max new york lic - child plan

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A Project on child plan INSURANCE INDUSTRY India Insurance Industry: - New Avenues For Growth With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs.450 billion (US$10 billion). According to government sources, the insurance and banking services’ contribution to the country's gross domestic product (GDP) is 7% out of which the

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Page 1: Max New York Lic - Child Plan

A Project on child plan

INSURANCE INDUSTRY

India Insurance Industry: - New Avenues For Growth

With an annual growth rate of 15-20% and the largest number of life

insurance policies in force, the potential of the Indian insurance

industry is huge. Total value of the Indian insurance market (2004-

05) is estimated at Rs.450 billion (US$10 billion). According to

government sources, the insurance and banking services’

contribution to the country's gross domestic product (GDP) is 7% out

of which the gross premium collection forms a significant part.

The funds available with the state-owned Life Insurance Corporation

(LIC) for investments are 8% of GDP. Till date, only 20% of the

total insurable population of India is covered under various life

insurance schemes, the penetration rates of health and other non-life

insurances in India is also well below the international level. These

facts indicate the of immense growth potential of the insurance

sector.

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The year 1999 saw a revolution in the Indian insurance sector, as

major structural changes took place with the ending of government

monopoly and 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.

Though, the existing rule says that a foreign partner can hold 26%

equity in an insurance company, a proposal to increase this limit to

49% is pending with the government. Since opening up of the

insurance sector in 1999, foreign investments of Rs. 8.7 billion have

poured into the Indian market and 21 private companies have been

granted licenses.

Innovative products, smart marketing, and aggressive distribution

have enabled fledgling private insurance companies to sign up Indian

customers faster than anyone expected. Indians, who had always

seen life insurance as a tax saving device, are now suddenly turning

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to the private sector and snapping up the new innovative products on

offer.

The life insurance industry in India grew by an impressive 36%, with

premium income from new business at Rs. 253.43 billion during the

fiscal year 2004-2005, braving stiff competition from private

insurers. RNCOS’s report, “Indian Insurance Industry: New Avenues

for Growth 2012”, finds that the market share of the state behemoth,

LIC, has clocked 21.87% growth in business at Rs.197.86 billion by

selling 2.4 billion new policies in 2004-05. But this was still not

enough to arrest the fall in its market share, as private players grew

by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29

billion in 2003-04.

Though the total volume of LIC's business increased in the last fiscal

year (2004-2005) compared to the previous one, its market share

came down from 87.04 to 78.07%. The 14 private insurers increased

their market share from about 13% to about 22% in a year's time.

The figures for the first two months of the fiscal year 2005-06 also

speak of the growing share of the private insurers. The share of LIC

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for this period has further come down to 75 percent, while the

private players have grabbed over 24 percent.

There are presently 12 general insurance companies with four public

sector companies and eight private insurers. According to estimates,

private insurance companies collectively have a 10% share of the

non-life insurance market.

Though the focus of this market research report is on the potential

growth on the Indian Insurance Sector, it also talks about the market

size, market segmentation, and key developments in the market after

1999. The report gives an instant overview of the Indian non-life

insurance market, and covers fire, marine, and other non-life

insurance. The data is supplied in both graphical and tabular format

for ease of interpretation and analysis. This report also provides

company profiles of the major private insurance companies.

Report Highlights:

Gains of Liberalization in Indian Insurance Sector

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Indian Insurance Market Segmentation By Products

Size of the Market and Market Share Of Life Insurers, In INR

(crore)

Market Share Of Non-Life Insurers

Forecast of Life Insurance Growth Up to 2012

Forecast of Non-Life Insurance Growth Up to 2012

Market Revenue of Both Public and Private Insurers

Policies and Measures Taken By IRDA To Develop The

Insurance Market

Research and Development Activities

Regulation of insurance and reinsurance companies

Major Challenges That Indian Insurance Sector is Facing

Profiles of the Major Players

Page 6: Max New York Lic - Child Plan

LIFE INSURANCE IN INDIA

With such a large population and the untapped market area of this

population Insurance happens to be a very big opportunity in India.

Today it stands as a business growing at the rate of 15-20 per cent

annually. Together with banking services, it adds about 7 percent to

the country’s GDP .In spite of all this growth the statistics of the

penetration of the insurance in the country is very poor. Nearly 80%

of Indian populations are without Life insurance cover and the

Health insurance.

This is an indicator that growth potential for the insurance sector is

immense in India. It was due to this immense growth that the

regulations were introduced in the insurance sector and in

continuation “Malhotra Committee” was constituted by the

government in 1993 to examine the various aspects of the industry.

The key element of the reform process was Participation of overseas

insurance companies with 26% capital. Creating a more efficient and

competitive financial system suitable for the requirements of the

economy was the main idea behind this reform.

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Since then the insurance industry has gone through many sea

changes .The competition LIC started facing from these companies

were threatening to the existence of LIC. Since the liberalization of

the industry the insurance industry has never looked back and today

stand as the one of the most competitive and exploring industry in

India. The entry of the private players and the increased use of the

new distribution are in the limelight today. The use of new

distribution techniques and the IT tools has increased the scope of

the industry in the longer run.

A Brief History

The origin of insurance is very old .The time when we were not even

born; man has sought some sort of protection from the unpredictable

calamities of the nature. The basic urge in man to secure himself

against any form of risk and uncertainty led to the origin of

Page 8: Max New York Lic - Child Plan

insurance. The insurance came to India from UK; with the

establishment of the Oriental Life insurance Corporation in 1818.

The Indian life insurance company act 1912 was the first statutory

body that started to regulate the life insurance business in India. By

1956 about 154 Indian, 16 foreign and 75 provident firms were been

established in India. Then the central government took over these

companies and as a result the LIC was formed. Since then LIC has

worked towards spreading life insurance and building a wide

network across the length and the breath of the country. After the

liberalization the entrance of foreign players has added to the

competition in the market.

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. In 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. In 1972 The General

Insurance Business (Nationalization) Act, 1972 nationalized the

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general insurance business in India with effect from 1st January

1973.

It was after this that 107 insurers amalgamated and grouped into four

companies 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.

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 to enter the market with some limits on direct foreign

ownership. premium rate of most general insurance. Policies come

under the purview of the government appointed Tariff Agenty

Committee. The opening up of the sector is likely to lead to greater

spread and deepening of insurance in India and this may also

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restructuring and revitalizing of the public sector companies. A host

of private insurance companies operating in both life and non life

segments have started selling their insurance policies since 2001.

Non life insurance market, In December 2000, the GIC subsidiaries

were restructured as independent insurance companies. At the same

time, GIC was converted into national re-insurer. In July2002,

Parliament passed a bill, delinking the four subsidiaries from GIC.

Presently there are 12 general insurance companies with 4 public

sector companies and 8 private insures. Although the public sector

companies still dominate the general insurance business, the private

insurance companies have a 10 percent share of the market, up from

4 percent in 2001. In the first half of 2002, the private companies

booked premium worth 6.34 billion. Most of the new entrants

reported losses in first yr of their operation in 2001.

Insurance costs constitute roughly around 1.2 – 2 % of the total

project costs. Under the existing norms, insurance premium

payments are treated as part of the fixed costs. Consequently they are

treated as pass through costs for tariff calculations.

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For projects costing up to Rs.1 billion, the tariff Agent committee

sets the premium rates, for projects between 1 billion and 15 billion,

the rates are set in keeping with committee’s guidelines; and projects

above 15 billion are subjected to reinsurance pricing. It is the last

segment that has a number of additional products and competitive

pricing. Insurance, like project finance, is extended by a consortium.

Normally one insurer takes the lead, shouldering about 40-50% of

the risk and receiving proportionate percentage of the premium.

Company profile of MAX NEW YORK LIFE :

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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

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certification. Max New York offers customized products tailored to suit

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 training.

Max New York Life invests significantly in its training 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. Training

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 training 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.

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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.

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

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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.”

“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.

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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.

Vision:Vision statement is "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

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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."

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

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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

Max New York Life InsuranceFACT SHEET – As of July 31st, 2009

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Founded 2000

Started Operations April 2001

Headquarters New Delhi, India

World Wide Web Address http://www.maxnewyorklife.com

Chairman Analjit Singh

Managing Director & CEORajesh Sud

Paid-Up CapitalRs. 1,782 crore

Sum AssuredRs 1,03,500 crore

Number of Policies Sold3.9 million

Employees12,531

Agent Advisors92,667

Number of Products (INDIVIDUAL) 37

Number of Riders/Options (Individual) 8

Product Combinations Possible (Individual)Over 800

Number of Products (Group) 6

Number of Riders/Options (Group) 7

Number of Offices712

Number of Offices Dedicated To Rural Business 137 (21 hub offices, 116 spoke offices)

MDRTs 218 (for calendar year 2008)

Trainers824

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Five plan of Max New York Life insurance company

Whatever you need, Max New York Life has a plan for you. Because we

understand everyone has different needs. Our plans are designed towards

meeting your long term financial goals & aspirations & helping you fulfill

your dreams & commitments

• Life Plans: To ensure that your family will be taken care of in case of

any eventuality. To find peace of mind was never so easy.

 [Whole Life Plus]-[Life Partner Plus]-[Life Gain Plus]

• Growth Plans: Plans designed to offer insurance cover along with

superior returns in the long term. Just what you need for a secure future.

 [SMART Assure]-[Life Maker Premium]

• Pension Plans: To ensure that your retirement years are the most

precious of your life.

[SMART Invest]

• Child Plans: Plans perfect for the ever growing needs of children.

After all, you would want to give the best to your child.

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[SMART Steps]-[SMART Steps Plus]-[SMART Steps Single Premium]

• Health Plans: To provide a comprehensive cover for your health,

from hospitalization to recuperation. As they say, health is wealth.

 [Lifeline Wellness Plus]-[Lifeline Medicash Plus]-[Lifeline Safety Net]

What is child plan?

Planning does not necessarily mean about what you wish your

child would grow up to be, or have certain characteristics, but it

also essentially means you as a responsible parent having various

obligations to fulfill that would help him to grow better in this world.  The first thing that strikes is providing for education (graduation as

well as post graduation). The most often repeated statement, ‘Assume that a two year MBA

program in a leading business school costs Rs 5,00,000 at present.

Your child is five years old now and will pursue the management degree

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at the age of 20 years. This gives you a time frame of 15 years.

Assuming that the inflation rate is 10% per annum, the education would

cost Rs 2,088,624. Now that seems a handful, doesn't it?’ The dynamics of planning for the child's future have changed radically

over the years. The conventional method of providing for the child was

to just set aside some amount of money in a savings bank account.

These funds would then be utilized for the child's life stages. A few

parents would also make investments in fixed deposits with the intention

of utilizing the maturity amount. However, it would be safe to say that

such an approach is not only outdated, but also inadequate in the

present scenario. Life insurance plays an important role in an individual's financial

planning exercise. Insurance can assist individuals in planning for

their own life stages as well as provide for their child's future. It also

secures the child’s future in case of any unfortunate event. Various types

of child insurance products are available in the market today.  Child insurance plans have traditionally played an important role in

securing the child's future. With a plethora of children insurance plans

available in the market, it becomes difficult for most parents to evaluate

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them objectively. Individuals need to understand the dynamics for

planning their children so that they can best utilize the alternatives

available in the market. 

Parents must consider at the outset that they would have to build as

sufficient corpus for their children especially if the child is to be sent

abroad for education or a professional post graduation degree from the

premier institutes in the country itself. As in our above example, a 15 year

planning time frame has raised the amount required considerably,

parents must keep this in mind. As a parent, one would generally plan from the perspective of making

funds available for 

Education

Marriage

Seed capital for business

The factors to consider while planning, 

Time frame for building a corpus

Age at which the fund would be required.

Approximate amounts to build the corpus.

Investment avenues to be considered.

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The amount available to the child in case of death of parents or disability

of the premium-paying parent.

Child plans come in two broad variants –Traditional child plans and unit

linked insurance plans (ULIPs). The primary difference between the two

lies in the way they invest their premium. Traditional plans invest a major

portion of their money in debt instruments like corporate bonds and

government securities (as specified by the regulator). Conversely, ULIPs

can invest across equity and debt markets in varying proportions. 

Parents have plenty of choice; they can either opt for a regular ‘

Traditional endowment plan’ which carries relatively lower risk since it is

invested mainly in corporate bonds and government securities. The

bonuses are stable and give the parent considerable comfort knowing

roughly how much he

can expect. Regular endowment plans are suited for parents with a low

risk appetite. 

 Parents with some risk appetite can opt for a ULIP child plan that invests

across equity and debt markets.

The reason why ULIP child plans can prove to be significant is because over the long-term (15-20

years), equities can add considerably to the corpus you plan to build

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for your child's needs. Equities

are best placed to beat inflation over the long term. However, to achieve

this, one must invest wisely. Debt

on the other hand brings stability to a portfolio. While the returns for debt

at times may seem

unattractive as compared to equities, their importance in a portfolio

(ULIP) cannot be

understated. Parents should consider taking on some risk (by investing in equities) to

beat inflation, which is the main

reason the cost of everything right from your child's education to his

marriage is forever spiraling. Over a

15-20 year time frame, if wisely selected, a ULIP even with moderate

equity allocations could add

considerably to your child's corpus Life insurance has much to offer to parents looking to accumulate

wealth for their child's future. There

are several plans offering enough flexibility to help parents with the same.

In the end, it all boils down to

making an informed choice and ensuring that your plan is working

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in line with your

expectations.

Child plan

Children’s Endowment to 18 (par)

Plan overview

Page 27: Max New York Lic - Child Plan

Life has innumerable surprises stored for us. Parenthood is wonderful

and it is one such stage, when you experience various emotions you

never thought you had. But parenthood also brings its own set of

apprehensions and worries. What will your child grow up to be in the

future? Will his/her future be as secure as you want it to be? Or more

importantly what can you do to make sure his/her future is hassle-free

and secure? So, planning ahead for your child’s future needs such as

higher education is extremely important and ensuring that you have

the ability to fulfill those needs is even more critical.

Max New York Life presents Children's Endowment Participating

Insurance to age 18 with an option to buy a permanent life insurance

policy without medical underwriting (irrespective of his/her health at

that time). This policy which is especially designed to enable you to

provide for higher education of your child and take care of your child’s

future needs in case of spiraling costs.

Children’s Endowment to 24 (Par)

Plan overviewParenthood is wonderful. However, this is a phase in life when you

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are expected to fulfill various responsibilities, which grows as your

child gets older. It’s important that you plan in advance to meet your

child’s future needs and be financially prepared. It’s important that

you plan in advance to meet your child’s future needs and be

financially prepared.

Max New York Life’s Children's Endowment Participating Insurance

to age 24 provides an option to buy a permanent life insurance policy

without medical underwriting (irrespective of his/her health at that

time). This policy enables you to provide for various events in your

child’s life such as a grand wedding of your child. This excellent plan

is a participating plan, which is also eligible for bonuses and Max

New York Life may declare these bonuses from time to time and from

the third policy year. An important feature of this plan is that the entire

sum assured is paid out on maturity and the plan automatically vests

when the child turns 18.

Smart step

Plan overviewAs a responsible parent, it is your responsibility to ensure that your \

child has a safe and a bright future. Higher education, marriage, and

financial security for your child are just some of the most important

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things that you would want to save your money for. However, with

ever-rising cost of living in today’s world, simple savings would not be

enough. As a good planner, you need to look ahead and plan

accordingly. As you work hard to ensure that your child receives

quality education and has a secured future, you need a plan, which

would provide you the helping hand and the desired financial support

at times of unavoidable crisis in the future.

Introducing Max New York Life’s regular premium unit linked life

insurance children’s plan – SMART Steps™, which will help you plan

for your child's future in a SMART way and takes your worries away.

This plan offers the required financial protection for your loved ones if

you are not alive and provides an unmatched investment opportunity

by way of well managed investment funds. This policy also entitles

you to make partial withdrawals for various unplanned expenses in

the future.

Smart step Plus

Plan overview

Page 30: Max New York Lic - Child Plan

It is your responsibility to ensure that your child has a safe and a

bright future. Higher education, marriage, and financial security for

your child are just some of the most important things that you would

want to save your money for. However, with ever-rising cost of living

in today’s world, simple savings would not be enough. As you work

hard to ensure that your child receives quality education and has a

secured future, you need a plan, which would provide you the helping

hand and the desired financial support at times of unavoidable crisis

in the future. Children plans ensure that money is made available at

the crucial junctures in a child's education and to fund crucial

commitments for the child's future.

A regular premium unit linked life insurance plan, Max New York

Life’s SMART Steps™ Plus will help you plan for your child's higher

education, marriage, and financial security. This plan offers no-

compromise 360 degree protection to your children even if you are

not alive and provides an unmatched investment opportunity by way

of well managed investment funds. This policy also entitles you to

make partial withdrawals for various unplanned expenses in the

future.

Smart step single premium plan

Page 31: Max New York Lic - Child Plan

Plan overview

Higher education, marriage, and financial security for your child are

some of the most important things that you would want to save your

money for. It is your responsibility to ensure that your child has a safe

and a bright future. However, with ever-rising cost of living in today’s

world, simple savings would not be enough for all your child’s future

needs. Your support and financial security for your child is of utmost

importance and that’s the reason you need a plan, which would

provide you the helping hand and the desired financial support at

times of unavoidable crisis. Children plans ensure that money is

made available at the crucial junctures in a child's education and to

fund crucial commitments for the child's future.

Max New York Life’s SMART Steps™ Single Premium policy will help

you plan for your child's future in a SMART and organized manner.

Apart from offering 360 degree protection to your child if you are not

alive, this plan also provides an unmatched investment opportunity by

way of well managed investment funds. This policy also entitles you

to make partial withdrawals for various unplanned expenses in the

future.

Page 32: Max New York Lic - Child Plan

Max India Group Key Milestones as on 31st March 2009. ←

Max India Group crosses USD 1 billion mark in revenue.

← Consolidated Revenue CAGR of 57% in 3 years, marking ←

← impressive performance. ←

← The total investment in various businesses of Rs. 1,800 Crore ←

← triples to Market Valuation of Rs. 5,000 Crore. ←

← The Group has over 581 offices across more than 382 ←

← locations in the Country and with people strength of 100,000+ ←

← persons. ←

← The total consumer base increased from 2.5 million in 2007-08 ←

← to 3.5 million in 2008-09.

Key Highlights as on March 31, 09 ←

← Outperforms the industry in terms of First Year Premium growth ←

← - Market share improved to 6% from 5% in FY 2008-09 ←

← Embedded Value of Life Insurance Business at Rs. 2,284 ←

← Crore, up 74% ←

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← Assets Under Management grow 51% to USD 1.2 billion ←

← more than doubles agency strength from 37,000 agents to ←

← 84,000 agents.

RESEARCH METHODOLOGY

Research: - is a process of collecting, analyzing, interpreting and

summarizing in a significant manner for the purpose of framing out

necessary conclusion and findings of data perceived and formulated

for deriving out the meaningful information. To carry our research

necessary telephonic calls needed to be done, suitable appointments

were to be fixed and therefore market survey is to be followed.

Objective of training: - To understand life insurance and

recruitment of capable life insurance advisors for growth prospects.

Process: Methodology or process involving in the Research

followed during the course of summer training is as follows: -

Page 34: Max New York Lic - Child Plan

a) Collection of data : - This is an important aspect in formulating

the objective of research process where the data is collected via

two process: - i) Primary Sources and ii) Secondary sources

i) Primary sources : - Where the data is collected primarily by

interviewing and personal observation and is original in nature

and accurate to the considerable extent.

ii) Secondary sources : -Where the data is obtained from some

published and printed sources such as newspaper, magazines,

websites and so on.

b) Analyzing of collected data : - The data collected through market

survey and published sources is then processed to obtained

necessary inferences and findings for the purpose of achieving the

objective as well as to derive necessary conclusion. A

considerable skill and knowledge is involved in analyzing the

data for the purpose of interpreting thereof.

c) Interpreting of data : - it is the significant step where the data

collected and analyzed is interpreted in the forms of graphs and

figures is depicted in the report called Project report.

Page 35: Max New York Lic - Child Plan

d) Summarizing of data : - Thereby necessary summary is prepared

which is essential in the project report of the summer training

being done under an organization.

Page 36: Max New York Lic - Child Plan

Helpful Arms of Research Methodology: -

Questionnaire: - Questionnaire is a set or group of questions being

framed for the purpose of obtaining market perspective about a

particular aspect or topic.

There are two types questionnaire bing carried necessary for the

market survey of the summer training being undertaken and put for

the by the trainee to the sample people taken as a base for entire

population:

a) Open ended Questionnaire : - where the people (also called

respondents) are required freedom to present their views and

suggestions for the benefits and success of the organization.

b) Close ended questionnaire : - where the respondents is limited to

the choice of answer being delivered by the interviewer itself so

that quick and fast means of responses be derived out without

wasting much time. Here close ended questionnaire being

followed by me during the course of the summer training market

survey.

Page 37: Max New York Lic - Child Plan

Sampling: - Sampling is a process of obtaining a number of

individuals taken a base for the entire population since entire

population can not be asked about the necessary objective upon

which a questionnaire is put forth needed for the responses to be

derived for the purpose of generation of facts and customer view

point regarding their perception of particular product or services.

There are two type of sampling – i) Random Sampling and ii)

Systematic sampling.

i) Random sampling : - Random sampling is a process of

selecting the sample size randomly and no choice or

preference to be made about the selection of respondents for

the market survey and questionnaire to be put forth against

him. Here, Random sampling being adopted by me.

ii) Systematic sampling : - it is a sampling where the limited

number of selected respondents is figured out based on some

criteria so that only those respondents can be asked for the

purpose of filing questionnaire.

Sample Size: - 105 respondents.

Page 38: Max New York Lic - Child Plan

MARKET SURVEY

LIFE INSURANCE IS:51

38

16

0102030405060

Protection ofhuman asset value

against uncertainty

Tax benefit device Both

CATEGORY

RE

SPO

NSE

S

From the survey it was drawn that life insurance is more a protection of human

asset value against uncertainty (conferred by 51 respondents) where it is a tax

saving option (being accepted by 38 respondents). Life insurance is a service

involving both these prerequisites as depicted by remaining 16 respondents. The

following depicted this:

Protection of human asset value against uncertainty 51

Tax benefit device 38

Both 16

Page 39: Max New York Lic - Child Plan

78

27

01020304050607080

NO

. OF

RE

SPO

ND

EN

TS

Yes No

RESPONSES

IS LIFE INSURANCE ESSENTIAL?

It has been observed and applied as a Life insurance is an essential

service and should be applicable to every one, as favored by

considerable 78 respondents where it is not essential to an extent by

27 respondents from the summer training project survey by putting

forth the set questionnaire.

Page 40: Max New York Lic - Child Plan

RESPONDENT'S QUALIFICATION

33%

10%

57%

Post graduate

Graduate

Senior secondary

When further enquired about the qualification of respondents, it was

found that 57% of the respondents were graduates, 33% were post

graduates and remaining 10% were of higher secondary out of total

105 respondents. Further depicted in the following tabular

representation : -

Post graduate 35

Graduate 59

Senior secondary 11

Page 41: Max New York Lic - Child Plan

AGE QUALIFICAITON:

39%20%

6%

35%

18-25 age group25 – 35 age group35 – 45 age groupAbove 45 age group

Further, the age qualification for agency recruitment, it was found that 39%

respondents were belonging to 18 – 25 age group, 35% were belonging to 25 –

35 age group where as 20% to 35 -45 age group and remaining 6% to above 45

age group. Also depicted in the following tale mentioned below: -

18-25 age group 41

25 – 35 age group 37

35 – 45 age group 21

Above 45 age group 6

Page 42: Max New York Lic - Child Plan

CAUSES OF DISSATISFACTION

17%

16%

10%23%

34%

Low employment

Low earning / income

Low status

Huge capital investment

All of the above

Respondents had different views about the dissatisfaction from the

present status of working or occupation. Dissatisfaction has been

depicted in a table below and graphically above:

Low employment 24 Low earning 36 Huge capital investment 17

Low status 18 All of the above 10

Page 43: Max New York Lic - Child Plan

ABOUT CAREER IN LIFE INSURANCE

59

46

010203040506070

Yes NoRESPONSES

NO

. OF

RE

SPO

ND

EN

TS

When asked about whether they would like to know about a glorified

career in life insurance agency where they can fulfill any and every

desire of their life, 59 respondents agreed while 46 respondents said

No and will see later sometime in future. It has been depicted that

life insurance sector should be promoted at the wide extent as it

contribute to the economy as a useful source beneficial for both

nation as well as is citizens.

Page 44: Max New York Lic - Child Plan

86

19

0

20

40

60

80

100N

O. O

F R

ESP

ON

DE

NT

S

Yes No

RESPONSES

IS LIFE INSURANCE A NOBLE SERVICE?

Indeed Life insurance is a noble business as it provides a needful

financial support in the situation of fatal calamity where the family is

deprived by the fact to live in future and sustains their living. When

surveyed about life insurance as a noble service. 89 respodents

agreed and believe that insurance is a bettering service to human life

and society as a whole where as 19 respondents show disagreement.

Page 45: Max New York Lic - Child Plan

18

41

0

10

20

30

40

50N

O. O

F R

ESP

ON

DE

NT

S

Yes No

RESPONSES

ACCEPT LIFE INSURANCE AS A CAREER?

From the 59 respondents who agreed to know about the life

insurance as a career, 18 of them agreed to join MAX NEW YORK

life insurance for agency and come to the company fore more

information whereas 41 still took time to think and postponed to

some future date. People are highly dissatisfied from the earning,

status and living standard they are sustaining at present and would

definitely like to make some additional source of earning and for this

agency for life insurance would prove a boon.

Page 46: Max New York Lic - Child Plan

92

13

0

20

40

60

80

100R

ESP

ON

DE

NT

S

Yes No

RESPONSES

IS LIFE INSURANCE INDUSTRY GROWING?

From all 105 respondents, 92 agreed that life insurance sector is a

growing concern and will grow at a rapid pace in future where as 13

took as a mere stagnant industry. Financial services are growing at a

tremendous pace as people are urging to make their investment in

lucrative opportunities and therefore life insurance sector is playing a

vital role in educating the people to make their investment which

could secure their future, needs and living despite some fatal

calamity that might or might not occur.

Page 47: Max New York Lic - Child Plan

AGREE WITH PRIVATISATION OF LIFE INSURANCE?

74

31

01020304050607080

Yes NoRESPONSES

RE

SPO

ND

EN

TS

Among 74 respondents from 105 respondents favored the

privatization of the life insurance and perceive that the people of

India will know be more aware and knowledgeable with respect to

life insurance than that in the past 50 years with the working of LIC.

The myth of LIC since it is a Government concern is still continue to

prevail even though people have become more advanced and they

can invest their hard earned money after undertaking their pros nad

cons and company position in the market.

Page 48: Max New York Lic - Child Plan

SWOT ANALYSIS

STRENGTHS

1. MAX NEW YORK life insurance offers a range of individual

and group insurance solutions.

2. MAX NEW YORK life has the financial expertise required to

manage your long-term investments safely and efficiently.

3. The company has covered over 8,77,000 lives year ending

March 31, 2007

4. Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive

year for High service standards

5. Life insurance industry is a rapid growing and a nobler service

industry.

WEAKNESSES

1. LIC is prevalent and sustains even today a major source of

population.

Page 49: Max New York Lic - Child Plan

2. Low number of offices and network and number of life

insurance agents.

3. Lack of knowledge and expertise.

OPPORTUNTIIES

1. Life insurance has captured its mere15 – 20% growth therefore

a wide open untapped market is open to the company to

develop, grow and measure its success.

2. Still the number of companies are few and company has every

capabilities to grow and forward its performance areas to the

widest

THREATS

1. People are hesitant to invest and put their hard earned money

to the private life insurance company with the fear of getting

lost.

Page 50: Max New York Lic - Child Plan

2. Belief towards LIC as it is a government corporation phobia is

continue to surmount the people of India despite lots of flaws

and development and liberalization of life insurance.

3. Alternative financial services such as mutual fund, banking

services, share and securities also pose problems and threats to

the working of the life insurance sector.

4. Illiteracy and unemployment also pose threat.

5. Rising real estate industry also pose threat as people are

investing a bulk of their money over to that industry.

6. CONCLUSION

7. Summer training is a best example for a trainee to learn about

the company working, corporate culture under which is

operating the functions. MAX NEW YORK life insurance is a

life insurance company under which I gained a significant

knowledge with respect to life insurance, its importance and

applicability as well as undertook the task to recruit capable

life insurance advisors which is conducive for the company to

grow with more prosperity. What I taught in the management

Page 51: Max New York Lic - Child Plan

institute utilized them fruitfully leading to the best advantage

to the company and to the best experience for mine.

8. At far I can conclude that life insurance is a noble service

which is very important for every citizen to learn and realize its

importance because this is the only source which can remain

the status where one is with the family bread earner and ever

when he is not.

9. With the growing financial sector I would like to opt this

industry for my future career advancement and as an

opportunity to service this industry.

10.BIBLIOGRAPHY

11.Following are sources which helped me during my summer

training:

12.BOOKS:

13.KOTHARI C.R.: Research Methodology Management, 3rd Edition

14.KOTLER PHILIP: Marketing Management” 11th Revised edition

,2002

Page 52: Max New York Lic - Child Plan

15.GUPTA S.P.: Statistical Methods “Thirteen revised edition, 2001

16.MAGAZINES:

17.India Today

18.Business World

19.REFERENCES

20.Websites : -

21.www.MAX NEW YORK lifeinsurance.com

22.www.irdaindia.org

23.www.liccouncil.org

24.www.businessconnect.com

QUESTIONNAIRE

Name: - ……………………………………………………………

Age:- ……………………………………………………………

Location: - ……………………………………………………………

Page 53: Max New York Lic - Child Plan

Occupation: -……………………………………………………………

Q.1. What do you mean by life insurance?

a) Protection of human asset value against uncertainty

b) A sum received after death

c) Both

Q.2. Do you think life insurance is essential for every one?

a) Yes

b) No

Page 54: Max New York Lic - Child Plan

Q.3. What is your qualification?

a) Post graduate

b) Graduate

c) Senior secondary

Q.4. Do you come under:

a) 18-25 age group

b) 25 – 35 age group

c) 35 – 45 age group

d) Above 45 age group

Q.5. What dissatisfied you most in your occupation

a) Low employment

b) Low earning / income

c) Low status

d) Huge capital investment

Page 55: Max New York Lic - Child Plan

e) All of the above

Q.6. Would you like to know about a career in life insurance

advisor ship where you can fulfill every desire of your life?

a) Yes

b) No

Q.7 Do you perceive that life insurance business is a noble

service oriented business?

a) Yes

b) No

Q.8. Would you like to become or opt for life insurance advisor

under esteemed and prospering organization MAX NEW YORK

life insurance?

a) Yes

b) No

Page 56: Max New York Lic - Child Plan

Q.9. Do you agree that the life insurance business is a growing

industry and will grow and rapid pace in future?

a) Yes

b) No

Q.10. Do you favor the privatization of life insurance by the

Government where a significant number of companies now in

the market for life insurance to the customers with the alliance

of multinationals?

a) Yes

b) No

Suggestions: - 1. ……………………………………………………………

2. ……………………………………………………………

3. ……………………………………………………………

4. ……………………………………………………………

5. ……………………………………………………………