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ABOUT THE INSURANCE INDUSTRY What Is Insurance Purpose And Need Role Of Insurance In Economic Development Types Of Insurance Why Life Insurance Is Required List Of Indian Insurance Company
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WHAT IS INSURANCE
Every asset has a value for its owner and also for those who are benefited with the existence of that asset. Insurance is concerned with the protection of economic value of assets. All of us are interested in the creation of assets because: 1. All assets have values. 2. They yield income to the owner. 3. They meet some other needs of the owner. 4. They may provide satisfaction of some needs and also yields income to the owner. The benefit may be an income or in some other form. Example: A house has a value. A car is useful for providing traveling comfort to the owner and other members of his family .There is no direct income. An owner of a factory receives income by sale of its products. A farmer may rear a cow with the expectation of getting milk for his family and making some money from the sale of excess milk.
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Every asset has normally an expected lifetime. During this period, it is expected to perform and provide income/comfort to the owner. The owner, being aware of this, plans the things in such a way that by the time the expected lifetime of the asset expires, he is ready with funds required for its replacement. In this way, he ensures that the value or income from the asset is not lost Well this appear to be a fine arrangement provided the asset completes its lifetime. All assets carry the risk of being destroyed or damaged. But all assets may not necessarily get destroyed or damaged. Only in a few instances, the probability turns out to be true and the asset gets actually lost or destroyed by accident or some other unfortunate event before the completion of its excepted lifetime. The owner and those deriving benefits from the asset will suffer because the arrangement to make available its substitute is not yet ready. Insurance is helpful in mitigating such adverse consequences. To sum up, assets are insured, as they are likely to be lost or made non-functional through an accidental occurrence. Insurance does not protect the assets. This means that insurance can not prevent loss to the assets due to perils. Nor can insurance avoid the occurrence of perils. It only compensates, may not be fully, the economic or financial loss resulting to the asset from such damage or destruction.
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TYPES OF INSURANCE
Life Insurance
General Insurance
Life Insurance
Insurance is protection of economic value of an asset, which includes human life, against probable loss partial or in full. A life insurance policy promises that the insurer will pay to the policyholder a certain sum of money if the person insured dies or any other specified contingency happens. It is a contract, within the meaning of the Indian Contract Act 1872. A contract is an agreement between two or more parties to do, or not to do, so as to create a legally binding relationship. A simple contract must have the following essentials Offers and acceptance Consideration Capacity to contract Legality of object or purpose Capability of performance Intention to create legal relationship
Insurance is a contract between the insurer and the policyholder. The policyholder can be different from the person whose life is insured.
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Life Insurance is a contract for payment of sum of money to the person assured on the happening of the vent inured against. Usually the contract provides for the payments of an amount on the date of maturity or at specified sates at periodic intervals or at unfortunate death, if it occurs earlier. Among other thing, the contract also provides for three payment of the premium periodically to the Corporation by the assured. Life Insurance is universally acknowledged to be an institution which eliminates risk, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of the death of bread winner. Life Insurance, in short, is concerned with two hazards that stand across the life path of every person: that of dying prematurely leaving a dependent family to fend for itself and that of living to old age without visible means off support.
following sickness or disabilities caused by accidents. If this happens by the time one is on the verge of retirement when his income is about to
cease, he might have made alternative arrangement to meet his needs. But if this happens at the younger age when he is not expected to have made adequate
alternative arrangement, those who are dependent on hiss income, will suffer. Insurance is necessary to help those dependent on his income.
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Human beings are exposed to another type of risk. It is the risk of living too long. Yamuna agar person, who has made necessary arrangement to meet his financial needs after retirement, also would have been made on the basis of certain assumption. One assumption can be that he will live for another 20 years. Another assumption can be that his children will support him financially. Still another can be that he will earn an interest of 10% yearly on his investments. If any of this assumption does not come out to be true, the original arrangement, which he has made, will be inadequate and he will be facing financial difficulties. This means that living too long is as much a problem as dying too young. Insurance provides safeguard against these risks.
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INTRODUCTION
COMPANY PROFILE LIFE@MNYL THE SIX DIFFFERENTATORS ACHIEVEMENTS AND AWARDS MANAGEMENT
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The agent advisor is trained in house to ensure optimal control on quality of training. The company currently has around 92,760 agent advisors at 710 offices across 385 cities with 88 lakh customers. The company also has 36 referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships each. Max New York Life has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. The company has 133 offices dedicated to rural areas. Max New York Life offers a suite of flexible products. It has now 21 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need. Besides it the company offers 6 products and 7 riders in group insurance business.
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Vision
Mission
Be a national player. Be the brand of the first choice. Become principle of the choice for agent. Be the employer of the choice.
our unique set of values, which are as follows: Knowledge Caring Honesty Excellence
Values
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Culture Our in house culture recipe has some of the finest ingredients going into its making. Some of 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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consecutive years. Since 2001, Max New York Life has had more Qualifiers for the prestigious Million Dollar Round Table than all the other private sector insurance companies get together. Management Loyalties: One of the many advantages of working with Max New York Life is that managers are not allowed to sell insurance products to their own customers. Compensation in management is derived entirely from the success of agents and the overall growth of the organization. Managers at all levels are totally committed to the success of agents and do not pursue any conflicting goals. MNYL products: No organization can claim to have the number one product in the insurance industry for a long period of time. It is a matter of great pride that our products have always been rated among the best in the industry. These products have been developed after extensive research of the Indian market and are designed to meet an individuals needs at every life stage. The Agents Contract: The Agents Contract is designed to attract efficient professionals and retain them for a long time by compensating them generously. As an agent you can count on the support of Max New York Life at all times to help you earn a good income today and create a secure retirement for tomorrow.
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Great Work Environment Max New York Life is committed to working in a high-tech environment. In the United State, New York Life is noted for its leadership in using technology to provide very best in customer service and employee support. The same system has been adapted for India to offer simple, easy to understand illustration for the most complex products.
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First company to provide free look period of 15 days to the customer. This was later made mandatory by the regulator
First company to start toll free line for agent services First and the only life insurance company in India to implement Lean methodology of service excellence in service industry
First life insurance company in India to provide various services to the agents and customers over phone
First Indian life insurance company to start service center at the regional level First life insurance company in India to receive ISO 9001:2000 certification First life insurance Company to be awarded CII-EXIM Bank commendation certificate for Strong Commitment to Excel.
Awards:
Outlook Money survey ranked MNYL No.1 in Slow, Medium and Quick fund categories
BT Mercer Ranked No7 in the Best companies to Work For Awarded the Gallup Great Work Place Award 2009 CII Exim Bank Commendation Certificate for Business Excellence 2008 & 2009
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Received Best Six Sigma Project award at 6th CII National Six Sigma conventions 2009.
Recognized as a Super brand 2009-2010 Recipient of 2008 CIO 100 Award for technology implementation Golden Peacock Award for Innovation 2008 Among the top 25 companies to work for in India, according to Business world 2003 Great Workplaces of India
Among the top five most respected insurance companies in India as per Business world 2004 & 2006 survey
Won 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 Awards 2006
Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by Asia Insurance Review
Received the Amity Corporate Excellence Award 2007 Received the Outlook Money Award for being among the best new insurers in the country.
Max New York Life bags the Asia Insurance Industry Innovation of the Year Award 2009
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MANAGEMENT
BOARD OF DIRECTORS: Mr. Analjit Singh Chairman Max New York Life Insurance Mr. Anuroop (Tony) Singh Vice Chairman Max New York Life Insurance Mr. Rajesh Sud CEO & Managing Director Max New York Life Insurance Mr. Rajit Mehta Executive Director and Chief Operating Officer Max New York Life Insurance Mr. William Beaty Director Max New York Life Insurance
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Mr. Richard L. Mucci Director Max New York Life Insurance Dr. Omkar Goswami Director Max New York Life Insurance Ms. Marielle Theron Director Max New York Life Insurance Mr. Leo Puri Director Max New York Life Insurance
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MANAGEMENT TEAM
Mr. Rajesh Sud CEO & Managing Director Mr. Rajit Mehta Executive Director & Chief Operating Officer Mr. Ashish Vohra Senior Director & Chief Distribution Officer Mr. Rajiv Burman Senior Director & Chief People Officer Mr. John Poole Appointed Actuary Mr. Rajiv Mathur Director Legal & Compliance Mr. Prashant Tripathy Director - Strategic Planning, Business Development and Health & Retirement Mr. V.Viswanand Director & Head - Products and Persistency Management Ms. Anisha Motwani Director and Chief Marketing Officer
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RECRUITMENT PROCESS
The steps of the recruitment process are: Fallow the Criteria 12- Point System 1- Name Gathering 2- Aptitude test 3- Screening i) Initial Screening ii) Competency Based 5- Give the project like P40 6- Evaluate P40 7- Interview 8- Training 16 days 9- IRDA Test 10- Contracting with max new York life insurance.
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Criteria
Bases
Points
2-3 lacs Annual household income 3-4 lacs Greater then 2 lacs
1 2 3
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Marital status
unmarried married
1 2
Service Self employed Background / Experience Housewife VRS/Retired Self employed(in finance sector) Total points
1 2 3 3 3 12
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Name Gathering:
The process involves gathering names of individual who can be prospective Agent Advisor. (a) Controlleble source (b) Non controllable source
Controllable Source:
Controllable Sources are the sources in which the sales manager can be proactive in gathering names of the prospective candidates. When using controllable source, sales manager need not rely on external factors to begin Name Gathering. Centre of Influence:
COI is an individual who knows large group of people or is member of these groups. Nominators:
Nominators are individuals who can give referrals, but with whom a sales manager has not yet developed a COI relationship. Agent Referral Program:
Under this program an Agent Advisor refers prospective candidates. ARP also provides an additional income opportunity for Agent Advisor.
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Personal Observation: Can be defined as a face to face contact made on an impromptu basis in order to secure an appointment for an interview. These opportunities usually occur when the sales manager is in the midst of some other activity or event.
Friends and Family: Some of the friends and family members, who know his or her target markets well, may become COI.
Uncontrollable Sources:
Newspaper advertising: Newspaper advertising can give the sales manager access to a large audience in a short time, although it could be expensive. Therefore, the sales manager should advertise in newspapers and general publications with a specific target. Seminar: Recruiting seminars enables the sales manager to make a good impression with a wellrehearsed professional presentation. In addition to recruiting seminars, sales seminars, continuing education seminars or other group meetings can also provide opportunities to develop Nominators.
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Campus Recruitment: In this, the sales manager visit alumni offices and graduate school department. Many colleges have placement officers to help graduates find employment. The sales manager should build relationship with business school professors. The sales manager should look for alumni who may be re-entering the job market with some sales experience. Employment Agencies: Public employment agencies can be helpful in Name Gathering. Some employment agencies would let thee sales manager use the opportunity to access the database and would give his or her fax number to receive resume. Internet: Using the internet, the Sales manager can get access to a great number of people and places. The following are some of the tips that a sales manager can follow while Name Gathering using the internet: Know the relevant Web site restriction: MNYL does not allow sales manager or Agent Advisor to put up their own Web pages. In addition, advertising on the Web is limited.
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Check college sites: Many alumni associations put graduates resumes on the Web. Most of these sites require an access password, which the sales manager has to get from the institution.
Jobs Fairs: Jobs Fairs could be great sources of quality names. Check the sponsors references: There are many firms sponsoring job fairs. Therefore, the sales manager needs to verify the references of the firm, and ask for earlier MNYL participants in such events. Use the recruiting booth: The sales manager needs to follow the procedures as specified by the sponsor. Take another person along: The sales manager should take another sales manager, his or her colleague to ensure that he or she is flexible in attending candidates who visit the booth. He or she would be able to have more extended conversations with promising candidates, and in general would be able to accommodate more people. Move around: The sales manager should not wait passively at his or her table. He or she needs to gets up and introduce himself/herself. The sales manager needs to visit other booths, introduce himself/herself discuss about the types of candidates the other firms are seeking.
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Screening
After gathering names, the next step is to conduct the Screening Interview. This is the first interview with the prospective candidate. The screening consists of activities: 1. Initial Screening 2. Competency Based Initial Screening : The initial screening interview is an interview conducted with an objective to literally screen the prospective candidates and determine whether to continue the interview process or not. Competency-Based : The objective of this interview is to assess the prospective candidate for desired competencies such as entrepreneurship skills and perseverance. The main objectives of this stages are to assess how the candidate rates on: the following
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Reference Checks
After the screening interview, the next step is to perform the reference checks. Two types of reference checks should be performed at this stage, Professional Reference Check and Personal Reference Check.
Evaluate P40
The next step is to identify if whether the prospective candidate will be able to survive in the insurance business. For this it is essential that the P40 has qualified prospects.
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Interview
Career interview here the office head explains to the prospective candidate about the opportunities of the career and motivates his or her to become an Agent Advisor. An Additional Interview can be conducted if there is a doubt about the prospective candidate. Besides the Office Head, the Associate Partner and Training Manager can also be involved in the interview.
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Recruitment Funnel
New names per month Screening interview per month Competency based interview per month Career seminar per month Project-40 Career interview Agent Contracts per month
40 10 8 8 6 4 2
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Definition Of Training
Systematic development of the knowledge, skills and attitudes required by an individual to perform adequately a given task or job. Training refers to efforts that help enhance employee skills for carrying out the present job. According to Edwin B Flippo, training is the act of increasing knowledge and skills of an employee for doing a particular job.
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.
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Areas Of Training
Company policies and procedures Human relations training Skill based training Problem solving training
Training program following by Max New York Life Insurance is different at various levels. Mainly in training program the company concentrates on sales managers, agents,
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Objective
To study the recruitment and development process in MNYL. To find out the satisfaction level for recruitment process in MYL. To find out the satisfaction of agents regarding training.
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Research Methodology
Sampling unit- Respondents who were asked to fill out questionnaire are the sampling unit. These comprise of employees of Max New York Life Insurance.
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SURVEY
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yes
no
40%
60%
60% people say yes they are aware about MNYL. 40% people say they dont aware about MNYL.
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2. ARE YOU SATISFIED WITH THE RECURITEMENT PROCEES WHICH MNYL FALLOE?
YES
NO
40%
60%
60% the people say they are not satisfied with the recruitment process. While 40% the people say yes they are satisfied with the recruitment process
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20%
80%
80% of the people say they want commission based with incentive. 20% of people say they want salary based with incentive.
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HIGHLY SATISFIED
SATISFIED
DIS SATIFIED
15%
25% 60%
60% People say they are highly satisfied with training program. 25% People say they are satisfied with training program. 15% People say they are dissatisfied with training program.
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5.
yes
no
25%
75%
75% people say yes they have increment in their performance. 25% people say they dont have any increment in their performance.
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problem solveing
both
20%
50%
30%
50% people say skill base training. 30% people say problem solving. 20% people say in both areas.
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Findings
Find only 60% people are aware of MNYL before their joining. Most of the people say they are not satisfied with the recruitment process. People are satisfied with training program. Most of the people say they want commission base system with incentive. People say training plays major role in their performance. Still employees feel some improvement in training program.
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Recommendations
Max New York Life as an insurance company which has a very strong presence in India and is rapidly expanding its operations in India. After working on this project I feel that following are some of the ways in which the company can improve: Increase the Awareness of the company Still the awareness about the MNYL is less than its competitors like LIC. Bajaj Allianz etc. As only few percent of the people are secured by the insurance and still there is a great opportunity to secure the people .For this the awareness about the company and its product should be increased among the people that would help them capture a place in their minds and would help the company in recruiting agent advisors. This could be done in various ways may be through advertisements in print media and televisions, hoardings and other campaigns. Highlighting core strengths and make trust Max New York Life should try to highlight its products that would make a need be felt to general people even if they are covered by insurance. In order to do this they should highlight the core strengths of the company and its product that would help them getting more Deals as well as advisors. As company is not too old in India but its root are very deep thus company should highlight this strength and try to make trust among the people on this basis.
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Online Trainings Is training program of 16days which is mandatory for all the candidates to attend to get the IRDA license. But what I feel this is the most difficult part to retain those candidates to attend the training program because whole day is required this. Business man, housewives and all other candidates find difficulty in it. So if the training is done on line then this problem can be solved. As they can done their training program along with their work.
Launch the new policy As we are aware of LIC is the leader in insurance sector it have lowest premium plan but MNYL has costly plane which lower class people cant afford so it is important to launch new plan with low investment to capture the market in insurance sector.
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Bibliography
www. maxnewyorklife.com www. irdaindia.org www.ibef.org www.blogspot.com www.mapsofindia.com www.economywatch.com www.directories-today.com
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ANNEXURE
Questionnaire
1. Are You Aware Of MNYL Before Joining? a. Yes b. No 2. Are you satisfied with recruitment process which MYLF fallow? YES NO 3. What Kind Of Job You Prefer In Insurance? Commission Based With Incentive. Salary Based With Incentive. 4. Did You Satisfy With Training What Company Conducted Here? Highly Satisfied With Training Program. Satisfied With Training Program. Dissatisfied With Training Program. 5. Is There Any Improvement In Performance After Getting The Training? Increment In Their Performance. Dont Have Any Increment In Their Performance 6. In Which Areas Employee Needs Training? Skill Base Training. Problem Solving. In Both Areas.
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