DISSERTATION

On

A COMPARATIVE STUDY ON PROMOTION

COMMUNICATION MIX USED BY LIC AND MAX
NEWYORK LIFE INSURANCE COMPANIES

Submitted to the Uttaranchal University in partial fulfillment

of the requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by:
Sapna Kumari
(Enrollment no. No.:22221900039)

Under the Guidance of:

Dr Anil Singh Chauhan
(Associate professor)

(Batch: 2022-2024)

UTTARANCHAL INSTITUTE OF MANAGEMENT

UTTARANCHAL UNIVERSITY, DEHRADUN

1
 CANDIDATE’S DECLARATION

I, SAPNA KUMARI this moment declare that the Dissertation, entitled “A

comparative study on promotion communication Mix used by LIC and MAX
Newyork life insurance companies” submitted to the Uttaranchal University,
Dehradun in partial fulfillment of the requirements for the award of the Degree of Master
of Business Administration is are cord of original research work undergone by me under
the supervision and guidance of DR. ANIL SINGH CHAUHAN Associate Professor of
UIM, Uttaranchal Institute of Management, Uttaranchal University. It has not formed the
basis for the award of any Degree/Fellowship or another similar title to any candidate of
any University/Institution.

Date: Signature of the Student:

This is to certify that the statement made by the candidate is true to the best of my
knowledge and belief.

Signature of Guide

Date: Guide Name with

Designation:

Dr. Tilottama Singh

HOD- UIM

2
 PREFACE

These are the days of the advertising world and not the self-promoting world.
Advertising is one of the very few essential assets allocating concept which is
growing at its zenith rate to bring prosperity and progress to the teeming
millions of countries where people run after jobs. Equally important is the role
of insurance advisors, where the investment field supports advisors and takes
insurance companies to boom, and gleam and yield best results.
I am really happy to present this project before the teachers as it gives me an
incorporated base for further education and knowledge of the worldly
scenarios of the insurance industry.

I have tried my best to bring to you the latest picture of the various plans of M
Land insurance practice The sections and its included chapters are cordially
arranged for the smooth flow of the subject matter both for ingestion and
digestion. I carried out the survey myself along with the summarization and
conclusion of the survey. For the other material have freely drawn the material
from internet sites and books to bring to you the latest picture of the insurance
industry. Hence, I do not claim any originality, except form style of
presentation and the survey part.

I am very thankful to Prof. Tapati Sarmah, MBA, GBSRC College, who took
the burden to explain me the movement of the project so that I could bring out
the best possibility.

3
 ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I was fortunate

enough to get support from a large number of persons to whom I shall
always remain grateful.
I take this opportunity to thank all the respondents for giving their
precious time and relevant information and experience, I require without
which this project would have been a different story.
In addition, I am thankful to DR. ANIL SINGH CHAUHAN Associate
Professor, Management Department & all the faculty of the institute for
their full-hearted co-operation & guidance. This project study is the result
of their right direction, motivation and support.
I would like to express my special guidance to my Parents and my friends,
who are always a source of inspiration for me.

SAPNA KUMARI

4
5
 TABLE CONTENTS

TITLE PAGE
NO.
..
Title page
Certificate of originality ( Duly signed ) ..

Preface (ⅰ)

Acknowledgement (ⅱ)

Table of contents (ⅲ)

Chapter 1: INTRODUCTION 7−26

Chapter 2: REVIEW OF LITERATURE 27−47

Chapter 3: RESERARCH METHODOLOGY 48−52

Chapter 4: DATA ANALYSIS AND INTERPRETATION 53−66

Chapter 5: FINDINGS & CONCLUSION 67−75

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 CHAPTER -1
INTRODUCTION

Marketing Mix of Life Insurance Corporation of India (LIC)

This article is on the Marketing Mix of Life Insurance Corporation of India (LIC) – LIC
Marketing Mix.
Life Insurance Corporation of India (LIC) is an Indian Insurance and investment
company. LIC is having the largest customer base. Customers have full trust in the LIC
of India. LIC is the largest insurance company is an Indian company and is headquartered
in Mumbai, India.
The Life Insurance Corporation (LIC) was established in the year 1956 after the Indian
Parliament passed an act to nationalize the private insurance industry. Nearly 245
insurance companies have been combined to create this LIC company. The insurance
sector has been under the monopoly of LIC since that time until the year 2000. The main
objective of the nationalization of LIC-Life Insurance was to eliminate the risk of loss
and to provide money protection to the policyholder.

1. Advertising: Both LIC and Max New York Life likely utilize advertising to reach
their target audience. LIC being a government-owned corporation might focus on a
more traditional and widespread approach to advertising, including television, print
media, and billboards. Max New York Life, as a private company, may adopt a more
segmented and targeted advertising strategy, potentially using digital channels such as
social media platforms, online display ads, and targeted email campaigns.

2. Sales Promotion: LIC might rely on various sales promotion techniques such as
offering discounts on premiums, organizing promotional events, and distributing
freebies to attract customers. Max New York Life, being a private player in a
competitive market, might employ more aggressive sales promotion tactics such as
limited-time offers, referral programs, and exclusive deals to drive sales and customer
engagement.

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3. Public Relations: Both companies would likely invest in maintaining a positive
public image through media relations, corporate social responsibility initiatives, and
community engagement programs. LIC, being a government entity, might emphasize
its role in serving the public interest and promoting financial inclusion.
Max New York Life, as a private insurer, might highlight its corporate values,
customer testimonials, and industry accolades to build trust and credibility.

4. Direct Marketing: LIC and Max New York Life may use direct marketing
channels such as direct mail, telemarketing, and digital marketing to target
specific customer segments and generate leads. LIC might focus more on
traditional direct marketing methods due to its wide customer base and
geographical reach, while Max New York Life might leverage advanced data
analytics and personalized messaging to tailor its direct marketing efforts to
individual customer preferences and behaviors.

5. Personal Selling: Both companies would employ personal selling techniques

through their network of insurance agents and advisors. LIC, with its extensive
network of agents spread across the country, might prioritize face-to-face
interactions and relationship-building to educate customers and facilitate policy
sales. Max New York Life might provide its agents with advanced sales tools and
training programs to enhance their effectiveness in engaging with customers and
closing deals.
By analyzing the promotion communication mix used by LIC and Max New York Life,
researchers can gain insights into their respective marketing strategies, target audience
preferences, and competitive positioning in the insurance industry. Additionally, studying
the effectiveness of different promotional tactics employed by these companies can inform
best practices for reaching and engaging customers in the insurance market. In today's
dynamic business landscape, effective communication strategies are crucial for companies
seeking to capture the attention of their target audience and differentiate themselves in
competitive markets.

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The insurance industry, in particular, relies heavily on promotion communication mix
strategies to educate consumers, build brand awareness, and drive sales. This paper
presents a comparative analysis of the promotion communication mix strategies
employed by two prominent players in the Indian insurance market: Life Insurance
Corporation of India (LIC) and Max New York Life Insurance (now known as Max Life
Insurance).

1. Background and Significance:

The insurance sector in India has witnessed significant growth and transformation over
the past few decades, driven by evolving consumer needs, regulatory reforms, and
technological advancements. As one of the largest insurance markets globally, India
presents a lucrative yet highly competitive landscape for insurers. LIC, established in
1956 as a state-owned enterprise, has long been synonymous with life insurance in India,
dominating the market with its extensive reach and trustworthiness. In contrast, Max New
York Life Insurance, a joint venture between Max India Limited and New York Life
Insurance Company, entered the Indian market in 2000, bringing innovative products and
a customer-centric approach to insurance. Understanding the promotion communication
mix strategies of LIC and Max New York Life is imperative for several reasons. Firstly,
it provides insights into how these companies navigate the complexities of the Indian
market and engage with diverse consumer segments. Secondly, it sheds light on the
effectiveness of different promotional tactics in driving brand awareness, customer
acquisition, and retention. Lastly, it offers valuable lessons for other players in the
insurance industry seeking to enhance their marketing efforts and stay competitive in a
rapidly evolving landscape. Let’s discuss Marketing Mix of Life Insurance Corporation
(LIC) – LIC Marketing Mix: Page Contents Product in the Marketing Mix of Life
Insurance Corporation (LIC) – LIC Marketing Mix Life Insurance Corporation (LIC) has
designed a number of products in accordance with the requirements of the common
people. Insurance is mainly taken out for the purpose of providing the bread and butter to
the family after the death of the Insurer due to accidents or disasters. Life Insurance
Corporation (LIC) provides different insurance options.

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In the sprawling canvas of India's insurance landscape, where the dynamics of consumer
behavior intersect with the strategic maneuvers of industry players, the role of
communication strategies emerges as a linchpin in shaping market narratives and driving
brand equity. Within this multifaceted domain, two behemoths stand tall, each weaving
its own narrative of trust, innovation, and consumer-centricity. Life Insurance
Corporation of India (LIC), an institution steeped in tradition and heritage, embodies the
quintessential essence of reliability, having served as a bulwark of financial security for
generations of Indians since its inception in 1956. Across the spectrum lies Max New
York Life Insurance (now Max Life Insurance), a relatively newer entrant that epitomizes
the spirit of innovation and dynamism, leveraging strategic partnerships and cutting-edge
products to carve a niche in the competitive landscape. Against this backdrop, the
exploration of their promotion communication mix strategies assumes paramount
significance, offering a window into the strategic underpinnings that govern their
marketing endeavors. Through a nuanced comparative analysis, this study seeks to
unravel the intricacies of their communication strategies, spanning advertising, sales
promotion, public relations, direct marketing, and personal selling. By delving into the
strategic imperatives, tactical maneuvers, and nuanced nuances of their communication
mix, this study endeavors to distill actionable insights, foster knowledge dissemination,
and propel the discourse on insurance marketing in India to new frontiers. Through a
structured inquiry that blends academic rigor with practical relevance, this paper aims to
unravel the complex tapestry of promotion communication mix strategies, offering a
panoramic vista of insights, perspectives, and implications for theory and practice alike.

Must Read Marketing Mix of Big Bazaar - Big Bazaar Marketing Mix

In addition, various pension plans, annuities, group insurance, special plans, and unit-
linked plans are also in operation for the benefit of customers. Life Insurance Corporation
(LIC) has also introduced a range of products particularly for children, senior citizens,
women, and the disabled. LIC also has programs for individuals on the poverty
line. Place in the Marketing Mix of Life Insurance Corporation of India (LIC) – LIC

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Marketing Mix Life Insurance Corporation (LIC) is the market leader in the insurance
industry of India hence the distribution of its services is carried out through a number of
channels – direct and indirect. Numerous routes are used to meet potential customers.
The most important and basic channel member was the “Insurance Agent.” The aim of
the LIC Company is to take various innovative routes to reach the farthest and most
remote corner. Physical distribution of service products, which in this case are funds and
support at the right time and place, is an important factor in the marketing policy of Life
Insurance Corporation (LIC):
Term Insurance Plans
 LIC Jeevan Amar Plan
 LIC Tech Term Plan
Money-Back Plans
 LIC Jeevan Shiromani
 LIC Bima Shree Plan
 LIC New Money Back Plan – 20 Years
 LIC New Money Back Plan – 25 Years
Unit Linked Insurance Plans – ULIPs
 LIC SIIP Plan
 LIC Nivesh Plus Plan
Health Plans
 LIC Jeevan Arogya Plan
 LIC Cancer Cover Plan
Endowment Plans
 LIC Aadhaar Shila Plan
 LIC Aadhaar Stambh plan
 LIC Jeevan Labh Plan
 LIC New Bima Bachat Plan
 LIC Jeevan Lakshya Plan
 LIC New Jeevan Anand Plan
 LIC Single Premium Endowment Plan
 LIC New Endowment Plan

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Must Read Marketing Mix of ICICI Bank [Step by Step Guide]
Child Insurance Plans
 LIC New Children’s Money Back Plan
 LIC Jeevan Tarun Plan
Pension Plans
 Pradhan Mantri Vaya Vandana Yojana (PMVVY)
 LIC Jeevan Shanti Plan


Place in the Marketing Mix of Life Insurance Corporation of India (LIC) – LIC
Marketing Mix The distribution chain of the company consists of agents, brokers,
development officers, marketing executives, finance-related retail outlets, branch offices,
partnerships with banks, distributors, and corporate agencies. Currently, there are eight
zoning offices in LIC, 109 divisional offices, 2,048 branches, 992 satellite offices, and
numerous corporate offices. It also has a network of 242 corporate agents, 1,337,064
individual agents, 79 referral agents, 98 brokers, and 42 banks. Price in the Marketing
Mix of Life Insurance Corporation of India (LIC) – LIC Marketing Mix An effective
pricing policy is a very significant factor in the efficient operation of the insurance
company because it is the pricing policy that influences the sales volume of the company.
In reality, price is the value provided by the seller for the commodity. For any LIC-Life
Insurance policy, the policyholder must pay a premium that is paid either annually, half-
yearly, quarterly or, in some cases, monthly. The management shall take the decision to
set the premium for each policy relating to a specific time.

A complete market analysis is carried out and information on various facts is collected,
such as how much money an individual can afford for a particular scheme and the
economic and financial condition of the market at that particular time. These data help to
develop fair and reasonable pricing policies. The management also makes decisions on
the pricing of the premium mode, the return on investment, the premium level, the
interest on loans, and commissions. If you compare LIC products offer value for money
when compared to other insurance companies. With its excellent brand value and service

12
quality, the consumer can get maximum value on the basis of the price charged for the
LIC product.
Must Read Marketing Mix of Birla Sun Life Insurance [have Explained]
Promotion in the Marketing Mix of Life Insurance Corporation of India (LIC) – LIC
Marketing Mix the Life Insurance Corporation (LIC) promotion strategy is very simple
and straightforward. Its main aim is to inform consumers about its different policies and
about its brand. In order to do so, steps have been taken, such as personal sales,
exhibitions, sponsoring events, advertising, and new schemes. Bags, calendar diaries are
distributed as gifts and incentives to policyholders. Advertisements are seen on TVs,
magazines, billboards. A mobile van for advertising travels through rural areas, creating
awareness of the company. Life Insurance Corporation (LIC) has its own website and
where all the detailed information on any possible queries is provided to the consumer.
The majority of advertising is directed towards insurance that can be purchased by the
common man in order to increase the reach of the company and, at the same time, the
sale of the product. Thus, the introduction of products and the retention of products in the
minds of customers are the main objectives of the Life Insurance Corporation
promotions.
Life insurance is a form of insurance that pays monetary proceeds upon the death
of the insured covered in the policy. Essentially, a life insurance policy is a contract
between the named insured and the insurance company wherein the insurance
company agrees to pay an agreed sum of money to the insured's beneficiary. With a
large population and the untapped market area insurance happens to be a very big
opportunity in India. Today it stands as a business growing at the rate of 15-20%
annually. Together with banking services, it adds about 7 percent to the country’s
GDP. In spite of all this, the growth statistics of the penetration of the insurance in
the country is very poor. Nearly80% of Indian population is without life and health
insurance cover. This is an indicator that growth potential for the insurance sector is
immense in India. It was due to this immense growth that the regulations were
introduced in the insurance sector and in continuation “Malhotra Committee” was
constituted by the government in1993 to examine the various aspects of the
industry. The key element of their form process was participation of overseas

13
insurance companies with 26%capital. Creating a more competitive financial
system suitable for the requirements of the economy was the main idea behind this
reform.

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CLASSIFICATION OF INSURANCE
The insurance industry in India can be broadly classified into two parts.

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”
In1818Britishintroduced 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 for reign equity up to 26%. Following the
opening up of the insurance sector, 12 private sector companies have entered
the life insurance business.

Need for life Insurance

The need to safeguard the family brings in the need for life insurance. Today
insurance has become even more important due to the disintegration of the prevalent
joint family system, in which a number of generations co-existed in
harmony, and a system in which a sense of financial security was always there
as there were more earning members.

15
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 desire 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. LifeInsuranceensuresthatapersongatesbetterpreparedtofacetheuncertaintie
sin the following ways:

16
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 at thoughtful business
concept designed to protect the economic value of a human life for the benefit of those
financially dependent to 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 spending peace and comfort.

SAVINGS AND INVESTMENTS

Insurance is a means to Save and Invest. Your periodic premium is 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

17
 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.

TYPES OF POLICIES

Although 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.

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FUNCTIONS OF INSURANCE
The functions of Insurance can be bifurcated into two parts:
 Primary Functions
 Secondary Functions
 Other Functions

The primary functions of insurance include the following:

Provide Protection Collective bearing of risk –Insurance is a tool for sharing- The
primary function of insurance is to provide protection against future risks, accidents
and uncertainty. Can't check insurance. Occurrence of the risk, but certainly
provides for the loss of the risk. Insurance actually provides 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
that helps move from uncertainty to certainty. Insurance is a device by which
uncertain risks can become more certain.

The secondary functions of insurance are:

Loss Prevention: Insurance warns individuals and business owners to take
appropriate measures to avoid unfortunate consequences of the risk by
following safety instructions; installation of a spark or automatic
alarm systems, etc. Loss prevention translates into a lower payment to the

19
insured by the insurer, which will encourage greater savings in the form of
premiums.
Reducing premiums stimulates greater activity and better protection for
policyholders. Small capital to cover larger risks: Insurance frees entrepreneurs
from investing in security by paying a small amount of premium against larger
risks and uncertainties.

It contributes to the development of large industries. Insurance offers

development opportunities to large industries that present more risks during
their creation. Even financial institutions They may be willing to extend credit
to distressed industrial units that have secured their assets, including plant and
machinery.

Other insurance features include:

Savings and investment means: insurance serves as savings and investment,
insurance is a mandatory means of savings and limits unnecessary expenses of the
insured. To benefit from income tax exemptions, people also invest in insurance.

Source of foreign currency income: Insurance is an international business. The

country can earn foreign exchange by issuing marine insurance policies and in other
ways.

Risk Free trade Insurance promotes export insurance, freeing foreign trade
from risks through different types of underwater insurance policies. The end of
the year 2000 marks a significant change and growth in the insurance industry
scenario in India. The monopoly of public sector insurance companies is
coming to an end and private companies are leading the way. Foreign
companies, both from the life insurance sector and the general sector, have
collaborated and contributed to the astronomical growth of the 'Indian
Insurance Sector'.

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 NON-LIFE INSURANCE (GENERAL)

Triton insurances. ltd was the first general insurance company established in India in
1850, whose shares were mainly in the hands of British. The first general insurance
company established by an Indian was Indian Mercanti insurance co. Ltd., which was
stabilized in 1907. Subsequently, many Indian players emerged. The general
insurance business was nationalized after the enactment of the General Insurance
Corporation (GIC) of India, which took over the post-nationalization general
insurance business.
There are currently 12 general insurance companies, including 4 public sector
companies and 8 private insurers. Although public sector companies still dominate
the general insurance sector, private players are slowly gaining ground. Private
insurance companies are estimated to have a market share of 10 per cent, up from 4
per cent in 2001. In the first half of 2002, private companies recorded premiums
worth Rs 6,340 crore. Most of the new entrants reported losses in the first year of
their business in 2001.
With significant capital expenditures and long gestation periods, infrastructure projects
carry numerous risks during the development, construction and operation stages.
These include risks associated with the implementation of the project,
including geological, maintenance, commercial and political risks.
Without covering these risks, financial institutions are unwilling to
commit funds to the sector, particularly because financing for most private
projects is limited or non-recourse. Insurance costs represent
approximately 1.2 to 2 percent of the total project cost. Under current
rules, payment of insurance premiums is considered part of fixed costs.
Therefore, they are treated as passed-on costs in the calculation of rates.

21
Insurance, like project financing, is provided by a consortium. Typically, an
insurer takes the lead, assuming 40 to 50 percent of the risk and receiving a
proportional percentage of the premium. The remaining companies share the
remaining risk and premium. Policies are generally renewed annually
through competitive bidding of late, with IPP projects losing steam,
insurance companies are once again turning to old firms like NTPC, NHPC
and BSES for their business.
Contribution to the Indian economy
• Life insurance is the only sector that generates long-term savings.
• Distribute financial services in rural areas and among socially less
advantaged people.
• Long-term infrastructure funds.
• Strong positive correlation between the development of capital markets and
the insurance and pension structure.
• Employment creation.
Priority regulation of the insurance industry.
Before deregulation in 2000, the market was a public monopoly.
• Public monopoly
2000 Offices
o More than 800,000 agents
• Distribution only through linked agents
• Commercial focus mainly on a tax savings platform.
• Traditional Style Product Offering: Endowment and Reimbursement Plans
• Inadequate and inflexible products
• Pensions: small part of the product offer
• Limited focus on customer needs.

22
IMPROVE SERVICE STANDARDS

Channel Access Service Points Use fit

Advisors Branch Network Limited use of

IT

PRE-DEREGULATION LIMITED DISTRIBUTION

Multi-channel MULTI USE OF IT

Access SERVICEPOI
NTS
Advisors Call Centers Shorter time around time
Brokers& Email Claims
Corporate agent Website Policy Issuance
Ban assurance Branch Network

23
 CHAPTER -2
REVIEW OF LITERATURE

Rudra Saibaba (2002) has conducted an enquiry on “Perception and attitude of Women
towards Life Insurance Policies”. According to him, 75% of women perceived that life
insurance plans provided coverage against future risk, 58% of women felt that insurance
provided accidental coverage, nearly 41% of women considered insurance beneficial for
availing housing loans, 70% of the respondents are satisfied with the services offered by
the corporation. 58.75% of the women knew about the different types of polices available
with the corporation. 41% of the respondents have not taken any new polices.

Pradeep Gupta and Sanjay Bhayana (2002) discuss the challenges and strategies in the
insurance industry in India. As per study after liberalization in November 1999,
awareness of LIC brand shows 100% as against ICICI prudential awareness 70%
followed by HDFC, with 52%. The study of Tapan Sinha states that 312 million middle
class consumers in India have enough financial resources, but only 2.5% of the
population has insurance coverage and India is the sixth largest market in the world.

Jawaharlal (2003) elucidated that historically, distribution of insurance policies in India

has been totally agent based. The agents were always driven by motive of selling a
product and not in really marketing it. They were compelled to sell products that were
best suited to them rather than the proposer. The Corporation must adopt some new
channels of distribution like banks, village 35 head, post office or the cooperative
societies to improve its performance. The total Indian population was 1.05 billion in July
2003, consisting of 72.22percent of rural population and 27.78percent urban population.
But the penetration level of the life insurance was just twenty percent.
Raman, N. and Gayathri, C. (2004) have observed the customers awareness towards
new insurance companies. They found that 53% of the respondents belong to the age
group below 30, 24% to the age group 31-40, 2% belong to the group of 41-50 and the
rest of the respondents belong to the group of above 50‟.

They also observed that a large percentage of the insured respondents (32%) are
professional, and 56% of the respondents are married. It is also found that 52% of the
respondents have taken a policy to cover risk and 44% of them to avoid tax and the
remaining to invest their surplus amount

Agarwal, V.K. (2004) in his article briefly discusses the various channels of distribution
and new avenue being explored by the new players in the insurance sector. He states that
a customer may have expectations like value added services, development of new
products, technology insurance, solvency, financial security, quality trained staff etc.

Jack Burke (2005) in his article entitled “the Art of Building a Relationship” stressed
that only post-sales service help in capturing more customers. In India, insurance has not
been on the main agenda of either individuals or corporate. Hence reforms encompass not
merely regulatory intervention but also promotional effort to develop the market.

Sunil Maheswari (2005) in his article entitled “managing insurance and the Agents”,
pointed out that those quality agents can sell insurance products in the market
successfully. It is a challenge for any insurance business organization to attract qualified
and capable persons to join and work with them to sell insurance in the competitive
environment.

Kumar Jalendra (2005) in his study revealed that the life insurance premium per capital
is just Rs.550. The Life Insurance Company is the largest player with over 2000 officers.
The present study intends to prepare the profile of life policyholders to examine the
preference of the policyholders towards various types of policies, and to probe into the
reasons behind the insurance product purchases in rural area.
B.V. Rao (2005) indicated that the performance of the LIC of India depends purely on
the performance of its agents. The number of agents has increased from 533133 in 1996-
97 to 1003241 in 2003-04; the average business per agent has 37 increased from Rs,
1064284 to 2197675 during the same period. The study also revealed that 15 percent of
the agents of the LIC of India are highly productive and the remaining 85 percent are less
productive.
In nut shell the former agents brought 61 percent of the new business while the remaining
85 percent contributed the balance 39 percent.

M.J. Mathew (2005) insurance plays an important role in socio-economic prosperity of a

country, as is evident from the contribution of insurance in various industrial and
commercial activities. This book describes various issues relating to various types of
insurance namely life insurance policies, group insurances and salary saving scheme, fire
insurance, marine insurance, miscellaneous insurance etc… in addition to general aspects
of insurance like role and significance of insurance, its principles, process of insurance-
proposal is policy, risks and undertaking risks.

Rajesh am, Ch. and Rajender, K. (2006) article “Changing Scenario of Insurance
Sector” Indian Journal of marketing revealed that insurance companies of India are
required to come up with multi-benefit policies including tax benefits with quality based
timely customer services and need to focus on health insurance which is one of the
untapped areas of insurance including services through innovative products, smart
marketing and aggressive distribution with internet facility with much individual
attention transparency and flexibility to increase the quality and volume of insurance
business.
Swiss Re (2007) in this report it was argued that bancassurance contributes to the overall
efficiency of banks by increasing their productivity and economies of scope. Hence more
and more banks are shaking hands with insurance companies for the growth of banks and
better customer relations. Various opportunities and challenges are discussed.
Dr. B.D. Bhargava (2008) this book gives clear idea about the basics of insurance. The
various principles of insurance are also mentioned with suitable examples. It is all about
the mechanisms of Insurance practices. It is all about all history, development and present
status of the Insurance Industry. Starting from the meaning of the Insurance, it has
explained all the necessary principles of the Insurance, its claim settlement
process, further, Insurance policy in India and outsourcing of the same. It has also
mentioned the barriers in India regarding insurance. And lastly, experience with the
insurance core principles is explained and the author has concluded the book with the
underlying principles of Business Interruption Insurance.

Vara prasad, V. and Murali Krishna, B. (2009) in the article “Insurance sector:
Strategies for Intermediation and Marketing”, revealed that the suggestions brought
forward by this study are mixed. The contribution of insurance sector to economic
development hardly affects financial intermediation. He concluded that in order to make
insurance sector significant component of financial intermediation process, complete
deregulation and increase in face of reforms are essential at the same time, by adopting
proper segmentation capture significant share in the market for the overall benefit of
organizations.

Pasricha G Singh (2009) in his Ph.D. thesis revealed that why LIC is not going ahead
and proposed the basic reason is that their products as well as technology are not
upgraded and also there is need to improve the processes and popularize the scheme.
With the entry of private insurers in the industry many new channels of distribution have
become available. However, LIC has not used them to the desired level. So author
recommended that such channels be used aggressively by LIC to meet the rising level of
competition.
Arul Suresh, J and Rajamohan, S (2010) added that Life insurance agent is a person in
commercial law who has the authorization to act for the principal to legally make a
relationship with those who want to insure themselves through life insurance policies.
LIC agents have to diversify their activities to meet the complex needs of customers.

Selvavinayagam, K. and Mathivanan, R. (2010) article has revealed that the

competitive climate in the Indian insurance market has changed dramatically over the last
few years. At the same time, changes have been taking place in the government
regulations and technology. The expectations of policyholders are also changing. The
existing insurance companies have to introduce many new products in the market, which
have competitive advantage over the products of life insurance companies

Harpreet S. Bedi, Dr. Preeti S. (2011) they have analyzed that overall total business of
LIC is increasing and Liberalization, Privatization and Globalization have incorporated
positive influence on LIC of INDIA and its performance as well. But still there is a lot of
scope development as private sector will always be a challenge in front of LIC.

Anika S., et al. (2012) They have generalized that Indian Industry of Insurance is still
observing good growth, where almost all the industries in the world is trying hard for
survival due to major economic meltdown. IRDA have played a vital role in the growth
of this sector. Move from non-lined to unit linked insurance policies is one of the major
positive changes, similarly, opening is one of the sector for private insurer broke the
monopoly of LIC and has increased the competition among the players.

Dr. A. Mustafa (2012) This book name clearly gives an indication that it is an overview
of entire Insurance Industry. The chapters included in this book are introduction about
Insurance, Risk In Insurance, Insurance Agency, Annuities, Company‟s Profile,
Indemnification, Fundamental Principles Of Life Insurance, Marines Insurance, Fire
Insurance, And Miscellaneous and is has concluded with the last chapters on contracts of
insurance. In this book, third chapter gives details about the Insurance-Agency. In most
insurance transactions, there is an intermediary, usually an insurance agent or broker,
between the buyer and the insurer. The role of the intermediary is to scan the market
match buyers with insurers who have the skill, capacity, risk appetite and financial
strength to underwrite the risk, and then help the client select from competing offers.

Shil P. (2013) highlighted the characteristics of the micro-insurance market in India in

terms of the parties involved, distribution models and challenges, products and outreach.
He has observed that linking micro-insurance with micro-finance makes better sense as it
helps in bringing down the cost of leading. Therefore, there is a need for strengthening
the link between micro-insurance and micro-credit.

R. Irfan, et al. (2013) have analyzed that in India variety of distribution channels are
currently used and some insurers uses multi-channel strategy. The multi-channel strategy
is very appealing and provides benefits. Though there are many other distribution
channels like internet, ban assurance, tele assurance, shop assurance etc. are there, but
still agent is required in this setting, this person typically does not meet with the insured.
Indian Insurance distribution system has to modify itself with the passage of time, by
introducing more innovative distribution channels to grab huge untapped market.

Saravanan (2013), in his paper „Ban assurance Channel-A SWOT Analysis, explained
various strengths, weakness, opportunities and threats of Bancassurance. He concluded
that it is very important for an insurer to understand the merits and demerits of Banc
assurance model.

Dr. R.C. Meena (2014) The complex nature of behavior of consumer makes the study of
production and consumption more difficult. Thus, consumer behavior become more
important to understand our production and consumption system. In this book, the author
has mentioned the content relating to consumer attitudes, personality and consumer
behavior, culture and consumer behavior, organizational buying behavior, etc.
OBJECTIVES OF THE STUDY

Theprofessionalobjectiveswhicharebeingcoveredunderthisprojectareasfollowing-
 To know about demographic factors affecting Products of Max Life
Insurance.
 To analyze the role of advertisement for Max Life Insurance Companies.
 ToknowtheperceptionandconceptionofcustomerstowardsInsuranceproductsan
d specially focused for Max Life Insurance product

31
 CHAPTER -3
RESEARCH METHODOLOGY

1. Research methodology is a way to systematically address the problem of

scope. It can be understood as a science that involves studying how research
is carried out scientifically. has a specific framework to collect data
effectively. Research methodology means “defining a problem, defining the
research objectives, developing the research plan, collecting the information,
analyzing the information, and presenting the results.” This framework is
called “research design.” The research process I followed included the
following steps:

A) Define the problem

B) Develop the research plan
C) Data collection
D) Analysis and interpretation of data
E) Presentation of results

Define the problem and objectives of the research.

A) My research problem to know the comparative study of Lick and
Max New York life insurance.
B) Development of the research plan
1. The development of the research plan involves the following
steps:
a) Data source

32
 b) Research approach
2. Type of research design
a) Find help
b) Sampling plan
3. Size of the papule
a) Sample size
b) Contact methods
c) Questionnaire design
d) Scope of the study
4. The number of respondents interviewed is 100.
a) The study is carried out in Dehradun.
b) This study is carried out to analyze the market situation of Max
Life insurance with that of other insurance companies in India.

5. DATA COLLECTION
a) Determination of data sources:
b) There are two main sources of data.
c) Primary data
d) Secondary data

6. Primary information:
This is original information collected for a specific investigation.
The primary data of this research study was collected through
direct survey to obtain these primary data. The researcher
prepares a well-structured questionnaire.

33
 7. Secondary data:
This means that the data is already available, that is, it refers to
data that has already been collected and analyzed by someone
else. Secondary data can be published data or unpublished data.

9. Normally published data is available in: -

1) Books Magazines and newspapers
2) 2) Public records and statistics

8. DATA ANALYSIS
a) Data collection method:
b) sampling technique: -

9. To prepare the questionnaire, the basic objective of the survey was

focused; previous surveys carried out among prospects contained
secondary data through files and folders. For a convenience sampling
survey, this method involves the intentional or deliberate selection of
particular units of the universe that are available in the case of access
to constitute a sample that represents the universe.

10.Analysis tools for data collection:

11.Different tools were used in this research:
12.1. Tables.
13.2. Pie charts.
14.3. Bar diagrams.
15.4. The percentage method was used to analyze the data.

34
 CHAPTER -4
DATA ANALYSIS AND INTERPRETATION

Age of the respondents:

PARTICULARS NO. OF RESPONDENT PERCENTAGE

(AGE)
Less than 25 11 11%
25 -35 40 40%
35 – 45 20 20%
Above45 29 29%
TOTAL 100 100
Table No. 4.1

Graph No.4.1

Interpretation: - According to above table 11% are of age group less than 25, 40% are of
age group 25-35 and 20% are of age category 35-45 and 29% are of above 45.

D
i
p
l
35 o
m
a
 Qualification of the respondents.

PARTICULARS NO. OF RESPONDENT PERCENTAGE

Graduate 52 52%
Post Graduate 29 29%
Diploma 8 8%
Other discipline 11 11%
TOTAL 100 100%

Table No. 4.2

Graph No. 4.2

INTERPRETATION: From the survey it was found that amongst 100respondents

a) 52% of the respondents were graduate
b) 29% of the respondents were postgraduate
c) 8% of the respondents were diploma
d) 10% of the respondents were other discipline

36
 Occupation of the respond

PARTICULARS NO. OF PERCENTAGE

RESPONDENT
Businessman 34 34%
Professionals 18 18%
Jobholders 37 37%
Others 11 11%
TOTAL 100 100%

Table No. 4.3

Graph No. 4.3

INTERPRETATION: From the survey it was found that amongst 100 respondents
a) 34% of the respondents are businessmen.
b)18% of the respondents are professionals.
c) 37% of the respondents are job holders.

d) 11% of the respondents are background.

37
Average annual income of respondents.

PARTICULARS NO. OF PERCENTAGE

RESPONDENT
Up to 1lakh 33 33%
1lakh-3lakh 43 43%
3lakh-5lakh 20 20%
5lakh& above 04 4%
TOTAL 100 100%

Table No. 4.4

Graph no 4.4

INTERPRETATION:
a) The survey revealed that among 100 respondents
b) a) 33% respondents have an average annual income of up to Rs 1 lakh
c) B) Average annual income of 43% respondents is 1 lakh to 3 lakh
d) c) Average annual income of 20% respondents is 3 lakhs to 5 lakhs
e) d) Average annual income of 4% respondents is more than Rs 5 lakh

38
 Family size of respondents:

PARTICULARS NO. OF RESPONDENT PERCENTA

GE
Below5members 50 50%
5-10members 32 32%
Above10members 28 28%
TOTAL 100 100%

Table No. 4.5

Graph no.4.5

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

39
 According to respondents’ life insurance is:

PARTICULARS NO.OF. PERCENTAGE

RESPONDENT
Risk Coverage 40 40%
Tax Savings 30 30%
Security 30 30%
TOTAL 100 100%

Table No. 4.6 and Graph No. 4.6

INTERPRETATION: From the survey it was found that amongst 100respondents

a) 40% of the respondents say risk coverage.

b) 30% of the respondents say tax savings.
c) 30% of the respondents say financial security.

40
 A wariness of Max Life Insurance

PARTICULARS NO.OF. RESPONDENT PERCENTAGE

No 17 17%
Yes 83 83%
TOTAL 100 100%
Table No. 4.7

Graph No. 4.7

INTERPRETATION: -From the survey it was found that amongst 100 respondents.

a) 83% of the respondents say that they are aware of Max Life Insurance Co.17%
of the say that they arena ware of Max life Insurance Co.

41
 Awareness regarding Insurance:

PARTICULARS NO.OF. RESPONDENT PERCENTAGE

Yes 70 70%
No 30 30%
TOTAL 100 100%

Table No. 4.8

Graph No. 4.8

INTERPRETATION: From the survey it was found that amongst 100 respondents
a) 70% of the respondents say that they area ware of insurance.
b) Only 30% are unaware of insurance. % of respondents who are under different
plans of Max life insurance

42
 PARTICULARS NO.OF. RESPONDENT PERCENTAGE

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%

Table No. 4.9

Graph No. 4.9

INTERPRETATION:
From the survey it was found that amongst 100 respondents:
a) 30% of the respondents are under invest gain plan
b) 36% of the respond ensure under protection gain plan
c) 8% of the respond ensure under child gain plan
d) 15% of the respondents are under whole life plan
e) 11% of the respondents are under pension gain plan

43
e

% of respondents benefits of choosing the particular products:

PARTICULAR NO.OF. PERCENTAGE

S RESPONDEN
T
Risk coverage 60 60%
Additional 20 20%
benefit
Maturity date 12 12%
Sum Assured 8 8%
TOTAL 100 100%

Table No . 5.1 and Graph No. 5.1

44
INTERPRETATION:
a) 60% of the respondents say that a benefit of choosing the particular
Products for Safety of life.
b) 20% of the respondents say that a benefit of choosing the particular products
is for additional benefit to family.
c) 12% of the respondents
1
say that2a benefit of choosing the particular products
is for maturity date.
d) 8% of the respondents say that a benefit of choosing the particular products
is for sum assured.

Are there spinets satisfied with the services of M.L.I. Insurance?

PARTICULARS NO. OFRESPONDENTS PERCENTAGE

N0 30 30%
YES 70 70%
TOTAL 100 100%

45
 Table No . 5.2 and Graph No. 5.2

INTERPRETATION:
From the survey it was found thatamong100 respondents: -

a) 70% respondents are satisfied with the services of M.L.I.

b) 30% respondents are not satisfied with the services of M.L.I.

Has media been the source of information for various plans of max life
insurance co:

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
YES 60 60%
NO 40 40%
TOTAL 100 100%

46
 Table No . 5.3 and Graph No. 5.3

INTERPRETATION:
From the survey it was found that amongst 100 respondents:
60% respondents have medias the source of information for various plans.

40% respondents do not have media as the source of information for various plans.

47
 Which source of media has provided information
for the various plans offered by M.L.I:

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

NEWSPAPER 30 30%
MAGAZINE 15 15%
TELEVISION 45 45%
RADIO 10 10%
TOTAL 100 100%

Table No . 5.4 and Graph No. 5.4

INTERPRETATION:
The survey found that out of 100 respondents, 30% respondents prefer newspapers as

a source of information, 15% respondents prefer magazines as a source of information,

45% respondents as a source of information Likes television. 10% of those

surveyed prefer radio as a source of information.

48
 FINDINGS

✓ Maximum of the insurance is purchased by the middle age group.

✓ Insurance is mostly preferred by the jobholders.
✓ Maximum insurance holders fall under the average annual income
ranging between 1- 3 lakhs.
✓ Insurance is usually preferred by small families.
✓ Mostly people prefer insurance to cover their risk factor.
✓ M.LI. insurance company has a good market value
✓ Insurance holder sunder M.L.I prefer protection gain plan above all
the other plans offered to them.
✓ The services provided by M.L.I. are satisfactory.
✓ Television media is one of the major source that provides information
regarding different plans of M.L.I.

49
 RECOMMENDATIONS

✓ People should also be made aware of various other benefits

attached with insurance other than the factor of risk coverage
only.
✓ M.L.I. should provide more information regarding the
different plans in order to be able to cover allege group.
✓ Promotion techniques should been hence to create more
awareness among people about M. L.I.
✓ Insurance plans should be designed in such away that it is
able to cater all family sizes.
✓ M.L.I. should also emphasize on the usage of other sources
of media provide information regarding the various plans
offered by them.

50
 CONCLUSION

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

protection, collective bearing of risk, assessment of risk, certainty
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.

51
 BIBLIOGRAPHY

https://www.insuranceirda.com. Financial Services Marketing,

Himalaya Publishing, pp. 221.

https://www.life Insurance.com P. K. Agrawal, Marketing

Management, Pragati Prakash an, Meerut, 2009

P. K. Agrawal, American Marketing Association. Samir Gupta,

“Marketing Strategies in Life Insurance Services”,
Researchjournal.com http://www.

http://www.business.mapsofindia.com
http://www.maxlifeinsurance.com India [10] http://www.google.co.in
“marketing concept...

Philip Kotler, Keller, Koshy, Jha, 13th Edition, Marketing

Management, Pearson Education

. Williams, J. (1974). "Fundamentals of Marketing". Tokyo: McGraw

Hill.

. Anuroop Tony Singh. (2004). Exciting opportunity. Asian insurance

booth, 28-29

. Marketing Insurance Products in Kenya: A Case Study by African

Merchants Assurance Company 5. Monaghan, T (1991).

“The role of sponsorship in the marketing communication mix,

International Advertising Magazine.”

52
QUESTIONNAIRE

Age of the respondents:

Less than 25
25 -35
35 – 45
Above45

Qualification of the respondents.

Graduate
Post Graduate
Diploma
Other discipline

Occupation of the respond

Businessman
Professionals
Jobholders
Others

Average annual income of respondents.

Up to 1lakh
1lakh-3lakh
3lakh-5lakh
5lakh& above

Family size of respondents:

Below5members
5-10members
Above10members

According to respondents’ life insurance is:

Risk Coverage
Tax Savings
Security

53
wariness of Max Life Insurance
No
Yes
No
Yes

Awareness regarding Insurance:

Yes
No

respondents benefits of choosing the particular products:

Risk coverage
Additional benefit
Maturity date
Sum Assured

Which source of media has provided information for the various plans offered by M.L.I:
NEWSPAPER
MAGAZINE
TELEVISION
RADIO

54