SUMMER TRAINING REPORT SUBMITTED TOWARDS THEPARTIAL FULFILLMENT OF MBA + POST GRADUATE PROGRAM(INDUSTRY INTEGRATED) IN ENTREPRENEURSHIP &BUSINESS

RECRUITMENT AND SELECTION PROCESSin Max New York Life

SUBMITTED BY:Shilpee

MBA+PGP (2008-2010) Roll No.:DBS/0810/W218

INDUSTRY GUIDE FACULTY GUIDEMrs.Deepti Nain Mr. RaviPrakashManager Recruitment Delhi Business School Max New York Life New Delhi

dbsDelhi Business School

B-II/58, M.C.I.E., Mathura Road, New DelhiWebsite: www.dbs.edu.in

CERTIFICATE OF ORIGIN

This is to certify that Ms. Shilpee, a student of MBA+PGP , Delhi Business School,New Delhi has worked in the Max New York Life, under the able guidance and supervision of Mrs. Deepti Nain, Manager Recruitment, MNYL.The period for which he/she was on training was for 8 weeks, starting from 15 th May to 15 th july . This Summer Internship report has the requisite standard for the partial fulfillment of the requirement for the award of degree of MBA & Post Graduate Program in Entrepreneurship & Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Mr.Ravi Prakash Shilpee

ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude that I got a great

chance to work within such an esteemed organization as “Max New York Life”

which has been really seems to be proved as “Your Partner for Life”.

The amount of exposure and support, which I have been received during my study

there, has been simply outstanding.

A Special word of thanks to Mr. Pradeep Kumar Malhotra,Director,(MNYL)

for giving me an opportunity to work in his organization.

I am deeply indebted to Mrs. Deepti Nain,Manager-Recruitment, MNYL, under

whose guidance and supervision I was able to complete my internship project.

I express my special thanks to all the employees especially Mr. Saurabh Jain,

Sales Manager, at MNYL for their support and spending time for necessary

information gathering and data collection for the study.

I am grateful to the Max New York Life, organization for giving me this opportunity to pursue my summer internship.

A special word of thanks to Mr. Ravi prakash,my faculty guide, for his continuous support during the tenure of the project.

Shilpee

DECLARATION

I hereby declare that the project report titled “Recruitment & Selection Process”

at Max New York Life is my own work and has been carried out under the able

guidance of Mrs. Deepti Nain, Manager Recruitment & Mr. Saurabh Jain,

Sales Manager, Max New York Life, Branch – NEW FRIENDS COLONY, New

Delhi and Mr. Ravi Prakash,Faculty Guide, DBS. All care has been taken to keep

this report error free and I sincerely regret for any unintended discrepancies that

might have crept into this report. I shall be highly obliged if errors (if any) be

brought to my attention.

Thank You.

TABLE OF CONTENTS

S.No. Contents Page No.

1 Executive summary 2 Objectives & Research Methodology 3 Company’s Overview History (Introduction) Vision & Mission The Promoters Product Line & Features Marketing Strategies Competitors Govt. Policies & Taxation aspects Issues & Challenges Achievements 4 Recruitment & Selection process Prospecting for desired candidates Initial Screening Career Seminar Selection Procedure Documentation Training & Development 5 Analysis 6 Conclusion 7 Bibliography 8 Annexure

EXECUTIVE SUMMARY

The study is conceived & conducted in response to concern that now a days most of the companies are facing a big problem of employees turn over, and they are trying to come up with this problem. This study lokks after all the aspects of employees as well as employer or the company that why an employee tends to leave his/ her job & go or join some where else.

As we know, Turnover in Human Resource Context refers to the charecteristics of a given company or industry , relative to rate at which an employer gains or loss staff.

If a employer is said to have a high turn over, it most often means that employees of that company have shorter tenure than those of other companies in the same or different sector. Similarly if the average tenure of employees in a particular sector is lower than that in other sector, that sector can be said to have a relative high turn over.

Here, the study has been made by selecting two different sectors i.e. Insurance sectors v/s BPO sectors.

The idea is to make a comparative study between the rate of employees turn over b/w these two sectors as the two sectors, always have a high turn over.

“Human Resource Management aims to improve the recruitment & selection

procedure within the organization so that the organization could get the best of its

employees strength”. The Human Resource provides an employee a high

performance cultural that emphasizes empowerment, quality, productivity, goal

attainment, and the recruitment and an ongoing development of a superior

workforce.

Recruitment and selection process can only be effective if the HR team of an organization follows the correct procedures and rules while appointing an employee. During the process of recruitment a candidate has to go through many steps. The HR team members of the company arranges all the steps as:

Arrange a meeting Go through Initial Screening Career Seminar Formal Interview Submittion of Documentation Final Appointment

The purpose of this study is to find out how efficiently you can select an

employee at Max New York Life. In addition to this we also take a look at how

best we can train our employees i.e. by providing them a proper training related

to their job.

OBJECTIVES OF THE STUDY

The purpose of this study is to find out the most efficient employee for the

organization i.e. Max New York Life. In addition to this we also take a look at how

best we can manage training program provided to the newly joined employees i.e.

what are the various ways and means to improve the working capacity of the

employee so that he/she can give the very best to the company. This can be done

by finding out the various ways of the selection and also the training process.

RESEARCH METHODOLOGY

In this section, we look at:

1. Data Collection Methods

2. Questionnaire Methods

3. Pilot Survey

Data Collection Methods:

The two most popular approaches for collection of data, so as to handle the

recruitment & selection process within are:

The questionnaire survey technique

The conduct of the interview and the direct observation.

Questionnaire Methods:

Questionnaires are lists of questions aimed at discovering particular information.

The main strength of these tools is that they yield quantitative information, which

can be used to understand the candidate.

The questionnaires have been filled by 80 people and

Pilot Survey:

A pilot survey is a preliminary survey on the small scale to make sure that the

design and methodology of the main survey are likely to produce the information

required. A pilot survey was conducted with few officers and staff members each,

who recommend that questionnaire serve the study’s process and it could be used

for the survey.

INTRODUCTION

TO

THE ORGANISATION

INTRODUCTION:

Insurance may be defined as a social device to reduce or eliminate risk of life and

property. Under the plan of insurance, a large number if people associate

themselves by sharing risk, attached to individual.

The risk, which can be insured against include fire, the peril of sea, death, incident

& burglary. Any risk contingent upon these may be insured against as a premium

commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called insurer

undertakes in exchange for a fixed sum called premium to pay the other party

happening of a certain event.

With the help pf insurance, large number of people exposed to a similar risk make

contributions to a common fund out of which the looses suffered by the

unfortunate few, due to accidental events, are made good.

With largest number of insurance policies in force in the world, insurance happens

to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per

cent annually and presently is of the order of Rs 450 billion. Together with

banking services, it adds about 7 per cent to the countries GDP. Gross premium

collection is nearly 2 per cent of GDP and funds available with insurance

companies are 8 per cent of GDP.Yet, nearly 80 per cent of Indian population is

without life insurance cover while health insurance and non-life insurance

continues to be below international standards. And this part of the population is

also subject to weak social securities and pension systems with hardly any old age

income security. This is an indicator that growth potential for the insurance sector

is immense.

A well developed and evolved insurance sector is needed for economic

development as it provides long-term funds for infrastructure development and at

the same time strengthen the risk taking ability. It is estimated that over the next

ten years India would require investments of the order of one trillion US dollar.

The insurance sector, to some extent, can enable investments in infrastructure

development to sustain economic growth of the country. Insurance is a federal

subject in India. There are two legislations

that govern the sector- The Insurance Act-1938 and the IRDA Act-1999.

In India, insurance is generally considered as a tax-saving device instead of its

other implied long term financial benefits. Indian people are prone to investing in

properties and gold followed by bank deposits. They selectively invest in shares

also but the percentage is very small. With the entry of private sector players

backed by foreign expertise, Indian insurance market has become more vibrant.

Entrance of Insurance in India

In the early nineties, the Government started loosing the control on the Indian Industry.

In 1993, Government appointed the Malhotra Committee, headed by the former RBI Governor R.N. Malhotra.

The panel submitted a report one year later and then recommended PRIVATISATION.

With this ‘privatization’, came up the insurance regularity & Development Authority (IRDA), now responsible for all insurance business in India.

An overview of MAX NEW YORK LIFE

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, built on the foundation of financial strength, integrity& solidity.

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. 1032 crore.

Max New York Life appropriate the 6 crore values (CHEKIT) as the corner stone of the way to do business:

Caring Honesty Excellence Knowledge Integrity Team work

Having set a best in class agency distribution model in place, the company is spearheading a major thrust into additional distribution channels to further grow its business.

The company is : Professional Financially responsible Transparent Flexible

The company has multi-channel distribution that includes the agency distribution, partnership distribution, banccasurance, distribution focused on emerging markets and alliance marketing through employed sales force.

The company currently has 33 bancasurance relationships, 14 corporate agency 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 38 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 7500 employees.

ABOUT MAX INDIA LIMITED

In India ,Max is a multi business corporation, driven by the spirit of enterprise,which is built on knowledge, delivered through people, distinguished through service excellence.

Max India is a young, modern Indian corporation, with a strong capability of recognizing opportunities ahead of their time.

It has been able to form and strength international alliances with global leaders across a wide spectrum of management activity.

Max is led by a skilled team of professional managers and is recognized for commercially successful manufacturing and service delivery business.

Max is ranked amongst top 200 most valuable companies in India (Business India Survey, October 2000).

It has got a partnership with the most respected names in the world i.e.New York Life, Harvard Medical International Inc., USA, Mind crossing Inc., USA Avnet Inc., USA , Gist Brocades International, Netherlands, Comsat Investment Inc., USA.

Max has got many host of awards for excellence as :

Techies 2000 Golden peacockNational awards for R&D efforts in industry

ABOUT New York Life Insurance Company

The New York Life Insurance Company (NYLIC) is the largest mutual- life insuarance company in the United satates, and one of the largest life insurers in the world.

Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.

The company is listed as #78 in the 2007 Fortune 100.

In 2007, Standard and Poor's upgraded New York Life Insurance Company's insurance financial strength rating to AAA, the highest rating Standard and Poor's assigns. The company is now one of only three life insurers to hold the highest possible rating from all four major rating agencies.

NYL Building

The company was founded in 1845 as the Nautilus Insurance Company in New York City, with assets of just $17,000.

It was renamed the New York Life Insurance Company in 1849. Its first headquarters were at 112-114 Broadway; the first president was James DePeyster Ogden.

The current New York Life headquarters was designed by noted architect Cass Gilbert and completed in 1928.

The New York Life building, at 51 Madison Avenue, was constructed during the presidency of Darwin P. Kingsley. He expanded the company's operations and developed new types of insurance.

As with other early insurance companies in the U.S., in its early years the company insured the lives of slaves for their owners.

In response to bills passed in California in 2001 and in Illinois in 2003, the company reported that Nautilus sold 485 slaveholder life insurance policies during a two-year period in the 1840s; they added that their trustees voted to end the sale of such policies 15 years before the Emancipation Proclamation.

The company became known for innovative business practices. In 1860, well before state laws required it, New York Life developed the non-forfeiture option,

the predecessor to the guaranteed cash values of modern policies, under which a policy remains in force even if a premium payment is missed.

It was also the first American life insurance company to pay a cash dividend to policyholders, and the first U.S. company to issue policies to women at the same rates as men.

Susan B. Anthony was one of their first female policy holders, and her father worked for NYLIC.

In 1896, New York Life became the first company to insure people with disabilities and the first to issue a policy with a disability benefit that presumes total disability to be permanent after a predetermined period.

In the late 1990s New York Life was one of several large mutual life insurers to back a bill that would allow demutualization into a structure known as a mutual holding company (MHC).

Its CEO Sternberg himself argued strongly in favor of the bill, which was ultimately defeated. The NYLIC board of directors subsequently reversed course, with the company strongly and publicly embracing their mutual nature in a series of advertisements.

According to their Report to Policyholders 2007, in early 2007 the company's managers became concerned about the state of credit markets, so in February 2007 "based on our belief that the markets were acting irrationally"

New York Life decided to move much of its cash flow into safer investments such as US Treasury bonds. "By August 2007, the credit market problems we had feared were front page news," the Report notes.

It has a wide Business scope also as:

Both NYL (its primary American insurance subsidiary, New York Life Insurance and Annuity Corporation) are licensed to do business in all 50 states and the District of Columbia.

The company also sells annuities and long-term care insurance mutual funds through its subsidiary NYL Securities, a registered broker-dealer; and provides institutional asset-management and retirement-plan services from subsidiary New York Life Investment Management (NYLIM).

NYL insures millions o flives all over th eglobe, for 160 years now.

It has strongly rooted in the commitment of financial strength, integrity and humanity.

New York Life has insured the lives of as many as 9 US Presidents

Richard Nixon (1913-1994) Franklin D. Roosevelt (1882-1945)

Herbert Hoover (1874-1964)

Calvin Coolidge (1872-1933)

Warren Harding (1865-1923)

Theodore Roosevelt (1865-1923)

William McKinley (1843-1901)

Benjamin Harrison (1833-1901)

James Garfield (1831-1881)

NYL is the first insuarance company to:

offer Cash dividends to policy owners in 1847 insure women at the same rate as men in 1894

introduce a disability benefit clause in 1920

offer unemployment insuarance in 1992

offer complete customer care on the web in 1998

More about Max New York Life

Max New York Life was incorporated in 11th July 2000, working on a equity based model.

The joint- venture partner carries a experience of 160 years in insuarance where Max India Limited has 74% shares &New York Life International has 26% shares.

The company has paid up a capital of Rs. 536 crores.it declared yhe first bonus in March 2003 & the only company to offer cash bonus on all participating products.

It has touched over 14 lakhs policies & has insured people people for approx Rs.40,000+ crores since inception.

The agent strength of the company is now more than 23000.

MNYL has a total assured sold of Rs.57,000 crore (among top 3 in India).

MNYL is the only private insurer of India, in the coveted MDRT list of top 50 & the ranking is led by New York Life with 2000+ agents.

India had 201 MDRTs in 2005.

MNYL is the first insuarance company to receive the ISO 9001 : 2000 certification.

Our Quality Policy

MNYL will be the most admired

life insuarance company

We will:

Aquire & Retain Satisfied Customers

Settle Claims Fairly & Speedly

Continuously Improve Our Products And Services

Meet Regularity & other Stakeholder Requirements

Anuroop(Tony)Singh

CEO & MD

Money outlook

certificate

Max New York Life were the first ones in the industry to offer:

15 days free look period a delaied policy pack

detailed & realistic illustration with each policy pack

no rebates by the agents

MNYL’s Formula for Success

Knowledge : Attitude : Skill : Habit

KASH

Our………………. Vision

Become the most

Admired Life Insurance

Company in India

Our…………………Mission

Part of top quartile life insurance companies

National Player

Brand of first choice

Employer of choice

Principle of choice for Agents

Our………………. LOGO

Our Logo is a combination of the Max Flame and the New York Life Logo.

The Max Flame is the representative of many qualities. As it burns, it represents Enterprise & Ambition. Its steadfast quality embodies Hope, Commitment, Care & Service. As a giver light, it is the flame of knowledge.

The base of the flame is ‘Diya’ (traditional earth lamp), this symbolises the ‘Earth’, & the fact that common ddenominators bind the world together.

Our Brand Ambassador

Rahul Dravid:MNYL’s Brand Ambassador

Conveys our core value of caring, honesty, excellency,

Knowledge, integrity & team work.

Max New York Life at a glance

As on May 31th 2008

Founded 2000

Started Operations April 2001

Headquarters New Delhi, India

World Wide Web Addresshttp://www.maxnewyorklife.com/

Chairman Analjit Singh

Managing Director & CEOGary Bennett

Paid-Up CapitalRs. 1032 crore

Employees9,480 

Number of Products (Individual) 38

Number of Riders/Options (Individual)

8

Product Combinations Possible (Individual) Over 800

Number of Products (Group) 6

Number of Riders/Options (Group)

4

Number of Offices295

Number of Offices Dedicated To Rural Business

39 (9 hub offices 30 spoke offices)

Number of Cities 196

MDRTs 343 (for calendar year 2007)

MANAGEMENT TEAM

Board of Directors,MNYL

Analjit Singh, Chairman Gary R. Bennet,MD & CEO

Anuroop ‘Tony’ Singh, Vice Chairman Ted Mathas,President & COO

Sunil Sharma, COO & Executive Director

Rajesh Sud, Executive Director, Anil Mehta, Director, Group Business

Distribution

Sunil Kakkar, Director & CFO Ajay Seth Director, Legal & Complaince

Debashish Sarkar, Director-Marketing, John Poole Chief ActuaryProduct Management & Corporate Affairs

The Promoters of Max New York Life

Max India is a Public Limited company listed on the NSE and BSE of India with over 26,000 shareholders. Today, Max India Limited is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of:

Health Care

Life Insurance Clinical Research (Neeman Medical International)

Max also maintains interest in :

Specialty Plastic Products for the packaging industry (Max Speciality Products)

Healthcare Staffing (Max Health Staff)

Prominent shareholders are Mr. Analjit Singh and a leading private equity firm, Warburg Pincus which accounts for 28.7% of the total shareholding. The balance shareholding is held by the public and Institutional Investors.

Till 1999, the company’s main interest & partnership were the following business:

Bulk Active Pharmaceuticals Electronic Component Distribution Mobile Telephony V-SAT Communications Plating Chemicals

Partners

Information Technology DSM Gist Brocades Motorola, USA Avnet Inc., USA Hutchison Telecom Ltd. Hong Kong Comsat Investment Inc., USA & Lockheed Martin, USA Atotech, Germany Mind Crossing, USA

In 2000, the Company reinvented and restructured itself to focus on the businesses of ‘Life’ under them, Life…Our Focus.

Max New York Life Insurance, founded as a Joint Venture between Max India Limited and New York Life, a Fortune 100 company, is one of the leading private life insurers in India.

Max Healthcare, a subsidiary of Max India Limited is India’s first provider of comprehensive, standardized, seamless, and integrated world-class healthcare services.

Neeman Medical International (NMI) is an International Clinical Research provider operating across three locations spanning North America, Asia and Latin America. Each location is backed by comprehensive infrastructure and highly skilled and experienced personnel.

Max New York Life has also tie ups with:

India Bulls Amway

Yes Bank

Products of Max New York Life

MNYL has a wide range of its products in the market.It basically deals with eight (8) types of products:

Protection Plans

Children Plans

Investment Plans

Retirement Plans

Health Plans

Saving Plans

Rural Plans

Strategic Plans

Protection Plans

MNYL’s Protection Plans insures life and reduce any hardship your family may have to bear in the unfortunate event of your death.

MNYL takes out the shackles of worries and gives you the opportunity to feel free in the sky.

There are some of Protection Plans to choose from:

Five year Renewable & Convertible PlansTM

Level Term Policy

Children Plans

MNYL with their child Plans make it possible for you to achieve their dreams of giving your child a happy and financially secured futures.

It believes in the statement that helping your child “win the battle of life” is the best gift that a parent can give.

Children Plans offers some sub-products to choose from:

Children’s Endowment to 18 (par) Children’s Endowmento 24 (par) Smart stepsTM

Smart stepsTM plus Smart StepsTM Single premium Stepping Stones (par)TM

Investment Plans

MNYL investment plans helps in growth of money.

It gives he cuctomers dual benefits of protection along with higher returns of market linked instruments.the most important benefit of ULIPs is the flexibility,they give the customer in choosing the premium amount.

It has also some sub-productsto choose.

Life Maker TM Premium Life MakerTM Gold Life MakerTM Platinum Life InvestmentTM

Smart AssureTM

Retirement plans

MNYL Retirement plans comes forward to support you in your old age and makes the unfulfilled dreams of your life comes true.

It makes sure that you maintain your comfortable lifestyle and don’t compromise with your wishes because of lack of financial resource in your old age.

It has also some options to choose.

Easy lifeTM retirement (par) Smart InvestTM Pension.

Health Plans

We all know that “health is wealth” but disease can grab any one at any time, so you should be prepare in a way that you don’t have any financial constraint at that time.

MNYL believes in the statement that ‘Prevention is better than cure’,so it has designated one of its products as Health Plans.

MNYL’s Health Plans have designed to take into account the diverse set of needs at any time of an individual’s ill health.

Health Plans have explored their products as :

Life Line Medi CashTM tm Life line Safety NetTM

Life Line Medi CashTM Plus Life Line wellnessTM

Life Line WellnessTM Plus

Saving Plans

Max New York Life’s Saving Plans helps you for your foreseen and unforeseen needs which can arrive at any point of time in your life.

MNYL’s dual benefit plans recognize your need for a complete all round financial protection and therefore provides you life cover and helps in the growth of your money.

MNYL offers the diverse Saving Plans, which would suit your needs and your budget, such as:

Whole Life Participating Life Gain tm Plus Life Gain tm Endowment Life Gain Tm Plus 20 (par) Life pay tm Money Back Life Partner tm 20 Year Endowment( Par) Endowment to Age 60 (par)

Rural Plans

MNYL’s Rural Plans have tailored especially to meet all types of requirements of rural customers / investors.

The key features of Rural Plans are Hassle free procedures and Low and affordable premiums, which proves MNYL expectation in offering their incredible services to classes of society.

There are some Rural plans which have been designed keeping in mind Rural Investors:

Max Suraksha Easy term Policy

Strategic Product Plans

Max New York Life’s Strategic Product Plans ensures your life’s complete happiness.

Strategic Product Plans have been especially designed to cater to the needs of the channel partners.

Some of its plans fulfill all the foreseen and unforeseen needs of your complete family very efficiently:

Bancassuarance Additional Distribution

Super Saver Bond Max Mangal

Capital Builder Max Vriksha

Capital Builder

Max Amsure

Future Builder Bonus Builder Business Builder Secure Returns Builder Family Money Back

Marketing Strategies:

To attain its leadership ambition, MNYL has built its strategy around a business model, and a set of clearly defined operational priorities.

The main strategy of Max New York Life is to train its agents per employees by providing them the proper way of training.

MNYL focuses basically on its training procedures because it believes that if you have a trained employee then you can rule over the market.

MNYL’s business model entails fortifying, consolidating and developing organic growth- retaining existing clients and aquiring new ones to ensure that the company is able to seize genuine oppertunities for external growth.

MNYL’s development efforts are focused on the most profitable segments, and the company seeks to enhance its positioning in developed or high- growth market.

Max New York Life has different kinds of channels such as:

Agency Banccasuarance Direct sales Corporate Employee Investment Program (CEIP)

Max New York Life believes _____ that the most natural market is your own initial market i.e.

Family Friends

MNYL’s Global strategy is leveraged by the size and reach of its company,which encourages local operating units to developand exploit synergies.

The Organization’s Sales Hierarchy

Competitors of Max New York Life

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again.

It is known to all that now a days Insurance sectors are going to boom in the Indian as well as International market, so it is natural that there will be a great competition among all the companies.Similarly, Max New York Life has also many competitors, some of them are as follows: ICICI prudential

Bajaj Allianz

SBI Life

HDFC Standard

Reliance Life

Birla Sunlife

Aviva Life

Tata AIG

Kotak Mahindra Old Mutual

ING Vysya

Met Life

Shriram Life

Sahara Life

Bharti Axa Life

LIC

Govt. Policies taken under Insurance sector inIndia

The business of Life Insurance in India in its existing form started in the year 1818 with the establishment of the Oriental Life Insurance company in kolkatta.

Tracing the developments in Indian Insurance sector reveals the 360-degree turn witnessed over a period of almost 190myears.

Some of the important milestones in the Life Insurance business in India are:

1912 – The Indian Life Assurance Companies Act enacted as the first statute to regulate the Life Insurance bbusiness.

1928 – the Indian Insurance Company Act enacted to enable the government to collect statistical information about both life and non-life insurance business.

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 taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital cotribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, traced its root to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Kolkatta 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 (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.

107 insurer amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New Indian Assurance Company Ltd., the Oriental Insurance Company Ltd. And the United India Insurance Company Ltd. GIC incorporated as a company.

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

The life insurance companies was the launch of the IRDA’s online service for issue and renewal of licences to agents. Since being set up a an independent statutory body the IRDA has put in frame work of globally compatible regulations.

IRDA’s primary function is to protect consumer interests. IRDA has evolved a set of operational guidelines to deal with maintaining the solvency of insurers.

With the Insurance Regulatory And Development Authority, the focus shifted to the following:-

The Insurance Regulatory And Development Authority (IRDA) should give priority to health insurance while issuing certificate of registration.

Policyholder fund will be invested in the social sector and infrastructure. The IRDAmay specify the percentage and such regulation will apply to all insurers operating in the company.

Insurer may be expected to undertake certain percentage of business in the rural or social sector and provide policies to persons residing in rural areas ; workers in the unorganized and informal economically back.

In case the insurer fail to meet the social sector obligation a fine of rupees 2.5 would be imposed to the first time. Subsequent failure would result in cancellation of license.

Under the IRDA act, an “Indian Insurance Company” will be allowed to conduct business provided it satisfies the following conditions:-

It must be formed and registered under companies’ act 1956.

The aggregate holding of equity shares by a foreign company, either by itself or through its subsidiaries or its nominees, should not exceed 26 percent paid up equity capital of the Indian insurance company.

Its sole purpose must be to carry on the life insurance business or general insurance business or re insurance business.

No insurer will be allowed to carry on the life insurance and general insurance business in India, unless it has a paid up equity capital of Rs. 1 Billion. For carrying on reinsurance business, the minimum paid up capital has been prescribed as Rs. 2 Billion.

The Reserve Bank Of India has also issued guidelines for banks entry into the insurance business.the RBI would be given permission to the banks on a case-by-case basis and the banks having minimum net worth of Rs.5 Billion and satisfying other criteria in respect of capital adequacy,profitbility,non performing asset level and tarct record of existing subsidiaries can undertaken insurance business through joint ventures subject to certain safeguards.

IRDA Guidelines for investment of asset:

Every insurer is required to invest,and keep invested asset equivalent to not less than the net liabilities as follows:-

a) 25 percent in government securities.b) At least 25 percent of the said sum in government or other approved securities.c) The balance in any approved investment rated as “Very strong” or more by reputed rating agencies.

Further, every insurer has to always maintain an excess of the value of his assets over the amount of liability of notless thana) 100 crore in the case of an insurer carrying of life insurance business.b) 50 crore,a sum equivalent to 20 percent of net premium income or a sum equivqlent to 30 percent of net incurred claims in the case of the insurer carrying of the general insurance business.

IRDA’S MISSION:

“To protect the interests of the policyholders,to regulate,promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental there to.”

Tax Benefits

Life Insurance and Tax Benefits:

Max New York Life offers various insurance schemes, which helps individuals in tax planning.

Benefits under income- tax can be described under two heads :-

(a) Deductions(b) Exemptions

Tax Deductions

Sec 80 CSec 80 D

Exemptions from the proceeds

Commuted pension: 10(10A)(iii) One-third of the Value on vesting date would be tax free

Life Insurance proceeds: 10 (10D)

This includes any sum received from insurance policy as maturity proceeds, death benefits

Proceeds of Keyman insurance are taxable

The single premium policies would be taxed as income in the year it is received assuming that premium exceeds 20% of the sum assured

An insurance policy issued after 1st April, 2003 with respect to which the premium payable for any of the years during the term of policy exceeds 20% of the actual capital sum assured, will not be eligible for Sec 10(10D) benefits. This won’t be applicable for any sum received on the death of a person.

Issues and Challenges

The liberalization followed by growth of the India Insurance industry has opened wide opportunities for service and infrastructure sectors.

This growth has to be properly channelised. Some of the major challenges that have to addressed for channelising the growth of insurance sector are Product Innovation, Distribution Network, Investment Management, customer service and Education.

Product Innovation

Customers are now looking at insurance as complete financial solution offering stable returns coupled with total protection.Companies will need to constantly innovate in terms of product development to meet over-changing consumer needs. Understanding the customer better will enable Insurance companies to design appropriate products, determine price correctly and increase profitability. In this context Management Guru peter Drucker has rightly said “Markets are changing from Cost lead Pricing to Price lead Costing”.

Distribution Network

While companies have been successful in product innovation, most of them are still grappling right mix of Distribution Channels for:

Capturing maximum market share to build brand equity. Building strong and Effective Customer relationships. Cost effective customer service.

This calls for selection of right type of Distribution channel mix along with prudent and efficient FOS (Fleet on Street) Management.

1.Distribution Network

While the traditional channel of tied up advisors or Agents would be the chief distribution channel, insurer should innovate and find new methods of delivering the products to customers. Corporate agency, brokerage, Bancassurance, e-insurance, cooperative societies and panchayats are some of the channels which can be tapped by the insurers to reach the appropriate market segments.

2.FOS (Fleet on Street) Management

The major issues to be addressed in insurance FOS management are High Attrition, lack of Motivation,and Product knowledge. These issues can effectively be tackled by continuous training, performance linked reward system, and career counseling.

Customer Education and Service

Insurance, particularly life insurance, is never bought but sold.To convince a large population, which is comparatively not well informed about the intangible benefits of insurance, is needed an onerous task.

In the present competitive scenario, aq key differentiator would be professional customer service in in terms of quality of advice on product choice along with policy servicing. Servicing should focus on enhancing the customer experience and maximizing customer convenience.

Investment Management

He most difficult challenge would be to provide returns comparable to other financial instruments.The problem is further aggravated by interest rates. Need of the hour for an insurer is to follow prudent underwriting practices and efficiently cut down management and administrative expenses. Insurer must follow best investment practices and have a strong Asset Management Company to maximize returns.

Achievements & Awards of Max New York Life

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

It is the first company to start toll free line for agent services.

It is the first and only life insurance company in India to implement lean methodology of service excellence in service industry.

It is the first insurance company in India to provide various services to the agents and customers over phone.

It is the first Indian insurance company to start service centre at the regional level.

MNYL is the first insurance company in India to be awarded ISO 9001:2000 certification.

MNYL has got many awards also:

MNYL is among top 25 companies to work for in India, according to Business World 2003 ‘Great Workplaces of India’.

It is among the top five most respected insurance companies in India as per Business World 2004 &2006 survey.

MNYL has won Indo-American Corporate Excellence Award for Best Indo-US company in Financial services category in 2006.

It has received ‘Best Six Sigma Project’ award at Sakal Six Sigma Excellence Awards-2006’

Among top 3 in Asia Life Insurance Company of the year Award-2007 instituted by Asia Insurance Review.

It has received the Amity Corporate Excellence Award-2007.

MNYL has also received the ‘Outlook Money Award’ for being “among the best new insurer in the country”.

Project Focus

Recruitment & selection Process at Max New York Life

We all know that a company whether it is big or small can not run without people. In other words, we can say that it is required to have people in an organization who can work there as a employee so that the company can run well and smoothly. But,

for the appointment of employees in the organization, each & every company has some certain criterias or rules & regulations under which the selection process goes on.

Similarly, Max New york Life has also made some criterias for the selection of their employees such as:

Prospecting for the desired candidates

Initial Screening

Career Seminar

Selection Procedure

Documentation

Training

Prospecting for the Desired Candidate

The very first step taken under the process of Recruitment and selection is prospecting for the desired candidate.Basically the prospection of qualified names has been done through searching the job portals.There are some other sources to approach the required/qualified names also such as:

Personal observation Nomitation Direct mail References (through Sales manager/working employees)

Ther are some elegibility criteria also while prospecting candidates at MNYL i.e. Age Group_____ should be 18 years or above Qualification____ must be 12th pass (minimum) He/she anyone from housewives to entrepreneurs, teachers to part time workwrs_____ who is enterprising, well-networked, flexible & out-going can join MNYL as an Agent Advisor.

There are some competencies also such as: Entrepreneurship Selling & influencing Perseverance Relationship building/Customer services Planning & Organizing Communication skills

Initial Screening

After the prospection of candidates the next step to be taken is Initial Screening.In Initial screening we ask some personal & professional questions to the candidates to know more about his/her background and their suitability for the prescribed job.During the process of initial screening we give some required information that why a candidate should join MNYL i.e.

The Six Differentiators: Selection Process Training Programs Management Loyality Products Agent,s Contracts Great work Environment

Career Seminar

After initial screening the candidate has to go through a career seminar. He/she has to attend the career seminar where they come to know more about the opportunities at MNYL i.e.

About the company

The business opportunity the company is offering The work profile The recognition platform that you will get at MNYL The future oppertunities for you

Work Profile at MNYL

Work profile at MNYL is an entrepreneurial opportunity with flexible working hours and the potential to earn unlimited income without any capital investment.As an Agent at MNYL, you are a financial advisor, a business person and your own boss.The role which you have to play is:

Identify prospects and conduct a need analysis Provide customized solution for long term financial protection and wealth

creation Close sales Deliver the policy Provide after sales services and buid references for future sales

Recognitoin platform at MNYL

Selection Procedure

After attending the Career Seminar the candidate now becomes able to understand all about Macx New York Life and his/her job profile also.

So, the next step tyo this is, he /she has to go through a Numerical Ability Test where MNYL comes to know about the candidates mind flexibility.

At this point if there is a continued mutual interest then MNYL assess the candidate’s natural market through ‘Project 200’ file where he/she has to mention a list of 200 people with their relative information. A time period of maximum 3 days is given to the candidate for the completion of the Project and after crossing this phase the candidate has to submit his/her ‘Documents’ as per required.

Now the candidate is appointed as a ‘FINANCIAL ADVISOR’ as he/she has gone through all the steps, at each step he/she would learn more about his career in

MNYL & MNYL will learn more about the candidate.

Training of selected Candidates at MNYL

Once the candidate has been selected as a Financial Advisor then the very first step he/she has to go through is a 15 days proper training.

Max New York Life has the reputation for having the finest training program for agents in the industry. The training program is designed to provide training and development for agents throughout their career. The training program consists of a

full two year formal class room based program. MNYL has two full-time professional trainers in each office whose sole job is to train and guide the new agents.

One of the main reasons for New York Life's involvement in the training program is that their training in the United States is widely recognized as the best in the insurance industry. This magnificent program has been bought to India and customized for the Indian market.

In the United States, New York Life had more members in the Million Dollar Round table, the world wide organization of the top professionals in the insurance industry, for 50 consecutive years. In 2001 and thereafter, Max New York Life had more qualifiers for the prestigious Million Dollar Round Table than the other 12 private players combined.

ANALYSIS

1. How many people are aware of MNYL?

2. Are you aware of career opportunities at MNYL?

0

1020

304050

6070

Well-Awared

Average Awared

Least Aware

Not Awared

Not Awared

Percentage:

Well-Awared– 70%Average Awared– 20% Least Awared – 10%Not Awared – 0%Not Awared – 0%

3. Are you known to the meaning of Financial Advisor?

0

10

20

30

40

50

60

Well-Awared

Average Awared

LeastAwared

Not Awared

Not

Awared Percentage:

Well-Awared – 60%Average Awared – 25%Least Awared – 15%Not Awared – 0%Not Awared – 0%

4. Are you aware of Career Seminar?

0

10

20

30

40

50

Well- Known

AverageKnown

Least Knownl

Don’t Know

Don’t

Know

Percentage:

Well-Known – 35%Average Known – 43%Least Known – 17%Don’t Know – 5%Don’t Know – 0%

5. Have you attended any Career Seminar?

Well-Awared

Average Awared

Least Awared

Not Awared

Not Awared

Percentage:

Well-Awared – 15%Average Awared – 60%Least Awared – 20%Not Awared – 2%Not Awared – 3%

6. Were you satisfied with the Career Seminar?

0

10

20

30

40

50

60

70

So Many One/Two once Never Never

Percentage:

So Many – 28%One/Two – 60%Once – 9%Never – 3%Never – 0%

0

10

20

30

40

50

60

StronglyAgree

Agree Neutral DisagreeStronglyDisagree

Percentage:

Strongly agree – 25%Agree – 55%Neutral – 17%Disagree – 2%Strongly Disagree – 1%

7. Is it beneficial to you?

0

10

20

30

40

50

60

StronglyAgree

Agree Neutral Disagree StronglyDisagree

Percentage:

Strongly agree – 36%Agree – 48%Neutral – 13%Disagree – 3%Strongly Disagree – 0%

8. Do you feel the changes in your views & opinions after attending the

Seminar?

0

10

20

30

40

50

60

Stronglyagree

Agree Neutral Disagree StronglyDisagree

Percentage:

Strongly agree – 25%Agree – 58%Neutral – 13%Disagree – 2%Strongly Disagree – 2%

9. What is your opinion about 15 days training of Financial Advisor at

MNYL ?

10. Do Training Programs help you in making your tasks easy?

0

10

20

30

40

50

60

70

Full-Satisfied

Average Satisfied

NeutralNot Satisfied

Not

Satisfied

Percentage:

Full-Satisfied – 28%Average Satisfied – 60%Neutral – 12%Not Satisfied– 0%Not Satisfied – 0%

0

10

20

30

40

50

60

70

StronglyAgree

Agree NeutralDisagreeStronglyDisagree

Percentage:

Strongly agree – 62%Agree – 28%Neutral – 10%Disagree – 0%Strongly Disagree – 0%

11. Does it increase your knowledge ability after attending the training

program?

Str

ongl

yag

ree

Agr

ee

Neu

tral

Dis

agre

e

Str

ongl

yD

isag

ree

S10

10

20

30

40

50

60

Percentage:

Strongly agree – 33%Agree – 60%Neutral – 5%Disagree – 2%Strongly Disagree – 0%

12. Which was the best method you feel when the program was conducted?

0

5

10

15

20

25

30

35

40

lLive Case Study

GroupDiscussion

Roleplay BrainStorming

Presentation Others

Percentage:Live case study – 36%Group Discussion – 20%Role Play – 10%Brain Storming – 24%Presentation – 10%Others – 0%

13. Did u find any stress when the Training Program was conducted?

Percentage:

Strongly Agree – 20%Agree-40%Neutral-20%Disagree-20%Strongly Disagree-0%

14. What is your overall evaluation of Career Seminar & Training

Programs?

Percentage:Adequate – 20%Somewhat Adequate – 80%Less than Adequate -0%

Conclusion

Almost all the companies have their certain criterias of Recruitment &

Selection, so as Max New York life has.

The project deals in finding out how Recruitment & Selection process

goes through at MNYL.

The whole procedure carries most importantly two things i.e. Career

Seminar & Training process after recruitment.

As per the survey, the findings show an improvement in the views of a

candidate after attending the Career Seminar & after recruitment when

they go through their 15 days training process their performance becomes

much better.

But it is also found that even after attending the Career Seminar some of

the candidates are not yet free to express their views and opinions.

But overall the whole process gives approx. positive results and we

become able to change the negative views in positive through Career

Seminars.

BIBLIOGRAPHY

ELECTRONIC MEDIA

1. http://www.maxnewyorklife.com

2. http://wikipedia.org/wiki/insurance

3. http://www.hinduonnet.com/businessline/2008/03/20/19hdline.htm

4. http://myicwai.com/knowledgebank/fm05.pdf

5. http://goliath.ecnext.com/coms2/summary_0199-5571522_ITM

6. Max New York Life Intranet

PRINT MEDIA

1. Mahesh Chandra Garg, New Paradigms in Indian Insurance

Industry, Yojana, Vol. 45, No. 7, April 2001.

2. IRDA Annual Report 2006

3. Personnel Manual of Max New York Life

4. Annual Report of Max New York Life

5. THE BUSINESS WORLD

6. THE BUSINESS LINE

7. THE ECONOMIC TIMES

ANNEXURE

QUESTIONNAIRE/SURVEY

Name: _______________

Age: _________________

Sex: Male Female

Address: _________________________

________________________

City: ________ State: ___________

Phone Number: ________________

Qualification: ____________________

Occupation: _____________________

Q1: Do you know about any insurance company?

Yes No

Q2: Do you know about Max New York Life?

Yes No

Q3: What do you think about the career opportunity in insurance sector?

Broad scope

Narrow scope

No scope

Q4: would you like to be associated part time with MNYL?

Yes No

Q5: Do you know about the job of Financial Advisor?

Yes No

Q6: Have you ever worked with any insurance company?

Yes No

Q7: If yes, which one ________________

Job profile ______________________

Q8: Do you think life insurance is helpful to upgrade living standards of people?

Yes No

Q9: what is your opinion on insurance as an investment option?

Better Good Can’t say

Bad Worst

Reference(if any): 1____________________________

2____________________________

3____________________________

Agent Screening & Evaluation File

Name:____________________________________________________

Address:

Home:________________________________________________

__________________________________________________

Pin:____________ Ph:______________ Mobile____________

Office:__________________________________________________

___________________________________________________

Pin: ____________ Ph:______________ Mobile:____________

Education (please specify last Educational qualification, Institute & Marks):

_____________________________________________________________

_____________________________________________________________

Work History:

Organization/occupation Period Nature of job

In brief

Chief

responsibility

Annual

inco incomeFr From

Please ask the following questions (mandatory):

What did you like the most about your previous job? Why?

_____________________________________________________________________________

_____________________________________________

What did you dislike the most about that job? Why?

___________________________________________________________

What do you like most about your current job?? Why?

_____________________________________________________________________________

___________________________________________

what do you dislike most about this job? Why?

_____________________________________________________________________________

_____________________________________________What, to your mind, are the

characteristics of a successful sales person?

_____________________________________________________________________________

_____________________________________________Can you name the first three people that

come to your mind when you think of these characteristics? These should be the ones you have

personally interacted with.

Name Address Phone

1. _____________ _____________ _____________

_____________ ______________ _____________

2. _____________ ______________ _____________

______________ ______________ ______________

3. ______________ _______________ ______________

______________ _______________ ______________

Agent Eligibility on five on Five Point System Points Scored

Age_____________________________ ____________

Marital Status_____________________ ____________

Qualification______________________ _____________

Gender__________________________ ______________

Living in the city for 5 years__________ ______________

Total points scored _____________

_______

Sign of the Recruiter

List of few Candidates who were Interviewed

S.no. Name of the Candidate Qualification/Occupation

1 Mr. Mukesh Kumar Graduate

2 Ms.Noor Jahan Graduate

3 Mr. Krish Kohli Post Graduate

4 Mrs. Ritu Juneja Teacher

5 Mr. Praveen Mishra MBA

6 Md. Kashif Working(HDFC)

7 Mr. Upendra Kumar Working

8 Mr.Arun Bhatia Graduate

9 Mr. Naveen Kumar Working(ICICI)

10 Mr.Santosh Kumar Sharma MBA

11 Mr. Marsh Maxwel MBA

12 Mr. Aas Mohammad MBA

13 Mrs. Sushma Madan Teacher

14 Mr.Sanjay Mehta Teacher

15 Ms. Rachna Malik Own Shop

16 Mr.Jitendra Vohra Financial Advisor(ICICI)

17 Mr.Sanjeev Arora Dayal Medicos

18 Mr.Mahtab Alam Fashion Designer

19 Mr.Rakesh KIrishan Vansh Design

20 Mr.Mustafa Karim Graduate