A PROJECT REPORT ON

“Potential of Life Insurance Industry in Bhubaneswar”

By – Garima Dhan
(PGPM/07-09/18) ASBM

Max New York Life Insurance Company Ltd.

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A PROJECT REPORT ON “Potential of Life Insurance Industry in Bhubaneswar”
The study was conducted from 10th of April ’08 to of June ’08 At

Max New York Insurance Company Ltd., Bhubaneswar.
Company Guide: Mr. Sidharth Mohanty
Associate sales Manager, Max New York Life, Bhubaneswar.

Faculty Guide: Prof. Ratikant Biswal
IT Department, ASBM, Bhubaneswar.

Submitted by: GARIMA DHAN (PGPM/07-09/18)

ASIAN SCHOOL OF BUSINESS MANAGEMENT
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CERTIFICATE FROM THE ORGANIZATION
This is to certify that the project entitled “Potential of Life Insurance Industry in Bhubaneswar” is a bonafide work of Garima Dhan, a student of Asian School of Business Management (ASBM), bearing Roll No. PGPM/07-09/18, and was successfully conducted at Max New York Life, Bhubaneswar, from 10th April to 4th June ’08, for the partial fulfillment of the course Post Graduate Programme in Business Management (PGPM) of ASBM, Bhubaneswar.

Mr. Sidharth Mohanty, Associate Sales Manager, Max New York Life, Bhubaneswar.

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CERTIFICATE BY THE GUIDE
This is to certify that the project work entitled “Potential of Life Insurance Industry in Bhubaneswar” is a piece of work done by Garima Dhan, student of Asian School Of Business Management, under my guidance and supervision for the partial fulfillment of the course PGPM, Asian School Of Business Management, Bhubaneswar. To the best of my knowledge and belief the thesis embodies the work of the candidate herself and has been duly completed. Simultaneously, the thesis fulfills the requirements of the rules and regulations related to the summer internship of the institute and I am assured that the project is up- to the standard both in respect to the contents and language for being referred to the examiner.

Signature of the Faculty Guide Name of Faculty Guide Designation

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DECLARATION
I hereby declare that the project report entitled “Potential of Life Insurance Industry in Bhubaneswar” is the produce of my sincere effort. This Summer Internship Project Report is being submitted by me alone, at Asian School of Business Management, Bhubaneswar, for the partial fulfillment of the course PGPM, and the report has not been submitted to any other educational institutions for any other purpose.

Date: Signature

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CONTENTS
PARTISULARS
Acknowledgement Executive Summary Introduction • Introduction of the Industry  Life Insurance  General Insurance  Major Policy changes  Changing Face of Indian Insurance Industry  Various types of Life Insurance Policies • Introduction of the Company  Company Profile  Achievement  Management  Insurance Plans Research Methodology • Objective • Scope of study • Sampling Methodology • Limitations Survey • Graph Analysis & Data Interpretation Findings & recommendations • Findings & Recommendations • Growth Potential • Conclusion Bibliography Annexure • Questionnaire

Page No.
7 8 9 11 12 13 14 15 18 19 20 21

26 27 28 29 30-47 49 50 51 52 54-55

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LIST OF GRAPHS
Particulars
[Fig 1] No of People Having Insurance
[Fig 2] Types of Insurance Policy Respondents Have [Fig 3] Preferance of Respondents of Insurance Co’s [Fig 4] Benefits of Insurance Perceived by Respondents [Fig 5] Features of Insurance Policy That Attracted Respondents [Fig 6] Peoples Perception About Insurance [Fig 7] Persons Having Insurance For [Fig 8] Reasons Behind Taking Insurance Policies [Fig 9] Satisfaction of Respondents With Respect to Policies [Fig 10] Satisfaction of Respondents With Respect to Agents [Fig 11] No of Respondents Paying Tax [Fig 12] Respondents Perception About Best Form of Investment [Fig 13] Peoples Perception of Appropriate Age For Buying Insurance [Fig 14] Peoples Opinion About Insurance Companies in India [Fig 15] What People Look For in Insurance Companies [Fig 16] People Interested In Going For Insurance Away From Their City [Fig 17] People Planning For New Investment

Page No.
30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

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ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the possibilities to complete this thesis. I would like to thank Prof. Dr. Biswajeet Pattnaik, Director, Asian School of Business Management, Dr. Kalyan Shankar Ray, Dean, Asian School of Business Management, Ms. Kirti Mishra, Branch Manager, Max New York Life Insurance, Bhubaneswar and college authorities first for providing me the opportunity to work with one the prestigious organization. I want to thank Associate sales Manager, Max New York Life, Bhubaneswar Mr. Sidharth Mohanty for giving me permission to commence this thesis in the first instance, to do the necessary research work and for being my Company Guide. With a deep sense of gratitude and humble submission I would like to express my heartiest gratefulness to my Faculty Guide Prof. Ratikant Biswal, Asian School of Business Management, whose help, stimulating suggestions and encouragement helped me in all the times of research for and writing of this thesis.

Date: Signature:
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EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and MAX NEW YORK LIFE INSURANCE has given me the opportunity to work and get experience in highly competitive and enhancing sector.

The success story of good market share of different organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like MAX NEW YORK LIFE, BAJAJ ALLIANZ, TATA AIG, etc has adequate agents in the market they can capture big market as compared to the other companies. Agents are the best way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer.

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INTRODUCTION
 Introduction of the Industry  Introduction of the Company ♦ Company Profile ♦ Achievements ♦ Management ♦ Insurance Plans

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THE HISTORY OF INDIAN INSURANCE INDUSTRY
The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years.

Life Insurance
In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. “Unethical practices adopted by some of the players against the interests of the consumers” then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the socalled Life Insurance Corporation (LIC). It was felt that “nationalization has lent the industry fairness, solidity, growth and reach.”

Some of the important milestones in the life insurance business in India are:
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: The market contained 154 Indian and 16 foreign life insurance companies.

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General Insurance
The General insurance business in India started with the establishment of Triton Insurance Company Limited in 1850 at Calcutta. In 1907, the first company, The Mercantile Insurance Ltd. Was set up to transact all classes of general insurance business. General Insurance Council, a wing of the Insurance Association of India in 1957, framed a code of conduct for ensuring fair conduct and sound business practices. In 1968 the Insurance Act was amended to regulate investments and to set minimum solvency margins. In the same year the Tariff Advisory Committee was also set up. In 1972, The General Insurance Business (Nationalization) Act was passed to nationalize the general insurance business in India with effect from 1st January 1973. For these 107 insurers was amalgamated and grouped into four company’s viz., the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. General Insurance Corporation of India was incorporated as a company

Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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MAJOR POLICY CHANGES
Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions: Company is formed and registered under the Companies Act, 1956; The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company; The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business. The minimum paid up equity capital for life or general insurance business is Rs.100 crores. The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores. The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.

Changing face of Indian insurance industry:
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Indian life-insurance market is the target market of all the companies who either want to extend or diversify their business. To tap the Indian market there has been tie-ups between the major Indian companies with other International insurance companies to start up their business. The government of India has set up rules that no foreign insurance company can set up their business individually here and they have to tie up with an Indian company and this foreign insurance company can have an investment of only 24% of the total start-up investment. Indian insurance industry can be featured by: • • • • • Low market penetration. Ever growing middle class component in population. Growth of customer’s interest with an increasing demand for better insurance products. Application of information technology for business. Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of which are making strides in raising awareness levels, introducing innovative products and increasing the penetration of life insurance in the vastly underinsured country. Several of private insurers have introduced attractive products to meet the needs of their target customers and in line with their business objectives. The success of their effort is that they have captured over 28% of premium income in five years. The biggest beneficiary of the competition among life insurers has been the customer. A wide range of products, customer focused service and professional advice has become the mainstay of the industry, and the Indian customer’s forms the pivot of each company’s strategy. Penetration of life insurance is beginning to cut across socio-economic classes and attract people who have never purchased insurance before. Life insurance is also now being regarded as a versatile financial planning tool. Apart from the traditional term and saving insurance policies, industry has seen the entry and growth of unit linked products. This provides market linked returns and is among the most flexible policies available today for investment. Now products are priced, flexible, and realistic and sustain so people in better position to understand the risk and benefits of the product and they are accepting these innovative products. So it is clear that the face of life insurance in India is changing, but with the changes come a host of challenges and it is only the credible players with a long term vision and a robust business strategy that will survive. Whatever the developments, the future and the opportunities in this industry will surely be exciting.

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Various types of life insurance policies:•

Endowment policies: This type of policy covers risk for a specified period, and
at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy.

• •

Money back policies: This type of policy is for periodic payments of partial
survival benefits during the term of the policy as long as the policy holder is alive.

Group insurance: This type of insurance offers life insurance protection under
group policies to various groups such as employers-employees, professionals, cooperatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost.

Term life insurance policies: This type of insurance covers risk only during the
selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies.

Whole life insurance policies: This type of policy runs as long as the
policyholder is alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder.

Joint life insurance policies: These policies are similar to endowment policies
in maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy.

Pension plan: a pension plan or annuity is an investment over a certain number of
years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period.

Unit linked insurance plan: ULIP is a kind of insurance plan which provides
life cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).

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COMPANY PROFILE

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. 907.4 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 trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace. Training is a continuous process for agents at Max New York Life and ensures development of skills and knowledge through a structured 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. 337 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2007. MDRT is an exclusive congregation of the world’s 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, bancassurance and corporate alliances. Max New York Life offers a suite of flexible products. It now has 43 life insurance products and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need.

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VISION
To become one of the most admired life insurance company of India.

MISSION
• • • • •

Become one of the top quartile life insurance companies in India Be a national player Be the brand of first choice Be the employer of choice Become principal of choice for agents

VALUES Knowledge:
Knowledge leads to expertise; and our expertise is in helping people protect themselves. Perfectly combining global expertise with local knowledge, we are India's life insurance specialist. Max New York Life believes that for knowledge to be of value it must be focused, current, tested and shared.

Caring:
Max New York Life is redefining the life insurance paradigm by focusing on customers first. The service process is responsive, personalized, humane and empathetic. Every individual who represents the company is for us our brand champion.

Honesty:
Honesty is the heart of the life insurance business. It is all about trust. Transparency, integrity and dependability form the cornerstones of the Max New York Life experience. The company ensures that everyone who represents the brand carries a promise : we care — in word as well as deed.

Excellence:
Excellence at Max New York Life implies the ability to perform at a consistently high level. Focused on the value of continuous improvement in people, processes and the organization, the company strives for the highest standards of quality in every aspect of its business.

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ACHEIVEMENTS
Max New York Life is the first life insurance company in India to be awarded the IS0 9001:2000 certification. Max New York Life was among the top 25 companies to work with in India, according to 2003 Business World magazine, "Great Workplaces In India", Max New York Life was ranked at the 20th position. This survey is the local version of the "Great Places To Work" survey carried out every year in 22 countries. Been among top five most respected private life insurance companies in India according to a 2004 and 2006 Business World survey. Have truly built an enviable sales force. With 345 agents becoming members of the MDRT in 2006, Max New York Life has moved up to 21st rank in MDRT global list.

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MANAGEMENT BOARD OF DIRECTORS:
Analjit Singh Chairman, Max India Limited Gary R. Bennett Managing Director and CEO, Max New York Life Insurance

Ted Mathas President & Chief Operating Officer, New York Life Insurance

Anuroop 'Tony' Singh Vice Chairman, Max New York Life Insurance

MANAGEMENT TEAM:
Gary Bennett Managing Director and CEO, Max New York Life Sunil Sharma Chief Operating Officer and Executive Director

Rajit Mehta Executive Director, Human Resources, Training and Internal Communications

Rajesh Sud Executive Director, Distribution

Anil Mehta Director, Group Business

Sunil Kakar Director and Chief Financial Officer

Ajay Seth Director, Legal & Compliance John Poole Chief Actuary

Debashis Sarkar Director - Marketing, Product Management and Corporate Affairs

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INSURANCE PLANS
Protection Plans:
Five Year Renewable and Convertible Term Insurance Max New York Life's Five Year Renewable and Convertible Term Insurance (NonParticipating) plan not only provide you with a low cost insurance cover during its tenure of five years, it also helps you plan in advance for various future needs and your family's financial security, should anything unfortunate happen to you. Offering a guaranteed Death Benefit, this plan is particularly useful as a short-term protection plan. An important feature of this policy is that it allows the insured to convert the policy to a regular policy during the tenure of the policy. Level Term (Non Participating) Policy Max New York Life's Level Term (Non Participating) Policy is a plan that covers your life at a very low cost and reduces the consequent hardship your family may have to bear in the unfortunate event of your death. Incase of the unfortunate death of the policy holder during the term of the plan, an amount equal to the sum assured is paid to the nominee.

Children Plans:
Children's Endowment to 18 (Par) Plan Max New York Life presents Children's Endowment Participating Insurance to age 18 with an option to buy a permanent life insurance policy without medical underwriting (irrespective of his/her health at that time). This policy which is especially designed to enable you to provide for higher education of your child and take care of your child’s future needs in case of spiraling costs. Children's Endowment to 24 (Par) Plan Max New York Life’s Children's Endowment Participating Insurance to age 24 provides an option to buy a permanent life insurance policy without medical underwriting (irrespective of his/her health at that time). This policy enables you to provide for various events in your child’s life such as a grand wedding of your child. This excellent plan is a participating plan, which is also eligible for bonuses and Max New York Life may declare these bonuses from time to time and from the third policy year. An important feature of this plan is that the entire sum assured is paid out on maturity and the plan automatically vests when the child turns 18. Stepping Stones™ (Par) Plan Max New York Life’s Stepping Stones™ is a smart way to plan your children’s education and their future irrespective of whether you are there or not. It provides you with regular money when it is required. This policy also builds cash value, which you can use during your lifetime to fund any unforeseen needs by surrendering accumulated PUAs. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future.

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SMART Steps™ Plan Introducing Max New York Life’s regular premium unit linked life insurance children’s plan – SMART Steps™, which will help you plan for your child's future in a SMART way and takes your worries away. This plan offers the required financial protection for your loved ones if you are not alive and provides an unmatched investment opportunity by way of well managed investment funds. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future.

SMART Steps ™ Plus A regular premium unit linked life insurance plan, Max New York Life’s SMART Steps™ Plus will help you plan for your child's higher education, marriage, and financial security. This plan offers no-compromise 360 degree protection to your children even if you are not alive and provides an unmatched investment opportunity by way of well managed investment funds. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future. SMART Steps ™ Single Premium Plan Max New York Life’s SMART Steps™ Single Premium policy will help you plan for your child's future in a SMART and organized manner. Apart from offering 360 degree protection to your child if you are not alive, this plan also provides an unmatched investment opportunity by way of well managed investment funds. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future.

Investment Plans:
Life Maker™ Premium Investment Plan The latest Life Maker™ Premium Investment Plan gives you a lot of choices - especially when you are looking for Great life style, Big Home, your own well established Business and top of all - Protection for your family. Our Unit linked Life Insurance plan can be the financial cornerstone for your objectives. Max New York Life Insurance provides you a powerful investment-cum-insurance plan where you can direct your investments in the customized unit linked funds such as equities, money market instruments, investment grade corporate bonds, and government securities. These funds offer a wide range of returns basis market returns. You can choose to invest your premiums in one or more of these funds, basis your risk taking ability.

Life Maker™ Platinum - a Unit Linked Investment Plan With the Life Maker™ Platinum - a Unit Linked Investment Plan, you can meet all your financial needs, without the tedium of managing multiple products. In this plan, you can
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direct your investments in the customized unit linked funds such as equities, money market instruments, investment grade corporate bonds, and government securities. These funds offer a wide range of returns basis market returns. You can also choose to invest your premiums in one or more of these funds, basis your risk taking ability. Life Maker™ Gold Plan This plan enables you to choose an attractive investment fund, enjoy free loyalty units and tax benefits on premiums and maturity value. Life Maker™ Gold Plan also provides you insurance cover, in which, your nominee will get the Sum Assured plus the Fund Value to your nominee(s), in case of unfortunate event of your death. Our Plan also offers you the flexible investment feature, where you can choose one out of four attractive funds options and also change your risk return profile of your existing investments by switching across funds with our high customization feature. Life Invest™ Plan This policy will provides you comprehensive protection from 3 Ds i.e. Death, Disease and Disability. Apart from loyalty units and tax benefits, the maturity feature of this policy will also pay you the fund value. Flexible Investment with choice of four attractive fund options, lump sum investment in your plans through top ups as per your cash flow, increasing death benefits, flexibility to choose premium payment terms are few of the benefits you can enjoy through this policy. SMART Assure Plan Our smart assure plan also enables you to make partial withdrawals at the time of unexpected expenses. The switching feature of this policy provides you the facility to change the investment pattern by moving from one fund to other fund(s) amongst the funds offered under this contract

Retirement Plans:
Easy Life™ Retirement (Par) Plan Catering to the diverse set of needs of various customers looking for retirement planning, Max New York Life offers some splendid retirement plans, which would suit their budget and lifestyle. Max New York Life's Easy Life™ Retirement Plan Regular Premium/Single Premium (Participating) Policy is designed to help you save money for your retirement. It also provides you with an opportunity to take home a regular retirement income (i.e. pension). SMART Invest™ Pension Plan Offering competitive returns to secure the golden years of your life, Max New York Life's SMART Invest™ Pension Plan is a comprehensive unit linked pension plan to meet your post retirement financial needs, ensuring you complete peace of mind. One-third of the corpus can be commuted at vesting age the amount commuted are eligible for tax exemption u/s 10A.

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Health Plans: LifeLine-MediCash™ Plan
Max New York Life's Lifeline-MediCash™ health Insurance plan provides you support by giving you hospital cash benefit, whenever you are hospitalized. Through this plan you will get a fixed benefit towards hospitalization, ICU and recuperation (post hospitalization). LifeLine-MediCash™ Plus Plan Presenting Lifeline - MediCash™ Plus health Insurance plans from MNYL that provide you support by giving you hospital cash benefit, whenever you are hospitalized. Through this plan you will get a fixed benefit towards hospitalization, ICU and recuperation (post hospitalization). And the surgical expenses of a fixed Lump-sum amount will be paid under LifeLine – MediCash™ Plus for more than 400 listed surgeries that you may undergo. LifeLine-Wellness™ Plan Max New York Life's LifeLine-Wellness™ is a health plan, which would provide you 360degree benefit in terms of long tenure of coverage, coverage for 10 critical illnesses, and permissible tax benefit under an Income Tax Act. LifeLine-Wellness™ Plus Plan Max New York Life's LifeLine-Wellness™ Plus health plan provides a wonderful benefit system in terms of long tenure of coverage, coverage for 38 critical illnesses and tax benefit. LifeLine-Safety Net™ Plan Recognizing the need for a complete all round financial protection for you and your family, Max New York Life Insurance Company offers you a term cum health insurance - LifeLineSafety Net™ , the new age insurance covering death, disability, disease and accident under one single plan.

SOME OF THE OTHER PLANS ARE: SAVINGS PLANS:  W hole Life Participating  20 Year Endowment (Par)  Endowment to Age 60 (Par)  Life Gain Plus 20 (Par)  Life Gain Plus 25 (Par)  Life Pay Money Back  Life Gain Endowment  Life Partner
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RURAL PLANS:  Max Suraksha  Easy Term Policy STRATEGIC PRODUCTS PLANS:

 Bancassurance  Super Saver Bond  Capital Builder

 Additional Distribution
 Max Mangal

 Max Vriksha  Capital Builder

 Max Amsure  Future Builder  Family Money Back  Bonus Builder  Business Builder  Secure Returns builders

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RESEARCH METHODOLOGY
Objective Scope of study Sampling methodology Limitations

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RESEARCH METHODOLOGY TITLE:
To Study Potential of Life Insurance Industry in Bhubaneswar.

TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with studying the buying pattern in the insurance industry with a special focus on Max New York life Insurance. The various segments of the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also studied.

OBJECTIVE
Main objective of the research is to have an analysis of life insurance industry in Bhubaneswar. To accomplish this objective it has been divided into five.
• • • To determine reasons behind opting for an insurance. To know the most preferred policy. To determine customers perception towards private insurance companies and their expectation form private insurance companies. • • To determine the feedback on services provided by an insurance agent. To study the types of benefits provided by insurance services.

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SCOPE OF THE STUDY
A big boom has been witnessed in Insurance Industry in recent times. A large number of new players have entered the market and are trying to gain market share in this rapidly improving market. The study deals with Reliance in focus and the various segments that it caters to. The study then goes on to evaluate and analyze the findings so as to present a clear picture of trends in the Insurance sector.

SIGNIFICANCE TO THE INDUSTRY:
This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER:
To facilitate and provide useful information for the study of the company and the insurance industry and also provide recommendations for Max New York Life.

RESEARCH DESIGN
• • NON-PROBABILITY EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary.

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A well-structured questionnaire was prepared and personal interviews were conducted to collect the customer’s perception and buying behavior, through this questionnaire.

SAMPLING METHODOLOGY
Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judemental and convinent Sampling Unit:
The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees, Self Employed etc. Sample size: The sample size was restricted to only 100, which comprised of mainly peoples from different regions of Bhubaneswar due to time constraints. Sampling Area: The area of the research was Bhubaneswar, India.

LIMITATIONS OF THE RESEARCH
1. The research is confined to a certain parts of Delhi and does not necessarily shows a pattern applicable to all of Country. 2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses.

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3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

SURVEY
Graph Analysis Data Interpretation

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DATA ANALYSIS & INTERPRETATION
NUMBER OF PEOPLE HAVING INSURANCE RESPONSE Yes No Total NO. OF RESPONDENTS 70 30 100 SHARE (%) 70% 30% 100%

INTERPRETATION • Of the sample size of 100 surveyed respondents 70% of the respondents are having Insurance policy. • 30% of the respondents are either not having any Insurance policy at present or their policy is already matured. • And at present 100% of the respondents are with the view that Insurance is a tool to protect your family. 31

TYPES OF INSURANCE POLICY RESPONDENTS HAVE POLICY TYPE LIFE POLICY NON LIFE POLICY BOTH NO. OF RESPONDENTS 75 25 45 SHARE (%) 75 25 45

INTERPRETATION  

75% of the respondents have only Life Insurance Policy. while 45% of the respondents have both.
25% of the respondents have only Non- life Policy.

[Some of the respondents opted for two or more than two items]

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PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES
COMPANY’S NAME L.I.C. RELIANCE LIFE INSURANCE ICICI PRUDENTIAL SBI LIFE Max New York Life TOTAL NO.OF RESPONDENT 78 3 10 7 2 100 SHARE (%) 78 3 10 7 2 100

INTERPRETATION  78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.

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BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS
BENEFITS Cover Future Uncertainty Tax Deductions Future Investment TOTAL NO.OF RESPONDENTS 55 20 25 100 SHARE (%) 55 20 25 100

[Fig4]
F uture Inves ent tm 25% Cover F uture Uncertainty 55%

T ax Deductions 20%

INTERPRETATION  55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy.  Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.

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FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS
FEATURE Money Back Guarantee Larger Risk Coverage Easy Access to Agents Low Premium Company’s Reputation TOTAL NO.OF RESPONDENTS 15 37 7 30 11 100 SHARE (%) 15 37 7 30 11 100

INTERPRETATION
 Majority of the respondent (37%) found larger risk coverage as the most attracted feature of the all.  Minimum respondents (7%) opted for easy access to agents.

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PEOPLE PERCEPTION ABOUT INSURANCE RESPONSE NO. OF RESPONDENTS 81 74 100 SHARE (%)

A saving tool A tax saving device A tool to protect your family

81% 74% 100%

INTERPRETATION
• • • 81% of the respondents have perception of Insurance being a saving tool. And 74% of the respondents have perception of Insurance being a tax saving device. But 100% of the respondents are with the view that Insurance is a tool to protect your family.

[Some of the respondents opted for two or more than two items]

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PERSONS HAVING INSURANCE FOR
Response self spouse children parents all No of respondents 40 28 21 18 11

INTERPRETATION
Among that 42% people who having insurance, they have insurance 40% for self, 28%for spouse ,21% for children and 18% for their parents and 11% for all family member.

REASONS BEHIND TAKING INSURANCE RESPONSE NO. OF 37 SHARE (%)

RESPONDENTS Tax saving Saving / Investment Family protection 80 80 100 50% 50.% 100%

INTERPRETATION • • 80% of the Respondents opted for Insurance for tax saving benefits and saving/investment both. But all of them, i.e. 100% of the respondents have opted for insurance for their family protection.

[Some of the respondents opted for two or more than two items]

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SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY RESPONSE NO. OF RESPONDENTS 60 40 0 100 SHARE (%)

Satisfied Not satisfied Not Responded Total

60% 40% 0.0% 100%

INTERPRETATION • • • 60% of the respondents are more or less satisfied with their existing policy. 40% of the respondents are not satisfied with their existing policy. In this case all of those who have taken a policy have responded.

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SATISFACTION OF +VE RESPONDENTS WITH RESPECT TO SERVICE AGENT RESPONSE Satisfied Not satisfied Not Responded Total NO. OF RESPONDENTS 45 55 0 100 SHARE (%) 45% 55% 0.0% 100%

INTERPRETATION • • • 45% of the respondents are satisfied with their existing service agent. 55% of the respondents are not satisfied with their existing insurance agent. All of those who have taken a policy have responded.

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NUMBER OF RESPONDENTS PAYING TAX RESPONSE Paying tax Not paying tax Total NO. OF RESPONDENTS 100 0 100 SHARE (%) 100% 0% 100%

INTERPRETATION • Of the sample size of 100 respondents, all the respondents are paying tax.

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RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE NO. OF RESPONDENTS Fixed Assets Bank deposits Jewellery Securities i.e. bonds, MFs Shares Insurance 75 11 25 40. 10 70 SHARE (%) 33% 5% 11% 17% 4% 30%

INTERPRETATION • 75% of the respondents are with the view that Fixed Assets is the best form of investment for securing their future. • 70% of the respondents are with the perception that Insurance is the best form of investment for securing their future, which is 2nd highest and this shows that insurance is an important key for securing your future. [Some of the respondents opted for two or more than two items]

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PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE RESPONSE After 25 years After 35 years After 45 years Anytime NO. OF RESPONDENTS 29 10 0 61 SHARE (%) 29% 10% 0% 61%

INTERPRETATION • 29% of the respondents are with the view that insurance should be bought after the age of 25 years. • 10% of the respondents are with the view that insurance should be buyed after the age of 35 years. • Whereas, 61% of the respondents are with the view that buying of insurance do not have any thing to do with age i.e. there is no age limitations. It can be purchased any time according to the need.

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PEOPLES OPINION ABOUT INDIAN INSURANCE COMPANIES RESPONSE Rigid plans Non user friendly Unsatisfactory services Non Aggressive Satisfactory Good Very good NO. OF RESPONDENTS 67 29 26 35 24 10 0 SHARE (%) 67% 29% 26% 35% 24% 10% 0%

INTERPRETATION
• • • • 67% of the respondents have the opinion that Indian Insurance Companies have Rigid plans. 29.5% feel that Indian Insurance companies are Non-user friendly. 26.5% feel that services of Indian Insurance companies are Unsatisfactory. 35.75% of the respondents are with the view that Indian Insurance companies are Nonaggressive.

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24% of the respondents feel that products and services of Indian Insurance companies is Satisfactory.

• •

Whereas only 10.25% feel that it is Good enough. And according to the data, no single person has felt that it is very good.

[Some of the respondents opted for two or more than two items]

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WHAT PEOPLE LOOK FOR IN AN INSURANCE COMPANY RESPONSE A trusted name Friendly service & responsiveness Good plans Accessibility NO. OF RESPONDENTS 82 71 81 49 SHARE (%) 82% 71% 81% 49%

INTERPRETATION
• • • 82% customers look for a Trusted name in a company for insurance. 81.5% customers look for a good plan in a company for insurance. Friendly service & responsiveness and Accessibility are also important factors looked by customers in a company. [Some of the respondents opted for two or more than two items]

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PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS RESPONSE Yes No Uncertain Total NO. OF RESPONDENTS 43 44 13 100 SHARE (%) 43% 44% 13% 100%

INTERPRETATION
• The interested customers i.e. 43% are ready to go for insurance even away from a city if services and products are worthwhile, which again is a good prospect (potential) for Max New york Life Insurance to take them on their favor.

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PEOPLE PLANNING FOR NEW INVESTMENTS RESPONSE Planning Not planning Total NO. OF RESPONDENTS 87 13 100 SHARE (%) 87% 13% 100%

INTERPRETATION • • Only 13% of the customers contacted are not planning for new investments presently. Whereas, 87% of the customers are still planning for new investments this can be a great potential for Max New York Life Insurance to take them on their favor.

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FINDINGS & RECOMMENDATIONS

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FINDINGS & RECOMMENDATIONS

1. As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. There is a large potential for insurance in India. 2. The entrance of private players will increase the competition and it would be a tough task to secure a good position in market. 3. Since Max New York Life Insurance is leading with several companies’ policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship. 4. As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers. 5. As 43% of the customers are even ready to go for insurance if a service provider away from their city is providing it. But inturn they should provide good products and services. The company should try to convince these customers and get them in its favor.

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GROWTH POTENTIAL At present life insurance penetration in India is quite low – 3% of GDP.

PHASE OF TRANSITION • Life Insurance industry is under the phase of infancy after 50 years of monopoly. • Competition from within and other sectors of financial market. • Needs environmental support till it reaches a comfort zone

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CONCLUSION
Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be seen in the above analysis. A general impression that we gathered during Data collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been impressed by the marketing and advertising campaigns of insurance companies. A high penetration of print, radio and Television Ad campaigns over the years is beginning to have it’s impact now. Another heartening trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondents have opted for insurance for such purposes and it shows how insurance companies have been successful to attract public money in recent times. The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lies the opportunity for a relative player like Max New York Life. LIC has never been known for prompt service or customer oriented methods and Max New York Life can build on these factors.

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BIBLIOGRAPHY  WEBSITES REFERRED  www.maxnewyorklife.com  www.irdaindia.org  www.thehindubusinessline.com

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ANNEXURE

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QUESTIONNAIRE
NAME:_________________________ ADDRESS:______________________ ______________________________OCCUPATION:___________________ 1. ARE YOU EMPLOYED?
YES NO If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?
YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?
LIFE NON-LIFE BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANKTHEM)
a) LIC c) SBI LIFE INSURANCE e) MAX NEW YORK LIFE INSURANCE g) ANY OTHER ________( Specify) b) ICICIPRUDENTIAL d) ING VYSYA LIFE f) TATA AIG LIFE

5. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN?
(RANK THEM) a) COVER FUTURE UNCERTAINITY c) FUTURE INVESTMENT b) TAX DEDUCTIONS d) ANY OTHER _________ (Specify)

6. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?
(RANK THEM) a) LOW PREMIUM c) MONEY BACK GUARNTEE e) EASY ACCESS TO AGENTS b) LARGER RISK COVERAGE d) REPUTATION OF COMPANY f) ANY OTHER _________ (Specify)

7. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?
(RANK THEM) a) A SAVING TOOL b) A TAX SAVING DEVICE

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c) A TOOL TO PROTECT FUTURE

8. ARE YOU SATISFIED WITH THE POLICY?
a) SATISFIED SAVING TOOL c) NOT RESPONDING b) NOT SATISFIED

9. ARE YOU SATISFIED WITH THE SERVICE AGENT?
a) SATISFIED SAVING TOOL c) NOT RESPONDING b) NOT SATISFIED

10. DO YOU PAY TAXES?
YES NO

11. WHICH IS THE BEST FORM OF INVESTMENTS?
(RANK THEM) a) FIXED ASSETS c) JEWELLERY e) SHARES b) BANK DEPOSITS d) SECURITIES, i.e. Bonds, MFs f) INSURANCE

12. . WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?
a) SAVING & RETURNS c) TAX BENIFITS b) SECURITY

13. WHAT’S THE RIGHT AGE TO BUY INSURANCE?
a) AFTER 25 Yrs c) AFTER 45 Yrs b) AFTER 35 Yrs d) ANYTIME

14. HOW WOULD YOU RATE INDIAN INSURANCE COs?
a) RIGID PLANS c) UNSATISFATORY SREVICES e) SATISFACTORY g) VERY GOOD b) NON-USER FRIENDLY d) NON-AGGRESSIVE f) GOOD

15. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs?
(RANK THEM) a) A TRUSTED NAME c) GOOD PLANS b) FRIENDLY SERVICE & RESPONSIVENESS d) ACCESSIBILITY

16. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS
BETTER SERVICE & PRODUCTS? a) YES b) NO c) UNCERTAIN

17. ARE YOU PLANNING FOR NEW INVESTMENTS? 56

PLANNING

NOT PLANING THANK YOU.

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