report on max new york by JigneshChaudhari

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How protection can be provided:

Life Insurance:

   1) Individuals: The company provides the individual insurance to the people as well as to
      the joint families members as they are insuring the life of people and ensuring the future
      of the family members of the person, as from them you have taken every things from
      them forever. The company has planned to give the protection at the low premium cost.
      Max New York Life Platinum Protect;
      20 year Endowment;
      Life Partner Plus;
      Whole Life Participating;
      Endowment to Age 60;
      Life Gain Endowment;
      Max New York Life Secure Dreams.

   2) Child Plans: Parents of the child take is insurance policy for their child/s for the
      betterment of their future and future needs like higher education and professional courses
      and marriage. The child can be secure even if their parents are not in this world. As this
      policy is getting famous in India as the life style is changing so fastly as foreign life style.
      The company is promising to their customer that this plan will help their children/s to
      dream big and fly high and also to fulfill it with this plan.
      Max New York Life Shiksha Plus

   3) Growth Plans: This plan special for the people who dreams big and wishes it and make it
      come true. This plan provides the people to achieve their goals in the long-term as
      Luxury car, Foreign Holiday or Dream House. This plan mainly for the investment plans
      offering the dual benefit of protection and market-linked returns with the flexibility to
      choose the premium and determine the market exposure.
      Max New York Life Fortune Builder Plan
      Max New York Life SMART Xpress

   4) Pension Plans: This plan helps to the people to think betterment of their future then today.
      The people have to invest small amount of money today and gets the better money
      tomorrow to fulfill their retirement needs at the time of retirement and after that for the
      whole life. If you want to sustain your current lifestyle even after you stop working, make
      that money work for you – company’s line for the people. The people of India are
      adopting the lifestyle of the foreign countries and they are mean to secure their life by
      themselves as they seeing the life of the people who are recently retired from the
      television and by reading newspaper. This type of cases are more than before in India, So
   the young age people are seeing that and securing their retired life from today only and
   live life independent after their retirement.
   Max New York Life SMART Investment Pension Super

5) Health Plans: The cost of the healthcare is climbing faster than any other cost in the life.
   A medical expense is so costly than anyone, anytime and may even force an individual to
   expense from their savings to meet these sudden costs. It also disturbs the savings which
   the person has decided to make at the specific time period and future goals of the person.
   No one can predict it and stop the things which will happen in the future but they can
   secure by taking this type of policy. The person can take it as a individual basis or on the
   family member basis also.
   Life Line Medi-Cash Plus
   Life Line Safety Net
   Life Line Wellness Plus
   Max New York Life Line Healthy Family

6) Group Plans: People are the most valuable asset of any organization. Organizations have
   to innovate newer forms of compensation to retain talented employees. The Organization
   is taking the policy for their employees on behalf of them. They are ensuring the life of
   the employees as well as their family members who are dependent on them. The
   company means that this plan is having three –in-one advantage for organization, as they
   are a powerful tool for motivation, reward and retention, in these times of high attrition
   Group Credit Life
   Group Gratuity cum Term Assurance
   Unit Linked Group Gratuity Plan
   Max Super Life
   Unit Linked Group Superannuation Plan
   Group Term Life
   Employee Deposit Linked Insurance

7) Redundancy (Jobless Plans):
       Why customers need protection?
       The people of the world need protection of their life. So, the people are taking the
       insurance to ensure their needs and wants and also their families. If the person who is
       earner of the family is happened something to his life then the requirement of their family
       members will be fulfill by the amount of insurance. But now-a-days the people are taking
       the policy for protection as well as investment purposes. So, the companies of insurance
       are also providing three main plans like Pure Insurance (Term Plan); Endowment Plan;
       Unit Linked Investment Plan (ULIP). The customer of the company needs the protection
       to ensure that the customer premium amount is safe and it is invested at the safe places
       like debt market and stock market. So, the IRDA has make rule for the insurance
       companies to appoint the agents for the giving the proper and right information to the
       customer and also the company cannot go to insolvency. If the company wants to close
       down then that business should be takeover by the insurance company and the customers
       of that company have to get that benefits and insurable amount to him or to his family
       members at the time of maturity or at anytime whenever the customer demand for that.
       The customer is seeing the protection; investment; future expenses and retirement

When: The link to life cycle events
4.Know your services

Deposit and money transfer: The amount of premium deposits in the debt market as well as the
stock market. If the customer wants to deposits the premium amount directly to the company
then the details is given to the company as well as to the bank where the account of the customer
is there. The company have tie up with some of the special bank to give the some of the
advantage to customer as to deposits their cheques in the bank account directly or pay the
premium amount by online or by cash also can be done.


        They invest only in Government Securities, Treasury Bills, AAA & AA+ related
        Securities and also in Safe & Secure Debt Investments.

Debt:   PPF, Post Office Scheme, Fixed Deposits, Debentures, Bonds, Income Funds

Equity: Individual Stocks, Growth Funds, Sectoral Funds

Banks: Bank Deposits, Liquid Funds


Unit Linked Investment Plan – ULIP (a mix all of the above)

The people meant that it is a good investment as well as protection products for them and they
are investing in this plan to maximize their total returns, tax deduction and inflation over the time
period. The investment is made as per the customer there needs and wants of their life.


Auto: Mahindra & Mahindra, TVS, Maruti Udyog Ltd, etc.

Software: Satyam Computer, TCS, Infosys, Wipro, etc.

Banks: SBI, PNB, ICICI, UTI, BOB, IOB, etc.

Telecom: Bharti Televentures Ltd., Tata Telecom, etc.

Cement: Grasim Ind., Gujarat Ambuja Cement, etc.

Transportation: Shipping Corp. of India Ltd.

Chemicals – Indian Petrochemicals Ltd., Gujarat Alkalies, etc.
Travel: Balmer Lawrie

Consumer Non-Durable: Asian Paints, Nerolac Paints, Tata Tea, Hindu.Lever Ltd., etc.

Consumer Durable: Voltas Ltd.

Unlisted Equity Holdings: India Info line,etc.

Fertilizers: GSFC, Indo Gulf Fertilizers Ltd.

Warrants: Jindal Vijaynagar, Television Eighteen, etc.

Finance: Sundaram Fin. Ltd., Tata Inv. Corp. Ltd.

Ferrous Metals: Tata Iron & Steel Co. Ltd, Jindal Steel & Power Co. Ltd.

Industrial Capital Goods: Bharat Electronics Ltd., BHEL, Bharat Earth Movers Ltd,. etc.

Industrial Products: Finolex Cables Ltd., BOC (I) Ltd., etc.

Media & Entertainment: NDTV, Deccan Chronicle Holdings Ltd., etc.


Petroleum: Reliance Ind. Ltd., IBP Co. Ltd,. BPCL,etc.

Pharmaceuticals: Sun Pharma. Cipla, Glaxo SmithKline, Dr.Reddys, Ranbaxy,etc.

Power: Reliance Energy Ltd., Tata Power Co. Ltd.

If the customer chooses the Balanced Fund then company will invest in Govt. Securities –
21.31%; Corporate Bonds – 28.93%; Cash and Cash equivalents – 19.39%; Equities – 30.37% as
on 31 July 2010.
As on 31-July-2010

Asset Allocation
 As on 31-July-2010

 Asset Allocation

Protection: Company specially gives the services of protection to the customer life by taking the
premium amount of that. The company also protects the premium amount and that amount is
invested at the safe place to earn the return from that and distributes some of the amount to the
customers as a bonus on their premiums. The company is mainly provides the services of life
insurance and also the health insurance. The company has 36 referral tie-ups with banks and 24
partnership distribution alliance marketing relationships each and to sell the products to the rural
and urban areas people.

Specialist Services: The companies specialist services is giving the tax benefit to the customer
that is upto Rs. 1,00,000 of their income which is deducted in under section 80C.

Why customers want to invest ?

The customer want to invest in the insurance sector due to the exemption in the tax, the amount
which is paid as a premium to the company upto Rs. 1,00,000. The customer are getting better
return from that also the protection of their life and betterment of their family members or fulfill
the needs and wants of their family members if they are not more in this world or something
happen to them, that he is only the earning person in the family. Then company pays the
compensation for that.

The customer could be liquid the policy that he can go and surrender his policy or take loan on
them from that company or financial institution also.

The customer finds that there is no risk of the premium which is paid by them only to the
company, they are thinking that there money is invested at that secured and safe place and they
will get good return from that investment. Also they are seeing the protection benefit which is
getting from them.

The customer gets the income when they gets retires from their work and they gets deduction of
1/3 amount which is happen that the time of vesting age (maturity age) in the section 10A. The
customer means that the amount is growth is good than any other instruments as they are
exemption from tax also and there is no risky than any other.

The term of investment on a regular basis i.e., monthly, quarterly, half-yearly, yearly, single
premium also there.

There is tax benefit to the customer that upto Rs. 100000 from the yearly income and 1/3 amount
is exempted at the vesting age (maturity time) in the pension plan under section 10A, that
amount is used for the personal uses.

The benefit for the customer is to take the riders which the company is providing by charging
only low amount on that rider with the existing policy. So, the customer can that the benefit of
that rider if something happen like accident or cancer or diseases which is mention in the
documents and that rider is taken then the customer take the compensation on that or the
company pays the amount back if the person is having last stage of cancer or pays all the
expenses which will be incurred and at the time of the death the company pays the sum assured
to their family members. The customer also not pays the amount of the premium then also the
policy will not be terminated till the amount which is deposited in the company in the ULIP plan.
The premiums paid under this plan qualify for a deduction under Section 80C of the Income Tax
Act, while the maturity benefits are exempt from tax under Section 10(10D) of the Income Tax
   This benefit is given in the Smart Xpress plan 12 re-directions; 12 switches; 12 partial
   withdrawals; Protection through increased Sum Assured, which can stretch up to 30 times of
   annual premium. The benefits of the plan are differs on the company’s products and with the
   other products of the same company is there. But, some of the features are same in the plan and
   category of the plan is same only.

   How: types of investment/financial services products?

   The customer can pays in the lump sums or regular basis also as per the saving of the customer.
   They can pay their premium in the insurance policy. In insurance company there are mainly one
   category i.e. ULIP plans, in that there products like full amount of premium is invested in
   Equities or in Debt market, or in both the funds it is equally invested that is dependent on the
   customer decisions.

   Safeguards for the customer:

 IRDA has made the rules that the customer can compliant about any of the agents or company
  online also and if that compliant is find true then the license of the agent is cancelled and the
  agent should of the age of 18 years and of sound minded. The agent is appointed when he is
  educated and passed till 12th std. in rural areas and 10th std. in the urban areas and he has to give
  exam of IRDA and pass the screening test of the company. If the agents sell the policy on giving
  the wrong information of the policy then the agent’s license will be cancelled and company has
  to pay the compensation. MAX New York Life 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 given proper training to ensure that they meet up the company standard in
  terms of giving service and advice to the customers. The agent advisors are trained in-house to
  ensure optimal control on quality of training.

          A customer has the legal right to know what information your business holds about them.
          A customer can contact you in writing to request: what information you have; what it is
           being used for; how it was obtained; and if it is being passed onto third parties.
          If you do not respond to the customer request, or if the customer feels your response is
           unsatisfactory, they may contact the Information Commissioner’s Office to complain.
          If the customer believes you have breached the Data Protection Act, they may contact the
           Information Commissioner’s Office to complain.
          A privacy policy informs customers of your registration under the Data Protection Act.
          It states your procedures for taking, processing and storing customer details.
          It is not legal requirement to have a privacy policy.
          1.Purpose of the relationship

          Max New York life is creating a partnership for life with its customers in India.

          Choice of delivery channel of life insurance for the customer and the organization in MYNL:

          Channels for customers :

          MNYL has mainly used ZERO Level channels to sell its products to the customers. This helps in
          removal of the intermediaries, which dilutes the profit. The franchisee model, rural business,
          direct sales force involving group insurance and telemarketing scopes, bank assurance and
          corporate alliances. The various channels employed are:-

        Insurance Agents
        Direct Selling Agents
        Internet
        Banc-assurance (First level): Here the Banks act as a mediator between MNYL & the customer.
          Hence it comes under the First Level Channel for distribution.

          Eg: It has tied up with Andhra Pradesh Rural Bank to distribute its products.

          Different Channels of Distribution

i)        Agency Channel:-
          In MNYL, business is done mainly through Agent Advisor. In India it has more than 55000
          agents. Two Programs are run under Agency Channel
        AAP (Agency Association Program)
        CEIP
ii)       Banc assurance:-
          Banc assurance is an innovative distribution channel involving banks to sell insurance products
          of Insurance Companies. MNYL has tied up with several banks
iii)      Direct Sales Team(DST):-
          Max New York Life Insurance makes a data base of potential customers; contact them on the
          telephone to market different policy of the company.
iv)        Alternate channel:-
Business is done through associate partners, internet etc.

Corporate responsibility and ethics:

Max New York Life Insurance believes that as a corporate it has a responsibility to engage with
the society it operates in. This engagement should go beyond providing right products for their
needs and being ethical and honest in our business practices. Corporate Social Responsibility is
largely defined as a commitment to behave ethically and contribute to economic development
while improving the quality of life of our workforce and their families as well as the local
community at large. the most popular life insurance company in India, MAX New York Life has
developed a strong corporate governance model. It is based on the core values of excellence,
honesty, knowledge, care, integrity and teamwork as well. The strategy is to establish itself as a
trusted life insurance brand through top quality approach towards business. Max New York Life
Insurance believes in caring for the society and has decided to focus on providing a safe and
secure future to the children in the age group 0-12 years. The company works closely with Max
India Foundation, an independent social service organization of Max India Group. The company
has taken up immunization as its societal agenda to ensure protection against major ailments for
the next generation of the country. The company’s immunization program has provides
immunization shots to children through immunization camps across the country. The
Immunization Program covers vaccines like BCG, Hepatitis B vaccine, Polio drops, DPT, D Tap,
Measles vaccine, MMR, Typhoid, dT and TT. Since July 2008, when the immunization program
was initiated, Max New York Life Insurance has provided vaccines to over 10,000 children in
around 60 locations. In 2009, the first full year of immunization program, Max New York Life
provided 13,486 immunization shots to 5,155 children through 109 camps.

Importance of the contractual relationship with customers in MYNL:

       MNYL issues Policies to its customers in quick time and with maximum accuracy.
       We take pride in our fast settlement of Claims and demonstrate reliability and trust
       amongst our customers
       We have effective touch points for our customers which are regularly working towards
       resolving customers queries and needs.
       MNYL is constantly designing products keeping in mind long term customer benefits and
       responsibly fulfill the regulatory requirements.
       We have processes which are customers friendly and are periodically reviewed to make
       them in line with the requirements of the Customer.
2.Types of customer:

The company are dealing with the two broad category customers on a daily basis:

Individuals and Corporate bodies.

The company is giving the various products plan to the individual and corporate. Protection;
children; investment; retirement; health; savings; rural; strategic products are the individuals

3.Know your customer

Regulatory: Customer identification, Money laundering, Selling.

       Most of the insurance companies now-a-days tie-up with the banks and financial
       institutions to sell the insurance policies. The banks are keeping look on the customer’s
       account on a daily basis or on a yearly basis, then the bank are giving advice about the
       products and agent of the company are going to giving the brief information or explaining
       the products and concise the customer to take that product from them only. This way the
       company are doing the marketing for their products by other innovative ways.

       Money Laundering

       The remittances of premium is paid by cash is to be capped at Rs 50,000 with insurers
       permitted to place lower caps. Insurers are also required to report integrally connected
       cash transactions above Rs 10 lakh in a month. Insurers are required to obtain documents
       to clearly establish the identity of the customer in case of new policies. In cases where the
       premium is Rs 1 lakh per annum for individual policies, the KYC norms need to be
       adhered to diligently. Moreover, if the premium is paid by another person, the insurer
       will be required to establish the motive behind it.

       Non-regulatory issues:

       Role and personal skills of the customer advisor:

       A clear understating of customer needs and expectations across the organizations
Manage business processes to produce a product or service confirming to customer
Deliver effective Customer results, through better utilization of resources
Use fact based decision-making approaches.

Development and selection of an agents:

   o   Recruitment of agents
   o   Development of agent prospecting habits, calling habits and work habits
   o   Daily fast tracking of prospecting habits and successful work habits and field
   o   Supervise the activity plan of all agents to ensure that these are being fulfilled as
       per the desired levels
   o   Conduct weekly performance review (PRP) with agents
   o   Help agents for maximizing business from a given target market.
   o   Ensure that agents under supervision perform as per the company’s rules and

Identifying customer needs:
The company is training the agents as they should give the plan as per the customer’s
need. The customer’s need is differ as their expectation and perception of the customer.
So, the agent should now or ask about the various questions regarding their expectation
of their future needs. Then, the agent of the company is to give advice of the particular
plan and give the information regarding the benefits of that plan to customer.

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