“MAX LIFE INSURANCE COMPANY LIMITED”

Submitted in partial fulfillment of the requirement for the award of

MASTER OF BUSINESS ADMINISTRATION

From

NARAYANA BUSINESS SCHOOL, AHMEDABAD

Component: Internal CEC

Submitted By

LALIT KUMAR CHOUHAN

ROLL NO: - 218380592019

Under the Guidance of

Imroz Mansuri
 Max Life Insurance

Max Life Insurance Company Limited (formerly known as Max New York Life Insurance
Company Limited) is a life insurance company in India with a joint venture (JV) between Max
India Ltd and Axis Bank The company is a subsidiary of the publicly listed Max Financial
Services and is the largest non-bank private-sector life insurer in India. It was founded in 2000
after the liberalization of the insurance sector in India and its operations began in 2001. Analjit
Singh, the founder of Max Healthcare, is the chairman of Max Life Insurance.[1] Prashant
Tripathy is the Managing Director and Chief Executive officer, the company is headquartered
in New Delhi.

Max Life is the sole operating subsidiary of Max Financial Services Limited. Max Life – a part
of the $4-Bn Max group, an Indian multi-business corporation – is India’s largest non-bank
private life insurer and the fourth largest private life insurance company. In FY21, Max Life
reported an Embedded Value (EV) of Rs. 11,834 crores, after allowing for the shareholder
dividends led by 39% growth in the value of the new business. The Operating Return on EV
(RoEV) over stood at 18.5%. The New Business Margin (NBM) for FY2021 was 25.2% (at
actual costs), an increase of 360 bps, and the Value of New Business (VNB) was Rs. 1,249
crore (at actual costs), an annual growth of 39%.

On April 6, 2021, Axis Bank Limited, India’s third-largest private sector bank, together with
its subsidiaries Axis Capital Limited and Axis Securities Limited (collectively referred to as
“Axis Entities”) became the co-promoters of Max Life. This was after the completion of the
acquisition of a 12.99% stake collectively by the Axis Entities in Max Life. Under the deal, the
Axis Entities have a right to acquire an additional stake of up to 7% in Max Life, in one or
more tranches, subject to regulatory approvals. Max Life has 358 branch units across India as
of March 31, 2021.
Our Vision

To be the most admired company for protecting and enhancing the financial future of its
customers.

Our Mission

• Be the most preferred category choice for customers, policyholders, shareholders, and
employees.
• Do what is right for our customers, and treat them fairly.
• Lead the market in quality and reputation.
• Be the go-to standard for partnerships and alliances with all distributors and partners.
• Maintain cutting-edge standards of governance.

Our Mission

Sevabhav

We encourage a culture of service and helpfulness so that our actions positively impact
society. Our commitment to Seva defines and differentiates us.

Credibility

We give you our word. And we stand by it. No matter what. A ‘No’ uttered with the deepest
conviction is better than a ‘Yes’ merely uttered to please, or worse, to avoid trouble. Our
words are matched by our actions and behavior.

Excellence

We gather the experts and the expertise to deliver the best solutions for life’s many moments
of truth. We never settle for good enough.
 Key Management Persons

Mr. Analjit Singh

Chairman, Max Life Insurance Co. Ltd. and Founder & Chairman Emeritus
Mr. Analjit Singh is the Founder & Chairman of The Max Group, a leading Indian multi
business enterprise, with interests in life insurance (Max Life), real estate (Max
Estates), senior living (Antara). The Max Group is renowned successful joint ventures with
some pre-eminent firms including Mitsui Sumitomo & Toppan, Japan; New York Life
Insurance Company; Bupa Plc, Life Healthcare, SA; DSM, Netherlands, Hutchison
Whampoa; Motorola, Lockheed Martin and others

Mr. Prashant Tripathy

Managing Director & Chief Executive Officer, Max Life Insurance Co. Ltd.
A seasoned professional with over two decades of experience across Finance, Organisational
Strategy, Operations, Risk Management and Investor Relations, Prashant Tripathy leads Max
Life Insurance as the Managing Director & Chief Executive Officer. Having spent 12 years
with the Company, Prashant was earlier the Chief Financial Officer of the Company,
spearheading Financial Management and the Corporate Strategy, as well as playing a critical
role in managing Investor Relations and Communications for Max Financial Services Ltd.,
the parent company of Max Life Insurance.
 Mr. V.Viswanand
Deputy Managing Director, Max Life Insurance Co. Ltd.
An industry veteran with a dynamic presence in the financial services sector for nearly three
decades, V. Viswanand is Deputy Managing Director at Max Life Insurance and a member of
the Board. In his role, he is responsible for Distribution, including Proprietary Channels,
Bancassurance and Third Party Business, Institutional Sales, Business Development and
Distribution Operations.

A Founder Team Member of Max Life, In his previous role at Max Life Insurance,
Viswanand was Senior Director and COO. Prior to that he was Director & Head - Product
Solutions Management wherein he enabled two large scale transformations in the face of
regulatory changes which resulted in significant increase in market share of the company.

Mr. Girish Independent Director, Max Life

Shrikrishna Paranjpe Insurance Co. Ltd. (April 6, 2021)

Mr. K. Narasimha Independent Director, Max Life

Murthy Insurance Co. Ltd. (August 23, 2013)
Mr. Rajesh Khanna Independent Director, Max Life
Insurance Co. Ltd. (April 6, 2021)

Mr. Pradeep Pant Independent Director, Max Life

Insurance Co. Ltd. (February 07, 2019)

Mr. Mohit Talwar Non-executive Director, Max Life

Insurance Co. Ltd.
(January 30, 2016)

Mr. Rajesh Kumar Non-executive Director, Max Life

Dahiya Insurance Co. Ltd.
(April 6, 2021)

Ms. Marielle Theron Non-executive Director, Max Life

Insurance Co. Ltd.
(May 2009)

Mr. Rajiv Anand Non-executive Director, Max Life

Insurance Co. Ltd.
(April 6, 2021)
Mr. Subrat Mohanty Non-executive Director, Max Life
Insurance Co. Ltd. (April 6, 2021)

Mr. Mitsuru Yasuda Non-executive Director, Max Life

Insurance Co. Ltd. (July 24, 2020)

Mr. Sahil Vachani Non-executive Director, Max Life

Insurance Co. Ltd.
(CEO & Managing Director of Max
Ventures)
 Product Profile
Insurance is a legal agreement between an individual and the insurance company, under which,
the insurer promises to provide financial coverage (Sum assured) against contingencies for an
amount (premium). The types of insurance in India can be broadly divided into two categories:

• General Insurance
• Life Insurance
1. General Insurance
• Health Insurance
• Motor Insurance
• Home Insurance
• Fire Insurance
• Travel Insurance
2. Life Insurance
• Term Life Insurance
• Whole Life Insurance
• Endowment Plans
• Unit-Linked Insurance Plans
• Child Plans
• Pension Plans

Product Portfolio:

Term Insurance :

It is an affordable type of life insurance that offers a high sum assured at affordable premiums.
The insurance company offers to pay a sum assured to the policy nominee in case of your
untimely demise.

Unit Linked Insurance Plans (ULIPs):

ULIP is a unique type of life insurance that offers dual benefits of life cover and market linked
returns on your investment. A portion of the amount paid as premium is invested in different
fund options while the rest is used to provide life cover.
Child Plans:

A child plan is another form of ULIP with which you can create wealth to support the higher
education plans of your child. With a child plan, you also get the flexibility to invest money
into various funds based on your financial condition and long-term goals.

Endowment Plans:

These plans are known as a combination of life insurance and savings. By investing in an
endowment plan, you will receive life cover as well as savings benefit. You will get the
maturity benefit on outliving the term of your plan, along with periodic bonuses (if any).
Retirement Plans:

Also known as deferred pension products, these plans aim at helping you create wealth for your
retired life to enjoy financial independence. Your nominee will receive immediate payment in
case of your demise during the policy term. Otherwise, you will receive the vesting benefit on
surviving the term.
 Name of the Product Product UIN

Max Life
Max Life Five Year Renewal & Convertible Term
Insurance Co. 104N001V01
Insurance (Non Participating)
Ltd.

Max Life
Insurance Co. Max Life Easy Term Policy 104N002V01
Ltd.

Max Life
Max Life 20 year Endowment Participating
Insurance Co. 104N003V01
Insurance
Ltd.

Max Life
Insurance Co. Max Life Whole Life Participating Insurance 104N004V01
Ltd.

Max Life
Insurance Co. Max Life Whole Life Non Participating Insurance 104N005V01
Ltd.

Max Life
Insurance Co. Max Life Life Shield 104N006V01
Ltd.

Max Life
Max Life Endowment to age 60 Participating
Insurance Co. 104N007V01
Insurance
Ltd.

Max Life
Max Life Children's Endowment Participating
Insurance Co. 104N008V01
Insurance to age 18/24 with whole life option
Ltd.

Max Life
Max Life Level Term Policy (Non-
Insurance Co. 104N009V01
Participating/Non-Convertible)
Ltd.
Max Life
Insurance Co. Max Life Single Premium Bond 104N010V01
Ltd.
Max Life
Max Life Easy Life Retirement Plan Regular
Insurance Co. 104N011V01
Premium/Single Premium (Participating) Policy
Ltd.
Max Life
Insurance Co. Max Life Max Suraksha 104N012V01
Ltd.

Max Life
Max Life Stepping Stones Participating Insurance
Insurance Co. 104N013V01
Plan
Ltd.

Max Life
Insurance Co. Max Life Life Gain Plus 20 Participating Plan 104N014V01
Ltd.

Max Life
Insurance Co. Max Life Life Gain Plus 25 Participating Plan 104N015V01
Ltd.

Max Life
Insurance Co. Max Life 'Group Gratuity cum Term Assurance 104N016V01
Ltd.

Max Life
Insurance Co. Max Life Life Maker Unit Linked Investment plan 104L017V01
Ltd.

Max Life
Insurance Co. Max Life Life Maker Gold 104L017V02
Ltd.

Max Life
Insurance Co. Max Life Group Credit life 104N018V01
Ltd.

Max Life
Insurance Co. Max Life Amsure Bonus Builder 104N019V01
Ltd.

Max Life
Insurance Co. Max Life Amsure Future Builder 104N020V01
Ltd.

Max Life
Insurance Co. Max Life Amsure Business Builder 104N021V01
Ltd.
Max Life
Max Life Life Pay Money Back (Participating
Insurance Co. 104N022V01
Plan)
Ltd.

Max Life
Max Life Life Gain Endowment (Participating
Insurance Co. 104N023V01
Plan)
Ltd.
Max Life
Insurance Co. Max Life Immediate Annuity 104N024V01
Ltd.

Max Life
Insurance Co. Max Life Super Saver Bond 104N025V01
Ltd.

Max Life
Insurance Co. Max Life Life Maker Pension Plan 104L026V01
Ltd.

Max Life
Insurance Co. Max Life Life Maker Pension Plan 104L026V02
Ltd.

Max Life
Insurance Co. Max Life Max Mangal Endowment Plan 104N027V01
Ltd.

Max Life
Insurance Co. Max Life Max Vriksha Money Back Plan 104N028V01
Ltd.

Max Life
Max Life Life Partner Plus Limited Pay
Insurance Co. 104N029V01
Endowment to age 75
Ltd.

Max Life
Insurance Co. Max Life Unit Linked Group Gratuity Plan 104L030V01
Ltd.

Max Life
Insurance Co. Max Life Life Invest Plan 104L031V01
Ltd.
Max Life
Insurance Co. Max Life Amsure Secure Returns Builder 104L032V01
Ltd.
Max Life
Insurance Co. Max Life Unit Linked Group Superannuation Plan 104L033V01
Ltd.

Max Life
Insurance Co. Max Life Life Maker Premium Investment plan 104L034V01
Ltd.
MNYL 20 Year Endowment (Par) Insurance Plan:

Features:

Eligibility conditions & other restrictions in MNYL 20 Year Endowment (Par) Plan:

Minimum Maximum
Sum Assured (in
1,00,000 5 Crores
Rs.)
Policy Term (in
20
years)
Premium Payment
20
Term (in years)
Entry Age of Life
20 50
Insured (in years)
Age at Maturity of
Life Insured (in - 70
years)
Payment modes Yearly, Half-Yearly, Quarterly & Monthly

Benefits we get from MNYL 20 Year Endowment (Par) Insurance Policy:

Death Benefit – In case of death of the Life Insured within the Policy Tenure, the Sum Assured
+ Bonus, if any, would be paid as Death Benefit and the policy would be terminated.

Maturity Benefit – On maturity, the Life Insured would receive the Sum Assured + Bonus (if
any) as Maturity Benefit.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a
deduction from the taxable income each year under section 80C. Maturity Benefit is tax free
under section 10(10)D.

Riders – There are 4 additional riders available in this policy

1. Personal Accident Benefit Rider

2. Term Rider
3. Dread Disease Rider
 4. Term Renewable and Convertible Rider

Max Life Life Gain Plus 20 Participating Plan:

Features:

Eligibility Criteria
Minimum 18 years
Entry Age
Maximum 55 years
Maximum
75 years
Maturity Age
Premium Payment
You can choose between 6 / 10 years
Term
Minimum Rs. 50,000
Sum Assured
Maximum - No upper limit, Subject to underwriting

Tenor of cover 20 years

Minimum
Rs. 2,500
Premium
Min/ Max Policy
20 years
Term

Product Benefit

• Maturity Benefit: 110% of Sum Assured + sum assured of paid up additions, if any
• Survival Benefit: NA
• Death benefit: Double sum assured after 5 years of commencement plus sum assured
of paid up addition, if any
Max Life Unit Linked Group Gratuity Plan:

Features:

Minimum: Rs. 500,000

Initial Contribution Maximum: No Limit , as per actuarial valuation
AS-15(R)
Fixed life insurance cover of Rs. 1,000 per
Life Insurance Cover member
Group Size
Minimum 10 at time of choosing scheme
Maximum No limit
Policy Term One Year Renewable Scheme
Entry Ages for employees (as on last Minimum - 18 Years
birthday) Maximum - 74 Years
Maximum cover ceasing age (as on last
birthday) 75 Years

Benefits:

Death Benefit:
Payable on death provided the policy is in force

Maturity Benefit:
Payable on retirement or resignation of a member from employment

Termination or Surrendering Benefits

Loyalty Additions:
Additional benefits payable only in case the policy is in force
Performance Of Insurance Industry

The life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and 2023.
India’s insurance penetration was pegged at 4.2% in FY21, with life insurance penetration at
3.2% and non-life insurance penetration at 1.0%. In terms of insurance density, India’s overall
density stood at US$ 78 in FY21.

Premiums from India’s life insurance industry is expected to reach Rs. 24 lakh crore (US$
317.98 billion) by FY31. In the first half of FY22, the life insurance industry recorded growth
rate of 5.8% compared with 0.8% in the same period last year. The gross first-year premium of
life insurers increased by 12.93% in 2021-22 to Rs. 314,262.42 crore (US$ 40.06 billion).

Between April 2021-March 2022, gross premiums written off by non-life insurers reached Rs.
220,772.07 crore (US$ 28.14 billion), an increase of 11.1% over the same period in FY21. In
May 2022, the total premium earned by the non-life insurance segment stood at Rs. 36,680.73
crore (US$ 4.61 billion), a 24.15% increase as compared to the same period in the previous
year. The market share of private sector companies in the general and health insurance market
increased from 48.03% in FY20 to 49.31% in FY21. Six standalone private sector health
insurance companies registered a jump of 66.6% in their gross premium at Rs 1,406.64 crore
(US$ 191.84 million) in May 2021, as against Rs. 844.13 crore (US$ 115.12 million) earlier.

Performance Of Max life Insurance Company

Max Life Insurance has progressed well on all business parameters in the Financial Year 2021-
22 and has further strengthened its position due to its continued focus on building a successful
life insurance business to deliver the core value of long-term savings and protection.

• Gross written premium of the company grew 18% to Rs. 22,414 crore.
• Shareholders profit after tax at Rs. 387 crore.
• Assets under management increased by 19% to Rs. 107,510 crore.
• Solvency ratio of 201%, 1.34 times more than the mandatory 150% indicating the
company’s strong and stable financial position.
• Conservation ratio at 85% and 13th month persistency at 85%.
• Policyholder Bonus Paid at Rs. 1,181 crore.
• Sum assured in force at Rs. 1,174,515 crore, recorded an increase of 8% over the
previous financial year.
 • Expenses of management to gross direct premium ratio stood at 20%.
• The grievance incidence rate was 40 per 10,000 policies for the year.
• We have paid 99.34% of claims on individual business policies and 99.41% of claims
on group business policies.

Solvency Ratio

As per the IRDAI’s mandate, the minimum solvency ratio insurance companies must maintain
is 1.5 to lower risks. In terms of solvency margin, the required value is 150%. The solvency
margin is the extra capital the companies must hold over and above the claim amounts they are
likely to incur. It acts as a financial backup in extreme situations, enabling the company to
settle all claims. Solvency ratio of 201%, 1.34 times more than the mandatory 150% indicates
the company's strong and stable financial position. Conservation ratio at 85% and 13th-month
persistency at 85%. Policyholder Bonus Paid at Rs. 1,181 crores.

Claims Settlement Ratios

The IRDAI (Insurance Regulatory and Development Authority of India) publishes the claim
settlement report includes the accurate figures and percentages of the number of claims made
by policyholders, the number of claims that were settled, and the number of claims that were
rejected.

The claim settlement ratio is the ratio of the number of claims settled to the number of claims
made.

Claim settlement ratio = Number of claims settled/Number of claims made*100

Claims may be rejected by life insurance companies for various reasons such as
misrepresentation of facts, fraud, impersonation, etc. It is hence important to ensure that you
provide accurate information to the insurer at the time of purchase.

Claim settlement ratio (CSR) is the % of claims that an insurance provider settles in a year out
of the total claims. It acts as an indicator of their credibility. As a general rule, the higher the
ratio, the more reliable the insurer is.