very
high number of respondents have opted for insurance for such purposes and it shows how
insurance companies have been successful to attract public money in recent times. The general
satisfaction levels among public with regards to policy and agents still requires improvement. But
therein lies the opportunity for are native player like Max New York Life. LIC has never been
known for prompt service or customer oriented methods and Max New York Life can build on
these factors.
6.1 SUGGESTION
1. As the people think that insurance is a tool to protect their family & a tax saving device. They
areaware of the fact & realizing its, importance. There is a large potential for insurance in India.
2. The entrance of private players will increase the competition and it would be a tough task to
securea good position in market.
3. Since Max New York Life Insurance is leading with several companies’ policies it should be
easyfor them to penetrate into the market and secure a good position if they pay
greater attention to theservice part provided to their customer and thereby forming a long and
trusted relationship.
4. As seen from the survey that at present 70% of the customer are having insurance
policy out of which 87.5% of the customer are planning for new investments. So it can be a
good potential for thecompany and they should make an attempt to trap these customers.
5. As 43% of the customers are even ready to go for insurance if a service provider away from
their city is providing it. But inturn they should provide good products and services. The
company shouldtry to convince these customers and get them in its favor.
6.2 BIBLIOGRAPHY
WEBSITE REFFERED
www.Max newyorklife.com
www.indraindia.com
www.hindubusinessline.com
QUESTIONNAIRE
Table is showing the sex ration of the respondent while taking the sampling in the Delhi region
NAME
:_________________________
ADDRESS
:______________________ ______________________________
OCCUPATION:
___________________
1. The Sex Ration Of The Respondent While Taking The Sampling In The Delhi region.
Male
Female
2. The Age Group Of The Respondents.
18-25
26-35
36-45
Above 45
3. What Kind Of Policies Do You Think
Individual Life Insurance
Group Insurance
Children Policy
Retirement Benefit
All Of The Above
4. Respondent Have Ever Been Solicited By A MNYL Advisor?
Yes
No
5. The Occupation Of The Respondent.
Business
Service
Profession
Any Other
6. The Occupation Of The Respondent.
Below 250000
250000-400000
400000-600000
Above 600000
7. Why People By The Insurance Policy.
Safety For Life
Investment
Tax Saving
Other
9. People Are Associated With Which Insurance Company.
MAXC
ICICI
LIC
BIRLA SUN
OTHER
10. How Max New York Life Insurance Co. Is Performing.
GOOD
FAIR
POOR
CANT SAY