A SUMMER INTERNSHIP PROJECT

ON

(AN ANALYTICAL STUDY OF FINANCIAL STATEMENTS OF MAX

LIFE INSURANCE CO. LTD.)

AT

(MAX LIFE INSURANCE CO. LTD.)

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

POOJA KUNDAN SHINDE

UNDER GUIDANCE OF

PROF.GAJANAN NERKAR

ALL INDIA SHRI SHIVAJI MEMORIAL SOCIETY’S

INSTITUTE OF MANAGEMENT

2020-21

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2
 CERTIFICATE

This is to certify that Ms. Pooja Kundan Shinde student of All India Shri
Shivaji Memorial Society’s Institute of Management has satisfactorily
completed her project work entitled “An Analytical Study of Financial
Statements of Max Life Insurance Co. Ltd.” in Max Life Insurance Co. Ltd.
From 01st Jun to 31st July 2020.
We wish her all the best for her better future.

Max Life Insurance Co. Ltd.

Mr. Sudhir Mali Place: Pune

Date: 9/08/2020

Max Life Insurance Co. Ltd.

414A,414B,451A & 415B, City Mall Ganesh Khind Road, Pune-411005, India

Fix phone no:9114333945

website: www.maxlifeinsurance.com

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 DECLARATION

I MS. POOJA SHINDE hereby declare that this project is the record of authentic work
carried out by me during the academic year 2019-20 and has submitted to SAVITRIBAI
PHULE PUNE UNIVERSITY towards the award of MASTERS OF BUSINESS
ADMINISTRATION (MBA) degree.

DATE:

PLACE:

SIGNATURE OF STUDENTS

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 ACKNOWLEDGEMENT

It is my pleasure to express deep sense of Prof. Gajanan Nerkar for his valuable guidance, inspiration and
involvement during every stage of this project his experience, professional knowledge, being available beyond
the stipulated period of time for all kind of guidance and supervision and attitude to help influenced the timely
and successful partial completion of this project.

POOJA SHINDE

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 INDEX

SR. NO TITLE PAGE

NO.
1. Executive summary 5
2. Introduction 7
3. Company Profile 15
4. Industry Profile 19
5. Objective & Scope 21

6. Research Methodology 24
7. Limitations/Hypothesis 27
8. Data Analysis & Interpretation 55
9. Findings & Conclusions 64

10. Recommendations 67
11. Bibliography 69
12. Annexure 71

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EXECUTIVE SUMMARY

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This summer project report is prepared at “Max Life Insurance Company Ltd” on “MAX
LIFE INSURANCE PLANS AND PROFIT & LOSS” as part of curriculum of the MBA
program.
The project was of 2 months duration. During the project I communicated clients about their
views regarding “Max Life Insurance Plans” as well as views regarding the Insurance.
Insurance is the backbone of a country’s risk management system. Risk is an inherent part of
our lives. The insurance providers offer a variety of products to businesses and individuals in
order to provide protection from risk and to ensure financial security. They are also an
important component in the financial intermediation chain of a country and are a source of
long term capital for infrastructure and long-term projects Insurance is not the sale of
products, but servicing customers. It is a system, by which the losses suffered by a few are
spread over many, exposed to similar risks.

Insurance is a protection against financial loss arising on the happening of an unexpected

event. Insurance companies collect premiums to provide for this protection. A loss is paid out
of the premiums collected from the insuring public and the Insurance Companies act as
trustees to the amount collected. The very fundamental principle of spreading of the risk is
actually practiced by the insurance companies by reinsuring the risks that they have insured.
Further, the opening up of the Insurance Sector to Private Companies, has made available
more products and world class service to Indian Customers. This project has been made with
an objective to give a deep insight of the Max Life Insurance Plans & Profit & Loss.

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INTRODUCTION

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 A PROJECT REPORT ON

MAX LIFE INSURANCE

INTRODUCTION

Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan
of insurance, a large number of people associate themselves by sharing risk, attached to individual.
The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary.
Any risk contingent upon these may be insured against at a premium commensurate with the risk involved.
Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for
a fixed sum called premium to pay the other party happening of a certain event. 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. With the help of Insurance, large number of
people exposed to a similar risk makes contributions to a common fund out of which the losses suffered by
the unfortunate few, due to accidental events, are made good. 

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MEANING

Insurance is a means of protection from financial loss. It is a form of risk

management primarily used to hedge against the risk of a contingent, uncertain loss.
An entity, which provides insurance, is known as an insurer, insurance company, or insurance
carrier. A person or entity who buys insurance is known as an insured or policyholder. The
insurance transaction involves the insured assuming a guaranteed and known relatively small
loss in the form of payment to the insurer in exchange for the insurer's promise to compensate
the insured in the event of a covered loss. The loss may or may not be financial, but it must
be reducible to financial terms, and must involve something in which the insured has
an insurable interest established by ownership, possession, or preexisting relationship.
The insured receives a contract, called the insurance policy, which details the conditions and
circumstances under which the insured will be financially compensated. The amount of
money charged by the insurer to the insured for the coverage set forth in the insurance policy
is called the premium. If the insured experiences a loss which is potentially covered by the
insurance policy, the insured submits a claim to the insurer for processing by a claims
adjuster.

 Methods of insurance

In accordance with study books of The Chartered Insurance Institute, there are the following
types of insurance:

1. Co-insurance – risks shared between insurers

2. Dual insurance – risks having two or more policies with same coverage (Both the
individual policies would not pay separately- a concept named contribution, and
would contribute together to make up the policyholder's losses. However, in case of
contingency insurances like Life insurance, dual payment is allowed)
3. Self-insurance – situations where risk is not transferred to insurance companies and
solely retained by the entities or individuals themselves

Reinsurance – situations when Insurer passes some part of or all risks to

another Insurer called Reinsurer

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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 insure’ incurring the risk of paying a large sum upon a
given contingency.”

Characteristics of Insurance

Sharing of risk

Co-operative device

Evaluation of risk

Payment on happening

Need of the Life Insurance:-

The original basic intention of life insurance is to provide for one family and perhaps
others in the event of death. Originally, polices were to provide for short periods of time,
covering temporary risk situations, such as sea voyages. As life insurance become more
establish. It was realized what a useful tool it was in a number of situations, including:

1. Temporary needs threats:

The original purpose of Life Insurance remains an important
element, namely providing for replacement of income on death etc.

2. Regular saving:
Providing one’s family and oneself, as a medium to long term exercise
(though a series of regular payment of premiums). This has been become more
relevant in recent times as people seek financial independence from their family.

3. Investment:
Put simply, the building up of saving while safeguarding it from
ravages of inflation. Unlike regular saving products are traditionally lump is
investment, where the individual makes are one-time payment.

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 4. Retirement:
Provision for one’s on later years has become increasingly necessary.
Especially in charging culture abs social environment, one can buy a suitable
insurance policy which will provide periodical payments on one’s old age.

Lloyd's Coffee House was the first marine insurance company.

Property insurance as we know it today can be traced to the Great Fire of London,
which in 1666 devoured more than 13,000 houses. The devastating effects of the fire
converted the development of insurance "from a matter of convenience into one of urgency, a
change of opinion reflected in Sir Christopher Wren's inclusion of a site for 'the Insurance
Office' in his new plan for London in 1667". A number of attempted fire insurance schemes
came to nothing, but in 1681, economist Nicholas Barbon and eleven associates established
the first fire insurance company, the "Insurance Office for Houses", at the back of the Royal
Exchange to insure brick and frame homes. Initially, 5,000 homes were insured by his
Insurance Office.

At the same time, the first insurance schemes for the underwriting of business
ventures became available. By the end of the seventeenth century, London's growing
importance as a canter for trade was increasing demand for marine insurance. In the late

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1680s, Edward Lloyd opened a coffee house, which became the meeting place for parties in
the shipping industry wishing to insure cargoes and ships, and those willing to underwrite
such ventures. These informal beginnings led to the establishment of the insurance market
Lloyd's of London and several related shipping and insurance businesses.

Leaflet promoting the National Insurance Act 1911.

The first life insurance policies were taken out in the early 18th century. The first
company to offer life insurance was the Amicable Society for a Perpetual Assurance Office,
founded in London in 1706 by William Talbot and Sir Thomas Allen. Edward Rowe Mores
established the Society for Equitable Assurances on Lives and Survivorship in 1762.

It was the world's first mutual insurer and it pioneered age based premiums based on
mortality rate laying "the framework for scientific insurance practice and development" and
"the basis of modern life assurance upon which all life assurance schemes were subsequently
based".

In the late 19th century, "accident insurance" began to become available. This
operated much like modern disability insurance. The first company to offer accident
insurance was the Railway Passengers Assurance Company, formed in 1848 in England to
insure against the rising number of fatalities on the nascent railway system.

By the late 19th century, governments began to initiate national insurance programs
against sickness and old age. Germany built on a tradition of welfare programs in Prussia and
Saxony that began as early as in the 1840s. In the 1880s Chancellor Otto von Bismarck
introduced old age pensions, accident insurance and medical care that formed the basis for
Germany's welfare state. In Britain more extensive legislation was introduced by the Liberal
government in the 1911 National Insurance Act. This gave the British working classes the
first contributory system of insurance against illness and unemployment. This system was
greatly expanded after the Second World War under the influence of the Beverage Report, to
form the first modern welfare state.

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Principles of insurance

Insurance involves pooling funds from many insured entities (known as exposures) to pay
for the losses that some may incur. The insured entities are therefore protected from risk for a
fee, with the fee being dependent upon the frequency and severity of the event occurring. In
order to be an insurable risk, the risk insured against must meet certain characteristics.
Insurance as a financial intermediary is a commercial enterprise and a major part of the
financial services industry, but individual entities can also self-insure through saving money
for possible future losses.

 Insurability
Main article: Insurability

Risk which can be insured by private companies typically shares seven common
characteristics:

Large number of similar exposure units: Since insurance operates through pooling
resources, the majority of insurance policies are provided for individual members of large
classes, allowing insurers to benefit from the law of large numbers in which predicted losses
are similar to the actual losses. Exceptions include Lloyd's of London, which is famous for
insuring the life or health of actors, sports figures, and other famous individuals. However, all
exposures will have particular differences, which may lead to different premium rates.

Definite loss: The loss takes place at a known time, in a known place, and from a known
cause. The classic example is death of an insured person on a life insurance policy. Fire,
automobile accidents, and worker injuries may all easily meet this criterion. Other types of
losses may only be definite in theory. Occupational disease, for instance, may involve
prolonged exposure to injurious conditions where no specific time, place, or cause is
identifiable. Ideally, the time, place, and cause of a loss should be clear enough that a
reasonable person, with sufficient information, could objectively verify all three elements.

Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or at
least outside the control of the beneficiary of the insurance. The loss should be pure, in the
sense that it results from an event for which there is only the opportunity for cost. Events that

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contain speculative elements such as ordinary business risks or even purchasing a lottery
ticket are generally not considered insurable.

Large loss: The size of the loss must be meaningful from the perspective of the insured.
Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing
and administering the policy, adjusting losses, and supplying the capital needed to reasonably
assure that the insurer will be able to pay claims. For small losses, these latter costs may be
several times the size of the expected cost of losses. There is hardly any point in paying such
costs unless the protection offered has real value to a buyer.

Affordable premium: If the likelihood of an insured event is so high, or the cost of the event
so large, that the resulting premium is large relative to the amount of protection offered, then
it is not likely that the insurance will be purchased, even if on offer. Furthermore, as the
accounting profession formally recognizes in financial accounting standards, the premium
cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If
there is no such chance of loss, then the transaction may have the form of insurance, but not
the substance (see the U.S. Financial Accounting Standards Board pronouncement number
113: "Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration
Contracts").

Calculable loss: There are two elements that must be at least estimable, if not formally
calculable: the probability of loss, and the attendant cost. Probability of loss is generally an
empirical exercise, while cost has more to do with the ability of a reasonable person in
possession of a copy of the insurance policy and a proof of loss associated with a claim
presented under that policy to make a reasonably definite and objective evaluation of the
amount of the loss recoverable as a result of the claim.

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COMPANY PROFILE

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COMPANY PROFIE

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. The company is a subsidiary of the
publicly listed Max Financial Services Limited 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, founder of Max Healthcare, is the chairman
of Max Life Insurance. The company is headquartered at New Delhi.

Company overview
Max Life Insurance is a part of the Max India Ltd. Group. It is a joint venture between Max
Financial Services and Mitsui Sumitomo Insurance Company. The former owns 68% of the
company while the latter owns 26%. After forming the joint venture partnership with Mitsui
Sumitomo, Max Life changed its name from Max New York Life in 2012. In February 2016,
Axis Bank held a 6% share in Max Life.

Products and services

Max Life has approximately 2,00,000 life insurance customers in India. Its distribution
channel includes banks, individual agents, brokers, and corporate agents, among others. It
provides linked, participating and non-participating products. Apart from life coverage, it also
covers health, pension, and annuity. It offers child, protection, retirement, savings, and
growth plans to individuals and to groups.

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A financially sound company with a proven track record over the last 15 years, Max Life
Insurance offers outstanding investment expertise. Max Life Insurance, one of the top ranking
life insurers, is a joint venture between Max India Ltd. and Mitsui Sumitomo Insurance Co.
Ltd.
Max Financial Services Ltd is part of the Max Group, which is a leading Indian multi-
business corporation, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance
Group, which is amongst the leading general insurers in the world. Max Life Insurance offers
comprehensive long term savings, protection and retirement solutions through its high quality
agency distribution and multi-channel distribution partners.

Max Life Products are available across 1453 locations ensuring ease of reach anywhere
across the country
The company’s vision is 'To be the most admired life insurance company by securing the
financial future for their customers'. The company has a good customer-centric approach
focused on advice-based sales and quality service. In the financial year 2017-18, Max Life
recorded a sum assured of Rs. 5,11,541 crore and Asset Under Management of Rs. 52,237
crore as on 31st March 2018.

Interesting facts about the company

Max life started its operations in the year 2000 with its Headquarters is in Delhi

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The company has assets of Rs. 44,716 crore
It has a vast network of 210 Offices in 143 cities
The company boasts an employee force of more than 9000 and its huge advisor base of
almost 50,000.
The Claim Settlement Ratio of Max Life Insurance for F.Y 2017-18 is 98.26%.
It has a solvency ratio of 275% (Source: Public Disclosure FY 2017-18)
Its 13th Month Persistency reached 80.5% (Source: Public Disclosure FY 2017-18)
Benefits of Max life Insurance Company
Variety in Plans – Max Life Insurance company offer good variety in life insurance plans to
suite different requirements of their customers.
Tax savings - Life insurance premiums (up to Rs. 150,000 per annum) are tax exempt under
the Section 80C of the Income Tax Act, 1961. In addition, Section 10 (10D) offers total
exemption of claim amount or bonus.

Extensive coverage for low cost - Plans offers extensive coverage to insured for low
premiums.

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INDUSTRY PROFILE

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Origin and Development of the industry

Till May 1971 there were 107 companies operating in the market, both Indian and foreign.
Some companies were in the co-operative sector. The size of the companies and there reach
varied to a great extent. Whereas many companies used to underwrite all types of covers fire,
marine & miscellaneous insurance.
The government in May 1971 took over the undertaking of all the
Companies as a prelude to ultimate nationalization. This was brought about under the general
insurance business (Nationalsation) Act, 1972.
Thus, effective 01/01/1973 a single holding company was created named as General
Insurance Corporation of India, with 4 subsidiaries to take care of the general insurance
business operation.
Brief History of the Insurance Sector
The business of life insurance in India in its existing form started in India in the year1818
with the establishment of the Oriental Life Insurance Company in Kolkata. Some of the
important milestones in the insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the Central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with
a capital contribution of Rs. 5 crore from the Government of India. The General insurance
business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd.,
the first general insurance company established in the year 1850 in Kolkata by the British
Some of the important milestones in the general insurance business in India are:

1907:The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.

1968:The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972.Nationalized the general

insurance business in India with effect from 1st January 1973.

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OBJECTIVE OF THE STUDY
SCOPE OF THE STUDY

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 .Evolution of Insurance:

 The Origins of Insurance:  Indian insurance had its origins as deep as the rich
cultures and civilizations of this vast nation. Some of the age-old scriptures such as
Manusmriti, Dharmashastra, and the famous Arthashastra of Kautilya have recorded
the basics of what forms the insurance industry today. This is of particular
significance in the context of large scale calamities or destructions on account of
natural disasters, where resources are pooled from the general community and are
redistributed to those in need and those who are affected – which is insurance, in the
current context. 

 Regulation of Insurance in India:  Though the two companies were formed in the
insurance industry in the 19th century, it was not well in Indian Independence that the
insurance industry was regulated. As the 20th century was born, legislation was
passed in 1912, with the Life Insurance Companies Act, regulating insurance in India.
With the passing of the ordinance in 1956, the insurance industry was nationalized,
paving the way for the largest and the leading brand in Indian insurance, the Life
Insurance Corporation of India. This was shortly followed by the nationalization of
the General Insurance in India in 1973. This also led to the consolidation of many
players in insurance in India, with the formation of National Insurance Company Ltd.,
the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the
United India Insurance Company Ltd.

 Privatization and Insurance:  Life insurance  Corporation of India’s monopoly over

the insurance space was broken with the advent of a slew of private insurers,
following the privatization of the Indian insurance industry in the 1990’s. And with
the dawn of globalization in the 21st century, global partnerships were formed, with
many foreign players venturing into the Indian insurance space, marking a fresh phase
in the evolution of insurance

 Importance of Insurance

The world we live in is full of uncertainties and risks. Individuals, families, businesses,
properties and assets are exposed to different types and levels of risks. These include risk of
losses of life, health, assets, property, etc. While it is not always possible to prevent unwanted
events from occurring, financial world has developed products that protect individuals and
businesses against such losses by compensating them with financial resources. Insurance is a
financial product that reduces or eliminates the cost of loss or effect of loss caused by
different types of risks.

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 Apart from protecting individuals and businesses from many kinds of potential risks, the
Insurance sector contributes significantly to the general economic growth of the nation by
providing stability to the functioning of businesses and generating long-term financial
resources for the industrial projects. Among other things, Insurance sector also encourages
the virtue of savings among individuals and generates employments for millions, especially
in a country like India, where savings and employment are important.
Let’s understand in detail how and why Insurance as a sector is key to development of any
economy.

 Objective

A project report on Insurance is carried out on the basis of few objectives. Some of them are:
 To encourage the expansion of capital markets;
 To accelerate the intermediation competence in the insurance sector, and to release latest out
new schemes and services;
 To contribute to all-inclusive sectoral reforms
 To facilitate and improve the corporate administration and introduce sound commercial
structure
 To sustain health modifications and private health insurance.
 To enable the investors to take a close view of the fund performance over the years
 To motivate the selling of insurance schemes
 To monitor the insurance schemes transactions
 To trigger long term strategic planning.

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RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

The research study in question is applied in nature and the researcher has extensively used
survey and case study methods of research. The three major New Generation Private Sector
Banks operating in India have been surveyed and an in depth study of these banks have been
made so as to accomplish the set objectives of the project meaningfully. The New
Generation Private Sector banks selected for the purpose of research are ICICI Bank, HDFC
Bank (formerly known as UTI Bank). Besides, customers of these banks, professionals in the
field of finance have also been probed through active interviews and surveys for primary
source of the desired data. For the collection of secondary data, published materials and
websites of the Reserve Bank Of India, Bulletins, Lead Bank Reports, IBA Bulletins, DCC
Figures, and State government manuals and bulletins and published and unpublished
documents of Industries Association and the sampled banks.

 SOURCES OF DATA

The data for the research study is both primary as well as secondary data and the various
sources are as under

PRIMARY DATA

 Customers of New Generation Private Sector Banks across the country.

 Customers of Public Sector Banks/Foreign Banks/Cooperative Banks across the
country.
 Middle and senior level executives of the New Generation Private Sector Banks.
 Middle and senior level executives of Public Sector Banks/Foreign
Banks/Cooperative Banks.
 Senior financial consultants and academicians in the field of finance.
 Senior government officials in finance department of Central Government and Central
Government undertakings.
 Senior Government officials in finance department of State Government and State
Government Undertakings. r- Senior officials of Lead Banks
Senior Officials of State Level Bankers Committee. ^ Senior officials of various
multilateral agencies.

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SECONDARY DATA

 Publications of Reserve Bank of India. SLBC Data

 Lead Bank Data.
 Annual Reports of the New Generation Private Sector Banks.
 Newspaper Articles of leading financial newspaper of the country.
 Internet Websites related to the research study,
 State Government reports & NABARD Reports

Research Process

RESEARCH PROCESS

 Formulating the research problem

 Extensive literature survey

 Development of assumptions

 Preparing the research design

 Determine sample design

 Collection of the data

 Analysis of the data

 Interpretation of the data

 Preparation of the report

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HYPOTHESIS

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HYPOTHESIS

 Findings and Hypothesis Testing

Banking sector being backbone of the economy, its performance is vital for the performance
of economy. The major economic indicators of the economy like Gross Domestic Product,
Tax –GDP ratio, Index of Industrial Production, Foreign Direct Investment, Bank Deposit
Growth, Credit Off take have been showing decelerating trend in last five years. The global
financial crisis of 2008 changed the growth momentum achieved during 2004-08. The large
fiscal stimulus of 2010 and 2011 created temporary spike in GDP growth. The fiscal deficit
started increasing at a very high level. This reduced ability of government in stimulating the
economy. The net result of slow government expenditure along with lull in private
consumption and investment spending reduced the growth rate to below 5%.

 The high growth years

The high growth years witnessed the goldilocks period. The high growth coupled with low
inflation prompted RBI to reduce major monetary policy rates. The Cash Reserve Ratio and
Liquidity Ratio were reduced during this period. The Repo and Reverse Repo rates were also
reduced. The net effect was that deposit and advances interest rates continued to come down.
The credit off take increased to the highest level. The deposit growth rate which picked at
24% of GDP and Credit Growth at 37% of GDP in the year 2005-06, the high growth years
created unprecedented opportunities of business. The big tide of global growth lifted all boats
of the economy. The performance of banks during the same time reached at the highest
levels. Deposits and advances were growing at high levels. Non – performing assets were
reducing fast. Profitability was improving of commercial banks

 The low growth years

Financial crisis in western world created doubts in the minds of depositors about couple of
banks in India. The misconception reached the level where people started withdrawing their
deposits from couple of banks with fear of bankruptcy of these banks. The GDP which was
growing at an average of 9.3% in preceding three years came down to 6% in 2008-09. The
slowdown in world economic growth and resultant slowdown in Indian economy was
evident. Government had to stimulate economy. The economic activities continued to
slowdown. This reduced GDP growth showed its impact on all sectors including banking.
The level of deposits increased at 16% of GDP and Credit Growth at 17% of GDP in the year
2012-13.
This study is an attempt to access the performance of banks during this turbulent time. The
parameters are considered between the high and low growth years to find out whether banks
continued to perform at the same level or their performance showed a similar trend.

30
The number of banks is selected across the types of banks. The fifteen banks which are
chosen continue to have more than 52% of the total business (Deposits and Advances) done
by all commercial banks reporting to RBI. The summary of finding is given on the
parameters considered for the study.

CLASSIFICATION OF INSURANCE

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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

32
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.
SAVINGS AND INVESTMENTS
Insurance is a means to Save and Invest. Your periodic premiums are like Savings and you
are assured lump sum amount on maturity. A policy can come in really handy at the time of
your child’s education or marriage! Besides, it can be used as supplement retirement income!
TAX BENEFITS 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.
Money saved is money earned! Why is insurance superior to other forms of savings?
An immediate estate is created in favor of the policyholder.
Protection in case of death. Liquidity in case of need-easy loans is available.
Tax relief-income tax.
Policies can be offered as collateral security.
FUNCTIONS OF INSURANCE

33
 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 Policy  Pension Plans or Annuities. FUNCTIONS OF INSURANCE The
functions of Insurance can be bifurcated into two parts:
1)Primary Functions •

2)Secondary Functions •

Other Functions The primary functions of insurance include the following: Provide
Protection Collective bearing of risk - Insurance is a device to share the - The primary
function of insurance is to provide protection against future risk, accidents and uncertainty.
Insurance cannot check the happening of the risk, but can certainly provide for the losses of
risk. Insurance is actually a protection against economic loss, by sharing the risk with others.
financial loss of few among many others. Insurance is a mean by which few losses are shared
among larger number of people. All the insured contribute the premiums towards a fund and
out of which the persons exposed to a particular risk is paid. Assessment of risk - Insurance
determines the probable volume of risk by evaluating various factors that give rise to risk.
Risk is the basis for determining the premium rate also.

Provide Certainty –

Insurance is a device, which helps to change from uncertainty to certainty. Insurance is

device whereby the uncertain risks may be made more certain. The secondary functions of
insurance include the following

Prevention of Losses –

34
Insurance cautions individuals and businessmen to adopt suitable device to prevent
unfortunate consequences of risk by observing safety instructions; installation of automatic
sparkler or alarm systems, etc.

Prevention of losses causes lesser payment to the assured by the insurer and this will
encourage for more savings by way of premium. Reduced rate of premiums stimulate for
more business and better protection to the insured. Small capital to cover larger risks -
Insurance relieves the businessmen from security investments, by paying small amount of
premium against larger risks and uncertainty.

Contributes towards the development of larger industries - Insurance provides development

opportunity to those larger industries having more risks in their setting up. Even the financial
institutions may be prepared to give credit to sick industrial units which have insured their
assets including plant and machine.

Means of savings and investment –

Insurance serves as savings and investment, insurance is a compulsory way of savings and it
restricts the unnecessary expenses by the insured's For the purpose of availing income-tax
exemptions also, people invest in insurance.

Source of earning foreign exchange - Insurance is an international business. The country can
earn foreign exchange by way of issue of marine insurance policies and various other ways.

Risk Free trade –

Insurance promotes exports insurance, which makes the foreign trade risk free with the help
of different types of policies under marine insurance cover. The end of the year 2000 marks a
significant change and growth of 'India Insurance' industry scenario. Monopoly of Public
Sector Insurance company marks an end and Private companies makes inroad. Foreign
companies, both Life and General flocked, collaborated and helped astronomical growth of
'Insurance Industry in India'. NON- LIFE (GENERAL) INSURANCE:

Triton insurance co. ltd was the first general insurance company to be established in India in
1850, whose shares were mainly held by the British. The first general insurance company to
be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in
1907.

35
Thereafter many Indian players emerged. The general insurance business was nationalized
after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-
nationalization general insurance business. Presently there are 12 general insurance
companies with 4 public sector companies and 8 private insurers.

Although the public sector companies still dominate the general insurance business, the
private players are slowly gaining a foothold. According to estimates, private insurance
companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half
of 2002, the private companies booked premiums worth Rs 6.34 billion.

Most of the new entrants reported losses in the first year of their operation in 2001. With a
large capital outlay and long gestation periods, infrastructure projects are fraught with a
multitude of risks throughout the development, construction and operation stages.

These include risks associated with project implementation, including geological risks,
maintenance, commercial and political risks. Without covering these risks the financial
institutions are not willing to commit funds to the sector, especially because the financing of
most private projects is on a limited or non- recourse basis. Insurance costs constitute roughly
around1.2-2 percent of the total project costs.

Under the existing norms, insurance premium payments are treated as part of the fixed costs.
Consequently they are treated as pass-through costs for tariff calculations.

Insurance, like project finance, is extended by a consortium. Normally one insurer takes the
lead, shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of
the premium.

The other companies share the remaining risk and premium. The policies are renewed
usually on an annual basis through the invitation of bids. Of late, with IPP projects fizzling
out, the insurance companies are turning once again to old hands such as NTPC, NHPC and
BSES for business. Contribution to Indian Economy

• Life Insurance is the only sector which garners long term savings.

• Spread of financial services in rural areas and amongst socially less privileged.

• Long term funds for infrastructure.

36
 • Strong positive correlation between development of capital markets and insurance/pension
structure.

• Employment generation. Insurance Industry prior to de-regulation Prior to deregulation in

2000, market was a public monopoly.

• Public Monopoly o 2000 Offices o Over 800,000 agents

• Distribution through tied agents only

• Sales approach primarily on a tax savings platform

• Traditional style product offering : Endowment and money back plans nadequate and
inflexible products

• Pensions: Small part of product offer

• Limited focus on customer needs Improving Service Standards Channel Access Service
Points Use of IT Advisors Branch Network Limited use of IT Pre Deregulation – Limited
Distribution Multi Channel Access MULTI SERVICE POINTS USE OF IT Advisors
Brokers & Corporate agents Ban assurance Call Centers Email Website Branch Network
Shorter time around time Claims Policy Issuance

NEW YORK LIFE INSURANCE CO. LTD

Max New York Life Insurance 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. 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

37
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 “Max New York Life wants people to
view insurance as a financial protection and wealth creation instrument and not just a tax-
saving tool.” 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.

38
 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 long- term 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 principal of choice for agents.

39
PROFIT AND LOSS STATEMENT

40
 Data Collection of the organization

PROFIT & LOSS ACCOUNT OF MAX MAR MAR MAR MAR MAR  
FINANCIAL SERVICES (in Rs. Cr.) 20 19 18 17 16

  12 12 12 12 12  
months months month months months
s

INCOME  

REVENUE FROM OPERATIONS [GROSS] 494.94 316.63 263.50 21.22 16.24  

Less: Excise/Service Tax/Other Levies 0.00 0.00 0.00 0.00 0.00  

REVENUE FROM OPERATIONS [NET] 494.94 316.63 263.50 21.22 16.24  

TOTAL OPERATING REVENUES 494.94 316.63 263.50 254.91 200.71  

Other Income 0.08 1.15 0.72 1.36 0.51  

TOTAL REVENUE 495.02 317.78 264.21 256.28 201.22  

EXPENSES  

Cost Of Materials Consumed 0.00 0.00 0.00 0.00 0.00  

Operating And Direct Expenses 0.00 102.61 0.00 0.00 0.00  

Changes In Inventories Of FG,WIP And Stock-In 0.00 0.00 0.00 0.00 0.00  
Trade

Employee Benefit Expenses 22.86 76.40 53.74 37.20 32.66  

41
Finance Costs 0.20 27.25 0.00 0.00 0.00  

Depreciation And Amortisation Expenses 9.89 1.75 1.92 1.96 2.22  

Other Expenses 65.75 60.39 64.61 63.12 51.14  

TOTAL EXPENSES 98.70 268.39 120.28 102.28 86.02  

PROFIT/LOSS BEFORE EXCEPTIONAL, 396.32 49.39 143.94 154.00 115.21  

EXTRAORDINARY ITEMS AND TAX

Exceptional Items 0.00 0.00 0.00 0.00 0.00  

PROFIT/LOSS BEFORE TAX 396.32 49.39 143.94 154.00 115.21  

TAX EXPENSES-CONTINUED OPERATIONS  

Current Tax 123.78 0.00 0.00 0.00 0.00  

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00  

Deferred Tax 0.00 0.00 0.00 0.00 0.00  

Tax For Earlier Years 0.00 0.00 0.00 0.00 0.00  

TOTAL TAX EXPENSES 123.78 0.00 0.00 0.00 0.00  

PROFIT/LOSS AFTER TAX AND BEFORE 272.54 49.39 143.94 154.00 115.21
EXTRAORDINARY ITEMS

PROFIT/LOSS FROM CONTINUING OPERATIONS 272.54 49.39 143.94 154.00 115.21

42
PROFIT/LOSS FOR THE PERIOD 272.54 49.39 143.94 154.00 115.21

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 10.12 1.83 5.36 5.76 4.32

Diluted EPS (Rs.) 10.11 1.83 5.35 5.71 4.27

VALUE OF IMPORTED AND INDIGENIOUS RAW

MATERIALS STORES, SPARES AND LOOSE
TOOLS

Imported Raw Materials 0.00 0.00 0.00 0.00 0.00

Indigenous Raw Materials 0.00 0.00 0.00 0.00 0.00

STORES, SPARES AND LOOSE TOOLS

Imported Stores And Spares 0.00 0.00 0.00 0.00 0.00

Indigenous Stores And Spares 0.00 0.00 0.00 0.00 0.00

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 0.00 0.00 0.00 0.00 96.11

Tax On Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend Rate (%) 0.00 0.00 0.00 0.00 180.00

43
BALANCE SHEET OF MAX FINANCIAL MAR MAR MAR MAR MAR  
SERVICES (in Rs. Cr.) 20 19 18 17 16

  12 mths 12 mths 12 mths 12 mths 12 mths  

EQUITIES AND LIABILITIES  

SHAREHOLDER'S FUNDS  

Equity Share Capital 53.90 53.88 53.68 53.45 53.40  

TOTAL SHARE CAPITAL 53.90 53.88 53.68 53.45 53.40  

Reserves and Surplus 2,226.42 1,946.15 1,865.8 1,774.84 1,616.53  

7

TOTAL RESERVES AND SURPLUS 2,226.42 1,946.15 1,865.8 1,774.84 1,616.53  

7

TOTAL SHAREHOLDERS FUNDS 2,280.32 2,000.02 1,919.5 1,828.29 1,669.92  

5

NON-CURRENT LIABILITIES  

Long Term Borrowings 2.73 0.00 0.00 0.00 0.00  

Deferred Tax Liabilities [Net] 0.00 0.00 0.00 0.00 0.00  

Other Long Term Liabilities 126.20 6.23 5.68 0.00 0.00  

Long Term Provisions 11.91 2.87 4.86 3.28 2.65  

TOTAL NON-CURRENT LIABILITIES 140.84 9.10 10.54 3.28 2.65  

CURRENT LIABILITIES  

44
Short Term Borrowings 0.00 0.00 0.00 0.00 0.00  

Trade Payables 10.06 14.20 10.17 11.68 8.88  

Other Current Liabilities 94.35 172.27 130.64 9.46 8.99  

Short Term Provisions 0.00 0.00 0.00 4.19 48.83  

TOTAL CURRENT LIABILITIES 104.41 186.46 140.81 25.33 66.71  

TOTAL CAPITAL AND LIABILITIES 2,525.57 2,195.59 2,070.9 1,856.90 1,739.28  

0

ASSETS  

NON-CURRENT ASSETS  

Tangible Assets 25.51 30.36 30.98 6.20 8.27  

Intangible Assets 0.00 0.09 0.21 0.34 0.47  

Capital Work-In-Progress 0.00 0.00 0.24 0.00 0.00  

Other Assets 0.00 0.00 0.00 0.00 0.00  

FIXED ASSETS 25.51 30.45 31.43 6.54 8.73  

Non-Current Investments 0.00 0.00 0.00 1,793.44 1,434.81  

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00  

Long Term Loans And Advances 0.00 0.00 0.00 7.56 8.62  

Other Non-Current Assets 9.78 7.70 7.98 0.09 0.01  

45
TOTAL NON-CURRENT ASSETS 35.29 38.16 39.42 1,807.63 1,452.17  

CURRENT ASSETS  

Current Investments 2,468.40 2,131.32 1,964.3 28.40 269.98  

2

Inventories 0.00 0.00 0.00 0.00 0.00  

Trade Receivables 19.25 21.80 6.69 7.69 0.00  

Cash And Cash Equivalents 1.94 3.10 2.96 9.78 3.07  

Short Term Loans And Advances 0.01 0.07 0.83 3.39 8.47  

OtherCurrentAssets 0.68 1.14 56.69 0.00 5.59  

TOTAL CURRENT ASSETS 2,490.28 2,157.43 2,031.4 49.27 287.10  

8

TOTAL ASSETS 2,525.57 2,195.59 2,070.9 1,856.90 1,739.28  

0

OTHER ADDITIONAL INFORMATION  

CONTINGENT LIABILITIES,  
COMMITMENTS

Contingent Liabilities 0.00 9.64 9.83 0.00 764.64  

CIF VALUE OF IMPORTS  

Raw Materials 0.00 0.00 0.00 0.00 0.00  

Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00 0.00  

46
Trade/Other Goods 0.00 0.00 0.00 0.00 0.00  

Capital Goods 0.00 0.00 0.00 0.00 0.00  

EXPENDITURE IN FOREIGN  
EXCHANGE

Expenditure In Foreign Currency 0.00 4.49 6.06 6.15 6.34  

REMITTANCES IN FOREIGN  
CURRENCIES FOR DIVIDENDS

Dividend Remittance In Foreign Currency -- -- -- -- --  

EARNINGS IN FOREIGN EXCHANGE  

FOB Value Of Goods -- -- -- -- --  

Other Earnings -- -- -- -- --  

BONUS DETAILS  

Bonus Equity Share Capital -- 11.53 11.53 11.53 11.53  

NON-CURRENT INVESTMENTS  

Non-Current Investments Quoted Market -- -- -- -- --  

Value

Non-Current Investments Unquoted Book -- -- -- 1,767.32 1,434.81  

Value

CURRENT INVESTMENTS  

Current Investments Quoted Market Value -- -- -- -- 0.03  

47
Current Investments Unquoted Book Value -- 2,131.32 1,964.3 28.40 269.97  
2

INSURANCE MANAGEMENT SOLUTION

48
49
TYPES OF BUSINESS PROPOSAL

50
Types of business proposal: • Internal business proposal • External business proposal Internal
business proposal This business proposal meant for the head of the organization also called as
justification report. An internal business proposal provides an opportunity to develop the
competence and confidence to express your ideas, awareness, initiative and problem solving
skill. External business proposal It is for the outsiders. Management plan, cooperation
qualification, staffing plan, contact and pricing, technology plan, regulatory requirements are
main components of business proposal. Here, at Max Life Insurance we offer a bouquet of
insurance solution

Individual

Individual For individuals, we have a range of protection, investment, pension and savings
plans that assist and nurture dreams apart from providing protection. You can choose from a
range of products to suit your life-stage and needs. For organizations we have a host of
customized solutions that range from Group Term Insurance, Gratuity, Leave 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.

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™ • Level
Term Policy

51
Children Plans

Children Plans 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.

• Children's Endowment to 18 (Par)

• Children's Endowment to 24 (Par)

• SMART Steps™

• SMART Steps™ Plus, SMART Steps™ Single Premium Investment Plans Building
a nest egg is about aggregating surplus amounts regularly to allow them to grow into a
sizeable sum.

Investments Plans

52
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 Maker™ Premium

• Life Maker™ Gold

• Life Maker™ Platinum

• Life Invest™

• SMART Assure 4

Retirement Plans

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)

• SMART Invest™ Pension

Health Plans
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

53
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™ Plus

• Lifeline MediCash™ Plus

• Lifeline Safety Net™

• 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

• Life Gain™ Plus 25 (Par)

• 20 year Endowment (Par)

54
• Life Pay™ Money Back

• Endowment to Age 60 (Par)

• Life Gain™ Endowment & Life Gain™ Plus 20 (Par)

Rural Plans

Rural Plans We are

conscious of our social responsibility to serve the financially vulnerable sections of society.
We have created specialized Rural Plans to meet the particular needs of customers in rural
areas. The ticket size has been kept low, the premiums are affordable and the procedures are
simple. Customers in rural areas can now find a plan to meet their unique requirements.
• Easy Term Policy

Strategic Products Plans

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

55
Group Plans

Group plans 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-in- one advantage, as they are a powerful tool for
motivation, reward and retention, in these times of high attrition.
• Group Credit Life
• Unit Linked Group Superannuation Plan
• Group Gratuity cum Term Assurance
• Group Term Life
• Unit Linked Group Gratuity Plan
• Employee Deposit Linked Insurance • Max Super Life

56
DATA ANALYSIS AND
INTERPRETATION

57
 DATA ANALYSIS AND INTERPRETATION

Advantages of Insurance

1.] Insurance provides benefits to an individual, family, businessman as well as a society. The
main advantages of insurance can be described as follows: -

Insurance provides economic and financial protection to the insured against the unexpected
losses in consideration of nominal amount called premium. It provides financial protection to
the nominee in case of the pre-matured death of insured. It also covers the loss of properties
due to theft, fire, accident and other natural calamities

2.] Shares risks

People are exposed to various kinds of risks and uncertainties, which may cause large losses.
It is impossible to eliminate risks and uncertainties altogether but it can be reduced or shared.
Insurance is a co-operative device, which helps to share the risks among the insured. Thus,
the insurance company reduces the risk of the insured in exchange for small premium.

3.] Maintains standard of living

Insurance provides financial protection against an unexpected risk of losses due to which
people can maintain their living standard. The insurance company provides a safeguard in
terms of money to avoid the unfortunate financial crisis.

4.] Encourages saving

58
An insured person pays the amount of premium in time as stated in the agreement, which
encourages for developing a saving habit of persons. Hence, insurance is a means of
encouraging regular saving as it helps to reduce unnecessary expenses.

5.] Eliminates dependency

Due to death or destruction of properties, the family suffers from unbearable and non-
compensational table losses. The insurance protects against those unbearable losses. The life
insurance policy gives full financial support to the dependent in case the death of the insured,
which helps to eliminate the dependency of people.

6.] Grants loan

An insured can get the facility of a loan from an insurance company or can take loan from
other financial institutions through the security of insurance policy. Thus, this provision of
loan helps a person can also meet the need of fund. Bank and financial institutions prefer the
insured assets as collateral for providing a loan.

7.] Creates employment opportunities

As insurance has become business in the modern day business world, hundreds of
entrepreneurs and thousands of employees have been engaging in this line. Hence, by
establishing and developing insurance companies, it has provided employment opportunities
to thousands of people as per their qualification and caliber.

8.] Promotes foreign trade

The growth of the international trade of the country has been greatly helped by shifting of
risk to insurance company. A ship sailing in the sea faces some miss-fortune. A fire breaks
out and burns to ashes all the merchandise of a businessman. But insurance is one of the
devices by which these risks may be reduced or eliminated. So industrialists and exporter
may devote their full attention toward the promotion of business, which may increase the
export activities.

59
Age of the respondent

Qualification of the respondents.

60
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

INTERPRET
ATION:
From the survey it was found that amongst 100 respondents
a) 34% of the respondents are businessmen.
b) 18% of the respondents are professionals.
c) 37% of the respondents are job holders.
d) 11% of the respondents are background.
Family size of respondents:

61
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 lakhs

62
According to respondents life insurance

INTERPRETATION:
From the survey it was found that amongst 100 respondents
a) 50% of the respondents are below 5 members.
b) 32% of the respondents are between 5 to 10 members.
c) 28% of the respondents are above 10 members.
Awareness of Max Life Insurance

PARTICULARS NO.OF.RESPONDEND PERSENTAGE

No 17 17%

Yes 83 83%

Total 100 100%

63
INTERPRETATION:
From the survey it was found that amongst 100 respondents
a) 40% of the respondents say risk coverage.
b) 30% of the respondents say tax savings.
c) 30% of the respondents say financial security.

Awareness regarding Insurance:

PARTICULAR NO.OF.RESOPNDEND PERCENTAGE
YES 70 70%
NO 30 30%

TOTAL 100 100%

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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 benefits of choosing the particular products:

PARTICULAR NO. OF.RESPONDENT PERSENTAGE

Invest gain plan 30 30%

Protection gain plan 36 36%

Child gain plan 8 8%

Whole life plan 15 15%

Pension plan 11 11%

TOTAL 100 100%

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FINDINGS AND CONCLUSIONS

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Observation and Finding

 WHY IS HOME INSURANCE IMPORTANT?

o Protection against liabilities –

House insurance policies provide liability coverage, which covers you against personal
injuries, property damage to guests and other third parties, which they might have incurred
while residing in the insured house. There could also be loss and damage caused to third
parties for which you or your family members (residing in the insured house) may be legally
responsible. This coverage is extremely important as it provides protection to you and your
house from any possible legal problems.

o Provides coverage against natural and man-made calamities –

A comprehensive home insurance policy covers your house against losses and damages
caused due to natural calamities, such as earthquakes, floods, lightning, storms, typhoons, etc.
The policy also covers your house from man-made hazards and anti-social activities, alike.
These are acts such as vandalism, thefts, strikes, riots, other activities caused out of malicious
intent, etc. It also enables you to financially recover from the loss and rebuild your home.

o Coverage of temporary living expenses –

Say your insured house has undergone some damage and is uninhabitable until you
rebuild/renovate it. During the rebuilding/ renovation process, if you rent out another house
and apartment to stay there until your own house gets back to a livable condition, the
insurance company will cover your expenses incurred for paying rent. The upper cap for this
amount is set according to the policy wordings provided by the insurer.

o Coverage for the loss/damage to your valuable assets and precious personal
belongings –
Apart from covering the structure of your house, house insurance companies also offer
policies to provide coverage against loss/ damage of articles/contents kept inside the insured
house. These include various valuable, expensive, and important belongings. These include
documents, personal belongings including jewelry, clothing, appliances, furniture, and much
more.

o Makes it easier to avail a house loan from banks –

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Some banks give preference to those customers (for sanctioning a home loan to them) who
have the home insured. For certain financiers, home insurance is, in fact, one of the major
eligibility criteria for availing a home loan.
So put your foresight to good use and be prudent. Insure your home against every kind of
natural and man-made calamities today to assure yourself and your family of a secured
future.

CONCLUSION 

Insurance is a superior tool to other forms of savings as it provides protection, collective

bearing of risk, assessment of risk, certain factor, easy liquidity and above all the safest
means of savings and investment. During the course of my internship with Max Life
Insurance, I got the opportunity to learn a lot about insurance in general and was able to study
in detail the various plans offered by them. This also provided me with the exposure to be
able to understand the insurance industry better and the various benefits attached to it.
Competition has already set in and public sector and private sector players should take steps
to recapture the market by changing their strategy in the above lines. The future growth of the
insurance sector will depend on how effectively the insurers are able to come up with product
designs suitable to our context and how effectively they are able to change the perceptions of
the Indian consumers and make them aware of the insurable risks. The future growth of
insurance also depends on how service oriented insurers are going to be. On the demand side,
the rise in incomes will trigger the growth of physical and financial assets. With the growth
of infrastructure projects, the demand for insurance to cover the project and the risks during
operations will increase. The other growth trigger is the increase in international trade.
However, servicing of the large domestic market in India is a real challenge. Some of these
challenges pertain to the demand conditions, competition in the sector, product innovations,
delivery and distribution systems, use of technology, and regulation.

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RECOMMENDATIONS

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RECOMMENDATIONS

1] People should also be made aware of various other benefits attached with insurance other
than the factor of risk coverage only.

2] M. L. I. should provide more information regarding the different plans in order to be able
to cover all age groups.

3] Promotion techniques should be enhanced to create more awareness among people about
M. L.I.

4] Insurance plans should be designed in such a way that it is able to cater all family sizes.

5] M. L. I. should also emphasize on the usage of other sources of media to provide

information regarding the various plans offered by them.

6]According to the customers, level of service should be high and companies

must immediately inform their customers about any new plans/schemes to
be launched so that customers can be benefited from those plans.

7] E-services should be provided to each customer because it is today’s need

in technology driven society.

8] Online services should be cheaper so that it can be accessed by lower

income level.

9] Company’s website should be easy to understand and explore everything about policy and
matter.

10] Customers also required uninterrupted and high-speed service during

transactions.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

 Insurance Administration 2nd Edition by Jane Light cap Brown, PH.D. Film & ETC.

 Principles and Practices of Insurance By Dr. P Periasamy.

 Life and Health Insurance By Black Skipper

Website:
www.maxlife.com
www.google.com
www.wikipedia.org Other Sources

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QUESTIONNAIRE

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QUESTIONAIRE

1] Do you have any insurance?

 YES
 NO

2] Are you interested in taking any insurance?

 YES
 NO

3] Do you think insurance is important?

 YES
 NO

4] Do you feel whether Private insurance companies are beneficial or Public company?

 Agree
 Disagree

5] How do you decide about investing in insurance?

 On my own
 Employees decides
 Family decision
 Financial Advisor

6] Do you have any insurance life insurance or general insurance?

 YES
 NO

7] What scheme of Insurance Policy have you taken?

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  Life Protection Plan
 Education Plan
 Retirement Plan
 Health Plan
 Money growth Plan
 Any Other Specify

8] If you yes, which insurance company policy do you have?

 LIC
 SBI
 Bajaj Alliance
 Reliance Life insurance
 HDFC
 ICICI Prudential
 ICICI Lombard
 MAX LIFE INSURANCE

9.] Which of the following types of insurance do you currently have?

 Other
 Home Renters
 Credit
 Mortgage
 Property
 Pet
 Business
 Disability
 Health
 Casualty
 Liability
 Life
 Automobile
 Long term case

10.] Main Reason for taking insurance from particular insurance company?

 Quality
 Less Premium
 Better Terms
 Better Services

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