“PRODUCT PROMOTION OF MAX LIFE INSURANCE”

A Project Report Submitted

at

Global Business School & Research Centre, Pune

In Partial fulfillment of degree of Master of Business Administration

Submitted by

(ROHIT KUMAR PANDEY)

(Roll no:-50)

Under the guidance of

Dr. D. Y. Patil Vidyapeeth,

Pimpri, Pune – 411018.
2013-2015

1
 CERTIFICATE

This is to certify that Mr. Rohit Kumar Pande y has worked on the topic

“PRODUCT PROMOTION OF MAX LIFE INSURANCE in at Prof.Tapati

Sarmah

under my guidance. This project is a research outcome conducted by him/her as

part of their curriculum during the summer internship.

Signature
Name & Designation of the guide

2
 DECLARATION

I declare that the project entitled “PRODUCT PROMOTION OF MAX

LIFE

INSURANCE” submitted by me as a part of my curriculum for the award

of

Master of Business Administration at

Global Business School & Research Centre, Faculty of Management, Dr.

D.

Y. Patil Vidyapeeth, Pune, is a original work done by me and has not been

submitted previously anywhere.

Date: -
Signature of Student

Place: - (Rohit Kumar Pandey)

3
 CONTENTS
• Acknowledgement
• Preface
• Executive Summary
1) INTRODUCTION TO TOPIC
1.1 Functions of insurance
 Primary functions
 Secondary functions
 Other function
1.2 Classification of insurance
 Life insurance
 Non Life – General insurance
1.3 Types of policies
1.4 Contribution to Indian economy
1.5 Insurance industry prior to de - regulation
2) Introduction to MAX LIFE INSURANCE COMPANY
2.1 Classification of Insurance
2.2 Types of Policies

4
 2.3 Functions of Insurance
2.4 Contribution to Indian Economy
2.5 Company Profile
2.6 Insurance Management Solution
2.7 Types of Business Proposals
3) RESEARCH METHODOLOGY
3.1 Objective of the Study
3.2 Scope of the Study
3.3 Data Collection
3.4 Data Analysis
3.5 Limitations
4) DATA ANALYSIS AND INTERPRETATION
4.1 Findings

5) RECOMMENDATIONS

5.1 Conclusion
6) Bibliography
7) Annexure
8) Questionnaire

5
 ACKNOWLEDGEMENT

The summer project at Max Life Insurance has been a very memorable and
unique experience for me. It opened up new venues of grabbing knowledge,
which will certainly stand me helpful in the years to come.
It gives me immense privilege and pleasure in expressing my sincere
gratitude and heartfelt thanks to Mr. Kirran Nagwade for giving me the
opportunity to work in his reputed organization. I would also like to extend my
thanks to all other staff at MAX LIFE INSURANCE who have co-operated and
supported me towards the successful completion of this project.
My sincere regards and gratitude to our faculty for giving me support
throughout my M.B.A. degree and thus made me capable of being worthy of
recognition.

6
 I am extremely indebted and too thankful to my project guide Prof. Tapati
Sarmah , who has been most co-operative and encouraging throughout this
project. Without her initiative and constant support this project wouldn’t have
taken place.

Last but not the least I am very grateful to all the advisors who took out
some invaluable time out of their busy schedule and they responded to my
questionnaire and queries and provided me with all the valuable information.

PREFACE

These are the days of the advertising world and not the self-promoting world.
Advertising is one of the very few essential assets allocating concept which is
growing at its zenith rate to bring prosperity and progress to the teeming millions
of countries where people run after jobs. Equally important is the role of
insurance advisors, where the investment field supports advisors and takes
insurance companies to boom, and gleam and yield best results.
I am really happy to present this project before the teachers as it gives me an
incorporated base for further education and knowledge of the worldly scenarios
of the insurance industry.
I have tried my best to bring to you the latest picture of the various plans of M L
and insurance practices.

7
The sections and its included chapters are cordially arranged for the smooth flow
of the subject matter both for ingestion and digestion. I carried out the survey
myself along with the summarization and conclusion of the survey. For the other
material I have freely drawn the material from internet sites and books to bring
to you the latest picture of the insurance industry. Hence, I do not claim any
originality, except for my style of presentation and the survey part.
I am very thankful to Prof.Tapati Sarmah, MBA, GBSRC College, who took the
burden to explain me the movement of the project so that I could bring out the
best possibility.
I have tried to be, as far as perfect: yet the dirty minds always tend to intervene
keeping you in a disguised state to any fault. Hence, I request all teachers to
bring to my notice any such mistakes or any facts so that I can rectify them and
increase my knowledge base. I welcome every suggestion regarding the project
matter and status as I believe in the proverb

8
 EXECUTIVE SUMMARY

TITLE: “PRODUCT PROMOTION OF MAX LIFE INSURANCE”

SCOPE: Scope of this project includes a survey being conducted on

MAX LIFE INSURANCE and an interpretation done of its market stand and
promotion required.

OBJECTIVE: Identify the areas where the performance of Max Life

Insurance can be improved. Study the perception of the consumers about the
company.

9
 In insurance companies recruitment of Financial Consultant plays a very
important role to generate high sales. The overall business depends upon the
Financial Consultant. So to understand the sales performance of Financial
Consultant evaluation program plays vital role. Life insurance companies offer
their services to the customers through the agents and Financial Consultant. So
Financial Consultant plays a very important role for Company.
Because Financial Consultant is the only persons who approach to the
customers, understand their needs, problems. So the overall business depends
upon consumers. For this purpose this Project is carried out to analysis sales
performance through Financial Consultants which is an endless procedure for
organization for the awareness among consumers.

STATEMENT OF THE PROBLEM: This study was undertaken to

identify how the consumers react to different plans offered by Max Life
Insurance. It is primarily known to the company that the main work is
to generate maximum sales. To access up-to-date information the Max Life
Insurance. keeps a track about its customers, relationships and the market
situation, helps in answering question such as what is the market potential for my
product, how are my customers behaving, and how efficient are my sales
process?

10
 INTRODUCTION

Life insurance is a form of insurance that pays monetary proceeds upon the death
of the insured covered in the policy. Essentially, a life insurance policy is a
contract between the named insured and the insurance company wherein the
insurance company agrees to pay an agreed sum of money to the insured's
beneficiary. With a large population and the untapped market area insurance
happens to be a very big opportunity in India. Today it stands as a business

11
growing at the rate of 15-20% annually. Together with banking services, it adds
about 7 percent to the country’s GDP. In spite of all this, the growth statistics of
the penetration of the insurance in the country is very poor. Nearly 80% of
Indian population is without life and health insurance cover. This is an indicator
that growth potential for the insurance sector is immense in India. It was due to
this immense growth that the regulations were introduced in the insurance sector
and in continuation “Malhotra Committee” was constituted by the government in
1993 to examine the various aspects of the industry. The key element of the
reform process was participation of overseas insurance companies with 26%
capital. Creating a more competitive financial system suitable for the
requirements of the economy was the main idea behind this reform.
Since then the insurance industry has gone through many changes. The
liberalization of the insurance industry has never looked back and today stand as
one of the most competitive and exploring industry in India. The entry of the

private players and the increased use of the new distribution are in the
limelight today. The use of new distribution techniques and the IT tools has
increased the scope of the industry in the longer run. Insurance is the business
which provides protection against financial aspects of risk, such as those to
property, life, health and legal liability.
In insurance the insured makes payment called
“premiums” to an insurer, and in return is able to claim a
payment from the insurer if the insured suffers a defined
type of loss. This relationship is usually drawn up in a
formal legal contract.

12
CLASSIFICATION OF INSURANCE
The insurance industry in India can broadly classified in two parts. They are.
1) Life insurance.
2) Non-life (general) insurance.

LIFE INSURANCE
Life insurance can be defined as “insurance that provides a sum of money if the
person who is insured dies while the policy is in effect”. In 1818 British
introduced to India, with the establishment of the oriental life insurance company
in Calcutta. The first Indian owned Life Insurance Company was the Bombay
mutual life assurance society which was set up in 1870. The life insurance act,
1912 was the first statuary measure to regulate the life insurance business in
India. In 1983, the earlier legislation was consolidated and amended by the
insurance act, 1938, with comprehensive provisions for detailed effective control
over insurance. The union government had opened the insurance sector for
private participation in 1999, also allowing the private companies to have foreign
equity up to 26%. Following the opening up of the insurance sector, 12 private
sector companies have entered the life insurance business.

Need for life Insurance

The need to safeguard the family brings in the need for life insurance. Today
insurance has become even more important due to the disintegration of the
prevalent joint family system, in which a number of generations co-existed in

13
harmony, and a system in which a sense of financial security was always there as
there were more earning members.
Times have changed and the nuclear family has emerged. Apart from other
pitfalls of a nuclear family, a high sense of insecurity is observed in it today
besides, the family has shrunk. Needs are increasing with time and fulfillment of
these needs is a big question mark.
How will you be able to satisfy all those needs? Better lifestyle, good education,
a long desired house. But again one just cannot fritter away all your earnings.
You need to save a part of it for the future too – a wise decision. This is where
insurance helps. Factors such as fewer number of earning members, stress,
pollution, increased competition, higher ambitions etc are some of the reasons
why insurance has gained importance and where insurance plays a successful
role.
Life Insurance ensures that a person gates better prepared to face the
uncertainties in the following ways:

PROTECTION

You need life insurance to be there and protect the people you love, making sure
that your family has a means to look after itself after you are gone. It is a
thoughtful business concept designed to protect the economic value of a human
life for the benefit of those financially dependent on him.

14
 RETIREMENT
Life insurance makes sure that you have regular income after you retire and
also helps you maintain your standard of living. It can ensure the post –
retirement years are spent in peace and comfort.

SAVINGS AND INVESTMENTS

Insurance is a means to Save and Invest. Your periodic premiums are like
Savings and you are assured lump sum amount on maturity. A policy can come
in really handy at the time of your child’s education or marriage! Besides, it can
be used as supplement retirement income!

TAX BENEFITS
Life insurance is one of the best tax saving options today. Your tax can be saved
twice on a life insurance policy-once when you pay your premiums and once
when you receive maturity benefits. Money saved is money earned!

Why is insurance superior to other forms of

savings?
 An immediate estate is created in favor of the policyholder.
 Protection in case of death.
 Liquidity in case of need-easy loans is available.

15
  Tax relief-income tax.
 Policies can be offered as collateral security.

TYPES OF POLICIES
Though there are a lot of policies available in the market under different names
and by different companies, the policies can be broadly classified into the
following categories.
 Terms Insurance policy
 Whole Life Policy
 Money back policy
 Endowment Policy
 Pension Plans or Annuities.

FUNCTIONS OF INSURANCE

The functions of Insurance can be bifurcated into two parts:

16
 • Primary Functions
• Secondary Functions
• Other Functions

The primary functions of insurance include the

following:

Provide Protection Collective bearing of risk - Insurance

is a device to share the - The primary function of insurance is to provide
protection against future risk, accidents and uncertainty. Insurance cannot check
the happening of the risk, but can certainly provide for the losses of risk.
Insurance is actually a protection against economic loss, by sharing the risk with
others.

financial loss of few among many others. Insurance is a mean by which few
losses are shared among larger number of people. All the insured contribute the
premiums towards a fund and out of which the persons exposed to a particular
risk is paid.

Assessment of risk - Insurance determines the probable volume of risk

by evaluating various factors that give rise to risk. Risk is the basis for
determining the premium rate also.

17
Provide Certainty - Insurance is a device, which helps to change from
uncertainty to certainty. Insurance is device whereby the uncertain risks may be
made more certain.

The secondary functions of insurance

include the following:

18
Prevention of Losses - Insurance cautions individuals and
businessmen to adopt suitable device to prevent unfortunate consequences of risk
by observing safety instructions; installation of automatic sparkler or alarm
systems, etc. Prevention of losses causes lesser payment to the assured by the
insurer and this will encourage for more savings by way of premium. Reduced
rate of premiums stimulate for more business and better protection to the
insured.

Small capital to cover larger risks - Insurance relieves the

businessmen from security investments, by paying small amount of premium
against larger risks and uncertainty.

Contributes towards the development of larger

industries - Insurance provides development opportunity to those larger
industries having more risks in their setting up. Even the financial institutions
may be prepared to give credit to sick industrial units which have insured their
assets including plant and machinery.

The other functions of insurance include the

following:

19
Means of savings and investment - Insurance serves as savings
and investment, insurance is a compulsory way of savings and it restricts the
unnecessary expenses by the insured's For the purpose of availing income-tax
exemptions also, people invest in insurance.

Source of earning foreign exchange - Insurance is an

international business. The country can earn foreign exchange by way of issue of
marine insurance policies and various other ways.

Risk Free trade - Insurance promotes exports insurance, which makes

the foreign trade risk free with the help of different types of policies under
marine insurance cover.

The end of the year 2000 marks a significant change and growth of 'India
Insurance' industry scenario. Monopoly of Public Sector Insurance company
marks an end and Private companies makes inroad. Foreign companies, both
Life and General flocked, collaborated and helped astronomical growth of
'Insurance Industry in India'.

NON- LIFE (GENERAL) INSURANCE:

20
Triton insurance co. ltd was the first general insurance company to be
established in India in 1850, whose shares were mainly held by the British. The
first general insurance company to be set up by an Indian was Indian mercantile
insurance co. Ltd., which was stabilized in 1907. Thereafter many Indian players
emerged. The general insurance business was nationalized after the promulgation
of General Insurance Corporation (GIC) OF India undertook the post-
nationalization general insurance business.
Presently there are 12 general insurance companies with 4 public sector
companies and 8 private insurers. Although the public sector companies still
dominate the general insurance business, the private players are slowly gaining a
foothold. According to estimates, private insurance companies have a 10 percent
share of the market, up from 4 percent in 2001. In the first half of 2002, the
private companies booked premiums worth Rs 6.34 billion. Most of the new
entrants reported losses in the first year of their operation in 2001.
With a large capital outlay and long gestation periods, infrastructure
projects are fraught with a multitude of risks throughout the development,
construction and operation stages. These include risks associated with project
implementation, including geological risks, maintenance, commercial and
political risks. Without covering these risks the financial institutions are not
willing to commit funds to the sector, especially because the financing of most
private projects is on a limited or non- recourse basis. Insurance costs constitute
roughly around 1.2-2 percent of the total project costs. Under the existing norms,
insurance premium payments are treated as part of the fixed costs. Consequently
they are treated as pass-through costs for tariff calculations.

21
 Insurance, like project finance, is extended by a consortium. Normally one
insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving
a proportionate percentage of the premium. The other companies share the
remaining risk and premium. The policies are renewed usually on an annual
basis through the invitation of bids.
Of late, with IPP projects fizzling out, the insurance companies are turning
once again to old hands such as NTPC, NHPC and BSES for business.

Contribution to Indian Economy

• Life Insurance is the only sector which garners long term savings.
• Spread of financial services in rural areas and amongst socially less
privileged.
• Long term funds for infrastructure.
• Strong positive correlation between development of capital markets and
insurance/pension structure.
• Employment generation.

Insurance Industry prior to de-regulation

Prior to deregulation in 2000, market was a public monopoly.
• Public Monopoly
o 2000 Offices
o Over 800,000 agents
• Distribution through tied agents only
• Sales approach primarily on a tax savings platform
• Traditional style product offering : Endowment and money back plans

22
 • Inadequate and inflexible products
• Pensions: Small part of product offer
• Limited focus on customer needs

Improving Service Standards

Channel Access Service Points Use of IT

Advisors Branch Network Limited use of
IT

Pre Deregulation – Limited Distribution

Multi Channel MULTI USE OF IT
Access SERVICE
POINTS
Advisors Call Centers Shorter time around time
Brokers & Email Claims
Corporate agents Website Policy Issuance
Ban assurance Branch Network

23
NEW YORK LIFE INSURANCE CO.
LTD

24
MAX INDIA LTD

25
26
 Max New York Life Insurance

Max New York Life Insurance Company Ltd. is a joint venture between New
York Life; a Fortune 100 company and Max India Limited; one of India's
leading multi-business corporations. The company has positioned itself on the
quality platform. In line with its vision to be the Most Admired Life Insurance
Company in India, it has developed a strong corporate governance model based
on the core values of excellence, honesty, knowledge, caring, integrity and
teamwork. The strategy is to establish itself as a Trusted Life Insurance
Specialist through a quality approach to business.

Incorporated in 2000, Max New York Life started commercial operation in 2001.
In line with its values of financial responsibility, Max New York Life has
adopted prudent financial practices to ensure safety of policyholder's funds. The
Company's paid up is Rs. 1,432 core.

Having set a Best in Class Agency Distribution Model in place, the company is
spearheading a major thrust into additional distribution channels to further grow
its business. The company has multi-channel distribution that includes the
agency distribution, partnership distribution, banc assurance, distribution focused
on emerging markets and alliance marketing through employed sales force. The
company currently has 33 banc assurance relationships, 14 corporate agency

27
tie-ups and direct sales force at 14 locations. Max New York Life has put in
place a unique hub and spoke model of distribution to deepen rural penetration.
The company has 39 (9 hub office 30 spoke offices) offices dedicated to
emerging markets in Punjab and Haryana. Max New York Life offers a suite of
flexible products. It now has 35 products covering both life and health insurance
and 8 riders that can be customized to over 800 combinations enabling customers
to choose the policy that best fits their need. Besides this, the company offers 6
products and 4 riders in group insurance business.
The company currently has more than 13,295 employees.

28
 COMPANY PROFILE

Max New York Life Insurance

“Max New York Life wants people to view insurance as a

financial protection and wealth creation instrument and not
just a tax-saving tool.”
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

29
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.

New York Life is a Fortune 100 company that has over 160 years of experience
in the life insurance business. Max India Limited is a multi-business corporate
dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic
Products businesses.

Max New York Life Insurance started its operations in India in 2000. It is the
first life insurance company in India to be awarded the IS0 9001:2000
certifications. Max New York offers customized products tailored to suit
individual's needs. With its various Products and Riders, there are more than 400
product combinations to choose from. Today, Max New York Life Insurance has
a network of 57 offices spread over 37 cities all over India.
In line with its values of financial responsibility, Max New York Life has
adopted prudent financial practices to ensure safety of policyholder's funds. The
Company's paid up capital is Rs. 657 crore, which is more than the norm laid
down by IRDA.
Max New York Life has identified individual agents as its primary channel of
distribution. The Company places a lot of emphasis on its selection process,
which comprises four stages - screening, psychometric test, career seminar and
final interview. The agent advisors are trained in-house to ensure optimal control
on quality of training.
Max New York Life, one of India’s leading life insurance companies, expanded
its presence in the southern region by opening its first general office in the city
of Mysore. Max New York Life now has established a countrywide network of

30
172 offices and representatives across 120 cities in India. The company has over
25,300 agent advisors, who are widely considered the best in the business. Max
New York Life aspires to be the "life insurance brand of first choice" amongst
Indian consumers.
“Max New York Life wants people to view insurance as a financial protection
and wealth creation instrument and not just a tax-saving tool. Since the launch of
our operations, our focus has always been on providing risk protection and long-
term wealth creation solutions to our customers. With a diverse product portfolio
to meet customer requirements, it is evident that we are setting benchmarks in
the marketplace and are well on course of realizing our vision to become India’s
most admired Life Insurance Company.

31
VISION:
Vision statement is “Most Admired Life Insurance Company in
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.

32
INSURANCE MANAGEMENT SOLUTION

33
34
Types of business proposal:
• Internal business proposal
• External business proposal

Internal business proposal

This business proposal meant for the head of the

organization also called as justification report. An internal business proposal
provides an opportunity to develop the competence and confidence to express
your ideas, awareness, initiative and problem solving skill.

External business proposal

It is for the outsiders. Management plan, cooperation

qualification, staffing plan, contact and pricing, technology plan, regulatory
requirements are main components of business proposal.
Here, at Max Life Insurance we offer a bouquet of insurance solutions to meet
every need.

35
Individual

For individuals, we have a range of protection, investment, pension and savings

plans that assist and nurture dreams apart from providing protection. You can
choose from a range of products to suit your life-stage and needs.

For organizations we have a host of customized solutions that range from

Group Term Insurance, Gratuity, Leave Encashment and Superannuation
Products. These affordable plans apart from providing long term value to the
employees help in enhancing goodwill of the company.

Protection Plans
Life is full of surprises. Unexpected events that strike without warning can
disrupt the smooth rhythm of life. You must be prepared at all times. As the

36
primary earning member, you need to make sure that your family is never
lacking in anything even if you are taken away from them forever. Do your best
today to ensure that your family can always enjoy a comfortable lifestyle. In
double income families, both spouses should get adequate life covers especially
if there are dependent children involved. We have plans that guarantee maximum
protection at a low cost.
• Five Yr Renewable and Convertible™
• Level Term Policy

37
 Children Plans

Your parenting is perfect but is your planning adequate? Are you thinking
beyond the immediate to the future, about higher education and professional
courses, in India and abroad? Many children are keen to pursue unconventional
careers. Are you in tune with their aspirations and passions? As parents you
would never let money come in the way of your children and the fulfillment of
their true potential. Our plans will help build the corpus that allows your children
to dream big and soar high.

38
 • Children's Endowment to 18 (Par)
• Children's Endowment to 24 (Par)
• SMART Steps™
• SMART Steps™ Plus, SMART Steps™ Single Premium

Investment Plans

Building a nest egg is about aggregating surplus amounts regularly to allow them
to grow into a sizeable sum. Investments should be aligned to specific, long-term
goals. Luxury car, foreign holiday or dream house, create your own wish list and
make it come true. Your dreams are in your hands. Every move that you make
today will bring you a step closer to your goals. Our Investment Plans offer the
dual benefit of protection and market-linked returns with the flexibility to choose
the premium and determine the market exposure.

39
• Life Maker™ Premium
• Life Maker™ Gold
• Life Maker™ Platinum
• Life Invest™
• SMART Assure

40
 Retirement Plans

Let your golden years be the most precious of your life, full of freedom and
choice. A time to pursue your hobbies, travel and enjoy the good life. You will
never miss your salary cheque or be constrained by rising inflation. Even as you
work hard to make a better today, it is up to you to create a superior tomorrow. If
you want to sustain your current lifestyle even after you stop working, make that
money work for you. Our Retirement Plans will keep you comfortable and
content, and let you live the life you deserve.
• Easy Life™ Retirement (Par)
• SMART Invest™ Pension

41
 Health Plans

Do you know the cost of healthcare has climbed faster than inflation? Medical
costs can be a big drain on finances. A medical crisis can strike anyone, anytime
and may even force an individual to dip into savings to meet these sudden and
steep costs. Such an eventuality could delay or destroy a cherished financial
goal. No wonder, health is wealth. The health of every member of the family is
precious

and you need to safeguard it as a priority. Use our Health Plans to make sure
your family stays fit and fine.
• Lifeline MediCash™
• Lifeline Wellness™ Plus

42
 • Lifeline MediCash™ Plus
• Lifeline Safety Net™
• Lifeline Wellness™

Savings Plans

Is your money working for you? Clearly not, if it is lying idle in multiple bank
accounts. We will instill the discipline of investment through force of habit as
you park your money for protection and growth to meet your needs over your
lifetime. Choose a plan that matches your needs and budget. Our dual benefits
saving plans recognize your need for all round financial protection, and include a
life cover that will protect you till the last day.
• Whole Life Participating
• Life Gain™ Plus 25 (Par)

43
 • 20 year Endowment (Par)
• Life Pay™ Money Back
• Endowment to Age 60 (Par)
• Life Gain™ Endowment & Life Gain™ Plus 20 (Par)

Rural Plans

We are conscious of our social responsibility to serve the financially vulnerable

sections of society. We have created specialized Rural Plans to meet the
particular needs of customers in rural areas. The ticket size has been kept low,
the premiums are affordable and the procedures are simple. Customers in rural
areas can now find a plan to meet their unique requirements.
• Easy Term Policy

44
 Strategic Products Plans

Most people desire a carefree life. They want to be happy and comfortable at all
times. But needs keep evolving and you must always be one step ahead. Our
Strategic Products Plans will meet your special needs and are available through
additional distribution channels. You can choose a plan to meet the planned
events and unforeseen incidents in your life.

Banc assurance
• Capital Builder

Additional Distribution
• Max Mangal™
• Capital Builder
• Max Vriksha™

45
Max Am sure
• Future Builder
• Business Builder
• Bonus Builder &Secure Returns Builder

Group plans

People are the most valuable asset of any organization. Organizations have to
innovate newer forms of compensation to retain talented employees. Pay and
perks are all very fine but an organization needs to show employees that it cares.
Ensuring the financial well being of employees and their families will earn an
organization their enduring trust and loyalty. Our Group Plans offer a three-in-
one advantage, as they are a powerful tool for motivation, reward and retention,
in these times of high attrition.

• Group Credit Life

• Unit Linked Group Superannuation Plan
• Group Gratuity cum Term Assurance
• Group Term Life
• Unit Linked Group Gratuity Plan
• Employee Deposit Linked Insurance
• Max Super Life

46
 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the reach problem.

It may be understood as a science of studying how research is done scientifically.
Research means a search for knowledge or gain some new knowledge and
methodology can properly refer to the theoretical analysis of the methods
appropriate to a field of study or to the body of methods and principles particular
to a branch of knowledge. A Research methodology has a specified framework
for collecting the data in an effective manner. Research methodology means
"defining a problem, defining the research objectives, developing the research
plan, collecting the information, analyzing the information and presentation of
findings." Such framework is called "Research Design". The research process
that was followed by me consisting following steps;

A) Defining the problem

B) Developing the research plan
C) Collection of Data
D) Analysis and Interpretation of Data

47
E) Presentation of findings

A) Defining the problem and research objectives

My research problem is to know the Buying process of procpactive Activa
buyers.

B) Developing the Research Plan

The development of research plan has following steps:
1. Data source
2. Research approach
3. Type of Research Design
4. Research instrument
5. Sampling plan
i) Papulation size
ii) Sample size
iii) Contact methods
6. Questionnaire Design

48
 OBJECTIVES OF THE STUDY

The professional objectives which are being covered under this project are as
following-
• To know about demographic factors affecting Product of Max Life
Insurance.
• To analyze the role of advertisement for Max Life Insurance Companies.
• To know the perception and conception of customers towards Insurance
products and specially focused for Max Life Insurance product

49
 Scope of the study

 The numbers of respondents surveyed are 100.

 The study is conducted in Pune.

 This study is conducted to analyze the market stand of Max Life

insurance with that of other insurance companies in India.

50
 DATA COLLECTION

Determining sources of Data:

There are two main sources of data
1. Primary data 2. Secondary data

Primary Data:
It consists of original information collected for specific research. Primary data
for this research study was collected through a direct survey to obtain this
primary data a well structured questionnaire is prepared by the researcher.

Secondary Data:

It means data that are already available i.e. they refer to data which are already
collected and analyzed by someone else. Secondary Data may be either
published data or unpublished data. Usually published data are available in:-
1) Books Magazines and newspapers

51
 2) 2)Public record and statistics

DATA ANALYSIS

Method of collecting data:

sampling technique:-

For preparation of questionnaire the basic objective of the survey was

concentrated, previous surveys under taken prospect cart secondary data through
files and folders. For the survey, Convenience Sampling this method involves
purposive or deliberate selection of particular units of the universe which are
available on the case of access for constituting a sample which representing
universe.

Tools of Analysis in collecting data:

Various tools have been used in this research:

52
1. Tables.
2. Pie charts.
3. Bar diagrams.
4. Percentage method has been used to analyze the data.

LIMITATIONS

1) The survey was conducted within the city only.

2) Time to interact with the customers was not sufficient.

3) Customers were not fully aware of various plans of max life insurance.

4) Accurate results could not be found as every customer has his own
opinion.

53
DATA ANALYSIS AND INTERPRETATION

Age of the respondents:

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

(AGE)
Less than 25 11 11%
25 - 35 40 40%
35 – 45 20 20%
Above 45 29 29%
TOTAL 100 100

54
 Qualification of the respondents.

PARTICULARS NO.OF RESPONDENT PERCENTAGE

Graduate 52 52%
Post Graduate 29 29%
Diploma 8 8%
Other discipline 11 11%
TOTAL 100 100%

Qualification of the Respondents

Graduate Post Graduate Diploma
Other discipline TOTAL

100
80
60
40
20
0
PERCENTAGE
NO.OF.RESPONDENT

55
 INTERPRETATION:
From the survey it was found that amongst 100 respondents
a) 52% of the respondents were graduate
b) 29% of the respondents were post graduate
c) 8% of the respondents were diploma
d) 10% of the respondents were other discipline

Occupation of the respondents

PARTICULARS NO. OF RESPONDENT PERCENTAGE

Business man 34 34%

Professionals 18 18%
Job holders 37 37%
Others 11 11%
TOTAL 100 100%

Occupation of the Respondents

Business man Professionals Job holders

Others TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

56
 INTERPRETATION:
From the survey it was found that amongst 100 respondents
a) 34% of the respondents are businessmen.
b) 18% of the respondents are professionals.
c) 37% of the respondents are job holders.
d) 11% of the respondents are background.

Average annual income of respondents.

PARTICULARS NO. OF RESPONDENT PERCENTAGE

Up to 1 lakh 33 33%
1 lakh - 3 lakh 43 43%
3 lakh - 5 lakh 20 20%
5 lakh & above 4 4%
TOTAL 100 100%

Average annual income of

respondents.

100

80
Up to 1 lakh
1 lakh - 3 lakh 60
3 lakh - 5 lakh
40
5 lakh & above
TOTAL 20

0
NO.OF.RESPONDENT

57
 INTERPRETATION:
From the survey it was found that amongst 100 respondents
a) 33% of the respondents have an average annual income up to 1 lakh
b) 43% of the respondents have an average annual income from 1 lakh to 3 lakh
c) 20% of the respondents have an average annual income from 3 lakh to 5 lakh
d) 4% of the respondents have an average annual income above 5 lakh

Family size of respondents:

PARTICULARS NO.OF RESPONDENT PERCENTAGE

Below 5 members 50 50%

5 - 10 members 32 32%
Above 10 members 28 28%
TOTAL 100 100%

FAMILY SIZE

28%

50%

below 5 members
5- 10 member
above 10 member

32%

58
 INTERPRETATION:
From the survey it was found that amongst 100 respondents
a) 50% of the respondents are below 5 members.
b) 32% of the respondents are between 5 to 10 members.
c) 28% of the respondents are above 10 members.

According to respondents life insurance is:

PARTICULARS NO.OF. PERCENTAGE

RESPONDENT
Risk Coverage 40 40%
Tax Savings 30 30%
Security 30 30%
TOTAL 100 100%

59
INTERPRETATION:
From the survey it was found that amongst 100 respondents
a) 40% of the respondents say risk coverage.
b) 30% of the respondents say tax savings.
c) 30% of the respondents say financial security.

Awareness of Max Life Insurance

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

No 17 17%
Yes 83 83%
TOTAL 100 100%

60
 Awareness of Max Life Insurance

No Yes TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

INTERPRETATION:-

From the survey it was found that amongst 100 respondents.

a) 83% of the respondents say that they are aware of Max Life
Insurance Co.
b) 17% of the say that they are unaware of Max life Insurance Co.

Awareness regarding Insurance:

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 70 70%
No 30 30%
TOTAL 100 100%

61
 INTERPRETATION:-

From the survey it was found that amongst 100 respondents

a) 70% of the respondents say that they are aware of insurance.
b) Only 30% are unaware of insurance.

% of respondents who are under different plans of Max life

insurance co:
PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Invest gain plan 30 30%

Protection gain plan 36 36%
Child gain plan 8 8%
Whole life plan 15 15%
Pension plan 11 11%
TOTAL 100 100%

62
INTERPRETATION:
From the survey it was found that amongst 100 respondents:
a) 30% of the respondents are under invest gain plan
b) 36% of the respondents are under protection gain plan
c) 8% of the respondents are under child gain plan
d) 15% of the respondents are under whole life plan
e e) 11% of the respondents are under pension gain plan

% of respondents benefits of choosing the particular products:

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Risk coverage 60 60%

Additional benefit 20 20%
Maturity date 12 12%
Sum Assured 8 8%
TOTAL 100 100%

63
 Benefits of Particular Products

100
90
80
70 Risk coverage
60 Additional benefit
50
Maturity date
40
Sum Assured
30
20 TOTAL
10
0
1 2

INTERPRETATION:
a) 60% of the respondents say that a benefit of choosing the particular
Product is for Safety of life.
b) 20% of the respondents say that a benefit of choosing the particular products
is for additional benefit to family.
c) 12% of the respondents say that a benefit of choosing the particular products
is for maturity date.
d) 8% of the respondents say that a benefit of choosing the particular products
is for sum assured.

Are the respondents satisfied with the services of M.L.I.

Insurance?

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

N0 30 30%
YES 70 70%
TOTAL 100 100%

64
INTERPRETATION:
From the survey it was found that among 100 respondents:-

a) 70% respondents are satisfied with the services of M.L.I.

b) 30% respondents are not satisfied with the services of M.L.I.

Has media been the source of information for various plans of

max life insurance co:

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
YES 60 60%
NO 40 40%
TOTAL 100 100%

65
INTERPRETATION:
From the survey it was found that amongst 100 respondents:
60% respondents have media as the source of information for various plans.

40% respondents do not have media as the source of information for various plans.

Which source of media has provided information for the

various plans offered by M.L.I:

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

NEWSPAPER 30 30%
MAGAZINE 15 15%
TELEVISION 45 45%
RADIO 10 10%
TOTAL 100 100%

66
INTERPRETATION:
FF
From the survey it was found that amongst 100 respondents
30% respondents prefer newspaper as the source of information

15% respondents prefer magazine as the source of information

45%respondents prefer television as the source of information.

10% respondents prefer radio as the source of information.

67
 FINDINGS

 Maximum of the insurance is purchased by the middle age group.

 Insurance is mostly preferred by the job holders.
 Maximum insurance holders fall under the average annual income ranging
between 1- 3 lakhs.
 Insurance is usually preferred by small families.
 Mostly people prefer insurance to cover their risk factor.
 M.L I. insurance company has a good market value***
 Insurance holders under M.L.I prefer protection gain plan above all the
other plans offered to them.
 The services provided by M.L.I. are satisfactory.**
 Television media is one of the major source that provides information
regarding different plans of M.L.I.

68
 RECOMMENDATIONS

 People should also be made aware of various other benefits attached with
insurance other than the factor of risk coverage only.
 M. L. I. should provide more information regarding the different plans in
order to be able to cover all age groups.
 Promotion techniques should be enhanced to create more awareness
among people about M. L.I.
 Insurance plans should be designed in such a way that it is able to cater all
family sizes.
 M. L. I. should also emphasize on the usage of other sources of media to
provide information regarding the various plans offered by them.

69
70
 CONCLUSION

Insurance is a superior tool to other forms of savings as it provides protection,

collective bearing of risk, assessment of risk, certainity factor, easy liquidity and
above all the safest means of savings and investment.
During the course of my internship with Max Life Insurance, I got the
opportunity to learn a lot about insurance in general and was able to study in
detail the various plans offered by them. This also provided me with the
exposure to be able to understand the insurance industry better and the various
benefits attached to it.

71
 BIBLIOGRAPHY

Website:
www.maxlife.com
www.google.com
www.wikipedia.org
Other Sources
 Insurance Administration 2nd Edition by Jane Light cap Brown, PH.D.
Film & ETC.
 Principles and Practices of Insurance By Dr. P Periasamy.
 Marketing Research 3rd Edition By Beri G C.
 Life and Health Insurance By Black Skipper
 Marketing Management 12 Edition By Philip Kotler and Kevin Lane
Keller.

72
 ANNEXURES

QUeStIONNaIre

NAME:
AGE:
GENDER: MALE
FEMALE
ADDRESS:

Q1) What is your average annual income?

73
 Upto 1 lakh 1 lakh – 3 lakh
3 lakh – 5 lakh 5 lakh and above

Q2) How many members are there in your family?

Below 5 members 5 – 10 members

Above 10 members

Q3) how do you regard insurance as?

Risk coverage tax savings

Security

Q4) Are you aware of what insurance is all about?

No Yes

Q5) Are you aware of Max Life Insurance?

No Yes

Q6) which category of Max Life insurance plan have you preferred?

Investment gain plan protection gain plan

Child gain plan whole life plan
Pension plan

74
Q7) What benefits do you prefer while choosing an insurance plan of Max life
insurance?

Risk coverage additional benefit

Maturity period sum assured

Q8) Are you satisfied with the services of Max life Insurance ?

No Yes

Q9) Has media been the source of information for various plans offered by Max
life Insurance?

No Yes

Q10) Which source of media has provided information for the various plans
offered by Max life insurance?

Newspaper Television
Magazine Radio

75