A Project Report on

Customer Satisfaction Measurement

At

Submitted to Guru Nanak Dev University For the Partial fulfillment of the degree of Master of commerce part-II

Submitted To:Ms. Harpreet Kaur Assistant Professor Dept. of Commerce Lyallpur khalsa Jalandhar

Submitted By:Dheeraj Sachdeva Unvi. Roll No. College Roll no. 18102 Unvi. Reg No

Session 2011-12

TEACHERS CERTIFICATE

This is to certify that the project report entitled A STUDY ON

RECRUITMENT OF FINANCIAL ADVISORS IN THE MAX NEW YORK LIFE INSURANCE COMPANY LIMITED conducted by Dheeraj

Sachdeva of M.Com-II under my guidance and supervision. During the study, he found very sincere & hardworking.

DATE:...........

Ms. Harpreet Kaur

Assistant Professor Dept. of Commerce Lyallpur khalsa College Jalandhar

PREFACE
As per the direction of our course structure, we the students of M.Com II have to undergo Summer Training for the period of 8 weeks with the different commercial enterprises of the country.

M.Com II curriculum has been finding turned in such way that a student not apply the theoretical knowledge but also gain it in a practical sense. Thus objective can be attained thought application of theory tools concept & techniques of management.

Balanced, theoretical & practical knowledge are essential for every student is conceived in such a way so as to facilitates practical purpose. To procure objective the research under to the project A STUDY ON
RECRUITMENT OF FINANCIAL ADVISORS IN THE MAX NEW YORK LIFE INSURANCE COMPANY LIMITED.

Secondary data were collected from websites, and journal of Max New York Life Insurance Company Limited.

Researcher has tried to satisfy the topic of report by help of facts & finding.

ACKNOWLEDGEMENT
There are competent lecturers and guides, who bestow their fortune upon students, particularly in respective field. Words are often too weak to express the inner feelings. I am really thankful to my supervisor and guide Ms. HARPREET KAUR (Assistant professor in Commerce Deptt.) for her guidance and full co-operation in preparing each and every part of this report. Without h er support this report would have been a Dream. I am really honored working with her. I feel extremely pleased to our worthy Principal Dr Jaspal Singh
Randhawa and our H.O.D. Dr Sunil Kumar Sood who sanctioned the

authority letter that helped me in joining MAX NEW YORK LIFE INSURANCE, Panchkula. I express my sentiments of gratitude and indebtness to B ranch Manager of Max New York Life, to give me the opportunity to get summer training on A STUDY ON RECRUITMENT OF FINANCIAL
ADVISORS IN THE MAX NEW YORK LIFE INSURANCE COMPANY LIMITED.

Lastly, I am heartily thankful to all the persons who helped and cooperated with me for completion of this report. Without their help this report would not have been completed.

STUDENT DECLARATION

This is to certify that I, Dheeraj Sachdeva of M.COM. II of L.K.C College, Jalandhar have undergone Summer Training at MAX NEW YORK LIFE, PANCHKULA and have prepared the Project Report entitled A STUDY ON RECRUITMENT OF FINANCIAL ADVISORS IN THE MAX NEW YORK LIFE INSURANCE COMPANY LIMITED.

Date:

Executive Summary

The main focus of my project was on HOW TO RECRUIT FINANCIAL ADVISOR IN MAX NEW YORK LIFE INSURANCE COMPANY In this project I highlighted what are the insurance products, what are the plans? What are the benefits and how so sell them? The methodology adopted by us in selling insurance products was first segment to approach to natural market that is to relatives, Friends or Sir etc. Then next is approach their references and finally to other unknown and common people. After taking a prior appointment we approached them, interviewed them and selected them keeping in mind the criteria as per the companys requirement IRDA guidelines and also some soft attributes, which were required to be financial advisor, we also have discussed the concept of financial advisor. To sum up, there has been sustained efforts and dedication involve to make this study a comprehensive market study but at the same time the researcher is open to any kind of suggestion that further needs to be considered in respect of the cause of his work.

INDEX
Sr. No. Chapter

1. INTRODUCTION TO TOPIC 2. RESEARCH METHODOLOGY Objectives of study Source of Data collection Limitations of study 3. Company Profile 4. DATA Analysis and Interpretations 5. Finding and suggestions 6. Conclusion BIBLIOGRAPHY Questionnaire

INTRODUCTION

INTRODUCTION OF INSURANCE
Insurance is an integral part of everyones life in present scenario. Insurance or assurance is a device for indemnifying or guaranteeing an individual against loss. Reimbursement

Is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called PREMIUMS. Payments for an individual loss, divided among many, do not fall heavily upon the actual loser. The essence of the contract of insurance, called a POLICY is mutuality.

The entity that is transferring the risk, which may be an individual or association of any type, including a government or government agency-, is called INSURED. The entity accepting the risk is called the INSURER. The agreement between the two by which the risk is transferred is called the POLICY. This is a legal contract that sets out exactly the terms and conditions of the coverage. The fee paid by the insured to the insurer for assuming the risk is called PREMIUM. This is usually determined by the insurer to fund estimated future claims paid, administrative costs and profits.

The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks. The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral hazards in relation to applicants. Physical hazards include those dangers, which surround the individual

or property, jeopardizing the well being of the insured. The amount of the premium is determined by the operation of the law of averages as calculated by the actuaries. By investing premium payments in a wide range of revenue-producing projects, insurance companies have become major suppliers of capital and they rank among the nations largest institutional investors.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY:MEANING OF RESEARCH: Research is an art of scientific investigation. Research means a careful investigation or inquiry specially through search for new facts in any branch of knowledge.

According to Clifford Woody: Research comprises defining and redefining problems, formulating, hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research means the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in form of solutions towards the concerned problem or in certain generalization for some theoretical formulation. The project titled, as MARKET CREDIBILITY OF MAX NEW YORK LIFE INSURANCE AMONG OTHER PRIVATE LIFE INSURANCE COMPANIES required research to be done. The market credibility required the collection of Primary Data as well as the Secondary data. The credibility literally means the market value and the market positioning of a particular brand or a company among its competitors. Max new york life life insurance is one of the private life insurance companies, which came into

existence in 2001. Market credibility can be checked by seeing the awareness of people about a particular company and its share in the market. Comparing the products of term policies as well as the endowment policies.

Primary data : Questionnaire filled by people interviewed. Secondary data: (i) Data collected for companies from various sites
available of the life insurance companies. (ii) Data collected from newspapers and NAVs of the various policies of Max new york life life insurance and other private life insurance companies.

OBJECTIVES OF STUDY
1. To gain familiarity with a phenomenon or to achieve new insights into it. 2. To portray accurately the characteristics of a particular individual tuation or a group. 3. To determine the frequency with which something occurs or with which it is associated with something else. 4. To test a hypothesis of a casual relationship between variables. 5. To discover answers to questions through the application of scientific procedures.

SOURCES OF DATA RESEARCH

1. DESCRIPTIVE RESEARCH: -

It includes surveys and fact-finding enquiries of different kinds. The main purpose of descriptive research is description of the state of affairs, as it exists at present.

2. ANALYTICAL RESEARCH: -

Analytical research has to use facts or information already available and analyze these to make a critical evaluation of the material.

3. APPLIED RESEARCH: -

Applied research aims at finding solution for an immediate problem facing a society or an industrial/business organization The certain aim of applied research is to discover a solution for some pressing practical problem.

4. FUNDAMENTAL RESEARCH: -

It is mainly concerned with generalization and with the formulation of a theory. Basic research is directed towards finding information that has abroad base of application and adds to the already existing organized body of scientific knowledge.

5. QUANTITATIVE RESEARCH: -

It is based on the measurement of quantity or amount. It is application to phenomena that can be expressed in terms of quantity That can be expressed in terms of quantity.

6. QUALITATIVE RESEARCH: -

It is concerned with qualitative phenomenon that is phenomenon relating to or involving quality or kind.
7. CONCEPTUAL RESEARCH: -

Conceptual research is that related to some abstract ideas or theory. Philosophers and thinkers to develop new concept or to reinterpret existing once generally use it.

8. EMPIRICAL RESEARCH: -

Empirical research relies on experience or observation alone, often without due regard for system and theory. It is database research, coming up with conclusions, which are capable of being verified, by observation or experiment.

LIMITATIONS OF THE STUDY

Inspite of best efforts there are certain limitations in this study that is In order to maintain trade secrets sometime management hesitate in providing information. The accuracy of the result was also limited to the reliability of methods of investigation etc. The area of research was limited to IC1CI bank because the training was only for one month. Since sample size is small results may not represent the universe.

COMPANY PROFLIE

COMPANY PROFILE

THE COMPANY Max New York Life Insurance Company is a joint venture between two leading conglomerates, Max Limited, one of largest manufactures of motorcycles and scooters in the world of Germany one of the largest

insurance companies. Max New York Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in India.

Max new york life insurance Shareholder Capital Base stands at Rs. 500 crore with MAX Limited of Germany holding 74% and 26% stake respectively. It is the largest private player in the Insurance Industry in India with a market share of around 34% amongst the private companies and second to LIC. The total market share of Max New York life insurance as of 31st March 2006 is at 12%.

During the financial year 2005-2006, Max New York life insurance has sold over 13 lakh policies and collected about Rs. 4433 crore as premium income. Whopping growth of 216% for the FY 2005-06, Assets under management of Rs. 3324 Crore. It has paid up Rs 925 crores with IRDA as a caution deposit. Max New York life insurance has insured lives for sum assure of over Rs 8500 crore.

MAX NEW YORK LIFE INSURANCE

Max new York life insurance, the flagship company of the Rs. 8000 crore max group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.

A household name in India, Max New York has a strong brand image & brand loyalty synonymous with quality & customer focus. With over 15,000 employees, the company is a Rs. 4000 crore auto giant, is the largest 2/3wheeler manufacturer in India and the 4th largest in the world. AAA rated by Crisil, Max New York has been in operation for over 55 years. It has joined hands with New York Life to provide the Indian consumers with a distinct option in terms of life insurance products.

As a promoter of Max New York life insurance Life Insurance Co. Ltd., Max New York has the following to offer Financial strength and stability to support the Insurance Business. A strong brand-equity. A good market reputation as a world class organization. An extensive distribution network. Adequate experience of running a large organization. A 10 million strong base of retail customers using Max products. Advanced Information Technology in extensive use. Experience in the financial services industry through Max New York Finance Ltd

MAX LIFE INSURANCE

Founded in 1890 in Berlin, New York Life is now present in over 70 countries with almost 174,000 employees. At the top of the international group is the holding company, Max New York, with its head office in Munich. Max New York is in the business of General (Property & Casualty)

Insurance; Life & Health Insurance and Asset Management and has been in operation for over 110 years.New York Life is one of the largest global composite insurers with operations in over 70 countries. Further, the Group provides Risk Management and Loss Prevention Services. Max has insured most of the world's largest infrastructure projects (including Hongkong Airport and Channel Tunnel between UK and France), further New York Life insures the majority of the fortune 500 companies, besides being a large industrial insurer, Max has a substantial portfolio in the commercial and personal lines sector, using a wide variety of innovative distribution channels.

MAX LIFE INSURANCE - A GLOBAL FINANCIAL POWERHOUSE

Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr. 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. - AUM of Rs.51,96,959 cr. 12th largest corporation in the world 49.8 % of global business from Life Insurance

 Established in 1890, 110 yrs of Insurance expertise

New Unit Gain Plus

It is a unit linked plan of Max New York life insurance that takes care of a persons wealth by providing flexibilities in savings and investments and options for protection needs.

HOW TO GET STARTED?

This gets started by opening an account with a minimum premium of:

Rs 15000/- p.a. for annual mode. Rs 7500/- p.a. for half-yearly mode. Rs 5000/- p.a. for quarterly mode.

TITLE OF THE STUDY: MARKET CREDIBILITY OF MAX NEW YORK

LIFE INSURANCE AMONG OTHER PRIVATE LIFE INSURANCE COMPANIES.

OBJECTIVES: Working of the unit-linked plans. Comparative analysis of the life insurance products available in the market. Research methodology used : Primary data collected by visiting the leading life insurance companies like LIC, ICICI Prudential, Aviva, Birla Sun Life Insurance, HDFC Standard Life, Tata AIG Educare, OM KOTAK Mahindra. Data Collection: (a) Questionnaires filled by various income groups. (b) Internet (by searching about the investment plans of other companies). Action plan: (a) Firstly, collecting information from newspapers & magazines like Economic Times, Financial Express, Business India, The Times Of India, Internet. (b) Secondly, getting the questionnaires filled (about 50) to find out which company they prefer for life insurance policies, what are the specific features of their policies, whether they treat insurance as an investment option or a security option.

(c) Finally, analyzing the data collected and comparing the insurance companies to show the market credibility of Max new york life insurance among other private life insurance companies.

DATA ANALYSIS AND INTERPRETATION

The premiums paid are invested in fund/funds of your choice (depending on the allocation rate) & units are allocated depending on the price of units for the fund/funds. The value of your policy is the total value of units that you hold in the fund/funds. The insurance cover charges are deducted through monthly cancellation of units. The fund Administration Charge and Fund Management Charge are priced in the unit value.

BENEFITS
DEATH BENEFIT: In case of unfortunate death the beneficiaries are entitled to the Sum Assured less withdrawals or the bid price of units, whichever is higher? If the age of the life assured is less than 7 or above 70, then the bid price of the units is paid.

LIQUIDITY OPTION: There is no maturity date for this plan. . Anytime after payment of 3 full years premiums, you may withdraw the money, depending on your requirements, through partial or complete surrender of units.

OPTIONS a. Choice of investment plan:

Max New York life insurance offers you a choice of 4 funds. You can choose to invest fully in any one fund or allocate your premiums into the various funds in a proportion that suits your investments needs. All the

funds will be managed by the asset managers of Max New York life insurance. EQUITY FUND: This fund provides the scope of high appreciation over a long term. The fund will primarily invest in equities and is expected to match returns given by NSE NIFTY. This fund will invest at least 90% in equities and maximum 10% in cash. This Fund Investment is in NSE (National Stock Exchange) NIFTY i.e. top 50 companies. DEBT FUND: This fund provides the scope for steady returns at low risk through investments in high quality fixed income securities. This fund will be invested fully in debt instruments. This Fund Investment is in Govt. Bonds for e.g. IDBI Bonds, Mutual Funds etc. BALANCED FUND: The balanced is primarily for those who prefer mix of steady returns and growth. The balanced fund will invest 30% to 50% in the equity fund and 50% to 70% in the debt fund. This Fund Investment is in Govt. and Private Companies. CASH FUND: The cash fund will invest conservatively in money market & short term investments to ensure that return on investments shall never be negative. 100% of this fund will be invested in money market instruments. The price of the units in this fund will never to go down. This Fund Investment is in Call Money Market (operates on the need for cash on hourly basis).

b. Choice to switch between investment options:

Policyholder can switch units from one fund to another. The amount switched should be in multiples of 1000, and the minimum switching amount is Rs. 5000 or the fund value which ever is lower. Three free switches would be allowed every year. Subsequent switches would be charged @ 1% of the switch amount or Rs. 100 whichever is higher.

c. Choice of a Top-up:
The policyholder will have the option to increase the regular premium amount at any time. The additional single premium would be treated as a single premium top-up every year. The policyholder will also have the option to increase the amount invested through top-ups.

FLEXIBILITIES

a. Increase the death benefit:

The death benefit may be increased without any underwriting every 3rd year upto 4 times. The increase will be allowed upto 25% of the original sum assured or Rs. 1,00,000. Whichever is lower, each time? However, the maximum age till which this option will be allowed is the attained age of 45yrs of the policy holder. Apart from the increase in death benefit every 3rd year without underwriting, the policyholder may choose to increase the death benefit subject to the maximum of Comprehensive Accidental Protection, depending on his/her changing needs. This increase will be subject to underwriting and the cost of underwriting shall

be deducted through cancellation of units. The option to increase the death benefit with underwriting ceases at age 60.

b. Decrease the death benefit:

Decrease in the death benefit will be allowed any time, subject to the minimum death benefit being maintained. The death benefit once reduced can be increased subsequently only subject to underwriting.

c. Premium holiday option:

Customers can opt to pay premiums at their convenience after payment of full 3years premiums. Thereafter, when premium due are not paid, the policy will stay in force with full benefits so long as there is enough units available for charging the cost of insurance and additional benefits after deducting all applicable charges.

d. Flexible Contribution:
The person can increase/decrease the annual contribution. The maximum decrease in the contributions can be upto 20% of the initial contribution chosen by the person at the time of inception of the policy. However, in no circumstances can the contribution be reduced to below the minimum premium allowed under the plan at that time, or 80% of the initial chosen contribution, whichever is higher. The person has the flexibiltity to increase his/her contribution without any limits. Any such increase or decrease in contribution will only be allowed on policy anniversaries.

OTHER BENEFITS

a. Additional Protection for You and Your Family:

You have the option to add the following four additional benefits, providing total protection against uncertainties. Accidental Death Benefit. Accidental Permanent Total/Partial Disablement Benefit. Critical Illness Benefit (CI). Hospital Cash Benefit (HC).

b. Surrender value
This policy acquires a surrender value after 3 complete years of the policy, provided the 1st 3 years premiums are paid. The Surrender Value is 100% of the value of investments.

c. Tax Benefits
Value of Units cancelled for Critical Illness and Hospital Cash Benefit is eligible for tax relief under Section 80(D). Death Benefit and Withdrawals (partial or full) is tax free under section 10(10) D of the Income Tax Act, if the premiums paid in any year does not exceed 20% of the Sum Assured or Fund Value, whichever is higher. Incase of change in any tax laws relevant to the policyholder or the fund performance, the same will be applied as per regulations prevailing at the point of time.

AGE LIMITS Age at entry: Minimum age of entry: 0 years (Completed years) Maximum age of entry: 60 years (Completed years)

CHILD CARE Taking care of a child is perhaps the most important job a parent can have. It is but natural that you would like to give your child your best, and therefore, this is the time when careful financial planning can help you fulfill the aspirations that you have for your children. The Max new york life insurance Child Care Solutions help you to enjoy the joys of parenthood responsibly, with the reassurance of a secure future for your child.

CHILD CARE PLAN OFFERS

Child Care plan is a children money back plan with profit. Max new york life insurance Child Care offers a wide array of solutions that allows you to plan for your childs future by providing you with as many as 4 distinct and unique options.

1. Child Care 21 2. Child Care 24 3. Child Care 21 Plus 4. Child Care 24 Plus

START OF LIFE BENEFIT

This is a unique feature of Max new york life insurance Child Care 21 Plus & 24 Plus. These packages offer you the choice of providing a unique Start of Life Benefit for your child. For a nominal amount, an additional Sum Assured subject to a maximum limit of Rs.10 Lacks will become payable to enable the child start hi/her professional life smoothly, in case of an unfortunate death or Accidental Permanent Total Disability of the Policy holder during the term of the policy. This benefit will not be available in the event of accidental permanent total disability after age 65 of the policy holder.

IN-BUILT BENEFITS
A) PREMIUM WAIVER BENEFIT:

In case of death or Accidental Total Permanent Disability of the policyholder during the premium payment term, all future premium payments are waived. This benefit will not be available in the event of accidental permanent total disability after age 65 of the policy holder.

B) FAMILY INCOME BENEFIT:

In case of death or accidental total permanent disability of the policy holder during the term of the policy, a monthly income benefit of 1% of the sum assured (12% per annum) becomes payable till the end of the policy term (subject to a maximum of Rs. 1,20,000 per annum). This benefit will not be available in the event of accidental permanent total disability after age 65 of the policy holder.

C) OPTION TO PURCHASE FURTHER INSURANCE AT MATURITY: For ensuring continuity of the valuable insurance protection that the child was enjoying, we offer the child and option to purchase a with profits endowment or an equivalent plan from Max new york life life insurance Life Insurance Company for twice the amount of face value of this policy, without any medical examination, on the premium rates prevailing at that time. (The application must be made at least 6 months prior to maturity of this policy).

PAYOUT STRUCTURE
For Child Care 21 and Child Care 21 Plus: The minimum guaranteed payouts are as follows:

Policy Anniversary following completion of Age Payout as % of Sum Assured

18 20% + Accrued Bonuses

19 20 21

25% 25% 35%

For Child Care 24 and Child Care 24 Plus: The minimum guaranteed payouts are as follows:

Policy Anniversary following completion of Age Payout as % of Sum Assured

18 25% + Accrued Bonuses

20 22 24

25% 25% 40%*

refers to probable increase in payout based on higher interest during the payout period.

DEATH PAYOUT
In the event of unfortunate death of the child during the policy terms, the payouts shall be as under

Age Below 7 years Above 7 years and below 18 years Above 18 years and below 24 years

Payout Premiums paid will be refunded without interest and the policy will terminate. Sum assured with accrued bonuses will be paid and the policy will terminate. Outstanding payouts will be paid as one lump sum and the policy will terminate.

HOW TO GET STARTED?

This gets started by opening an account with a minimum premium of: Rs. 5000/- p.a. for annual mode. Rs. 2500/- p.a. for half-yearly mode. Rs. 2000/- p.a. for quarterly mode. Rs. 700/- p.a. for monthly mode.

AGE LIMITS
Child Care 21 and Child Care 21 Plus Child Care 24 and Child Care 24 Plus

Eligibility Conditions

Minimum age of the policyholder Maximum age of policyholder Minimum age of child Maximum age of child Minimum Premium Minimum Premium Payment Term Maximum Premium Payment Term

20

20

50 0 13 Rs.4850 5

50 0 13 Rs.4850 5

18

18

Maximum age of child at 21 maturity Maximum Sum Assured Rs. 50,00000

24 Rs. 50,00000

NEW UNIT GAIN PLUS Vs LIC BIMA PLUS

FEATURES

NEW UNIT GAIN PLUS

LIC BIMA PLUS

Age Term

0-60 years

12-56 years

Choice rests with a minimum 10 years period of payment of 3 years. Minimum sum assured is 5 Maximum limit up to times the premium paid. Rs. 2 lakhs. Maximum sum assured is as per the limits set per age bands. Value of Fund at Bid Price Bid value of the fund units along with maturity bonus at 5% of the Sum Assured. Death during the 1st 6 months30% of SA + value of units, next 6 months 60% of SA + value of units. Death after 1st year-SA +value of units. Death during the 10th year- 105% of SA + value of units.

Sum Assured

Survival Benefit

Death Benefit

Higher the Sum Assured or value of units. However, the value of units will treat as death benefit if the Life Assured is > 7 years or < 70 years.

Withdrawal Benefit

Partial or withdrawals at after3rd year.

complete Premature withdrawal allowed bid price 1 year(after applying bid-offer spread).

Contribution

Minimum: Rs. 15,000 p.a

Not specified. in Not available.

Flexibility to Only an increase increase/decrease contribution is allowed. contribution Investment options

Equity Fund, Debt Fund, Balanced, Secured & Risk. Balanced Fund, Cash Fund. Not available.

Increase/Decrease Available. of death benefit Bonus Points Not Available.

Not available.

Top-up

Available.

Available (charges: 1.5% of the top-up).

Switch

3 free switches every policy No free switches. Cost of year. Subsequent switches switches is 2% of the fund would be charged @1% of value. switch amount or Rs. 100 whichever is higher.

Surrender Value

A selling/purchase price spread of 5% will be applicable from the 3rd year onwards.

Partial surrender up to 50% of bid value of units allowed after 3 years from the date of commencement.

Automatic Cover Available after the 3rd policy Not available. Continuance year.

Initial charge

Charges : Not disclosed st nd 1 Year- 24% ; 2 Year-3% 3rd Year- 3%. No charges grom 4th year onwards.

Admin charges

Annual admin. Charges of 1.25% of net assets.

Other charges

Transaction charge of 0.5% Not applicable. of the equity investment & 0.1% of the debt investments. The bid-offer spread is 5% of Not applicable. the offer price.

Bid-offer spread

Fund management Annual investment charge of Charge 1% p.a. of net assets. 1% of the fund per annum Riders ABR/ ADBR / CI/Hospital In Built Accident Benefit. Cash Benefits.

CHILD CARE Vs SMART KID (ICICI Pru.

FEATURES CHILD CARE SMART KID

Plan Type

Anticipated Endowment.

Anticipated Endowment.

Min Max Term Matures when the child reaches theMatures between 22-25 years of age of 21 or 24. Premium paid till child. Term is 10-25 tears. child reaches age 18. Min Max Age 1-13 Years. of Child 0-12 Years.

Min Max Age 20-50 Years. of Parent

20-60 Years.

Payment Modes Life Assured

All regular premiums.

All regular premiums.

Child is insured. But premium Parent. waiver rider available for parent. Child in 2 structures : 1. Money is paid on the 18th, 19th, 20th and 21st year (20%+25%+25%+35%) 2. Money is paid on the 18th, 20th, 22nd or 24th year (25%+25%+25%+40%) Child. 2 structures : 1. When the child reaches the criteria milestones ( Xth, XIIth, Graduation, Post Grad.) 2. Last 4 year before maturity.

Beneficiary Flexibility benefit structure

Benefit-Death of Parent

None if premium waiver rider is not SA is paid up front. Child gets the purchased. Guaranteed payments as chosen earlier.All future premiums are waived off.

Benefit- Death of Child

< 7 years Premiums refunded without interest >7 years & <18

Policy continues as it is.

Years SA + Bonus > 18 years Outstanding payments as a lump sum. Bonus Additions & Not guaranteed. Paid after the end of3.5% of SA compounded the premium paying term. annually for the1st 4 years, annual bonuses declared thereafter. Family Income Rider/ Premium Waiver Rider. ADBR / IBR

Riders available Surrender Value

Available after 3 premium paying Available after 3 premium years. paying years.

CHILD CARE Vs HDFC CHILD PLAN

FEATURES CHILD CARE

HDFC CHILD PLAN

Plan Type Min Term

Anticipated Endowment.

Endowment.

Max Matures when the child reaches the 10-25 Years. age of 21 or 24 Premium paid till child reaches age 18.

Min Max 0-13 Years. Age of Child Min Max 20-50 Years. Age of Parent Payment Modes All regular premiums. 18-60 Years.

All regular premiums.

Life Assured Child is insured. But premium Parent. waiver rider available for parent. Beneficiary Child. Child. The customer has to choose amongst 3 separate plans, with deferring premiums based on the plans.

Flexibility in 2 structures : benefit 1. Money is paid on the 18th, 19th, structure 20th and 21st year (20%+25%+25%+35%) 2. Money is paid on the 18th, 20th, 22nd or 24th year (25%+25%+25%+40%).

BenefitNone if premium waiver rider is not purchased. for either one of Opt Death of the plans: Parent 1. SA+ Bonuses paid upfront 2. SA + Bonuses paid on maturity. 3. SA paid on death & SA + Bonuses paid on maturity.

BenefitDeath of Child

< 7 years Premiums refunded without interest >7 years & <18
Years SA + Bonus > 18 years Outstanding payments as a lump sum

Policy continues as it is.

Bonus & Not Guaranteed. Paid after the end of the Additions premium Paying term.

Simple Reversionary Bonuses paid maturity.

till

Riders available Surrender Value

Family Income Rider/ Premium Waiver Rider.None.

Available after 3 premium paying years.

Available.

CHILD CARE Vs OM KOTAK CHILD ADVANTAGE

FEATURES CHILD CARE OM KOTAK CHILD ADVANTAGE Endowment.

Plan Type Min Term

Anticipated Endowment.

Max Matures when the child reaches the age of 21 10-30 Years. or 24. Premium paid till child reaches age 18. 0-17 Years.

Min Max 1-13 Years. Age of Child Min Max 20-50 Years. Age of Parent Payment Modes Life Assured All regular premiums.

All regular premiums.

Child is insured. But premium waiver Parent. rider available for parent. Child

Beneficiary

Child. One structure only. Flexibility in 2 structures : Lump sum payment th th th benefit 1. Money is paid on the 18 , 19 , 20 made on maturity st structure and 21 year (20%+25%+25%+35%) which consists of SA th th nd 2. Money is paid on the 18 , 20 , 22 or or accumulated th 24 year (25%+25%+25%+40%). bonuses, whichever is higher. If the child is 18(then BenefitNone if premium waiver rider is not Sa or Accumulation Death of purchased. paid, whichever is Parent higher. Else total premium or SV is paid whichever is higher).

BenefitDeath Child

of

< 7 years Premiums refunded without interest >7 years & <18
Years SA + Bonus > 18 years Outstanding payments as a lump sum

Policy continues as it is.

Bonus & Not guaranteed. Paid after the end of the Additions premium paying term. Not guaranteed.

Riders available

Family Income Rider/ Premium Waiver Rider.

ADBR, WOP.

Surrender Value

Available after 3 premium paying years.

Available.

CHILD CARE Vs TATA AIG EDUCARE (18 YEARS)

FEATURES SMART KID Plan Type Anticipated Endowment.

TATA AIG EDUCARE Regular premium endowment planPositioned as a Child Plan.

Min Term

Max Matures when the child reaches the Matures when the child is Age of 21 or 24. Premium paid till 18 years of age. Child reaches age 18. 30 days to 8 years of age.

Min Max 0-13 Years. Age of Child Min Max 20-50 Years. Age of Parent Payment Modes All regular premiums.

Not applicable.

All.

Child- till the child Life Assured Child is insured. But premium reaches the age 18 , the waiver rider available for parent. parent will be the policyholder. At 18, the policy will be transferred in the childs name. Beneficiary Child Child.

Flexibility in 2 structures : benefit 1. Money is paid on the 18th, 19th, Single payment structure. structure 20th and 21st year 20%+25%+25%+35%)

2. Money is paid on the 18th, 20th, 22nd or 24th year (25%+25%+25%+40%)

BenefitNone if premium waiver rider is not Policy lapses in case payer Death of purchased. benefit rider is not opted Parent for. BenefitDeath of Child

< 7 years Premiums refunded without interest >7 years & <18

The proceeds are paid to the parent.

Years SA + Bonus > 18 years Outstanding payments as a lump sum Bonus & Not guaranteed. Paid after the Additions End of the premium paying term. Guaranteed 10% of SA paid at maturity or death provided the policy has been in force for 10 years. Plus a guaranteed education benefit of 20% of the SA paid at the maturity. Rider-

Riders available

Family Income Waiver Rider.

Rider/

Premium Payor Benefit premium waiver.

Surrender Value

30% of the premiums paid(excluding the 1st premium & extra premium Available after 3 premium paying , if any) provided 3 annual years. premiums have been paid in full.

FINDINGS AND ANALYSIS There were about 10 questions in the questionnaire on the basis of which the findings were done and the analysis was made. The responses to the questions in the questionnaire are presented in the form of statistical tools such as pie charts and bar charts. There were 50 people being interviewed from different income groups and age groups.
1. Do you have a life insurance policy? If yes, then of which

company/companies?
PEOPLE HAVING INSURANCE POLICIES

28%
Yes

72%

No

% OF INSURED POPULATION IN VARIOUS COMPANIES

Bajaj Allianz

3%

0% 5% 6% 28% 17%

LIC Max Newyork ICICI Pru TATA AIG

8%

33%
Birla sun life AVIVA

Out of the 50 insurable people interviewed nearly 72% people have taken insurance policy. Out of this population being interviewed nearly 32 % had LIC policy, 28 % had Max new york life insurance, followed by ICICI Pru. (17 %), Max New York Life (8 %) , TATA AIG(3%), Birla Sun Life (6%), Aviva and HDFC having 6% shares each in the interviewed population.

2. Do you see insurance policies as an investment alternative or a security option?

PURPOSE OF INSURANCE

22%
Investment Alternative Security Option

78%

Out of the 50 people interviewed 78 % people term/see insurance policy as a security option while only 22 % see it as an investment option.

3.Please rank the following as per your preference to investment in a financial year:

INVESTMENT PREFERENCES IN VARIOUS ALTERNATIVES

20 18 16 14 12 10 8 6 4 2 0
Shares Mutual Funds Life insurance Government Bonds

(No. of people)

(Investment alternatives)

Out of 50 being interviewed, 18 people invest in life insurance policies, 16 people invest in shares, 12 people invest in mutual funds and 4 people invest in government bonds.

4.What is your criteria/criterion to select a particular insurance company and a scheme?

CRITERIA FOR SELECTING AN INSURANCE COMPANY

20 20 15 8 10 5 0 15

5
2

Security

Time span

Market share

Return

All of the above

Out of 50 people being interviewed, 15 people select an insurance company on the criterion of security, 5 people select an insurance company on the criterion of time span, 2 people select an insurance company on the criterion of market share, 8 people select an insurance company on the basis of return and 20 people select an insurance company on the basis of all the above mentioned reasons.

5. Rank the life insurance companies in the your order of preference :

FIRST PREFERENCE OF PEOPLE AMONG PVT. LIFE INSURANCE COMPANIES

Max New york

16% 14% 24%

46%

ICICI Prudential Max Newyork HDFC

Out of 50 people interviewed, 46% had Max New York life insurance as their first preference for a pvt. Life insurance company followed by ICICI Prudential having 24 % preference followed by HDFC Life insurance having 16% market share and lastly Bajaj Allianz.

6. Do you think that private life insurance companies are as safe as LIC for taking a policy?

PERCEPTION OF PEOPLE ABOUT SAFETYNESS : LIC Vs PVT. LIFE INSURANCE COMPANIES

Yes 38% No 62%

Yes No

Out of 50 people being interviewed, 62 % of people do not find private life insurance companies to be safe for buying a life insurance policy whereas 38 % people find them safe for buying a life insurance policy from a private life insurance company.

7. Max New York life insurance is quite a famous company because:

FAMOUSNESS REASONS OF BAJAJ ALLIANZ

POLICIES

16%
PARENT COMPANIES

40% 20%
MKTG. AND ADV. STRATEGIES

24%
All OF THE ABOVE

Out of 50 people interviewed, 16 % people perceive policies of Max New York life insurance make it a famous company while 20% think it is due to the parent companies, 24% take it as marketing and advertising strategies which appeal to the mass population while 40 % think it is all due to the above mentioned reasons that MAX NEW YORK LIFE INSURANCE is a famous company.

8. Are you satisfied with your existing policy/policies?

SATISFACTION LEVEL OF POLICY HOLDERS

Not satisfied 31%

Satisfied Not satisfied

Satisfied 69%

Out of 50 interviewed, 69% of the people were satisfied with their life insurance policies while only 31% of people were not satisfied.

ANALYSIS
Analysis of a research project is based on the primary data and secondary data which is being collected from various sources to take out some conclusions of the research study being taken. In my project my purpose was to find the market credibility of Max new york life insurance among various other private life insurance companies. For this a population of 50 people was being interviewed having different lifestyles, different incomes, different occupations yet the point which was kept in mind was that this interviewed population was insurable.

The questionnaire filled up by people revealed that nearly 36 people i.e. about 72% people have life insurance policies. This is due to the fact that people now have started realizing that life is very uncertain and it is advisable to have a life insurance policy. Nearly, 24 % people had LIC policy and 20% people have Max new york life insurance as their life insurance policy. The reason that people have more LIC policy is that it is an old company for life insurance and secondly it is a government controlled organization. Secondly, when enquired about the perception of people about insurance policies, nearly 39 people i.e. about 78% people see it as a security option for their families financially so that if they are not alive some day, their family does not go in vain. While 11 people i.e. about 22% people see it an investment option to save taxes and get returns. Thirdly, when asked about their investments in various alternatives, 18 people gave life insurance

policies their first preference for investment whereas 16 gave shares as their first preference followed by mutual funds (12) and lastly government bonds. This clearly shows that people are risk averse to a large extent as largest numbers of people like to invest in life insurance policies to make sure that there is security. Fourthly, when they were asked about the criterion of choosing a life insurance company 15 people replied that they see the security point of view to buy a life insurance company. 5 people chose time span as the criteria to choose a life insurance company. 2 people chose the market share of the company as the preferred criteria of choosing the life insurance company. 8 people chose the returns of life insurance companies as the criteria for choosing a life insurance company. Nearly, 20 people chose all the above mentioned reasons to choose a life insurance company. When the sample population was interviewed about their 1 st preference among the pvt. Players, nearly 46 % people chose Max new york life insurance as the 1st insurance company, 24 % people chose ICICI Prudential as the 1st preference, and 16 % chose HDFC as the 1st insurance company and 14 % people chose Birla Sun life as the 1 st preferred company. When sample size was asked about safety ness of an insurance policy as compared to LIC policy nearly 62 % people replied that they do not find private life insurance companies as safe as LIC, this is due to the fact that LIC had monopoly into life insurance till 2000. Only after 2000, private companies have come in the field of Life Insurance Company. Proceeding further, when sample population

was asked to recognize the punch line of Max new york life life insurance nearly 60 % of the population was able to recognize the punch line of Max new york life life insurance which clearly indicates that Max new york life insurance is a well known life insurance company among the people. Followed by it, when sample size was interviewed about the reasons of famousness of Max new york life insurance 16 % of people chose its policies as the reason for its famousness, 20% people chose its parent companies as the reason for its popularity, 24 % agreed for its marketing and advertising strategies to be the prime cause of its popularity among masses. Whereas 40 % population agreed to all of the above mentioned reasons to be causes of the popularity of Max new york life insurance. When asked about the satisfaction with the existing insurance policies nearly 69% people said that they are satisfied with their policy whereas only 31% people were not satisfied with their policy. They wanted the additional features of transparency about the returns after when they have stopped paying the premiums. Also they wanted higher rate of returns at the end of payment of premiums.

DIFFICULTIES FACED

Following were the difficulties faced during the completion of project:

Non filling up of certain questions of the questionnaire which led to

the cancellation of that particular questionnaire.

Non understanding of certain parameters in the questionnaire. Taking a sample size of 50 people does not reflect the mindset of all
kinds of people from different backgrounds, different age groups and income groups.

Again research study of 2 months is a time constraint and covering

whole of Delhi population by taking a sample size of 50 is not feasible.

FINDINGS & SUGGESTIONS

MAX NEW YORK LIFE INSURANCE, in the present scenario is growing at an aggressive pace. The company does a lot of survey & analysis in the market to discover customers needs & expectations & tries to improvise on its existing market linked plans along with insurance policies. In addition to this , the company from time to time keeps on introducing various new policies & tailor made plans exclusively to cater peoples financial needs. This has enabled Max new york life insurance to become market leader in the sector of insurance & investment companies since 2001 when it came into existence. Since, now many other companies are joining the field of insurance & investments, it will be necessary for Max new york life insurance to vigorously pursue & update its survey & analysis policy to remain market leader. Simultaneously, it should discover & rediscover its strength by introducing new plans better suited to the people at large. India is a very big market & it can provide sustenance to all the companies in the field of insurance & investments but to remain one of the leading companies, Max new york life insurance has to adopt new strategies earlier than others. This could include widening the distribution networks to all parts of the country & catering to every income group. Furthermore, it can improvise on its advertisements & promotion campaigns by becoming more appealing & making them touches the hearts of millions & billions of Indians who are the hot prospects. Lastly, the students in the professional courses, apprentices, trainees may be good targets to approach in times ahead.

CONCLUSION

CONCLUSION
The research project titled as MARKET CREDIBILITY OF MAX NEW YORK LIFE INSURANCE AMONG OTHER LIFE INSURANCE COMPANIES enabled to understand the competition among the various life insurance companies which have entered Indian market of life insurance after 2000 when private life insurance companies were allowed to enter the Life insurance sector in India. Max new york life insurance is one of the companies in the private sector which are doing exceptionally good in this sector due to their policies to which people find very attracting according to their needs. When people were interviewed about the first preference among the private life insurance companies nearly 46% replied for Max new york life insurance, this clearly indicates that Max new york life insurance is quite a household name. The reasons for this are many like it is a company with very strong brand names: Max New York Life Insurance which is the no. 1 Automotive Manufacturer in India also Allianz AG is 3 rd largest life insurance company in the world. The market share of Max new york life insurance also around 34% among private life insurance companies which is quite high among private life insurance companies. It is only second to LIC in the life insurance sector. But if there are people accepting Max new york life insurance, there are people who are still hesitant to take up private insurance companys policy this is due to the fact that LIC is a government organization. It can be seen from the study that people have started recognizing Max new york life insurance as a life insurance and hence it will grow at a much faster pace in the future.

BIBLIOGRAPHY

BIBLIOGRAPHY
Philip Kotlar, Marketing Management, New Delhi, Pearson Education (P) Ltd., Indian Branch, 2004. C.R. Kothari, research Methodology, New Delhi, New Age International (P) Ltd.

WEBSITES

www.maxnewyorklife.co.in www.icici.com www.lic.gov.in www.hdfc.com www.kotak.com www.birlasunlife.com www.aviva.com

QUESTIONNAIRE

QUESTIONNAIRE FOR CUSTOMER: Please tick any one 1. How would you rate Max New York Life services? Excellent Good Fair Poor

2. Please tick any one: (a) Handling of complaint calls Good Fair Poor

(b) Response time Soon Late

(c) Turn around time More Moderate Less

(d) You through your work in single visit? Yes No

(e) Knowledge of the personal banker ? Good Fair

3. Do you find any gap between the services expected and services delivered? Yes No

If yes, then why? _________________________________________________ 4. What is the overall level of satisfaction with Max New York Life services? Very high High Moderate Low

5. Improvements and suggestions

QUESTIONNAIRE FOR CUSTOMER: 1.Are you aware of the Max New York life Services? Yes No

2. Which one of the following factors influences you most while taking the decision?

(Please tick the appropriate box as per your preference)

A. Price

B. service / Maintenance cost

3. Would you recommend INSURANCE with Max New York life?

Yes

No

4. How do rate the experience with Max New York life service from the Max New York life employee? Excellent Good Fair Poor

If poor, why? _____________________________________________________

5. How do you rate the submission of: Service support Prompt Delayed

6. How do you rate the Maintenance cost charged by our company? High Moderate Low

7. Improvements and suggestions: