ACKNOWLEDGEMENT

The project “Job satisfaction of the employees working in Max NewYork Life Insurance Company” is an outcome of my research. For the completion of this project I get an opportunity to express my deep gratitude to all those who helped me in making this report.

First of all I would like to thank The Almighty for his blessing for completing this project successfully.

I would like to extend my sincere thanks to Mr. Uday Minhas (Sales Manager in ICICI Pru) and Mr. Varun Sharma (Agency Manager in ICICI Pru) for providing me articulate guidance and ceaseless encouragement throughout my training.

I express my grateful thanks to Ms. Shabnam Priyadarshini and Mr. Laiqat Ali for offering valuable suggestions. I also like to thanks to Mr. Arun and all the staff for providing their kind cooperation and environment that played a vital role at every step of work completed.

Last but not the least, I also express my grateful thanks to respondents for giving their valuable time to make this project to success.

INDEX

Sr. No.TABLE OF CONTENTS

PAGE NO.

1.

Executive Summary

5

2.

Introduction

6

2.1Life insurance

7

2.2

Need Of Life Insurance7

3Company Profile

9

4

Industry Profile

17

4.1History

18

4.2Economic Environment

19

Political & Legal Environment

25

5

6

SWOT Analysis

Research Methodology

37

6.1 40

Objectives

6.2

Research Plan

41

6.3

Limitation

42

7

Job Satisfaction of the Employees Working in ICICI Prudential

43

7.1

Analysis

43

8Findings/Conclusion

55-56

9Questionnaire Sample

57

10Bibliography

59

EXCUTIVE SUMMARY

A policy that will pay a specified sum to beneficiaries upon the death of the insured or an

agreement that guarantees the payment of a stated amount of monetary benefits upon the

death of the insured.

Basic aim of the project “Job satisfaction of the employees working in max new york life

insurance” is to find the satisfaction level of the employee’s .i.e. whether they re satisfied

with there job or not.

The methodology used was data collection using Questionnaire. The target respondents

are employees working in max new york life insurance. The area of survey was restricted

to Employees working in Chandigarh, Panchkula, Mohali and Rajpura The following

finding was made during the survey:

The success of any organization depends on the effective utilization and motivation of its

human resources. Job satisfaction is an integral component of the organizational climate

and an important element in management employee relationship

INSURANCE

INTRODUCTION

It can be rightly said that wherever there is uncertainty, there is an involvement of risk.

The desire to secure oneself against such risk must have been one of the central factors

that must have led to the concept of insurance. The urge to seek protection against the

loss of life or property is what which must have prompted people to make some sort of

willful sacrifices in order to be able to achieve security through “collective co-operation”.

Insurance is not necessarily an investment from which one expects to gain in monetary

terms and it cannot be called gambling either. A gambler tends to take risks whereas

insurance provides protection against risk that already exists. Thus, it can be said that the

basis of insurance is to share losses of a few amongst many. Insurance provides financial

stability and strength to individuals as well as organizations by distribution of loss of few

among many by building up a fund over a period of time.

1.1 WHAT IS LIFE INSURANCE?

A policy that will pay a specified sum to beneficiaries upon the death of the insured or an

agreement that guarantees the payment of a stated amount of monetary benefits upon the

death of the insured.

1.2. NEED

The very basic need for any insurance is due to the following factors Risk Exposure of Assets Uncertainty of occurrence of an event Uncertainties in Human Life/ Health Consequences of events difficult for any individual to bear

Insurance helps in reducing/ compensating Financial Losses. Insurance companies do this

by pooling of resources/ contributions by many in terms of premium out of which the

losses of a few are compensated.

Who can buy a life insurance policy?

Any person above 18 years of age, who is eligible to enter into a valid contract can go for

an insurance policy. Subject to certain conditions, a policy can be taken on the life of a

spouse or children.

How is a life insurance policy useful?

Planning for the financial consequences of a premature death is an essential part of every

financial plan. Generally, the consequences are simply too large to ignore and cannot be

totally covered with your own resources.

Life insurance is nothing but a contract with an insurance company under which the

insured (purchaser) pays a premium in exchange for coverage of specified losses. Life

insurance protects your family against the risk of the premature death of you (or your

spouse). Life insurance planning should consider your family's short-term needs (for

example, medical expenses) and long-term needs (for example, replacing your income).

In the course of our life we are accosted by risk-that of failing health, financial losses,

accidents and so on. Insurance is a means by which life's uncertainties are addressed in

financial terms. It offers a monetary compensation against those losses. Insurance is

considered more as a hedging mechanism rather than a true investment avenue. Life

insurance, in particular is essentially acknowledged as a mechanism, which eliminates

risk-substituting certainty for uncertainty primarily by transferring risk from the insured

to the insurer.

Is life insurance a saving instrument?

Life insurance is mainly considered as a saving instrument rather than an investment

avenue as it promotes compulsory savings besides reducing tax

Burden on the policyholder and protect the family of the policyholder in the event of

unforeseen happening. It is the only saving instrument, which covers the life risk besides

giving tax concession both at entry (premium paid) and at exit points. The section 10 (D)

of the income tax act totally exempts payment of tax on any amount received as bonus

against life insurance policies.

[Company Profile]

Overview

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.

Incorporated in 2000, Max New York Life started commercial operation in 2001. 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 is Rs. 1,232 crore.

Having set a Best in Class Agency Distribution Model in place, the company is spearheading a major thrust into additional distribution channels to further grow its business. The company has multi-channel distribution that includes the agency distribution, partnership distribution, bancassurance, distribution focused on emerging markets and alliance marketing through employed sales force. The company currently has

33 bancassurance relationships, 14 corporate agency tie-ups and direct sales force at 14 locations. Max New York Life has put in place a unique hub and spoke model of distribution to deepen rural penetration. The company has 39 (9 hub office 30 spoke offices) offices dedicated to emerging markets in Punjab and Haryana. Max New York Life offers a suite of flexible products. It now has 38 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 4 riders in group insurance business.

The company currently has more than 11,338 employees.

Vision - To make Max New York the dominant Life and Pensions player built on trust

by world-class people and service.

Mission – To make the company the dominant player in the life insurance industry with

their commitment to excellence, focus on service, speed & innovation and leveraging

their technological expertise.

Objective - For a vision come true and mission fulfilled – a key factor – the success of

the organization

“The success of this organization will be founded on its strong focus on

values and clarity of purpose. These include:

Understanding the needs of the customers and offering them

superior products and service.

Building long lasting relationships with our partners.

Providing an enabling environment to foster growth and

learning for our employees.

Various plans of max life

Protection Plans

Life is unpredictable. As the head of the family, everyone wants a secured life for their family members. The nightmares about your family's financial protection keep haunting you. Max New York Life's protection plans insure your life and reduce any hardship your family may have to bear in the unfortunate event of your death. These plans have been designed especially to meet diverse insurance needs of different individuals. They guarantee maximum protection at low premium amounts. Max New York Life takes you out of the shackles of worries and gives you the opportunity to fly free in the sky.

Children Plans

Parenting is all about creating the right environment for your children to grow in. The care & love that you shower on them must also be accompanied with the proper planning for their future. Helping your child "win the battle of life" is the best gift that a Parent can give to his child. Max New York Life with their children plans makes it possible for you to achieve this dream of giving your child a happy and financially secured future. Following are the products, which will provide financial support to your children, while pursuing their dream careers, getting married, buying a home etc:Children's Endowment to 18 (Par) Children's Endowment to 24 (Par) SMART Steps™SMART Steps™ PlusSMART Steps™ Single Premium

Investment Plans

It is said that money does not move, it runs. So there is a need to invest your money properly. Max New York Life's investment plans will help in the growth of your money. These plans give the customer the dual benefit of protection along with the potentially higher returns of market-linked instruments. The most important benefit of ULIPs is the flexibility they give the customer in choosing the premium amount. They provide you the right solutions to make your dreams come true, whether you are buying a home, starting a family or launching a business venture. We will help you climb the ladder of success quickly.

Retirement Plans

People retire but needs don't. Max New York Life with their retirement plans comes forward to support you in your old age and makes the unfulfilled dreams of your life come true. Retirement is like a second life, where you can fulfill all your dreams, which you have been pushing aside in your past because of lack of time. Our retirement plans make sure that you maintain your comfortable lifestyle and don't compromise with your wishes because of lack of financial resources in your old age.

Health Plans

A very common saying - "Heath is Wealth", may have become old but it's true. Diseases can grab anyone at anytime. So, you have to pre-plan in such a way that you don't have any financial constraint at the time, when your loved ones are in severe pain. Everybody believes that "prevention is better than cure" and adapt strict diet plans, exercise daily for it as well but no matter how well you take care of your self, diseases can grab you anytime. So, Max New York Life's Health Plans have been designed to take into account the diverse set of needs at times of an individual's ill health. These health plans provide you financial security at the time of health treatments required.

Savings Plans

It must be admitted that a certain degree of instability lies in every individual's life. Foreseen and unforeseen needs can arrive at any point of time. Max New York Life's savings plans will help you. Our dual benefits saving plans recognizes your need for a complete all round financial protection and therefore provides you life cover and helps in the growth of your money.

Money will fly soon, if not taken care of. Therefore, we offer you diverse savings plans, which would undoubtedly suit your needs and your budget.

Rural Plans

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Strategic Products Plans

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Group Plans

Human power is the most important part of an organization, on which the success of an organization depends. Our group plans help an organization to give the best to its employees in terms of financial security, which in return will motivate the employees to retain in an organization and give their best. These Plans have been designed especially, keeping in mind the benefits of the employees of an organization, which act as a powerful reward tool for them. Max New York Life enables the organizations to show their concern towards their employees by providing them financial security.

Joining Guidelines

Eligibility Criteria:

Age Group – 18 Yrs and above

Minimum Qualification – 12th Pass

Who can become an Agent Advisor?

Anyone from housewives to entrepreneurs, teachers to part-time workers, who is enterprising, well-networked, flexible, and outgoing can become an Agent Advisor.

Competencies for success

Entrepreneurship

Selling and influencing

Perseverance

Relationship Building / Customer Service

Planning and Organizing

Communication Skills

Do you want to build a career for yourself? Do you want to earn loads of money? Do

you want to see the world? Do you want to secure people’s lives and have a smile on

your face for doing the same? If the answer is “yes” to all these questions, then come

join Max New York Life.

Job Profile

This is an entrepreneurial opportunity with flexible working hours and the potential to

earn unlimited income without any capital investment. As an Agent Advisor at Max

New York Life, you are a financial advisor, a businessperson and your own boss. The

only limit to your growth is your own imagination.

The Role:

Identify prospects and conduct a need analysis

Provide customized solutions for long term financial protection and wealth

creation

Close sales

Deliver the policy

Provide after sales service and build references for future sales.

Benefits

A career at Max New York Life can fetch you innumerable benefits. You can be your own boss with unlimited earning potential. With a low start up investment you can be part of a world-class organization and make a positive difference to people’s lives.

MNYL Agent Advisors sell more and make more money than any other life insurance company Agents. Financial benefits for MNYL Agent fall under the following heads:

Commissions on new sales

Ongoing renewal commissions

Performance linked bonus

Referral commissions

Training reimbursement

Why Join Us

The Six Differentiators:

Number One: Our selection process

The selection process of MNYL is designed to help both the candidate and the

organization to make a decision that is in the best interest. This process involves an

initial interview followed by a numerical ability test. At this point, if there is a

continued mutual interest, the candidate will be invited to attend a career seminar. In

addition, MNYL will review the compensation and training programs in a detailed

manner. If everything goes on well as expected, MNYL will asses the candidate's

natural market and meet one final time to make the final arrangements. At each step

the candidate would learn more about his career in MNYL, and MNYL will learn

more about him / her.

Number Two: Our Training program

Max New York Life has the reputation for having the finest training program for agents in the industry. The training program is designed to provide training and development for agents throughout their career. The training program consists of a full two year formal class room based program. MNYL has two full-time professional trainers in each office whose sole job is to train and guide the new agents.

One of the main reasons for New York Life's involvement in the training program is that their training in the United States is widely recognized as the best in the insurance industry. This magnificent program has been bought to India and customized for the Indian market.

In the United States, New York Life had more members in the Million Dollar Round

table, the world wide organization of the top professionals in the insurance industry,

for 50 consecutive years. In 2001 and thereafter, Max New York Life had more

qualifiers for the prestigious Million Dollar Round Table than the other 12 private

players combined.

Number Three: Something We Call Management Loyalties

One of the many unique advantages of working with Max New York Life is that the

managers are not allowed to sell insurance products to their own customers.

Compensation in management is derived entirely from the success of agents and the

growth of the organization overall. The Managers at all levels are totally committed

to the success of the agents and they do not have any conflicting goals.

Number Four: The Product

Nobody can ever have the number one product in the insurance industry for a long

period of time. It is too easy to change the numbers. However, MNYL takes great

pride in the fact that its products have always been rated amongst the very best in the

industry and that agents will never have any regrets for having sold someone one of

the policies.

Number Five: The Agent's Contract

The Agent's Contract is designed to attract efficient professionals and then retain

them for a long time by paying them well. MNYL provides maximum support so that

the agents can earn a good income today plus build a secure retirement.

Number Six: High-Tech Work Environment

MNYL is very committed to working in a high-tech environment. In fact, New York

Life in the USA is noted for its leadership in using high-tech equipment to provide

the very best in customer service and employee support. These same systems have

been improved and transferred to India. This has helped MNYL in illustrating its

products in a very simple way for even the most complex circumstances. MNYL also

provides state-of-the-art equipment to its agents to help sell products in the most

complex market situations.

Achievements and Awards

Some of the Industry Firsts

← First company to provide Freelook period of 15 days to the customer. This was later made mandatory by the regulator

← First company to start toll free line for agent services ← First and the only life insurance company in India to implement Lean

methodology of service excellence in service industry ← First life insurance company in India to provide various services to the agents and

customers over phone ← First Indian life insurance company to start service center at the regional level ← First life insurance company in India to be awarded ISO 9001:2000 certification

Awards

← Among the top 25 companies to work for in India, according to Businessworld 2003 ‘Great Workplaces of India’

← Among the top five most respected insurance companies in India as per Businessworld 2004 & 2006 survey

← Won Indo-American Corporate Excellence Award for Best Indo-US company in Financial Services Category in 2006

← Received ‘Best Six Sigma Project’ award at Sakal Six Sigma Excellence Awards – 2006

← Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by Asia Insurance Review

← Received the Amity Corporate Excellence Award – 2007

← Received the ‘Outlook Money Award’ for being “among the best new insurers in the country”.

ORGANISATION STRUCTURE

MANAGING DIRECTOR

HEAD SALES (HIMALAYAN

REGIONS)

HEAD (PENNINSULAR

REGIONS)

HEAD(UNDERWRITING

& CLAIMS)

HEAD(FINANCE)

HEAD(CUSTOMER

SERVICE)

HEAD (HR)

HEAD(PROJECTS & SALES

SUPPORT)

HEAD(TRAINING)

ZONAL MANAGER

(EAST)

ZONAL MANAGER(PUNJAB)

ZONAL MANAGER

(DELHI, GUJRAT, MP)

ZONAL MANAGER(DELHI, UP,

RAJASTHAN)

BRANCH SALES MANAGER (DELHI)

BSMGUJRAT

BSMMP

TERRITORYMANAGER

SDA BRANCH

TMPITAMP-

URA

TMJANAK-

PURI

TMVASANT

KUNJ BRANCH

TMVT

BRANCH

ASSISTANT SALES MANAGER

ASM ASM ASM

UM UM UM UMUNIT MANAGER

INSURANCE ADVISOR (FA)

FA FA FA FA

INDUSTRY PROFILE

The History of Life Insurance in India

The Indian insurance industry is segmented into two distinct markets: the life insurance market and the non-life, or general, insurance market. The history of life insurance in India can be traced from 1818.

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

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.

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

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

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

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources. Through investments in the Government sector and socially- oriented sectors the Industry has contributed immensely to the nation's development. The industry is recognized as one of the largest financial Institutions in the country. The ventures initiated by the industry in the areas of Mutual Fund, Housing Finance has done exceedingly well in recent years. To protect the country's foreign exchange reserves, the reinsurance arrangement are so organized that maximum retention is made possible within the country while at the same time protecting interests of the policy holders.

INDIA AGAINST THE GLOBAL MARKETS

India is an under-insured market India’s insurance market is still at an early stage of development. This is reflected in low penetration rates and low premiums per capita.

Insurable population – only 10% of India’s population have life insurance According to ING only 10% of the population is insured, which represents around 30% of the insurable population. This suggests more than 300m people, with the potential to buy insurance, remain uninsured

Global perspective – India ranks 19th on the global stage

India represents only around 0.66% market share (ranked 19th) of global insurance premiums. As of 2004 the largest markets in size are the US (50x bigger than India), Japan and the UK. Out of the Asian countries (ex Japan), South Korea is the largest insurance market, Comprising 2.12% of global premiums, followed by China with 1.61%.

While insurance continues to reach out to the masses, India’s insurance penetration (premiums as a percentage of GDP) still remains very low at 3.2%. This can be split between life penetration of 2.6% and non-life of 0.6%. On the world stage, penetration rates are significantly below developed markets such as the US (9.4%), UK (12.6%) and Australia (8%). Compared with Asian markets, India still falls well short of its nearest peers with countries such as Japan, South Korea and Taiwan having some of the highest penetration rates in the world (between 9% and 14%). Nevertheless, despite current low spend on insurance, the trends in India remain positive. Since the opening up of the market to foreign players in 2000, penetration has more than doubled from 1.5%. With foreigners gaining momentum and building the insurance, coupled with India’s favorable macro overlay, we expect penetration rates to continue to expand.

FUTURE OF LIFE INAURANCE SCHEMES

The Indian Life insurance sector will register a high growth rate in the future years to come says the report prepared by Fitch Ratings. This will be due to the innovative products, better distribution network, better services coupled with other never-before changes that have taken place in the insurance sector. The report laid stress on branding, customer service and tailor made products that will assume importance besides information technology that will become vital to bring down costs in the future. Also data warehousing, ensuring effective cross selling will grown in importance to exploit the largely unexploited market.

In Nov 2005 the Indian Life insurance industry saw a growth of 46 %. This rally is expected to continue as people realize the importance of risk management. The private sector players are expected to grow with their innovative and profitable life insurance schemes.

MAJOR MARKET PLAYERS

Presently there are 15 Life insurance companies in the country. There is only one public sector company LIC and the rest 14 are private sector. Although LIC has been dominating the Life Insurance business since past few years the private players have now started to take the momentum.

Major market players

Birla Sun Life Insurance Company

Birla Sun Life Insurance Company is a 74:26 joint venture between Birla group and Sun Life Financial. It is a private sector company. The company was registered on 31/1/2001. The market share for first the eight months of FY 2005-06 is 1.84%.

HDFC – Standard

HDFC standard is a 74:26 joint venture between HDFC and Standard Life. It is a private sector company. The company was registered on 23/10/2000. The market share for the first eight months of FY 2005-06 is 2.96%.

ICICI Prudential Life Insurance

ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential. It is a private sector company. The company was registered on 24/11/2000. The market share for the first eight months of FY 2005-06 is 7.11%.

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India is a 100% government held Public Sector Company. Being the first to be established LIC is the forerunner in the Life Insurance sector. The market share for the first eight months of FY 2005-06 is 73.91%.

OM Kotak Mahindra old Mutual

OM Kotak Mahindra is a 74:26 joint venture between Kotak Mahindra bank and Old Mutual. It is a private sector company. The company was registered on 10/1/2001. The market share for the first eight months of FY 2005-06 is 0.71%.

Royal Sundaram

Royal Sundaram marks the coming together of Sundaram Finance, one of India’s most respected and trusted finance companies, and Royal and Sun Alliance, one of the largest insurance groups in the world.

Max New York Life

Max New York Life is a 74:26 joint venture between J & Bank, Pallonji & Co and MetLife. It is a private sector company. The company was registered on 6/8/2001.

The market share for the first eight months of FY 2005-06 is 1.32%.

AMP SANMAR

Amp Sanmar was purchased by Reliance group in 3Q2005. It was registered as a private sector insurance company on 3/1/2002.The market share for the first eight months of FY 2005-06 is 0.54%.

Aviva Life Insurance India

Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. It is a private sector company. The company was registered on 14/5/2002. The market share for the first eight months of FY 2005-06 is 1.12%.

ING Vysya Life insurance

ING Vysya Life Insurance is joint venture between Exide (50%), Gujarat Cements (14.87%), Enam (9.13%) and ING (26 %). It is a private sector company. The company was registered on 2/8/2001. The market share for the first eight months of FY 2005-06 is 0.63%.

Met Life India

Met Life India is a 74:26 joint venture between 74:26 JV between J & Bank, Pallonji & Co and MetLife. It is a private sector company. The company was registered on 6/8/2001. The market share for the first eight months of FY 2005-06 is 0.40%.

Allianz Bajaj Life Insurance Co.

Allianz Bajaj Life Insurance Company is a 74: 26 Joint venture between Bajaj Auto limited and Allianz AIG. The company was registered on 3/8/2001. The market share for the first eight months of FY 2005-06 is 6.12%.

SBI Life Insurance Company Ltd:

SBI Life Insurance Company is a 74: 26 Joint venture between SBI and Cardiff S.A. The company was registered on 31/3/2001.It is a private sector company. The market share for the first eight months of FY 2005-06 is 1.52%.

The TATA AIG Group

TATA AIG group is a 74:26 JV between Tata Group and AIG. It belongs to the private sector. The company was registered on 12/2/2001. The market share for the first eight months of FY 2005-06 is 1.78%.

Sahara India Life Insurance Company Ltd.

First Wholly Indian Owned Private Life Insurance Company. The Company commenced operations from 30th October 2004.

Shriram life insurance company Ltd

Shriram Life is a recent entrant into the life insurance sector It is a 74:26 joint venture between the Shriram group through its Shriram Financial Holdings and Sanlam Life Insurance Limited, South Africa. The company expects to start operations soon.

INSURANCE REGULATORY AUTHORITY

names in the industry to enter the Indian market through tie-ups with the eminent business houses. What was once a quiet business is becoming one of the hottest businesses today.

Post liberalization

The changing face of financial sector and the entry of several companies in the field of Life Insurance segment are one o On the recommendation of Malhotra Committee, an Insurance Regulatory Development Act (IRDA) passed by Indian Parliament in 1993. Its main aim was to activate an insurance regulatory apparatus essential for proper monitoring and control of the Insurance industry. Due to this Act several Indian private companies have entered into the insurance market, and some companies have joined with foreign partners. In economic reform process, the Insurance Companies has given boost to the socio-economic development process. The huge amount of funds that are at the disposal of Insurance Companies are directed as desired avenues like housing, safe drinking water, electricity, primary education and infrastructure. Above all the policyholders gets better pricing of products from competitive insurance companies.

Liberalization

The opening up of Insurance sector was a part of the ongoing liberalization in the financial sector of India. The domain of State-run insurance companies was thrown open to private enterprise on December 7, 1999, with the introduction of the Insurance Regulatory and Development Authority (IRDA) Bill. The opening up of the sector gave way to the world known f the key results of these liberalization efforts. Insurance business by way of generating premium income adds significantly to the GDP. Despite the fact that the market is vast in India for the Insurance business, the coverage is far less compared with the international standards. Estimates show that a meager 35-40 million, out of a population of 950 million, have come so far under the umbrella of the insurance industry. The potential market is so huge that it can grow by 15 to 17 per cent per annum. With the entry of private players, the Indian Insurance Market may finally be able to make deeper penetration in to newer segments and expand the market size manifold. The quality of service will also improve and there will be wide The Life insurance market in India is likely to be risky in the initial stages, but this will improve in the next three to five years Therefore, it may be advantageous to be a second-round entrant. In the Life insurance market the need risk assessment systems and data that are the key to success in the Life insurance market are significantly underdeveloped in India even today.

The Insurance Act, 1938, As Amended By the IRDA Act

The important provisions of the Act, as amended, are briefly outlined as follows:-

Provisions Relating To Insurance:-

Registration

The law requires the insurance Regulatory Authority to register insurers and

suspend/renew their registration. The registration is to be renewed annually.

Investment of funds

The law has made it clear that the insurers shall not invest the funds of the

policyholders outside India either directly or indirectly. (Section 27C). The controlled

funds shall be parked in approved securities within the country. (Section 27A).

Further, the law has made it compulsory that 75 percent of the investible surplus

should be invested in the development of rural infrastructure.

Amalgamation and transfers

If an insurer plans to transfer or amalgamate his business, he will have to follow a

formula charted out in the law. (Sections 35, 36 and 37).

In case an insurer wants to transfer his holding or amalgamate his life insurance

business with any other insurance company, he will have to follow a rigid code set

out by the IRDA.

Capital Adequacy

The minimum paid-up equity of the insurer has to be Rs. 100 crores for life insurance

or general insurance and Rs. 200 crores for re-insurance business.

Deposit with RBI

The registered insurer is required to deposit with the Reserve Bank of India, in cash

or approved securities, a sum equivalent to 1% (life insurance) or 3% (general

insurance), of the total gross premium in any financial year commencing after

commencing after 31st March 2000, subject to a maximum deposit of Rs. 10 crores.

For re-insurance business, the deposit amount is fixed at Rs. 20 crores.

Maintenance of Accounts

The registered insurer shall keep separate accounts of all receipts and payments in

respect of each class of insurance business viz. fire, marine or miscellaneous

insurance; prepare separate account of receipts and payments revenue account for

each class of insurance business, and prepare in respect of the insurance business and

in respect of the shareholders’ funds at the expiration of each financial year, a balance

sheet, a profit and loss account.

Minimum Business

The Act requires every insurer to do a minimum insurance business in the rural or

social sector, as may be specified by the Authority.

Investigation/Inspection

The Authority may order in writing an investigation into the affairs of any insurer by

an investigating authority specified in the order.

Solvency Margin

The provisions also clarify how the assets and liabilities have to be determined and

the extent to which the assets are to exceed the liabilities. These provisions exist to

ensure that the insurer’s solvency is adequate.

Payment of premium before assumption of risk

Insures can assume a risk only after receiving the premium or a guarantee that the

premium shall be paid within the prescribed time. As an alternative, a deposit of such

amount as may be prescribed is to be made in advance.

Inspection/direction etc.

The Act also vests the IRDA with powers to inspect documents, appoint additional

directors, issue directions, take over the management of the insurer through the

appointment of an Administrator to be made by the Central Government.

Protection of policyholder’s interests

Policyholder’s interests are taken care through prohibition of policies being called

into question after 2 years, providing for nominations and assignments.

Settlement of disputes

IRDA has been given the statutory powers to settle disputes amongst the

intermediaries and insurers.

Provisions Relating To Agents / Intermediaries

Insurance intermediaries were also to seek operating licenses from the IRDA, and

these were to be renewed every 3 years.

Definition of Agents

Section 2 (5A) Defines “chief agent” as a person who, not being a salaried employee

of an insurer, in consideration of commission (i) performs any administrative and

organizing function for the insurer and (ii) procures life insurance business for the

insurer by employing or causing to be employed, insurance agents on behalf of the

insurer. Section 2(17) defines “Special agent” for life insurance business in similar

terms. He only procures business through gents but does not perform administrative

functions life a chief agent.

Section 2(17) defines “special agent” for life insurance business in similar terms. He

only procures business through agents but does to perform administrative functions

like a chief agent.

Section 42A of the Insurance Act, being one of the amendments made to the Act in

1950, provides for the registration of chief agents and special agents. Certificates to

function as such are to be issued after registration. The certificates are valid for 12

months and may be renewed. No chief agents were registered till the end of 1999.

This position may change under the new circumstances. Chief agents and special

agents may be registered with IRDA.

Licensing of Agents

In terms of Section 42 of the Insurance Act, 1938, no persons can work as an

insurance agent unless he had obtained a license from the Authority. Licenses will not

be granted to minors and those suffering from any of the disqualifications mentioned

in the Act.

These disqualifications are:

i. Unsoundness of the mind

ii. Conviction generally for criminal misappropriation or breach of trust or

cheating or forgery or abetment or attempt to commit any such offence

iii. Guilty finding or conviction especially for any fraud, dishonesty or

misrepresentation against any insured or insurer.

Collection of premium by Agents

When premium is collected by an agent, he shall deposit with or dispatch by post to the

insurers, the premium in full without deduction of his commission within 24 hours of the

collection excluding bank and postal holidays. If any refund of premium becomes due

because of either the cancellation of the policy or change in the terms and conditions of

the policy, the same shall be paid by the insurer directly to the insured by crossed or order

cheque or by postal money order, and a proper receipt, shall be obtained. Refunds cannot

in any case be credited

Legislative and Regulatory Matters

Market consists of buyers, sellers, intermediaries and regulators. There is hardly any

market, which is not regulated. As between markets, the only difference in the matter

of regulation could be in the degree of regulation, which is exercised in different

markets, but every market is regulated without exception.

For regulating any market, laws are required to be passed by the appropriate

legislature. The market economy has to function within the legal framework.

The Pre-1938 Legislative Scenario

The Indian Life Insurance Companies Act, 1912 and the Provident Fund Insurance

Societies Act, 1912 were the first comprehensive legislations in India to regulate the

business of insurance, as it had been observed that the provisions of Indian

Companies Act did not meet the purpose of insurance sector. A further legislation

was passed in 1928.

The Post-1938 LEGISLATIVE SCENARION

The Insurance Act, 1938

General Insurance Business Nationalization Act, 1972

Highlights of the HRA Bill, 1998

Insurance Regulatory and Development Authority Act, 1999

The Insurance Act, 1938A comprehensive legislation viz. The insurance Act, 1938 was passed with a view “to

consolidate and amend the law relating to the business of insurance”. It came into

force with effect from July 01, 1939.

Important changes were effected in the year 1950 in the Insurance Act, 1938,whereby

provisions were made for the abolition of the chief agents, special agents and

principal agents, the expenses were sought to be limited, investments were controlled

much more, the Insurance Association and Insurance Councils and also Tariff

Advisory Committees were formed as a matter of self-regulation.

After nationalization of the insurance business in 1956, the application of the

Insurance Act, 1938 to the nationalized Life Insurance Corporation of India and the

General Insurance Corporation of India and its subsidiaries was limited.

General Insurance Business Nationalization Act, 1972

General Insurance Business was nationalized in the year 1972 through GIC Act of

1972 through which the general insurance Business off private insurers was

transferred to GIC having its headquarters at Mumbai. The Govt. of India, through

regulation framed 4 subsides to GIC, which were entrusted to control, regulate and

develop general insurance business of the country. The subsidiaries headquarters are:

i. Oriental Insurance Co. - New Delhi

ii. New India Assurance Co. - Mumbai

iii. United India Insurance Co. - Chennai

iv. National Insurance Co. - Kolkata

Highlights of the Ira Bill, 1998

Following the Malhotra Committee recommendations, an interim Insurance

Regulatory Authority (IRA) was set up by the Government and the Insurance

Regulatory Authority Bill providing for comprehensive legislation changes was

moved in the Parliament on 8.12.1998. The IRA BILL proposed substantial

amendments in the Insurance Act, 1938.

The Bill defined an Indian Company in the context of the insurance sector, which is

different from the definition of Indian Company in the companies Act.

The Government fixed a ceiling on the equity structure of Indian Insurance endorsed

the political aspirations of many to have swadeshi companies i.e. companies managed

by Indians, having majority Indian stake and Indian brand name.

The 1998 Bill was re-introduced in 1999 after the Government reviewed the

provisions in the light of the objection sand the new law, the title of the law as

changed to read as the Insurance Regulatory and Development Authority Act,

1999.

This Act was passed by parliament in December 1999 and it received presidential

assent in January 2000. This Act provides for the establishment of the Authority to

protect the interest of holders of insurance policies, to regulate, promote and ensure

orderly growth of insurance industry and for connected therewith or incidental

thereto. It amended the Insurance Act, 1938 and the General Insurance Business

(Nationalization) Act, 1972, thus opening up the insurance sector to private

participation.

Under this Act, an authority called IRDA has been established. This is a corporate

body established for the purpose and objects as set out in the explanation to the title.

The “Authority” replaces “Controller” under Insurance Act 1938. The first schedule

amends Insurance Act 1938. It states that if “Authority” is superseded by the Central

Government, the “Controller of Insurance “may be appointed till such time as

“Authority” is reconstituted.

Section 2 defines Indian insurance company, insurance agents, intermediaries,

insurance intermediaries (including insurance brokers and re-insurance brokers),

insurance consultants, surveyors and loss assessors The Authority has the power to

specify the conditions for registrations of insurance and the qualifications, training

and code of conduct for the intermediaries/agents.

Constitution of the Authority

The IRDA consists of the following members:

i. A Chairperson

ii. Not more than 5 whole-time members

iii. Not more than four part-time members.

To be appointed by the General Government.

They should be among persons of ability, integrity and standing with experience in

life insurance, general insurance, actuarial science, finance, economics, law,

accountancy, administration or any other discipline, through to be useful by the

Central Government. The chairperson, members, officers and other employees of the

Authority shall be public servants under the Indian Penal Code.

Functions of the Authority:-

The following functions are mandated for the Authority:

i. To issue certificate of registration, renew, withdraw, suspend or cancel such

registration.

ii. To protect the interest of the policyholders/insured in the matter of insurance

contract intermediaries and agents.

iii. To specify requisite qualifications, code of conduct and training for insurance

intermediaries and agents.

iv. To specify code of conduct for surveyors/loss assessors.

v. To promote efficiency in the conduct of insurance business.

vi. To Promote and regulate professional organizations connected with the

insurance and reinsurance organizations connected with the insurance and

reinsurance business.

vii. To undertake inspection, conduct enquiries and investigations including audit

of insurers and insurance intermediaries.

viii. To control and regulate the rates, terms and conditions to be offered by

insurer.

ix. To specify the form and manner for maintenance of books of accounts and the

statement of accounts.

x. To regulate investment of funds by the insurance companies.

xi. To supervise the functioning of Tariff Advisory Committee.

xii. To specify the percentage of life and general insurance business to be

undertaken in the rural or social sector.

xiii. To specify the percentage of life and general insurance business to be

undertaken in the rural or social sector.

RESEARCH METHODOLOGY

OBJECTIVES:

To study about the Insurance industry. To study the Job satisfaction of the people working in max new york life

insurance. To know the difficulties face by the employees. To know the facilities provided to the employees.

Type of Data Used

The data used for this research was the primary data.

Procedure in collection of data Procedure used in collection of data is structured questionnaires and mode of data

collection is personal.

SAMPLE PLANSample Size: - 60 Sample Unit Size: - Sampling unit and element for this particular study are the same. Sampling unit used for this research is the people of the Chandigarh region (Chandigarh & Mohali) who are the employees of max new york life insurance.

Sampling technique

Sampling technique used for this study was convenience Technique.

Statistical Tool Used for Data Analysis

Various statistical tools used for data analysis are:

Pie Diagrams

Bar Graphs

Mean

The limitations of the study are: -

1. Some of the respondents of the survey were unwilling to share information and some

of them were biased.

2. The research was carried out in a short period of2 months as a part of summer training.

Therefore the sample size and other parameters were selected accordingly so as to finish

the work within the given time frame.

JOB SATISFACTION OF THE EMPLOYEES WORKING IN MAX NEW YORK LIFE INSURANCE

Q1 what type of job you do?

Pie chart showing division of type job?

Full T ime

Part tinme

Type of job

Pies show counts

6 3. 33 %

3 6. 67 %

It is also important for the study to know that does the job type have an influence

on the satisfaction level of the employee. Here our respondents belong to fulltime

Job in majority, there are 63.33% of the respondent who are doing fulltime job

where only 36.67% of the respondent are doing part time job.

Q2 How much hours do you spend in work?

Pie-Chart showing different timing shifts?

Working hours on an employee is related to job satisfaction to a greater extent. That’s the

main reason behind asking this question. As the working hour graph increases the

satisfaction level of employee also keeps on varying. As in the diagram it is clearly

shown that there are 16.7% of the employees spend 5-6 hours in a day,20% of the

employees spend 7-8 hours,36.7% of the employees spend 10-12 hours and there are

very less number of respondent who spend 26.7% of the time in work.

Q3 are you working overtime?

yes

no

ov ertime

Pies show counts

48.33%51.67%

We got a mix response regarding the overtime working of employees. The

respondents were equally distributed in the sections of one doing

overtime and the one who don’t do overtime. 51.67% don’t agree to the

statement they do overtime while 48.3% of our respondents agreed to the

statement that they do overtime. Hence we categorize our respondent into

two groups.

Respondents doing overtime.

Respondents not doing overtime

Q4 Does your senior’s behavior affects your performance

yes

no

senior's behav iour

Pies show counts

93.33%

6.67%

It is well known that your relationship with others depends upon the behavior other have

towards you. Maximum respondents i.e. 93.33% think that their senior behavior affect

their performance. A low performance leads to dissatisfaction in the job. Hence behavior

of seniors in work environment plays a major role in determining the satisfaction level of

an employee. Only 6.67% of people think that this does not affect the satisfaction level

Q5 which factor influence you to work in this company

It is important for the study to know which factor influence the employees to

work in this company. Growth is the most important factor which influence the

employees to work.

Q6 what are the other facilities do you get from company?

It is important for the study to know what the different facilities employees get from the

company. Most the employees get promotion other facilities such as club membership,

gift items etc.there are few no. of people who get foreign

Q7 Please indicate any difficulty do you face in the job

Most of the respondent facing the difficulty due to work pressure. 28.33% respondent

facing the difficulty due to some other reasons there are less no. of people who face

difficulty due to mode of payment and senior’s behavior. There are 8.33% of the

respondent who don’t face any difficulty.

behaviorof seniors

mode ofpayment

workpressure

other none

6 6

36

7

Q8 Does your senior helps you in decision making &problem solving.

yes

no

senior help in problem solving and decision making

Pies show counts

90.00%

10.00%

It is well known that most of the fresher depends upon the guidance of the

senior .majority of the respondent i.e. 90. % thinks that their senior helps them in

problem solving and decision making.

Q9 Age group of respondent

below 20

20-30

30-40

more then 40

Age

Pies show counts

10.00%

53.33%

33.33%

3.33%

The above question is a part of respondent’s personal information. It gives us the

percentage division of respondents on the bases of their age. Majority to respondent

belong to the age group of 20-30 yrs. Respondent belonging to the age group of above 40

are few in number. Our main focus is on the respondent belonging to the age group of 20-

30 yrs.

Q10 Gender of the Respondent

male

female

gender

Pies show counts

71.67%

28.33%

The above question is a part of respondent’s personal information. It gives us the

percentage division of respondents on the bases of their gender. Majority to respondent

are male i.e. 71.67%. Female respondent are few in number. my main focus is that in

insurance sector still there are less number of female.

11 annual Income of the Respondent

Income level also acts as an important factor in determining the job satisfaction level of

the employee. 54.24% of the respondents are from the income level of above 300000

holding senior position in the organization. Around 20.34% respondents draw their salary

is less then100000. There 23.73% respondent’s draw their salary is less 100000-200000.

There are very less no. of respondent whose income is in between 200000-300000.

41

2216 20

01020304050

<100000 100000-200000

200000-300000

>300000

amount in Rs

Annual Income

FINDINGS

Most of the people doing part time job.

Highest number of employees comes from the age group of 20-30.

Most of the employees have annual income more then 300000 Rs.

Most of the employees’ performance affected by senior’s behavior.

Growth is the most important factor which influences employees to work.

Most of the respondent faces difficulties due to work pressure.

Most of the employees thinks senior help them in decision making and problem.

CONCLUSION

The objective of the project is “Job satisfaction of the employees working in max new york life insurance. For fulfilling this project I have done the survey on 60 people

working in max new york life insurance and I conclude that:

In max new york life insurance work pressure is high. Most of the people between the

age group 20-30 work in this company. Employees get decent salary. Most of the

employees work here because of Growth. Internal growth of the company is very good

decent work. In my opinion to balance the work pressure there must be well organized

teams and work culture.

BIBLIOGRAPHY

INFORMATION BROCHURE

1. Information Brochure of max new york life insuranceICRA Information service, Industry Comment - The Indian Insurance Industry,

Hyderabad, 2002

Insurance Regulatory and Development Authority (Investment) Regulations,

2002, Published in the Gazette of India Extraordinary Part 111 Section 4,

New Delhi 14th August 2000

.

Mukhi, M.D., is Life Insurance a Good Investment, Yogakshema of LIC, November 2001

Mittal, R.K. and Anil Chandhok., Privatization of Insurance Sector in India – Impact and perspective, Indian Journal Marketig, Volume: XXX11, Number 11, November 2002

Sidhartha, looking at the hoary Past, in Business standard: Insurance Survey, 22nd

December, 2000.