PART- 1 COMPANY PROFILE

COMPANY PROFILE

INTRODUCTION OF MAX NEW YORK LIFE INSURANCE CO. LTD. MAX NEW YORK - THE SOLUTION OF LIFE Max New York is not only a leading company in the unit-linked life insurance market. The Max New York brand also represents a new philosophy of customer service, responsibility to the environment, employees and other global aspects affecting all of us. Max New York means LIFE VITALITY SUCCESS Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited, one of India's leading multi-business corporations and New York Life International, the international arm of New York Life, a Fortune 100 company. 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
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developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork.

Incorporated in 2000, Max New York Life started commercial operation in 2001. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital as on 30th April, 2009 is Rs 1782 crore.

Max New York Life has multi-channel distribution spread across the country. Agency distribution is the primary channel complemented by partnership distribution, bancassurance, alliance marketing and dedicated distribution for emerging markets. The Company places a lot of emphasis on its selection process for agent advisors, 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. The company currently has around 92,667 agent advisors at 712 offices across 389 cities. The company also has 36 referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships each. Max New York Life has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. The company has 137 offices dedicated to rural areas.
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Max New York Life offers a suite of flexible products. It now has 37 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 7 riders in group insurance business. Max New York is a world leader in financial services. With more than 300 years of history, Max New York is now the worlds fifth largest insurer and the largest in the UK. Our main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of about 30 billion and over 240 billion of assets under management. Max New York became the new name for the former CGNU in July 2002. The change represented part of the groups planned journey towards being recognized as a world-class financial services provider. Today the Max New York brand is alive and trading in more than 20 countries with Max New York now the worlds fifth-largest insurance group (based on gross worldwide premiums for the year ended 31 December 2005). Max New York is 14th in the Great Places to Work survey in 2004 and ranked highest among insurance companies, making it the best insurer to work for in
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India. This is the third year that Max New York Life Insurance remains the top 25 great place to work in a survey of more than 200 companies administered by Grow Talent Company Ltd. along with Great Places to Work Institute, Inc. and Business World magazine. Max New York India has created through the active contribution of its employees. These lines not only define the way we live and work but also serve as a reminder to deliver the best to our customers, shareholders, colleagues, partners & employees at all times. Embedded in this vision are the core values of Integrity, Customer centricity, Passion for winning, Innovation and Empowered team that we have collectively defined and committed to working towards Max New York has been operating in Asia since 1880 and we are dedicated to the provision of long-term savings products and investments, with the commitment to serve our customer in trust. Max New York operating in the key markets of Singapore, India, Hong Kong and China, our vision is to become the leading provider of financial services differentiated by our multi-distribution strategy across these chosen markets. Most private life insurance companies launched traditional products in India, very similar to those offer by MAX NEW YORK LIFE INSURANCE CO. LTD.. Max New York, however, took a different approach and was among the first private insurers in the country to introduce Unit Linked products in the market, offering its customers value for money products that are modern,
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flexible and transparent. Max New York launched a life insurance and long-term savings joint venture in June 2002 with Dabur Group, 1 of Indias oldest and most respected business houses. We are now among the top 12 life insurers in the Indian market.

A unit linked product fund is a form of pooled investment where you purchase units. Premiums usually invested as units in stock market funds. The value of the Policy goes up & down in line with the performance of the particular fund Max New York is UKs largest and the worlds fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Max New York has a 40 million-customer base worldwide. It has more than 364 billion of assets under management.

In India, Max New York has a long history dating back to 1834. At the time of nationalisation it was the largest foreign insurer in India in terms of the compensation paid by the Government of India. Max New York was also the first foreign insurance company in India to set up its representative office in 1995.

In India, Max New York has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally managed company, Dabur is the country's leading producer of traditional healthcare products. In accordance with the government regulations Max New York holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), Max New York has initiated an innovative and differentiated sales approach to the business. Through the Financial Health Check (FHC) Max New Yorks sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customers long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them. Max New York pioneered the concept of Banc assurance in India, and has leveraged its global expertise in Banc assurance successfully in India. Currently, Max New York has Banc assurance tie-ups with ABN Amro Bank, American Express Bank, IndusInd Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks in Gujarat, Rajasthan,
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Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and Maharashtra and regional Banks When Max New York entered the market, most companies were offering traditional life products. Max New York started by offering the more modern Unit Linked and Unitised With Profit products to the customers, creating a unique differentiation. Max New Yorks products have been designed in a manner to provide customers flexibility, transparency and value for money. It has been among the first companies to introduce the more modern Unit Linked products in the market. Its products include: whole life (LifeLong), endowment (Lifesaver, Easy Life Plus, Lifesaver Plus), child policy (Young Achiever, Safeguard Junior, Max New York Little Master) single premium (Life Bond and Life Bond Plus), Pension (Pension Plus), Term (Life Shield), fixed term protection plan (Freedom Life Plan) and a tax efficient investment plan with limited premium payment term (LifeBond5). Max New York products are modern and contemporary unitised products that offer unique customer benefits like flexibility to choose cover levels, indexation and partial withdrawals. Max New Yorks Fund management operation is one of its key differentiators. Operating from Mumbai, Max New York has an experienced team of fund managers and the range of fund options includes Unitised With-Profits Fund and seven Unit Linked funds: - Protector Fund, Secure Fund, Balanced Fund, Growth Fund, Enhancer Fund,
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Index

Fund

and

Bond

Fund.

Max New York has 193 Branches in India (including rural branches) supporting its distribution network. Through its Banc assurance partner locations, Max New York products are available in more than 2,795 locations across India. To the appointment, was serving as Max New York Life Insurance's Deputy Managing Director. Gary Bennett, who served as Chief Executive Officer and Managing Director of the company since July 2005, has been named Executive Vice President and Greater China Chief Executive Officer of New York Life International, LLC, effective immediately. In a related announcement, Rajit Mehta, Max New York Life's Deputy Chief Operating Officer has been appointed as the Chief Operating Officer of the joint venture, also pending regulatory approval. Analjit Singh, Chairman Max New York Life Insurance, commented: "Rajesh and Rajit's appointments are part of an orderly management transition that has been planned for some time. We are confident that this new leadership team will build on the solid foundation that is in place as we continue our journey of becoming the most admired life insurance company in India with the most professional, most highly trained agency sales force in the country. We thank Gary Bennett for all that he has done on behalf of Max New York Life and wish him the very best in his new role."

"We are fortunate to have executives of Rajesh's caliber taking the helm at Max New York Life Insurance," added Singh. "Rajesh has made a significant impact implementing business strategies that have contributed to the rapid growth of our life insurance business, steering the overall distribution network, and contributing greatly to the company's product management and marketing efforts." Singh continued, "Rajit has played an equally important role for Max New York Life, helping make Max New York Life's human resources and talent development the strategic differentiator that it is today, as well as adding significant value to the company's sales, operations and customer service functions." "We're very pleased to have individuals with the level of skill and accomplishment of Rajesh and Rajit at Max New York Life Insurance," said Dick Mucci, Chairman and Chief Executive Officer of New York Life International, LLC. "It's a testament to organizational depth of the company that we are tapping two founding team members who have had major roles in building the company into what it is today, one of India's premier life insurers, widely recognized for its quality and innovation and for its role in making life insurance and retirement savings a reality for tens of millions of low-income and underserved Indian households." Mucci added, "Gary played an important role in the tremendous growth and success of Max New York Life Insurance Co. Ltd. and we are grateful to him for
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his many contributions. He did an outstanding job leading Max New York Life Insurance Co.Ltd., and in his prior post running New York Life's Hong Kong operation, and I'm pleased he's accepted a new position within New York Life International overseeing our large and attractive Greater China region." Previously, as a member of the company's core management team, Sud was responsible for steering the overall distribution network of the company and overseeing the product management, marketing, corporate affairs and customer relationship management functions. Prior to that he served as Executive Director - Distribution, and was the primary driver for Max New York Life Insurance's distribution footprint across India, setting up alliances and an agent-advisor network and model that was recognized as the "best in class." Mr. Sud earned his Bachelor of Commerce and an MBA and in marketing and finance from Faculty of Management Studies, Delhi University before completing his Advanced Management Program from Wharton Business School, University of Pennsylvania, Philadelphia, USA. Mehta is also a founding team member of the Max New York Life team. Prior to his role as Deputy Chief Operating Officer, Rajit served as Max New York Life's Executive Director for Human Resources, Training and Internal Communications where he was responsible for strategic initiatives leading to the strengthening of the Max New York Life's human resource management.
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He has also made important contribution in development and implementation of Max Vijay, the innovative business model that fulfills protection and savings needs of underserved market. Prior to joining Max New York Life, he was Director - Personnel at Bank of America and worked with HCL - Hewlett Packard. Mr. Mehta is management graduate and has attended an Advanced Management Course at INSEAD, France. The leading private life insurance company - Max New York Life Insurance Company Ltd. has launched 'lifeline' - a health insurance product on Wednesday, 5th March 2008, across India. Now, the company can boast of offering complete health and life insurance products across ll regions in India. This newly launched health insurance product of Max New York Life Insurance Company offers three groups of heath insurance solutions. The Director Marketing Product Management and Corporate Affairs of Max New York Life Insurance said that these three distinct heath insurance products are meant to cover eventualities like hospitalization, surgery and critical illness of the insured. He points out that these plans have been structured with features like coverage for a wide range of ailments, no claim discount on revised premium for a healthy life, a fixed premium for a five-year term, free second opinion from the best health care institutions of India on detection of illness. Further, it also has provision for a free telephonic medical helpline across India.
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The hospitalization - is covered by "Medicash plan", which is meant to provide a fixed amount of cash benefit on a day-to-day basis during the entire period of hospitalization of the insured. The Medicash plan would also cover expenses for admission in ICU, lump sum benefits against an unlimited number of surgeries and recuperation benefits. The second plan of the newly launched health insurance of Max New York Life Insurance Co. Ltd., is the "Wellness Plan", which is a more attractive one and covers 'critical illness' like cancer, alzheimers, heart ailments, liver disease, deafness, permanent disability, etc. The Wellness plan covers thirty eight critical illnesses, which is the highest number of illness covered under one insurance plan in India by any insurance company. The third health insurance policy of Max New York Life Insurance Co. Ltd. is a term plus health protection plan known as "Safety Net". This provides coverage to the insured person for any losses incurred by him/her in eventualities like critical illness, accident, disability and death.

With 21 lakh life insurance policies and with an assured sum of Rs 62,000 crores in its kitty Max Life Insurance wishes to achieve business at least five percent higher than it did in the last financial year. The company also announced that it would go for an expansion drive and would also increase the number of branch offices in Tamil Nadu within the fiscal year 2008-2009. Max New York Life
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Insurance Company is one of the fastest growing life insurance companies in India and is the first life insurance company of India to be awarded with ISO 9001:2000 certification. This Rs 907.4 crores insurance company is one of the most respected companies in India. After making strong inroads into the Indian life insurance market with a strong product portfolio the company is expected to do well with its new product line in the Indian health insurance sector as well. Max New York Life Insurance Company Ltd. is a joint venture between New York Life International Inc., a Fortune 100 company and America's largest life insurance provider and Max India Limited one of the leading multi-business corporations in India. Max New York Life Insurance Co Ltd is a Rs. 250 crore joint venture with a paid up capital of Rs. 807 crore.The insurance agents employed at Max New York Life Insurance Co Ltd are trained in-house with a rigorous training program of over 152 hrs, much higher than the standard 100 hrs of mandatory training laid down by the IRDA. Around 345 Max New York Agent Advisors qualified for Million Dollar Round table (MDRT) membership in 2006. It is an internationally renowned congregation of world's top insurance agents. Max New York Life brings to you specially customized products and services that are flexible and can e customized to suit your needs. It now has 30 life insurance products and 8 riders that can be customized to over 800 combinations
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enabling customers to choose the policy or plan that best fits their need. These include: Max New York is also keen to reach out to the underprivileged that have not had access to insurance so far. Through its association with Basix (a micro financial institution) and other NGOs, it has been able to reach the weaker sections of the society and provide life insurance to them. Max New York has been felicitated with the "Bronze Award for Excellence in People Management" by Grow Talent Company Limited and Business world. This honour is given to Max New York based on the ranks received in top 25 lists of the Great Place to Work India studies conducted in the last four years. Max New York was ranked 12th in 2003, 14th in 2004 and 13th in the year 2005. Max New York Max New York is UKs largest and the worlds fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Max New York has a 40 million customer base worldwide. It has more than 377 billion of assets under management.

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Max New York Life Insurance Co. Ltd. India Management Team Board Of Directors Mr. Analjit Singh Chairman, Max New York Life Insurance Co. Ltd. Mr. Anuroop (Tony) Singh Vice Chairman, Max New York Life Insurance Co. Ltd. Mr. Rajesh Sud CEO & Managing Director, Max New York Life Insurance Co. Ltd. Mr. Rajit Mehta Executive Director & Chief Operating Officer, Max New York Life Insurance Co. Ltd. Mr. William Beaty Director, Max New York Life Insurance Co. Ltd. Mr. Richard L. Mucci Director, Max New York Life Insurance Co. Ltd. Dr. Omkar Goswami
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Director, Max New York Life Insurance Co. Ltd. Mr. Rajesh Khanna Director, Max New York Life Insurance Co. Ltd. Ms. Marielle Theron Director, Max New York Life Insurance Co. Ltd. Management Team Mr. Rajesh Sud CEO & Managing Director, Max New York Life Insurance Co. Ltd. Mr. Rajit Mehta Executive Director & Chief Operating Officer Max New York Life Insurance Co. Ltd. Mr. Anil Mehta Sr. Director, New Business SBU Max New York Life Insurance Co. Ltd. Mr. Sunil Kakar
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Sr. Director and Chief Financial Officer Max New York Life Insurance Co. Ltd. Mr. Ajay Seth Senior Director- Legal & Compliance Max New York Life Insurance Co. Ltd. Mr. Debashis Sarkar Senior Director & Chief Marketing Officer Max New York Life Insurance Co. Ltd. Mr. John Poole Chief Actuary Max New York Life Insurance Co. Ltd. Mr. Prashant Tripathy Executive Vice President- Strategic Planning and Business Development Max New York Life Insurance Co. Ltd. Our Vision Max New York - where exceeding expectations through innovative solutions is "our" way of life This is the compelling vision that Max New York India has created through the active contribution of its employees. These lines not only define the way we live

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and work but also serve as a reminder to deliver the best to our customers, shareholders, colleagues, partners & employees at all times. Embedded in this vision are the core values of Integrity, Customer centricity, Passion for winning, Innovation and Empowered team that we have collectively defined and committed to working towards.

Achievements and Awards Some of the Industry Firsts

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

First company to start toll free line for agent services First and the only life insurance company in India to implement Lean methodology of service excellence in service industry

First life insurance company in India to provide various services to the agents and customers over phone

First Indian life insurance company to start service center at the regional level

First life insurance company in India to be awarded ISO 9001:2000 certification

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Awards

Outlook Money survey ranked MNYL No.1 in Slow, Medium and Quick fund categories

BT Mercer Ranked No7 in the Best companies to Work For Awarded the Gallup Great Work Place Award 2009 CII Exim Bank Commendation Certificate for Business Excellence 2008

Recognized as a Superbrand Recipient of 2008 CIO 100 Award for technology implementation Golden Peacock Award for Innovation 2008 Among the top 25 companies to work for in India, according to Businessworld 2003 Great Workplaces of India

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

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

Received Best Six Sigma Project award at Sakal Six Sigma Excellence Awards 2006

Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by Asia Insurance Review
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Received the Amity Corporate Excellence Award 2007 Received the Outlook Money Award for being among the best new insurers in the country.

First life insurance company to be awarded CII-Exim Bank Commendation Certificate for Strong Commitment to Excel - 2008. ORGANIZATION SALES FORCE The company currently has around 93,000 agent advisors and more than 800 own employed sales force at 712offices across 389 cities. The company also has 36 referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships each. Max New York Life has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. The company has 133 offices dedicated to rural areas. Max New York Life invests significantly in its training programme and each agent is trained for around 100 hours as opposed to the mandatory 50 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 400 hours in two years. This focus on continuous quality
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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. 218 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2008. 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. Max New York Life offers a suite of flexible products. It now has 37 individual life and health insurance products and 8 riders that can be customised to over 800 combinations enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 7 riders in group insurance business. The company currently has more than 12000 employees. Vision- To become the most admired life insurance Company in India. PROMOTION STRATEGIES Advertisement on television Daily Query column in Financial Express News Paper Through companies employees/advisors Sponsor the film VIRUDDH (cast by Amitabh Bachhan etc.)

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COME DEAR I WILL TAKE U TO THE SKY-MAX NEW YORK LIFE INSURANCE CO. LTD. INDIA FACT SHEET OF THE MAX NEW YORK LIFE INSURANE CO.LTD. Max New York Life Insurance Co. Ltd. FACT SHEET As of July 31st, 2009 Founded Started Operations Headquarters World Wide Web Address Chairman Managing Director & CEO Paid-Up Capital Sum Assured Number of Policies Sold Employees Agent Advisors 2000 April 2001 New Delhi, India http://www.maxnewyorklife.com Analjit Singh Rajesh Sud Rs. 1,782 crore Rs 1,03,500 crore 3.9 million 12,531

92,667 Number of Products (INDIVIDUAL) 37 Number of Riders/Options 8 (Individual) Product Combinations Possible (Individual) Number of Products (Group) Number of Riders/Options (Group) Over 800 6 7
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Number of Offices Number of Offices Dedicated To Rural Business MDRTs Trainers

712 137 (21 hub offices, 116 spoke offices) 218 (for calendar year 2008) 824 Table: 1

Business mix by worldwide sales

1. 2.

Long-term savings and fund management 71%. General insurance and health 29%

MAX NEW YORK LIFE INSURANCE BRAND AAMBASSADOR

Amitabh Bachchan to endorse Max New York Life's Max Vijay Life insurance company Max New York Life has appointed veteran actor Amitabh Bachchan as the ambassador for its product, Max Vijay, that was launched towards the end of 2008.
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Max Vijay is a product designed to meet the investment and insurance needs of the investor, particularly the underprivileged strata of society. The policy offers stable investment returns, with insurance and savings at low entry level premiums of Rs 1,000, Rs 1,500 and Rs 2,500. Investors have the convenience to pay amounts between Rs 10-2,500 per day. The policy does not lapse as long as there is sufficient value in the policy account to cover charges, even if no subsequent premiums are paid.

On choosing Bachchan as the ambassador, Anisha Motwani, executive vicepresident, marketing and chief marketing officer, new markets, Max New York Life Insurance, tells afaqs!, "This is a low ticket product and we launched the product with the large objective of providing financial independence to the masses. When the objective is as large, one needs a celebrity ambassador who has a stature that could reach out to a large mass of the population."

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Motwani says that the product was launched in the retail channel earlier with below-the-line activities and a more aggressive campaign will be launched in mid-September.

The launch will be in a phased manner, beginning from Uttar Pradesh, where the business model of the product will be tested.

"We are targeting people in the annual income bracket of Rs 60,000-1,00,000.

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PRODUCT PROFILE

FINANCE POLICY OF MAX NEW YORK LFIE INSURANCE CO. LTD. Max New York Life Insurance Company Ltd. is a joint venture between Max New York of UK and Dabur, one of India's leading producer of traditional healthcare products. Max New York holds a 26 percent stake in the joint venture and the Dabur group holds the balance 74 per cent share. Max New York is UK's largest and the world's sixth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world.

Max New York pioneered the concept of Bancassurance in India. Currently, Max New York has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir and Maharashtra and one regional Bank in Sikkim.

Max New York has 40 Branches in India (including rural branches)

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supporting its distribution network. Through its Bancassurance partner locations, Max New York products are available in 378 towns and cities across India.

Investments in life insurance provide the dual benefit of saving for your future financial requirements as well as financial security for your dependants in case of your death. Unlike other investment instruments (term deposits, mutual funds and stock market securities etc.), the nature of life insurance products is such that they are designed for the long term (10 years or more) and provide the best results when they are continued for their full term.

The right investment strategies won't just help you plan for a more comfortable tomorrow -- they will help you get

At Max New York, life insurance plans are created keeping in mind your changing needs and your family's. Our life insurance plans are designed to provide you with flexible options that meet both protection and savings needs.

We offer our customers a full range of transparent, flexible and value for
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money products that include whole life (LifeLong), endowment (LifeSaver, SaveGuard, EasyLife Plus, LifeSaver Plus, LifeSaver Super and a traditional endowment Dhan Vriddhi), child plan (Max New York Little Master) single premium (LifeBond Plus), pension (Pension Plus), term (Life Shield), fixed term protection cum savings plan (Freedom Life Plan) and a short-pay recurring premium investment cum protection plan (LifeBond5). Max New York products are modern and contemporary unitized products that offer unique customer benefits like flexibility to choose cover levels, indexation, partial withdrawals and unique investment options like a Systematic Transfer Plan to get the benefit of systematic investments and an Automatic Asset Allocation Plan which changes the risk structure on your investments as your age increases. We also have 3 rural plans which are a low cost term plan Amar Suraksha and 2 endowments Anmol Suraksha and Jana Suraksha. We also offer you a choice of investment options. You can choose between our Unit Linked Fund and our With Profits Fund (only on Pension Plus). The With Profits Fund guarantees that the selling price of the units will never fall. The unit value of this fund is increased by crediting bonuses on a daily compounding basis. The fund provides investment security to your capital. The Unit Linked Funds are designed to provide relatively more progressive capital growth wherein you automatically receive the benefit related to the investment performance of the fund.
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Under our Unit-Linked Insurance Plans we offer a choice of Unit-Linked Fund options: Bond Fund: To generate a steady income through investment in high quality fixed income securities. The fund comprises of 100% debt and money market and no equities. Protector Fund: Progressive returns on your investment by investing higher element of assets in debt securities, with minimum exposure to equities. The fund comprises of debt securities in the range of 60-100%, equities in the range of 0-20% and money market and cash in the range of 0-40%. Secure Fund: The investment objective of this fund is to provide progressive return on your investment with a minimum guarantee on maturity. The fund comprises of debt securities in the range of 50-100%, equities in the range of 0-20% and money market and cash in the range of 0-40%. Initially the equity exposure will be 10 %. Balanced Fund: The investment objective of this fund is to provide capital growth by availing opportunities in debt and equity markets and providing a good balance between risk and return. The fund comprises of debt securities in the range of 50-90%, equities in the range of 0-45% and money market and cash in the range of 0-40%. Growth Fund: The investment objective of this fund is to provide high capital growth by investing higher element of assets in the equity market.
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The fund will comprise of debt securities in the range of 0-50%, equities in the range of 30-85% and money market and cash in the range of 0-40%. Index Fund: To generate returns in line with the stock market index NIFTY. The fund comprises of debt and money market securities in the range of 0-20% and equities in the range of 80-100%. Enhancer Fund: To provide aggressive, long term capital growth with high equity exposure. The fund will comprise of debt and money market in the range of 0-40% and equities in the range of 60-100%.

Max New York also offers a whole range of group insurance and savings products catering to pensions, gratuities, credit protection and pure protection. We have a dedicated team that works with corporates across the country. Individual At Max New York we are dedicated to helping you make the most out of your life, and that includes all your savings and protection requirements. We are here when you need to make informed financial decisions - for you, and for your loved ones. We offer products under the following six categories for individuals

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1. Whole Life As the name suggests, these products continue throughout your life and pay out to your dependants only upon your death. These are useful if you want to create a financial corpus for your family.

LifeLong

2. Pure Term Pure term products are designed to provide your dependants financial protection at a low cost in case of your death.

Life Shield

3. Endowments Endowment products are meant to help you create a corpus to meet financial needs during your lifetime. These products also provide a financial cover in case of death

EasyLife Plus LifeBond 5 LifeSaver SaveGuard LifeSaver Plus LifeSaver Super Freedom Life Plan Max New York DhanVriddhi
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Anmol Suraksha

4. Single Premium single premium products are meant for lump sum investments. These products are meant for maximizing your investment returns while providing tax benefits on your investment. LifeBond Plus

5. Pension Plans pension products as the name sug Pension Plus

6. Child Plans child plans are meant for investments benefiting your child when he/ she needs them. Investments in these plans can be used for needs like funding higher education, setting up a business, marriage expenses etc.

Max New York Little Master

1. Endorsement request form 2.Reinstatement request forms

LifeLong, Life Saver or Young Achiever EasyLife Plus, Treasure Plus, SaveGuard or Life Bond5

Life Shield, Secure Life, Amar Suraksha or Anmol Surakshagests are meant for retirement planning and aim to maximize your post retirement income
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Group Our Group products are designed keeping in mind the special requirements of organizations and large groups EasyLife Plus Corporate Life Credit Net Superannuation Group Gratuity Credit Plus LoanSuraksha Group Shield

Rural At Max New York we have specially designed products for the rural sector Amar Suraksha Jana Suraksha WELFARE POLICYOF MAX NEW YORK 1. Policy statement We recognize that our business activities have direct and indirect impacts on the societies in which we operate. We endeavour to manage these in a responsible manner, believing that sound and demonstrable performance in relation to Corporate Social Responsibility MAX NEW YORK LIFE INSURANCE CO. LTD. and practices is a fundamental part of business success.

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As a part of its global philosophy, Max New York India will also develop and follow a Corporate Social Responsibility (CSR) programme that will demonstrate it as a good corporate citizen. The CSR programme will be evolved and developed with the active participation of the employees who will believe in such a philosophy. The programme will be evolved and developed by the respective team of Max New York employees at each location across the country, under the guidance of the CSR Corporate Team at the Head Office. To provide a focused and structured approach to the programme, Max New York in the beginning, will limit its support to causes related to the elderly and children, including destitutes, mentally and physically challenged children. It will enlist specific Non Government Organisations (NGOs) and associations who work for these causes. Max New York has also formulated MAX NEW YORK LIFE INSURANCE CO. LTD. related to Environment and Human Rights, which have an indirect impact on CSR too. Please refer to these MAX NEW YORK LIFE INSURANCE CO. LTD. individually for more details. 2. Purpose The purpose of Max New Yorks CSR Policy is to convey the true meaning of
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CSR to the stakeholders of the organisation as well as to ensure their commitment to the programme.
3. Scope

This Policy applies to all parts and activities of Max New York in India, including the branches.
4. Underlying philosophy

Max New York believes in

giving back

what it gets from the society. The CSR

programme followed by the organisation with the active participation of the employees will essentially work towards that belief. The manner in which we interact with the world in which we operate determines our place within it. This global statement of Max New York plcs CSR programme represents a first step into defining Max New Yorks view and will be developed over time. PRODUCTION POLICYOF MAX NEW YORK LIFE INSURANCE CO. LTD. POLICYPROCESSING The Cumberland Insurance Group, a Bridgeton, N.J., multi-line carrier, has placed Mount Arlington, N.J.-based AGO Insurance Software Inc.'s Commercial Multi-Peril Policy System in its production environment. The Windows program will be used to streamline the Policy cycle process for CMI. SECURING PERSONAL INFORMATION

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In an effort to comply with regulatory mandates, American National Insurance Co., Galveston, Texas, selected PGP Universal from Palo Alto, Calif.-based PGP Corp., to secure electronic communications containing personal and confidential information. POLICYADMIN, LIFECYCLE SUPPORT Quick Solver, a Policy administration solution from INSTEC Corp., Naperville, Ill., is in full production at Cheshire, Conn.-based Housing Authority Insurance Group (HAI Group). Existing data was imported in real time during the rating process, and Quick Solver Policy data was exported to HAI Group's data warehouse for data mining. Quick Solver is designed to provide a Policy administration solution including bureau-compliant rating for all 50 states, full Policy issuance capabilities and full Policy lifecycle transaction support. WORKERS' COMP POLICYAND CLAIMS SYSTEM After a two-month set up and configuration, Umialik Insurance Co., a multiple line, property/casualty insurance company headquartered in Anchorage, Alaska, went live with a workers' compensation Policy and claims systems from Tropics Software Technologies, Sarasota, Fla. CUSTOMER RELATIONSHIP MANAGEMENT

37

AIG Edison Life Insurance, a Tokyo-based division of American International Group Inc., providers of insurance and financial services, selected Bellevue, Wash.-based Onyx Software Corp. to support AIG's ongoing customer relationship management strategy

Financial Planning The uniqueness of life insurance products is that you can combine protection and long-term savings, enabling you to safeguard and provide for your family. Max New York Life Insurance provides you three easy-to-use tools: 60 sec Financial Health Check will give you an indication of how healthy your finances are. Lifecycle Guide will take you through different stages of life and possible financial needs. Record Sheet is useful to record details of all your investments. . These tools are designed to give you an overview of your financial needs. To fully plan for your future, please contact our Financial Planning Adviser.

38

RELIANCE COMPANY PROFILE

RELIANCE LIFE INSURANCE Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services. Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporates. Opportunity has a new name Reliance Life Insurance Company Limited. If you have been waiting for that one job which will enrich your professional and
39

personal life then you are at the right place. At Reliance Life Insurance Company Limited our mission is to be the best in every sphere - business results, customer care and employee focus. Some of our core values are: 1. Result Oriented 2. Performance Driven 3. Customer Focused 4. Learning & Development Oriented 5. Employee centric 6. Informal & fun In the area of Human Resources we are looking towards fulfilling our core values through:
1. An open environment enabling free interaction between all levels.

2. A balanced scorecard approach to strategy deployment and performance

3. Measurement which set goals and measure financial, customer focused,

process related and employee development related initiatives. 4. Aggressive Reward & Recognition plans including sales incentives
5. Career Development plans that will identify potential and create avenues for growth. 6. Intensive training practices for both functional as well as competency

development.

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OUR FOUNDER

Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977,
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when Reliance Textile Industries Limited first went pubReliance, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families.

PROMOTION STRATEGIES Advertisement on television

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 Daily Query column in Financial Express News Paper Through companies employees/advisors Sponsor the film VIRUDDH (cast by Amitabh Bachhan etc.) FACT SHEET OF THE RELIANCE JOINT VENTURE MANAGING DIRECTOR PAID UP CAPITAL LOCATIONS CURRENT BUSINNES : Dabur (74% stake) : Mr. Stuart E. Purdy : Rs 559 crores : 41 branches, 378 locations : In India,Rs.50.53 crore premium in first quarter

of 2005-2006. Last quarter it was Rs 32.59 crore. TOTAL SALES : In India ,Total sales from the joint-venture life

business with Dabur Group increased by 86% to 50 million i.e.Rs.3700 million (2004: 27 million i.e. Rs1971 million), NET PROFIT : Worldwide 1,318 million i.e.Rs 96,214

million (2004: 1,076 million i.e.Rs.7854 million),increase by 21%.

RELIANCE PLC INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2009
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 Worldwide operating profit up 21% to 2.904 million Life operating profit up 5% to 857 million, with more than 60% coming from businesses outside the UK; Group margin up at 3.6% (2005: 3.5%) Strong long-term savings sales growth, up 13% to 12,078 million, with bancassurance a major driver for growth in continental Europe and Asia Sustained excellent general insurance performance, with general insurance and health profits up 18% to 694 million, and worldwide combined operating ratio ahead of target at 95% (2005: 97%) Strong performance from fund management with profits up 94% to 33 million# (2004: 17 million) and assets under management up to over 290 billion (31 December 2005: 280 billion) 35.0 billion worldwide sales 27.27 pence full year dividend 15.0% return on capital employed 14.9 billion equity shareholders funds

Strength and highlights 2009

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We have a balanced portfolio that benefits from diversification of distribution, products and geography.

We continue to focus on managing the business to create value for shareholders and customers.

We have delivered another strong performance from our international long-term savings businesses.

Bancassurance goes from strength to strength, with total sales up 22%. The acquisition of RAC has created a powerful new force in insurance and motoring services.

PRODUCT PROFILE
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RELIANCE LIFE INSURANCE These are the products offered by Reliance life insurance:Health a. Individual Medclaim b. Group Mediclaim c. Reliance HealthWise Reliance Personal Accident a. Personal Accident b. Group Personal Accident Fire a. Standard Fire and Special Perils b. Consequential Loss (Fire) c. Industrial All Risks Engineering a. Erection All Risks/Storage-cum-Erection b. Contractors All Risks c. Contractors Plant and Machinery d. Machinery Breakdown Insurance e. Machinery Loss of Profits Insurance f. Boiler and Pressure Plant Insurance g. Electronic Equipment Insurance
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Marine a. Marine Cargo Insurance Motor a. Private Car Comprehensive Liability a. Directors and Officers Liability b. PubReliance Liability (Act) c. PubReliance Liability d. Product Liability e. Professional Indemnity f. Workmens compensation Miscellaneous a. Industry Care b. Commercial Care c. Office Package d. Fidelity Guarantee e. Burglary and Housebreaking f. Money Insurance g. Householders Package h. Shopkeepers Package
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Travel a. Individual and Family b. Asia c. Student

d. Corporate

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PART 2 PROJECT OVERVIEW

INTRODUCTION

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A project means some task assigned by the company during my two months training along with my training. Target I will also concentrate on the project assigned to me. My project topic is Comparison of Marketing Strategies between Max Newyork Life Insurance Co. Ltd. & Reliance Life Insurance Co. Ltd. Every asset has a value for its owner and also for those who are benefited with the existence of that asset. Insurance is concerned with the protection of economic value of assets. All of us are interested in the creation of assets because: 1. All assets have values 2. They yield income to the owner. 3. They meet some other needs of the owner. 4. They may provide satisfaction of some needs and also yield income to the owner. Purpose and need for insurance: Assets are likely to be destroyed or made non-functional due to accidental occurrences called perils. Assets can, therefore, be insured. A few examples of perils are: fire, floods, breakdowns , lightning, and earthquake. Perils are the events. Risks are the consequential losses or damages.
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 Possibility of damage to asset caused by any peril is the risk that asset is exposed to. Risk means uncertainty or unpredictability about future loss or damage, which may or may not happen. This refers to the losses, which may happen suddenly and unexpectedly. This is because of uncertainty about the risk that insurance plays the role. Insurance becomes relevant only if there are uncertainties of occurrence of event leading to loss/es. Insurance is done against the contingency of the happening of such events. No uncertainty No insurance. Insurance as a social security tool: United Nations Declaration of human rights 1948 provides : Every one has a right to a standard of living adequate for health and wellbeing of himself and his family, including food, clothing, housing and medical care and necessary social services and the right to security in the event of unemployment, sickness, disability, widowhood, or other lack of livelihood in circumstances beyond his control. Where the breadwinner of a family dies, familys income stops to that extent affecting the economic condition.

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 Life insurance helps in restoration of the adverse economic condition thus caused. Thus life insurance business is complementary to the States efforts in social management. Social security is now a growing concern for all countries; however, the provisions made in this field vary from country to country. In India, Article 41 of our Constitution requires the State (within limits of its economic capacity and development) to make effective provision for securing right to work, to education and to provide pubReliance assistance in case of unemployment, old age, sickness and disablement. Parts of the obligations under Article 41 are met by the State through the mechanism of Life Insurance. Some social security schemes have been made by the State for economically weaker sections of the society. Role of insurance in economic development: Investments are necessary for economic development. Life insurance plays a major role in mobilization of savings. Savings out of life insurance fund are utilized in investments for economic growth.

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 In the absence of insurance cover against fire and engineering risks, business, industry and trade would be seriously handicapped. Advantages of life insurance:Secured targeted savings a uniqueness Life insurance is not merely an investment or a saving device-much more than that. In any other investment or saving avenue, like bank deposits, savings certificates or mutual funds or shares and stocks etc., amount of funds available at any time will not be more than the amount saved, appreciation or interest earned till then. In life insurance, the amount available is the one that one wished to have at end of the savings period which may range up to 30 or even more years. Life insurance has advantages over the other forms of savings: Facility of nomination and assignment makes the claim settlement easy on death. Life insurance involves compulsory savings. Tax benefits on premium paid as well as the amount received by way of claim.

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OBJECTIVE OF THE PROJECT

This research report is being presented in such a way that on every step of the report the objective of the study remains in the tune. The very emphasis is going to be paid on the scope and the importance of the study. Insurance may be said as the assurance against the risk. The Indian insurance industry is growing with a new pace as the multinational organizations like Reliance Life Insurance as the joint venture with the Reliance in the life insurance business and Iffco-Tokyo life and non-life business respectively. The research focuses the attention on the facts that are going to be more crucial for the Indian insurance industry-Reliance and Max New York Life Insurance Co. Ltd. Since the India is the second largely populous country in the world that means in the India there are a number of the potential customers for the insurance business. The research report summaries all those facts and figures that are of the immense importance for the readers. The report consists the challenges and the prospects in the life insurance of Reliance and Max New York Life Insurance Co. Ltd. In 2003, the Indian insurance market ranked 19th globally and was the fifth largest in Asia. Although it accounts for only 2.5% of premiums in Asia, it has the potential to become one of the biggest insurance markets in the region. A combination of factors underpins further strong growth in the market, including
54

sound economic fundamentals, rising household wealth and a further improvement in the regulatory framework. The insurance industry in India has come a long way since the time when businesses were tightly regulated and concentrated in the hands of a few public sector insurers. Following the passage of the Insurance Regulatory and Development Authority Act in 1999, India abandoned public sector exclusivity in the insurance industry in favour of market-driven competition. This shift has brought about major changes to the industry. The inauguration of a new era of insurance development has seen the entry of international insurers, the proliferation of innovative products and distribution channels, and the raising of supervisory standards. Insurance development and potential Notwithstanding the rapid growth of the sector over the last decade, insurance in India remains at an early stage of development. At the end of 2003, the Indian insurance market (in terms of premium volume) was the 19th largest in the world, only slightly bigger than that of Denmark and comparable to that of Ireland.2 This was despite India being the second most populous country in the world as well as the 12th largest economy. Yet, there are strong arguments in favour of sustained rapid insurance business growth in the coming years, including Indias robust economic growth prospects and the nations high savings rates
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LITERATURE REVIEW
Max New York is UKs largest and the worlds fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Max New York has a 40 million-customer base worldwide. It has more than 364 billion of assets under management. In India, Max New York has a long history dating back to 1834. At the time of nationalisation it was the largest foreign insurer in India in terms of the compensation paid by the Government of India. Max New York was also the first foreign insurance company in India to set up its representative office in 1995. In India, Max New York has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally managed company, Dabur is the country's leading producer of traditional healthcare products. In accordance with the government regulations Max New York holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share.

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With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), Max New York has initiated an innovative and differentiated sales approach to the business. Through the Financial Health Check (FHC) Max New Yorks sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customers long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them. Max New York pioneered the concept of Banc assurance in India, and has leveraged its global expertise in Banc assurance successfully in India. Currently, Max New York has Banc assurance tie-ups with ABN Amro Bank, American Express Bank, IndusInd Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra nks. Pradesh and Maharashtra and regional Bank When Max New York entered the market, most companies were offering traditional life products. Max New York started by offering the more modern Unit Linked and Unitised With Profit products to the customers, creating a unique differentiation. Max New Yorks products have been designed in a manner to provide customers flexibility, transparency and value for money. It has been among the first companies to introduce the more modern Unit Linked
57

products in the market. Its products include: whole life (LifeLong), endowment (Lifesaver, Easy Life Plus, Lifesaver Plus), child policy (Young Achiever, Save Guard Junior, Max New York Little Master) single premium (Life Bond and Life Bond Plus), Pension (Pension Plus), Term (Life Shield), fixed term protection plan (Freedom Life Plan) and a tax efficient investment plan with limited premium payment term (LifeBond5). Max New York products are modern and contemporary unitised products that offer unique customer benefits like flexibility to choose cover levels, indexation and partial withdrawals. Max New Yorks Fund management operation is one of its key differentiators. Operating from Mumbai, Max New York has an experienced team of fund managers and the range of fund options includes Unitised With-Profits Fund and seven Unit Linked funds: - Protector Fund, Secure Fund, Balanced Fund, Growth Fund, Enhancer Fund, Index Fund and Bond Fund.

Max New York has 193 Branches in India (including rural branches) supporting its distribution network. Through its Banc assurance partner locations, Max New York products are available in more than 2,795 locations across India. Max New York is also keen to reach out to the underprivileged that have not had access to insurance so far. Through its association with Basic (a micro financial institution) and other NGOs, it has been able to reach the weaker sections of the society and provide life insurance to them.
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Max New York has been felicitated with the "Bronze Award for Excellence in People Management" by Grow Talent Company Limited and Business world. This honour is given to Max New York based on the ranks received in top 25 lists of the Great Place to Work India studies conducted in the last four years. Max New York was ranked 12th in 2004, 14th in 2005 and 13th in the year 2006. 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 its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But
59

Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring MAX NEW YORK LIFE INSURANCE CO. LTD. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and MAX NEW YORK LIFE INSURANCE CO. LTD. formed by an Act of Parliament, viz. MAX NEW YORK LIFE INSURANCE
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Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. 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 (Nationalisation) Act, 1972 nationalized 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.,
61

*The New India Assurance Company Ltd., *The Oriental Insurance Company Ltd. and *The United India Insurance Company Ltd. GIC incorporated as a company.

1. REGULATION OF THE INSURANCE BUSINESS Regulation of insurance companies began with the Indian Life Assurance Companies Act, 1912. In 1938, all insurance companies were brought under regulation when a new Insurance Act was passed. It covered both life and nonlife insurance companies. It clearly defined what would come under life and non-life insurance business. The Act also covered, among others, deposits, supervision of insurance

companies, investments, commissions of agents and directors appointed by the MAX NEW YORK LIFE INSURANCE CO. LTD. holders This piece of

legislation lost significance after the insurance business was nationalized in 1956 (life) and 1972 (non-life), respectively. When the market was opened again to private participation in 1999, the earlier Insurance Act of 1938 was reinstated as the backbone of the current legislation of insurance companies, as the IRDA Act of 1999 was superimposed on the 1938 Insurance Act. By mid-2004, there were 21 private sector insurance
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companies operating in India, alongside eight insurance sector companies. Of these, there were 14 life insurance companies comprising one MAX NEW YORK LIFE INSURANCE CO. LTD. (the old monopoly) and 13 private companies. Most private companies had foreign participation up to the permissible limit of 26% of equity. 2. A BRIEF HISTORY The business of insurance started with marine business. Traders, who used to gather in Lloyds coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of the pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ships. The first insurance Policy was issued in1583 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 Insurance Society Ltd, formed in 1870. This was followed by the Oriental Life Assurance Company 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 the Bombay, the National in Calcutta, the New India in Bombay, the Jupiter in Bombay and the Lakshmi in the New Delhi. These were all Indian companies, started as the result of the swadeshi movement in the early 1900s. by the year 1956, when the life insurance business was
63

nationalized and the Life Insurance Corporation of India was formed on 1 st September 1956, there were 170 companies and 70 provident fund societies transacting life insurance business in India. After the amendments to the relevant laws in 1999, the MAX NEW YORK LIFE INSURANCE CO. LTD. 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. The business of insurance is related to the protection of the economic values and the assets. Every asset has a value. The asset is valuable to the owner, because the owner expects to get some benefits from it. The benefit may be an income or something else. It is a benefit because it meets some of his needs, in the factory or cow, the product generated is sold and income is generated. In case of a motor car, it provides comfort and convenience in transportation. There is no direct income. Companies at present scenario:MAX NEW YORK LIFE INSURANCE CO. LTD. Max New York Plc Max New York Plc is the largest life and general insurance group of UK and the world's seventh largest insurer with world wide premium income and retail investment sales of 28 billion and more than 200 billion in assets under
64

management. Max New York Plc is the holding company of Max New York group of companies which is in to life assurance business, long term savings, all classes of general insurance business and fund management. The group has 64,000 employees serving 25 million customers. Dabur India Limited Established in 1884, Dabur is one of India's oldest and largest group of companies with interests in ayurvedic specialities, pharmaceuticals, personal care and healthcare products. The annual sales turnover of the group is over Rs. 1200 crores. For more than a century Dabur has worked in active collaboration with nature to provide the best of herbal health and personal care products to its consumers. The Joint Venture Max New York Life Insurance Company, a joint venture between Dabur India and CGU, a wholly owned subsidiary of Max New York Plc, is capitalized at Rs. 110 crore. Mr. Stuart Purdy is the managing director of Max New York Life. Max New York Life has tied up with ABN Amro, Canara Bank, Laxmi Vilas Bank and American Express for distribution of its products

65

RESEARCH METHODOLOGY

INTRODUCTION TO THE PROBELM

(1) To study the present comparison between Max New York Life Insurance Co. Ltd. & Reliance Insurance. The market position of Max New York Life Insurance Co. Ltd. can be known by working followings problems: By studying the annual sales figures of Max New York Life Insurance Co. Ltd. & reliance Life Insurance in the area. By studying the total number of monopoly counter of Max New York Life Insurance Co. Ltd. market. By studying the total number of crates (empties) of reliance Life Insurance in that area. By studying the total number of some sample area. & reliance Life Insurance in the concerned sample

By studying the total number of freezers. Before knowing about the research methodology this will be better to know that what the research is.

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RESEARCH Research comprises defining and redefining the problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions. In other words this may be said that the systematic approach concerning generalization and the formulation of a theory is considered as the report. RESESARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying that how research is done scientifically. In it we study various steps that are generally adopted by a researcher in studying his research along with the logic behind them. Thus when we talk about research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. TYPES OF THE RESEARCH There are various types of researches exist that are conducted as par the requirement of the problem and the situation.

67

Some important and popular types of researches are being defined here that are very frequently used for the purpose of conducting the research study for any given problem. Exploratory Research It also termed as formulatives research It discovers new relationships. It falls under basic research. It tends to loose structure with the objective of discovering new facts for facts future research tasks. The purpose of it is usually to develop hypotheses or questions for further research It is useful when the researcher lacks a clear idea of the problem Exploration may also save time and many RESEARCH DESIGN Research design is simply the framework or plan for a study, used as a guide in collecting and analyzing data. There are three types of Research Design:Exploratory Research Design:- The major emphasis in exploratory Research design is on discovery of ideas and insights. 1. Descriptive Research Design:- The Descriptive Research Design
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Study is typically concerned with determining the frequency with which something occurs or the relationship between two variables. 2. Casual Research Design:- A Casual Research Design is concerned with determining cause and effect relationship. For the study, Descriptive Research Design was undertaken as it draws the opinion of employees/ workers on a specific aspect. RESEARCH DESIGN FOR EXPLORATORY RESEARCH OBJECTIVE OF THE STUDY Increase need for more better information Availability of different measurement tools to fulfill the need To facilitates scientific and methodological and logical thinking of all.

SAMPLING DESIGN (a) Population:Element: Consumers Sampling Unit: Comparison between Max New York Life Insurance Co. Ltd. & Reliance Insurance. Time: June 09 Aug 09. (b) Data Approaches Questionnaire
69

(c) Data Source Primary and Secondary

(d)Sampling Unit:Comparison between Max New York Life Insurance Co. Ltd. & Reliance Insurance. (e) Sample Size (f) Universe (g) Sampling Method:There are two methods of sampling:1. Probability Sampling: It is based on the concept of random selection of a controlled procedure that assures that each Population element is gives a nonzero chance of selection. Probability Sampling is of following types: 1. Simple Random 2. Systematic 3. Cluster 4. Stratified 5. Double 2. Non-Probability Sampling: Non probability sampling is non-random and subjective. That is each member does not have a known non zero chance of being included. Types of Non-Probability Sampling
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:- 100 : Moradabad

1. Convenience 2. Judgement 3. Quota Researcher selects the sample as per their convenience. For this research work I have choosen Non- Probability Convenience Sampling because time limit for the completion of the work is limited and also managers and employees are not available all the time. DATA COLLECTION METHOD Data for the present study is collected from two sources: a. Primary:- The first hand information is collected with the responses of questionnaire. For this purpose a questionnaire is given to the managerial staff of the CAP. They were asked to choose the best alternative among the given alternatives, as per their knowledge, experience and observation. b) Secondary: - Secondary data will be collected from published sources like Journals, Magazines, various newspapers and published books. (i) Time :Two months

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FINDINGS & ANALYSIS

1. Which Insurance Company you prefer? Term of investment Max New York Reliance Table % of customers 80 20 -6

20% Max New York Reliance 80%

Figure- 1

Interpretation: 80% of the customers prefer Max New York and 20% customers prefer Reliance.

2. Are you comfortable with fluctuations in the level of investment?

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Options Yes No

% Respondents 42 58

of

Table -7

42% Yes No 58%

Figure 2

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Interpretation : 42 % of the respondents are comfortable with fluctuations in the level of investment whereas 58% of the respondents are not comfortable with fluctuations in the level of investment.

3. What rate of return you expect on your investment? a.10-20% [ ] b.20-30% [ ] c.30-40% [ ] d.40-50% [ ] e.above 50% [ ]

Rate of return % of respondents Below 10% 17 10%-20% 33 20%-30% 34 30%-40% 8 Above 40% 8 Table -8

8 33 10%-20% 20%-30% 30%-40% above 40% 34

Figure 3 Interpretation : 17% of the respondents prefer 10%-20% rate of return on their investments.33% prefer 20%-30% rate of return on their investments.34% prefer
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30%-40% rate of return on their investments.8% prefer 40%-50% rate of return on their investments.8% prefer above 50% rate of return on their investments. Q.4. Which kind of products you want? A Purely for protection [ ] b. Purely for saving [ ] c. Both [ ]

Options % of respondents Purely Saving Products 25 Purely Protection 25 Product Both 50 Table -9

25% 50% 25%

Purely Saving Product Purely protection Product Both

Figure 4

Interpretation : 25% of the respondents prefers Purely Savings Products. 25% of the respondents prefers Purely Protection Products. 50% of the respondents prefers both type of products.

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Q.5. For what purpose you need insurance? a. Travel [ ] b.Vehicle [ ] c. home [ ] d.Health [ ] e.Marine Options Travel Vehicle Home Health Marine Others % of respondents 3.33 26.67 33.33 66.67 0.67 2.67 Table -10

0.67 2.67 3.33

26.67

travel vehicle home health

66.67 33.33

marine others

Figure 5

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Interpretation : 3.33% of the respondents needs travel insurance. 26.67% of the respondents need insurance for vehicle. 33.33% of the respondents needs insurance for their homes.66.67% of the respondents needs insurance for their health.0.67% of the respondents needs marinel insurance.2.67% of the respondents needs insurance for other purposes. 6.Which kind of plans you prefer most? a. ULIPs [ ] b.traditional plans [ ]

Options % of respondents ULIPs 40 Traditional plans 60 Table -11

40% 60%

UIPs Traditional Plans

Figure 6

Interpretation: 70% of the respondents prefers ULIPs whereas 30% of the respondents prefers traditional plans.
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Q.7 Which sector do you prefer ? a.Max New York [ ] b. Reliance [ ]

Options % of respondents Max New York 66 Reliance 34

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Table 12

34% Max New York 66% Reliance

Figure 7

Interpretation:At 5% level of significance we conclude that the critical value at 5% level of significance is 1.64 & the significance ratio is 4.50 whichis beyond the critical value so the hypothesis is rejected. Hence there is a significant difference between the people who invest in Max New York sector and who invest in Reliance Q.8 Which company do you prefer for insurance?
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a.Max New York [ ] b.Reliance [ ]

Options % of respondents Max New York 60 Reliance 40 Table -13

40% Max New York Reliance 60%

Figure 8

Interpretation: From the above table we can interpret that for insurance Max New York 60% people prefers and prefers Reliance,40% people prefer other companies.

Q.9. Factors responsible for switching of customers to other Insurance policies. New Policy Condition of Premium Maturity Date
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Option New Policy Condition of Premium Maturity Date

Number of People in % 10 20 70 Table: 14

10% 20% 70%

New Policy Condition of Premium Maturity Date

Fig. 9

Interpretation: 70% of the People prefer Condition of Premium.

Q.10. Factors generally considered before purchasing Max New York Policy Tax Rebate Security Investment Purpose Any other

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Option

Number of People in % 20 60 15 5

Tax Rebate Security Investment Purpose Any Other Table: 15

Tax Rebate 15% 5% 20% Security Investment Purpose Any Other

60%

Fig. 10

Interpretation: 60% of the People prefer Security. Q.11 Policies that the customers are using at present. Pension Plus Plan Childrens plan Endowment Plan.

Option Pension Plus Plan

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Number of People 60

Childrens Plan Endowment Plan

25 15

Table: 16

15% 25%

Pension Plus Plan Childrens Plan 60% Endowment Plan

Fig. 11

Interpretation: 60% of the People prefer Pension Plus Plan.

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Q.12. Average number of policies taken by individuals. 1 2 3

Option 1 2 3

Number of People 25 60 15

Table: 17

17% 1 50% 33% 2 3

Fig. 12

Interpretation: 60% of the People prefer two Policy of Reliance

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Q.13 Complaints if any faced regarding insurance policy. Yes No

Option Yes No

Number of People 30 70 Table:18

30% Yes No 70%

Fig. 13

Interpretation: 70% of the People prefer No.

FINDING

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1. 80% of the customers prefer Max New York and 20% customers prefer Reliance. 2. 42 % of the respondents are comfortable with fluctuations in the level of investment whereas 58% of the respondents are not comfortable with fluctuations in the level of investment. 3. 17% of the respondents prefer 10%-20% rate of return on their investments.33% prefer 20%-30% rate of return on their investments.34% prefer 30%-40% rate of return on their investments.8% prefer 40%-50% rate of return on their investments.8% prefer above 50% rate of return on their investments. 4. 25% of the respondents prefers Purely Savings Products. 25% of the respondents prefers Purely Protection Products. 50% of the respondents prefers both type of products. 5. 3.33% of the respondents needs travel insurance. 26.67% of the respondents need insurance for vehicle. 33.33% of the respondents needs insurance for their homes.66.67% of the respondents needs insurance for their health.0.67% of the respondents needs marinel insurance.2.67% of the respondents needs insurance for other purposes. 6. 70% of the respondents prefers ULIPs whereas 30% of the respondents prefers traditional plans.
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7. At 5% level of significance we conclude that the critical value at 5% level of significance is 1.64 & the significance ratio is 4.50 whichis beyond

the critical value so the hypothesis is rejected. Hence there is a significant difference between the people who invest in Max New York sector and who invest in Reliance 8. 70% of the People prefer Condition of Premium. 9. 60% of the People prefer Security. 10.60% of the People prefer Pension Plus Plan. 11.60% of the People prefer two Policy of Reliance

CONCLUSION
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After conducting the study of prospects and challenges of Reliance, we come to know that. mostly people prefers investment for 10-15 years and majority of the respondents are comfortable with fluctuations in the level of investment as there are various fund options like protector, secure, growth, balanced available for the investors to protect their investment. From the above study it is concluded that both purely savings and purely protection products are preferred as this depends upon the needs of the investor. From this study we conclude that sale of unit-linked product is increasing dayby- day then traditional products. Unit-linked products are transparent by feature, so everyone wants to know where there are investing their money.

The preferred rate of return lies between 20%-40% and Insurance for health is preferred as compared to other types of insurance. Despite of so many private players in the field of insurance, RELIANCE is still more preferred by people.

SUGGESTIONS
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Prospects of Max New York Life Insurance Co. Ltd. Max New York Life Insurance Co. Ltd. announced an increase in its capital base by Rs 100 crores, taking the total paid-up capital to Rs 559 crores. The fresh infusion will help fuel the aggressive growth plans of the company. Reliance has fared well, increasing its market share to 5.1% during April 2005March 2006, up from 4.2% during the same period last year. Against the life insurance industry growth rate of 32%, Reliance Life Insurance has recorded a growth of 118% compared to the last year.. In the last six months, Max New York Insurance have strengthened their Bancassurance channels, allowing

access to a wider customer base. The current capital infusion of Rs 100 crores will allow us to further expand our operations, launch new products and reach out to the target audience. Reliance offers an exclusive range of unit-linked products to the customers in India. Max New York Life Insurance Co. Ltd. management operation is one of its key differentiators. Operating from Mumbai, Max New York Life Insurance Co. Ltd. has an experienced team of fund managers and the range of fund options includes Unitised With-Profits Fund and Unit Linked funds: - Secure Fund, Balanced Fund ,Protector Fundand Growth Fund Reliance have certainly done their bit to increase the penetration levels of insurance, mainly by creating alternative distribution channels--such as
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associations with banks, brokers and corporate agents. Whereas most of the Max New York Insurance policies continue to be sold through its tied-agency network. The multi-channel approach adopted by Reliance has proved to be a boon in terms of costing and their ability to capture business.The Max New York Insurance was late (January 2004) in pushing its unit-linked product "Bima Plus" Max New York Insurance has shown a compounded aggregate growth rate of 36 per cent since the inception of its fund. Came into India in 2002, Reliance is continuously progressing. Reliance Life Insurance is the only insurance company in private insurance sector that has all its unit-linked products prevailing in the market. Challenges to Max New York Life Insurance Co. Ltd. Reliance stood fourth in the market this year. First was LIC ,next ICICI Prudential, Next Birla Sunlife. has an authorized and paid up capital of Rs 110 crores. nz Bajaj Allianz made a profit after tax of Rs.9.6 crores. In the first half of the current financial year, 2004-05, Bajaj Allianz garnered a premium income of Rs. 405 crores, achieving a growth of 84% and registered a 52% growth in Net profits of Rs.20 Crores over the last year for the same period. Reliance Life Insurance has the authorized capital of the company is Rs.2300 Million. The paid up capital is Rs. 1900
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Reliance life insurance was the at the first slot with 8% market share, Max New York Life Insurance came second with 7.4% market share among the 14 private players.

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LIMITATIONS

It should develop Max New York for other purposes like travel, marine etc.also. Insurance companies should not mislead to customers to provide wrong information about their own Max New York. Rural areas in India lacks this facility so the insurance Max New York should spread their business in rural areas also. Most calls are obtained at the sufferance of the respondent .The interviewer is unknown to the respondent . Survey was restricted to the people who have telephone facility. Despite willingness to co-operate , many persons are unable to give accurate information on questions , which the marketing observer would like to ask. Lack of sufficient time of the respondent. Not much information can be gained from respondents Insurance companies should make personal contact with customer or own client for improving bad promotion.

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 Most of persons do not have full knowledge about insurance Reliance so the companies should try to provide the complete knowledge about insurance Reliance to the customer. By advertising as it creates awareness, interest and desire for products and services in customers to buy. The company should participate in various trade shows thus catering to customers other than normal.

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PART 3 BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOKS

Kothari.C.R., Research Methodology New age international publishers, New Delhi, Second Edition :2004 Kotler Philip- Marketing Management, Person Education (Singapore), Second Edition, 2004,

WEBLIOGRAPHY:

www.maxnewyorklife.com www.reliancelife.co.in

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ANNEXURES QUESTIONNAIRE

Dear Respondent, I am a student MBA. of TMU, Moradabad Conducting a survey on kindly spare for minutes to fill up this questionnaire. I will be highly grateful to you. 1. Which Insurance Company you prefer? Max New York Life Insurance Co. Ltd. [ ] Reliance []

2. Are you comfortable with fluctuations in the level of investment? Yes [ ] No [ ]

3. What rate of return you expect on your investment? a. 10-20% [ ] b.20-30% [ ] c.30-40% [ ] d.40-50% [ ] e.above 50% [ ] 4. Which kind of products you want? A Purely for protection [ ] b. Purely for saving [ ] c. Both [ ] 5. For what purpose you need insurance? a. Travel [ ] b.Vehicle [ ] c. home [ ] d.Health [ ] e.Marine 6. Which kind of plans you prefer most? a. ULIPs [ ] b.traditional plans [ ] 7. Which sector do you prefer ?
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a. Max New York Life Insurance Co. Ltd. [ ]

b. Reliance [ ]

8. Which company do you prefer for insurance? a. Max New York Life Insurance Co. Ltd. [ ] b. Reliance [ ] 9. Factors responsible for switching of customers to other Insurance policies. New Policy Condition of Premium Maturity Date

10. Factors generally considered before purchasing RELIANCE LIFE INSURANCE. Tax Rebate Security Investment Purpose Any other

11 Policies that the customers are using at present. Pension Plus Plan Childrens plan Endowment Plan.

12. Average number of policies taken by individuals. 1 2 3

13. Complaints if any faced regarding insurance policy. Yes No

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