SUMMER TRAINING PROJECT REPORT

MAX NEW YORK LIFE

Submitted in partial fulfillment of the requirement of Bachelor of

Business Administration (BBA)

AGENT DEVELOPMENT PROGRAM DONE AT

VARIOUS LEVELS

TRAINING SUPERVISOR SUBMITTED BY:

NAME : MR. RAJIV NAME: PINKY YADAV

DHALL
BATCH : 2008-2011

ENROLLMENT NO. :
1411241708

SESSION-2008-2011

GURU GOBIND SINGH UNIVERSITY

 NEW DELHI

ACKNOWLEDGEMENT

I am deeply indebted to Mr. RAJIV DHALL for his constant support and
inspiration in completion of the internship program.

I would also like to thank my teachers for their encouragement and help in
making of this project report.

I am also grateful to other employees of MNYL for their help and support.

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ABSTRACT

This Report is an attempt to provide a detailed analysis of the process

of training program done by Max New York Life Insurance and the benefits of
the training.

However, survey done for this project suggests that maximum

number of employees, in the turbulent, fast changing world, effective
training has never been more important. Products are now increasingly
knowledge intensive; for this, employers are responsible for providing
opportunities for continued learning. This project gives a detailed analysis of
the training done by agents at various levels, its benefits and also their
personal growth which they will be having after the training. This project
gives a brief analysis about the benefits of the training and the improvement
of the agents because of the same.

In an Insurance Industry, training programs is the key to success. Its

effectiveness decides the fate of the Industry.

Finally, creating awareness of organization structure and its products

to the employee is very important to have individual as well as organization
growth. So it can be possible only when the employees go through the
training program.

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 TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION

• History / introduction 6
• Company profile 14
• Problem of organization 24
25
• Competitor information
27
• SWOT analysis
CHAPTER 2 OBJECTIVE AND METHODOLOGY

• Significance/Managerial usefulness 30
• Objectives 31
32
• Research methodology
CHAPTER 3 LITERATURE REVIEW 37
CHAPTER 4 DATA ANALYSIS 43
CHAPTER 5 FINDINGS AND RECOMMENDATION 65
CHAPTER 6 ANNEXURE 70
CHAPTER 7 BIBLIOGRAPHY 76

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INTRODUCTIO
N

5
Introduction

Indian Insurance industry is emerging rapidly after year 2000. To survive in

this highly competitive scenario, managers are being pressured to improve
quality, recruit quality, give the best training and skilled people and
eliminate inefficiency. The collective efforts of the employer, managers and
other relative people assume relevance in this context. And this is where
marketing management and human resources play important role.

Training is very important in today’s scenario. But still it is ignored and

considered as a secondary aspect. In case of insurance industry recruitment
and training only decide success or failure of company.

I have made an attempt to study this aspect of Insurance industry in my

project. In this project, I have tried to learn, what is the impression of training
in MNYL? I have tried to find out how exactly training is very important for
this firm as well as this industry, which are the different strategies firm use to
train quality people and so on. It is more qualitative rather than a
quantitative data.

To get knowledge of above questions and to fulfill the requirements for my

project on “A Study on agent development program done by max new
York life at various levels’. I have worked in MNYL and searched some
internet sites.

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Brief History of Insurance Sector in India

The insurance sector in India has came a full circle from being an open
competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-
degree turn witnessed over a period of almost 190 years.

The business of life insurance in India in its existing form started in India in
the year 1818 with the establishment of the Oriental Life Insurance Company
in Calcutta.

Some of the important milestones in the life insurance business in India are:

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

1928 - The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and non-life
insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by
the central government and nationalized. LIC formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.

The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance
company established in the year 1850 in Calcutta by the British.

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Some of the important milestones in the general insurance business in India
are:

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

1957 - General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound business
practices.

1968 - The Insurance Act amended to regulate investments and set

minimum solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972

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

107 insurers amalgamated and grouped into four company’s viz. the
National Insurance Company Ltd., the New India Assurance Company Ltd.,
the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.

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Indian Insurance Industry:

Learn about Insurance may be described as a social device to reduce or

eliminate risk of life and property. Under the plan of insurance, a large
number of people associate themselves by sharing risk, attached to
individual.

The risk, which can be insured against include fire, the peril of sea, death,
incident, & burglary. Any risk contingent upon these may be insured against
at a premium commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called

insurer undertakes in exchange for a fixed sum called premium to pay the
other party happening of a certain event.

Insurance is a contract whereby, in return for the payment of premium by

the insured, the insurers pay the financial losses suffered by the insured as a
result of the occurrence of unforeseen events.

With the help of Insurance, large number of people exposed to a similar risk
makes contributions to a common fund out of which the losses suffered by
the unfortunate few, due to accidental events, are made good.

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Functions of Insurance

The functions of Insurance can be bifurcated into two parts:

• Primary Functions
• Secondary Functions
• Other Functions

The primary functions of insurance include the following:

Provide Protection - The primary function of insurance is to provide

protection against future risk, accidents and uncertainty. Insurance cannot
check the happening of the risk, but can certainly provide for the losses of
risk. Insurance is actually a protection against economic loss, by sharing the
risk with others.

Collective bearing of risk - Insurance is a device to share the financial loss of

few among many others. Insurance is a mean by which few losses are shared
among larger number of people. All the insured contribute the premiums
towards a fund and out of which the persons exposed to a particular risk is
paid.

Assessment of risk - Insurance determines the probable volume of risk by

evaluating various factors that give rise to risk. Risk is the basis for
determining the premium rate also

Provide Certainty - Insurance is a device, which helps to change from

uncertainty to certainty. Insurance is device whereby the uncertain risks may
be made more certain.

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The secondary functions of insurance include the following:

Prevention of Losses - Insurance cautions individuals and businessmen to

adopt suitable device to prevent unfortunate consequences of risk by
observing safety instructions; installation of automatic sparkler or alarm
systems, etc. Prevention of losses cause lesser payment to the assured by
the insurer and this will encourage for more savings by way of premium.
Reduced rate of premiums stimulate for more business and better protection
to the insured.

Small capital to cover larger risks - Insurance relieves the businessmen from
security investments, by paying small amount of premium against larger
risks and uncertainty.

Contributes towards the development of larger industries - Insurance

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

The other functions of insurance include the following:

Means of savings and investment - Insurance serves as savings and

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

Source of earning foreign exchange - Insurance is an international business.

The country can earn foreign exchange by way of issue of marine insurance
policies and various other ways.

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Risk Free trade - Insurance promotes exports insurance, which makes the
foreign trade risk free with the help of different types of policies under
marine insurance cover.

The end of the year 2000 marks a significant change and growth of 'India
Insurance' industry scenario. Monopoly of Public Sector Insurance company
marks an end and Private companies makes inroad. Foreign companies, both
Life and General flocked, collaborated and helped astronomical growth of
'Insurance Industry in India'.

'India Insurance' growth was long overdue. Within 1st 12 months of liberation
of 'Indian Insurance Industry' 10 licenses for selling life insurance products
and 6 licenses for selling non-life products were issued to private companies.
The Public sector giant LIC started losing its market share at the cost of
stupendous growth of private players. Now 'India Insurance' industry has
more than a dozen private life insurance players and 9 private general
insurance companies. Aggressive and penetrative marketing strategy
coupled with wide product bandwidth was an instant success among the
ignorant masses. Most of the private companies registered more than 100%
growth till then and are still continuing with such monstrous growth figures.
Although, 'Insurance in India' is not regarded as a basic need but it is getting
popular among semi urban to rural masses. Top rank private companies like
ICICI Prudential Life Insurance, Tata AIG, Bajaj Allianz etc are aggressively
researching and innovating products for huge untapped rural 'India
Insurance' market. Collaboration with micro finance companies, post offices,
rural banks and village management authorities for selling insurance is doing
wonders.

Life insurance products cover risk for the insurer against eventualities like
death or disability. A non-life insurance product covers risks against natural
calamities, burglary, etc. They are not as popular as life products in the '
Insurance India's' portfolio. Until very recently it had only corporate buyers,

12
but with natural disasters like, earth quakes, tsunamis, storms and floods
becoming more frequent and damaging there has been a sudden spurt in
sales of general insurance amongst individuals. Consumerism of life style
goods and modern amenities has also contributed to its growth. With more
awareness and wide bandwidth of insurance product portfolio the growth for
'India Insurance' story will only get more competitive and more affordable to
all sections of Indian society.

Present Scenario

The Government of India liberalized the insurance sector in March 2000 with
the passage of the Insurance Regulatory and Development Authority (IRDA)
Bill, lifting all entry restrictions for private players and allowing foreign
players to enter the market with some limits on direct foreign ownership.
Under the current guidelines, there is a 26 percent equity cap for foreign
partners in an insurance company. There is a proposal to increase this limit
to 49 percent.

The opening up of the sector is likely to lead to greater spread and

deepening of insurance in India and this may also include restructuring and
revitalizing of the public sector companies. In the private sector 12 life
insurance and 8 general insurance companies have been registered. A host
of private Insurance companies operating in both life and non-life segments
have started selling their insurance policies since 2001.

Insurance companies:

IRDA has so far granted registration to 12 private life insurance companies

and 9 general insurance companies. If the existing public sector insurance
companies are included, there are currently 13 insurance companies in the
life side and 13 companies operating in general insurance business. General

13
Insurance Corporation has been approved as the "Indian reinsurer" for
underwriting only reinsurance business.

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 Company profile of MAX NEWYORK LIFE :

Max New York Life Insurance

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

Max New York Life Insurance Company Ltd. is a joint venture between New
York Life, a Fortune 100 company and Max India Limited, one of India's
leading multi-business corporations. The company has positioned itself on
the quality platform. In line with its vision to be the most admired life
insurance company in India, it has developed a strong corporate governance
model based on the core values of excellence, honesty, knowledge, caring,
integrity and teamwork. The strategy is to establish itself as a trusted life
insurance specialist through a quality approach to business.

New York Life is a Fortune 100 company that has over 160 years of
experience in the life insurance business. Max India Limited is a multi-
business corporate dealing in Clinical Research, IT and Telecom Services, and
Specialty Plastic Products businesses.

Max New York Life Insurance started its operations in India in 2000. It is the
first life insurance company in India to be awarded the IS0 9001:2000
certification. Max New York offers customized products tailored to suit

15
individual's needs. With its various Products and Riders, there are more than
400 product combinations to choose from. Today, Max New York Life
Insurance has a network of 57 offices spread over 37 cities all over India.

In line with its values of financial responsibility, Max New York Life has
adopted prudent financial practices to ensure safety of policyholder's funds.
The Company's paid up capital is Rs. 657 crore, which is more than the norm
laid down by IRDA.

Max New York Life has identified individual agents as its primary channel of
distribution. The Company places a lot of emphasis on its selection process,
which comprises four stages - screening, psychometric test, career seminar
and final interview. The agent advisors are trained in-house to ensure
optimal control on quality of recruitment.

Max New York Life invests significantly in its recruitment program and each
agent is trained for 152 hours as opposed to the mandatory 100 hours
stipulated by the IRDA before beginning to sell in the marketplace.
Recruitment is a continuous process for agents at Max New York Life and
ensures development of skills and knowledge through a structured program
spread over 500 hours in two years. This focus on continuous quality
recruitment has resulted in the company having amongst the highest agent
pass rate in IRDA examinations and the agents have the highest productivity
among private life insurers.

It has established a wide agency distribution network with 172 offices and
representatives across 120 cities in India. The company has established
additional channel with 22 bancassurance relationships, corporate tie-ups
and a strong Direct Sales Team. Through its wide network of highly
competent life insurance agent advisors, flexible product solutions and
strong customer focus, Max New York life is creating a partnership for life
with its customers in India.

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Max New York Life, one of India’s leading life insurance companies, expanded
its presence in the southern region by opening its first general office in the
city of Mysore. Max New York Life now has established a countrywide
network of 172 offices and representatives across 120 cities in India.

Max New York Life, which has till date sold over 1.53 million policies and
recorded a sum assured of over Rs. 46,000 crore, has positioned itself on the
quality platform. The company has developed a strong corporate governance
model based on defined core values of caring, knowledge, excellence and
honesty. Its strategy is to establish itself as a trusted life insurance specialist
on the bedrock of quality of advice. The company has over 25,300 agent
advisors, who are widely considered the best in the business.

Max New York Life aspires to be the "life insurance brand of first choice"
amongst Indian consumers. To achieve this the company will draw on New
York Life's demonstrated competence in developing and managing a superior
personal sales network. For the last 46 years consecutively, the largest
number of agents qualifying for membership to the Million Dollar Round
Table (MDRT) have been from New York Life. The MDRT is the industry's most
prestigious organization comprising the world's most successful insurance
agents. Max New York Life, a merit oriented and equal opportunities
employer, is looking for a few good men and women who will spearhead the
effort to realize this vision.

“Max New York Life wants people to view insurance as a financial protection
and wealth creation instrument and not just a tax-saving tool. Since the
launch of our operations, our focus has always been on providing risk
protection and long-term wealth creation solutions to our customers. With a
diverse product portfolio to meet customer requirements, it is evident that
we are setting benchmarks in the marketplace and are well on course of
realizing our vision to become India’s most admired Life Insurance
Company.”

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“An ever expanding presence of Max New York Life offices across India
reinforces our commitment to serving the nation. We are extremely pleased
with our progress in the region and feel that opening an office in Mysore
would help us educate people about the true potential and benefits of life
insurance. As life insurance specialists, Max New York Life will continue to
help consumers make the right choices to meet their financial goals, both for
the short and long-term, through sound quality advice offered by our agent
advisors and a right mix of product offerings.” he added.

Max New York Life has been instrumental in changing the paradigm of life
insurance in India. It is the first life insurance company in India to introduce
cause related marketing.

Children are at the very heart of Max New York Life's strategy. SOS Children's
Villages of India is internationally recognized for its work in giving
underprivileged children a wholesome life. The mission of SOS is "to help
orphaned and abandoned children, by providing them with a family, a
permanent home, education and strong foundation for an independent life."
It's mission ties in with Max New York Life's philosophy of helping people
secure the future of their near and dear ones.

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Vision:

Vision statement "Most Admired Life Insurance Company in India".

Mission:

• Become one of the top quartile life insurance companies in India

• Be a national player
• Be the brand of first choice
• Be the employer of choice
• Become principal of choice for agents

Max New York Life Values and Beliefs

Excellence

"In every aspect of work, ranging from the in-house training institute to the
detailed Personal Insurance Plan, Max New York Life is focused on achieving
the highest standards of quality in every aspect of their business".

Honesty
"Is the heart of the Life Insurance business. Max New York believes that
above all, Life Insurance is based on trust. Transparency, Dependability and
Integrity will form the cornerstones of the Max New York Life experience."

Knowledge
"Is what makes experts. Max New York Life is focused on the Life Insurance
business. Perfectly combining global expertise with local knowledge, Max
New York Life is the Indian Life Insurance specialist."

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Caring

"For the customer,Max New York Life is redefining the Life Insurance
paradigm to focus on the needs of the customers. The Max New York service
process is responsive, personalized, humane and empathetic."

Culture:

Our "in house culture recipe" has some of the finest ingredients going into its
making. Some of the more prominent aspects of our culture are stated
below:

• Customer comes first

• Do it right the first time
• Bias for result oriented action
• Financial strength and discipline
• Clarity of purpose
• International quality standards
• Inclusive Meritocracy
• Learning opportunities
• Fun at work
• Commitment to published value system

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Products of Max New York Life

Max New York Life Insurance offers an inangible product that is an insurance
cover. Max New York Life offers a suite of flexible products. It now has 43 life
insurance products and 8 riders that can be customized to over 800
combinations enabling customers to choose the policy that best fits their
need. The products that are offered by Max New York Life are broadly divided
into:

Various types of life insurance policies:-

 Endowment policies: This type of policy covers risk for a specified

period, and at the end of the maturity sum assured is paid back to
policyholder with the bonuses during the term of the policy.
 Money back policies: This type of policy is for periodic payments of
partial survival benefits during the term of the policy as long as the
policy holder is alive.
 Group insurance: This type of insurance offers life insurance
protection under group policies to various groups such as employers-
employees, professionals, co-operatives etc it also provides insurance
coverage for people in certain approved occupations at the lowest
possible premium cost.
 Term life insurance policies: This type of insurance covers risk only
during the selected term period. If the policy holder survives the term,
risk cover comes to an end. These types of policies are for those
people who are unable to pay larger premium required for endowment
and whole life policies. No surrender, loan or paid up values are in such
policies.
 Whole life insurance policies: This type of policy runs as long as
the policyholder is alive and is covered for the entire life of the

21
 policyholder. In this policy the insured amount and the bonus is
payable only to nominee on the death of policy holder.
 Joint life insurance policies: These policies are similar to
endowment policies in maturity benefits and risk cover, but joint life
policies cover two lives simultaneously such as married couples. Sum
assured is payable on the first death and again on the death of survival
during the term of the policy.
 Pension plan: a pension plan or annuity is an investment over a
certain number of years but does not provide any life insurance cover.
It offers a guaranteed income either for a life or certain period.
 Unit linked insurance plan: ULIP is a kind of insurance plan which
provides life cover as well as return on premium paid over a certain
period of time. The investment is denoted as units and represented by
the value called as net asset value (NAV).

The products offered by Max New York are :

 Life Partner Plus Plan  20 year Endowment (Par) Plan

 Life Gain Plus 20  Life Gain Plus 25 Participating
Participating Plan Plan

 Life Gain Endowment Plan  Endowment to Age 60 (Par)

Plan
 Children Plan  Whole Life Participating Plan

 SMART Invest Pension Plan  Five Yr Renewable and

Convertible Plan (Non - Par)

 Level Term Plan  LifeLine MediCash Plus Plan

 LifeLine Wellness Plan  LifeLine MediCash Plan

 LifeLine-Safety Net Plan  Life Pay Money Back

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  Life Maker Gold Plan  Smart Assure

 Smart Assure  Life Invest Plan

 Life Maker Premium  SMART EXPRESS

Investment Plan

The latest product that MNLY has come up with is known as the SMART
EXPRESS where the minimum premium is 50,000 but the benefit of this
policy if taken on a yearly mode is since it being a ULIP product and the
markets trend not looking too great the value of the fund freezes when the
stock price increases hence it to an extent offers a fixed return it can say
that one who invest in this plan is assured of a positive return. This product
was introduced since it had to discontinue its very famous product Life Invest
again this was due to the guidelines of IRDA when it says if the plan crosses
a certain limit of sum assured offered it has to close the product.

ACHEIVEMENTS

Max New York Life is the first life insurance company in India to be awarded
the IS0 9001:2000 certifications.

Max New York Life was among the top 25 companies to work with in India,
according to 2003 Business World magazine, "Great Workplaces in India",
Max New York Life was ranked at the 20th position. This survey is the local
version of the "Great Places to Work" survey carried out every year in 22
countries.

Been among top five most respected private life insurance companies in
India according to a 2004 and 2006 Business World survey.

Have truly built an enviable sales force. With 345 agents becoming members
of the MDRT in 2006, Max New York Life has moved up to 21st rank in MDRT
global list.

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Benefits

A career at Max New York Life has innumerable advantages. With low start
up investment you can become a part of a world-class organization and
make a positive difference to people’s lives.

Our agents sell more policies and make more money than agents of any
other life insurance company. The financial rewards are in the form of

• Commissions on new sales

• Ongoing renewal commissions
• Performance linked bonus
• Referral commissions
• Training reimbursement

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Problems of the organization

New York Life Insurance has been in the Big Apple since it was just a tiny
seed. The company (the top mutual life insurer in the US) is adding products
but retaining its core business: life insurance and annuities. New York Life
has added such products and services as mutual funds for individuals. It also
offers its investment management services to institutional investors. Other
lines of business include long-term care insurance and special group policies
sold through AARP and other affinity groups or professional associations. The
company, through New York Life International, is also reaching out
geographically, targeting areas such as Mexico and India where the life
insurance markets are not yet mature.

Life insurance was an infant industry when New York Life's predecessor,
Nautilus Insurance Company, began operations in the 1840s. Marine and fire
insurance were important, but people hesitated to assign a cash value to
human life, and often associated life insurance with gambling.

25
Competition information

Insurance companies:

IRDA has so far granted registration to 12 private life insurance companies

and 9 general insurance companies. If the existing public sector insurance
companies are included, there are currently 13 insurance companies in the
life side and 13 companies operating in general insurance business. General
Insurance Corporation has been approved as the "Indian reinsurer" for
underwriting only reinsurance business. Particulars of the life insurance
companies and general insurance companies including their web address are
given below:

Public Sector

Life Insurance Corporation of India www.licindia.com

Private Sector
Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in

Birla Sun-Life Insurance Company Limited www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com

ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com

ING Vysya Life Insurance Company Limited www.ingvysayalife.com

Max New York Life Insurance Co. Limited www.maxnewyorklife.com

MetLife Insurance Company Limited

www.metlife.com

Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com

SBI Life Insurance Company Limited www.sbilife.co.in

26
TATA AIG Life Insurance Company Limited www.tata-aig.com

AMP Sanmar Assurance Company Limited www.ampsanmar.com

Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com

GENERAL INSURERS

Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com

New India Assurance Company Limited www.niacl.com

Oriental Insurance Company Limited www.orientalinsurance.nic.in

United India Insurance Company Limited

www.uiic.co.in

Private Sector

Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in

ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com

IFFCO-Tokio General Insurance Co. Ltd.

www.itgi.co.in

Reliance General Insurance Co. Limited

www.ril.com

Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com

TATA AIG General Insurance Co. Limited www.tata-aig.com

Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com

Export Credit Guarantee Corporation

www.ecgcindia.com

HDFC Chubb General Insurance Co. Ltd.

REINSURER

General Insurance Corporation of India www.gicindia.com

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SWOT ANALYSIS

A scan of the internal and external environment is an important part of the

strategic planning process. Environmental factors internal to the firm usually
can be classified as strengths (S) or weaknesses (W), and those external to
the firm can be classified as opportunities (O) or threats (T). Such an analysis
of the strategic environment is referred to as a SWOT analysis.

Strengths

 The intense competition brought about by deregulation has

encouraged the industry to innovate in all areas; from underwriting,
marketing, policy holder servicing to record-keeping.
 Aggressive marketing strategies by private sector insurers will buoy
consumer awareness of risk and expand the markets for products.
 Competition in a deregulated environment will allow market forces to
set premiums that are appropriate for exposures and push insurers to
differentiate their products and services.

Weaknesses

 Premiums rates will remain under pressure due to intense competition

on the more profitable lines.
 Falling premium income without a corresponding reduction in claims is
likely to drive down profits.
 Reinsurance is likely to cost more as treaty reinsurers reduce ceding
commissions to compensate for the lower rates following deregulation.

28
Opportunities

 Innovations in distribution and improvements in market penetration

will follow as public and private insurers compete to market their
products.
 Allowing insurers to issue their own policy wordings and set their own
rates will enable underwriters to tailor products to meet client needs.
 The existence of stringent licensing requirements ensures that only
adequately capitalized and professionally managed companies are
eligible to carry out insurance and reinsurance.

Threats

 Public and private sector insurers‟ greater reliance on their investment

portfolios to generate sufficient income and gains for net profits would
subject them to the volatility of the financial markets.
 Private insurers need to raise more capital; otherwise growth could be
constrained since reliance on reinsurance for capital relief is not
always viable or available.
 Traditional distribution channels, especially tied agents, need to be
improved to match the new product offerings.
 Like all developing economies on a fast track, the shortage of trained
insurance professionals and technicians at all levels cannot be
remedied in the short term.

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OBJECTIVE AND
METHODOLOGY

30
MANAGERIAL USEFULL NESS/SIGNIFICANCE

The study is very useful as it helps to develop quality agent advisors for
MNYL who provide various solutions to customer’s problems which helps the
management in gaining and retaining customers for themselves. The
objective of my project is to know about various developmental programmes
which take place in MNYL for the betterment of agent advisors.

31
 OBJECTIVES

The main objective of doing this project is to study Financial Consultants’

attitude regarding the training program and the benefits of the training
program.

 The main objective of this study is to know the agents’ opinion

regarding the training program and to identify training needs for the
agents.
 To find out the benefits of the training program to the agent and to the
organization.
 To find out the contribution of the training towards individual growth of
agents.
 To suggest ways to improve the quality of training for the agents.

32
 Research Methodology:

The Research Methodology adopted for the present study has been
systematic and was done in accordance to the objectives set which has been
detailed as below.

Research Definition

Research is a process in which the researcher wishers to find out the

end result for a given problem and thus the solution helps in future course of
action.

According to Redman & Mory research is defined as a “Systemized

effort to gain new knowledge”.

So, This project here finds out the training procedure and it’s
effectiveness and the benefits of the training process for the employees who
undergo training here.

Research Design:

According to “Claire Seltiz”, a research design is the arrangement

of condition and analysis of data in manner that aims to combine relevance
to the research purpose with economy in procedure.

Nature of Research:

Research is basically of two types.

1. Descriptive research

2. Explorative research

33
1. Descriptive Research: These studies are concerned with describing the
characteristic of a particular individual or a group.

Determining sources of Data:

There are two main sources of data

1. Primary data

2. Secondary data

Primary Data: It consists of original information collected for specific

research.

Primary data for this research study was collected through a direct survey to
obtain this primary data a well structured questionnaire was prepared by the
researcher.

Secondary Data: It consists of information that already exists somewhere

and has been collected for some specific purpose in the study.

The secondary data for this study is collected from various Management
books and Internet.

Questionnaire: A set of questions containing a few Technical questions and

more number of opinionated questions are prepared for the employees of
both Centralized and Decentralized sections of HR Department.

Sample Size: Total sample size is 30

Questionnaire Development:

Questionnaire is the most common instrument in collecting

primary data, In order to gather primary data from viewers,

34
The present questionnaire consists of following type of questions.

• Open ended questions

• Closed ended questions
• Dichotomous questions
• Multiple choice questions
• Ranking question.

Open ended questions: It has no fixed alternatives to which the answer

must conform. Thus, respondent answer in his/her own words at any length
they choose.

Closed ended questions: Closed ended questions have no other options

other than the selecting the one that close matches the respondent’s opinion
or attitude.

Dichotomous questions: A dichotomous questions refers to one, which

offers the respondents a choice between only two alternatives.

Multiple Questions: A multiple choice question refers to one, which

provides several sets of alternatives for the respondents’ choice.

Ranking questions: These questions are given when there are many points
to be considered and to be ranked in priority.

35
LIMITATIONS

 The survey was conducted with in the company.

 And in survey I have to interact with the employees. But the

employees will be busy their works.
 Getting the good response from the employee will be difficult because
of their busy schedule.
 Time to interact with employees inside the branch is not sufficient.
 Time Period of my OJT is one of the limitations.
 Small sample size may not be sufficient to generalize regarding all the
employees.

36
Literature
Review

37
Definition of Development:

The systematic development of the knowledge, skills and attitudes

required by an individual to perform adequately a given task or job.
Development refers to efforts that help enhance employee skills for carrying
out the present job. According to Edwin B Flippo, Development is the act of
increasing knowledge and skills of an employee for doing a particular job.

Needs for Development:

• To improve the current job performance of employees

• To familiarize employees with the policies and procedures of the
organization.
• To enhance the creativity, adaptability and versatility of the employees
and to facilitate learning at the work place
• To prepare employees for future job.
• To change the skills, knowledge and attitudes of the employees on a
permanent basis.
• To help employees manage their careers.
• To maintain knowledgeable work force.
• To gain competitive advantage through a knowledgeable work force.
• To promote organizational growth through individual growth.

Areas of Development:

• Company policies and procedures

• Human relations Development

38
• Skill based Development
• Problem solving Development

39
Onsite Workshops for Leadership Team

Employees need more than bosses... They need mentors: Professionals

skilled at assessing employee development needs and committed to guiding
employees toward professional success.

Team Leadership Workshop provides managers with proven techniques

for effective personnel management. By helping leaders understand and
address their employees' requirements, this interactive seminar offers
significant benefit to managers at all levels. New supervisors gain a solid
grounding in the concept of ''leadership,'' while more experienced managers
refresh their commitment to teaching and coaching their team members.

This Development program provides healthy perspectives for

managers at all levels, making it an ideal morale-boosting leadership
development experience for mixed groups of front-line supervisors and
senior staff members.

40
Development programs for Success

Leadership Development for Success

All managers need methods. Leaders need to know the most effective
techniques for guiding teams, mentoring individuals, and validating the
results. Without solid methods, managers will revert use a one-size-fits-all
approach to leadership that reflects the leader's personality, rather than the
employees' needs.

Committed, mentoring leadership is essential to employee morale,

productivity, and retention.

A Results-Oriented Development Program

Team Leadership Workshop provides proven methods and procedures

for successful people management. Participants receive a step-by-step plan
for guiding each employee toward success.

This workshop includes elements of Frank Whyte's nationally respected

Team Building Workshops expanding upon that foundation to help leaders:

• Recognize each employee's personality preferences and supervisory

needs,
• Align their leadership style with those of their bosses, colleagues, and
subordinates,
• Develop competent and committed employees by mentoring and
guiding their employees toward success,
• Schedule their management responsibilities to ensure that nothing is
left to chance, and
• Use practiced real-world scenarios to resolve challenges and remove
barriers.

41
Development programs done by MNYL

Development is must for every individual when he enters into the

organization. Even though the candidate has experience he also should get
Development. Why because the organization culture, values and beliefs are
different from one organization to other. That’s why the Development
program plays a key role in every organization.

Development program following by Max New York Life Insurance is different

at various levels.

Mainly in Development program the company concentrates on sales

managers, agents, operations executives and telecallers.

Development program for sales managers:

• The Development program duration is 15 – 20 days

• They get Development on product knowledge.
• Motivating and encouraging Advisors

Development program for Advisors:

• The Development program duration is 15 – 20 days

• They get Development on product knowledge
• How to convince the people.
• Objection Handling

42
Development program for operations executives:

• They will get Development on customer database files

• Taking care of the customer files
• Well trained in product information and documentation
• Renewals will be informed periodically.

Required skills for employees in Max New York Life Insurance:

• Interpersonal skills
• Excellent communication skills
• Understanding nature
• Aggressiveness
• Convincing skills
• Ability to motivate others
• Interest to learn

43
ANALYSIS

44
Analysis of office staff who are having sufficient Knowledge on life
Insurance .

New Advisors 6
Advisors 18
Telecallers 4
Marketing Executives 2

Diagram of the table:

20

15

10

0
newadvisors advisors telecallers marketingexecutives

Analysis of the table:

The above chart shows that advisors only have more knowledge than
telecallers, marketing executives and new advisors. Advisors will
complete the deals. But after that everything will be taken care by
operations executives and telecallers. Without sufficient knowledge these
both people can’t work well. When the telecaller is calling to customer for
renewal premium that person should have a knowledge how the premium
should calculate, and they should know any extra charges for late
payment, and how much grace period will be… these things should be
known even by telecallers and operations executives too.

Q.1. How do you feel about the Development Programme?

45
Very good 15
Good 8
Fine 4
Bad 2
Time waste process 1

16
14
12
10
8
6
4
2
0
verygood good fine bad time waste
process

Here 50% of the employees feel good about the program and
another 50% says that it is not upto that extent which was
expected. That means Development process should still more be
improved.

46
Q.2. How far is the Development effective?

Very helpful 7
Helpful 8
Fine 2
Can b done from other sources 3
Time waste process 0

8
7
6
5
4
3
2
1
0
very helpful helpful fine othersources time waste

This shows that the Development process is very effective and it

is very much needed. Development of agents in Insurance
Industry almost decides its success and failure. Therefore,
Development to Advisors is very important.

47
48
Q.3. Did you understand about all the products during the process?

All the products 10

Some products 10
Few products 5
No clear idea 5
Nothing 0

10

0
all the products some products fewproducts no clear idea nothing

As we have already known that the Development process is

effective, here hence forth it is clear that the products they deal
is quite well communicated to the agents. But still if more focus
is given to the agents who are poor in understanding then it
would a complete deal.

49
Q.4. After the Development, do you think you improved your
interpersonal skills?

Yes 25
No 5

25

20

15

10

0
yes no

As we know, Development is good for Agents, it is also necessary to

improve their interpersonal skills for their individual growth and till to
very good extent it is successful.

So, because of this Development they even improve their skills for their
individual growth which is important for their career.

50
Q.5. During the process, is there any Development program, which
can improve your communication skills?

Yes 10
No 20

20

15

10

0
yes no

To communicate the products well to our customer, we should have

very good communication skills, but here there are no good sessions to
practice and improve their communication skills. Now I recommend
having more sessions to improve this quality of theirs’.

51
Q.6. Are you satisfied with the Development process in terms of
teaching, and environment?

Very much satisfied 8

Satisfied 10
Needs improvement 10
Not at all 2
Cant say 0

10

8
6

0
verymuchsatisfied satisfied needs not at all cant say
improvement

Teaching environment is good but it still needs more improvement

because more agents are not completely satisfied with the
environment and they complained about its punctuality.

52
Q.7. Is the approach of your trainer with you is good and friendly?

Good 15
Fine 8
Bad 5
Rude 3

15

10

0
good fine bad rude

53
 Q.8. Do you think, you have made any improvement in your
performance after the Development?

Lot of improvement 8
Don’t know 10
No improvement 10
Instead deteriorated 2

20

15

10

0
lot ofimprovement don’t know no mprovement deteriotated

This is a mixture of comments. These people here were not able assist
themselves. But anyway the majority gave positive results.

54
Q.9. Who needs much knowledge regarding the company and its
products?

Agents 5
Tele callers 4
Operational executives 1
Recruitment consultants 0
All the above 20

20

15

10

0
agents telecallers operational recr consultants all
executives

This table shows that all the people related to Insurance companies
should be having sufficient knowledge about the company and its
products. When a customer approaches he may not have idea about
his designation, so everyone should be aware of the same.

55
Q.10. For which areas, the agent needs Development?

Company policies and 1

procedures
Skill based Development 0
Problem solving skills/objections 2
handling.
Communications skills. 2
All 20

20

15

10

0
companypolicies sillsbased problmsolving communitnskills all

The survey tells us that, an agent should take Development for all the
areas. It is not sufficient to have proper knowledge only about the
products when you don’t know how to present them. He should be
talented enough to answer or solve all the odd questions a customer
asks. So, agent should get Development for all the areas mentioned.

56
Q.11. Are all the benefits, incentives and promotions in MNYL are
communicated properly to you? Are you satisfied?

Yes 25
No 5

25

20

15

10

0
yes no

57
Q.12. To which level did the Development motivate you to give your
best performance?

Very strong 17
Fine 9
Didn’t get motivated 2
Time wasted 0

20

15

10

0
verystrong fine ddnt get motivated time wasted

As we know that the Development process has been very effective, the
trainer has a very good motivating skill which motivates other people very
well. This survey tells that after the Development they got goose bumps and
they felt very strongly motivated and they will be doing their work very
efficiently.

58
 Q.13. Group activities are conducted to find out creative
ideas and suggestive from the participants?

Strongly agree 20
Agree 5
Neutral 0
Disagree 3
Strongly disagree 2

20

15

10

0
stronglyagree agree neutral disagree stronglydisagree

As there is a saying, “Unity is stronger”. It tells that, when a group

activity is done it unconsciously creates very good ideas and suggestions
which can be very beneficial for the other team members as well as for the
organization.

59
Q.14. Is the environment of MNYL friendly?

Yes 25
No 5

25

20

15

10

0
yes no

60
Q.15. The Development is very stressful?

Interesting 15
Fine 10
Boring 4
Cant Comment 1

15

10

0
interesting fine boring no comm ents

The agents feel very interesting about the Development program

which shows good vibes to us. But a very few people find it a bit boring
which is negligible.

61
Q.16. Do you want to make any changes in the Development?

Yes 20
No 10

20

15

10

0
yes no

Maximum people are satisfied with the Development and they

don’t want any changes. But still there are a few people who want
some changes in the program.

62
Q.17. If yes what?

33% of the people wanted changes in the Development program.

The changes which they wanted are listed below:-

• Change in timings.
• Instead of coming every day, they wanted a few holidays in
between.
• Some people wanted to have online Development programs.
• Some wanted brief description instead of detailed which is taking
10 days.

Q.18. Do you think the participants were involved properly during

the Development process?

Yes, all the participants or agents were involved very well in the
Development programs. Everyone was excited to know the products to
play tasks, and they were attentive also.

63
Q.19. Were you are exposed to

Brainstorming sessions 2
Group Discussion 8
Lecture Sessions 20
Business Game 0
All the above 0

20

15

10

0
brainstorming groupdiscussion lecture businessgame all the above

The survey tells that agents were mostly exposed to Lecture Sessions,
which means the trainer was giving more information about the
projects instead of asking or making ice-breaking sessions. But anyway
30% of the people also say that they were exposed to Group
Discussions as well.

64
Q.20. During the Development, how well you were
communicated the objectives of the Development programme?

The survey tells that the objectives were communicated very well
for which they were tempted and joined MNYL. And now they were
happy to be a member of MNYL family.

65
RESULTS AND
DISCUSSIONS

66
Findings

 Development program is good but it should still more be improved.

 During Development program, poor agents who are weak in their
communication skills and English are not able to understand.
 Because of Development, employees became more loyal to the
organization, as they came to know the vision and mission of the
Industry.
 Development made the employees and agents more useful to the firm.
 Development improved their interpersonal skills which is very helpful
for their career growth and individual growth.
 But there are no sessions which can improve their communication
skills.
 Development classes are not commencing on time.

 The trainer is good and friendly.

 All the members in the Industry should have knowledge about the
products.
 Development can contribute to higher production and fewer mistakes,
greater job satisfaction and lower employee turnover. Also, it can
enable employees to cope up with organizational, social and
technological change.

67
Recommendations

 Create awareness: The Company has to take care of awareness

creation about the products and services among the Advisors/Agents
 There should be more sessions which can improve their communication
skills.
 The classes should commence on time.

 The company has to give periodic Development.

 Extra Development should be given to poor students.

 Product promotion strategies should be improved.

 Company should consider the present competition and should act
according to the customer needs.
 It Should be like long term Development like Fundamental Carrier class
, Basic Carrier class which helps the advisors in different stages.

68
Key Learning’s

 Before this internship project my knowledge about the insurance

industry was quite bleak. This internship in MNYL has immensely
helped me in categorizing the different financial products.
 Another of my crucial learning has been in the area of communication
with the outside world. Finding a possible prospect and then giving
them information about the opportunities available was a really tough
challenge.
 Majority of the population in Bhubaneswar and Berhampur have a
negative perception about the insurance industry. Giving them
appropriate information about the opportunity to earn in this field was
a challenging task.
 Along with the information on the job, the staff of MNYL also gave
many inputs that would definitely help in the management field.

69
CONCLUSION

It has been a great experience working with Max New York Life. I have
gained a lot of knowledge and improved immensely on my skills. I got the
opportunity to meet and communicate with many people and undertake
responsibility. I feel that MNYL is a great organization with plenty scope for
growth. One of the main reasons in the success of this project was the
constant appreciation and motivation from the concerned guides of company
as well as college. The internship was both informative and also interactive.

In this Knowledge-based economy, Development helps people to learn

how to do the things differently or to the different things. Products are now
increasingly knowledge-intensive; for this employers are responsible for
providing opportunities for continued learning. To cope with the challenges
and competitiveness in the world, every organization needs the services of
trained persons for performing the activities in the systemic way. So,
Development program plays a key role in individual as well as organizational
performance.

70
ANNEXURE

71
QUESTIONNAIRE FOR FINANCIAL CONSULTANTS

Name:

Age:

Designation:

Work Experience:

Income Level

Q.1. How do you feel about the Development Programme?

A. Very Good
B. Good
C. Fine
D. Bad
E. Time waste process

Q.2. How far is the Development effective?

A. Very helpful
B. Helpful
C. Fine
D. Can be done from other sources
E. Time waste process

Q.3. Did you understand about all the products during the process?

A. All the products

B. Some products

72
 C. Few products
D. No clear idea
E. Nothing

Q.4. After the Development, do you think you improved your

interpersonal skills?

A. Yes
B. No

Q.5. Do you think or feel, the Development program is helpful for your
individual growth in your career?

A. Yes
B. No

Q.6. During the process, is there any Development program, which

can improve your communication skills?

A. Yes
B. No

Q.7. If Yes, What is the programme?

73
Q.8. Are you satisfied with the Development process in terms of
teaching, and environment?

A. Very much satisfied

B. Satisfied
C. Needs improvement
D. Not at all
E. Cant say

Q.9. Do you feel the Development program is very lengthy and

boring?

A. Yes
B. No

Q.10. How many days do you think this Development process should
take place.

A. 4-5 days

B. 5-6

C. 6-7

D. 7-8

E. 8-9

Q.11. Is the approach of your trainer with you is good and friendly?

A. Good.

74
 B. Fine.

C. Bad.

D. Rude.

Q.12. Does your boss or trainer give you a patient ear and clear all
the doubts?

A. Yes.

B. No.

Q.13. Do you think, you have made any improvement in your

performance after the Development?

A. Lot of improvement.

B. Don’t know.

C. No improvement.

D. Instead deteriorated.

Q.14. Who needs much knowledge regarding the company and its
products?

75
 A. Agents.

B. Tele callers.

C. Operational executives.

D. Recruitment consultants.

E. All.

Q.15. For which areas, the agent needs Development?

A. Company policies and procedures.

B. Skill based Development.

C. Problem solving skills/objections handling.

D. Communications skills.

E. All the above.

Q.16. Is the environment of MNYL friendly?

A. Yes.

B. No.

Q.17. Are all the benefits, incentives and promotions in MNYL are
communicated properly to you? Are you satisfied?

76
 A. Yes.

B. No.

Q.18. To which level did the Development motivate you to give

your best performance?

A. Very strong.

B. Fine.

C. Didn’t get motivated.

D. Time waste.

Q.19. The Development is very stressful?

A. Interesting.

B. Fine.

C. Boring.

D. Can’t comment.

Q.20. Do you want to make any changes in the Development?

A. Yes.

77
 B. No.

Q.21. If yes what?

Q.22. 3 modules you liked the most?

Q.23. Do you think the participants are involved properly during

the Development process?

Q.24. Group activities are conducted to find out creative

ideas and suggestive from the participants?

A. Strongly agree.

B. Agree.

C. Neutral.

D. Disagree.

E. Strongly disagree.

Q.25. Are you are exposed to

78
 A. Brainstorming sessions.

B. Group discussion.

C. Lecture sessions.

D. Business game.

E. All the above.

Q.26. During the Development, how you were communicated the

objectives of the Development programme?

79
BIBLIOGRAPHY

• www.maxnewyorklife.com
• www.google.com
• www.encylopedia.com
• IC 33 book of max newyork life

80