ON

A study on Training and Development in Max life insurance.

SUBMITTED

IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR THE
AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
(2012-2014)

UNDER THE GUIDANCE OF: SUBMITTED BY:
RISHES DWIVEDI
ANSHU YADAV
(MBA, FACULTY.) MBA-4
rd
SEM.
ROLL-4014040





PREFACE

A professional course in (Master of business administration) is incomplete unless the theoretical
knowledge acquired in the class room is backed up by practical exposure, as theories alone do not give
perfection to any discipline. The gap between theory and practiced is bridged by the Project training,
which has been an integral part of the syllabus.
This present Project report is an image of what I have done and observed during my research project in
Max life insurance.
I was assigned a project A Study on Training and Development in Max life insurance.
I have tried my level best to be as a systematic as possible and to avoid any sort of biases.











ACKNOWLEDGEMENT

All truth passes through three stages. First it is ridiculed. Second it is opposed. Third it is accepted as
being self evident.

At the very outset, I would like to acknowledge the valuable help of some people without their
contribution it would not have been possible to complete this project report.
First of all I would like to thank Mrs.Anshu Yadav, HR deptt. of IBM,CSJM without whom this
research would not have been possible .I express my gratitude to insurance sector for having giving
me an opportunity to work with them and make the best out of my internship. My heartly gratitude gos
out to the staff and employee at Max insurance for having co-opreated with me guide thought-out
60DAYS of my internship period. I thank my institute INSTITUTE OF BUSINESS
MANAGEMENT(UNIVERSITYCAMPUS),CHHATRAPATI SHAHUJI MAHARAJ
UNIVERSITY, Kanpur for having given me this opportunity to put to practice, the theoretical
knowledge that I imparted from the program. I take this opportunity to thank my parents and friends
who have been with me and offered emotional strength and moral support.

RISHES DWIVEDI
MBA-4
rd
SEM.







DECLARATION

I RISHES DWIVEDI student of MBA of Dayanand INSTITUTE OF BUSINESS MANAGEMENT,
CSJMU,Kanpur. Hereby declare that the project work on Max life insurance presented in this report is
my own.
Work and has been carried out under the supervisor of Ms. ANSHU YADAV (MBA- FACULTY(HR)
of IBM,CSJM, Kanpur) .

My report is submitted as part of study curriculum and as a partial fulfillment of the degree of
MBA. I am also declaring that I am submitting this report on the summer training report A study of
Training and Development in max life insurance. I guarantee that this project report has not
been submitted for the awards to any other University for degree, diploma or any other such prizes.

Place: Kanpur RISHES DWIVEDI
Date : ROLL NO. 4014040





TABLE OF CONTENT

INTRODUCTION 1-5

SUMMARY 6-33

INDUSTRIAL BACKGROUND 34-48
NATURE & SCOPE OF THE STUDY 39-40
RESEARCH METHODOLOGY 41-45

ANALYSIS & INTERPRETATION 46-64

LIMITATIONS OF THE STUDY 65-65

DIVISION OF THE STUDY 66-91

CONCLUSION 92-93

BIBLIOGRAPHY 94-94

QUESTIONNAIRE 95-99






INTRODUCTION
BACKGROUND

Max Life insurance company Ltd is a 26:74 joint venture between New York Life,
A fortune 500 companies and Max India limited, one of India s leading Multi-business Corporation.
New York Life had revenues of US$ 25.69 billion in 2013 and was ranked 185
th
in the fortune 500
list. It has over 12,100 employees.
MNYL has a paid up capital of the highest capitalized life insurers in India. MNYL has adopted prudent
financial practices to ensure safety of policyholder Funds and therefore invests only in debt
instrument and meets both Indian and International disclosure norms. MNYL offers a suite of
products comprising 14 life insurance products and 9 option and Riders. These products and riders can
be customized to over 400 product combination.
One of the leading private sector life insurance companies in India MNYL
has emerged as one of the countrys leading private life insurance companies having recorded a
sum assured of over US$ 3.37 billion through over 446,000 policies sold. MNYL has underwritten
a premium of around US$ 45.7 million in 2004 with a premium income of US$ 77.3 million for
the year 2004-05.
MNYL had a premium income of US$ 48 million for FY 2003-04 , an increase of over 123
percent over FY 2002 -03.
In terms of the number of policies sold ,MNYL has underwritten 145,581 policies, increase of
over 87 percent over FY2002-03.
MNYL has a team of over 1500 employees working at 48 office across 34 cities in India.
MNYL has also set up a centre of operational excellence at its corporate office in Gorgon ,
Haryana. After the liberalization of the life insurance sector in 1990s private
Players are garnering an increasing share of the life insurance market.
MNYL has managed to capture an overall market share of 0.70 percent and a share of 5.4
percent among private life insurers in India

MNYL voted as one of the top 25 companies to work for India
Max New York life was among the top 25 companies to work for in India, according to a
recent survey published in business world magazine ,
Great workplace in India
There were around 120 companies that took part in the survey and MNYL was ranked at the
20
th
position .
Max New York life was the first life insurance company in India to be awarded the ISO9001:
2000 certification. ISO certification is internationally recognized as a quality standard that is
critical to achieving success in the global marketplace.
The certification process was conducted by Bureau VERITAS (BVQI) , the largest certification
body in India.

Strong agency force
MNYLs primary channel of distribution is the agency force of over
5,500 in dividual agents. Agent are selecting using a carefully designed program and are trained
for over 152 hours , far in excess of the mandatory 100 hours stipulated by the insurance
regulatory and development authority(IRDA).
The highly trained agency force has amongst the highest productivity of the private life insurance
companies.
In FY-2003-04, 81 agent were selected for the Million Dollar Round Table (MDRT),
An exclusive congregation of the world top selling life insurance agents.
This is an 80 percent increase over the number of agent selected in 2002-03.

HIGH QULITY SERVCE
The insurance market was a monopoly and therefore the services provided by the incumbent
player were poor. However with the change in market scenario, customer now have a much service
expectation which is being offered customer through MNYLs highly trained employees and
agents.
For example, agent undertake a need analysis with every customer before suggesting a life
insurance solution. A personal insurance plan, which gives the
customer complete details of his/her policy with a year-on-year summary, is presented even
before he/she buy the policy. Also all policy are hand delivered by the agent and the customer
understands the entire policy and its terms.
LEVERAGING THE INDIA ADVANTAGE
New York Life , a part from leveraging the low penetration Indian insurance market, is also
taking advantage of the large investment opportunities provide by the Indian infrastructure sector.
NYL has a 10 percent stake in Gujarat Papaya port Ltd(GPPL). Part of the largest shipping lines
and third largest port operator in the world and AP Moller, Denmark,
Are planning to develop the Pipavav port as a regional hub.
NYL is a stakeholder in Bharti Tele-Ventures Limited (BTVL). Which is leading players in the Indian
telecommunication infrastructure sector?



FUTURE PLANS
The global life insurance major is bullish in favour of Indian over china in its
international business ploans.
The company visions is to become Indian most admired life insurance company.
Taking advantage of the freedom given to expand,
MNYL now proposes to push its business to second-rung towns.

MNYL is also planning banc assurance tie-ups for expanding its network.

MNYL has projected a capital requirement of over US$ 22 million every year for the next three
to four year. The cumulative investment required to grow the business till FY 2007-08 is to the
tune of US$ 133-144 million. Of this, the joint venture partners would invest US$ 76.6 million.

NYL plans to raise its stake in MNYL after budget 2004 announced allowing
a hike in foreign partners holding from 26 percent to 49 percent.

MNYL is in talks with a number of large banks which might want to forge equity -based
partnership with the company. The insurance company is working at developing its business
through banc assurance route


Training and Development
Agent development is an ongoing through which managers use a number of approaches and tools. At the
core of this learning process is the weekly performance review and planning (PRP) meetings-the most
important routine opportunity to coach, guide and support agents.
The PRP is an individual conference between agency development manager and an agent. To properly
conduct a PRP, the agency development manager needs to have a clear understanding of the PRPs
objectives, what must be done to prepare for the meetings and an agenda. PRPs are the most important
component of the agent development process, helping them grow, become self-sufficient and ultimately
become future leaders in the office.
Early in a career, emphasis will be on activity- to show the agent how to analyze activity and production
and plan future activities that will create a solid foundation.
The principle objectives of the PRP are to identify an agents knowledge or skill development needs and
to stimulate the agent: the meeting is essentially a review of the agents business plan
1. Review activities and results from the previous week
2. Identify and discuss problems and challenges encountered
3. To develop effective work habits
4. Plan a successful coming week to develop profitable markets

The role and attitude of the field managers in this interview should be coach and business partner rather
than one of an employee counseling a subordinate. Managers must carefully use language and coaching
complete agent understanding.
The PRP is a fact finding session where managers and agent diagnose problem and prescribe the action
needed solve the problem.
When the PRP indicates that the agent has a need to gain additional knowledge or to work on developing
skills; a GID, an IID or FOD should be schedule to work on those needs.
The coaching style in the PRP should be appropriate to the development level of the agent. Listing and
gaining commitment are critical. New agents ultimately need directive leadership that will provide them
specific guidance on what to do and to do it. as agents mature in skills and experience, they need leaders
who are less directive and who through directed questioning help them find and implement solution s that
they are personally committed to.The listening process should be applied for knowledge, attitude and
skills problems as well as issues, such as belief conflicts, fears and or logistical obstacles. Performance
review and planning (PRP) sessions are ultimately designed to help agents become effective business
owners.
Whenever possible, managers should schedule agent PRP session on the same day each week. Each PRP
session should last approximately 45 minute, break before the next PRP to review documents and prepare
for the next session.
Different topics are covered at different times and therefore the agenda will change slightly from week to
week.
Note the questions to be asked of the agent in each step. By following a question asking process, agents
will be forced to understand and learn more about their own business than being recipients of a weekly
lecture.

Performance review and planning process:
Documents to conduct an effective PRP:
Plan your year book(ADM)
Plan your year book(AGENT)
White book (Agent)

PRP flow
Open the meeting with an inquiry about the agents successes from previous week.
Celebrate achievements, and encourage the agent to describe the progress they have made in their
growth as a professional.

1. Review progress with last weeks PRP comments:
AG 1 has specific actions that were proposed for areas of improvement noticed last week & ADM
agents actionable. Review status.


2. Record weekly activity in AG3 (source white book):
The controllable are most important. Ask the agent for their analysis of the numbers.
What was done to generate the results? What were activities that had the biggest impact? Where
were the shortfalls? Were previous activity commitments kept? Why or why not? Check root
cause for each activity. E.g. why few references were collected or so many appointments booked
etc.

3. Record customers whom policy sold last week AG2:
Discuss each column in AG2, market, family income etc & advice on future needs & how
agent could have sold higher premium. E.g. check FF & advice how better solution could
be given in future.
Ask them to identify possible trend and additional sales opportunities. Ask question about
their cases and the underwriting process. This is an opportunities to coach the agent on
effective management of the underwriting process and to determine if they have a good
understanding of their compensation.
Check if policies delivered personally (if applicable) & referrals taken.

4. Diagnose overall sales problem & specific causes:
Diagnose based on data ratios in AG 3 over the last few weeks. Record improvement
plan/actionable in AG1.Block IID/Observation etc dates in your blue book & Agent white book.

5. Check the status/attendance of all development activities planned as per Training calendar.
E. g PRP attended, GID attended, Gurukul, Clinical/FTS/IID etc attended if due last week.
Check understanding of agent in development activities by random check on what
Agent learns in these sessions.
Reiterate importance of agent attendance in training & drive attendance for next week.

6. Review & help plan for the next week:
Plan for all input activities on basis of his ratios & goals for the month.
Check what are the confirmed appointment and development session? Are required events
noted and blocked? Ask about key family activities; are they also blocked out? Are they
taking best advantage of prime sales time and scheduling administrative activities when
client are difficult to race? Where is their personal study time schedule? What community
involvement activities are scheduled to expand network and contact?
Reiterate that only consistent inputs lead to output. help plan names for calls next week
through referrals taken,P200,existing customer list etc. reiterate collection of referral for
next week.
This component of the PRP is essential. The agent cannot change the result from the prior
week; only learn from the lessons they provide. With a primary
Focus on helping agent plan and execute the coming weeks, managers can ensure that the
agent can experience some positive result and progress on a weekly basis.

7. At the close of the PRP, plan the next step with the agent, and record these on the development
plan (AG-1).This plan include the most important development need mutually identified, a
statement of the agents commitment, the management plan of action for addressing the need, and
the next follow up date. it is important to ask agent: what they feel are the biggest need, what their
commitment for the coming week are and what role they would like you, as their coach, to play. It
must be clear to the agent that they own the results from last week and they are responsible for the
effort required for the coming two week. The managers role is to coach, provide resources and
help hold the agent accountable.

8. Reiterate overall goals; if needed reiterate experience & end on a high note.
9. Things to remember:
Asking certain open-ended question on occasion can help managers better understand whats
going on with an agent when they are continuing to fail to meet commitment or established
standards. For example, when necessary begin the PRP with an open-ended question such as:
What are your biggest challenge and fears right now?
What should we be talking about today?
What are you hoping I dont ask about today?
Remember, the porous of these one on one coaching sessions is to help the agent self-discover the
root issue they are experiencing and take responsibility for the effort required to resolve them.
Building a business is a lot about the numbers but not entirely. There are many emotional issues
and stresses in the career and as a coach you must be prepare to listen and ensure clear and deep
understanding before potential solutions discussed and recommendation made.


PRPs should never become simply a number exercise where real conversation avoided. As
needed, ask deep and penetrating questions to seek out what are the real below the line issues
that are holding the agent back.

Compliment for Good input activities: No. of phone calls, quality of FF done, appointments
booked, quality of prospect met, number of referrals taken, etc.

Impact and drive right behavior through such compliment.




Importance of employee training

The importance of training your employees - both new and experienced -- cannot be overemphasized.
Effective training of new employees results in employees who:
Know what they're doing
Save time
Have a good feeling about the company
Get off to a good start.

New Hire Orientation
New hire orientation programs include showing new workers how to perform their jobs safely and
efficiently. But leading companies know the importance of employee training and that orientation is a
great opportunity to introduce employees to the company, its products, its culture and policies - and even
to the competition. Adding these elements to your new employee orientation checklist can greatly
improve worker satisfaction and employee retention.



Supervisor Management Training
The importance of employee training doesn't end with new workers. Manager training and development
is equally important to workplace safety, productivity, and satisfaction. Among the most useful skills that
can be addressed are manager communication, employee motivation, and employee recognition.
But managers are busy people, and that's why manager training online using TrainingToday is such an
effective means of keeping your supervisors at their best. TrainingToday's online training is also an
efficient way to help break experienced workers of sloppy - and possibly unsafe - work habits.
Required Employee Training
Many standards promulgated by the Occupational Safety and Health Administration (OSHA) explicitly
require employers to train employees in the safety and health aspects of their jobs. Other OSHA
standards make it the employer's responsibility to limit certain job assignments to employees who are
"certified," "competent," or "qualified"-meaning that they have had special previous training, in or out of
the workplace. These requirements reflect OSHA's belief that training is an essential part of every
employer's safety and health program for protecting workers from injuries and illnesses.
From an HR perspective, a growing number of states are requiring workplace harassment training for
employees, and states such as California (AB 1825 training), Connecticut, and Maine specifically require
employee sexual harassment training, yet another example of the importance of employee training.

Training Today Offers Recommended and Required Employee Training
Training today offers required employee training and recommended training on more than 100 crucial
training topics. To name just a few:
Employee Diversity Training
Workplace Safety Training for Employees
Workplace Sexual Harassment Training for Employees
Emergency Preparedness & Fire Prevention Training
Team Building Training for Employees - Workplace Team Building
Office Ergonomics Training
Hazard Communication Training - Right to Know

Related Resources: Training Courses Training Resources Training Topics








Training Course
Emergency Action and Fire Prevention
This online safety training course will teach employees to understand workplace hazards that lead to an
emergency and how to respond quickly and efficiently to an emergency situation. Also covered in this
training course is how to evacuate an area in an emergency, protect others from fire and other hazards,
prevent fires, and respond to fires and spills while at work.


Workplace Safety for Employees
Employees play a critical role in helping to achieve safety and health objectives. By the end of this online
safety training course employees will be able to understand why safety is such an important workplace
issue, identify the requirements of OSHA and the law, know what the safety policy requires, and take an
active role in promoting workplace safety and health.


Training Resource

Creating a Custom Training Plan for Your Organization
Trainers should research their company's situation thoroughly before developing a customized training
plan for you company.This article shows you how to plan an effective safety training program. You can
use many different company resources to help you determine your company's training needs, such as
company goals, HR complaints and legal obligations.
Ensure Your Training is Effective
A successful training program is always a work in progress, and the training cycle isnt complete without
an evaluation of trainings effectiveness, which leads to decision-making and planning for future training.
Here are several methodologies for evaluation as well as practical ways to retrieve good results.

The Most Effective Training Techniques
There are numerous methods and materials available to help you prepare and equip employees to better
do their jobs. In this article, we take a close look at each of the myriad techniques, and examine their
advantages and disadvantages. We also explain how you can combine the various methods into an
effective blended learning approach.


Related Training Topics
Employee Training
Employee training is essential for an organizations success. Despite the importance of training, a trainer
can encounter resistance from both employees and managers. Both groups may claim that training is
taking them away from their work. However, a trainer can combat this.





Online Employee Training
A growing number of employers are turning to online employee training for a hands-on, interactive way
for employees to learn. More economical in both time and money than conventional training, this form of
training has become more and more popular as Internet technology has improved.

Supervisor Training
An effective supervisor training program is crucial because a bad supervisor or even a bad decision by an
otherwise good supervisor has haunted countless employers, whether it comes in the form of lower
employee productivity or employee lawsuits.

Workplace Training
One of the most effective ways an employer can avoid the same fate is by having a well-trained
workforce. Effective workplace training can help employers avoid employee lawsuits, workplace injuries,
and violations of laws and regulations.

Objectives of Training

The objectives for the training of employees:
1. To increase productivity- Instructions can help employees increase their level of performance on their
present assignment. Increased human performance often leads to increased operational productivity and
increased company profit.

2. To improve quality- Better informed worked are less likely to make operational mistakes. Quality
increases may be in relationship to company product or service or in reference to the intangible
organizational employment atmosphere.
3. To help a company fulfill its future personnel needs- Organizations that have a good internal programme
for development will have to make less drastic manpower changes and adjustments in the event of
sudden personnel alterations. When the need arises organizational vacancies can be easily staffed from
maintaining an adequate instructional programme for both its non-supervisory and managerial
employees.
4. To improve organizational climate- An endless chain of positive reactions result from a well planned
training programme.
5. To improve health and safety- proper training can help prevent industrial accidents. A safer atmosphere
leads to more stable mental attitudes on part of employees. Managerial mental status would also improve,
if supervisors know they can better themselves through company designed development programmes.
6. Obsolescence prevention- Training and development programmes foster the initiative and creativity of
employees and help to prevent manpower obsolescence due to age, temperament, or motivation or the
inability of a person to adapt himself to technological changes.
7. Personal growth- Employees on a personal basis gain individually from their exposure to educational
expressions. Management development programme seems to give participants a wider awareness, an
enlarged skill and enlightens realistic philosophy and make personal growth possible.


Role of Trainer
The conventional view about the role of a trainer is to conduct training programmes. A good trainer must
necessarily be able to take sessions in different training courses. His ratings in these training programmes
would mostly determine his success or otherwise as a trainer. While this is still considered important I do
not think it all that important in the changing circumstances. A brief explanation is necessary. Because of
the industrial revolution there has been a stress on manufacturing function as the industrial Revolution
was brought about by the technology of mass production. Personnel Managers and Manpower
Development Managers working in the manufacturing culture of organizations took a manufacturing
approach to development of human resource. This approach starts with the belief that as a raw material
by processing is converted into the final product, so is a human resource, which when put through
different management development programmes, is converted into a good management resource. Thus,
the trainer became a 'manufacturer' of training programmes.


Trainer or facilitator
The time has come to develop a new perspective, to shift from a manufacturing approach to an
agricultural approach towards development of human resource. What is this agricultural approach? A
parallel can be drawn between a seed and human resource. All an agriculturist does is to provide a
conductive climate by providing water and fertilizer around a seed so that it grows to be a plant and the
plant into a giant tree.
The same is true of the development of human resource. Hence the trainer's role will have to change from
one of conducting training programmes to that of being a facilitator. The stress has to be on learning
rather than on teaching. A facilitator should facilitate learning as I believe management cannot be taught.
It can only be learned.
General Electric Company in a research study found out four simple principles of development. The most
important of them was that all development is self development. No development can take place in an
apathetic or a hostile manager. An interest for development has to be created within the manager. The
trainer's role is to create that interest.

TYPES OF TRAINING

1. On-the-job Training and Lectures
The two most frequently used kinds of training are on-the-job training and lectures, although little
research exists as to the effectiveness of either. It is usually impossible to teach someone everything she
needs to know at a location away from the workplace. Thus on-the-job training often supplements other
kinds of training, e.g., classroom or off-site training; but on-the-job training is frequently the only form of
training. It is usually informal, which means, unfortunately, that the trainer does not concentrate on the
training as much as she should, and the trainer may not have a well-articulated picture of what the novice
needs to learn.
On-the-job training is not successful when used to avoid developing a training program, though it can be
an effective part of a well-coordinated training program.
Lectures are used because of their low cost and their capacity to reach many people. Lectures, which use
one-way communication as opposed to interactive learning techniques, are much criticized as a training
device
2. Programmed Instruction (PI)
These devices systematically present information to the learner and elicit a response; they use
reinforcement principles to promote appropriate responses. When PI was originally developed in the
1950s, it was thought to be useful only for basic subjects. Today the method is used for skills as diverse
as air traffic control, blueprint reading, and the analysis of tax returns.

3. Computer-Assisted Instruction (CAI)
With CAI, students can learn at their own pace, as with PI. Because the student interacts with the
computer, it is believed by many to be a more dynamic learning device. Educational alternatives can be
quickly selected to suit the student's capabilities, and performance can be monitored continuously. As
instruction proceeds, data are gathered for monitoring and improving performance.

4. Audiovisual Techniques
Both television and film extend the range of skills that can be taught and the way information may be
presented. Many systems have electronic blackboards and slide projection equipment. The use of
techniques that combine audiovisual systems such as closed circuit television and telephones has
spawned a new term for this type of training, teletraining. The feature on Sesame Street " illustrates the
design and evaluation of one of television's favorite children's program as a training device.
5. Simulations
Training simulations replicate the essential characteristics of the real world that are necessary to produce
both learning and the transfer of new knowledge and skills to application settings. Both machine and
other forms of simulators exist. Machine simulators often have substantial degrees of. Physical fidelity;
that is, they represent the real world's operational equipment. The main purpose of simulation, however,
is to produce psychological fidelity, that is, to reproduce in the training those processes that will be
required on the job. We simulate for a number of reasons, including to control the training environment,
for safety, to introduce feedback and other learning principles, and to reduce cost.
6. Business games
They are the direct progeny of war games that have been used to train officers in combat techniques for
hundreds of years. Almost all early business games were designed to teach basic business skills, but more
recent games also include interpersonal skills. Monopoly might be considered the quintessential business
game for young capitalists. It is probably the first place youngsters learned the words mortgage, taxes,
and go to jail.
Awards you International recognition for your previous academic, and life experience in the form of a
degree.
The Asian European University assess your experience using

The Five-Step Training and Development Process:-

1. NEEDS ANALYSIS :-

Identify specific lob performance skills needed to improve performance and productivity.
Analyze the audience to ensure that the program will be suited to their specific levels of education,
experience, and skills,
as well as their attitudes and personal motivations.
Use research to develop specific measurable knowledge and performance objectives.



2. INSTRUCTIONAL DESIGN :-
Gather instructional objectives, methods, media, description of and sequence of content, examples,
exercises, and
Activities. Organize them into a curriculum that supports adult learning theory and provides a blueprint
for program
Development.
Make sure all materials, such as video scripts, leaders guides, and participants workbooks,
complement each other, are
written clearly, and blend into unified training geared directly to the stated learning objectives.
Carefully and professionally handle all program elementswhether reproduced on paper, film, or
tapeto guarantee
Quality and effectiveness.

3. VALIDATION:-
Introduce and validate the training before a representative audience. Base final revisions on pilot results
to ensure program
effectiveness.


4. IMPLEMENTATION:-

When applicable, boost success with a train-the-trainer workshop that focuses on presentation
knowledge and skills in
Addition to training content.

5. EVALUATION AND FOLLOW-UP:-
Assess program success according to:
REACTION Document that learners immediate reactions to the training.
LEARNING Use feedback devices or pre- and posttests to measure what learners have actually
learned.
BEHAVIOR Note supervisors reactions to learners performance following completion of the
training. This is one way to
measure the degree to which learners apply new skills and knowledge to their jobs.

RESULTS Determine the level of improvement in job performance and



DEVELOPMENT
The KASH model

Knowledge: knowledge is what you know. Peak performers know what it takes to win. Knowledge
however is highly overrated. The difference between peak performers and under-performers is the
methods through which, peak performers SKILLFULLY IMPLEMENT more or what they know.
Knowledge without activity doesnt make a difference.

Attitude: attitude isnt about good or bad but it describes how a person thinks. Peak performers
think alike. They have the same attitude and outlook about their customers, products and services, the
people, and their future as other peak performers.

Skill: in order for people to be successful they must acquire the necessary skills required for their job.
Skillful people understand practice makes permanent, only perfect practice makes perfect.

Habit: peak performers spend a large percentage of their day engaged in the activities which produce the
greatest result. Underperformers spend most of their day engaged in meaningless busywork which
doesnt make a difference.

The value of developments
There are 2 major reasons why we train and develop our agents.

1. Vertical growth: productivity is important to sustenance of any business big or small. It is as true
for the organization as it is true for an ADMs team. It is very difficult for an organization or an
ADM unit to survive if it is not productive.

2. Improve growth capability: with training and development we get better with our skills and
knowledge which helps us hire better agents and retain them longer.


Training and development directly impacts our vertical and horizontal growth which in turn
leads to success in this business

Training and development directly impacts and provides value through:

Increased sales activity
Higher case rate
Larger case size
Ethical sales
Quality business

Development tools used for development of agents:

1. Performance review and planning
2. Field observation and demonstration
3. Group instruction and drill
4. Individual instruction and drill

Performance review and planning (PRP) sessions are 1 on 1 meetings between the agent ( or manager)
and their supervisor or trainer and focus on reviewing the weeks performance and planning the next
weeks activity. New agents (or managers) should have a weekly PRP for the first year and then twice
monthly therefore. Established agents (or managers) may have a PRP once per month.
Field observation and demonstration (FOD) sessions are held with the new agent (or manager) and an
experienced manager/ trainer/agent. FOD is designed to demonstrate proper sales or recruiting methods
and to observe agents (or managers) implementing principles they have learned.
Individual instruction and drill (IID) sessions are completed between the agent (or manager) and their
supervision or trainer and focus on developing a particular skill or knowledge issue. IIDs are schedule as
needed.

Group instruction drill (GID) sessions are typically held in a classroom setting conducted by local
supervisor or trainers. The purpose is to communicate important information to large groups or to
enhance understanding and skill mastery of key sales topics. The training department maintains
attendance logs for all classes conducted.

Things to remember
1. Agents should attend all training programs recommended by the management (FCS, BCS, and
ICS etc).
2. Follow MNYL work habits and rules.
3. Agents development needs assessed using the plan your year book each month.
4. Usage of development on a regular basis (PRPs, FOD, IID and GID).
Recording of development activity for implementation and follow up.


Objection Handling script
At this point of time, the prospective candidate is likely to raise objections. Given below is the
Objection handling scripts to handle these objections effectively.
Im not interested in a career in insurance.
I can appreciate that, and I had no idea of this when I called up. As a successful person
You come into contact with a wide variety of people, and this opportunity may be right
For one of them. With this in mind would Tuesday morning be good with you or
Wednesday afternoon is better.
Is this a sales position?
Yes it is. However, I am specifically looking for management caliber individuals to help
our office achieve the strategic goals we have set. Ill be able to clarify this all for you.
Next Wednesday morning would be good for me, how is your calendar that morning?
Im too busy, send me something.
I certainly can appreciate that. I dont know about you, but I receive a great deal of junk
Mail. Although our literature is not junk, it certainly cannot do justice to what we could
cover in half an hour. Again, my purpose is to educate you a little on the opportunity,
And to learn more about your situation. With this in mind, would Tuesday morning be
good with you or Wednesday afternoon be better.
Is it a job?
While this is a great career opportunity, this offers great potential for management
Position in the future. I will be able to clarify this when we meet. Is Wednesday morning
ok with you
I cannot come to your office!
I do understand you have a busy schedule, but I am sure if you come over to the office &
Look at the infrastructure and the kind of people you will be working with, it will help you
Decide on the business opportunity.
I dont have time:
I really appreciate your straight forwardness. Would it be possible to meet next week?
Would Monday be good or Tuesday be better?

I will think about it. (Prospective Agents dont get back after they get to know the
Profile.)"
I can understand that this opportunity has a lot to think about. This is one of the few
professions that allow many different options to make an unlimited income. It allows you
to be in business for yourself, BUT not by yourself. Lets get back together to discuss
what you see as the challenges and opportunities.
My business is going well and I do not want to experiment with something new.
I can understand that. Many business owners like you felt the same way when this
opportunity was presented to them. However, when they fully understood the unlimited
income they could make using their business skills, many decided that this presented a
unique business like no other. You also get a chance to expand into another business
with no investment.
I understand but, you know, I cant make it for the training which is too long. If you
can find an alternative to this or shorten the training process, I will be willing to take
things forward.
Our training is rated number one in the insurance industry. Let me ask you a question:
Would you consider investing 21 days of your time to give yourself a future that (insert
what their dreams are)? Let me tell you this: there is no alternative if you want to be a
Success. That is what our training is all about.
I dont like the word agent, in fact sometimes I am embarrassed when I tell my
friends that I am working as an agent.
Our agents are proud of what they do to help families and the community. I can
understand the way your friends and family react to the word agent. Many agents felt
the same way before they understood why they do what they do and how they help
families. Their belief is the key difference between the competition and Max Life
Insurance.
I have never sold a single item in my life till date. And now you are asking me to sell
insurance. I know that your training would provide me with help but I am still not sure
if I can approach people and sell a product to them. I cant see myself going around
and selling insurance to my friends.
I can understand how you feel. Many people like you who never sold anything in their
lives felt the same before we explored what it is that you are really doing. In our
business, you help people make a buying decision. You help them look at where they
are, where they want to be and the gap between the two. We are in the business of
solving problems. Max Life Insurance is in the business of helping people have peace of
mind while reaching their goals. You would be helping people and as you develop longterm
relationships with your customers, you will become a part of their families. Let me

show you what you would say and how our sales cycle works.
Selling life insurance requires a person to be thick skinned no matter how people
treat you. Thats the impression I get from my life insurance agent. I dont think I have
that in me.
I can understand the impression you may have received from your life insurance agent.
However, I can tell you that when you approach people with their best interest in mind
without just trying to sell a product, people recognize that. This is why we dedicate our
training and development to help you first see things through your customers eyes.
When you follow a process, objections and rejections are viewed differently by you. You
realize that people are letting you know that they do not understand and want more
information before they make an informed buying decision. Let me show you how we
handle customer concerns and reactions (give some examples of common objections).
Then ask: does this make sense to you?

INDUSTRIAL BACKGROUND
What is insurance:
Values of assets. Every asset has a value .The assets would have been created through the efforts of
the owner. The asset is valuable to the owner, because he expects to get some benefits from it. It is a
benefit because it meets some of his needs. The benefit may be an income or in some other form .In
the case of factory or a cow, the product generated by it is sold and income is generated.

Brief history of insurance:
Insurance has been known to exist in some form or other 3000 BC. The Chinese traders, travelling
treacherous river rapids would distribute their goods among several vessels, so that the loss from any one
vessel being lost, would be partial and shared, and not total. The Babylonian traders would agree to pay
additional sums to Landers, as the price for writing off the loans, in case of the shipment being stolen. the
inhabitants of Rhodes adopted the principle of general average ,whereby ,if goods are shipped together,
the owners would bear the losses in proportion,if loss occurs,due to jettisoning during distress.
The origins of insurance business as in vogue at present,is traced to the lloyds coffee house in
London.traders,who used to gether in the lloyds coffee house in London,agreed to share the losses to
their goods while carried by ships. The losses used to occure because of pirates who robbed on the high
seas or because of bad whether spoiling the goods or sinking the ship
In India,insurance began in 1818 with life insurance being transacted by an English company,the oriental
life insurance co.ltd.the first Indian insurance co. Was the Bombay Mutual Assurance Society Ltd,formed
in 1870 in Mumbai this was followed by The Bharat Insurance Co.in 1896 in Delhi,the empire of India
in 1897 in Mumbai,The United India in Chennai,The National,the National Indian and the Hindustan
Cooperative in Kolkata.
Assets are insured ,because they are likely to be destroyed or made non functional before the expected
life time, through accidental occurrences. such possible occurrence are called perils. fire, floods,
breakdowns ,lightning, earthquakes, etc, are perils.
may or may not happen.the earthquake may occur,but the building may not have been affected at all.
Insurance is done against the possibility that the damage may happen. There has to be an uncertainty
about the risk.
Insurance does not protect the asset.it does not prevent its loss due to the peril.the peril can not be
avoided through insurance.the risk can sometimes be avoided,through better safety and damage control
measures.insurance only tries to reduce the impact of the risk on the owner of the asset and those who
depend on the asset.
Only economic consequencs can be insured.if the loss is not financial,insurance may not be
possible.Example of ledership of managers etc.

The Business Of Insurance:
Insurance co.are called insures.the business of insurance is to being together persons with common
insurance interests,collect the share or contribution from all of them,and payout compensations to those
who suffer from the risks.

In India,insurance business is classified primarily as life and non life or general.life insurance includes all
risks related to the lives of human beings and general insurance covers the rest. General insurance has
three classifications viz,fire,marine and miscellaneous with all others like liability motorl
crop,engineering etc.
In india , the IRDA has . 2005, issued regulation enabling mcro inrurance to be done by both life and
general inrurances on the basis of mutual tie- ups .A policy may be issued by a life insuranceer by a
covering boh life and non life riks, bt premium on account of the non life business on general insurance
business will be passed on to a general insurance. And the claim amount collected from the latter .
The premium for insurance is based on expectation of the losses . These expectations are based on
studies ofoccurrences in the past and the use of statistal principles .
The business of insurance is one f sharing . It spreds losses of an individual over the group of individual
whoa are exposed to similier risk .People who suffer loss get relief because atleast part of their make
good.


INSURANCE AS A SOCIAL SERUTITY TOOL
The United Declaration of Human Rights 1948 provides that everyone has a right to standard of living
adequate for the health and well being of himself and his family, including food , clothing , housing in
medical care and necessary social services .
When the bread winner dies , to the extent , the familys income dies .The economic condition of the
family is effected , unless other arrangements come into being to restore the situation .Life insurance
provides such an alternate arrangement .If this does nth append , another family would be pushed into the
lower strata of society .
Under a socialistic system the responsibility of full security would be place upon the state of find
resources for providing social security. In Capitalist society, provision of security is largely left to the
individuals.



LIFE INSURANCE

S.NO REG.NUMBER DATE OF REG NAME OF THE CO.
1 101 23.10.2000 HDFC LIFE INSURANCE COM.
2 104 15.11.2000 MAX NEW YORK LIFE INSURANCE
3 105 24.11.2000 ICICI PRUDENTIAL LIFE INSURANCE
4 107 10.01.2001 KOTAK MAHINDRA LIFE INSURANCE
5 109 31.01.2001 BIRLA SUN LIFE INSURANCE
6 110 12.02.2001 TATA AIG LIFE INSURANCE
7 111 30.03.2001 SBI LIFE INSURANCE
8 114 2.08.2001 ING VYSYA LIFE INSUTRANCE PVT.
9 116 3.08.2001 BAJAJ ALLIANZ LIFE INSURANCE
10 117 6.08.2001 METLIFE INDIA INSURANCE.







NATURE & SCOPE OF THE STUDY
Financial strength
- Safety of our policyholders and shareholders money
Consistency of returns to policyholders, shareholders and distributors
Ability to offer feature rich products
Balanced distribution touching more customers

Quality of Advice
Customer relationships build on the foundation of 'Trust'
Need and Risk profile based customer solutions
Enabling customers to take informed decisions
Through well trained and knowledgeable team




Service Excellence
Caring mindset at all customer touch points
Bias for long-term customer relationships
Responsive service
Continuous improvement in customer processes
Superior Human Capital
Great place to work
Inclusive meritocracy
Opportunities for development and growth
Direct and open communication
Corporate Governance
Corporate Governance
Honest organization that always does what is rights
Bias for win win actions
Predictable outcomes and delivery of promise
No compromise on compliance
Value Driven Culture
Caring, Credibility, Collaborative, Excellence
Integrity in all what we do

RESEARCH METHODOLOGY
Introduction
Research methodology has been defined as a framework that outlines the methods and procedures to be
followed when collecting and analyzing the required information from respondents. After the formulation
of the research problem, the research design must be developed. A research design is a master plan
specifying the methods and procedures for collecting and analyzing information. Chapter five will
discuss the sourcing and analysis of the primary data. A brief introduction of the research methodology
follows this introduction.
Research methodology
The base of this study was formed by a literature review of the variables of Customer Relationship
Management and Customer Loyalty. Empirical research was undertaken to investigate the relationship
between the different variables. A distinction can be made between two research criterion, namely
qualitative and quantitative research. The focus of qualitative research is not on numbers, but on words
and observations. The purpose of quantitative research is to determine the quantity or extent of some
phenomenon in the form of numbers 2003..
This study was conducted in two phases, in the first phase focus was on qualitative research, and in the
second phase focus was on quantitative research. A focus group interview was held with a manager of the
Customer Walk-in-Centre in Johannesburg, and two other senior managers responsible for customer
relationships. The focus group interview assisted the researcher in developing the questionnaire and
provided the desired information on CRM and customer loyalty from Liberty Lifes viewpoint The
questionnaire was used during the quantitative phase of the research. The second phase of the study was
based on quantitative research. The reason for quantitative data is that it is easy to interpret the results in
simple conclusions
There are three types of research, exploratory, descriptive and casual Taking into consideration the nature
of the study, the problem statement and all other related.
Data collection
Various techniques could be used to gather primary data for descriptive research. These includes personal
interviews, self-administered surveys, postal surveys, telephonic surveys and observation. A structured
questionnaire survey was used to collect data for this research, and this process was administered by field
workers conducting personal interviews. The questionnaire included self developed items, as well as
items from questionnaires used in previous research. The population of the research consisted of Liberty
Lifes entire individual, natural person, customers who visited Customer Walk-in-Centres in
Johannesburg, Pretoria, Durban and Cape Town.defined a customer of Liberty Life. For the purpose of
this study a probability sampling method was used. Stratified sampling, followed by simple random
sampling was used in this study. The reason for selecting this sampling technique is that the sampling
frame of the study was divided into subgroups, strata, and the sampling process was performed separately
on each stratum. Stratified are the most statistically efficient and they allow the investigation of the
characteristics of the interest for particular subgroups within the population. The sample size of this study
was twofold. Firstly, the sample was based on the percentage of customers visiting Customer Walk-in-
Centers presented as a portion of the total number of customers visiting Customer Walk-in-Centres,
willing to partake in the study on average in the four cities. Secondly, the percentage was applied to 254
customers of Liberty Life entering the Customer Walk-in-Centers in Johannesburg, Pretoria, Cape Town
and Durban.
The research instrument, a questionnaire was pre-tested in a pilot study involving five customers of
Liberty Life in the Customer Walk-in-Centre in Johannesburg. Reliability and validity are the hallmarks
of good measurement and the keys to assessing the trustworthiness of any research conducted. The
reliability measurement for this study was the internal consistency reliability test. Reliability tests
whether the questionnaire will measure the same thing more than once and result in the same outcome
every time. The extent to which a particular measure is free from both systematic and random error
indicates the validity of the measure. In this study exploratory factor analysis, utilizing the Varimax with
Kaiser Normalization was performed to assess the discriminate validity of the questionnaire. Validity was
also confirmed by conducting the Kaiser-Meyer-Olkin (KMO) and Bartletts test of sphericity .




Data analysis
Data analysis refers to the transformation of raw data into a form that make it easy to understand and
interpret. Describing responses or observations is typically the first form of analysis. Computers were
used for the analyzing of data. STATKON of the University of Johannesburg was used to analyze the
data so that the data could be interpreted into meaningful information or findings that were explored
further to propose recommendations to the research.

DATA COLLECTION METHOD
Market Research requires two types of data i.e. primary and secondary data. Primary data has been used
abundantly for the study. Well-Structured questionnaires were prepared & the survey was undertaken.
Feedback has been taken by asking questions directly to the customers & observation has also been done
to gather primary information.
Primary Data: Field survey
Secondary Data: Max life Insurance
Text books and journals
Company Websites
Area of Research: Kanpur
Research approach: Survey method

SAMPLING METHOD

Since the study is restricted to Insurance Sector, all the functional departments of Max life Insurance and
the respondents are found at the field only so according to the convenience, randomly they are picked so
sampling method used in the study is Random Convenient Sampling.

Sampling
Sample Size 100 respondents

Sampling Method Random Convenient Sampling

Sample Unit Customer of Max life Insurance

Measuring Tool Questionnaire

ANALYSIS AND INTERPRETATIONS

Q No) 1: Which non-banking Insurance company first comes to your mind when you
think of buying a product?
RESPONSE NO OF RESPONDENTS PERCENTAG (%)
MAX LIFE INSURANCE 77 77
RELIANCE MUTUAL FUND 15 15
OTHER INSURANCE 8 8
TOTAL 100 100


ANALYSIS
77
18
5
0
10
20
30
40
50
60
70
80
90
MAX LIFE INSURANCE MET LIFE INSURANCE OTHER INSURANCE
Series 1
From the survey, from 100 respondents, 77% of them gave1st preference to Max Life Insurance 15% of
them gave preference to MetLife Insurance and 8% were gave to other Insurance.
INTERPRETATION
Most of the customers are given 1st preference to Max Life Insurance compare to other Insurance.




2) From which source did you come to know about MAX LIFE INSURANCE?
RESPONSE NO OF RESPONDENTS PERCENTAGE (%)
T.V.Adevertisement 23 23
Advisor 34 34
Newspaper 31 31
Hoardings 12 12
TOTAL 100 100









ANALYSIS
From the above graph I can come to know that, among 100respondents, 23% of them come to know
about Max life Insurance through TV advt., 34% of the respondents told that through Advisor, 31% of
them through News Paper, and 12% came to know through Hoardings.
INTERPRETATION
Sales Advisor is the most influencing factor which is responsible for awareness of MAX LIFE
INSURANC.

3) Are you aware of Training and Development offers conducted by MAX
LIFE INSURANCE?
0
5
10
15
20
25
30
35
23
34
31
12
Series 1
RESPONSE NO OF RESPONDENTS PERCENTAGE (%
YES 87 87
NO 13 13
TOTAL 100 100



ANALYSIS
Among the 100 respondents, 87% of them they are aware of sales offers, 13% told they have not aware.
INTERPRETATION
87% of customers is aware of sales advisor activity in the Max life insurance.
87
13
0
10
20
30
40
50
60
70
80
90
100
YES NO
Series 1



4) Please choose below the factor which attracted you most at the MAX LIFE
INSURANCE.

Rate NO OF RESPONDENTS PERCENTAGE (%)
Advisor 51 51
Service 26 26
Availability of Products 23 23
TOTAL 100 100





ANALYSIS
Among 100 respondent 51% customer they have told that they are attracted by the advisor and 26% of
them told that they are attracted by service and 23% of them told that they are attracted availability of
products.

INTERPRETATION
0
10
20
30
40
50
60
Advisor Service Availability of
Products
51
26
23
Series 1
Most of the people attracted towards Max life Insurance only for the Sales Advisor. So Advisor is the
most influencing factor among those.
5) Do you think Training and Development activity of Max Life Insurance gives you clear message?
RESPONSE NO OF RESPONDENTS PERCENTAGE (%)
YES 77 77
NO 23 23
TOTAL 100 100


ANALYSIS
0
10
20
30
40
50
60
70
80
Yes No
77
23
Series 1
Among 100 respondent 77 of them told that the Sales Management
activities of Max life Insurance gives clear message and 23 of them
told that they do not understood.
INTERPRETATION:
Most of the people highly agree that Sales Management activity of Max Life Insurance gives clear
message.

6) Does the Sales advisor activities of Max Life Insurance made you to visit?

RESPONSE NO OF RESPONDENTS PERCENTAGE (%)
YES 83 83
NO 17 17
TOTAL 100 100



ANALYSIS
Among the 100 respondents, 83% of them they are aware of sales advisor, 17% told that they are not
aware.
INTERPRETATION
83% of customers are aware of sales management activity in the Max life Insurance.

83
17
0
10
20
30
40
50
60
70
80
90
YES NO
Series 1
Series 1
7) Do you think the Sales Management activity of Max Life Insurance gives you clear
message?
RESPONSE NO OF RESPONDENTS PERCENTAGE (%)
Yes 76 76
No 24 24
Total 100 100



ANALYSIS
76%
24%
Sales
yes no
Among the 100 respondents, 76% of them they are aware of sales management activity, 24% told that
they are not aware.

INTERPRETATION
76% of customers are aware of sales management activity in the Max life Insurance.
8) Are you capable of achieving the goals set for you?
RESPONSE NO OF RESPONDENTS PERCENTAGE (%)
Yes 56 56
No 44 44
Total 100 100

Yes, 56
No, 44
Sales
Yes
No

ANALYSIS
Among the 100 respondents, 56% of them they are goal achieving, 44% told that they are not aware.
INTERPRETATION
56% of customers are aware goal achieving in the Max life Insurance.

9) To what extent is the MAX making progress towards its mission and
goals?
RESPONSE NO OF RESPONDENTS PERCENTAGE (%)
To a great extent 65 65
To some extent 25 25
No opinion 10 10
Total 100 100
ANALYSIS
Among the 100 respondents, 65% of them they are to a great extent, 25% told that they are to some
extent and 10% gives no opinion.

INTERPRETATION
65% of customers are to a great extent in the Max life Insurance.



10) Do you get merit raise when the performance evaluation indicates that
you are meeting the set standard on the job?
To a great extent,
65
To some
extent, 25
No
opinio
n, 10
Sales
To a great extent
To some extent
No opinion
RESPONSE NO OF RESPONDENTS PERCENTAGE (%)
To a great extent 69 69
To some extent 25 25
Not at all 6 6
Total 100 100


ANALYSIS
Among the 100 respondents, 69% of them they are to a great extent, 25% told that they are to some
extent and 6% gives not at all.
INTERPRETATION
69% of customers are to a great extent in the Max life Insurance.
To a great extent,
69
To some
extent, 25
Not at all, 6
Sales
To a great extent
To some extent
Not at all
11) Do your co-workers and superiors help you to scope up from your poor
performance?

RESPONSE NO OF RESPONDENTS PERCENTAGE (%)
Yes 78 78
No 22 22
Total 100 100


ANALYSIS
Yes, 78
No, 22
Sales
Yes
No
Among the 100 respondents, 78% of them they are say yes, 22% told that they are say no.

INTERPRETATION
78% of customers are to say yes in the Max life Insurance.



12) In your opinion to what extent the superiors responsible for the progress
of MAX LIFE INSURANCE.
RESPONSE NO OF RESPONDENTS PERCENTAGE (%)
Training and Development 79 79
Seminars 21 21
Total 100 100




ANALYSIS
Among the 100 respondents, 79% of them they are saying Training and Development, 21% told that
Seminars.
INTERPRETATION
79% of customers are to say Training and Development in the Max life Insurance.


Training and
Development, 79
Seminars, 21
Sales
Training and Development
Seminars











LIMITATIONS OF THE STUDY
The study will only focus on 254 customers and can therefore not be seen as representative of all the
customers of Liberty Life. The study focuses on identifying the variables influencing CRM and Customer
Loyalty in Liberty Life, Kanpur. The study will specifically focus on CRM and Customer Loyalty at the
Customer Walk-in-Centers at the offices of Liberty Life in Johannesburg, Pretoria, Durban and Cape
Town. Therefore the study cannot be seen as representative of the Long-Term Insurance Industry. The
use of a survey is also a limitation to the study. The respondence might be biased and they might
deliberately falsify their answers. Future research may include a bigger sample and include the other
long-term insurance organizations in South Africa.


DIVISION OF THE STUDY
This chapter provides the introduction and background to the study. The formulation of the research
problem, the objectives and the hypotheses of the study are outlined. Similarly, the purpose and
significance of the study, reviewing of the literature, the scope and limitation of the study are presented in
this chapter Chapter two describes the Long-Term Insurance industry in South Africa and the role that
Liberty Life performs in this industry. The importance of CRM for Liberty Life and the Long-Term
Insurance industry is also discussed In this chapter the literature review gives insight into the aspects of
CRM and places CRM in perspective. Aspects such as the definitions of CRM, generic elements to the
definitions of CRM, differentiating between Customer Relationship Management and Customer
Relationship Marketing, CRM as a component of Relationship Marketing, the advantages of CRM to the
customer in the services industry, to the organisation in the services industry, and the link between CRM
and customer loyalty and the CRM process is discussed This chapter describes the variables that
influence CRM as a relationship building tool in Liberty Life, following the literature review. Aspects
such as trust, commitment, two-way communication and conflict handling are discussed. Lastly, this
chapter looks at the benefits of customer loyalty to an organization in this chapter focus is concentrated
around the research methodology and design to be followed to achieve the research objectives. In other
words, emphasis is on the research method, research format, research technique, population, and
sampling methodology which included sample size, sampling type and sampling technique and data
analysis the analysis and interpretation of data is presented in this chapter. The research findings and
interpretation of data is presented, the results obtained is compared with the findings of the already
published empirical studies and the literature review on which the study is based In this chapter the
researcher comes to conclusions and makes recommendations. From the results it will be possible to
determine whether the research objectives as stated in the first chapter were achieved, and if the problem
statement as described is relevant. Conclusions will be drawn and meaningful recommendations made.




MANAGEMENT TEAM
WORKING AS A TEAM FOR A COLLECTIVE GOAL

Mr. Rajesh Sud CEO & Managing Director
Mr. Rajesh Sud was appointed CEO and Managing Director with effect from November 1, 2008 of Max
Life Insurance which started operations in 2001 when the insurance sector was opened to private
participation. A founder team member, Rajesh was amongst the first few management team members to
join Max Life Insurance. Rajesh completed his Advanced Management Program from Wharton Business
School, University of Pennsylvania, Philadelphia, USA. He also has a Management post graduation
degree in Marketing and Finance from Faculty of Management Studies, Delhi University.
Mr. Rajit Mehta Executive Director and Chief Operating Officer
Mr. Rajit Mehta is the Executive Director and Chief Operating Officer of Max Life Insurance, a
leading private life insurance company in India. He is a member of the Board of Directors of the
Company, and is on the Policyholder Protection Committee of the Board besides being an invitee to
the Audit Committee of the Board as well.
Rajit represents Max Life Insurance on the Consortium Board of School of Inspired Leadership
(SOIL) a unit of Grow Talent Co. Ltd. co-created by a group of leading companies from across Industry
verticals that aims to build competent, compassionate and inspiring leaders. He is also a trustee of the
Max Foundation - the CSR arm for the Max Group of Companies.
.
Vision
To be the most admired Life Insurance Company by securing the financial future of our customers
Mission
We are an honest life insurance company, committed to doing what is right
We serve our customers through long-term savings, protection and retirement solutions, delivered by our
high quality Agency and Multi Channel Distribution Partners
We are a business with strong social relevance and contribute to society by supporting causes in health
and well-being
OUR JOURNEY
At Max Life Insurance, with each milestone, we have raised the bar for our services and product
offerings. Take a look at the developments made over the years
2002
Sold 100,000 individual policies , Started rural distributorship network in Punjab
Attended first MDRT (Million Dollar Round Table) Launched level term children's endowment
products

2003
Formed first Bancassurance relationship
Announced first bonus to policyholders,, Completed Rs. 100 Crore of AFYP (Annual First Year
Premium Received the first corporate agency relationship ISO 9000:2001 certification
Launched 'retirement par endowment' product
2004
Launched Life Maker - our first unit linked product
2005
Completed Rs. 500 Crore of AFYP (Annual First Year Premium
Launched Money Back, Future Builder, Bonus Builder policies
2006
Sold more than 1 million policies.
Crossed 200 MDRTs (Million Dollar Round Table) attendances
Crossed Rs. 1000 Crore of total revenue
Opened the 100
th
General Office
Launched pay endowment for semi-urban ULIPs.

2007
Crossed paid-up capital of Rs. 1,000 Crore
Entered the health insurance segment
2008
Launched first universal life product
Awarded the Gallup Great Work Place Award, 2009
Awarded the Asia Insurance Industry 'Innovation of the Year' award, 2009
Awarded the Asia Insurance Industry
Received CIO 100 Technology Award, 2009
2009
New ULIP range launched
Turned Profitable, Axis Bank Tie up
2010
Reached US$ I billion mark in total revenue and recorded its maiden shareholders' profit.
Became the largest non bank private life insurance company in Indi
2012
Re named "Max Life Insurance Co. Ltd

AWARDS & Recognitions

SETTING HIGHER BENCHMARK WITH EVERY AWARD

At Max Life Insurance, with each award and accolade received over the years, we have renewed our promise of
providing the best quality of products and services to our customers. Some of the awards and recognition rewarded
to us.


Awards won
Max Life Insurance won the 6th National Conference & Competition on Six Sigma, 2012, held by the
Confederation of Indian Industry (CII) for the Green Belt project "Power of Speed - Settlement of
Claims within 10 days". Overall 24 project presentations were made by manufacturing and service
sector companies that included HCL, Wipro, Times of India, 3M India & Quest Global from service
sector.
QCI DL Shah Awards for Best Six Sigma Project on economics of Quality - 2012
CII National Six Sigma recognition for Best Six Sigma Project - 2009
CIO 100 Technology Awards 2008 - 2011
Golden Peacock Award for Excellence in Product Innovation for Max Vijay
Awarded the Asia Insurance Industry 'Innovation of the Year' Award 2009
Gallup Great Work Place Award 2009
'CII - EXIM Bank Commendation Certificate for Strong Commitment to Excel' for the year 2008 to 2010
Indo-American Corporate Excellence Award for Best Indo-US company in Financial Services Category in 2006
Received 'Best Six Sigma Project' award at Sakal Six Sigma Excellence Awar

COMPANY FACT AT A GLANCE
As of April 30
th
, 2013
Founded 2000
Started operations April 2001
Headquarters New Delhi, India
World Wide Web Address http://www.maxlifeinsurance.com
Chairman Analjit Singh
CEO & Managing Director Rajesh Sud
Paid- up capital Rs. 2,127 crore
Sum Assured Rs. 1,77,313.31 Crore
Number of policies sold since inception 66.11 lakh
Asset under management Rs. 21,167.22 crore
GROWTH STORY
GROWING AT A STEADY PACE

Max Life Insurance Co. Ltd.
Max Life Insurance, one of the leading life insurers, is a joint venture between Max India Ltd. and Mitsui
Sumitomo Insurance Co. Ltd. Max India is a leading Indian multi-business corporate, while Mitsui
Sumitomo Insurance is a member of MS&AD Insurance Group, which is amongst the top general
insurers in the world. Max Life Insurance offers comprehensive life insurance and retirement solutions
for long-term savings and protection to thirty lakh customers. It has a country-wide diversified
distribution model including the country's leading agent advisors, exclusive arrangement with Axis Bank
Employees 7,737
Number of products (Individual) 23
Number of riders / options (Individual) 9
Number of products (Group) 4
Number of riders / options (Group) 7
Number of offices 288
Number of cities 216
MDRTs 82 (for calendar year 2012)



and several other partners. Max Life Insurance is a quality business focused on delivering excellence to
customers through advice based sale process, customer centric approach to business, financial stability &
investment expertise and strong human capital.
In the financial year 2011-12 Max Life Insurance ranked fourth among private life insurers with a market
share of 8.6%. The Company has been one of the fastest growing life insurance companies with total
revenue of Rs. 6,391 crore and enterprise profit of Rs. 733 crore for the Financial Year 2011-12. The
Company's share capital of Rs. 2,127 crore with a solvency margin of 534% is indicative of its financial
strength and stability. As on 31st March 2012, Max Life Insurance had assets under management of Rs.
17,215 crore.
In bancassurance, the Company has a strong relationship with Axis Bank which in a short span of two
years becomes the largest non-captive banc assurance relationship in India with its network of over 1,400
branches providing life insurance solutions to its customers. Partnership Distribution, the third pillar of
Max Life Insurance's distribution model is equally important and successful with long standing
relationship with large distributors of financial products such as Amsure and Peerless. These three key
distribution channels are compelmented by Group Insurance and Customer Advocacy teams.
The company values human capital and considers it to be its competitive advantage. Max Life Insurance
believes that people are its biggest organizational assets and hence lays a strong emphasis on employee
friendly practices leading to high levels of employee engagement and motivation. This is reflected in the
recognition that the company received from the Great Places To Work Institute, India, as one of the best
workplaces in the industry.
Max Life insurance works closely with Max India Foundation, an independent social service organization
of the Max India Group for all its CSR activities. The company has taken up immunization programme as
a societal agenda to ensure protection against major ailments for the next generation of the country. The
programme covers vaccines like BCG, Hepatitis B vaccine, Polio drops, DPT, D Tap, and Measles
vaccine, MMR, Typhoid, DT and TT. Along with Max India Foundation and Manav Sewa Samadhi Max
Life Insurance also organize artificial limbs and polio caliper camps. In each such camp more than 350
beneficiaries are provided artificial limbs.

SUGGESTIONS & RECOMMENDATIONS
WHY MAX LIFE INSURANCE

OUR DIFFERENTIATORS


Financial strength
- Safety of our policyholders and shareholders money
Consistency of returns to policyholders, shareholders and distributors
Ability to offer feature rich products
Balanced distribution touching more customers
Quality of Advice
Customer relationships build on the foundation of 'Trust'
Need and Risk profile based customer solutions
Enabling customers to take informed decisions
Through well trained and knowledgeable team
Service Excellence
Caring mindset at all customer touch points
Bias for long-term customer relationships
Responsive service
Continuous improvement in customer processes
Superior Human Capital
Great place to work
Inclusive meritocracy
Opportunities for development and growth
Direct and open communication
Corporate Governance
Corporate Governance
Honest organization that always does what is right
Bias for win win actions
Predictable outcomes and delivery of promise
No compromise on compliance

Value Driven Culture
Caring, Credibility, Collaborative, Excellence
Integrity in all what we do


CORPORATE SOCIAL RESPONSIBILITY
RESPONIBLE BY CHOICE

We make a living by what we get, but we make a life by what we give." - Winston Churchill
Max Life Insurance believes that as a corporate it has a responsibility to engage with the society it
operates in. This engagement goes beyond providing right products for their needs and being ethical and
honest in our business practices. We believe in caring for the society and have decided to focus on
providing a safe and secure future to the children in the age group 0-12 years. Take a look at some of our
initiatives:
The immunization program
The company works closely with Max India Foundation, an independent social service organization of
Max India Group. Immunization is Max Life Insurances societal agenda to ensure protection against
major ailments for the next generation of the country. The immunization programme covers vaccines like
BCG, Hepatitis B vaccine, Polio drops, DPT, D Tap, Measles vaccine, MMR, Typhoid, DT and TT.
From July 2008, since the immunization programme was initiated till date 345 camps, covering 21799
children we conducted, providing 43479 shots in 89 locations.

Artificial limbs and polio caliper camps
Max Life Insurance and Max India Foundation along with Manav Sewa Sanidhi also organize artificial
limbs and polio caliper camps. Through each camp beneficiaries are provided artificial limbs or polio
calipers. The company's volunteers help create awareness, manage registration and provide help during
the week-long camp where the patients stay till the time they could independently move. In each such
camp more than 350 beneficiaries are provided artificial limbs. Over the last four years Max Life
Insurance in collaboration with Max India Foundation and partner NGO, Manav Seva Sannidhi, have
organised Artificial Limbs and Polio Calipers camp at Gujarat, Mohali and New Delhi. A total of 1704
patients have been provided artificial limbs and polio calipers in the four camps.
Health camps
The company's volunteers also actively participate in health camps organised in association with Max
India Foundation where patients are provided health advice by a team of doctors from Max Healthcare.
Till date, 80 camps have been organized benefitting 20,086 patient

Employees at a painting competition in a SOS village


.Employee visits to SOS villages are organized regularly to generate a sense of ownership and involvement among
employees.

David Allen trophy for the 'Most Socially Responsible Student'

The company has instituted the David Allen trophy for the 'Most Socially Responsible Student' at SOS
children's villages. This trophy is awarded to a student, of the Herman Gmeiner (SOS) School at
Faridabad, who displays and shows a caring attitude and social responsibility towards his/her
schoolmates or society at large.


LATEST ARTICLES
HOW GREEN WAS MY VALLEY
The title comes from a movie I had watched years back. A little boys journey into adulthood and the
story of a Welsh valley's turn-of-the-century descent from pristine paradise to despoiled coal mining.
In India, the social security system is almost non-existent. In some states, wherever it is available, the
scales of benefits are extremely modest, at best. Another reason that is slowly becoming a big cause of
concern is increasing longevity. With better healthcare facilities available, there is a gradual rise in the
percentage of the 'old'.
For the young Indian population, the accumulation phase i.e., the phase when they earn and save for their
retired days, is of prime importance. They need to understand the instruments available in the market
which can be used for disciplined savings for the long-term with a well defined corpus for funding
retirement years. Normally, for a married couple, the income replacement ratio should be in the range of
70-80% of the last drawn salary.
The first pillar is mandatory and consists of guaranteed minimum pensions mainly including social
security plans by the Government. The second pillar talks of mandatory contributions made by
employees/individuals. It consists of NPS for Government employees (joining after 2004) and Employee
Provident Fund (EPF) for non-Government employees. However, in EPF annuitisation is not compulsory
and hence 100% of the corpus can be commuted. There is a possibility that this corpus may get consumed
for other competing life stage goals. And the third pillar includes voluntary contributions by individuals
including personal savings plan and contributory plans.
The key take away is that First and Second Pillar provisions on their own are far from sufficient to
maintain pre-retirement lifestyles of a majority of Indians whose disposable incomes have increased
substantially due to high economic growth in the last two decades. We have to focus on the third pillar
voluntary contributions to make our retired years hassle free.
So I am listing down some 'must do' things that will help plan for your retirement from now:
The first basic is to start early. The day you begin earning, start putting aside a certain sum for yourself
(retirement). In fact, every month, the first 'bill' you pay must be towards your own future. It is best to save first
and then spend rather than vice versa.
Instruments are not important, but disciplined savings is. Save regularly and without fail. And since it is long-term
savings you may chose to add equity to balance your asset mix.
Women of today work and balance their home as well. In some cases there are women who handle the
finances of the family single handedly. I would prodly say that it is no more the 'man' of the house who is
the breadwinner. The woman too is an equal partner in everything. In cases when women are at home-
makers, many of them work from home and even do small entrepreneurship businesses. They are no
longer just stay at home wives and mothers.
But with the kind of lifestyles we lead today wherein money and planning play an extremely important
role it was interesting for me to hear diverse views on money while interacting with an eclectic mix of
women that triggered the idea for this piece. I felt that many women earn, but are unable to manage their
finances well or are dependent on someone to manage it for them.
Keeping your finances in the shadows because of fear, disinterest or lack of time just does not help you
reach your goals and live worry-free later in life. The first lesson for women is that it in their interest that
they take control of their finances than looking for someone else to manage it for them. There are simple
truths about money, such as compound interest, asset allocation and diversification, and living within
your means, which when put into practice early, pays huge dividends later.
Managing your finances is very deeply linked with your financial situation and life stage. It is a means
that will help you reach your short- and long-term goals. So, do women need to handle their finances
differently from men? No. Financial goals are same for both. Financial plans of retirement, buying a
house or saving for children are common for both genders. However, the approach could vary, depending
on the risk profile of each individual. In today's world, financial security for women of every age is a
necessity.





Getting Started
Every lock has a key, and the key to stable financial future is a bank account. The bank account opens a
window of opportunity to explore other financial instruments and their impact on an individual. The first
financial instrument that every woman should consider is a health insurance policy. The reason for this is
simple, no matter if you have financial dependents or not; your health needs to be taken care of at all
times. Build your financial portfolio with an adequate health insurance policy and if one is employed,
look for a term insurance plan to protect your financial dependents from any financial calamity that they
may otherwise face in case of your death.
Having strengthened the base of your financial future, the next step should be to explore the world of
savings and investments. If you are employed, and in the tax bracket, your first choice of savings and
investment products should be those that qualify for tax benefits. The Government encourages savings
and investments up to Rs. 1 lakh in a financial year which qualifies for tax deduction under Section 80C
on the investment and is tax free on maturity or redemption if held for the specified tenure. Depending on
one's risk appetite and savings horizon, one could opt for different instruments to save on taxes.
Those who can take a fair deal of risk could explore unit-linked insurance plans from insurers or equity-
linked savings schemes from mutual funds. If one is in the ambit of provident fund, they can contribute a
higher sum to this instrument and consider investing in the 5-year and 10-year assured return national
savings scheme (NSC).

Balanced Portfolio
Ideally a combination of instruments should be built taking into account the liquidity, which is nothing
but the lock-in period of the savings and the investment risk. For instance, for someone married with
growing children, the need for supplementary income is high. In addition to providing for their kids'
education, they will also look to save for their children's future. Compared to this, a couple servicing a
home loan should protect the liability and take adequate life insurance to match the outstanding home
loan repayment. Or, women taking a mid-career break to start a family will be more concerned about the
future expenses that will go bringing up children. Therefore, depending on the life stage one is at, their
investments should be managed to offset risk and provide for a suitable amount of liquidity and return.
By now you will agree, that there is little difference in the financial responsibility. To be sure to meet
your future financial obligations, one must make a financial plan by identifying your financial goals.
Where you are now, what you want to achieve and how much each of your goals would cost can be
arrived at using simple financial tools. At no point should one stretch their comfort to investment safety
and liquidity when planning their finances. But, the road to financial safety and security is to start early,
invest smartly and plan intelligently.



Governance in insurance industry
The issues mentioned above in a way can have control mechanism with correct corporate governance
practices in place by the insurance players.
Mandatory committees - The IRDA guidelines cover the composition of board of directors, its role and
responsibility, control functions, roles and responsibilities of senior management, including the chief
executive officer and the appointed actuary, appointment of statutory auditors, whistle blower policy,
outsourcing policy and disclosure requirements, etc.
It also requires that the board can delegate its authority to five mandatory committees to assist it. The
mandatory committees are the audit committee, the risk-management committee, the investment
committee, the asset-liability management committee and the policy holder protection committee. The
board can also be assisted by the nominations committee, the remuneration committee and the ethics
committee, which are non mandatory.
The board would primarily concentrate on the direction, control and governance of the insurer and, in
particular, should articulate and commit to a corporate philosophy and governance that will shape the
level of risk adoption, standards of business conduct and ethical behaviour of the company at the macro
levels.
The role of the insurance regulator has immensely influenced the way the industry has shaped. However,
the regulator should be able to play a role that benefits all stakeholders consumers, shareholder and
distributors. The regulator should be adopting a consultative approach with the insurers to avoid any mis-
conception among consumers. The way regulations have been managed over the past couple of years,
sets a view that probably the industry is practicing something wrong and hence the regulator is cracking
the whip. It should rather be providing stability through clarity in strategic direction. There should be
reforms in regulatory processes that consider positive differentiation to drive industry behaviour and
introduce regulatory impact assessments as part of the consultation process. The complexities of the
business will only increase with compliance, active boards and audits taking precedence. It is time for the
regulator to play its dual role of regulator and developer of life insurance sector by creating a clear
roadmap for growth of this sector which is critical to building a secure nation.
It is also important for the life industry to implement self governance in the largest interest of all
stakeholders. In some developed markets such as the United States and Britain, members of the life-
insurance industry have formed voluntary associations to set and promote rigorous standards for
consumer protection. Such models were later replicated in countries like Taiwan. Earlier this year the
association of life insurance in Taiwan could move the Insurance Bureau to hand over more
responsibility to the chief actuaries at the companies themselves instead of micro-scrutinizing each
application. But as many of the multinational companies operating in the market, there has also been
recognition that the new policy obligates the insurers to ensure high standards of market conduct.
.



COST MANAGEMANT
PROFIT BEFORE TAX
During the FY 2012-13, Max Life Insurance, recorded an Enterprise level Profit Before Tax of Rs. 860
crore, an increase of 17% as compared to FY 2011-12. The Shareholders Profit Before Tax for the same
period stood at Rs. 475 crore as compared to Rs. 460 crore in FY 2011-12. This rise in profit was a result
of continued revenue growth coupled with better productivity and cost efficiency.
TOTAL SHAREHOLDERS DIVIDEND
Max Life Insurance announced a year-end dividend of Rs. 159 crore. This takes the total shareholders
dividend for FY 2012-13 to Rs. 259 crore, including an interim dividend of Rs. 99 crore. Max India,
Mitsui Sumitomo and Axis Bank are entitled to a total dividend of Rs. 184 crore, Rs. 67 crore and Rs. 8
crore respectively.

POLICYHOLDER BONUS
Considering the surplus that arose over the financial year in the participating fund, Max Life Insurance
announced an increase in policyholder bonuses from the previous level. The total bonus that is estimated
to be paid out in the 12 month period starting 1st July 2013 is Rs. 297 crore. This payout is in addition to
the one-time special bonus of Rs. 130 crore to participating policyholder declared in January 2013.

Max Life Insurance's solvency ratio stood at 521% as at 31st March 2013, more than three times the
minimum regulatory mandated ratio of 150%.
The Company maintained its paid up capital (including share premium) as on 31st March 2013 at Rs.
2,127 crore.








COST MANAGEMENT

Gross written premium
Sum Assured in force As on 31 March
Assets under management As on 31
March
Profit before tax
Shareholders profit before tax
Solvency margin % As on 31 march


Apr-
Mar13
(Rs Cr.)
6639
169,167
20,458
860
475
521%
Apr-
Mar12

6,391

1,52,150

72,215

733

460

534%

Change
%


4%

11%

19%

17%

3%

(1300 bps)


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CONCLUSION
Liberty Life is a long-term insurance company which falls under the services industry in South Africa.
The basic distinguishing characteristic of services is intangibility. Services can not be seen, felt, tasted or
touched in the same manner as goods, because services are performances or actions rather than objects.
Services are heterogenic because they are performances, mostly produced by humans and no two services
will be precisely alike. Goods are produced first and then sold for consumption, services are first sold and
then produced and consumed simultaneously (Zeithaml et al). Often this means that the customer is
present whilst the service is being produced, and thus views and may even take part in the production
process. Simultaneity also means that customers will frequently interact with each other during the
service process and may affect each others experience. A service can not be saved, stored, resold or
returned, it is therefore perishable (Zeithaml et al.). Because of the unique nature of services, the
relationship with customers and therefore CRM is of the utmost importance.
The future looks very interesting for the life insurance industry with several changes coming into place
which will witness sea change in the way the boards function as well as the companies conduct their
business. Companies are gearing up to get listed over the next couple of years and the move will impact
the running of businesses with the focus shifting towards greater compliance and transparency in
governance.
Of course, the prime interest of consumers will remain in focus with strengthened policyholder protection
initiatives. The changing scenario will also witness renewed interest among people for employment opportunities
in the life insurance industry which has all the necessary ingredients to grow from strength to strength from here
on.
















BIBLIOGRAPHY

ORGANISATION BEHAVIOR STEPHEN P. ROBBINS
PERSONAL MANAGEMENT EDWIN B. HIPPO
RESEARCH METHODOLOGY R. C. KOTHARI
PRINCIPLE AND PRACTICE OF MANAGEMENT L. M. PRASAD
WEBSITES VISITED:
http://maxlifeinsurance.com/
http://www.reserchchroline.com
http://www.citehr.com
http://www.scribd.com
http://www.slideshara.com
http://www.bing.com




QUESTIONNAIRE FOR SALES
1. Department Name: ______________________
Name : ______________________
Designation : ______________________
Qualification: ______________________
Date of Joining Department: ______________________
1: Which non-banking Insurance company first comes to your mind when
you think of buying a product?
1. Max Life Insurance
2. Reliance mutual fund
3. Other Insurance
2: From which source did you come to know about Max Life Insurance?
1. T.V Advertisements
2. Sales Advisor
3. News Paper

3: Are you aware of Training and Development offers conducted by MAX
LIFE INSURANCE?
1. Yes
2. No
4: Please choose below the factor which attracted you most at the MAX
LIFE INSURANCE.
1-Advisor
2-Services
3-Products
5: Do you think the Training and Development activity of Max Life
Insurance gives you clear message?
1-YES
2-NO


6: Does your supervisor give you effective feedback on a regular basis?
a) Yes
b) No

7: Do you think that training and development is the tool that
improves employees performance level?
a) Yes
b) No
8: Are you capable of achieving the goals set for you?
a) Yes
b) No

9: To what extent is the MAX making progress towards its
mission and goals?
a) To a great extent
b) To some extent
c) No opinion

10: Do you get merit raise when the Training and Development
evaluation indicates that you are meeting the set standard on the
job?
a) To a great extent
b) To some extent
c) Not at all
11: Do your co-workers and superiors help you to scope up from
your poor performance?
a) To a great extent
b) To some extent
c) Not at all
12: In your opinion to what extent the superiors responsible for the
progress of MAX LIFE INSURANCE.
a) To a great extent
b) To some extent
c) Not at all