Amity School Of Business

(Noida, Uttar Pardesh)

SUMMER PROJECT
Topic:

INSURANCE

RAHUL JAMDAGNI
COURSE ROLLNO : BBA (gen) : B-38

FACULTY GUIDE :

Ms Deepali kahanna

BATCH :2009-12 ENROLLMENT NO. :A3906409279

Acknowledgement
Iexpress my deep gratitude to Mrs. Deepali kahana for the inspirationand support that I found in her during the preparation of this project. I am thankful to MR. Rajbir Sharma and Mr.kuldeep Sharma for their valuable encouragement and support. Finally, I would like to thank my family for their love, understanding and faith, which saw me through the project.

Rahul Jamdagni

TABLE OF CONTENT
Preface Introduction Brief history of Insurance Indian insurance industry LIC Life insurance vs. other savings Mission & vision Objective MAX NEW YORK LIFE INSURANCE Brief history Synopsis Company performance Marketing strategies Max future prospect Promoters & overview Lic marketing Policy of Max new tork life insurance and Lic Max pension plan Max siksha plus Lic children plan Page no. 4 5 5-7 8-11 12 13 14 15 16 16 17 17 18 18 19 20-21 22 23-25 26-34 35-37

PREFACE

In todays scenario there is risk in every field & is growing day- by day. To cover this risk insurance is must. Basically there is life insurance corporation of India and general insurance of India . the LIC deals with life insurance and GIC deals provide the service to the customer for general insurance. But now, IRDA( insurance regulatory development authority)was allowed to private sector to enter insurance business afte this many companies enter the insurance sector.

The report focuses on insurance sector with special emphasis on LIC and MAX NEW YORK LIFE INSURANCE

INTRODUCTION Brief History Of Insurance

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 Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organisation servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satellite offices and the Corporate office. LICs Wide Area Network covers 109 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LICs ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families. 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 public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC 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 nationalised the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

INDIAN INSURANCE INDUSTRY:

Insurers Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers: Life Insurers: Life Insurance Corporation of India (LIC) General Insurers: General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsure) GIC had four subsidiary companies, namely ( with effect from Dec'2000, these subsidaries have been de-linked from the parent company and made as independent insurance companies. The Oriental Insurance Company Limited The New India Assurance Company Limited National Insurance Company Limited United India Insurance Company Limited. Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001) Insurance Industry in the year 2000-2001 had 16 new entrants, namely: Life Insurers: S.No. Registration Date of Number Reg. 1 2 3 4 5 6 7 101 104 105 107 109 110 111 Name of the Company

23.10.2000 HDFC Standard Life Insurance Company Ltd. 15.11.2000 Max New York Life Insurance Co. Ltd. 24.11.2000 ICICI Prudential Life Insurance Company Ltd. 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited 31.01.2001 Birla Sun Life Insurance Company Ltd. 12.02.2001 Tata AIG Life Insurance Company Ltd. 30.03.2001 SBI Life Insurance Company Limited .

8 9 10

114 116 117

02.08.2001 ING Vysya Life Insurance Company Private Limited 03.08.2001 Bajaj Allianz Life Insurance Company Limited 06.08.2001 Metlife India Insurance Company Ltd.

General Insurers : S.No. 1 2 Registration Date of Name of the Company Number Registration 102 103 23.10.2000 23.10.2000 Royal Sundaram Alliance Insurance Company Limited Reliance General Insurance Company Limited. IFFCO Tokio General Insurance Co. Ltd TATA AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited.

3 4 5 6

106 108 113 115

04.12.2000 22.01.2001 02.05.2001 03.08.2001

Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002) Insurance Industry in this year, so far has 5new entrants; namely Life Insurers: S.No. 1 Registration Date of Number Reg. 121 Name of the Company

03.01.2002 Reliance Life Insurance Company Limited.

2 S.No.

122

14.05.2002 Aviva Life Insurance Co. India Ltd.

General Insurers : Registration Date of Name of the Company Number Registration

1 2. 3.

123 124 125

15.07.2002 27.08.2002 27.08.2002

Cholamandalam General Insurance Company Ltd. Export Credit Guarantee Corporation Ltd. HDFC-Chubb General Insurance Co. Ltd.

Yr: 2003-2004: (From 1st Jan 2003 till Date) Insurance Industry in this year, so far has 1new entrants; namely Life Insurers: S.No. 1 Registration Date of Number Reg. 127 Name of the Company

06.02.2004 Sahara India Insurance Company Ltd.

Yr: 2004-2005: Insurance Industry in this year, so far has 1new entrants; namely Life Insurers: S.No. 1 Registration Date of Number Reg. 128 Name of the Company

17.11.2005 Shriram Life Insurance Company Ltd.

Yr: 2006-2007: Insurance Industry in this year, had 1new entrants; namely Life Insurers: S.No. 1 Registration Date of Number Reg. 130 14.07.2006 Name of the Company Bharti AXA Life Insurance Company Ltd.

Yr: 2007-2008: Insurance Industry in this year had 5 new entrants; namely Life Insurers: S.No. Registration Date of Number Reg. Name of the Company

1 2

133 135

04.09.2007 Future Generali India Life Insurance Company Limited 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

General Insurers: 3 4 5 131 132 134 03-082007 04-092007 16-112007 Apollo Munich Health Insurance Company Limited Future Generali India Insurance Company Limited Universal Sompo General Insurance Company Ltd.

Yr: 2008-2009: Insurance Industry in this year, so far has 3 new entrants in Life and 1 new entry in General ; namely Life Insurers: S.No. Registratio Date of n Reg. Number 1 2 3 4 5 136 138 140 142 143 05.11.200 9 08.05.200 8 27.06.200 8 27.06.200 8 Name of the Company

Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. Aegon Religare Life Insurance Company Ltd. DLF Pramerica Life Insurance Company Ltd. Star Union Dai-ichi Life Insurance Co. Ltd., IndiaFirst Life Insurance Company Ltd.

General Insurers: S.No. Registration Date of Number Reg. 1 2 137 139 8.05.2008 Name of the Company Shriram General Insurance Company Limited,

27.06.2008 Bharti Axa General Insurance Company Ltd.

141

15.12.2008 Raheja QBE General Insurance Co. Ltd

INSURANCE BUSINESS: Insurance business is divided into four classes : 1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous Insurance. Life Insurers transact life insurance business; General Insurers transact the rest. No composites are permitted as per law. LEGISLATION (as on 1.4.2000): Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999. INSURANCE PRODUCTS (as on 1.4.2000) Life Insurance: Popular Products: Endowment Assurance (Participating), and Money Back (Participating). More than 80% of the life insurance business is from these products. General Insurance: Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory. Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance products

Life insurance in India made its debut well over 100 years ago. In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. What Is Life Insurance? Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during: The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilizations partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person: That of dying prematurely leaving a dependent family to fend for itself. That of living till old age without visible means of support.

Life Insurance Vs. Other Savings

Contract Of Insurance: A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance. At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void. Protection: Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable. Aid to Thrift: Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly because of the 'easy installment' facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS provides a convenient method of paying premium each month by deduction from one's salary. In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions. Liquidity:

In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan. Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise. Money When You Need It: A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time. Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions). Who Can Buy A Policy? Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest. Policies can also be taken, subject to certain conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholders state of health, the proponent's income and other relevant factors are considered by the Corporation. Insurance For Women Prior to nationalisation (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalisation of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time. At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax. Medical And Non-Medical Schemes Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending insurance cover without any medical examination, subject to certain conditions. With Profit And Without Profit Plans An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount.

In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.

Shri.P.Chidambaram
Union Finance Minister

In the year 1956, 245 Indian and foreign companies were nationalized and today, the three letters LIC, stands as a synonym for insurance, for services, for excellence in strengthening the economic fibre of this country. I dare to say that no other three letters taken together are more recognised to the length and breadth of India than LIC. The performance figures of LIC give an indication why LIC is dear to us, why LIC is a Jewel in our crown and why we will continue to nurture LIC and grow it into a great organization rendering service to the people of India. LICs footprints are now to be found in many other countries in the world. Wherever Indians go - and they go everywhere now, wherever Indians are welcome - and they are welcome in every part of the world, wherever Indians settle down they have found many new homes, wherever Indians excel and they excel in every walk of life, they want LIC they want LIC to protect them, to look after their savings, and provide for protection as well as their retirement. P. Chidambaram Union Finance Minister Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development." Vision "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."

OBJECTIVE OF LIC
Maximize mobilization of people's savings by making insurance-linked savings adequately attractive. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing social and economic environment. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

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 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 April 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 1,968 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 72,813 agent advisors at 705 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 139 offices dedicated to rural areas. Max New York Life offers a suite of flexible products. It now has 33 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. The company currently has more than 10,454 employees.

Synopsis Max New York Life Insurance(2008-09):

Number of policies sold by Max New York Life (MNYL) since inception crossed 36 lacs, with sum assured of around Rs. 94,000 crores . Policies sold increased by 38% to 12.1 lacs in 2008-09? Surpassing the 10 lac policies-a-year mark for the first time since MNYL?s inception. Gross premium increased by 42% to Rs. 3,857 crore in 2008-09 over previous year. First year premium (Individual + Group) grew by 15% over previous year to Rs. 1,843 crore in 2008-09. Renewal premium income grew by 80% over previous year to Rs. 2,014 crore in 2008-09. Assets under management rose to Rs. 5561 Crores, a growth of 50% over last year. Cumulative sum assured crossed Rs. 93,500 Crores growing at 40% over the corresponding period previous year.

Company performance
Ranked 1st in Outlook Money ranking of best ULIPs offered by Life Insurance Companies.

Awarded Certificate for Business Excellence by CII EXIM, Launched ?Max Vijay?, an initiative to offer insurance & savings product to the financially underserved segment of India Received the Golden Peacock Award for Innovation ? 2008 Received the 2008 CIO 100 Award for technology implementation Entered the Health and Retirement Benefits Insurance Segment Presence expanded to 705 offices & 84651 Agents Financial Highlights Highlights for the year ended March 31, 2009 are as under: Current Year Particulars (March 31, 2009) Income Premium Income (net) Income from Investments -Policy Holder -Share Holder Other Income Total Income Less: Expenses Commission Operating Expenses (excl. depreciation) Depreciation Benefits Paid Provision for Reserves Total Expenses 3819.0 (218.3) 29.6 1.0 3631.3 391.6 1615.2 65.2 220.8 1758.0 4050.8

Previous Year (March 31, 2008) 2692.6 224.1 21.2 0.4 2938.3 384.5 843.5 34.4 136.0 1660.3 3058.7

promoters 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. Since its inception in 2000, the organization has progressed and 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 service provider through a quality approach to business Overview Max New York Life Insurance has emerged as a key player in the Life Insurance Industry since the government allowed entry of private players in 2000. The Companys business model has evolved by earning trust of key stakeholders like Policyholders, Shareholders & Regulator (Insurance Regulatory and Development Authority). Key aspects regarding Max New York Life Insurances performance are detailed below. (All figures as of 31 March 2010) Max New York Life Insurance covered 29.85 Lac lives (in-force) providing a total insurance cover of Rs. 1,23,278 crores to its customers. Strong presence across India with 705 offices, 72,813 agents and 10,454 employees. Total Capital injected by shareholders stood at Rs 1,973 crores. Assets under management at Rs10,121 crores. The company has consistently outperformed the benchmarks and was Ranked No 1. by Outlook Money in a ranking of best ULIPs funds managed by Life Insurance Companies in Dec 2008 and 2009. Solvency Margins stood at 321% against the 150% mandated by the regulator Setting benchmarks Since inception Max New York Life Insurance has undertaken extensive Industry-first initiatives: First company to provide Free look 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 receive ISO 9001:2000 certification First life insurance company to be awarded CII-EXIM Bank commendation certificate for Strong Commitment to Excel.

Marketing strategies

Max future prospect

We make a living by what we get, but we make a life by what we give. - Winston Churchill Corporate Social Responsibility is largely defined as a commitment to behave ethically and contribute to economic development while improving the quality of life of our workforce and their families as well as the local community at large. Max New York Life Insurance believes that as a corporate it has a responsibility to engage with the society it operates in. This engagement should go beyond providing right products for their needs and being ethical and honest in our business practices. Max New York Life Insurance believes in caring for the society and has decided to focus on providing a safe and secure future to the children in the age group 0-12 years. The company works closely with Max India Foundation, an independent social service organization of Max India Group. The company has taken up immunization as its societal agenda to ensure protection against major ailments for the next generation of the country. The companys immunization program has provides immunization shots to children through immunization camps across the country. The Immunization Program covers vaccines like BCG, Hepatitis B vaccine, Polio drops, DPT, D Tap, Measles vaccine, MMR, Typhoid, dT and TT. Since July 2008, when the immunization program was initiated, Max New York Life Insurance has provided vaccines to over 10,000 children in around 60 locations. In 2009, the first full year of immunization program, Max New York Life provided 13,486 immunization shots to 5,155 children through 109 camps. Max New York Life Insurance and Max India Foundation along with Manav Sewa Sanidhi also organizes artificial limbs and polio caliper camps. Through each camp beneficiaries are provided artificial limbs or polio calipers. Volunteers from Max New York Life help in creating awareness manage registration and provide help during the week long camp where the patients stay till the time they could independently move. In each such camp more than 350 beneficiaries are provided artificial limbs. The company volunteers also actively participate in health camps organized by Max India Foundation where patients are provided health advise by a team of doctors from Max Healthcare. During 2009, Max India Foundation organized 15 health check up and awareness camps benefiting 10,196 people. "The opportunity to serve... is grace. To make a difference in someone's life... a humble duty."- Analjit

Singh, Chairman, Max India Group

LIC Future Prospect:

Marketing LIC Until the Indian insurance industry was liberalized, LIC did not have any clear marketing strategies. Since it enjoyed monopoly status, it could afford to have a very limited focus on marketing. For the average Indian, LIC became synonymous with life insurance, and over the years it built up an enviable brand image in both rural and urban areas. The company grew by leaps and bounds, with people buying its policies due to the tax concessions attached to it. On account of its position as a monopoly, LIC did not standardize its practices nor did it focused on providing better customer service to the policyholders... Distribution LIC had a large network of 8 lakh agents for distributing its products. The company had several marketing personnel designated as 'Development Officers' in each branch. These development officers, in turn, employed and trained a number of agents, and received incentives for the business generated by these agents, in addition to their regular salaries. However, this network was not very cost-effective as LIC had to pay bonuses and commissions twice - to the agents as well as the development officers - for every new policy and every subsequent renewal. Despite the efforts of the development officers, the retention of agents had become difficult... Customer Service In order to be able to serve its customers better, LIC had an well-organized grievance redressal system. The grievance redressal system consisted of Grievance Redressal Officers, complaint cells, a claims review committee, policyholders' councils, an advisory board, a consumers' affairs committee and a citizens' charter. Grievance Redressal Officers: Grievance redressal officers were designated by LIC at all levels of the organization. The following persons acted in the capacity of grievance redressal officers:... Human Resources LIC has had many problems relating to the efficient use of its human resources since the time it was set up. Many of these problems related to the fact that it was a public sector organization. The corporation's managers were too bureaucratic. The work culture in the organization was sloppy. Strong trade unions made it difficult for managers to get the work done. The corporation's development officers focused on their own earnings and incentives, rather than on customer satisfaction. Future Outlook LIC planned to enter into more alliances with banks and with leading educational institutes for training. It would also increase offshore activities and set up an exclusive technology company for sourcing software. Other priorities were the setting up of special cells and single-window facilitation centers for high-end customers, rapid introduction of innovative policies, and a renewed thrust on mass and group business. The corporation also decided to offer value-added services to high-end customers, besides special services. At a later stage, it planned to have separate dedicated branches for high-end policyholders. The decision to have its own separate IT set-up was driven by the requirement of software for the sprawling network of LIC's branches and other offices... Indian Life Insurance Industry

Until the early 21st century, the Indian life insurance industry was completely in the hands of LIC. In the 1950s, the industry had been nationalized in order to increase the penetration of insurance in the country and to make it available to less privileged segments of society. But even after 40 years of nationalization, only 25% of the insurable population was covered under insurance. This was one of major reasons for opening up the sector -- to allow private players to work towards extending the reach and coverage of insurance all over the country... Products and Pricing Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. A large number of people form an association that shares the risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death, accidents and burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Thus, insurance is the collective bearing of risk. The insurance business is broadly divided into two broad categories across the world - life insurance and general insurance... Technology In the late 1950s, LIC began using Unit Record Machines (electro mechanical machines) to process data punched into cards. Computers were introduced for the processing of data in 1964. By the 1980s, the Unit Record Machines were phased out and computers based on microprocessors were introduced for back-office computerization. During the 1990s, the software and hardware infrastructure at the company was standardized. There was a tremendous increase in the use of technology by LIC during the late 1990s. The company launched its website, www.licindia.com, in mid-1995, to offer policyholders basic services such as modifying policies (change of address, change of nominee) and querying the status of the policy...

Life Insurance Corporation of India

The Life Insurance Corporation of India (LIC) (Hindi: ) is the largest state-owned life insurance company in India, and also the country's largest investor. It is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses. It has assets estimated of Rs. 9.31 trillion (US$ 198.3 billion) It was founded in 1956. Headquartered in Mumbai, which is considered the financial capital of India the Life Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different parts of India, at least 2048 branches located in different cities and towns of India along with satellite Offices attached to about some 50 Branches, and has a network of around 1.2 million agents for soliciting life insurance business from the public. Over its existence of around 50 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7 % of India's GDP in 2006. The Corporation, which started its business with around 300 offices, 5.6 million policies and a corpus of INR 459 million (US$ 92 million as per the 1959 exchange rate of roughly Rs. 5 for a US $ has grown to 25000 servicing around 180 million policies and a corpus of over Rs. 8 trillion (US$ 170.4 billion). The organization now comprises 2048 branches, 109 divisional offices and 8 zonal offices, and employs over 1,002,149 agents.The corporate Office of LIC is in Mumbai. It also operates in 12 other countries, primarily to cater to the needs of Non Resident Indians. With the change in the India's economic philosophy from the early 1990s, and the subsequent relaxation of state control over several sectors of the economy, the monopolistic position of the Life Insurance Corporation of India was diluted, and it has had to compete with a number of other corporate entities, Indian as well as

transnational Life Insurance brands. However, it still manages to be the largest player in the Indian market, with the lion's share of 55%. The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand of the Country. In the financial year 2006-07 Life Insurance Corporation of India's number of policy holders are said to have crossed a whopping 200 million (fourth in terms of population of the countries of the world) Subsidiaries LIC owns the following subsidiaries: Life Insurance Corporation of India International: This is a joint venture offshore company promoted by LIC which commenced operations in July, 1989 with the objectives of offering US$ denominated policies to cater to the insurance needs of NRIs and providing insurance services to holders of LIC policies currently residing in the Gulf. LIC International operates in all GCC countries.

People LIC is one of the largest employers in India. The organization is headed by 4 officers, namely the Chairman and three Managing Directors. The top brass is appointed by the Government of India after an intensive selection procedure. Though the company was accused to go by mere seniority in number of years for the selection of the senior management, this has changed as seen in the case of Thomas Matthew and A. Dasgupta (Managing Directors). The Chairman assumes authority of the CEO and chairs the board while the Managing Directors are allotted the three main categories of the organization's functioning. The current Chairman, Mr. T.S. Vijayan, is particularly responsible for the major IT infrastructure turnaround that the organization has witnessed and for its advanced EDMS structure. D.K. Mehrotra manages the Marketing Units of LIC, which also happens to be one of the largest spenders on advertising in India. Thomas Mathew manages the close to $187 billion investment portfolio of the company, which is the largest investor in the country. A. Dasgupta manages the engineering and other functions, many of which are very advanced in the Indian corporate scenario.

Type Industry

Government-owned corporation Insurance

Founded Headquarters Key people

1 September 1956 Mumbai, India T. S. Vijayan (Chairman) D. K. Mehrotra, Thomas Mathew and A. Dasgupta (Managing Directors) Life insurance Pensions Mutual funds Rs. 9.31 trillion (US$ 198.3 billion) 112,184 (2008) LIC Housing Finance Limited LIC(Nepal)Ltd LIC(Lanka)Ltd LIC(International)BSC(C)

Products Total assets Employees

Subsidiaries

Policy of LIC and MAX NEW TORK LIFE INSURANCE:

MAX Easy Life(TM) Retirement Plan Regular Premium/Single Premium (Participating) Policy A retirement plan that ensures a steady income and absolute peace of mind, in the golden years of your life. Max New York Lifes Easy Life Retirement Plan is a comprehensive plan to meet your post Retirement financial needs, ensuring you complete peace of mind. The Easy Life Retirement Policy provides an income (i.e., pension/annuity) for your entire life from your chosen date of retirement. This annuity is a guaranteed amount, guaranteed at the time of vesting (i.e., commencement of annuity). Max New York Lifes Easy Life Retirement Plan is a comprehensive plan to meet your post retirement financial needs, ensuring you complete peace of mind. In addition, the policy also builds value. The bonus that is declared by the company from time to Time buys Pure Endowment benefits payable on vesting date . Key Benefits :Death Benefit In the unfortunate event of your death within one year from the effective date of the policy, we shall refund the premiums received without any interest. In the unfortunate event of your death after one year from effective date of the policy (but before the vesting date), we shall be refund of premium with interest @ 3% per annum as the minimum guaranteed interest rate, limited to the sum assured specified in the schedule together with the Cash Value of the Pure Endowment benefits, if any. The beneficiary may avail of this benefit:

Either in lump sum, or By way of purchase of life annuity with return of Annuity Purchase Price from us or any other IRDA approved Company. Annuity Details :Notional Corpus During your earning years, you pay us a fixed premium every year or a single premium. On the date of retirement that you choose, this policy provides you with a Notional Corpus, comprising the Sum Assured, together with Pure Endowment benefits purchased out of the bonuses declared by the Company from time to time. You can take up to 25% of this Notional Corpus in lump sum and use the balance amount, to purchase an annuity. Annuity (Pension) Options The person can choose any one of the Annuity options at least 6 months before vesting date Annuity for Life insurer Will get an annuity for life. Annuity for a guaranteed minimum period of 5/10/15/20 years as chosen by you, and life thereafter. The person or its legal representative (in case of your death) will receive annuity for your chosen period. On your survival at the end of this period, you will continue to get the same amount for the rest of your life. Annuity for Life, with return of annuity purchase price You will get the annuity for life. When you die, your legal representative will get the refund of annuity purchase price. For ages more than 50 years the current prevailing annuity rate is 4.375 % per annum . The Annuity plan opted cannot be altered during the six months before the vesting date. Additional Benefits : 1. Tax Benefit -You can avail of a tax benefit u/s 80CCC(1) of the Income Tax Act 1961 on a premium of up to Rs.10, 000 per annum. If you are in the tax bracket of 31.5%, we can reduce our tax liability up to Rs.3, 150 on a premium of Rs.10, 000 towards this policy. This benefit is available to you every year the persoon will pay. 2. the person have the flexibility to purchase Annuity from any other IRDA approved company. In such a case, we shall pay the notional corpus directly to such a company chosen by insurer. 3. the person have the freedom to surrender your Policy prior to its Vesting Date. Subject to statutory or other restrictions, if any, we shall pay a minimum guaranteed surrender value of 55% of the Premiums received in Regular Premium policies, and 80% of the Premium received in Single

Premium policies. However, the policy will not acquire any cash surrender value until completion of one year from the date of issue of the policy. 4. No medical examination is required. 5. There are no policy exclusions. Plan Details Regular Premium Entry Age Chosen Retirement Age Deferment Period Premium Payment Period Sum Assured Limits 20 - 60 years 50 - 70 years 10 - 40 years (Subject to min. vesting age) 10 - 40 years Minimum= Rs. 1,00,000 Maximum= Rs. 10 Crore Single Premium 20 60 years 50 - 70 years 10 - 40 years (Subject to min. vesting age) Not applicable Minimum= Rs. 1,00,000 Maximum= Rs. 10 Crore

*Chosen Retirement Age: the age on which your annuity vests. A professional pedigree thats second to none: Insurance solutions from Max New York Life bring proven expertise to the Indian life insurance arena. As your partner for life, the company bring innovative life insurance solutions based on New York Life's global experience of over 160 years and Max India's deep understanding of Indian market. Expert Advice at Doorstep: The Agent Advisors of the company have been professionally trained to understand and evaluate your unique financial requirements, and recommend a policy which best meets of the persons needs. With experienced agents, supported by a team of specialists.

Max New York Life Shiksha Plus In this day and age of ever evolving expectations, the fastest growing and ever-changing needs are that of our children. While in yesteryears, it was all about focusing on education and ensuring that our children get into the best of schools, now it doesnt stop just there. The needs of parents and children alike go much beyond mere education. Its more about having a multi-faceted personality, being an all-rounder and excelling in different fields. Its really about the overall personality of your children and how that will make them successful individuals. Max New York Life Shiksha Plus understands this very desire that every parent has for their child and is designed specifically to ensure that your child not only gets the best of education, but also gets to explore and develop his/her hidden talents.

Why Max New York Life Shiksha Plus

WILL WALK YOUR CHILD THROUGH SCHOOL INTO COLLEGE University Education Pool: On the policy maturity date, the Fund Value is paid out to take care of higher education expenses for your child.

ENOUGH MONEY TO NUTURE SPECIAL TALENTS

Talent Enhancement Withdrawal: If you feel your child has some special talent that needs to be encouraged, you can partially withdraw specified amounts from your Fund Value to aid their skill enhancement. GUARANTEED LOYALTY ADDITIONS IN EACH OF THE LAST 6 POLICY YEARS. University Education Pool Booster: In the last 6 Policy Years, we would add guaranteed units as loyalty addition to the Fund Value to further boost the university education pool when it matters the most towards the Policy maturity.

IN CASE OF DEATH ALL FUTURE PREMIUMS FUNDED BY COMPANY University Education Support: In case of death all future premiums are funded by the company to support your childs university education thereby ensuring that your childs dreams will always be fulfilled.

SECOND CHILD? ADD HIM OR HER AS WELL Premium Upgrade for Sibling: Within 12 months of the birth of the second or within 12 months of adoption of second child to support additional expenses and to provide similar benefits to both your children, you can upgrade the premiums by 50%, which will also increase your sum assured by 50%.

IN CASE OF DEATH 10% OF SUM ASSURED IS PAID OUT EVERY YEAR School Fee Support: In case of death, 10% of initial Sum Assured is paid out every year, till the policy anniversary immediately proceeding the maturity date, to provide for school expenses subject to a maximum of 100% of initialSum Assured

4 Easy steps towards building a bright future for your child Step 1: Choose your Premium

a) Level Premium: Under this option, the Policyholder may choose to pay ATP, which shall remain unchanged, throughout the Policy Term for the Premium paying term either Regular Pay or only for Five (5) Policy years in case of 5 Pay Premium payment option. b) Increasing Premium: Under this option, the ATP will increase by an amount equal to 5% of the initial ATP on each Policy Anniversary after the effective date of the Policy. In this case, the Sum Assured shall also increase @ 5% per annum of the first Year Sum Assured on each Policy Anniversary. Step 2: Choose your Policy Term You can select a Policy Term as per your convenience from the options of 10 year (only available with 5 pay) or you can pick a term between 15 to 25 years in the regular pay option. Step 3: Choose your Sum Assured You can choose the amount of protection you want with a wide choice of Sum Assured multiples, which can be 10 or 20 times of your Annual Target Premium. Sum Assured = ATP X Cover Multiple (10 or 20) . Step 4: Choose your Investment Strategy 7 expertly managed funds to choose from: Fund Name Potential Governme Corporate Money Equity & Risk / nt Bonds Market Equity Reward Securities and Cash related Instrumen securities Growth Fund High 0%-30% 0%-30% ts 0%-40% 20%-70% Growth SuperHigh Fund Balanced Fund 0%-20% 0%-20% Fund Manageme nt Charge 1.25%

0%-30% 70%-100%1.25%

Moderate 20%-50% 20%-40% 0%-40% 10%-40% 1.10%

Dynamic Moderate 0%-100% 0%-100% 0%-40% 0%-100% 1.25% Opportunities Fund Conservative Low Fund Money Market Fund Low 50%-80% 0%-50% Nil Nil 0%-40% 0%-15% 100% Nil 0.90% 1.25%

Secure Fund Low

50%-100%0%-50%

0%-40% Nil

0.90%

Dynamic Fund Allocation This investment option enables you to plan your investments basis your life stage. It basically is a strategy where the fund manager gradually shifts your investments from higher risk to lower risk funds as you grow older and your risk appetite decreases. Number of Years to Assets under management to Assets under management Maturity be maintained under the to be maintained under the Growth Super Fund Secure Fund 21 25 years 16 20 years 11 15 years 6 10 years 0 5 years 85% 75% 60% 40% 20% 15% 25% 40% 60% 80%

Max New York Life Shiksha Plus at a glance Minimum/Maximum Age of Life Assured at Entry (Last Birthday) Policy Term Maximum Age of Life Assured at Maturity Payment Term Premium Premium Payment Mode Minimum Annual Target Premium 21 years to 55 years and child age 0 18 years 5 pay - 10 years term (only available with Level Premium Option) or 15 to 25 years (pick a term). 70 years. Regular pay (for terms 15 to 25). 5 pay - for 10 year term. Annual, Semi-Annual, Quarterly and Monthly. Rs. 24,000 per year (for Regular Pay), Rs. 50,000 (for 5 pay Premium payment option). Annual Target Premium X Cover Multiple(10 or 20).

Sum Assured

Death Benefit

Immediate Family Support: 100% of Sum Assured University Education Support: Company funding of future premium. School Fees Support: 10% of initial SA paid out every year for 10 years subject to maximum of 100% SA. University Education Pool: Fund Value paid on maturity . University Education Pool Booster: Guaranteed Loyalty Additions made in last 6 policy years. University Education Pool: Fund Value paid on maturity. University Education Pool Booster: Guaranteed Loyalty Additions made in last 6 policy years. 12 Free switches allowed in a policy year.

Maturity Benefit

Switching

Redirection Partial Withdrawal Guaranteed Loyalty Additions

12 Free redirections allowed in a policy year. 12 Free partial withdrawals allowed in a policy year. Policy Term=10 years, Loyalty Addition=5% of First ATP Policy Term=15 to 25 years, Loyalty Addition=(Term*2)% of First ATP

Note: 1. Guaranteed Loyalty Additions will be paid provided all due premiums have been paid by the policyholder. If the policyholder opts for cover continuance option, then Guaranteed Loyalty Additions will not be paid. 2. Guaranteed Loyalty Additions are payable even if the policyholder is not alive. How does Max New York Life Shiksha Plus work for you Mr. Singh is 29 years old, Mrs. Singh is 28 years old and they have a 2 year old daughter. Mr. Singh takes Max New York Life Shiksha Plus to secure his daughters future (Term = 20yrs, Premium =

Rs.50,000 (Level Premium), Dynamic Fund Allocation, with a cover multiple of 20). Mr. Singh will get a maturity value of Rs. 22,42,723 (@10% rate of return) & Rs. 14,58,726 (@6% rate of return). In the unforeseen event of death of Mr. Singh in the 11th year of policy, the following benefit will be paid out to support the daughters education: Amount (in Rs.) 10,00,000 50,000 per year 1,00,000 per year 22,42,723 Payout Immediate Premium Funding in the Policy Regular payout post death subject to 100% of initial Sum Assured Maturity of Policy

Immediate Family Support University Education Support School Fees Support University Education Pool

LIFE Insurance Plans -Child Career Plan

Introduction: This plan is specially designed to meet the increasing educational and other needs of growing children. It provides the risk cover on the life of child not only during the policy term but also during the extended term (i.e. 7 years after the expiry of policy term). A number of Survival benefits are payable on surviving by the life assured to the end of the specified durations. Options: You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium payment and Premium Waiver Benefit. Payment of Premiums: You may pay the premiums regularly at yearly, half-yearly, quarterly or through Salary deductions over the term of policy. Premiums may be paid either for 6 years or upto 5 years before the policy term. Benefit: Survival On life assured surviving to the end of the specified durations an amount specified below is payable: 5 years before the date of expiry of policy term 4 years before the date of expiry of policy term 3 years before the date of expiry of policy term 2 years before the date of expiry of policy term 1 years before the date of expiry of policy term On the date of expiry of policy term 30% of the Sum Assured along with vested Simple Reversionary Bonuses

- 15% of the Sum Assured - 15% of the Sum Assured - 15% of the Sum Assured - 15% of the Sum Assured 15% of the Sum Assured along with Final (Additional) Bonus, if any.

Death On death (after the Date of Commencement of Risk) (i) If death occurs within the period from date of commencement of risk to 5 years before the date of expiry of policy term: Sum Assured along with Vested Simple Reversionary Bonuses and Final (Additional) bonus (if any) is payable. (ii) If death occurs within 5 years before the date of expiry of policy term: Sum Assured along with Final (Additional) bonus (if any) is payable. On death during the Extended Term - Sum Assured is payable. On death (before the Date of Commencement of Risk) - All the premiums paid (excluding extra premium and

premium for premium waiver benefit, if any,) along with interest of 3% p.a compounding yearly shall be payable. Auto Cover: If after at least two full years premiums have been paid, and any subsequent premium be not duly paid, full death cover shall continue for a period of two years from the due date of the First Unpaid Premium (FUP). During this Auto Cover Period, one or more instalments of premiums with interest can be paid without submission of evidence of health. On payment of one or more of the arrears of instalment premiums with interest, the Auto Cover Period of 2 years shall be extended from the due date of new FUP. Premium Waiver Benefit shall remain inforce during the Auto Cover period Premium Waiver Benefit: The proposer can opt for this benefit if aged between 18 and 55 and is medically fit. It provides waiver of premiums on death of proposer. Further the benefit shall remain in force during the Auto cover period. Any premiums that have fallen due and not paid during the Auto Cover period shall also be waived. This benefit shall not be available in case of suicide by the proposer within one year Eligibility of policy. Further, revival of the policy shall be subject to medical fitness of the proposer. Conditions and Other Restrictions: (a) Minimum Entry Age : 0 years (last birthday) (b) Maximum Entry Age : 12 years (last birthday) (c) Minimum Maturity Age : 23 years (last birthday) (d) Maximum Maturity Age : 27 years (last birthday) (e) Minimum Sum Assured : Rs. 1,00,000 (f) Maximum Sum Assured : Rs. 100,00,000 (g) Policy term : 11 to 27 years (h) Premium Paying term : 6 years and Policy term less 5 years Participation in Profits of the Corporation: Simple Reversionary Bonuses shall be declared per thousand Sum Assured annually at the end of each financial year depending upon the Corporations experience, provided the policy is in full force. In case of a paid up policy, bonuses shall be payable only if, at least, 3 full years premiums have been paid. On surrender, the discounted value of vested bonuses, if any, (if not paid earlier) will be payable. Final (Additional) Bonus may also be declared in addition. Paid-upValue: Not withstanding the death benefit provided under the Auto Cover period, if at least three full years premiums have been paid and any subsequent premium be not duly paid, this policy shall not be wholly void but shall become paid-up. If policy becomes paid-up before the commencement of risk, then the policy shall be entitled to receive the Guaranteed Surrender Value. If the policy is not surrendered, this Guaranteed Surrender Value shall be payable on the expiry of policy term or on death of Life Assured, if earlier. If policy becomes paid-up after the commencement of risk, then the sum assured of policy shall be reduced to such a sum, called paid-up value, as shall bear the same proportion to the full Sum Assured as the number of premiums actually paid bears to the total number of premiums stipulated for in the policy. This reduced value (called paid up value) along with vested bonuses, if any, shall be payable on the date of expiry of policy term or at Life Assureds prior death. No survival benefit shall be payable under a reduced paid-up policy. Extended Term cover shall cease to apply if the policy is in lapsed/ Paid-up condition.

SurrenderValue: You may surrender the policy for cash after at least three full years premiums have been paid. The Guaranteed Surrender Value will be as under: Before commencement of risk: 90% of the total amount of premiums (excluding premiums for the first year ) paid. After commencement of risk: 90% of the total amount of premiums (excluding premium for the first year) paid before commencement of risk and 30% of premiums paid on and after the commencement of risk. The Guaranteed Surrender value calculated above will be subject to the deduction of the total amount of survival benefits that might have become due on or before the date of surrender. Further all extra premiums and/or any other premium including premium for Premium Waiver Benefit shall not be considered in the premiums refunded. The cash value of any existing vested bonuses, if any, will also be paid if not paid earlier. Corporation may, however, pay Special Surrender value as the discounted value of Paid up value and existing vested bonus, if not paid earlier, as applicable on date of surrender. The Special Surrender value will be subject to the deduction of the survival benefits which have become due on or before the date of surrender. The Special Surrender value will be payable provided the same is higher than Guaranteed Surrender value. GracePeriod: A grace period of one calendar month but not less than 30 days will be allowed for payment of premiums. Revival: If the policy is lapsed it can be revived by paying arrears of premium together with interest within a period of five years, subject to production of satisfactory evidence of continued insurability. The rate of interest applicable will be as fixed by the Corporation from time to time. cooling-offperiod: If you are not satisfied with the Terms and Conditions of the policy you may return the policy to us within 15 days. Exclusions: Suicide is excluded for Premium Waiver Benefit for first year. No other exclusions. MiscellaneousProvisions: Date of commencement of risk : If age of Life Assured is upto 10 years, risk shall commence either after 2 years from the date commencement of policy or from the policy anniversary coinciding with or immediately following the completion of 5 years of age of Life assured, whichever is later. In other cases, risk shall commence from the policy anniversary coinciding with or next following 12th birthday of the Life Assured. Date of Vesting: The policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.

Insurance Act, 1938 to IRDA Act, 1999

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA, since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations.

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA. 1. Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. 2. Without prejudice to the generality of the provisions contained in subsection (1), the powers and functions of the Authority shall include, (a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; (b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; (c) specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; (d) specifying the code of conduct for surveyors and loss assessors; (e) promoting efficiency in the conduct of insurance business; (f) promoting and regulating professional organizations connected with the insurance and re-insurance business; (g) levying fees and other charges for carrying out the purposes of this Act; Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA, since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations.

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA. 1. Subject to the provisions of this Act and any other law for the time

being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. 2. Without prejudice to the generality of the provisions contained in subsection (1), the powers and functions of the Authority shall include, (a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; (b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; (c) specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; (d) specifying the code of conduct for surveyors and loss assessors; (e) promoting efficiency in the conduct of insurance business; (f) promoting and regulating professional organizations connected with the insurance and re-insurance business; (g) levying fees and other charges for carrying out the purposes of this Act; h) calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business

Max New York Life Insurance And Lic:

LIC has been one of the pioneering organizations in India who introduced the leverage of Information Technology in servicing and in their business. Data pertaining to almost 10 crore policies is being held on computers in LIC. We have gone in for relevant and appropriate technology over the years. 1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late 1950s were phased out in 1980s and replaced by Microprocessors based computers in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme (SSS) Policies. FRONT END OPERATIONS With a view to enhancing customer responsiveness and services, in July 1995, LIC started a drive of On Line Service to Policyholders and Agents through Computer. This on line service enabled policyholders to receive immediate policy status report , prompt acceptance of their premium and get Revival Quotation, Loan Quotation on demand. Incorporating change of address can be done on line. Quicker completion of proposals and dispatch of policy documents have become a reality. All our 2048 branches across the country have been covered under front-end operations. Thus all our 100 divisional offices have achieved the distinction of 100% branch computerization. New payment related Modules pertaining to both ordinary & SSS policies have been added to the Front End Package catering to Loan, Claims and Development Officers Appraisal. All these modules help to reduce time-lag and ensure accuracy.

METRO AREA NETWORK A Metropolitan Area Network, connecting 74 branches in Mumbai was commissioned in November, 1997, enabling policyholders in Mumbai to pay their Premium or get their Status Report, Surrender Value Quotation, Loan Quotation etc. from ANY Branch in the city. The System has been working successfully. More than 10,000 transactions are carried out over this Network on any given working day. Such Networks have been implemented in other cities also. WIDE AREA NETWORK All 7 Zonal Offices and all the MAN centres are connected through a Wide Area Network (WAN). This will enable a customer to view his policy data and pay premium from any branch of any MAN city. As at November 2005, we have 91 centers in India with more than 2035 branches networked under WAN. INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS) IVRS has already been made functional in 59 centers all over the country. This would enable customers to ring up LIC and receive information (e.g. next premium due, Status, Loan Amount, Maturity payment due, Accumulated Bonus etc.) about their policies on the telephone. This information could also be faxed on demand to the customer.

LIC ON THE INTERNET Our Internet site is an information bank. We have displayed information about LIC & its offices . Efforts are on to upgrade our web site to make it dynamic and interactive.The addresses/e-mail Ids of ur Zonal Offices, Zonal Training Centers, Management Development Center, Overseas Branches, Divisional Offices and also all Branch Offices with a view to speed up the communication process. PAYMENT OF PREMIUM AND POLICY STATUS ON INTERNET LIC has given its policyholders a unique facility to pay premiums through Internet absolutely free and also view their policy details on Internet premium payments.There are 11 service providers with whom L I C has signed the agreement to provide this service.

INFORMATION KIOSKS We have set up 150 Interactive Touch screen based Multimedia KIOSKS in prime locations in metros and some major cities for dissemination information to general public on our products and services. These KIOSKS are enable to provide policy details and accept premium payments. INFO CENTRES We have also set up 8 call centres, manned by skilled employees to provide you with information about our Products, Policy Services, Branch addresses and other organizational information. Best Deals for Life Insurance (Term) in India Compare Life Insurance policies of all the leading Insurance Company in India. Deals shown below are of Term Insurance plans for a 30 year old male with coverage amount of Rs 10 Lakhs, and policy

Institution Name Tata AIG SBI Life Reliance Life Max New York Bharti AXA HDFC Standard Future Generali LIC

Product Name Raksha SBI Shield - Annual Premium Reliance Term plan Level Term Policy Secure Confident Term Assurance Regular Premium Future Care Anmol Jeevan Regular Premium

Coverage Amount Rs. 10,00,000 Rs. 10,00,000 Rs. 10,00,000 Rs. 10,00,000 Rs. 10,00,000 Rs. 10,00,000 Rs. 10,00,000 Rs. 10,00,000

Premium Rs. 2,420 Rs. 2,454 Rs. 2,600 Rs. 2,710 Rs. 2,850 Rs. 2,920 Rs. 3,100 Rs. 3,260

Policy Term 20 20 20 20 20 20 20 20

However, if we compare traditional plans LIC has slight advantage in terms of bonus declarations and the range of products. Some LIC plans also offer guaranteed bonus rates. In 1994, the committee submitted the report and some of the key recommendations included: i)Structure Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate. ii) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state. iii) Regulatory Body The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent iv) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought

down to this level over a period of time) v) Customer Service LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body- The Insurance Regulatory and Development Authority.

Max New York Life Insurance Company

VISON: To become the 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.

Joint Venture PartnerMax New York Life Insurance Company 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 multibusiness 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. Max India has raised its economic interest in life insurance joint venture with a foreign partner, Max New York Life (MNYL) from 50% to 74%.

It is widely known that as per the agreement signed between the two leading giants in 2003, the New York Life was contributing 26 percent in the 26:74 joint venture for every equity investment made. Max was contributing 50 percent and the remaining 24 percent was funded through an advance paid by New York Life to it. New York Life had an option to raise its shareholding in the JV close to 50 percent at the par value, in case of a relaxation up to 26 percent in the FDI sectoral cap in the insurance segment. These terms were approved by the Insurance Regulatory and Development Authority (IRDA) and were highlighted in the successive annual reports of Max India.

Asset Under ManagementMax New York Life Insurance announced that it has clocked Rs. 2,100 crore in collected premiums for the period Jan - July 2008 recording a growth of 81% over the similar period last year. Of this, first year premiums contributed Rs. 1195crore, while earnings from renewal premium stood at Rs.905 crore. The company has acquired around 27 lakh policies since inception and is ranked number 3 amongst private life insurers in terms of number of policies sold (YTD June). The Assets Under Management have also increased to over Rs.4138 crore on July 31, 2008 as compared to Rs.2271 crore on July 31, 2007. The capital base of the company is expected to expand to Rs.3600 crore from current equity base of Rs.1,232 crore. New York Life is one of the largest and strongest life insurance companies in the world with more than USD$215 billion assets under management and has received among the highest ratings for financial strength from the life insurance industry's principal rating agencies: A.M. Best (AA+), Standard & Poor's (AA+), Moody's (Aa1), Fitch (AAA). According to Moody's, "New York Life's rating reflects the company's good quality investment portfolio, ample liquidity, and sound capitalization, as well as the good growth potential of its international business.

StrategiesMax New York Life Insurance is further strengthening its investment function, the growth strategy of the company. The company plans to strengthen its investment desk by adding analysts and fund managers and launching more fund options to provide better value to its customers of both ULIP and traditional products. The company also announced completion of one year of its Growth Super Fund, which has provided a return on investment of 20.2% as on 30th May 2008. At a time when equity markets have been volatile, the Growth Super Fund has performed exceptionally well. During the same period CNX 500 recorded a growth of 11.11% and the BSE Sensex a growth of 12.86%. Growth Super is a fund that has the mandate to invest a minimum of 70% in equity and can scale it up to 100%, with the rest invested in debt and cash instruments. For future expansion i) Recruitment Vertical ii) Health and Retirement Plan

iii) Highly Network Individual iv) CEIP v) Max BUPA:-Max India and BUPA International vi) General Insurance Products 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 enabling customers to choose the policy or plan that best fits their need. These include:

INDIVIDUAL INSURANCE
Protection Plans: Whole Life Level Term Five Year Term R & C Life Partner Plus Savings: o Life Gain Endowment o Life Pay Money Back o Life Gain Plus 20 o Life Gain Plus 25 o 20-Year Endowment Unit Linked: o Life Maker Premium o Life Maker Gold o Life Maker Platinum o Life Maker Pension o Life Invest GROUP INSURANCE o Group Term Life o Group Gratuity o Employee Deposit Linked Insurance o Credit Shield o Unit Linked Group Gratuity o Unit Linked Group Superannuation RURAL INSURANCE o Max Suraksha o Easy Term o Max Mangal Endowment o Max Vriksha Money Back MAX ASSURE o Max Assure Bonus Builder o Max Assure Business Builder o Max Assure Money Back o Max Assure Future Builder o Max Assure Secure Returns Builder

NAV Life Maker Investment Plan Life Maker Pension Plan Life Maker Premium Smart Steps Group Gratuity Group Superannuation Max Amsure Secure Returns Builder Different Channels of Distribution i) Agency Channel:- In Max New York Life Insurance, business is done mainly through Agent Advisor. In India it has more than 55000 agents. Two Programs is run under Agency Channel i)AAP: - Agency Association Program ii)CEIP ii) Bancassurance: -Bancassurance is an innovative distribution channel involving banks to sell insurance products of Insurance Companies. Max New York Life Insurance has tied up with Yes Bank iii) Direct Sales Team (DST ):- Max New York Life Insurance makes a data base of potential customers; contact them on the telephone to market different policy of the company. iv) Alternate channels - Business is done through associate partners, internet etc.

Span of Organization
Max New York Life Insurance has a strong growth focus. The company plans to significantly expand its distribution footprint by opening more than 100 new offices every year for next 3-4 years. The number of agent advisors is expected to touch 2, 00,000 from current 36,500. The growth in agency distribution will be complemented by strong growth in partnership distribution. The company currently has an equity base of Rs.1, 032 crore. To support this growth plan, the shareholders are committed to increase the capital base to Rs. 2,650 crores over the next 3-4 years. There are 13000 employees all over India and 55000 Agent advisors. CEO (Chief Executive Officer) Channel Head 2 Vice President M.P (Managing Partner) SGO (Senior General Officer) Partner 6 A.P (Associate Partner) 9 ASM/SM (Assistant Sales Manager/Sales Manager)

Actuarial of Max New York Life

Appointed actuaries are a life insurance companys watchdogs. They are there to ensure that a life insurance company is run properly and that all liabilities towards policyholders are appropriately and correctly recorded in the books .IRDA has mandated that life insurance companies get two auditors to certify the accuracy of accounts. Max New York Lifes auditors are PricewaterhouseCoopers and Ernst & Young. The regulator keeps a close watch on a life insurance companys assets to ensure that all investments are safe and secure.

Comments
Max New York Life is the first company to be awarded license by IRDA after liberalization of the insurance industry. The Company's paid up capital is Rs. 657 crore, which is more than the norm laid down by IRDA. I think that the company has positioned itself on the quality platform and it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The main strategy is to establish itself as a trusted life insurance specialist through a quality approach to business. Their financial practices are prudent enough to ensure safety of policyholder's funds. Its primary channel of distribution is individual agents. As being the best in class agency distribution model in place, the company is Spreading a major thrust into additional distribution channels to further grow its business. The five-pronged strategy to pursue alternative channels of distribution includes the franchisee model, rural business, direct sales force involving group insurance and telemarketing opportunities and corporate alliances. It also offers a suite of flexible products. So the company has a strong distribution channel and solid strategies. It also has a wide range of products, which will certainly help the company to grow in the near future

CONCLUSION
LIC is an established brand name which has all the products in its portfolio. Max New York Life Insurance on the other hand is comparatively new player in the Indian market and almost has all types of plans in its portfolio. Max has some good unit linked plans and health plans. Insurance is contributing to our economy in every sense, it is one of the significant part of our economy. With the globalization its scope and need has been increased. But stiil due to some flaws in the system many areas are not properly tapped. Secondally small exporters are not aware of importance and need of insurance .so awareness compaign should be there for insurance companies and best services should be provided . to make it profitable government should come forward and invest in it for smooth functioning.

BIBLOGRAPHY www.Irdaindia.com www.moneycontrol.com www.licindia.com www.mnyinsurance.com www.maxnewyorklifeinsurane.com