overview max new york life insurance company ltd[1]

MAX NEW YORK LIFE INSURANCE

K.C COLLEGE OF MANAGEMENT STUDIES

SALES MANAGEMENT

PROJECT ON

MAX NEW YORK LIFE INSURANCE.

SUBMITTED TO:

PROF: KRISHNAMURTHY

SUBMITTED BY:

JAYNA JAIN 18

HARSH PATHAK 36

HITESH RAMNANI 38

JINAL SHAH 39

KC COLLEGE OF MANAGEMENT STUDIES


INDEX

SR.NO TOPIC

1. INTRODUCTION OF INSURANCE

2. COMPANY PROFILE:


3. PRODUCTS OF MNYL

4. REWARD & RECOGNITION

5. RECRUITMENT & SELECTION

6. PROSPECT BIFERCATION

7. TRAINING & DEVELOPMENT

8. RECOMMENDATIONS

9. CONCLUSION

1. INTRODUCTION OF INSURANCE



Insurance or assurance, device for indemnifying or guaranteeing an

individual against loss. Reimbursement is made from a fund to which many

individuals exposed to the same risk have contributed certain specified amounts,

called premiums. Payment for an individual loss, divided among many, does not

fall heavily upon the actual loser. The essence of the contract of insurance, called a

policy, is mutuality. The major operations of an insurance company are

underwriting, the determination of which risks the insurer can take on; and rate

making, the decisions regarding necessary prices for such risks. The underwriter is

responsible for guarding against adverse selection, wherein there is excessive

coverage of high risk candidates in proportion to the coverage of low risk

candidates. In preventing adverse selection, the underwriter must consider

physical, psychological, and moral hazards in relation to applicants. Physical

hazards include those dangers which surround the individual or property,

jeopardizing the well-being of the insured. The amount of the premium is

determined by the operation of the law of averages as calculated by actuaries. By

investing premium payments in a wide range of revenue-producing projects,

insurance companies have become major suppliers of capital, and they rank among

the nation's largest institutional investors.

In simple terms, insurance allows someone who suffers a loss or accident

to be compensated for the effects of their misfortune. It lets you protect yourself

against everyday risks to your health, home and financial situation.



The Insurance Act, 1938

The Insurance Act, 1938 was the first legislation governing all forms of

insurance to provide strict state control over insurance business. You can download

the act by clicking here

Life Insurance Corporation Act, 1956

Even though the first legislation was enacted in 1938, it was only in 19

January 1956, that life insurance in India was completely nationalized, through a

Government ordinance; the Life Insurance Corporation Act, 1956 effective from

1.9.1956 was enacted in the same year to, inter-alias, form LIFE INSURANCE

CORPORATION after nationalization of the 245 companies into one entity. There

were 245 insurance companies of both Indian and foreign origin in 1956.

Nationalization was accomplished by the govt. acquisition of the management of

the companies. The Life Insurance Corporation of India was created on 1st

September, 1956, as a result and has grown to be the largest insurance company in

India as of 2006.

General Insurance Business (Nationalization) Act, 1972

The General Insurance Business (Nationalization) Act, 1972 was enacted to

nationalize the 100 odd general insurance companies and subsequently merging

them into four companies. All the companies were amalgamated into National

Insurance, New India Assurance, Oriental Insurance, United India Insurance which

were headquartered in each of the four metropolitan cities.



Insurance Regulatory and Development Authority (IRDA) Act, 1999

Till 1999, there were not any private insurance companies in Indian

insurance sector. The Govt. of India then introduced the Insurance Regulatory and

Development Authority Act in 1999, thereby de-regulating the insurance sector

and allowing private companies into the insurance. Further, foreign investment was

also allowed and capped at 26% holding in the Indian insurance companies. In

recent years many private players entered in the Insurance sector of India.

Companies with equal strength competing in the Indian insurance market.

Currently, in India only 2 million people (0.2 % of total population of 1 billion),

are covered under Mediclaim, whereas in developed nations like USA about 75 %

of the total population are covered under some insurance scheme. With more and

more private players in the sector this scenario may change at a rapid pace.



MARKET ENVIRONMENT OF LIFE INSURANCE SECTOR IN INDIA

Growth of private sector



MARKET SHARE OF PRIVATE & PUBLIC SECTOR



2. MAX NEW YORK LIFE INSURANCE

Max New York Life Insurance Company Ltd. is a joint venture between

New York Life and Max India Limited. New York Life is a Fortune 100 company

and Max India Limited is one of India's leading multi-business corporations. The

company has positioned itself on the quality platform. It has developed a strong

corporate governance model based on the core values of excellence, honesty,

knowledge, caring, integrity and teamwork.

The strategy is to establish itself as a trusted life insurance specialist through a

quality approach to business. In line with its values of financial responsibility, Max

New York Life has adopted prudent financial practices to ensure safety of

policyholder's funds. The Company's paid up capital is Rs. 657 crore, which is

more than the norm laid down by IRDA. Max New York Life has identified

individual agents as its primary channel of distribution.



MDRT is an exclusive congregation of the world’s top selling insurance

Agents and is internationally recognized as the standard of excellence in the

Life insurance business. Having set a best in class agency distribution model in

place, the company is spearheading a major thrust into additional distribution

channels to further grow its business. The company is using a five-pronged

strategy to pursue alternative channels of distribution. These include the franchisee

model, rural business, direct sales force involving group insurance and

telemarketing opportunities and corporate alliances. Max New York Life offers a

suite of flexible products. It now has 26 life insurance products and 8 riders that

can be customized to have more than 400 products.

Vision

To become the most admired life Insurance Company in India.

Mission

To become one of the top quartile life Insurance companies in India.

Be a national player.

Be the brand of the first Choice.

Be the Employer of the Choice.

Become principal of choice for agents.

Values

This vision to become India's most admired life insurance company will be

realized through our unique set of values, which are as follows:



Achievements

✔ First life insurance Company in India to have IS0 9001:2000 certifications.

✔ Top five most respected private life insurance in India according to Business

World survey.

✔ Continuous presence in Top 50 MDRT global list.

CSR

Max New York Life has been instrumental in changing the paradigm of

life Insurance in India. It is the first life insurance company in India to introduce

cause related marketing.

Children are at the very heart of Max New York Life's strategy. SOS Children's

Villages of India is internationally recognized for its work in giving

Underprivileged children a wholesome life. The mission of SOS is "to help

Orphaned and abandoned children, by providing them with a family, a permanent

home, education and strong foundation for an independent life." It's mission ties in

with Max New York Life's philosophy of helping people secure the future of their

near and dear ones.

The company donates a part of the total money collected on all policies sold,

to SOS Children's Villages of India at the end of the year.

FACT SHEET – As of November 30th, 2009



Founded

2000

Started Operations April 2001



Headquarters New Delhi, India

World Wide Web Address http://www.maxnewyorklife.com

Chairman Analjit Singh

CEO & Managing Director Rajesh Sud

Paid-Up Capital Rs. 1,782 crore

Sum Assured Rs 1,10,134 crore

Number of Policies Sold More than 4.1 million

Employees 11,178

Agent Advisors 82,248

Number of Products (Individual) 39

Number of Riders/Options

(Individual)8

Product Combinations Possible

(Individual)Over 800

Number of Products (Group) 6

Number of Riders/Options (Group) 7

Number of Offices 715

Number of Offices Dedicated To

Rural Business 139 (21 hub offices, 118 spoke offices)

MDRTs 218 (for calendar year 2008)

Trainers 807

3. PRODUCTS OF MNYL

Whole Life Plans


http://www.maxnewyorklife.com/


Unit Linked Insurance Plans

Endowment Plans

Children Plan

Money Back Plans

Pension Plans

Health & Accident Related Riders

Life is full of surprises. Unexpected events that strike without warning can disrupt

the smooth rhythm of life. As the primary earning member, you must ensure the financial security of

your family if you are taken away from them forever.

Five Yr Renewable Convertible plan



Life with its fascinating moments also has its share of uncertainties and planning ahead is extremely

important to face all these uncertainties that may arise from time to time. That's the reason you need a

protection plan, which would serve your protection needs and safeguard your family from any financial

insecurity at times of crisis or at the unfortunate event of your demise.

Eligibility Criteria


Age at Entry 20 to 60 years

Maximum Age at Maturity 65 years

Term 5, 10, 15, 20 or 25 years or to Age 60 years

Sum Assured Rs. 2,50,000 to Rs. 5 Crore

Premium Payment Options Annual, Semi-annual, Quarterly, Monthly

Max New York Life's Five Year Renewable and Convertible Term Insurance

(Non-Participating) plan not only provide you with a low cost insurance cover

during its tenure of five years, it also helps you plan in advance for various future

needs and your family's financial security, should anything unfortunate happen to

you. Offering a guaranteed Death Benefit, this plan is particularly useful as a short-

term protection plan. An important feature of this policy is that it allows the

insured to convert the policy to a regular policy during the tenure of the policy.

Benefits

On death of life insured: In case of the unfortunate death of the life insured

during the term of the plan, an amount equal to the Sum assured is paid to the



beneficiary.

Tax benefits:

You are entitled to the following tax benefits under Income Tax Act 1961:

Your premiums are eligible for deduction u/s 80C up to Rs.1,50,000/- every

year.

Your DD rider premiums are eligible for an additional deduction u/s 80D up

to Rs.15,000/- every year.

Your claim amounts (from death) are eligible for tax exemption u/s 10(10D).

Unique Features in This Policy:

This plan can be renewed every five years and is convertible to any permanent plan

at any time during the tenure of the plan.

Level Term Policy

In the exciting journey of life, there will be uncertainties, and there will be various

occasions when you have to play or assume added responsibilities being the head

of the family. The much-anticipated arrival of a new member in the family, the

purchase of your dream house, the wonderful event of your marriage, your

children's higher education or their marriage may all be described as planned life

events, but they bring their own share of uncertainties. It is important to be

financially secured and prepared to meet these uncertainties and make your family

feel fully protected, should something unfortunate happen to you.

Max New York Life's Level Term (Non Participating) Policy is a plan that covers your life at a very low cost

and reduces the consequent hardship your family may have to bear in the unfortunate event of your

death. Incase of the unfortunate death of the policy holder during the term of the plan, an amount

equal to the sum assured is paid to the nominee.



ELIGIBILITY CRITERIA

BENEFITS

On death of life insured: In case of the unfortunate death of the life insured during

the term of the plan, an amount equal to the Sum assured is paid to the beneficiary.

TAX BENEFITS:

You are entitled to the following tax benefits under Income Tax Act 1961:

Your premiums are eligible for deduction u/s 80C up to Rs.1,50,000/- every

year.

Your DD rider premiums are eligible for an additional deduction u/s 80D up

to Rs.15,000/- every year.

Your claim amounts (from death) are eligible for tax exemption u/s 10(10D).

Whole Life Participating

With an insurance cover till age 100, Whole Life Participating Plan is designed to

provide you a lifetime of security. The good times that you and your family lead



Age at Entry 18 years to 55 years

Maximum Age at Maturity 60 Years

Term 5,10,15,20 or 25 years or to Age 60 Years

Sum Assured Rs. 2,50,000 to Rs. 5 Crore

Premium Payment OptionsAnnual, Semi-annual, Quarterly, Monthly,

Single


should last a lifetime. However one cannot avoid unpleasant surprises and

misfortunes in life. The Whole Life Plan provides you with the comfort that your

near and dear ones will continue to live their lives in comfort without financial

worries even when you are not around.

The Whole Life Plan provides an insurance cover that is guaranteed for life. The

policy also builds cash value, which you can use to fund any unforeseen needs. In

addition, the policy is also eligible for bonuses. Max New York Life’s savings

plans are designed to provide the customer the dual benefits of protection along

with the potentially higher returns. This plan also allows you to purchase additional

benefits in the form of bonuses that will be paid on maturity of the Base policy or

in the unfortunate event of the death of the Life Insured. Additionally, you can also

continue to invest more funds without having to provide any further evidence of

insurability.


Criteria Eligibility

Entry age 91 days to 70 years

Maximum Maturity Age 100 years

Premium Payment Term Regular

Minimum Sum Assured Rs. 100,000

Maximum Sum Assured Rs. 5 Crore

Benefits

Maturity Benefit



We will pay an amount equal to Sum Assured along with accrued bonus (if any)

Death Benefit

We will pay an amount equal to Sum Assured along with accrued bonus (if

any)

If death occurs before life insured reaches age 10 , the company will refund

all the premiums paid along with interest

Option to Participate in Progressive Bonuses

It allows you to top up your premiums to purchase additional Sum Assured

towards your existing policy. It also generates further bonuses.

Bonus Options

Paid in Cash

Premium Offsett

Paid up Additions

Non-Forfeiture Options

In case you are unable to pay your premiums, your policy will lapse and we will

utilize your cash value to buy you insurance coverage in one of the following

ways:

Reduced Paid Up: A lower Sum Assured for the remaining term of your policy

Extended Term Insurance: The same Sum Assured is for part of the remaining

term of your policy

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

by cheque



Life Gain™ Plus 25 Participating Plan

Because we understand your needs better.

Max New York Life’s – Life Gain™ Plus 25 is a limited pay endowment plan to

meet your financial goals to ensure your complete peace of mind. You can enjoy

the full benefits of an endowment plan with life insurance that requires you to pay

premiums only over a very limited period, while you get cover for the entire

tenure! Also, your money grows quickly, resulting in a substantial lump sum on

maturity.

In case of unfortunate death, this plan also provides sum assured plus additional

insurance coverage purchased from bonuses for first 5 years and then doubles the

same afterwards.

You can also customize your policy to meet your specific needs. We offer you the

flexibility to enhance the value of your policy by using various rider options

available. In addition, you are also eligible for bonuses and terminal illness

benefits, where you can use 50% of your sum assured at the time of your treatment

and the balance of the sum assured will be payable to your family on the

occurrence of the insured event.

This policy helps you save for any specific need that you foresee 25 years down

the line.




Criteria Eligibility

Entry age 18 years to 50 years

Maturity age 75 years

Premium Payment Term 6 / 10 / 15 years

Minimum Sum Assured Rs. 50,000

Maximum Sum Assured No limits, subject to underwriting

Living Benefit

Sum Assured plus accrued bonus plus Guaranteed Additions @ 10% of Sum

Assured.

Death Benefit

In the first five years - Sum Assured plus additional insurance coverage

purchased from bonuses.

After five years - Double the Sum Assured plus additional insurance

coverage purchased from bonuses.

Bonus Option

Paid in Cash

Premium Offsett

Paid up Additions

4. REWARD AND RECOGNITION



1) Premium Leader



Qualifying Criteria- Rs. 1 Lakh AFYP in a month Reward and Recognition-

Mention in leaders Report, Lunch

2) Ten-A-Monther

Qualifying Criteria- 10 applications in a month and Rs. 30,000 AFYP Reward and

Recognition- MNYL Crystal Glass, mention in Leaders Report, Lunch.

3) Hi-Flier

Qualifying Criteria- 20 applications in a month Reward and Recognition- MNYL

Silver Medal, MNYL Crystal Glass, Mention in leaders Report, Lunch

4) Career Success Award

Qualifying Criteria- 15 paid cases & Rs. 40,000 FYC at the end of month 3

Reward and Recognition- Recognition Award

5) Career Producer Award

Qualifying Criteria- 25 paid cases & Rs. 80,000 FYC at the end of month 6

Reward and Recognition- Recognition Award

6) Career Foundation Club

Qualifying Criteria- 50 paid cases & Rs. 1.8 lakhs FYC in July- June For Recruits

during this period. Reward and Recognition- Attend CFC meeting to be held at

Zone level



7) Paid Case, FYC, Persistency, rider, Referral and CEIP Leader

Qualifying Criteria- Top Agent in each category in each GO Reward and

Recognition- Recognition Plaque

8) Agent of the Year

Qualifying Criteria- Highest Points in each GO Reward and Recognition-

Recognition Award

9) Centurion

Qualifying Criteria- 100 net paid cases in a year Reward and Recognition-

Centurion Trophy

10) Paul Colgan Trophy

Qualifying Criteria- Highest FYC with 100 or more paid cases and 95% Or more

13th month persistency Reward and Recognition- Recognition Trophy

11) Executive Council

Qualifying Criteria- July 2006 to June 2007: 4,30,000 Council Credits January 07

to June 07: 1,60,000 Council Credits 40 paid cases in the Council Period. Reward

and Recognition- Trip to Malaysia to attend the Executive Council Meeting.

12) MDRT (Million Dollar Round Table)

Qualifying Criteria- MDRT FYC Rs. 7,19,800 Premium Rs.14,39,600 Reward and

Recognition- MDRT dues for all qualifiers. Top 35 by FYC Will bear domestic

travel and visa costs. Next 15 will bear Registration fees, domestic travel and visa

costs. Rest All will bear international airfare, domestic travel and Visa costs.



13) CEO’S Council

Qualifying Criteria- July 2006 to June 2007: 8,00,000 Council Credits Jan 2007 to

June 2007: 3,20,000 Council Credits Reward and Recognition- Trip to Amsterdam

to attend the CEO Council meeting.

5. RECRUITMENT AND SELECTION

The Company places a lot of emphasis on its selection process, which



Comprises four stages –

Screening,

Psychometric test,

Career seminar

Final interview

FOUR CRITERIA’S FOR AA SELECTION

1. 25 plus years of age:

This age shows attainment of maturity and responsibility. People are more

consistent in this age.

2. Married:

Married people have more eager to earn money. Family pressures

increaseresponsibility and secondly customers are convinced more by the stability

of a married AA.

3. Staying in the same city for more than 5 years:

Person who stays more than 5 year has huge natural market which helps him to get

more business in short period.



4. Graduate:

Graduate people have basic skills like communication skills, numerical ability, I.P

relation, convincing abilities etc. so it is easy to teach them further.

OTHER CRITERIA FOR AA SELECTION:

1. Financial stability:

MNYL is focuses on classes and not on masses thus they select strong agent

advisors.



2. To have a rich and active social circle:

it helps to get higher case rate and case size. Also the chances of policy lapsing can

be less and renewals can be more.

3. Greed for money:

Firm selects advisors who understand the language of commission. Because people

who want fix amount as their earnings are not suitable for this business.

4. Independent:

MNYL select people who want to be entrepreneur. Housewives or brokers who

want flexible hours for work are prospective person for this business.

5. Persuasion:

He should be persuasive in nature because the AA needs to follow up on regular

basis with prospective and new clients without being a nuisance value.

6. Excellent interpersonal skills:

Because developing and maintaining good relations can get policies. Secondly

since most of the insurance companies provide a plethora of similar products, sales

depend on the convincing ability of the AA and the rapport the AA is bale to build.

Also results in C of I’s.

7. Excellent communication skills:



Since AA needs to communicate about the organization, products, career as AA,

about why insurance is important, which product will suit his requirement etc.

6. PROSPECT BIFERCATION


Housewives

Employees having VRS

NSC brokers

Mutual Fund Brokers.

CA’s

Businessman

Tax Consultants

Doctors

Travel agents

Lawyers

DESIRABLE CANDIDATES


This is another method that helps the management trainee and the sales managers

keep a track of the names he has from his natural market as well as through name

gathering,

➢ Cold

Cold is like what u are having. In this column we include all the names

Which we have as a prospect. It includes Centre of Influence names, references,

Nominators, Personal observation names and so on. It is a list of all the names

that we wish to contact in future.

➢ Warm



Once the names mentioned in the cold column are contacted and if any

appointments scheduled at the office wherein initial screening is then conducted

the candidate is then entered in the warm list.

➢ Hot

After being entered in the warm list if any candidate has attended any of the

seminars held at Max New York Life after the initial screening done and if the

candidate has been given P200 (project 200) then the prospective agent is then said

to be entered in the hot list.



7.TRAINING AND DEVELOPMENT

The agent advisors are trained in-house to ensure optimal control on quality

of training.

Max New York Life invests significantly in its training programme. Each agent is

trained for 152 hours as opposed to the mandatory 100 hours stipulated by the

IRDA before beginning to sell in the marketplace. Training is a continuous process

for agents at Max New York Life and ensures development of skills and

knowledge through a structured programme spread over 500 hours in two years.

This focus on continuous quality training has resulted in the company having

amongst the highest agent pass rate in IRDA examinations and the agents have the

highest productivity among private life insurers. 201 agent advisors have qualified

for the Million Dollar Round Table (MDRT) membership in 2005.

Areas of training:

• Company policies and procedures

• Human relations training

• Skill based training

• Problem solving training



Onsite Workshops for Leadership Team

Employees need more than bosses... They need mentors: Professionals skilled at

assessing employee development needs and committed to guiding employees

toward professional success. Team Leadership Workshop provides managers with

proven techniques for effective personnel management. By helping advisors

understand and address their employees' requirements, this interactive seminar

offers significant benefit to managers at all levels. This training program provides

healthy perspectives for managers at all levels, making it an ideal morale-boosting

leadership development experience for mixed groups of front-line supervisors,

advisors and senior staff members.

Leadership Training for Success

All managers need methods. Leaders need to know the most effective techniques

for guiding teams, mentoring individuals, and validating the results. Without solid

methods, managers will revert use a one-size-fits-all approach to leadership that

reflects the leader's personality, rather than the employees' needs. Committed,

mentoring leadership is essential to employee morale, productivity, and retention.

A Results-Oriented Training Program

Team Leadership Workshop provides proven methods and procedures for

successful people management. Participants receive a step-by-step plan for guiding

each employee toward success. This workshop includes elements of Frank Whyte's



nationally respected Team Building Workshops expanding upon that foundation to

help leaders:

• Recognize each employee's personality preferences and supervisory needs.

• Align their leadership style with those of their bosses, colleagues, and

subordinates.

• Develop competent and committed employees by mentoring and guiding their

employees toward success.

• Schedule their management responsibilities to ensure that nothing is left to

chance.

• Use practiced, real-world scenarios to resolve challenges and remove barriers.

Training Program done by Max New York Life

Training is must for every individual when he enters into the organization. Even

though the candidate has experience he also should get training. Why because the

organization culture, values and beliefs are different from one organization to

other. That’s why the training program plays a key role in every

organization.Training program following by Max New York Life Insurance is

different at various levels.Mainly in training program the company concentrates on

sales managers, agents, operations executives and telecallers.



TRAINING PROGRAM FOR SALES MANAGERS:

Training program for Advisors:

• The training program duration of I.R.D.A is 15 – 20 days

• They get training on product knowledge

• How to convince the people.

• Objection Handling

Training program for operations executives:

• They will get training on customer database files

• Taking care of the customer files



• Well trained in product information and documentation

• Renewals will be informed periodically.

Required skills for employees in Max New York Life Insurance:

• Interpersonal skills

• Excellent communication skills

• Understanding nature

• Aggressiveness

• Convincing skills

• Ability to motivate others

• Interest to learn



8. RECOMMENDATIONS

Create awareness: The Company has to take care of awareness creation about

the products and services among the Advisors/Agents

Charges: The Company has to reduce the mortality and administration charges.

The company has to give periodic training.

Product promotion strategies should be improved.

Company should consider the present competition and should act according to

the customer needs.

CONCLUSION



In this Knowledge-based economy, training helps people to learn how to do the

things differently or to the different things. Products are now increasingly

knowledge-intensive; for this employer are responsible for providing opportunities

for continued learning. To cope with the challenges and competitiveness in the

world, every organization needs the services of trained persons for performing the

activities in the systemic way. So, training program plays a key role in individual

as well as organizational performance


overview max new york life insurance company ltd[1]

Documents

insurance act

oriental insurance

national insurance

forms of insurance

contract of insurance

insurance scheme

insurance sector of

private insurance companies