INTERNSHIP REPORT

ON
MARKETING THE INSURANCE PRODUCTS OF MAX
LIFE INSURANCE

Department of Management Business Administration

Submitted by: -
Saurabh Garg
Roll N0- 2301320700043
In partial fulfilment for the award of the degree
Of

Master of Business Administration (MBA)

In

Marketing (Operation Management)

Under the guidance of
Mr.praveen Rajpal

Greater Noida Institute of Technology, Greater Noida

 Certificate

This is to certify that this Project Work Report Titled MARKETING THE INSURANCE
PRODUCTS OF MAX LIFE INSURANCE.’ is the bonafide work of SAURABH GARG
University Roll No. 2301320700043, who has carried out his their project under my
supervision. I also certify further, that to the best of my knowledge the work reported herein
does not form part of any other project report or dissertation on the basis of which a degree or
award was conferred on an earlier occasion on this or any other candidate.

Signature of the Faculty Signature of Director

 DECLARATION BY THE CANDIDATE

I hereby declare that the project report entitled " MARKETING THE INSURANCE PRODUCTS

OF MAX LIFE INSURANCE IN" submitted by me to Greater Noida Institute of technology

(GNIOT) Knowledge Park-II, in partial fulfillment of the requirement for the award or the degree of

MBA in Marketing is a record of Bonafede project work carried out by me under the guidance of

Mr. Ajay Sharma. I further declare that the work reported in this project has not submitted and will

not be submitted, either in part or in full, for the award of any other degree or diploma in this

institute or any other institute or University.

Date: 18-12-2024 Signature of the Candidate

3
 ACKNOWLEDGEMENT

Apart from my efforts, the success of the project depends largely on the encouragement and
guidelines of many others. I take this opportunity to express my gratitude to the people who have
been instrumental in the successful completion of this project.
I would like to express a deep sense of gratitude to our Head of the department Mr. Anuj Garg for
their cordial support as they gave the permission to use all required equipment and the necessary
material to complete the project.
I would like to extend my sincerest gratitude to Mr. Ajay Sharma for his guidance and supervision
as well a for providing necessary information regarding the project and for is support in completing
the project.
Finally, I also extend my heartiest thanks to my part its, friends, and well-wishers for being with me
and extending encouragement throughout the project.

SAURABH GARG
Roll No:-2301320700043

4
 Preface

―The Business of Insurance is related to the protection of the economic values of the

assets‖. Every human being has the tendency to save to protect him from risks or events
of future. Insurance is one form of savings where in people try to assure themselves against risks
or uncertainties of future. It is assurance against risks or events or losses.

People can save their earnings either in the form gold, fixed assets like property or in banking
and insurances. All the savings of people of a country account for gross domestic savings. In
India, although savings rate is high but people prefer to invest either in gold or fixed assets so
that they can make money out of it. Hence insurance sector is still untapped in India. Insurance is
a tool by which fatalities of a small number are compensated out of funds (premium payment)
collected from plenteous. Insurance is a safeguard against uncertain events that may occur in the
future. It is an arrangement where the losses experienced by a few are extended over several who
are exposed to similar risks. It is a protection against financial loss arising on the happening of an
unexpected event. Insurance companies collect premium to provide security for the purpose.
Loss is paid out of the premium collected from people and the insurance companies act as
trustees to the amount so collected. These companies have proposal forms which are filled to
give details of insurance required. Depending upon the answers in the proposal form insurance
companies assess the risk and decide on the premium.

5
6
CONTENTS

CHAPTER – 1: INTRODUCTION
Industry Profile

Company Profile

Product Profile

CHAPTER – 2: DEVELOPMENT OF MAIN THEME

Need of the study

Review Of Literature

Market Segmentation

Objective Of The Resources

Review Of The Literature

CHAPTER – 3: Research And Methodology

Role Of Insurance

Research Methodology

Method Of Data

Analytical Tools Used

Suggestions
CHAPTER - 4: Findings, Conclusion and

Recommendation Conclusion

Findings Recommendation

7
8
CHAPTER 1 : INTRODUCTION

9
1.1 INTRODUCTION OF THE TOPIC
What is insurance?

“A way to manage your risk”

you purchase protection against unexpected financial losses. The insurance company pays you or
something you choose if something bad happens.

If you have no Insurance is a way to manage your risk. When you buy insurance, insurance and
an accident happens, you may be responsible for all related costs. Having the right insurance for
the risk you may face can

make a big difference in your life .

Meaning

An insurance policy is a written contract between the policyholder (the person or company that
gets the policy) and the insurer (the insurance company).

The policyholder is not necessarily the insured. An individual or company may get an insurance
policy (making them the policyholder) that protects another person or entity (who is the
insured). For example, when a company buys life insurance for an employee, the employee is
the insured, and the company is the policyholder.

10
NATURE OF INSURANCE

a)Risk sharing and risk transfer: Insurance is used to share the financial losses that might occur
to an individual or his family on the happening of specified events. The loss arising from such
events are shared by all the insured in the form of premium.

Example: suppose in a village, there are 250 houses, each valued at Rs.200000. Every year one
house gets burnt, resulting into a total loss of Rs 200000. If all the 250 owners come together
and contribute Rs.800

each, the common fund would be Rs200000.This is enough to pay to the owner whose house
gets burnt. Thus the risk of one owner is spread over
house owners of the village.

Risk assessment in advance: Insurance companies are risk bearers. They assess the risk before
insuring to charge the amount of premium.

Its not gambling or charity: The uncertainty is changed to certainty by insuring property and life
because the insurer promises to pay a definite sum at damage or death. Insurance is antithesis of
gambling. Failure of insurance amounts to gambling because the uncertainty of loss is always
looming. Moreover insurance is not possible without premium. So it is different from charity
because charity is given without consideration.

Huge number of insured people: It is essential to insure larger number of people or property to
make cost of insurance less consequently premium would also be less.

Assists in capital formation: Insurance provides capital to society. Accumulative funds are
invested in productive channels.

11
SEMANTICS

Risk: It is defined as an uncertainty of a financial loss. It is the unintentional decline in or

disappearance of value arising from contingency.

Policy: It is the document which embodies the insurance contract 9

Whole life policy: It is the policy under which the amount of policy will be paid only on death
of the insured. Premiums may be payable throughout the life or for a limited period.

Endowment policy: Endowment policies entitle the insured to receive the

amount of the policy on his reaching a certain age and premiums also stops. If death occurs
earlier, amount of the policy will be paid at that time and payment of premium will also stop at
that time.

Claim: It is the amount which an insurer has to pay against a policy.

Reinsurance: It refers to placing a part of the risk by an insurer with another insurer. The object
is to reduce the possible loss to be borne by the original insurer, who pays premiums at the
ordinary rates to the reinsurer. Reinsure must pay commission to the original insurer.

Premium: A periodic payment made on an insurance policy.

Insurance penetration: It is defined as insurance premium as a share of gross domestic product.

Insurance density: Insurance density is defined as per capita expenditure on insurance premium
i.e. premium per capita.

Actuary: The actuary is a specialist who combines an understanding of risks and mathematical
technique to develop financial products to manage these risks, price these products. He helps in
designing insurance plans and then evaluates the financial risk of the company which it takes
while selling an insurance policy.

12
What are common types of insurance?

There are many types of insurance, but some common types are described here.

Health insurance: Helps you pay for doctor fees and sometimes prescription drugs. Once you
buy health insurance coverage, you and your health insurer each agree to pay a part of your
medical expenses — usually a certain dollar amount or percentage of the expenses.

Life insurance: Pays a person you select a set amount of money if or when you die. The
money from your life insurance policy can help your family pay bills and cover living
expenses.

Disability insurance: Protects individuals and their families from financial hardship when
illness or injury prevents them from earning a living. Many employers offer some form of
disability coverage to employees, or you can buy an individual disability insurance policy.

Auto insurance: Protects you from paying the full cost for vehicle repairs and medical
expenses due to a collision. In most states, the law requires you to have auto insurance when
operating a motor vehicle.

Homeowner‘s or renter‘s insurance: Protects your home and personal property against
damage or loss and insure you in case someone gets hurt while on your property. If you have
a mortgage on your property, most lenders require you to have homeowner‘s insurance as a
condition of the loan.

13
How does insurance reduce your financial risk?

Imagine you‘re driving your car and you hit a deer, which damages your car. If you have the
right kind of auto insurance policy, the insurance company will pay the costs of the car repairs
(minus the deductible — the portion you have to pay). Now, imagine a water pipe bursts in your
bathroom, ruining everything in that room and in the bedroom next to it. Typically, if you have
homeowner‘s or renter‘s insurance, the insurance company will pay to replace some or all of the
damaged property, once you pay your deductible. Insurance policies will only pay for things that
are described in the policy. So, it‘s important to read a policy carefully before you buy it, so
you‘ll know exactly what‘s covered

14
 HISTORY OF INSURANCE GLOBAL

For now we know the meaning of insurance, different types of insurance. Now let us know the
history and reasons for and behind different types of insurance. Insurance has existed for
thousands of years. The first ever type of insurance was Property Insurance. It became popular
about 3000 BC in China. It all started when Chinese merchants, as well as their investors, wanted
to ensure that they would see a profit from their goods that they shipped overseas. In the event
that a ship was lost at sea, an insuring partner would reimburse the owners of the ship and goods.
To pay for the loss the merchant would be sold into slavery to the insurer until the debt was
repaid. This was so because, a merchant could not afford to pay for the lost goods or even to buy
a ship unless someone invested.

Property insurance was also seen in Babylon as well. In Babylon, merchants and investors
entered into a contract, in which the supplier of money for a trade agreed to cancel the loan if the
trader was robbed of his goods. The trader who borrowed the money paid an extra amount for
this protection in addition to the usual interest. As for the lender, collecting these premiums from
many traders made it possible for him to absorb the losses of the few. Later this contract was
extended to include provisions for a family home and even the death of the insured, where life
insurance came into existence. Slowly this concept started to spread across other places like
Greek, Roman. Since ancient times, communities have pooled some of their resources to help
individuals who suffer loss. Like, about 3500 years ago, Moses instructed the nation of Israel to
contribute a portion of their produce periodically for & quot ;the alien resident and the fatherless
boy and the widow. &quota; Later the origin of credit insurance, which was included in the Code
of Hammurabi, a collection of Babylonian laws said to predate the Law of Moses. Credit
insurance means, in ancient times the ship owners

obtained loans from investors to finance their trading CC pay back the loans to the investors.
The risk to the lenders was covered by the interest paid by numerous ship owners, since many
ships returned safely. By the middle of the 14th century, marine insurance was one of the most
popular types of insurance among nations of Europe. Things changed dramatically in the 17th
century in Europe. In 1666, the Great Fire of London bought the need for fire insurance. The
Great Fire of London burned for four days and nights. It destroyed 436 acres, 13,200 houses, 89
churches (including Saint Paul's Cathedral), the Custom House, the Royal

15
Exchange and dozens of other public buildings. Only six people were victims in the flames, but
hundreds died from shock and exposure.

By 1688, Edward Lloyd was running a coffeehouse in London. Where, London merchants and
bankers met informally to do business. There financiers who offered insurance contracts to
seafarers wrote their names under the specific amount of risk that they would accept in exchange
for a certain payment, called premium. These insurers came to be known as underwriters.
Finally, in 1769, Lloyd's became a formal group of underwriters that in time grew as an
insurance company.

The concept of insurance developed at a fast pace with the growth of British commerce in the 17
th and 18 th century. The first stock companies to engage in insurance were chartered in England
in the year 1720.

In 1735, the first insurance company in the American colonies was founded at Charleston. Later
in the year 1787, fire insurance corporations were formed in New York.Then later in the year
1759, the life insurance corporation was started in Philadelphia, America. The New York fire
which occurred in the year 1835 was the main reason to draw attention to create reserves to meet
unexpected losses. In the year 1837, Massachusetts was the first state to require companies by
law to maintain such reserves. After 1840, life insurance entered a boom period. The
Workmen's Compensation Act of 1897 in Britain required employers to insure their
employees against industrial accidents. Public liability insurance, fostered by legislation, made
its appearance in the 1880s.It attained major importance with the advent of the automobile.

Until the 1950s, most insurance companies in the United States were restricted to provide only
one type of insurance, but then legislation was passed to permit fire and casualty companies to
underwrite several classes of insurance. Many firms have since expanded and also were
responsible for many mergers.

From this brief accounting of history we can see how insurance came into existence. Fortunately
for us we no longer have to sell ourselves into slavery if our car is stolen nor we have to be
scared of losses due to absence of reserves. However we can be confident that we will be
compensated for our loss. Without people wanting to secure their investments and great tragedies
throughout history we may not have insurance as we know it today resulting in peace of mind.

16
6. HISTORY OF INSURANCE INDUSTRY IN INDIA

The insurance industry in India over the past century has gone through big changes. In India this
industry reveals the 360 degree turn. 360 degree turn means that it started in India from being an
open competitive market to nationalization and back to a liberalized market again. Insurance
industry in India started as a fully private system with no restriction on foreign participation in
the Nineteenth Century. Before independence, a few British insurance companies dominated the
Market. Life insurance was first set up in India through a British company called the Oriental
Life Insurance Company in 1818, followed by the Bombay Assurance Company in 1823 and the
Madras Equitable Life Insurance Society in 1829.All of these companies operated in India but
did not insure the lives of Indians. They were there insuring the lives of Europeans living in
India. Some of the companies that started later did provide insurance for Indians. But, they were
treated as & quot; substandard &quot ; and therefore had to pay an extra premium of 20% or
more. The first company that had policies that could be bought by Indians with &quantifier value
" was the Bombay Mutual Life Assurance Society starting in 1871. The first general
insurance company, Triton Insurance Company Ltd., was established in 1850. It was owned and
operated by the British. The first general insurance company was the Indian Mercantile Insurance
Company Limited set up in Bombay in 1907.By 1938; the insurance market in India had nearly
176 companies (both life and non-life). After the independence, the industry went to the other
extreme. It became a state-owned monopoly. The industry started to witness a problem like
fraud. Hence many regulations were put in place to reduce and control the

problems in the industry. After which Insurance was nationalized. In 1956, the then finance
minister S. D. Deshmukh announced nationalization of the life insurance business and then the
general insurance business was nationalized in 1972. Only in 1999 private insurance companies
have been allowed back into the business of insurance with a maximum of 26% of foreign
holding.

17
 DEFINATION

Legal Definition of Insurance

1. the action, process, or means of insuring or the state of being insured usually against loss
or damage by a contingent event (as death, fire, accident, or sickness).

2. a: the business of insuring persons or property b: coverage by contract whereby for an

agreed payment one party agrees to indemnify or guarantee another against loss by a
specified contingency or peril c: the principles and practice of the business of insuring.

3. the sum for which something is insured.

BASICS OF INSURANCE
IRDA {Insurance Regulatory and development Authority of India} It is a
regulator for Insurance companies in India.

In 1993 Malhotra Committee was setup to recommend change for

development of the industry {IRDA act passes on 1999}

It started operation as a statutory body from April 2000 and it has been
subsequently renamed as IRDAI in 2014.

24 companies {life insurance is not under purview of

IRDA. IGMS; Integrated Grievance Management System
[Grievance Redressal Mechanism]

18
 COMPANY PROFILE

Since July 14 2016, the day we were founded, integrity has been our core value. We at ―The
Capital Box‖ design personal solutions to protect our clients‘ unique lifestyles and offer lasting
peace of mind. We strive to build long-lasting relationships with clients through attention to
detail and commitment to superior service. We provide unparalleled consulting services,
financial products and risk management strategies to individuals, families and businesses,
specializing in niche markets and portfolios with complex needs.

we firmly believe that it all starts with having a clear vision of your unique goals. With this
clarity, we combine objective advice and experience-led execution to bring the collective vision
to life. We offer every client true peace of mind. We define peace of mind as a deeply rooted
confidence that comes from feeling in control and knowing your financial plan is built on a
foundation of increasing self-knowledge and awareness. It is at this critical juncture – the
intersection of proactive planning and peace of mind – that we believe our clients have the
highest potential to realize their goals.

COMPANY OVERVIEW

Max Life Insurance is a part of the Max India Ltd. Group and is India‘s largest non-bank private-
sector insurer, which focuses on creating both online and

offline channel where customers could buy policies without any intermediaries in a safe and
secured manner. It is a joint venture between Max Financial Services and Mitsui Sumitomo
Insurance Company. The former owns 68% of the company while the latter owns 26%. After
forming the joint venture partnership with Mitsui Sumitomo, Max Life changed its name from
Max New York Life in 2012. In February 2016, Axis Bank held a 6% share in Max Life.

19
Products and services

Max Life's distribution channels include banks, individual agents, brokers, and corporate agents,
among others. It provides linked, participating and non-participating products. Apart from life
coverage, it also covers health, pension, and annuity. It offers child, protection, retirement,
savings, and growth plans to individuals and to groups.

20
Advertising campaigns

Max Life Insurance has carried out several advertising campaigns. A few prominent are:

•
Second Chance – Launched in January 2015. The campaign had two videos where people
spoke about how life gave them a second chance. The campaign was created to spread
awareness about the importance of protection through life insurance.

Sac-chi Advice – Launched in August 2015 through the TVC medium, the campaign
aimed to highlight the company's focus on providing transparent advice to all of its
• customers.

21
 FOUNDER CHAIRMAN OF MAX GROUP

This Phot o by Unknown Author is licensed under CC BY -SA-NC

Analjit Singh (born 11 January 1954) is the founder chairman of Max Group, a conglomerate
with interests in life insurance, healthcare, and real estate. He is also the founder of Leeu
Collection, an international collection of boutique hotels. He was also the Non-Executive
Chairman of Vodafone India

22
HIS CAREER:

Singh served as the chairman of Vodafone India from February 2012 to August 2018. He has
been the key spokesperson of Vodafone in India and was the main representative of the company
during the Vodafone's retrospective taxation controversy with the Government of India.

Singh is founder of Leeu Collection, an international collection of boutique Hospitals in South

Africa, Europe and Asia.

Singh serves on the Founder Executive Board of Indian School of Business. He is the patron of
Max Institute of Healthcare Management, one of the partner institutes at the ISB's Mohali
campus. He served as Chairman of Mohali Campus Advisory Board of ISB.

23
He is on the Board of Sofina SA, a Belgian holding company, headquartered in Brussels which
invests in several industrial sectors.

He served on the board of Tata Global Beverages and resigned in December 2016. He had voted
against the resolution moved for Cyrus Mistry's ouster as Chairman of the company. In his
resignation letter he said that he lamented at the overall lack of transparency surrounding the
sacking of Cyrus Mistry.22
He served as the Chairman of Indian Institute of Technology (IIT)-Roorkee, from 2011 to 2014.
He serves on the Prime Minister's UK-India CEO Forum, where he is the co-chair of Ease of
Doing Business Committee along with Sir Martin Sorrell, CEO of WPP plc. He has also served
as a member of Prime Minister's Indo-US CEO Forum. He has served as Chairman of
Confederation of Indian Industry's (CII) national committee on insurance and pensions.

Some of the company‘s key competitors are:

• Bajaj Allianz General Insurance • Life Insurance Corporation

• ICICI Prudential Life Insurance

• HDFC Standard Life Insurance Company Limited.

24
 THE PROMOTERS

Group entities have become the co-promoters of Max Life Insurance following the acquisition of
a 12.99 percent stake in the insurance firm.

The two subsidiaries, Axis Capital Limited and Axis Securities Limited, together with the bank--
are now the co-promoters of Max Life Insurance after completion of the acquisition of 12.99
percent in Max Life, the bank said in a release.

The board of Max Life recorded the closure of the deal on April 6, the bank said, adding that
following the development, Max Life‘s board will be recast with three Axis nominees.

Further, the Axis Entities have a right to acquire an additional stake of up to 7 percent in Max
Life, in one or more tranches, subject to regulatory approvals.

The transaction was completed after the Insurance Regulatory and Development Authority of
India (IRDAI) gave its formal approval in February this year Private sector lender Axis Bank on
April 6 said the Axis.

25
 VISION OF THE COMPANY

Our vision as a firm focuses on helping others achieve financial goals, as well as
understanding of each client‘s unique purpose, mission and values. We strive to
empower clients by offering education, tools and resources aimed at facilitating
clear communication and bringing definition to their ambitions and objectives.
Each client has different ideas about what makes life great. We take the burden out
of managing the financial details so clients can enjoy life‘s journey and live out
their unique purpose. We strive to be a force of calm, a navigator in the face of
anxiety and uncertainty that all too often accompany financial success.

MISSION OF THE COMPANY

Our mission is to help individuals, families, and small businesses embrace the
responsibilities of living their goals and dreams by designing, implementing, and
monitoring financial strategies consistent with their core values.

26
 CHAPTER – 2 DEVELOPMENT OF MAIN THEME NEED OF THE
STUDY

This study helps the company to identify its competitive position among its industrial
competitors by which the company can further improve its performance to enjoy high reputation
among clients. This study also helps in making necessary changes in the attributes of the
insurance cover offered by the company so that the customers can enjoy the benefits of the
insurance cover. The need for the study also arises to identify and offer additional insurance
products according to the expectations of the customers.

27
REVIEW OF LITERATURE

28
 REVIEW OF LITERATURE

According to the recent report of Lloyd, the Indian insurance market is likely to change in
the next few years significantly largely due to regulatory changes. In addition, premium
growth is being driven by other factors such as the growing consumer class, increased
foreign direct investment, infrastructure development, and an increased awareness of
catastrophe exposure. Despite significant positive changes, the insurance market must
still face the challenge of poor customer perceptions and the danger that the pace of
reform will slow. Several significant structural changes are expected in the insurance
market that will influence the country‘s development in the medium to long term So far,
the entry of a large number of Indian and foreign private companies has led to greater
choice in terms of products and services for Indian consumers. A growing realisation of
the benefits and importance of sophisticated insurance and reinsurance tools has
broadened the pool of potential buyers of insurance. Given this backdrop, the Indian
insurance market has experienced considerable growth since its liberalisation in 2000.
Over the next three years, the Indian insurance market is likely to see its process of
maturation accelerate. Regulatory changes in the four areas– products, market players,
distribution and reinsurance – will drive change in the Indian insurance market in the
medium term.

Price competition has already begun to increase and is likely to continue to do so for the
next 18 to 24months.

The practice of cross-subsidisation is likely to be phased out as risk-based pricing is used

increasingly for all products.

As Indian insurers build a profitable portfolio, they are likely to have increased access to
the international reinsurance markets.

Finally, rising demand for insurance is likely to be met by increased capacity as foreign
insurers look to access this growing market.

29
As per the recent research by Moody‘s – ICRA Global Insurance, the following facts
relating to the performance of both private and public sector general insurance companies
were made. Private Sector‘s Growing Influence The private sector has been steadily
growing market share despite the fact that public sector companies have been around for
a lot longer. The private insurers enjoy considerable operational flexibility, whereas the
public sector companies have been constrained by their traditions and inability to
innovate. Market Share – Redistribution Due to the effectiveness of private marketing
strategies, the market share of public insurers has consistently declined. Given a faster
growth rate, the market share of the private sector is catching that of the public sector and
the two will likely converge over the medium term. The private sector share of third party
motor business was much lower in the past than for public firms as the former did not
pursue this market because of its negative underwriting margins. However, with the
formation of the common third party motor pool, the situation has changed. The losses
related to this segment now get shared among all the players, leaving little incentive to
avoid this segment. Fire and engineering now broadly contribute a similar proportion of
overall business for the private and public sectors. In terms of overall business, the focus
has shifted towards the retail segments of motor and health, where good growth is
expected.

Operational Flexibility The public entities lack the operational flexibility enjoyed by the
private players. Their Limited capacity to innovate has impacted their ability to tailor and
aggressively price products for large corporations. The private players by contrast have
focused on account-level profitability for large corporations and have expanded their
shares by cross-subsidizing tariffed products.

30
Client Servicing

The public insurers have also been hampered in claims servicing by their process oriented
approach and limited operational flexibility. They have been unable to expedite claim
settlements through out-of-court negotiations since

a large proportion of their claims pertain to the third party motor segment, which is
subject to adjudication by the Motor Accident Claim Tribunal. The result is a time-
consuming and involved process.

Strong Infrastructure and Systems

Private players are not hindered by their charters or legacy systems and have constructed
technologically advanced infrastructure. They started with large investments in
technology, which helped them to build robust data management systems. This
characteristic enables in turn quick and effective decision-making for pricing and claims
settlements, attributes vital to building franchises. On the other hand, public entities have
only recently upgraded their systems and have to grapple with transition issues, such as
moving from paper to paper-less systems. They are encumbered by legacy systems and
fragmented databases, and have not fully used their past claim experiences, something
which could give them a strong pricing edge in a de-tariffed environment.

Focused Underwriting Strategy

The private players, especially during their initial years, have selectively targeted the
more profitable lines of the public sector companies for growth. They benefit from the
experiences of the public sector as well as their international joint-venture partners. They
have drawn talent from public sector companies.

31
 Choose the Best Life Insurance Policy in India for
Adequate Coverage

Choosing one of the types of life insurance policies in India is not easy. It is because the decision
forces you to think about the unfortunate events that may occur in your life. Then, there is a
financial aspect of investing in various types of life insurance plans .

You might have assumed you need to choose a life insurance policy in India from the array of
available variants. However, the decision of the insurance policy must depend upon how much
life cover you need.

For instance, if you want to ensure financial security of your family in your absence, then you
need to purchase a term insurance policy, after carefully evaluating the financial needs and
various factors relating to the insurance policy .

Things to Think Before Buying Life Insurance

As your responsibilities grow, it becomes increasingly important to protect the current and plan
for the future. Life Insurance is an effective financial planning tool that provides multiple
benefits ranging from Protection, Savings, Tax Benefits, etc. But before you purchase a life
insurance policy, it's important to be well equipped to choose a plan that meets your needs and
requirements.

Keep these 5 things in mind as you go about your life insurance buying decision:

32
1. Buy for the Right Reason

Understand the purpose of buying insurance. Remember that you are buying insurance to plan
for some specific goals, cover your life and safeguard the financial future of your dependents. Do
not buy insurance only for secondary benefits like tax savings.

2. Amount of Life Cover

The premium amount is generated based on the life cover amount that you opt for. As a rule of
thumb, You should have a life insurance cover of at least

10 times your annual income. You can also use our premium calculator to arrive at a premium
estimate.

3. Policy Tenure

The ideal tenure of your Life Insurance Policy should be your ‗Retirement Age minus your
Current Age‘. This means that if you are currently 35 years old and wish to retire by the age of
65, your policy tenure should be 30 years or more. Popular term plans like Max Life Smart
Term Plan (UIN: 104N113V04; A Non Linked Non Participating Individual Pure Risk
Premium Life Insurance Plan) also offer long term life insurance cover until age 85 years.

4. Additional Coverage & Benefits

Add-ons are additional benefits along with the base cover, such as critical illness rider,
accidental death benefit rider, waiver of premium rider, disability rider, etc. These are
beneficial additions which can be opted for by paying nominal premiums.

33
5. Credentials of the Life Insurance Company & its Claims Experience

Before buying a life insurance policy, it's important to assure yourself about the credentials of
your chosen life insurance company.

1. Claims Settlement Ratio - This refers to the no. of claims paid by an insurance
company for every 100 claims that were registered. At Max Life,

99. 22% individual death claims paid in FY'19-20 (Src. As per Audited Financials FY 19-20).

2. Assets Under Management (AUM) - This refers to the current market value of the
funds managed by the financial services company. A higher AUM suggests that the portfolio
is strong and performing well.

3. Solvency Ratio - This is a ratio used to measure the financial stability of a company. It
reflects the company‘s ability to settle its long-term debts. A higher solvency ratio means that a
company is comfortably placed to pay out claims. Max Life has a solvency ratio of 207%, more
than 1.38 times the mandatory 150%, which indicates our strong and stable financial position. In
addition to these, excellence in customer service, reviews and corporate governance practices
give vital information about the overall performance of the company. Read more to learn about
Max Life as an organization. Also, you can go through the different types of plans offered.

34
 SWOT ANALYSIS OF MAX LIFE

The SWOT Analysis of the largest broadband communication company in the United States,
Spectrum. Here we will understand the SWOT Analysis of Max Financial Services.
Max Financial Services Limited (MFS), a piece of the Max Group, is the holding organisation for
Max Life, India‘s biggest non-bank, private life insurance organisation. Max Financial Services
Limited has been recorded on the Bombay Stock Exchange as well as the National Stock Exchange.
The organisation‘s financial backer base incorporates marquee worldwide monetary foundations, for
example, KKR, Baron, Wardship, New York Life, Vanguard, Blackrock, Jupiter, Norges, Neuberger
Burman, Eastspring, and Dimension.

Another aspect that made Max Financial Services the massive it is now, is its marketing efforts.
As the world goes online, marketing is changing and if you are curious in learning about the
latest – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of
IIDE, Karan Shah. In this case study, we will learn about the SWOT analysis of Max Financial
Services. But first, let us know about the company and the product better.

Product In the insurance of Max

Choosing from the different types of life insurance in India is a crucial financial decision, as it
helps you protect your loved ones from life‘s uncertainties. Still, you may not be fully aware of
the types of life insurance policy in India and how they affect your financial health. Let‘s check
the types of life insurance and their benefits in detail below.

35
Following are the types of life insurance available in India:

Term insurance

•
Term insurance with return of premium
Unit Linked Insurance Plans Endowment
• plans
•
Moneyback policy
•

Whole life insurance

•

•
Group life insurance

• Child Insurance Plans

• Retirement Plans
•

Let‘s dig deeper into these categories to understand how to choose one of the types
of life insurance policy in India.

36
 1. Term Insurance Plan

The term insurance plan is one of the most sought-after types of life insurance policies in India.
This is one of the types of life insurance policy in India that you can buy for a specific period of
10, 20, 30 or more years, hence the name.

While some other types of life insurance policy offer maturity benefits, term insurance does not.
It is one reason why term insurance, being the best insurance policy in India, is comparatively
cheaper than other types of life insurance schemes.

Term insurance is pure life cover, unlike other types of life insurance policies which have a
saving component. You can also opt for a significant life cover at a lower premium as compared
to other types of life insurance policy which are costlier but have built-in saving components.

37
 2. Term Insurance with Return of Premium

A term insurance plan is amongst the types of life insurance policies that provides a death benefit
but no maturity benefit.

If you live a healthy lifestyle, the probability that you will outlive the best insurance policy in
India you have bought also increases. For you, among the many life insurance types, a term
insurance with return of premium is one of the best insurance policy in India, which also give
you maturity benefits.

It is one of the types of term insurance plans that give back the premiums you pay on surviving
the policy period. Besides, you can easily calculate premium for term insurance using an online
term insurance calculator.

When you calculate premium for term insurance, you get a clear understanding about your
unique requirements, explore rider options, and also choose your policy term. Doing so helps
you ensure that you are investing in the most suitable types of life insurance policies for yourself
and your family. If you want to support long term goals in life, for example, you could opt for a
whole life insurance, and the factors to be considered here will be different. Keep in mind that
your age and personal needs determine

38
 3. Unit Linked Insurance Plan (ULIP)

You may face a dilemma in life about choosing between any of the two options – investment or
insurance.

A ULIP is one of the types of life insurance policies in India that fulfill both these aspects.
Amongst different types of life insurance, it is the one that offers life cover along with
investment opportunities. Being one of the types of life insurance, it has a lock-in period of five
years, which makes it a longterm investment instrument that comes with risk protection. ULIPs
also allow you to balance your funds as per market dynamics.

Let's walk through the 6 top features of Unit Linked Insurance Policies which you should explore
before making the purchase:

1. Flexible investment options

ULIPs offer a whole host of high, medium and low-risk investment options via different fund
available under the same plan. You can choose an appropriate plan according to your risk-taking
appetite.

ULIPs provide the flexibility to choose either the sum assured or the premium based on your
needs. They also provide the flexibility of increasing your investment portfolio through top-ups
to make the most of investment opportunities due to any change in the external environment or
your own income flows.

2. Transparency

39
The charge structure, value of an investment and expected rate of returns, for the complete tenure
of the policy are shared before you buy a product. It's always a good idea to understand the
product you would be investing your hard-earned money into.

Similarly, the annual account statement & quarterly investment portfolio along with the daily
NAV reporting will ensure that you are aware of the status of your investment portfolio at all
times.

3. Liquidity when you need it

In case of any unforeseen future events, ULIPs also let you do a partial withdrawal; wherein after
the first 5 years, you can withdraw funds from your Unit Linked Insurance Plans.

4. Disciplined and regular savings

ULIPs help you inculcate a regular saving habit, which goes a long way in building a corpus for
future needs.

5. Tax benefits

The premiums paid towards the policy are exempt from tax under section 80C. of income tax
Act, 1961.

6. Spread of risk

With ULIPs, you get the benefit of market-linked growth without actually participating in the
stock market, not to mention the added benefit of lifecover.

40
 4. Endowment Policy

Endowment policies are one of the types of life insurance policies that provide you with the
combined benefit of life insurance and savings. Along with giving you the life cover, these types
of life insurance help you save money regularly over a period to get a lump sum at maturity.

What makes them one of the most useful types of life insurance policies is that they help fulfill
long-term goals in life. You will also get the maturity amount if you survive the policy tenure.

Endowment policies, being one of the most appropriate types of life insurance plans, also help
you create a financial cushion for your family to meet various financial objectives in life.

5. Money back Policy

The purpose of investing in the insurance policy in India for your loved ones can be to create
wealth over an extended period. However, most of the types of life insurance do not provide any
provision to get funds before their tenure ends. It is where a moneyback policy plays a vital role
in solving the problem of liquidity. As the name suggests, moneyback policies are one of the
popular types of life insurance policies in India that give money back regularly. It pays a
percentage of the assured sum throughout the policy tenure, unlike other types of life insurance
plans that offer no returns till maturity.

41
 6. Whole Life Insurance

As a life insurance policyholder, you get the benefits depending on the types of life insurance
policies you have chosen. What distinguishes a whole life insurance plan from other life
insurance types is that it provides insurance coverage to the insured for the entire life, up to 100
years of age.

Typically, the death benefit, under a whole life insurance, is payable to the beneficiary in the case
of the untimely demise of the policyholder. On the other hand, you are eligible to receive a
maturity benefit under a whole life insurance policy if you cross 100 years of age.

Another significant feature of such whole life insurance plans is that some offer the option to pay
premium for the first 10-15 years while you get the benefits for the entire life.

7. Group Life Insurance

Just like group health insurance, group life insurance is one of the types of life insurance policies
that covers a group of people under one master policy. Such life insurance types are generally
provided as part of an employment benefit.

A unique feature of these types of life insurance products is that you will get the insurance cover
if you remain a part of the group. It is different from the individual types of life insurance plans
in which the coverage continues throughout the chosen policy tenure.

42
 8. Child Insurance Plans

When it comes to life insurance types, a child plan is an investment+insurance plan that helps
you meet your child‘s financial needs. A child insurance plan will help you create wealth for
your child‘s future needs like education.

You can start investing in these plans from the birth of your child. You get the flexibility of
investing your hard earned money into several funds on the basis of your financial condition and
goals in mind.

9. Retirement Plans

Retirement Plans are amongst the types of life insurance policies that provides financial security
and help you with wealth creation after your retirement. With Retirement Plan, you will get a
sum of money as pension in the vesting period. In case of your untimely demise during the policy
term, your nominee will get the death benefits. Retirement Plans comes with death

benefit as well as vesting benefit providing protection to you and your family
members.

43
44
How to Buy Life Insurance Policy in India?

The ultimate purpose of buying any of the types of life insurance plans in India is to provide life
cover to you and financial protection to your family members. To make sure that you have the
best possible insurance coverage, you can first calculate premium for term insurance using term
plan calculator. When you calculate premium for term insurance, you get a overview of what you
insurance plan looks like, what customization or add-on options are available, as well as realize
your affordability – all of this helps you invest in the best types of life insurance policies, be it
whole life insurance or term insurance, to name a few. While you calculate premium for term
insurance, you just need to follow a few easy steps, and you get an understanding about what
premium you need to pay, then you can compare plans, and choose the best one. With insurance
policy in India adorning your portfolio, you can ensure that your family members receive the sum
assured as defined under the policy terms.

MARKET SEGMENTATION

Max Life Insurance always has believed in having a very balanced product mix and we look for a
little over 40% ULIP and 60% traditional product designs which is consistent with our product
mix in the last couple of years. This year also it was similar. We have not seen any drastic
change in our product mix but for industry, especially private industry, because of volatility in
stock market, there was a marginal reduction in ULIP sales across the industry.

One would hope that once the base settles, you would start to see upward growth. However, the
growth in life insurance industry, which is closely linked to the savings rate and hence closely
linked to the GDP growth rate, on a sustained basis, should grow between 12% and 13%. 20%
was an outcome of a few artificial things with respect to formalisation of savings that took place.

The way we sell ULIPs and the kind of fund choices that we make and with quality of advice
that we enjoy with our agent advisors as well as our

45
partners, insurance is a long term product design. If sold well, the value of ―long term‖ would
ensure that there is no drastic reduction in sales. We are very happy to share that we have seen
growth across all categories including ULIPs.

What would the focus area going forward?

The focus will remain on keeping the product mix balanced. However, there is a focus towards
driving protection a bit more. For the first nine months, the outlook is growth of 7% for the total
products and for protection products a growth of about 29-30% is seen.

We want to continue to raise that and hopefully in two to three years‘ time, we would like to
have our product mix going upwards of about 11-12% through protect ..

There is a bit of focus with respect to non par also but overall, we are looking at a drastic change
in product mix. There will be a focus on building distribution, continued focus on our own
channels, looking at customer related outcomes and focussing on persistency.

With respect to product, there would be marginal shifts. There is just one point that I would like
to make which is the new product guideline that is expected from the regulator. It will come
early next year or early this year. There are some very positive outcomes expected from the new
product guideline and we will review that and very quickly like to align which may also give
flexibility as well as more allowances with respect to retirement segments, new riders as well as
a flexibility to tweak the ULIP design. That will be the overall objective with respect to products.

You are one of the few insurance companies in India which makes money. Do
you think that in the next two to three years, the number of players will come
down by 25%? Would you be acquired or acquire somebody?

46
Let me just first clarify that there are 24 players in the industry and the top 10 are doing pretty
okay. The bottom few maybe struggling with respect to the sales growth. However, growth is
coming across the board. My sense is that of the 24, more than 20 are growing. They may be
small in size but

they are growing and it will take some time for all the players to come to our level. We are
number four player in terms of the size of new sales and bid to merge with HDFC had nothing to
do with any such risk.

We are number four and the other company where we were going to merge was number three. It
was planned to be a marriage of two very large players to seek objectives of economies of scale.
There was nothing to do with being acquired or acquiring. Axis and we share a very positive
relationship. We have done more than Rs 10,000 crore of sales and we will figure out a way of
creating a win-win for both the partners.

So let us leave it. At this point of time I am very happy with where Max Life is, very happy with
the growth and our momentum just continues.

Open architecture has been proposed by the regulators, especially in the distribution end. How
will that change life for Max given that other players in industry have banks backing them and a
distribution which was given to them?

Open architecture is a very strategic decision and that regulation came about five years years
ago. It came in 2013. Open architecture in India is not mandatory, it is optional. While some
players have chosen it, a large number of players have not chosen it. As the market evolves, large
distributors will follow the path of open architecture by creating more options to the customers.
It will be a market reality and if the regulator were to push for mandatory open architecture, in
addition to the risk, there will be opportunities that Max Life will be going for.

47
OBJECTIVES OF THE STUDY

48
 Objective of the Research

How does an insurance policy work?

Insurance policies are often in place for a specific period of time. This can be referred
to as the policy term. At the end of that term, you need to renew the
policy or buy a new one. When you buy an insurance policy, part of your responsibility includes
paying a fee called a premium. Some premiums are paid monthly, like health insurance. Others
may be paid once or twice a year, like auto or homeowner‘s insurance. The cost of your premium
generally depends on how much of a risk you are to the insurance company. In addition to the
premiums, most insurance policies include a deductible. That‘s the amount you have to pay first,
before the insurance company pays their share. For example, if you have a $500 deductible on
your homeowner‘s policy and a storm causes $3,000 in damage, you will pay $500 and your
insurance company will pay $2,500. With some policies, you can choose your deductible.
Usually, a higher deductible means a lower insurance premium. The functions of Insurance can
be bifurcated into three parts;

1. Primary Functions

2. Secondary Functions

3. Other Functions

49
The primary functions of insurance include the following;

• Provide Protection

• Collective bearing of risk

• Assessment of risk

• Provide certainty

The secondary functions of insurance include the following;

• Prevention of losses

• Contribution towards the development of large industries

The other functions of insurance include the following;

• Means of savings and investment

• Source of earing foreign exchange

50
Concept of life insurance

Know for: Risk transfer or risk pooling.

Purpose: Protection of economic value of an Assets.

Risk: Dying too early & living too long.

“Insurance is the method of sharing the losses of few by money.”

Risk Retention: One decide to bear the risk and its8 effects.

RISK TRANSFER
POOLING LIVING RISK TRANSFER TO COMPING
AS RISK
RESTRICTION.
SHARING THE RISK WITH COMPANY.

EVERY PLANNING EVERY POLICY HAVE SOME

HLP=ALL ASSESTS – ALL LIABILITIES – ALL PLAN

51
 CHAPTER 3

Research and methodology

52
ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT

Insurance directly or indirectly plays a vital role in the economic development of the
country through the following means;

• Life insurance is a major instrument in mobilizing the saving of the people. These
saving are channelled into investments for economic groups.

• The strength of life insurance is in the fact that huge amounts are collected and
pooled together for the benefit of the policy holders.

• The insurance company is the role of fiduciary that all decision be made for the
benefit of the community.

STATEMENT OF THE PROBLEM

Project title;

• ―AN ONLINE STUDY OF CUSTOMER PERCEPTION TOWARDS MAX

LIFE INSURANCE PRODUCT IN NOIDA ―

53
 RESEACH METHODOLOGY

To proceed with the research work in a structured way certain methodology is used so as
to yield exact and correct result form the study. The methodology adopted by me is as
follow;

Types of research design used:

Research designs are concerned with turning the research question into a testing project.
The best design depends on research question. Every design has its positive and negative
sides. The research design has been considered as a ―blueprint‖ for research dealing with
at least four problems; what data are relevant, what data to collect, and how to analyze
the result.

For my study I have used Descriptive Design because Descriptive Research Design is a
method in which involves observing and describing the behaviour of a subject without
influencing it anyway.

54
DATA INTERPRETATION

AND ANAYSIS

55
Method of Data Collection;

For completing my study I needed both primary and secondary data.

Source of primary data: primary data is to be collected through survey and the tool used
for survey is questionnaire which consisted of closed-ended questions and questions
based on likert scale. Personal interview of some respondents would be also conducted to
know their perception towards the company.

Source of Secondary data: The data which has been collected by someone else and
already passes through statistical process. This data was collected from the internet, The
company‘s broachers were of a great help, and other source were also used.

Method of sample selection:

Typically, the population is very large making a census or a complete enumeration pf all
the values in the population impractical or

56
 impossible. The sample represents a subset of manageable size. Samples are collected
and statistics are calculated from the sample so that one can make inferences or
extrapolations from the sample to the population. This process of collecting information
from a sample is referred to as sampling.

The method of sample selection from population adopted by me is Stratified Random

Sampling because for my survey results to be successful I needed respondent from upper
middle-income group and higher income group who already are owner of air-conditioners
and have a strong understanding about different companies are their product.

Sample size and area of study:

The survey is being conducted in the city of Noida. The sample size is seventy-five (75)
has been selected. The places being visit are banks, few market place, parks and colleges.

Analytical Tools used:

The tools used for summarizing the data collected and to interpret the results are:

• Bar Graphs

• Histograms

These tools helped in easy understanding of the data and are useful to the company for taking the
desired decisions on various aspects.

57
58
DO YOU LIVE IN JOINT FAMILY?

Column1

YES

N
O

This shows that most of people live in joint family almost near about 8.4%.

59
NUMBER OF MEMBER IN THE FAMILY?

4.5

3.5

2.5

1.5

0.5

0
2&4 4&6 ABOVE 6

Series 1 Column2 Column1

Due to there is no joint family number of people in the family varies and 2&4.
Most of people live with 2&4 family members.

60
BIGGEST CONCERN FOR FUTURE

50%
45%
45%

40%

35%

30%
30%
25%

20%

15%

10%

5% 15%

0%
10%
Child Child marriage Medical

This shows that people‘s future concern towards retirement rather than child
education, medical and child marriage.

61
DO YOU HAVE ANY INSURANCE POLICY?

20%

YES NO

80%

Figure 3.4
This graphical presentation shows that most of people have an insurance plan.

IN WHICH COMPANY?

62
60%

52%
50%

40%

30% 28%

20%

12%
10% 8%

0%
LIC ICICI MAX life insurance Others

63
 Figure 3.5

This shows that people are more loyal towards LIC rather than other
insurance agencies.

WHICH PRODUCT?

35%
32%

30%
28% 28%

25%

20%

15%
12%

10%

5%

0%
General Plan Medical Child Plans Others

Series 1

Figure 3.6

This shows that at the present scenario people want to purchase child plan other
than other plan.

DO YOU LOOK AFTER COMPETETION WHEN YOU PURCHASE A

PRODUCT?

64
 4%

96%

YES NO

Figure 3.7

If we talk about the competition before the purchasing of the insurance product is
very high.

65
WHICH FACTOR OF THE FOLLOWING YOU WILL BE CONCERN ABOUT
WHILE YOU ARE PURCHASING A PRODUCT?

60%

52%
50%

40%

30%

20%
20% 16%
12%
10%

0%
Allocation Fund Management Fund Administration All of the above

Figure 3.8

This shows that people want to purchase an insurance product because of its all
the above attribute. That mean people want to purchase a polices which have all
attributes which is given in the option.

66
DO YOU THINK MAX LIFE INSURANCE HAVE A BETTER INSURANCE
POLICY THAN OTHERS?

85
90
80
70
60
50
40
30 15
20
10
0

YES NO

Figure 3.9

From the graph when we have asked to the people that is max life
insurance have better policy than other then most of people say ―No‖
approximately 85% answers were ―No‖.

67
WHICH INSURANCE COMPANY HAS BETTER INSURANCE PLAN?

60%

52%
50%

40%

30% 28%

20%

12%
10% 8%

0%
LIC ICICI Max Life Insurance Others

Figure 4.0
When we talk about the best insurance policy provider than the most of people give
his vote in favour of LIC then ICICI and in the favour of max life is just 8%.

68
IF MAX LIFE INSURANCE GIVE YOU BETTER INSURANCE POLICY
THAN, YOU CAN SHIFT TOWARDS MAX LIFE INSURANCE?

80%
72%
70%

60%

50%

40%

30% 28%

20%

10%

0%
YES NO

Figure 4.1
With the help of graph which shows the brand is not possible in the case of max life
just because people are more brands loyal towards their own brand.
WHICH RANK WOULD YOULIKE TO GIVE TO THE MAX LIFE
INSURANCE?
RANK

Max Life Insurance Others

Figure 4.2

69
This shows that very less people give the highest rank i.e. first rank is only 12%.

WOULD YOU LIKE TO JOIN MAX LIFE FOR THE PART TIME JON AS A
LIFE ADVISOR?

120%

100%

80%

60%

40%

20%

0%
Part-Time Job

YES NO

Figure 4.3

With the help of graph the interpretation about the part time job in max life
insurance as a life advisor very less people was interested in this. 96% people
answered no and only 3 people say out of 75.

70
 3.5 SUGGESTIONS

1. Consumer should be aware of company‘s profile and returns associated with insurance.
2. The Financial advisor should be right enough to serve the consumers. The consumer should also
be aware of the advisor or others who is looking after their investments.

3. Company should publish their performance by comparing it with their

competitors.
4. Company should adopt strategies to explore that private insurance
companies are safer and securer than public insurance company like LIC.
5. Middle income people suggest that premium can be collected on monthly
basis instead of twice a year.
6. Company‘s reputation is more important because bad impression on image
or brand name is considered while decision making among consumers.

71
 CHAPTER 4

FINDING, CONCLUSION AND

RECOMMENDATIONS

72
 4. CONCLUSION

Based on the findings it can be said that there is very bad response from the survey shows that in
the present scenario Max Life is a very far from his competitors. But there are lots of scope of
growth in insurance market due to rising level of disposable income of individuals and unsecure
future of customers and in addition to these factors the present climatic condition have made a
perception among customers that insurance are necessity products just as bank account and loan
or any financial scheme etc.

The main factor that customers to purchase insurance product are correct policy for correct
customer according to his/her pocket weight and excellent after sales service and as far as star
ratings are concerned, network and unique selling proposition.

MAX LIFE INSURANCE in the scenario, has a fair image in the minds of customers, though
some customers think that MAX LIFE INSURANCE was primarily concentrating on high class
people and now they are concentrating on level of market or mass market, but still have a trust
over the brand name of Max, and if it continuously upgrades its products and service then it can
surely become the successful insurance policy provider company.

73
 FINDINGS

Based on the data which is presented in chapter III and the personal interviews of few
respondents from the whole sample size here and the results which are drawn from the
interpretation of data.

Majority of people recognised the max life insurance and recalled its advertisement but
still there is a lot of scope of improvement and brand name of THE CAPTIAL BOX
associated with MAX LIFE INSURANCE gives customers more trust and I found out
that many respondents are not aware that MAX LIFE INSURANCE is a MAX product.

People perceive insurance as necessity and still a very large segment of middle-class
segment customers is to be tapped i.e, there is large scope of expansion for companies.

Among all the factors that initiate the customer to an insurance policy respondent have
given the top priority followed by features.

Customers attach a very high level of significance with after sales service and majority of
companies provide free preventive service to its consumers.

74
 RECOMMENDATION
In the 2 years of existence in the market it has created a sensation by introducing its most
profitable Unit Linked plans and products. The insurer needs to concentrate to make its
products and company much more aware among the public to change the mindset of the
people and attract them towards insurance sector. This can make the recruitment of the
potential advisor very well. To create the awareness among the people, the following
methods could be adopted:

It needs to conduct awareness programmers, campaigns and publish news about the
company, product and attributes to position it in the customer‘s mind. The company
should timely communicate through media to make the relationship stronger.

Another way of creating awareness about the presence of insurer is by placing hoardings
and posters in the traffic areas and market complexes to attract the attention of the people.

The awareness through the television is another medium. Though it advertises its product
but it should forecast itself on the channel which the maximum of the people use like
door-darshan advertising through regional channels.

The company restricts itself from marking any branch offices as it believes in the
philosopher ―one family‖. Hence more awareness can be created by establishing more
branch and subsidiaries in the urban as well as rural areas. It can create much more
awareness among the common people also.

The above discussed methods could be helpful to create awareness and thus attract more
people to be its customers as well as to be a good life advisor. But for this the recruitment
standard and the recruitment policy should be good one.

75
 BIBLOIGRAPHY
Books & Magazines

Kothari, C.R, "Research Methodology" Wishwa Prakashan,

Delhi, 2004
Sawyer, A.G and Howard, David J, Journal of Marketing
Research 1999
Business World and Business India Magazine
Varshney, P.N ―Banking law and Practice‖

WEBSITE
https://www.google.co.in/
https://www.maxlifeinsurance.com/

https://www.thecapitalbox.com/
https://www.wikipedia.org/

76
 APPENDIX
A Study of Consumer‘s Perception Towards Insurance Sector
Questionnaire
Dear respondent, This questionnaire is aimed at understanding your perception
about life insurance. Your response will be dealt with strict confidentiality and it
will be used only for academic purpose. Thank you for spending your valuable
time to fill this questionnaire.

1. Name: Gender: Male/ Female Contact No:

2. Age Group:

below 30 31-50 Above

50

3. Educational Qualification:
Diploma Post Graduate Under Graduate

4. Occupation:

Self-Employed Employed Student Others

(Specify)……

Others (Specify)………….

5. Annual Income Level:

Below 1 Lakh 1.01-3 Lakh 3.01-5 Lakh

Above 5 Lakh

6. What percentage of your Salary do you usually save?

Less than 15% 15-20% 20-25%

Greater than 25%

77
 7. What kind of investment do you prefer?
Short Term Long Term Both

8. Rank these various investment alternatives according to your preferences.

SNO Investment Alternatives Rank

1. Bonds & Debentures
2. Equity/Shares
3. Mutual Fund
4. Public Provident Fund(PPF)
5. Post Office
6. Insurance
7. Bank Deposits
8. Real Estate
9. Gold & Silver

10. Other (specify)…………

9. If ‗Yes‘ Which Insurance Company Policy do you have?

LIC ICICI Prudential Max life insurance

HDFC Standard OTHERS ……..

10. What scheme of Insurance Policy have you taken?

Education plan Retirement plan Life protection plan

Others (Specify)………. Health Plan

78