INSURANCE AND RISK MANAGEMENT

-EXCERCISE REPORT

COMPANY: MAX NEW YORK LIFE INSURANCE

NAME: R.CHITHRA

REVATHY

SANKHAVI.M.R

ANJALI

TEAM: 9

DATE: 08-12-2010
INTRODUCTION:

Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited, one of
India's leading multi-business corporations and New York Life International, the international arm of
New York Life, a Fortune 100 company. 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. It is the first Life Insurance Company to be awarded the ISO 9001
certification. Max New York Life Insurance covered 139.43 lacs lives providing a total insurance
cover of around Rs. 1,40,000 crores to its customers. The total Capital injected by shareholders till
date stood at Rs 1,973 crores. The asset under management is Rs. 10,960 crores.

Incorporated in 2000, Max New York Life started commercial operation in April 2001. 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 as on 31st August, 2010 is Rs
1,973 crore. It is one of the leading private sector life insurance companies in India

TYPES AND NUMBER OF PRODUCTS:

Max New York Life offers a suite of flexible products. It now has 25 products covering both life and
health insurance and 8 riders that can be customized to over 800 combinations enabling customers
to choose the policy that best fits their need. Besides this, the company offers 6 products and 7
riders in group insurance business. Some of the products available and its detail description are as
follows,

Life Plans

1. Max New York Life Platinum Protect – It is a comprehensive solution that fulfils all the
protection needs for a family.
2. Whole Life Participating Plan : Is a policy which can avail till the age of 100years. It’s a
lifetime security plan. 
3. 20year Endowment (Par) Plan : Is an endowment plan where on its maturity at the end of
20 years, this policy gives a guaranteed sum also any bonus it accumulates.
 4. Endowment to age 60 (Par) Plan : is a policy that helps to save mainly for retired life. The
policy matures after 60th birthday and can use the funds in any way as insured’s wish.
5. Life Gain Plus 20 participating plan : Is a plan that provides with an insurance cover that is
guaranteed for 20 year.
6. Life Gain Plus 25 : is a limited pay endowment plan to meet financial goal and save for any
need after 25years.
7. Life Pay Money Back Plan : Is a plan where it keeps paying part of the Sum Assured at
regular intervals and the balance keeps growing to take care of long term saving needs.
Besides it also provides insurance coverage till maturity.
8. Life Gain Endowment Plan: Is a plan which provides an insurance cover that is guaranteed
during the tenure of the policy.

Growth Plans

1. Max New York Life Shubh Invest – It is a simple yet powerful solution, and is an ideal plan to start
the journey towards financial independence.

Health Plans

1. Max New York Life Lifeline Medicash Plus – It is provide the support by giving hospital cash
benefit, whenever the person is hospitalized. 
2. Max New York Life LifeLine Safety Net – Its offers a term cum health insurance - LifeLine-
Safety Net , the new age insurance covering death, disability, disease and accident under
one single plan.
3. Max New York Life LifeLine Healthy Family - The Most Comprehensive Health Insurance
Plan.
4. Max New York Life LifeLine Wellness Plus – It’s provide a wonderful benefit system in terms
of long tenure of coverage, coverage for 38 critical illnesses and tax benefit.

Children Plans

1. Max New York Life Shiksha Plus II – It is a 360 degree child plan that provides for over all
development of the child in all the circumstances. 
2. Max New York Life Smart Bond - The smartest way to ensure maximum protection for the
family with minimum investment.
3. Smart Steps : Is a regular premium unit linked life insurance children plan.
 4. Smart Steps Plus : A regular premium unit linked life insurance plan to fulfil for the
children’s future requirements. 
5. SMART Steps Single Premium : Is a policy which will help you plan for the child's future in an
orderly manner.
6. Children's Endowment Participating Insurance to age 18 : Is a life insurance plan where it
helps the insured to provide for the child’s higher education.
7. Children's Endowment Participating Insurance to age 24 : This plan helps to provide for
various events in the child’s life such as a marriage and other needs.

Retirement Plan

1. Life Partner plus Plan: Is a limited pay endowment plan to Age 75. The benefits of this plan are
gives the maturity benefits at the age of 75, provides a life coverage insurance and helps in financial
needs to the family of the policyholder in case of his death.

2. Easy Life retirement (par) Plan: Is a plan with regular premium or single premium policy to meet
the future needs that is at the time of retirement.

3. Smart Invest Pension Plan: Is a comprehensive unit linked pension plan to meet the post
retirement financial needs.

Group Plans

1. Group Credit Life.

2. Max Super Life.
3. Group Gratuity cum Term Assurance.
4. Unit Linked Group Gratuity Plan.
5. Unit Linked Superannuation Plan.
6. Group Term Life.
7. Employee Deposit Linked Insurance.

PREMIUM:
The premium is calculated differently for different policies like traditional, ULIP and health
policies. The calculation is based on the customer’s requirements and it will be invested in
government securities and investment bonds. Unit link insurance plan can be divided as 50% equity
and 50% bond or 100% equity or 100% bond. The payment of the premium can be done in different
ways. The following shows the different ways of paying the premium.
 Online Policy Renewal- One can make online payment of premium anytime and from any
location at a click of the mouse by using the online payment facility. This facility is currently
offered to all the policyholders to make renewal premium payments and revive their policies
through our website. 
 Credit card standing instruction- One can pay your premiums using credit card
(Master/Visa). In this premium payment mode we will charge the premium amount, when it
is due, to credit card. One simply need to fill up the credit card standing instruction form and
send it to the company along with the photocopy of the front side of the credit card.
 Sky pack drop box- Max New York Life has 1402 drop-boxes in India to ensure that the
premium can be paid with minimum effort. These drop-boxes are cleared everyday (except
for national holidays and Sundays) and sent for clearance the very next day.
 ECS- Electronic Clearing System is an automated facility that debits the premium from the
bank account as per draw date opted. To avail this facility, there are 80 ECS location to
submit the ECS form along with a cancelled cheque 30 days before policy.
 Drop cheques at any Yes banks- Max New York Life has tied up with Yes Bank for the Drop
Box facility at their Banks and ATMs. The Policy Holders can Drop their cheques at any Yes
Bank Branches or ATM Drop Boxes.
 Payment at Branch Office- The premiums can be paid in the branch office using any of the
following Premium Payment options like, Cash, Cheque and Credit Card.
 Bill Desk- One can authorize the premium payments through Electronic Bill Payment with Bill
Desk.
 Tech Process- One can authorize the premium payments through Electronic Bill Payment
with Bill Junction.
 M Commerce- One can make the premium payments using a new technique - SMS. This is an
option to pay the insurance premiums on a secure and unique platform using GSM mobile
 phones. MNYL offers this excellent facility to all the policyholders to make renewal premium
payments and revive their policies.
 I pay electronic drop box- I-Pay Electronic Drop Box is a compact self service premium
option. The I-Pay Electronic Drop Box with state of the art functionality provides Instant
Acknowledgement to customer.
 Easy bill- Through, Easy bill mode of depositing Renewal Premium Payment the Policyholders
can deposit their Renewal Premium Payments through cheques at the various retail outlets
in their locality. Only local & current dated cheques would be accepted. No post dated
cheque and upcountry cheques will be accepted through Easy bill.
 IVR- One can now pay the premiums through the state-of-the art Interactive Voice Response
system available 24*7. This service also provides round-the-clock information on due date,
payment status, premium receipt, local office addresses, NAV etc.

HIGHEST POLICY AMOUNT:

The highest policy amount of the policy holder is 20 crores.

CHANNELS OF DISTRIBUTION:

The channels of distribution can be done in the following ways,

 Agency Channel:
In Max New York Life Insurance business is done mainly through the agency advisor.
In India, the company has more than 55,000 advisors. The Company places a lot of
emphasis on its selection process for agent advisors, which comprises four stages -
screening, psychometric test, career seminar and final interview. The agent advisors
are trained in-house to ensure optimal control on quality of training. Max New York
Life has put in place a unique hub and spoke model of distribution to deepen our
rural penetration. This is the first time such a model has been put in place for rural
marketing of insurance. There are 2 programs run under the agency channel. They
are,
Agency Association Program (AAP)
Corporate Employees Insurance Plan (CEIP)

 Bancassurance:
This is an innovative distribution channel where the banks are involved to sell the
insurance products of the company. MNY Life Insurance has tied-up with Yes bank.
  Direct Sales Team (DST):
MNY Life Insurance makes a database of potential customers and their details.
They contact them and market different policy of the company.
 Alternate Channels:
Business is done through other means like associate partners, internet etc.

BOARD OF DIRECTORS:

The board includes Mr.Analjit Singh as the Founder and Executive Chairman of Max India
Group. He is also the Consul General of the Republic of San Marino in India. And Mr. Anuroop Singh
is the Vice Chairman of the company with Mr. Rajesh Sud as the CEO and Managing Director of the
company. The directors of the company are, Mr. William Beaty, Mr. Richard L. Mucci, Dr. Omkar
Goswami and Mr. Leo Puri.

BENCHMARKS/REPORTS OF THE COMPANY:

 First company to provide free look period of 15 days to the customer. This was later made
mandatory by the regulator
 First company to start toll free line for agent services
 First and the only life insurance company in India to implement Lean methodology of service
excellence in service industry
 First life insurance company in India to provide various services to the agents and customers
over phone
 First Indian life insurance company to start service centre at the regional level
 First life insurance company in India to receive ISO 9001:2000 certification
 First life insurance Company to be awarded CII-EXIM Bank commendation certificate for
“Strong Commitment” to Excel.

CONCLUSION:

Insurance is a contract wherein one party (the insurer) agrees to pay to the other party (the insured)
or his beneficiary, a certain sum upon a given contingency (the risk) against which insurance is
required. 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. So
in today’s competitive world all the insurance company must follow the footsteps of Max New York
Life Insurance. Max New York Life is the first company to be awarded license by IRDA after
liberalization of the insurance industry. The Company's paid up capital is Rs. 657 crores, which is
more than the norm laid down by IRDA. It has positioned itself on the quality plat form and it has
developed a strong corporate governance model based on the core values of excellence, honesty,
knowledge, caring, integrity and teamwork. The main strategy is to establish itself as a trusted life
insurance specialist through a quality approach to business. Their financial practices are prudent
enough to ensure safety of policyholder's funds. Its primary channel of distribution is individual
agents.