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Life Insurance
Life Insurance
Life insurance is a form of insurance that pays monetary proceeds upon the death
of the insured covered in the policy. Essentially, a life insurance policy is a
contract between the named insured and the insurance company wherein the
insurance company agrees to pay an agreed sum of money to the insured's
beneficiary. With a large population and the untapped market area insurance
happens to be a very big opportunity in India. Today it stands as a business
growing at the rate of 15-20% annually. Together with banking services, it adds
about 7 percent to the country’s GDP. In spite of all this, the growth statistics of
the penetration of the insurance in the country is very poor. Nearly 80% of Indian
population is without life and health insurance cover. This is an indicator that
growth potential for the insurance sector is immense in India. It was due to this
immense growth that the regulations were introduced in the insurance sector and
in continuation “Malhotra Committee” was constituted by the government in
1993 to examine the various aspects of the industry. The key element of the
reform process was participation of overseas insurance companies with 26%
capital. Creating a more competitive financial system suitable for the
requirements of the economy was the main idea behind this reform.
CLASSIFICATION OF INSURANCE
The insurance industry in India can broadly classified in two parts. They are.
1) Life insurance
2) Non-life (general) insurance)
LIFE INSURANCE
Life insurance can be defined as “insurance that provides a sum of money if the
person who is insured dies while the policy is in effect”. In 1818 British
introduced to India, with the establishment of the oriental life insurance company
in Calcutta. The first Indian owned Life Insurance Company was the Bombay
mutual life assurance society which was set up in 1870. The life insurance act,
1912 was the first statuary measure to regulate the life insurance business in
India. In 1983, the earlier legislation was consolidated and amended by the
insurance act, 1938, with comprehensive provisions for detailed effective control
over insurance. The union government had opened the insurance sector for
private participation in 1999, also allowing the private companies to have foreign
equity up to 26%. Following the opening up of the insurance sector, 12 private
sector companies have entered the life insurance business.
Need for life Insurance
The need to safeguard the family brings in the need for life insurance. Today
insurance has become even more important due to the disintegration of the
prevalent joint family system, in which a number of generations co-existed in
harmony, and a system in which a sense of financial security was always there as
there were more earning members.
Times have changed and the nuclear family has emerged. Apart from other
pitfalls of a nuclear family, a high sense of insecurity is observed in it today
besides, the family has shrunk. Needs are increasing with time and fulfillment of
these needs is a big question mark.
How will you be able to satisfy all those needs? Better lifestyle, good education,
a long desired house. But again one just cannot fritter away all your earnings.
You need to save a part of it for the future too – a wise decision. This is where
insurance helps. Factors such as fewer number of earning members, stress,
pollution, increased competition, higher ambitions etc are some of the reasons
why insurance has gained importance and where insurance plays a successful
role.
Life Insurance ensures that a person gates better prepared to face the uncertainties
In the following ways :
PROTECTION
You need life insurance to be there and protect the people you love, making
sure that your family has a means to look after itself after you are gone. It is a
thoughtful business concept designed to protect the economic value of a human
life for the benefit of those financially dependent on him.
RETIREMENT
Life insurance makes sure that you have regular income after you retire and
also helps you maintain your standard of living. It can ensure the post –
retirement years are spent in peace and comfort.
Life insurance is one of the best tax saving options today. Your tax can be saved
twice on a life insurance policy-once when you pay your premiums and once
when you receive maturity benefits.
TYPES OF POLICIES
Though there are a lot of policies available in the market under different names
and by different companies, the policies can be broadly classified into the
following categories.
Terms Insurance policy
Whole Life Policy
Money back policy
Endowment policies
Pension plans or Annuties
FUNCTIONS OF INSURANCE
that give rise to risk. Risk is the basis for determining the premium rate also
Incorporated in 2000, Max New York Life started commercial operation in 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 is Rs. 1,432 core.
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 has multi-channel distribution that includes the agency
distribution, partnership distribution, banc assurance, distribution focused on
emerging markets and alliance marketing through employed sales force. The
company currently has 33 banc assurance relationships, 14 corporate agency
tie-ups and direct sales force at 14 locations. Max New York Life has put in
place a unique hub and spoke model of distribution to deepen rural penetration.
The company has 39 (9 hub office 30 spoke offices) offices dedicated to
emerging markets in Punjab and Haryana. Max New York Life offers a suite of
flexible products. It now has 35 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 4 riders in group insurance business.
The company currently has more than 13,295 employees.
COMPANY PROFILE
Max New York Life Insurance Company Ltd. is a joint venture between New York
Life, a Fortune 100 company and Max India Limited, one of India's leading multi-
business corporations. The company has positioned itself on the quality platform.
In line with its vision to be the most admired life insurance company in India, it
has developed a strong corporate governance model based on the core values of
excellence, honesty, knowledge, caring, integrity and teamwork. The strategy is to
establish itself as a trusted life insurance specialist through a quality approach to
business.
New York Life is a Fortune 100 company that has over 160 years of experience
in the life insurance business. Max India Limited is a multi-business corporate
dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic
Products businesses.
Max New York Life Insurance started its operations in India in 2000. It is the
first life insurance company in India to be awarded the IS0 9001:2000
certifications. Max New York offers customized products tailored to suit
individual's needs. With its various Products and Riders, there are more than 400
product combinations to choose from. Today, Max New York Life Insurance has
a network of 57 offices spread over 37 cities all over India.
In line with its values of financial responsibility, Max New York Life has
adopted prudent financial practices to ensure safety of policyholder's funds. The
Company's paid up capital is Rs. 657 crore, which is more than the norm laid
down by IRDA.
Max New York Life has identified individual agents as its primary channel of
distribution. The Company places a lot of emphasis on its selection process,
which comprises four stages - screening, psychometric test, career seminar and
final interview. The agent advisors are trained in-house to ensure optimal control
on quality of training.
Max New York Life, one of India’s leading life insurance companies, expanded
its presence in the southern region by opening its first general office in the city of
Mysore. Max New York Life now has established a countrywide network of 172
offices and representatives across 120 cities in India. The company has over
25,300 agent advisors, who are widely considered the best in the business. Max
New York Life aspires to be the "life insurance brand of first choice" amongst
Indian consumers.
“Max New York Life wants people to view insurance as a financial protection and
wealth creation instrument and not just a tax-saving tool. Since the launch of our
operations, our focus has always been on providing risk protection and longterm
wealth creation solutions to our customers. With a diverse product portfolio to
meet customer requirements, it is evident that we are setting benchmarks in the
marketplace and are well on course of realizing our vision to become India’s most
admired Life Insurance Company.
VISION:
Vision statement is “Most Admired Life Insurance Company in
India".
MISSION:
• Become one of the top quartile life insurance companies in India
• Be a national player
• Be the brand of first choice
• Be the employer of choice
• Become principle of choice for agents.
INSURANCE MANAGEMENT SOLUTION
Types of business proposal
• Internal business proposal
For organizations we have a host of customized solutions that range from group
term Insurance, gratuity leave and encashment and superannuation products.
These affordable plans apart from providing long term value to the employees
help in enhancing goodwill of the company.
Protection Plans
Life is full of surprises. Unexpected events that strike without warning can
disrupt the smooth rhythm of life. You must be prepared at all times. As the
primary earning member, you need to make sure that your family is never lacking
in anything even if you are taken away from them forever. Do your best today to
ensure that your family can always enjoy a comfortable lifestyle. In double
income families, both spouses should get adequate life covers especially if there
are dependent children involved. We have plans that guarantee maximum
protection at a low cost.
• Five Yr Renewable and Convertible
Your parenting is perfect but is your planning adequate? Are you thinking
beyond the immediate to the future, about higher education and professional
courses, in India and abroad? Many children are keen to pursue unconventional
careers. Are you in tune with their aspirations and passions? As parents you
would never let money come in the way of your children and the fulfillment of
their true potential. Our plans will help build the corpus that allows your children
to dream big and soar high.
• SMART Steps™
Building a nest egg is about aggregating surplus amounts regularly to allow them
to grow into a sizeable sum. Investments should be aligned to specific, long-term
goals. Luxury car, foreign holiday or dream house, create your own wish list and
make it come true. Your dreams are in your hands. Every move that you make
today will bring you a step closer to your goals. Our Investment Plans offer the
dual benefit of protection and market-linked returns with the flexibility to choose
the premium and determine the market exposure.
• Life Invest
• SMART Assure
Retirement Plans
Let your golden years be the most precious of your life, full of freedom and
choice. A time to pursue your hobbies, travel and enjoy the good life. You will
never miss your salary cheque or be constrained by rising inflation. Even as you
work hard to make a better today, it is up to you to create a superior tomorrow. If
you want to sustain your current lifestyle even after you stop working, make that
money work for you. Our Retirement Plans will keep you comfortable and
content, and let you live the life you deserve.
• Easy Life Retirement (Par)
Do you know the cost of healthcare has climbed faster than inflation? Medical
costs can be a big drain on finances. A medical crisis can strike anyone, anytime
and may even force an individual to dip into savings to meet these sudden and
steep costs. Such an eventuality could delay or destroy a cherished financial
goal. No wonder, health is wealth. The health of every member of the family is
precious
and you need to safeguard it as a priority. Use our Health Plans to make sure your
family stays fit and fine.
• Lifeline MediCash
• Lifeline Wellness
Savings Plans
Is your money working for you? Clearly not, if it is lying idle in multiple bank
accounts. We will instill the discipline of investment through force of habit as
you park your money for protection and growth to meet your needs over your
lifetime. Choose a plan that matches your needs and budget. Our dual benefits
saving plans recognize your need for all round financial protection, and include a
life cover that will protect you till the last day.
• Whole Life Participating
Most people desire a carefree life. They want to be happy and comfortable at all
times. But needs keep evolving and you must always be one step ahead. Our
Strategic Products Plans will meet your special needs and are available through
additional distribution channels. You can choose a plan to meet the planned
events and unforeseen incidents in your life.
Banc assurance
• Capital Builder
Additional Distribution
• Max Mangal™
• Capital Builder
• Max Vriksha™
Max Am sure
• Future Builder
• Business Builder
• Bonus Builder and Secure Returns Builder
GROUP PLANS
Max Super Life
People are the most valuable asset of any organization. Organizations have to
innovate newer forms of compensation to retain talented employees. Pay and
perks are all very fine but an organization needs to show employees that it
cares. Ensuring the financial well being of employees and their families will
earn an organization their enduring trust and loyalty. Our Group Plans offer a
three-inone advantage, as they are a powerful tool for motivation, reward and
retention, in these times of high attrition.
C) Collection of Data
E) Presentation of Findings
1. Data source
2. Research approach
4. Research instrument
5. Sampling plan
i) Population size
ii) Sample size
iii)Contact methods
6. Questionnaire Design
This study is conducted to analyse the market stand of max life insurance
with that of other insurance companies in india.
DATA COLLECTION
Primary Data:
It consists of original information collected for specific research. Primary data for
this research study was collected through a direct survey to obtain this primary
data a well structured questionnaire is prepared by the researcher.
Secondary Data:
It means data that are already available i.e. they refer to data which are already
collected and analyzed by someone else. Secondary Data may be either published
data or unpublished data. Usually published data are available in:-
1) Books Magazines and newspapers
2) Public record and Statistics
DATA ANALYSIS
sampling technique:-
LIMITATIONS
1) The survey was conducted within the city only.
3) Customers were not fully aware of various plans of max life insurance.
4) Accurate results could not be found as every customer has his own
opinion.
Age of the respondents:
INTERPRETATION:
From the survey it was found that amongst 100 respondents
a) 52% of the respondents were graduate
b) 29% of the respondents were post graduate
c) 8% of the respondents were diploma
d) 10% of the respondents were other discipline
Occupation of the respondents
PARTICULARS NO. OF RESPONDENT PERCENTAGE
100
80
60
40
20
0
NO.OF.RESPONDENT
INTERPRETATION:
From the survey it was found that amongst 100 respondents
a) 34% of the respondents are businessmen.
b) 18% of the respondents are professionals.
Up to 1 lakh 33 33%
1 lakh - 3 lakh 43 43%
3 lakh - 5 lakh 20 20%
5 lakh & above 4 4%
TOTAL 100 100%
Average annual income of respondents.
100
80
Up to 1 lakh
1 lakh - 3
lakh
3 lakh - 5
lakh 60
5 lakh &
above 40
TOTAL 20
0 N
O.OF.RESPONDENT
INTERPRETATION:
From the survey it was found that amongst 100 respondents
a) 33% of the respondents have an average annual income up to 1 lakh
b) 43% of the respondents have an average annual income from 1 lakh to 3 lakh
c) 20% of the respondents have an average annual income from 3 lakh to 5 lakh
d) 4% of the respondents have an average annual income above 5 lakh
Family size of respondents:
PARTICULARS NO.OF RESPONDENT PERCENTAGE
FAMILY SIZE
28 %
50 %
below 5 members
5- 10 member
above 10 member
32 %
INTERPRETATION:
INTERPRETATION:
No 17 17%
Yes 83 83%
TOTAL 100 100%
No Yes TOTAL
100
80
60
40
20
0
NO.OF.RESPONDENT
INTERPRETATION :-
From the survey it was found that amongst 100 respondents.
a) 83% of the respondents say that they are aware of Max Life
Insurance Co.
b) 17% of the say that they are unaware of Max life Insurance Co.
:
Awareness regarding Insurance:
Yes 70 70 %
No 30 30 %
INTERPRETATION :-
From the survey it was found that amongst 100 respondents
a) 70% of the respondents say that they are aware of insurance.
b) Only 30% are unaware of insurance.
% of respondents who are under different plans of
Max life insurance co:
INTERPRETATION:
From the survey it was found that amongst 100 respondents:
a) 30 % of the respondents are under invest gain plan
100
90
80
Risk coverage
Additional
benefit
70 Maturity date
60 Sum Assured
50 TOTAL
40
30
20
10
0 1
2
INTERPRETATION:
a) 60% of the respondents say that a benefit of choosing the particular Product is
for Safety of life.
b) 20% of the respondents say that a benefit of choosing the particular products
is for additional benefit to family.
c) 12% of the respondents say that a benefit of choosing the particular products
is for maturity date.
d) 8% of respondents say that benefit of choosing particular products is assured.
Are the respondents satisfied with the services of
M.L.I. Insurance?
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
N0 30 30 %
YES 70 70 %
INTERPRETATION:
From the survey it was found that among 100 respondents:-
INTERPRETATION:
From the survey it was found that amongst 100 respondents:
60% respondents have media as the source of information for various plans.
40% respondents do not have media as the source of information for various plans.
Which source of media has provided information for
the various plans offered by M.L.I:
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
NEWSPAPER 30 30 %
MAGAZINE 15 15 %
TELEVISION 45 45 %
RADIO 10 10 %
TOTAL 100 100 %
INTERPRETATION:
Maximum insurance holders fall under the average annual income ranging
between 1- 3 lakhs.
Insurance is usually preferred by small families.
Insurance holders under M.L.I prefer protection gain plan above all the
other plans offered to them.
The services provided by M.L.I. are satisfactory.**
CONCLUSION
Website:
www.maxlife.com
www.google.com
www.wikipedia.org
Other Sources
Insurance Administration 2nd Edition by Jane Light cap Brown, PH.D.
QUESTIONNAIRE
NAME:
AGE:
GENDER: MALE
FEMALE
ADDRESS:
No Yes
No Yes
Q6) which category of Max Life insurance plan have you preferred?
Q7) What benefits do you prefer while choosing an insurance plan of Max life
insurance?
Q8) Are you satisfied with the services of Max life Insurance ?
No Yes
Q9) Has media been the source of information for various plans offered by Max
life Insurance?
No Yes
Q10) Which source of media has provided information for the various plans
offered by Max life insurance?
Newspaper Television
Magazine Radio