sonika report

8/7/2019 sonika report

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A

Summer Training Report

On

CUSTOMER PERCEPTION ABOUT INSURANCE

AT

MAX NEW YORK LIFE INSURANCE

KARNAL

In partial fulfillment of the requirement for the Degree

Of

MASTERS OF BUSINESS ADMINISTRATION

SESSION (2009-2011)

SUBMITTED TO: - SUBMITTED BY:-KURUKSHETRA UNIVERSITY SONIKA KALYAN

KURUKSHETRA MBA 2ND YEAR

DEPARTMENT OF BUSINESS ADMINSTRATION

GEETA INSTITUTE OF MANAGEMENT & TECHNOLOGY

KANIPLA , KURUKSHETRA


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ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or indirectly

contributed in the development of this work and who influenced my thinking, behavior, and

acts during the course of study.

I express my sincere gratitude to Dr.Sourabh Gupta, worthy Principal for

providing me an opportunity to undergo summer training at

Max life insurance.

I want to convey my gratitude to my guide HODDr. Pooja Malhotra for her

support and guidance.

I am thankful to Mr Vikas Chauhan for his support, cooperation, and

motivation provided to me during the training for constant inspiration, presence and

blessings.

Lastly, I would like to thank the almighty and my parents for their moral support

and my friends with whom I shared my day-to-day experience and received lots of

suggestions that improved my quality of work.

Sonika kalyan


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DECLARATION

I, Sonika Kalyan, student of MBA IInd year, studying at Geeta Institute of management &

technology , Kurukshetra, hereby declare that the summer training report on customer

perception in insurance regarding max life insurance submitted to Kurukshetra University,

Kurkshetra in partial fulfillment of Degree of Masters of Business Administration is the

original work conducted by me.

The information and data given in the report is authentic to the best of my knowledge.

This summer training report is not being submitted to any other University for award of any

other Degree, Diploma and Fellowship.

Sonika kalyan


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TABLE OF CONTENTS

CHAPTER

NO. TITLE

PAGE

NO.

1 INTRODUCTION 6

2 RESEARCH METHODOLOGY 25

3 INDUSTRY PROFILE 28

4 COMPANY PROFILE 37

5 DATA ANALYSIS 43

6 FINDINGS & SUGGESTIONS 54

7 CONCLUSION 66

BIBLIOGRAPHY 68

ANNEXURES 70

ABBREVATIONS 72


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CHAPTER -1

INTRODUCTION


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CONSUMER PERCEPTION

Indian insurance industry is emerging rapidly after year 2000. To survive in these highly

competitive scenario managers will bring pressure to improve quality and skilled people.

Collective efforts of the employer manager and other relative people assume relevance in this

context and thus their marketing management and human resources play an important role.I

have made an attempt to study this aspect of insurance industry in my project.

Perception is a mental process, whereby an individual selects data or information from the

environment, organizes it and draws significance or meaning from it.

Perception is a basically a cognitive or thinking process and an individuals activities,

emotions, feelings etc. are based on his perception of his perception of his surroundings or

environment.

Perception being an intellectual and cognitive process will be subjective in nature. This

means that different people may perceive the same environment differently based on the

effect of the environment.

Characteristics Affecting Perception:

Characteristic effecting perception can be divided into sensory elements and structural

elements.

Colourhas important sensory connotations. Evidence suggests that red is regarded as warm,

sensual and not intimidating. Blue is seen as conforming and is regarded to be colour that

attempts to convey friendlier image. Pepsi attempt to cash on the blue colour of the Indian

cricket team during the recent World Cup cricket matches has received a similar response.

Many retailers in Mumbai call it Ghaslet Pepsi. This is because Indians are more used to

identify blue with kerosene and their long term association with blue colour of kerosene led

to call blue Pepsi as Ghaslet Pepsi.


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Taste is another sensory factor that will condition consumers brand perceptions. The

importance of taste is illustrated by P&G blunder when it first introduced Pringles potato

chips. The chips were packed in an easy-to-stack cylindrical can to avoid breakage of chips.

The consumers responded by saying that the packaging resembles a tennis ball can. Further

consumers felt that the chips tasted like tennis ball.

Smell is important for food products and cosmetics products. In one study, two fragrances

were added to the same facial tissue. Consumers perceived one facial issue as elegant and

expensive and the other as a product to use in the kitchen.

Sound is another important sensory stimulus. Advertisers have traditionally used accent to

convey status and authority. Even in case of serials, voice is being used to create an impact

on the masses. The Binaca geetmala was characterised by the voice of Amin Sayani.

Feel of certain products will also influence consumers perceptions. Softness is considered a

desirable attribute in many paper products. Feel is also a means of determining quality.

Consumer often use of a textile fabric, clothing, carpeting, or furniture to evaluate quality.

For example, a smooth, velvety feel in textile fabrics is considered an indication of quality.

Consumer Characteristics Affecting Perception:

Stimulus Discrimination: One of the basic questions regarding the effect of marketing

stimuli. The ability to discriminate among stimuli is learned. Generally, frequent users of a

product are better able to notice small difference in product characteristic between brands.

Threshold levels: The ability of consumer to detect the various in sensory elements is

determined by their threshold level. Some consumers are more sensitive to these stimuli than

others. This will be quite clear from the fact tea and coffee companies employ persons called

tea or coffee tasters.

Webers Law: It states that the stronger the stimulus, the greater the change required for the

stimulus to be seen as different. The most important application of this law is in price. One

critical implication is that the higher the original price of an item, the greater the markdown


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required to increase sales. For e.g. If price of a Mercedes Benz S class is reduced by 25000/-,

it will not have any impact on sales because the basic price is in several Lakhs that a

difference of Rs25000/- may not be noticeable for consumers. On the other hand a price

reduction of even Rs5000/- for a maruti 800 is seen to push sales substantially because of its

low original price.

Absolute Threshold:It is stimulus below which consumers cannot detect the stimulus at all.

It is also referred to as subliminal perception .i.e. perception of stimulus below the conscious

level. One of the major controversies regarding consumer perceptions is whether consumers

can actually perceive marketing stimuli below their absolute level.

Adaptation law: It is the level at which consumers no longer notice a frequently repeated

stimulus. An individual walking into an air-conditioned room, kitchen full of fragrance, or a

noisy party will notice these stimuli after a period of time. Consumer differs in their level of

adaptation. Some tune out more quickly then others. Novelty, humour, contrast, and

movement are all stimulus effects that may gain consumers attention and reduce their

attention and reduce their adaptation.

Price and Quality Perceptions:Price perceptions directly influence consumers perceptions

of brand quality and determine their purchasing behaviour. For e.g. Parker pens were

positioned as expensive, hand finished pens. In order to achieve large volume of growth and

to share a pie of the explosive growing ballpoints, Parker entered this market for cheap pens

moving away from its traditional positioning. The results were disastrous because companys

image was not consistent with its price. In the late eighties, it moved back to its strength, high

priced fountain pens, with an ad campaign featuring style and luxury. This shift made the

company profitable again.


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Customer perception of relationship between buyer and

seller

It is impossible to set up any yardstick for relationship between a buyer and a seller. No two

organizations can have similar set of rules for maintaining relationship. Even if on a

particular occasion a situation prompted a particular behavior, it is not necessary that a

similar behavior is necessary on another occasion. The time, place and group of person might

be the same but behave in different way, though circumstances and situations might be

identical.

To a great extent relationship depends upon the: character of contracting parties. This is thus

a study of human behavior and forms part of the behavioral science. Here the contracting

parties do not mean only those who are in direct contact but also include those who might be

present around. No person is acting in isolation. Therefore, there is always an influence of

surroundings on human behavior.

A buyer is also a seller. A seller is also a buyer. Both could also be customers. To make the

point clear let us take the example of a trader who buys goods for resale or a buyer who buys

goods and then sells it after value addition. Therefore , you can not show same behavior when

you are in the role of a buyer as then your priorities are different then when you are in the

role of a seller.

Let us for some time consider our own behavior in our own house with our family members.

Are we at all times act in similar manner in a given set of situation? Perhaps not! What are

the factors that motivate our behavior?

It is my sincere opinion that our senses, mental state of mind and our capacity of physical

endurance to react to given situation play an important role in our behavior as seller, buyer or

customer. At no two given time perhaps we are in alike condition. Our behavior will

therefore, show different relationships. The relationship is product of our own emotions. We

may be have more or less in similar given condition if we can control our emotions. This is

very difficult if perhaps not impossible.


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CHAPTER-2

RESEARCH METHODOLOGY


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RESEARCH METHODOLOGY

Research methodology refers to the search for Knowledge. It is a way to systematically solve

the research problem. In it we study the various steps that are generally adopted by the

researcher in studying his research problem along with logic behind them.

Research Methodology concerning a research problem or study provide answers to various

questions like; why a research study has been undertaken, how the research problem has been

defined, what data have been collected and what particular method has been adopted to

collect the data, what technique has been used for analyzing the data and a host of similarother questions

OBJECTIVE OF THE STUDY

To know about the various investment alternatives that is mostly preferred by the

people.

To find out the important criteria that the people think about before investing in a life

insurance policy.

To find out whether gender bias involved in investing life insurance or not.

To find out the awareness of Max New York Life Insurance among the people

Research Design

The research problem having been formulated in clear cut terms, the researcher will be

required to prepare a research design i.e., he will have to state the conceptual structure with in

which research would be conducted. The preparation of such a design facilitates research to

be as efficient as possible yielding maximal information. But how all there can be achieved

depends mainly on the research purpose. Research purpose may be grouped into four

categories.

1. Exploration


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2.Description

Exploratory research studies are those whose main purpose is that of formulating a

problem for more precise investigation or of developing the working hypotheses from on

operational point of view.

Descriptive research studies are those studies which are concerned with describing the

characteristics of a particular individual, or of a group.

Scope of the study

The result of this research would help the company to have a better understanding

about the consumers perception towards life insurance.

The study helps the company by creating awareness about the consumers of different

ages and income levels.

The study also enables the company to focus the consumers preferences and

expectations on the product which they offer.

Sample Design

All the items under consideration in any field of inquiry constitute a Universe or

Population. A complete enumeration of all the items in the population is known as a census

inquiry. This type of inquiry involves a great ideal of time, money and energy. Hence quite

often a few items so selected constitute what is technically called a sample.

Probability samples are those based on simple random sampling, systematic sampling , etc

where as non probability samples are those based on convenient sampling, judgment

sampling etc.

Data collection techniques

The required data is collected both from primary as well as secondary sources.

Primary Sources: The primary data was collected through structured unbiased questionnaire


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and personal interviews of investors. For this purpose questionnaire included were both open

ended & close ended & multiple-choice questions.

Secondary Sources: Secondary data is the data, which is collected and complied for

different purposes, which are used in research for this study. The secondary data includes

material collected from:-

Megazines & Bulletines- Brochure of max life insurance

Size of samples

The overall sample involved in the study consisted of 50 individuals. Keeping in view the

limited resources of time, a limited sample of individuals. It was fixed before hand and every

effort was made to cover the given number of individuals with available time for the

collection of data for this project. The data was collected with the help of the questionnaire

herself by the researcher.

Method used for analysis of study

The methodology used for this purpose is Survey and Questionnaire Method. It is a time

consuming and expensive method and requires more administrative planning and supervision.

It is also subjective to interviewer bias or distortion.


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CHAPTER-3

INDUSTRY PROFILE


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INSURANCE INDUSTRY IN INDIA

The business of insurance is related to the protection of the economic values of assets. Every

asset has a value. The asset would have been created through the efforts of the owner. The

asset is valuable to the owner, because he expects to get some benefits from it. The benefit

may be an income or some thing else. It is a benefit because it meets some of his needs. In the

case of a factory or a cow, the product generated by it sold and income generated. In the case

of motor car, it provides comfort and convenience in transportation. There is no direct

income.

Every asset is expected to last for a certain period of time during which it will perform. After

that, the benefit may not be available. There is a life-time for a machine in a factory or a cow

or a motor car. None of them will last for ever. The owner is aware of this and he can so

manage his affairs that by the end of that period or life-time, a value or income is not lost.

However, the asset may get lost earlier. An accident or some other unfortunate event may

destroy it or make it non-functional. In that case, the owner and those deriving benefits there

from, would be deprived of the benefit and the planned substitute would not have been ready.There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the

effect of such adverse situations.

Brief history of insurance

The business of insurance started with marine business. Traders, who used to gather in the

Lloyds coffee house in London agreed to share the losses to their goods while being carriedby ships. The losses used to occur because of pirates who robbed on the high seas or because

of bad weather spoiling the goods or sinking the ship. The first insurance policy was issued in

1583 in England. In India insurance began in 1870 with life insurance being transacted by an

English company, the European and the Albert. The first Indian insurance company was the

Bombay Mutual Assurance Society Ltd, formed in 1870. This was followed by the Oriental

Life Assurance co. in 1874, the Bharat in 1896 and the Empire of India in 1897.

Later, the Hindustan Cooperative was formed in Calcutta, the United India in Madras, the

Bombay Life in Bombay, the National in Calcutta, the New India in Bombay, the Jupiter in


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Bombay and the Lakshmi in New Delhi. These were all Indian companies, started as a result

of the swadeshi movement in the early 1900s. by the year 1956, when the life insurance

business was nationalized and the Life Insurance corporation of India (LIC) was formed on

1st September 1956, there were 170 companies and 75 provident fund societies transacting

life insurance business in India. After the amendments to the relevant laws in 1999, the L.I.C.

did not have the exclusive privilege of doing life insurance business in India. By 31.3.2002,

eleven new insurers had been registered and had begun to transact life insurance business in

India.

Insurance Sector Reforms In India

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N.

Malhotra- was formed to evaluate the Indian insurance industry and recommend its future

direction. The Malhotra committee was aimed at creating a more efficient and competitive

financial system suitable for the requirements of the economy keeping in mind the structural

changes currently underway and recognizing that insurance is an important part of the overall

financial system where it was necessary to address the need for similar reforms. In 1994, the

committee submitted the report and some of the key recommendations included:

i) Structure: Government stake in the insurance Companies to be brought down to 50%.

Government should take over the holdings of GIC and its subsidiaries so that these

subsidiaries can act as independent corporations. All the insurance companies should be

given greater freedom to operate.

ii) Competition: Private Companies with a minimum paid up capital of Rs.1bn should be

allowed to enter the sector. No Company should deal in both Life and General Insurance

through a single entity. Foreign companies may be allowed to enter the industry in

collaboration with the domestic companies. Postal Life Insurance should be allowed to

operate in the rural market. Only one State Level Life Insurance Company should be allowed

to operate in each state.

iii) Regulatory Body: The Insurance Act should be changed. An Insurance Regulatory body

should be set up. Controller of Insurance- a part of the Finance Ministry- should be made

independent.


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iv) Investments: Mandatory Investments of LIC Life Fund in government securities to be

reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any

company (there current holdings to be brought down to this level over a period of time).

v) Customer Service: LIC should pay interest on delays in payments beyond 30 days.

Insurance companies must be encouraged to set up unit linked pension plans.

Computerization of operations and updating of technology to be carried out in the insurance

industry.

The committee felt the need to provide greater autonomy to insurance companies in order to

improve their performance and enable them to act as independent companies with economic

motives. For this purpose, it had proposed setting up an independent regulatory body- The

Insurance Regulatory and Development Authority.

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in April

2000 has fastidiously stuck to its schedule of framing regulations and registering the private

sector insurance companies. Since being set up as an independent statutory body the IRDA

has put in a framework of globally compatible regulations. The other decision taken

simultaneously to provide the supporting systems to the insurance sector and in particular thelife insurance companies was the launch of the IRDA online service for issue and renewal of

licenses to agents. The approval of institutions for imparting training to agents has also

ensured that the insurance companies would have a trained workforce of insurance agents in

place to sell their products.


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PRIVATE PLAYERS IN THE LIFE INSURANCE

SECTOR

The different private players in the life insurance sector and their associations with foreign

companies are being given below:

COMPANY INDIAN

PROMOTER/PARTNER

FOREIGN

INSURER

TOTAL

CAPITAL

(RS MN.)

FDI

(%)

FOREIGN

CAPITAL

(RS MN.)

AMP

SANMAR

RELIANCE

GROUP(ADAG)

None 2,170 0 0

Aviva Life Dabur Aviva (UK) 4,590 26 1193.4

Bajaj-

Allianz

Bajaj Auto Allianz

(Germany)

3680 26 960

Birla Sun

Life

Aditya Birla Group SunLife (Canada) 4,000 26 1,040

HDFCStandard

HDFC StandardLife(UK)

2,500 18.9 470

ICICI

Prudential

ICICI Bank Prudential (UK) 10,850 26 2,820

ING Vysya Vysya Bank ING Ins.

(Netherlands)

4,400 26 680

Kotak

Mahindra

Old Mutual

Kotak Mahindra Bank OldMutual (South

Africa)

2,600 26 680

Max

Newyork

Max India NewYorkLife

(US)

5,000 26 1,300

Met Life J&K Bank Met Life (US) 3,550 26 920

Sahara Life

Ins. I

Sahara India None 1,000 0 0

SBI Life SBI Cardiff (France) 3,500 26 910

TATA AIG TATA Group AIG (US) 3,810 26 990

Shriram Shriram Sanlam Life Ins.


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Bharti AXA Bharti Group AXA(Australia)

Source-www.max newyorklife.com

Some of the new companies who are waiting to come in to the life insurance sector are:a. IDBI-FORTIS.

b. Syndicate Bank
http://www.max/http://www.max/http://www.max/http://www.max/


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CHAPTER- 4

COMPANY PROFILE


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INTRODUCTION

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.

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 programme and each agent is trainedfor 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 programme

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.

201 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership

in 2005. MDRT is an exclusive congregation of the worlds top selling insurance agents and

is internationally recognized as the standard of excellence in the life insurance business.

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 is

using a five-pronged strategy to pursue alternative channels of distribution. These include the

franchisee model, rural business, direct sales force involving group insurance and

telemarketing opportunities and corporate alliances.


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Max New York Life offers a suite of flexible products. It now has 26 life insurance products

and 8 riders that can be customized to have more than 400 products.

Company vision, mission and values:

Vision

To become the most admired life Insurance Company in India.

Mission

To become one of the top quartile life Insurance companies in India.

Be a national player.

Be the brand of the first Choice.

Be the Employer of the Choice.

Become principal of choice for agents.

Values

This vision to become India's most admired life insurance company will be realized

through our unique set of values, which are as follows:

Achievements

1 First life insurance Company in India to have IS0 9001:2000 certifications.

2 Top five most respected private life insurance in India according to Business World

survey.

3 Continuous presence in Top 50 MDRT global list.

Board of directors

Mr. Analjit Singh is the Founder and Executive Chairman of the Max India Group. He has

been the driving force behind the Max Group's sustained growth and success since Mid 80s.

In 2000 The Company reinvented and restructured itself. Today Max India is in the

business of 'Life':

Protecting Life through Max New York Life

Caring for Life through Max Healthcare

Improving Life through Neeman Medical International - Clinical Research

He is a member of the Prime Minister's 10 member Joint Indo US CEOs Forum; Indo


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Italian CEO Forum; Director on the Board of IDBI, Vodafone Essar, Hero Honda Motors

Limited; Member Governing Board of Bharti Foundation; Chairman - International, CII;

Member - Overseas Indian Facilitation Centre (OIFC), Ministry of Overseas Indian Affairs,

GOI; Member, CII - Singapore CEO Group; Member Executive, National Council and

Healthcare committee of CII. In addition, Chairman, Board of Governors of the Doon

School and an Executive Board member of the Board of Governors of the Indian School of

Business.

Mr. Anuroop Singh was appointed as a Chief Executive Officer and Managing Director of

the company with effect from February 23, 2001 till December 31, 2004. He is currently

the Vice Chairman of the company. He is also a Director on the Board of other corporate

entities including philanthropies.

Mr. Anuroop Singh is a Chartered Accountant with over three decades of experience in

the financial services sector . Hehas been the Country General Manager for retail banking

at Bank of America for five years. Mr. Singh worked for 15 years in various positions with

American Express, establishing the company in several countries. Mr. Singh worked with

A.F. Ferguson and Co., a leading firm of public accountants in India, as a Management

Consultant for two years. He also worked overseas, with Ernst & Young.

Having built a number of successful businesses, he is now pursuing Board level

engagements with select professionally managed and value driven organizations, which aim

to leverage the full potential of an active Board


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REWARD AND RECOGNITION


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1) Premium Leader

Qualifying Criteria- Rs. 1 Lakh AFYP in a month

Reward and Recognition- Mention in leaders Report, Lunch


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2) Ten-A-Monther

Qualifying Criteria- 10 applications in a month and Rs. 30,000 AFYP

Reward and Recognition- MNYL Crystal Glass, mention in Leaders Report,

Lunch.

3) Hi-Flier

Qualifying Criteria- 20 applications in a month

Reward and Recognition- MNYL Silver Medal, MNYL Crystal Glass, Mention in

Leaders Report, Lunch

4) Career Success Award

Qualifying Criteria- 15 paid cases & Rs. 40,000 FYC at the end of month 3

Reward and Recognition- Recognition Award

5) Career Producer Award

Qualifying Criteria- 25 paid cases & Rs. 80,000 FYC at the end of month 6


6) Career Foundation Club

Qualifying Criteria- 50 paid cases & Rs. 1.8 lakhs FYC in July- June for

Recruits during this period.

Reward and Recognition- Attend CFC meeting to be held at Zone level

7) Paid Case, FYC, Persistency, rider, Referral and CEIP Leader

Qualifying Criteria- Top Agent in each category in each GO

Reward and Recognition- Recognition Plaque

8) Agent of the Year

Qualifying Criteria- Highest Points in each GO


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9) Centurion

Qualifying Criteria- 100 net paid cases in a year

Reward and Recognition- Centurion Trophy

10) Paul Cogan Trophy

Qualifying Criteria- Highest FYC with 100 or more paid cases and 95%

Or more 13th month persistency

Reward and Recognition- Recognition Trophy

11) Executive Council

Qualifying Criteria- July 2006 to June 2007: 4,30,000 Council Credits

January 07 to June 07: 1,60,000 Council Credits

40 paid cases in the Council

Period.

Reward and Recognition- Trip to Malaysia to attend the Executive Council

Meeting.

12) MDRT (Million Dollar Round Table)

Qualifying Criteria- MDRT FYC Rs. 7,19,800 Premium Rs.14,39,600

Reward and Recognition- MDRT dues for all qualifiers. Top 35 by FYC will

Bear domestic travel and visa costs. Next 15 will bear

Registration fees, domestic travel and visa costs. Rest

All will bear international airfare, domestic travel andVisa costs.

PRODUCTS OF MAX NEW YORK LIFE INSURANCE


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Life Plans

Life is full of surprises. Unexpected events that strike without warning can disrupt the

smooth rhythm of life. You must be prepared at all times. As the primary earning

member, you need to make sure that your family is never lacking in anything even if you

are taken away from them forever. Do your best today to ensure that your family can

always enjoy a comfortable lifestyle. In double income families, both spouses should get

adequate life covers especially if there are dependent children involved. We have plans

that guarantee maximum protection at a low cost.

Five Yr Renewable and Convertible

Level Term Policy

Whole Life Participating

Life Gain Plus 25 (Par)

20 year Endowment (Par)

Life Pay Money Back

Endowment to Age 60 (Par)

Life Gain Endowment

Life Gain Plus 20 (Par)

Life Partner Plus

OTHER PLANS

1 Whole Life Plans

2 Unit Linked Insurance Plans

3 Endowment Plans


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4 Children Plan

5 Money Back Plans

6 Pension Plans

7 Health & Accident Related Riders


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Fig. No.5.1

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 62% of the respondents are already insured.

b) 38% of the respondents are not insured.

No. of Respondents

Yes

No


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Satisfaction level of current insurer

Table No.2Particulars No. of Respondents Percentage

Yes 28 56%

No 22 44%

Total 50 100%

Source: Survey Result

Fig. No. 2

ANALYSIS:

No. of Respondents

Yes

No


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a) 82% of the respondents are satisfied.

b) 18% of the respondents are not satisfied.

Favorite insurance company

Table No.3

Particulars No. of Respondents Percentage

LIC 24 48%

MAX new York life 7 14%

HDFC 5 10%

Birla Sun Life 4 8%

Bajaj Allianz 4 8%

Others 6 12%

Total 50 100%


Fig.No.3

Share in %

AA


a) 48% of the respondents likes LIC.

b) 14% of the respondents likes mnyl.c) 10% of the respondents likes HDFC.

0

0.1

0.2

0.3

0.4

0.5

0.6

LIC MYNL HDFC Birla Sun BajajAllianz

Others

Insurance companies


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d) 8% of the respondents likes Birla Sun Life.

e) 8% of the respondents likes Bajaj Allianz.

Interest in the products offered by Max New York

Table No.4


Yes 30 60%

No 12 24%

Cant Say 8 16%Total 50 100%


Fig. No.4

ANALYSIS:


a) 60% of the respondents are attracted towards MNYL products.

b) 24% of the respondents are not attracted towards MNYL products.

c) 16% of the respondents Cant Say about it.


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Main concern while taking an insurance policy

Table No.5


Tax Benefit 20 40%

Security 16 32%Investments/Savings 14 28%

Total 50 100%


Fig. No.5

No. of Respondents

2016 14

0

5

10

15

20

25

TaxBe

nefit

Securit

y

Inve

stmen

t/Saving

s

Series1


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ANALYSIS:


a) 40% of the respondents are concerned about Tax Benefit.

b) 32% of the respondents are concerned about their Security.

c) 28% of the respondents are concerned about Investment/Savings.

Satisfaction of financial needs (Please rate on the scale)

Table No.5.6

Rating No. of Respondents Percentage

1 9 18%

2 9 18%

3 8 16%

4 10 20%

5 14 28%Total 50 100%


Fig. No.5.6


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ANALYSIS:


a) 18% of the respondents are Highly unsatisfied.

b) 18% of the respondents are Unsatisfied.

c) 16% of the respondents are Moderate.

d) 20% of the respondents are Satisfied.

e) 28% of the respondents are Highly satisfied.

Premiums paid for the policy

Table No. 5.7


Very High 14 28%

High 11 22%Moderate 13 26%

1

2

3

4

5 1

2

3

4

5


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Low 8 16%

Very Low 4 8%

Total 50 100%


Fig. No.5.7

ANALYSIS:


a) 28% of the respondents think that Premium is Very High.

b) 22% of the respondents think that Premium is High.

c) 23% of the respondents think that Premium is Moderate.

d) 15% of the respondents think that Premium is Low.

e) 12% of the respondents think that Premium is Very Low.

Policy recommendations

Table No.5.8


Advertisements 10 20%

Friends and Relatives 12 24%

Direct Selling Agents 21 42%

Others 7 14%

Total 50 100%Source: Survey Result

14

1113

8

4

No. o f Respondents

Very High

High

Moderate

Low

Very Low


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Fig.No.5.8

ANALYSIS: From the survey it was found that amongst 50 respondents

a) 20% of the respondents know about it from Advertisements.

b) 24% of the respondents know about it from Friends and Relatives.

c) 42% of the respondents know about it from Direct Selling Agents.

d) 14% of the respondents know about it from Other Sources.

Incentives (tax benefits or Bonuses)

Table No.5.9

Rating No. of Respondents Percentage

Highly satisfied 9 18%

Satisfied 12 24%

Moderate 10 20%

Unsatisfied 11 22%

Highly Unsatisfied 8 16%

Total 50 100%


No. of Respondents

10

1221

7

Advertisements

Friends and Relatives

Direct Selling Agents

Others


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Fig. No.5.9

ANALYSIS:


a) 18% of the respondents are Highly Satisfied.

b) 24% of the respondents are satisfied.

c) 20% of the respondents are Moderate.

d) 22% of the respondents are Unsatisfied.

e) 16% of the respondents are Highly Unsatisfied.

Work areas of Insurance companies

Table No. 5.10


Easy Procedures 14 28%

Fewer premiums 10 20%

More Returns 9 18%

Transparency 17 34%

Total 50 100%


Fig. No.5.10

No. of Respondents

No. of Respondents

9

12

10

11

8

Highly Satisfied

Satisfied

Moderate

Unsatisfied

Highly Unsatisfied


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ANALYSIS:


a) 28% of the respondents want Easy procedures.

b) 20% of the respondents want Fewer premiums.

c) 18% of the respondents want More returns.

d) 34% of the respondents want Transparency.Improvement after allowing private players in insurance sector

Table No.5.11


Yes 40 80%

No 10 20%

Total 50 100%

14

10 9

17

0

2

4

6

8

10

12

14

16

18

Easy Returns Fewer

premiums

More Returns Transparency

Series1


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Source: Survey Results

.

No. of Respondents

Yes

No

Total


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CHAPTER-6FINDINGS & SUGGESTIONS


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FINDINGS & SUGGESTIONS

Findings

According to my survey the noteworthy points are:

1 Most of the people buy life insurance as just a tax benefit tool or as a life cover while

only a few of the respondent take it as a saving option. The reason for this is lack of

knowledge of insurance benefits among the people.

2 A Majority of the respondent buy insurance products because of the need reason

while rest of the respondents buy for the brand purpose.

3 A Majority of the people come to know about the policies from the Direct Selling

Agents.

4 A Majority of the people are satisfied by the incentives associated with their policies.

5 Most of the respondents are satisfied by the services offered by there insurance

company while some says that they are not satisfied by the services.

6 Most of the respondents want more Transparency from the side of the company.

Suggestions

Max New York Life as an insurance firm has a very strong presence in India and is rapidly

expanding its operations in India. After working on this project I feel that following are some

of the ways in which the company can improve the current market base and selection

procedure for AAs, the key revenue generating resource for the company:

1. Increase the awareness among the public

Since the diagrams above states that brand awareness among the general people was


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high in case of LIC and was the least in case of Max New York Life and although

most of the people are covered by insurance and most of them do invest in insurance

for security being the main reason the company should in a way try to increase its

awareness among the people that would help them capture a place in their minds and

would help the company in recruiting agent advisors This could be done in various

ways may be through advertisements, promotions etc.

2. Highlighting core strengths

As per the findings we know that many people to invest in insurance sector for their

own reasons whereas the most common reason was due to Security and since most of

the people are covered by Insurance thus Max New York Life should try highlighting

its core points of its products that would make a need be felt to general people even if

they are covered by insurance. In order to do this they should the core strengths of the

company and its products that would help them getting more Deals as well as Agent

advisors.

3. Creating products for mass class

Since Majority of people in India belong to the lower lower and lower-middle class

therefore Max New York Life should design a few such products that would secure

their future as well.


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BILIOGRAPHY


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BIBLIOGRAPHY

BOOKS

Kothari C R, Research and Methodology- Methods & Techniques, New Age International

(P) Ltd., 2008

MAGZINE

Brochures provided by the MNYL Insurance

WEB SITES

en.wikipedia.org/wiki/Main_Page

www.maxnewyorklife.com


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ANNEXURE


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QUESTIONNAIRE

Name - _____________

Age - _____________

Occupation - _____________

Q1. Are you currently insured?

- Yes

1 No

If yes, please give the details of company, plan, premium etc.

Q2. Are you satisfied with your current insurer ?

- Yes

- No

Q3. Which is your favored insurance company ?

1 LIC

2 Max New York life

3 HDFC

4 Birla sun life

5 Bajaj Allianz

6 Others

Q4 Are you interested in the products offered by MNYL Prudential?


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7 Yes

8 No

9 Cant say

Q5. What is your main concern while taking an insurance policy?

10 Tax benefit

11 Security

12 Investment/Savings

Q.6 Does this policy satisfy your financial needs? (Please rate on the scale of 1 to 10 with 1

being least satisfied)

Q.7 Please express your opinion for the premiums paid for the above policy?

-Very high [ ]

-High [ ]

-Moderate [ ]

-Low [ ]

-Very Low [ ]

Q.8 How do you come to know about this policy? (Please tick).

-Advertisements [ ]

-Friends and relatives [ ]

-Direct selling agents [ ]


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- Others (please specify) _____________________.

Q.9 Are there any incentives (tax benefits or Bonuses) associated with this policy? (Pleasegive appropriate details about it).

____________________________________________________________________

______________________________________________________

10. Are you satisfied with the incentives associated with your policy?

-Highly satisfied [ ]

-Satisfied [ ]

-Moderate [ ]

-Unsatisfied [ ]

-Highly Unsatisfied [ ].

Q11. According to you, in what areas should the insurance companies work upon?

14 Less complicated procedures

15 Fewer premiums

16 More returns

17 Transparency

Q12. Do you think that services have improved after allowing private players in insurance

sector?

- Yes

- No

Your comments on MNYL Insurance


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__________________________________________________________________

LIST OF ABBERIVATIONS

MNYL Max New York Life

AA Agent Advisor

PO Personal Observation

NAT Numerical Ability Test

FCS Fundamental Career Seminar

IRDA Insurance Regulatory & Development Authority

COI Centre of Influence

ATP Annual Target Premium

IRDP Integrated Rural Development Programme

PAB Personal Accident Benefit

ATP Annual Target Premium


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sonika report

Documents

Transcript of sonika report