Vision

To be the most admired life insurance company by securing the financial future of our
customers
Mission
We are an honest life insurance company, committed to doing what is right
We serve our customers through long-term savings, protection and retirement
solutions, delivered by our high quality Agency and Multi Channel Distribution Partners
We are a business with strong social relevance and contribute to society by
supporting causes in health and well-being
Our Values
Caring :Listens with respect and values differences Acts with compassion
Credibility : Demonstrates knowledge and creates trust in others
Collaborative : Works together to achieve results
Excellence : Pursues highest quality

Overview
Max Life Insurance, one of the leading life insurers, is a joint venture between Max India
Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multibusiness corporate, while Mitsui Sumitomo Insurance is a member of MS&AD
Insurance Group, which is amongst the top general insurers in the world. Max Life
Insurance offers comprehensive life insurance and retirement solutions for long-term
savings and protection to more than thirty lakh customers. It has a country-wide
diversified distribution model including the country's leading agent advisors, exclusive
arrangement with Axis Bank and several other partners. Max Life Insurance is a quality
business focused on delivering excellence to customers through advice based sale
process, customer centric approach to business, financial stability & investment
expertise and strong human capital.
In the financial year 2013-14 Max Life Insurance ranked fourth among private life
insurers with a market share of 10.3%. The Company has been one of the fastest
growing life insurance companies with Gross Written Premium of Rs. 7,279 crore and
Shareholders Profit After Tax of Rs. 436 crore for the Financial Year 2013-14. The
Company's share capital of Rs. 2,127 crore with a solvency margin of 485% is indicative
of its financial strength and stability. As on 31st March 2014, Max Life Insurance had
assets under management of Rs. 24,716 crore.

Max India Group - An Introduction

The Max India Group is a multi-business corporate, driven by the spirit of enterprise and
focused on people and service oriented businesses. The Company is headquartered in
New Delhi, India. The Company's vision is to be one of India's most admired corporates
for service excellence in what we do, how we do it and the positive impact we have on
society and our stakeholders. (www.maxindia.com)
Max India is in the 'Business of Life'. It 'Protects Life' through its Life Insurance
subsidiary Max Life, a joint venture between Max India and Mitsui Sumitomo Insurance,
Japan; 'Cares for Life' through its Healthcare company, Max Healthcare, a joint venture
between Max India and Life Healthcare, South Africa; 'Enhances Life' through its Health
Insurance company, Max Bupa Health Insurance, a joint venture between Max India
and Bupa Finance Plc., UK; 'Rejuvenates Life' through its Senior Living business
Antara, a fully owned subsidiary of Max India and 'Improves Life' through its Clinical
Research business. The Group also continues its interest in manufacture of Speciality
Products for the packaging industry through its SBU Max Speciality Films.
The Group's businesses have built commanding presence in their respective sector,
through a total customer base of nearly 7 million, over 300 offices spread across India
and a people strength of over 70,000 persons. These businesses are in high growth yet
under penetrated sectors, which will continue to benefit from India's demographic
dividend and increasing purchasing power. Max India's financial performance reflects
this potential. The Group earned a consolidated revenue of Rs. 106 billion in FY2013
and has a strong treasury corpus of around Rs. 4.0 billion.
The flagship company of Max Group, Max India Limited is a widely held public limited
company, listed on the BSE & the NSE. Analjit Singh, Founder & Chairman, is the lead
shareholder in Max India with over 39% holding. Other key shareholders in the
company include some of world's leading Institutional Investors, such as Goldman
Sachs, International Finance Corporation, Washington (IFC), and Temasek Holdings.
Max India remains committed to excellence in Corporate Governance and recognizes
that in today's world, it is an important driver for building all round excellence, attracting
high-quality talent and intelligent capital. The Group and its companies are Shareholder
steered, Board governed and Executive managed. The Board thoroughly evaluates
business performance on nine strategic levers - enhancing business performance,
investing in people and organisational development, creating efficiency in capital
management, adopting an integrated enterprise-wide approach, investing sensibly in
new growth opportunities, maintaining the highest standards of governance,
continuously improving service quality, developing a distinct corporate brand and
effectively managing risk.
Over its 25 years of existence, Max India has had a history of forging and nurturing
strong and successful joint venture with leading global companies such as New York
Life, Hutchinson Telecommunications, Motorola, Schering AG, Avent Inc., Gist
Brocades(GB), The Upjohn Company, Comsat International Ventures, Atotech BV.
Today, the Company shares excellent relationships with its Joint Venture partners in the
Life Insurance, Healthcare and Health Insurance space, namely Mitsui Sumitomo
Insurance, Life Healthcare and Bupa Plc. Through the years, Max India has
successfully established partnerships that stood the test of time, and grew consistently
and developed and matured into strong relationships.
Max India Subsidiaries & Businesses

Max Life Insurance Company Ltd. (Formerly Max New York Life)
(www.maxlifeinsurance.com)- is a joint venture between Max India Ltd. and Mitsui
Sumitomo Insurance Co. Ltd. Mitsui Sumitomo Insurance, is a part of MS&AD
Insurance Group, which is amongst the leading general insurers in the world.
Established with a vision to be the most admired life insurance Company in India, Max
New York Life Insurance was incorporated in the year 2000 in partnership with New
York Life, a Fortune 100 company. As a part of global strategic alignment across the
globe, New York Life decided to step out of the MNYL, and Max India has partnered
with Mitsui Sumitomo Insurance Company Ltd (MSI).
Today, known as Max Life Insurance, the Rs. 79 billion(USD 1.43 billion) Company is
one of India's leading life insurers, offers comprehensive life insurance and retirement
solutions for long-term savings and protection to thirty lakh customers. It has a countrywide diversified distribution model including the country's leading agent advisors,
exclusive arrangement with Axis Bank and several other partners. Max Life Insurance is
a quality business focused on delivering excellence to customers through advice based
sale process, customer centric approach to business, financial stability & investment
expertise and strong human capital.
Max Life is in the business of protecting lives & ensuring dignity of families. It is this
larger cause that has driven this company to secure around 3.5 million lives with a sum
assured in excess of Rs. 1,700 billion. With the customer at its core, a solvency margin
of 521% (significantly higher than stipulated level 3.7 times), Assets Under
Management(AUM) of over Rs. 205 billion, the company's quality business model has
come to be recognized and admired by its industry peers, regulator & policyholders. The
Business Excellence Journey of this company has been commended by CII-EXIM Bank
Quality Award, three years in a row. Max Life's multi-channel distribution with agency
distribution at its core has built strengths in need based selling processes for long term
saving & protection solutions.
Max Life was recognized as a Superbrand of the Year 2013-14. It has been ranked
amongst the best places to work for, by BT-Mercer, Gallup, Business World and the
Great Place to Work Institute and its investment performance has been rated in top
quartile by Outlook Money. As the company enters its second decade of existence, a
stable management team is guiding it to even higher customer-centricity, peopleorientation and quality focus.
Max Healthcare Institute Ltd. (MHC) (www.maxhealthcare.in) is a joint venture with
Life Healthcare, South Africa, and is the Country's leading comprehensive provider of
standardized, seamless and international-class healthcare services. It is committed to
the highest standards of medical and service excellence, patient care, scientific and
medical education.
Max Healthcare operates 12 facilities in North India, offering services in over 30 medical
disciplines. Max Healthcare has 12 facilities in North India, offering services in over 30
medical disciplines. Of this 9 facilities are located in Delhi & NCR and the others in
Mohali, Bathinda and Dehradun. The Max network includes state-of-the-art tertiary care
hospitals in Saket, Patparganj, Shalimar Bagh, Mohali, Bathinda and Dehradun,
secondary care hospitals at Gurgaon, Pitampura and Noida and an out-patient facility
and a speciality centre at Panchsheel Park. The Super Speciality Hospitals in Mohali
and Bathinda are under PPP arrangement with the Government of Punjab.

Max Healthcare has a base of over 2100 leading doctors, 5500 employees and around
2 million patients from 80 countries, across its network of 12 hospitals.
Max Bupa Health Insurance Company Ltd. (www.maxbupa.com) is a 74:26 joint
venture between Max India Ltd. and Bupa Finance Plc, UK, a leading international
healthcare provider with 65 years of healthcare knowledge. The Company brings
together a combination of Bupa's global health insurance expertise and customer
service expertise with Max India's understanding and experience of the Indian health
and insurance sectors.
Max Bupa offers quality health insurance services through a dedicated team of over
1200 people and its network of 21 offices across 13 cities - Delhi, Mumbai, Hyderabad,
Chennai, Bangalore, Pune, Ludhiana, Chandigarh, Jaipur, Surat, Kochi, Kolkata and
Patna. Max Bupa has a customer base of 1.4 million and it offers individual and family
oriented health insurance policies for Indians across all age groups.
Max Bupa Health Insurance has a direct working relationship with a network of 3500 top
quality hospitals and healthcare providers and at the same time the company plans to
extend its network of hospitals to other parts of the country. Max Bupa services
customers directly without third party involvement.
Antara ( www.antaraseniorliving.com): Max India Group has entered the Senior Living
Business to support its next phase of growth in the businesses of life. Due to the fast
changing social milieu, the concept of Senior Living presents a rapidly growing yet
inadequately serviced business opportunity in India. Antara Senior Living focuses on
people over the age of sixty and the first initiative is to create vibrant residential
communities for progressive seniors that offer "Lifestyle with Lifecare". Keeping in line
with the Max Group values of "Sevabhav, Excellence and Credibility", Antara truly aims
to create a difference to the lives of seniors in India. With its initial focus for building
these communities in North India, Antara has partnered with best in the class
international architects and industry experts, to design and develop its first community in
Purukul, Dehradun. Spread across 16 acres, this community will comprise 220 resident
apartments and approximately 50 wellness suites that will cater to the advanced
healthcare needs of its residents and seniors. This community will be ready for
residents to move into by 2016.
Max Speciality Films (MSF) (www.maxspecialityfilms.com) is a Strategic Business Unit
of Max India. It is the only manufacturing business that Max India continues to operate
after its reinvention and shift to service oriented businesses in 2000.
MSF specializes in manufacturing specialty barrier and packaging (BOPP) films to cater
to the needs of a wide range of sophisticated packaging applications including food
packaging, overwrap, consumer products and label manufacture. MSF's leather
finishing foil business division manufactures a range of leather finishing and laminating
foils. The Company has an installed capacity of 52,000 tons per annum.
MSF is the first BOPP manufacturing unit to sign the MSG CII Code for Ecologically
Sustainable Business Growth, run by the premier Indian industry association, CII. It has
voluntarily committed to reduce the consumption of energy, water and waste to increase
use of recyclables, incorporate life cycle assessment & adopt green purchase policy.
MSF has been awarded with the prestigious Golden Peacock Award 2011, India Star
2010 award and World Star 2010 award for its innovative product development.

Max India Foundation (MIF) (www.maxindiafoundation.org) spearheads the CSR

initiatives of the Max India Group entities. The foundation has been working relentlessly
in the areas of healthcare, immunization, healthcare and environment, in its endeavour
to improve the quality of life. MIF operates across the country in association with Max
India Group companies and closely involves all employees of the Group.
In a short span of four years, MIF has been able to make a difference in the lives nearly
5,00,000 people across more than 360 locations across India. MIF has partnered
regularly with reputable NGO's such as CanSupport, SOS Children's Village, Manav
Seva Sannidhi and Chinmaya Mission to undertake initiatives like pan India
immunization programme, surgeries for underprivileged, artificial limb and polio calipers
camp, multi-speciality camps, blood donation camps, onboard rail operation theater
Life Line Express, 'Clean Delhi Clean Yamuna' campaign, support for disaster relief
victims amongst others. Max India Foundation has been awarded the Golden Peacock
Global Award for Best CSR three years in running, the BSE Award, the Indy's Award, for
CSR, for the significant impact the Foundation has made to the lives of the needy.

Mitsui Sumitomo Insurance Co. Ltd.

Mitsui Sumitomo Insurance Co., Ltd. (MSI) is a member of MS&AD Insurance Group
that was formed in April 2010 from the business integration of the Mitsui Sumitomo
Insurance Group Holdings, Inc. (MSIG), Aioi Insurance Co., Ltd. (Aioi) and Nissay Dowa
General Insurance Co., Ltd. (NDI) under the holding company MS&AD Insurance Group
Holdings, Inc. (MS&AD Holdings).
Headquartered in Tokyo, Japan, MS&AD Insurance Group has a presence in 39
markets globally. In FY 2012-13, it reported a Total Assets of 1,671 billion yen (US$167
billion) and a Consolidated Net Premium of 2,811 billion yen (US$ 28.1 billion).
The Group seeks to grow by expanding its business through five business domains,
namely domestic non-life insurance, domestic life insurance, overseas, financial
services and risk-related businesses through its subsidiaries and associated companies
in both domestic and overseas markets.
MSI was formed in October 2001 through a merger between the former Mitsui Marine &
Fire Insurance Co., Ltd. ("Mitsui Marine") and the former The Sumitomo Marine & Fire
Insurance Co., Ltd. ("Sumitomo Marine"). Both Mitsui Marine and Sumitomo Marine
were leading general insurance companies boasting long history since 1918 and 1893,
respectively.
Having a history of 120 years in general insurance business, today, MS&AD Insurance
Group has developed an overseas network of over 400 bases in 39 countries and
regions, mainly in high-growth areas within Asia. With over 50 years of experience in
operating outside Japan, the Group aims to supply products and services tailored to
various risks around the world.
In addition to general insurance business, MSI has strong experience and an extensive
track record in the area of Life Insurance through its domestic subsidiaries, Mitsui
Sumitomo Aioi Life and Mitsui Sumitomo Primary Life, both of which are currently
owned by the group's holding company MS&AD Insurance Group Holdings, Inc. MSI
also has a presence in Life Insurance markets of Thailand, China, Malaysia and
Indonesia.


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In India, MSI has been operating its general insurance business through its joint venture
"Cholamandalam MS General Insurance Co. Ltd." since 2003
Financial strength
Safety of our policyholders and shareholders money
Consistency of returns to policyholders, shareholders and distributors
Ability to offer feature rich products
Balanced distribution touching more customers
Quality of Advice
Customer relationships build on the foundation of 'Trust'
Need and Risk profile based customer solutions
Enabling customers to take informed decisions
Through well trained and knowledgeable team
Service Excellence
Caring mindset at all customer touch points
Bias for long-term customer relationships
Responsive service
Continuous improvement in customer processes
Superior Human Capital
Great place to work
Inclusive meritocracy
Opportunities for development and growth
Direct and open communication
Corporate Governance
Honest organization that always does what is right
Bias for win win actions
Predictable outcomes and delivery of promise
No compromise on compliance

Value Driven Culture

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Caring, Credibility, Collaborative, Excellence
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Integrity in all what we do

Max Life Insurance Co. Ltd.

Max Life Insurance, one of the leading life insurers, is a joint venture between Max India
Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multibusiness corporate, while Mitsui Sumitomo Insurance is a member of MS&AD

Insurance Group, which is amongst the top general insurers in the world. Max Life
Insurance offers comprehensive life insurance and retirement solutions for long-term
savings and protection to more than thirty lakh customers. It has a country-wide
diversified distribution model including the country's leading agent advisors, exclusive
arrangement with Axis Bank and several other partners. Max Life Insurance is a quality
business focused on delivering excellence to customers through advice based sale
process, customer centric approach to business, financial stability & investment
expertise and strong human capital.
Max Life Insurance has positioned itself on the quality platform. In line with its vision to
be the most admired life insurance company by securing the financial future of its
customers, has developed a strong corporate governance model based on the core
values of caring, credibility, collaborative and excellence.
Max Life Insurance offers comprehensive life insurance and retirement solutions for
long-term savings and protection to over thirty two lakh customers. It has a country-wide
diversified distribution model including the country's leading agent advisors, exclusive
arrangement with Axis Bank and several other partners. Max Life Insurance is a quality
business focused on delivering excellence to customers through advice based sale
process, customer centric approach to business, financial stability & investment
expertise and strong human capital.
In the financial year 2013-14 Max Life Insurance ranked fourth among private life
insurers with a market share of 10.3%. The Company has been one of the fastest
growing life insurance companies with Gross Written Premium of Rs. 7,279 crore and
Shareholders Profit After Tax of Rs. 436 crore for the Financial Year 2013-14. The
Company's share capital of Rs. 2,127 crore with a solvency margin of 485% is indicative
of its financial strength and stability. As on 31st March 2014, Max Life Insurance had
assets under management of Rs. 24,716 crore.
Max Life Insurance has a diversified distribution network spread across more than 750
cities. The distribution is based on three pillars agency distribution, bancassurance
and partnership distribution. Agency distribution forms its core distribution channels with
advice based sales process through its well trained and knowledgeable agent advisors.
These agent advisors are equipped to engage with prospective customers and offer
customized solutions for their life stage needs.
In bancassurance, the Company has a strong relationship with Axis Bank which in a
short span has become the largest non-captive bancassurance relationship in India with
its network of over 2000 branches providing life insurance solutions to its customers.
Partnership Distribution, the third pillar of Max Life Insurance's distribution model is
equally important and successful with long standing relationship with large distributors
of financial products such as Amsure and Peerless. These three key distribution
channels are compelmented by Group Insurance and Customer Advocacy teams.
Max Life Insurance offers a comprehensive suite of Long Term Savings and Protection
oriented products. It currently has 12 products covering and 3 riders that can be
customized to suit every life stage need of the customer. Besides this, the company
offers 3 products and 1 rider in group insurance business.
At Max Life Insurance, providing a superior customer experience is central to its vision
and the Company is committed to provide superior service experience to the customer.
As a proactive step towards service excellence, Max Life Insurance has launched the

"Treating Customer Fairly" (TCF) policy. The TCF policy aims to raise standards in the
way the Company interacts with customers at every touch point right from the pre-sales
engagement to the payment of benefits.
Max Life Insurance follows a prudent investment philosophy to optimize risk
management in its bid to provide maximize returns to policyholders. Investments are in
instruments which are safe and provide good returns in the long run.
The company values human capital and considers it to be its competitive advantage.
Max Life Insurance believes that people are its biggest organizational assets and hence
lays a strong emphasis on employee friendly practices leading to high levels of
employee engagement and motivation. This is reflected in the recognition that the
company received from the Great Places To Work Institute, India, as one of the best
workplaces in the industry.
Max Life insurance works closely with Max India Foundation, an independent social
service organization of the Max India Group for all its CSR activities. The company has
taken up immunization programme as a societal agenda to ensure protection against
major ailments for the next generation of the country. The programme covers vaccines
like BCG, Hepatitis B vaccine, Polio drops, DPT, D Tap, Measles vaccine, MMR,
Typhoid, dT and TT.
Max Life Insurance has always believed in setting new benchmarks in quality of service
and product offerings to its stakeholders and its efforts have been duly recognized over
the years. Some of the awards and accolades won by Max Life Insurance in the recent
year are as follows:
Recognized as a 'Superbrand of the Year' 2013-14
Ranked 8th amongst the Most Trusted Life Insurance companies in Brand Equity
(The Economic Times) survey
Golden Mikes 2014, the most coveted Indian Radio awards, for Max Life
Insurance i-genius
Amongst the top 100 'Great Place to Work'- 3rd year in a row
Awarded 'Celent Model Insurer Asia - Distribution Agent Channel' for New Work
System
'BIG Data & Business Analytics Award' for Business Analytics and Performance
Management Leadership
Project Unnati recognized at the ASQ World Conference 2013

As on June 30th,2015
Founded

2000

Started operations

April 2001

Headquarters

New Delhi, India

Chairman

Mr. Analjit Singh

CEO & Managing Director

Mr. Rajesh Sud

Paid-Up Capital (Incl Security Premium &

Capital Reserve)

Rs. 2,115 crore

Sum Assured (Incl Group)

Rs. 1,61,894 Crore

Number of policies sold (Since inception)

75.42 lakh

Asset under management

Rs. 31,973 crore

Employees

8,069

Agent Advisors

43,183

Number of products (Individual)

14

Number of riders / options (Individual)

Number of products (Group)

Number of riders / options (Group)

Number of offices

209

Number of cities

136

Claims paid

7 days

MDRTs

105 (for calendar year

2014)

Trainers (including L & D)

400

At Max Life Insurance, with each award and accolade received over the years, we have
renewed our promise of providing the best quality of products and services to our
customers. Some of the awards and recognition rewarded to us.
Awards won
Won the Global Finance Best Life Insurance Company 2014, India.
Won the trophy for Best Underwriting Initiative of the year in the Asia
Banking, Financial Services & Insurance Excellence Awards
Max Life i-genius won Silver and Bronze 'Abby' award at Goafest 2014
Max Life Retirement PR campaign won 'Excellence' award at Sabre Asia
Recognised amongst India's Best Companies to Work For 2014...Ranked 58th
from 82nd last year by GPTW
Project CARS won QCI - D.L.Shah Commendation Award 2014.
Project Proactive Retention won Bronze Award at World Conference for Quality
& Improvement 2014 (WCQI) in Dallas, USA.
Recognized amongst the top 100 companies 'India's Best Companies to Work
for 2013' a survey by Great Place To Work Institute

Selected as Superbrand of the Year 2013-14

Max Life Insurance won the 6th National Conference & Competition on Six
Sigma, 2012, held by the Confederation of Indian Industry (CII) for the Green Belt
project"Power of Speed - Settlement of Claims within 10 days". Overall 24 project
presentations were made by manufacturing and service sector companies that included
HCL, Wipro, Times of India, 3M India & QuEST Global from service sector.
Awarded the 6th AIMIA Loyalty Award in the category 'Financials - Non Banking
Financial Services Sector'. AIMIA is a global leader in loyalty management and the
loyalty awards recognize excellence innovation and best practice in customer loyalty.
The selection criteria included a Voice of Customer study in addition to submissions by
the organizations.
Silver EFFIE Award in 2012, for the 'Aapke Sachche Advisor' campaign.
Organized by The Advertising Club Bombay in India, the EFFIEs have become the gold
standard in measuring marketing and communication effectiveness in India.
QCI DL Shah Awards for Best Six Sigma Project on economics of Quality - 2012
Outlook Money survey - recognized as the only company to have funds amongst
the top quartile in all funds category
CII National Six Sigma recognition for Best Six Sigma Project - 2009
CIO 100 Technology Award 2008 - 2011
Golden Peacock Award for Excellence in Product Innovation for Max Vijay
Awarded the Asia Insurance Industry 'Innovation of the Year' Award 2009
Gallup Great Work Place Award 2009
'CII - EXIM Bank Commendation Certificate for Strong Commitment to Excel' for
the year 2008 to 2010
Ranked 7th in BT-Mercer-TNS Best Companies to Work For Survey 2008
Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted
by Asia Insurance Review
Indo-American Corporate Excellence Award for Best Indo-US company in
Financial Services Category in 2006
Received 'Best Six Sigma Project' award at Sakal Six Sigma Excellence
Awards 2006
Among the top five most respected insurance companies in India as per
Businessworld 2004 and 2006 survey
Among the top 25 companies to work for in India, according to Businessworld
2003 'Great Workplaces of India'
Some of the industry firsts
First company to provide Freelook period of 15 days to the customer. This was
later made mandatory by the regulator
First company to start toll free line for agent service
First and the only life insurance company in India to implement Lean
methodology of service excellence in service industry
First life insurance company in India to provide various services to the agents
and customers over phone

First Indian life insurance company to start service center at the regional level
First life insurance company in India to be awarded ISO 9001:2008 certification
Board of directors

Mr. Analjit SinghChairman, Max Life Insurance Co. Ltd.

Mr. Analjit Singh the Founder & Chairman of Max India Limited and its
subsidiaries Max Life Insurance Company Limited; Max Healthcare Institute Limited and
Max Bupa Health Insurance Company Limited. He has been the driving force behind the
Max India Group's sustained growth and success since the mid 80's.
A self made entrepreneur, Mr. Analjit Singh has been leading the charge of reinventing
and restructuring the Max India Group with a vision to be amongst India's most admired
companies for Service Excellence.
Today, Max India Limited is a multi-business corporate, focused on People and Service
oriented Businesses of 'Life'. Max India Group is present in the areas of Life Insurance
(Protecting Life) through Max Life Insurance, a Joint Venture with Mitsui Sumitomo,
Japan ; Healthcare (Caring for Life) through Max Healthcare, a Joint Venture with Life
Healthcare, South Africa; Health Insurance (Enhancing Life) through Max Bupa Health
Insurance; a Joint Venture with Bupa Finance Plc., U.K. and Senior Living business
(Rejuvenates Life) through Antara, a fully owned subsidiary of Max India. Max India also
continues its interest in manufacture of Speciality Products for the packaging industry
through its SBU Max Speciality Films.
Max India Group's annual turnover is nearly INR 86 billion with a customer base of
about 5.1 million. The total investment in various businesses at the end of FY2012
stood at over INR 26 billion. The Group has over 500 offices across India; with people
strength of about 57,000.
Recognizing Mr. Analjit Singh's contribution towards building India Inc., he has been
awarded one of India's highest civilian honors, the Padma Bhushan, by the President of
India in 2011. He has also been recently awarded Ernst & Young, Enterpreneur of the
Year Services. As one of India's leading business-persons, Mr. Analjit Singh is a
Member of the Prime Minister's Joint Indo-US CEOs Forum. He is the non-executive
Chairman of Vodafone India, India's second largest mobile telephony services. He is a
Director on the board of several leading companies such as Dabur India, Tata Global
Beverages, Hero MotoCorp and Sofina NV/SA, Belgium. He is also the Chairman of
CII's National Committee on Insurance & Pension.
Mr. Analjit Singh has always taken keen interest in enhancing India's academic
excellence. He is currently an Executive Board Member of the Board of Governors,
Indian School of Business (ISB), Hyderabad, where he is jointly funding a new campus
at Mohali, Punjab and actively facilitating it as the Chairman, Mohali Campus Advisory
Board, ISB. He has recently taken on the role of the Chairman of the Board of

Governors, Indian Institute of Technology, Roorkee. In addition, he is the Chairman,

Board of Governors, The Doon School, Dehradun.
Mr. Analjit Singh is actively involved in social service, through his role as the Chairman
and Chief Patron of Max India Foundation (MIF), the Social Service arm of Max India
Group. Committed to fostering an inclusive society, MIF spearheads the CSR initiatives
of the various Max India Group companies and also partners with several reputable
NGOs such as SOS Children's Village, Manav Seva Sannidhi, CanSupport and
Chinmaya Mission.
The Foundation's main focus areas are:
o
Providing improved access to quality healthcare for underprivileged,
particularly children.
o
Creating awareness on health-related issues such as women's health,
cancer, cardiovascular diseases and immunisation of children.
o
Improving awareness of environmental issues with a view to supporting a
sustainable and eco-friendly environment.
He is also the Life Chairman, Bhai Mohan Singh Foundation.
Mr. Analjit Singh is the Consul General (Honorary) of the Republic of San Marino in
India.
Senator Hillary Clinton, on behalf of The Indian American Center for Political Awareness
(IACPA), awarded Mr. Analjit Singh for his 'outstanding achievement' in presenting the
international community with an understanding of a modern and vibrant India. The
IACPA has particularly lauded his efforts in forging several successful Joint Ventures
with leading American companies and promoting business ties with the US.
Mr. Analjit Singh is an alumnus of Doon School, Dehradun; Shriram College of
Commerce, University of Delhi; School of Management and the Graduate School of
Management, Boston University, Boston, USA. He is married and has three children.

Mr. Anuroop (Tony) SinghVice Chairman, Max Life Insurance Co. Ltd.

Mr. Anuroop (Tony) Singh was appointed Director of Max Life Insurance
with effect from February 24, 2004. He is an experienced business leader and an
independent member on the Board of several leading companies. He has more than
three decades of executive experience in the financial services sector, including two
decades as a Chief Executive for various businesses. His emphasis on principles and
core values-based operations has helped build many successful organizations. He also
mentors & advises entrepreneurs and non-profits due to his keen interest in holistic and
sustainable living.
He is currently pursuing Non-Executive Board level engagements with select
professionally-managed, values-driven corporate entities and social service
organizations which aim to leverage the full potential of an active and professional
Board. His focus is on Strategy, Governance and Performance Engineering.

In the Healthcare sector, he is the Chairman of Max Bupa Health

Insurance(www.maxbupa.com), in the Insurance sector, he serves as the Vice
Chairman ofMax Life Insurance Company (www.maxlifeinsurance.com). He is the
Vice Chairman of Max India (www.maxindia.com), in the IT sector, he was an
independent member on the Board of Directors, Audit Committee and Human Resource
Committee of Perot Systems (www.perotsystems.com).
In the banking sector, he was an independent member on the Board of Directors, Chair
Nomination and Compensation Committee of Development Credit
Bank(www.dcbl.com), in the Social Service, he serves as a member on the Board of
Directors of SOS Children's Villages of India (www.soscvindia.org).
Prior to his present Non-Executive Board assignments, he led an executive career and
was CEO and Managing Director of Max New York Life Insurance Company (Now
Max Life Insurance). He launched and established Max New York Lifes operations in
India in 2000.
Earlier, he was Country Head, India and Regional Head, Retail Banking, Middle East
and South Asia, for ANZ Grindlays Bank. He has also served as the Country General
Manager for Retail Banking at Bank of America for five years.
He worked for 15 years in various positions with American Express, establishing the
Company in several countries in the region.
He is currently devoting considerable time and resources to create the Quantum
Institute for Well Being, a healing center which will focus on root cause based treatment
(instead of symptoms) and offer alternate and complimentary therapies as part of the
solution set. This will be a significant paradigm changing initiative and will evolve over a
period of time with the support of outstanding domain experts, therapist and healers
who are in the process of coming together.
He is also supporting the development of a sustainable
community Kailasa(www.kailasa.in), which is based on the principle of authentic living,
spiritual growth and self-sustainability.
Earlier in his life, qualifying as a Chartered Accountant in 1976, he did his articleship
from A.F. Ferguson and Co. He also worked overseas with Ernst & Young.
He graduated from Delhi University in 1973 and studied at the Doon School, Dehradun.
He is married to Catherine Morice Singh, a professor of Mathematics who holds a keen
interest in Indian Culture and history of Indian Mathematics. They have two daughters,
Priyanka Singh, a documentary photographer and Divya Singh, working as a finance
executive. He himself lives and spends his time across India, Europe, USA and UAE.

Mr. Rajesh SudCEO and Managing Director, Max Life Insurance Co. Ltd.

Mr. Rajesh Sud was appointed CEO and Managing Director with effect
from November 1, 2008 of Max Life Insurance, which started operations in 2001 when
the insurance sector was opened to private participation. A founder team member,
Rajesh was amongst the first few management team members to join Max Life
Insurance.

He leads the company towards achieving its vision of being the most admired life
insurance company in the country.
Prior to this, Rajesh was responsible for establishing a multi channel distribution
network for the individual life business. Rajesh has successfully established Agency as
the core channel for the company with strong focus on process, training and
productivity. These strong foundations have allowed Max Life Insurance to rapidly grow
to pan India presence with a professional and trained sales force, which is widely
regarded as the best in the industry.
Apart from his distribution role, Rajesh has also worked on many cross-functional
projects and played a key role in defining Max Life Insurance's business strategy and
growth plans.
Prior to joining Max Life Insurance, Rajesh was the Head of Asset Finance business at
the largest foreign bank in India, ANZ Grindlays Bank and was seconded as the CEO
and MD of the Bank's subsidiary finance company, Esanda Finance and Leasing Ltd.
Rajesh started his career with Bank of America and held various positions of increasing
responsibility. Rajesh was part of the transition team that managed the successful sale
of Bank Of America's consumer banking business to ABN Amro Bank and served as the
Head of Consumer Banking Sales.
Rajesh completed his Advanced Management Program from Wharton Business School,
University of Pennsylvania, Philadelphia, USA. He also has a Management post
graduation degree in Marketing and Finance from Faculty of Management Studies,
Delhi University.

Mr. Rahul KhoslaDirector, Max Life Insurance Co. Ltd.

Mr. Rahul Khosla was appointed the Director of Max Life Insurance with
effect from February 2012. Rahul is a seasoned business manager with wide domain
expertise built over 27 years in financial services. He has deep management
experience, strong leadership skills, and broad business perspectives developed across
several multinational environments, both globally and in India.
His last role was based in Singapore as Group Head of Products for Visa, for all
markets in Asia Pacific, Central Europe, Middle East and Africa and represented the
region on Visa's Global Product Management Team. Previously, he was Chief Operating
Officer for Visa Asia Pacific. In his 11 years with Visa, Rahul helped to exponentially
grow the business and build Visa's leadership through product innovation, senior client
interface, organizational effectiveness and business execution.
Before joining Visa, Rahul was the country head for ANZ Grindlays' Personal Financial
Services businesses in India, with P&L responsibility across all aspects of retail banking.
He developed and implemented a strategy to transform and turn around the largest
foreign-owned bank in India and restructured the bank's sales processes, balance sheet
management, revenue drivers, margin optimization, organization structure and expense
management to achieve significant traction across all profitability dimensions.

Rahul worked in Bank of America in India as Head of Retail Assets, Strategy, Finance
and Legal, where he helped to re-launch the bank's retail business in India, established
national market leadership on the auto loan business and established important
partnerships and regulatory approvals that set the foundations for the retail bank's
growth.
He spent almost 10 years in American Express, where his last role was to set up a
pioneering BPO facility for American Express in India where he successfully migrated
financial processes from Asian markets. Before this, Rahul was CFO for the American
Express TRS businesses for India and South Asia, and was a member of the core team
that launched India's first American Express local currency card, won the Chairman's
Award for a significant automation project and authored a landmark client profitability
analysis for the businesses.
Rahul is a Chartered Accountant (articled with A F Ferguson & Co) and graduated with
honours in Economics from St Stephen's College, Delhi.

Mr. Rajit MehtaDirector Max Life Insurance Co. Ltd.

Mr. Rajit Mehta was appointed Director of Max Life Insurance with effect
from November 01, 2008. He is a seasoned business manager with a wide domain of
expertise built over 20 years in financial services.
Rajit is a founder member of the Company and has seen it through its formative years.
In his previous role Rajit was Executive Director and Chief Operatiing Officer at Max Life
Insurance. His responsibilities included Customer Service and Operations, Information
Technology, Business Excellence and Infrastructure & Facilities. He was also the
mentor for setting up a Learning & Development Centre of Excellence (CoE). He was
also involved in Project Max Vijay, an innovative Retail business model aimed at
providing protection and long term wealth creation opportunities to the underserved
segments in India.
For two years he also took additional responsibilities as the Chief Transformation Officer
for the company. This entailed setting up a Governance framework to oversee execution
of key initiatives, designing and implementing New Work Systems, aligning key
stakeholders, rationalizing the cost structure substantially to improve profitability and
laying down a comprehensive Change Management agenda. Max Life has during this
period, not only doubled its Market share and but has also seamlessly transited to a
new Brand identity.
Rajit has been instrumental in building the company's Human Capital, recruiting and
retaining a strong management team, creating a positive work environment and culture
and ushering "best-in-class" HR practices. He has successfully led several projects to
achieve Service Excellence and Operational Efficiencies to support business strategy.
This included putting a Service Blueprint in place, reconfiguring the Organization
Design, Technologies, Front-end Service delivery system, introduction of Self-Service
mechanisms and implementing a comprehensive Outsourcing Strategy to impact
Customer experience and costs.

Rajit has played a strategic role in helping the company expand its distribution footprint
across India including facilitating a project to "Revamp Sales processes". The project
culminated in Rajit co-authoring a book titled "Growth Leadership Practices at Max Life".
Prior to Max New York Life, he was the Director Personnel at Bank of America and
has also worked with HCL. His total experience spans 28 years. Rajit is a graduate in
Commerce, post graduate in Human Resources and has also attended an Advanced
Management Program at INSEAD France. He is the recipient of the Chairman's Award
for Excellence at Max New York Life. He has also received a certificate of Merit for
securing First position from Indian Society of Training and development and has been
trained as an assessor on the Malcolm Balridge Excellence framework.

Ms. Marielle TheronDirector, Max Life Insurance Co. Ltd.

Ms.Theron was appointed Director of Max Life Insurance with effect from
May 2009. She is a Principal of Erlen Street Corporation, Switzerland, a company that
specialises in strategic investment and management consulting solutions.
Prior to that, Ms Theron worked in both consulting and corporate roles for multi-national
companies and governments across Europe, Asia, Australia, New Zealand and South
Africa, advising on insurance and investment related solutions. She holds a B.Sc.
majored in Actuarial Science from Laval University, Canada and is a Fellow of the
Society of Actuary (FSA).

Mr. K. Narasimha MurthyDirector, Max Life Insurance Co. Ltd.

Mr. K. Narasimha Murthy was appointed as an Independent Director of

Max Life Insurance Co. Ltd. with effect from August 23, 2013.
Closely involved with several National level Financial Institutions, he is presently serving
on the Board of ONGC., LIC Housing Finance Ltd., STCI Finance Ltd.(Formerly
Securities Trading Corporation of India Ltd.), Infiniti Retail Limited, APSFC, Max Bupa
Health Insurance Co. Ltd and Board of Supervision NABARD. In addition, he also
serves as an Independent Director on the Board of many large Corporates.
In the past, Mr. Murthy has served as a Director with IDBI Bank Ltd.(2001-11), UTI Bank
Ltd., (presently AXIS Bank)(1999-2004), Unit Trust of India (UTI)(2002-03), IFCI Ltd.
(2008-09), APIDC Ltd., Bombay Stock Exchange and many more. As the Chairman of
Expert Committee on Urban Co-op. Banks (UCBs)(2002) in A.P., he has analysed the
performance of more than 140 UCBs.
Mr K. Narasimha Murthy holds brilliant academic records. He scored ranks in both CA &
ICWA courses and entered the Profession of Cost & Management Accountancy in 1983.
Expert in his field, he has to his merit credits of turning around of many large

Corporates, focusing on systems improvement with Cost Reduction approach.

Currently, he is associated with the development of Cost & Management Information
Systems for more than 150 Companies covering more than 45 industries.
His efforts in the furtherance of Costing & Management Accounting Profession in India
have been recognised by the Institute of Cost & Works Accountants of India (ICWAI).
The institution honoured him with citation in October 2007. He was recently also
nominated as a Member Convener on the Implementation & Monitoring Committee on
Audit Reforms in Public Sector Banks by the Govt. of India.

Mr. John PooleDirector, Max Life Insurance Co. Ltd.

Mr. John Poole was appointed Director of Max Life Insurance with effect
from July 2012.
John joined Max Life in 2005 and served as the Appointed Actuary from 2005 till 2011.
Before joining Max Life Insurance, John's career was spent mainly with the AMP one
of Australia's leading life insurers. He held a number of actuarial and finance positions in
AMP including Finance Director for AMP Asia where he was involved in Business
Development activities in the People's Republic of China, India and Japan. He also
served as CFO and Actuary for the largest of AMP's Australian business units.
John attended London University where he majored in mathematics and then qualified
as a Fellow of the Institute and Faculty of Actuaries before joining AMP's operations in
Sydney.

Mr. Rajesh KhannaDirector, Max Life Insurance Co. Ltd.

Mr. Rajesh Khanna was appointed Director of Max Life Insurance with
effect from July 2012.
He is the Founder & CEO of Arka Capital Advisors Pvt. Ltd., and is an angel investor in
early stage companies. Previously, he serves as the MD and India Head at Warburg
Pincus, and was a member of its global Executive Management Group . He served on
the Board of Lemon Tree Hotels, Lokmat Media and Max India. Prior to joining Warburg
Pincus, he worked with Citibank N.A. and Arthur Andersen & Co.
Rajesh Khanna holds an MBA from IIM, Ahmedabad and is a Chartered Accountant.

Mr. D.K. MittalDirector, Max Life Insurance Co. Ltd.

Mr. D. K. Mittal was appointed as an independent non-executive Director

of Max Life Insurance with effect from April 01, 2014. He is a former Indian
Administrative Service (IAS) officer of 1977 batch (UP cadre) and has served the
government of India in various capacities. Until last year, Mr. Mittal was Secretary,
Department of Financial Services, where he was responsible for overseeing Banking,
Insurance and Pension policies of India. During his tenure he worked very closely with
the RBI and was on the Board of the RBI, LIC, State Bank of India, IIFCL and
IIFCL(UK). Previously as Secretary, Ministry of Corporate Affairs, he has worked closely
with ICAI, ICSI and ICWAI. As an Additional Secretary, Department of Commerce, Mr.
Mittal was the chief negotiator of India for WTO negotiation. He also supervised all
multilateral Preferential Tariff negotiations, development and operation of SEZs in India
and FDI and Overseas Investment from India. As Joint Secretary, Ministry of
Commerce, he had oversight of International Trade and Special Economic Zones. He
formulated SEZ policy in March 2000 for the first time in India. He was with ILFS on
secondment from the Govt of India and worked in the area of project development and
financing of infra projects.
Mr. Mittal has hands on experience in Infrastructure, International Trade, Urban
Development, Renewable Energy, Agriculture Development and Micro- Credit,
Corporate Governance, Banking, Insurance, Pension and Finance.
He holds a Masters degree in physics with specialization in Electronics from University
of Allahabad, India.

Mr. Masataka KitagawaDirector, Max Life Insurance Co. Ltd.

Mr. Masataka Kitagawa was appointed Director of Max Life Insurance

Co. Ltd. with effect from July 28, 2015. He is responsible for Mitsui Sumitomo
Insurance's overseas life insurance business. He has an experience of more than 30
years in insurance industry, including 13 years as a Liability Insurance underwriter in
Fire & Casualty Insurance Underwriting Department, 8 years of overseas business
experience in London & Bermuda and 3 years experience as the general manager of IR
(investors relationship) Department involving the companys strategy and corporate
planning.
In Bermuda he was resposible for inward reinsurance business for 3 years as President
& CEO of reinsurance subsidiary with advanced knowledge of reisurance and exellent
management skill in the competitive market.
He holds a Bachelor of Sociology from Hitotsubashi University, Tokyo.

Mr. Hideaki NomuraDirector, Max Life Insurance Co. Ltd.

Mr Hideaki Nomura was appointed Director of Max Life Insurance Co.

Ltd. with effect from June 27, 2012. Mr. Hideaki Nomura has 29 years experience in
financial industries including insurance, banking and investment banking.
In his tenure with Mitsui Sumitomo Insurance., Ltd. ("MSI") for 17 years, He took a
strategic role in helping the company expand into Asian local insurance businesses by
analyzing, structuring and valuating M&A transactions, such as Sinatay Life in China,
Sinarmas Life in Indonesia, Hong Leong Assurance in Malaysia, Hong Leong Takaful in
Malaysia, Mingtai Insurance in Taiwan, etc.
He was also in charge of establishing new businesses, such as Unit-LinkedAnnuity Joint
Venture with Citigroup, defined contribution business and mutual fund business.
Prior to joining MSI, He spent 12 years in Nippon Credit Bank (currently Aozora Bank)
and its investment banking subsidiary in London, where his roles were bond trading,
fixed income market analysis, financial derivatives sales, credit analysis and providing
loans to corporations.
He holds an MBA from Graduate School of International Corporate Strategy,
Hitotsubashi University, Tokyo, completed his exchange program from Anderson
Business School at University of California, Los Angeles and has a BA in Economics
from Keio University, Tokyo.
He is a Chartered Member of the Securities Analysts Association of Japan and a
Certified Financial Planner granted by Japan Association for Financial Planners.

Mr. Toshinari Tokoi

Mr. Toshinari Tokoi has resigned from the Board of Max Life Insurance
effective July 27, 2015.

Why do you need life insurance

Mr. Mehta was very happy with his job, his family and life in general. He was very
particular with his finances. His 8 year old daughter and 9 year old son were doing well
in one of the best schools in India and his wife had the financial comfort she wanted.
However, Mr. Mehta will concur that one can never tell when fate will tarnish a pretty
picture. He suddenly suffered a heart attack, with a few complications, and was

admitted to the hospital. Three weeks in the ICU and an angiography and angioplasty
struck him with a serious financial blow. His modest medical insurance covered some of
his expenses but he had to dip into his savings for the rest. He thought his current
financial plan was solid, but he was wrong. What if the next time his medical expenses
are even higher? What about the money he has to keep aside for his daughters
wedding, or his sons higher studies? What if he doesnt pull through the next time?
Who will take care of his family and support them financially? Another disaster like this
will destroy his long term savings plans.
That was it! He had to re-assess his financial structure. Statistics showed him that if he
saved a little money every month in a life insurance policy he would be in an even better
position to deal with any unforeseen setbacks in the future. His family will have financial
security if he isnt lucky enough to survive the next time.
He also decided to take into consideration the expenses for his childrens higher studies
and marriage. Mr. Mehta was thinking very clearly in the long term now.
Although we dont want to think of these situations, preparing for them with the right
financial planning will only help our long term goals. Mr. Mehta realised this the hard
way. Luckily, we have the chance to learn from his mistake and better prepare ourselves
from now for an uncertain future.

Tyupes of policies
When Mr. Mehta decided to get life insurance to protect himself and his family, he had
to be sure he was choosing the right policy. He had to buy a life insurance policy that
caters to his needs, as well as his sons education needs and his daughter's marriage
expenses. He was clear about that. These decisions could not be taken lightly anymore.
When he was faced with his own mortality, it gave him the push he needed to save
wisely and save for the future. His life insurance company helped him derive a formula
that best suited his requirements and the requirements he has for his children. The
various life insurance policies he could choose from are listed below:
Term Insurance
This type of life insurance policy is a contract between the insured and the life insurance
company to pay the persons/s he has given entitlement to receive the money, in the
case of his/her death, after a certain period of time. These policies can be taken for 5,
10, 15, 20 or 30 years.

Endowment Policy
In an endowment policy, periodic premiums are received by the insured person and a
lump sum is received either on the death of the insured or once the policy period
expires.
Money Back Life Insurance Policy
This policy offers the payment of partial survival benefits (money back), as is
determined in the insurance contract, while the insured is still alive. In case the insured
dies during the period of the policy, the beneficiary gets the full sum insured without the
deduction of the money back amount given so far.
Group Life Insurance
This is when a group of people have been named under a single life insurance policy. It
is popular for an employer or a company to add employees under the same policy. Each
member of the group has a certificate as legal evidence of insurance.
Unit Linked Insurance Plan
ULIPs (Unit Linked Insurance Plan) offer the insured the double benefit of protection
from risk and investment opportunities. ULIPs are linked to the market where the
insureds money is invested to help earn additional monetary benefits.

How much insurance do you need

So how much insurance does Mr. Mehta really need when he is taking a life insurance
policy? How much money should he put aside now to receive the right benefit for his
children's higher studies? How much should he save now to receive the right benefit for
his daughter's marriage? How much does he want his family to get as a benefit in case
of his untimely demise?
He has to consider his priorities. He has to take into account his standard of living, his
income, his spending habits, inflation etc. before he arrives at the benefit he wishes his
family to receive at the time of his death. This policy should also have a critical
illnessand disability rider to help in case of his hospitalization and medical expenses.
Amazing, how everything was in such clear view to Mr. Mehta. Usually, wisdom's advice
is that the death benefit from a life insurance policy should be approximately 8 to 10
times the annual income of the insured. It is wise to include foreseen liabilities and add
an inflation rate into the amount to get a more accurate figure.

He also has to decide how much he expects to receive for his children's higher
education. He has to factor in what his children's career inclinations are, what type of
college he wants his children to attend, whether he wants his children to study in India
or abroad, etc. In addition, he has to decide what he will have to spend on his
daughter's marriage.
No one can ever get exact figures, but it is important to draw a fair sketch of your future
financial goals and save according to them. You may not get it absolutely right, but long
term planning, as Mr. Mehta realised, definitely keep you prepared. Mr. Mehta knows
thatone rupee saved now is worth many more in the future.
Fortunately, Mr. Mehta had trained professionals to help him beat out all his
considerations and invest in life insurance to suit his future needs and wants. So Mr.
Mehta has now prepared himself much better for an unforeseen future. It will definitely
suit our purpose to do the same.

Life insurance terms

Accident
An accident is an unforeseen event or occurrence causing damage or injury to a person
Age Limit
It is the stipulated minimum and maximum ages below and above which the company
will not accept applications or may not renew insurance policies.
Agent
An insurance company representative who sells and services life insurance contracts
for the insurer; He is an intermediary between the insurer and the policyholder
Annuity Plan
An insurance contract that provides for an income for a specified period of time, such as
a number of years or for life
Application/Proposal Form
This is to be filled by the insurance companys agent and sometimes a medical
examiner including information given by the proposer. In addition, it has to be signed by
the proposer. It is one of the primary steps to get an insurance policy.

Assignment
An assignment is a legal transfer where a policyholder can transfer his interest to
another. It can be made by an endorsement on the policy document or by a separate
deed. Assignment can be either Conditional or Absolute.
Beneficiary
The beneficiary is the person or entity, named in the policy as the recipient of the life
insurance benefit in the event of policyholder's death.
Coverage
The amount of protection that the policyholder will receive based on the terms of the
policy.
Exclusions
These are stipulated in a policy as what will not fall under the insurance policy and
hence will not provide benefit to the insured or beneficiaries.
Fiduciary
A fiduciary is a person who has been legally trusted by a beneficiary. For example, if
abeneficiary legally documents that someone will act on his behalf when required.
Grace Period
Policy holders are expected to pay their premium on time. However, a certain additional
period is given to the insured. During this additional period, or grace period, the
policyholder is allowed to pay the premium without any interest. Therefore it is a
specified period after a premium payment is due, in which the policyholder may make
such payment, and during which the protection cover of the policy normally continues.
Insurable Interest
This means that the insured, or the beneficiary who receives the policy benefits, must
necessarily suffer an emotional or financial loss if an unforeseen or untouched event
occurs. Without insurable interest an insurance contract stands invalid.
Insurability
Insurability means all conditions that affect the health, susceptibility to injury and life
expectancy of an insured.

Insurance
It is to indemnify the insured, or beneficiary on the death of the insured, as protection
against unforeseen circumstances. (A system under which individuals, businesses, and
other entities, in exchange for a monetary payment (a premium), are guaranteed
compensation for losses resulting from certain perils under specified conditions.)
Insured
The insured is the person who is covered in the insurance policy.
Lapsed Policy
A policy which has been terminated for non-payment of premiums. A policy lapses
usually when the premium due is not paid even after the grace period.
Maturity Date
The maturity date is the date when the amount paid towards the life insurance policy is
given to the policy holder once the term of the policy ends.
Maturity Claim
The amount given to the insured at the end of the maturity period is called the
maturityclaim.
Moral Hazard
An insurance policy is based on the need for insurance, the health and personal habits
of the insured, the insureds standard of living and income. The moral hazard is the
decision of the insurance company to accept the risk and issue a policy after taking the
factors mentioned above into consideration.
Nomination
This is when the policy holder or insured officially authorises another person to receive
any monetary benefits of the policy. The authorised person is the Nominee.
Premium
The amount paid by the insured, either in lump sum or in periodic amounts, to the
insurance company under the life insurance policy.

Reinstatement
Reinstatement of a policy is the act of putting a lapsed policy back into force, after
thegrace period has expired. The company may require evidence of insurability and will
always require the insured to pay the total amount of overdue past premiums.
Surrender Value
The surrender value it the amount paid to an insured who wishes to terminate the policy
before its maturity date.
Vesting Age
The age at which the insured starts receiving a pension from the insurance company in
an insurance-cum-pension policy.

Channels of distribution
Mrs. Sharma had just lost her husband to a terminal illness. He was wise to invest in life
insurance to secure her and their 4 year old son. Mrs. Sharma realised, through her
husbands wise financial planning, that life insurance really was a life saver.
Although she had a decently paying job, she never quite had to worry about financial
planning while her husband was alive. Well, it was time for her to get a life insurance
policy of her own to secure her future and the future of her son. For the first time, she
had to start thinking of long term savings and the protection of her loved ones future.
She was clear that life insurance is a very healthy option. The question, however, was
how does she get life insurance? Whom does she approach? Can she invest in a policy
herself or does she need to do it through an agent? There was no time for her to just sit
and wonder. She started her research on the Internet, took advice from her friends and
spoke to other who already had life insurance. She had to get the best policy to suit her
long term needs and the future she envisioned for her young son. With all the
information at her disposal, she had chosen the course she was going to take. She
started to look at the information on how to choose the right company and about the
various channels of distribution, deciding on the best channel to use.
Mrs. Sharma reads:
Life insurance products are sold by companies that have been licensed by the
Insurance Regulatory and Development Authority (IRDA). The products are sold
through distribution channels that are licensed by IRDA as well. These individual
agencies, brokers, corporate agencies or even banks have to follow certain codes of
conduct when dealing with and helping a person choose a suitable policy.

It is important to select a life insurance company which is financially solid, keeps its
customers interests at the forefront and provides good quality service.
The second important thing to do is to select a suitable channel to invest in life
insurance. The representative of the channel should assess the various needs of the
individual that can be met by life insurance and help the person make decisions like
how much to protection cover is required, what is the most suitable policy, the most
suitable premium payment options.

Things you must know about intermediaries

The information Mrs. Sharma just read gave her a lot of insight into how she should
select a good company and a good channel of distribution. Well, if she was going to put
her money into a long term plan to derive certain benefits for herself and her son, she
couldn't just invest with anyone. It had to be a trusted company and a dependable
intermediary, with the experience to identify her needs and helping her plan for long
term savings and the protection of her loved one's future. Flipping through some more
information Mrs. Sharma reads further:
'Some important things you should know about your life insurance agent:
It is essential to choose a trusted channel of distribution that has received a
legitimate license from the IRDA.
Always ask the agent for proper identification. Get information about the agent's
company, the agent's manager and the address and contact details of the office.
Always seek references for selecting the right life insurance agent by simply
asking around, such as among family members, trusted friends, colleagues or business
partners.'
Mrs. Sharma had a clearer picture of life insurance and what to look for in a channel of
distribution. She was now more confident that she could choose a good channel of
distribution.
Let's learn, as Mrs. Sharma has, to be wise when we choose a channel of distribution
for our life insurance policy. We are investing for the future, we are securing the lives of
our children, we are preparing for unforeseen situations that might leave us financially
crippled.
Must Do Steps While Buying Insurance

Of course, now that Mrs. Sharma was gathering all this information her interest grew
further. She continues reading:
What are the 'must do' steps to buy life insurance?
Select a reputable insurance company that is financially solid, keeps its
customers interests at the forefront and provides good quality service.
Check your agents credentials like his ID, license, company, etc.

o
o
o
o

Talk to your agent and make sure that the agent gauges your your life insurance
needs by carefully assessing the gap between your assets and liabilities, your annual
income and standard of living, your spending habits and your long term objectives and
goals.
The agent should do a risk profiling exercise to understand and suggest what
kind of plan suits your need - a traditional insurance plan or Unit Linked Insurance Plan.
In case, you are offered a ULIP, the agent should advise you on what kind of an
investment fund fits your profile.
Decide, with the help of the agent, what is the best insurance policy based on
your needs, future plans, standard of living, income and liabilities, expected benefit for
yourself and your dependents, etc.
Ask your agent important questions like
"What would I have to pay for insurance?"
"What are the inclusions and exclusions in the policy?"
"What riders can I add to my policy?"
"What are the various premium payment options and modes?"
Fill in the proposal form yourself in entirety and make sure you provide all the
required details without leaving out any information. It is important to disclose all the
information. Do not withhold or provide wrong information regarding your health,
financial condition, lifestyle, occupation and other insurance policies as this can lead to
the cancellation of the contract in future and non payment of claims
Provide your agent with all the documents that are required to purchase a policy.
It is always advisable to opt for ECS when choosing a premium payment option
as this reduces any chances of renewal premium payments getting missed out
Make sure that the policy is delivered to you within the period specified by the
agent. In case the policy is not delivered, you should get in touch with the insurance
company immediately.
Once you get the policy, make sure that you read and fully understand the terms
and conditions listed in the policy during the stipulated 'free look period'. If you have any
doubts or concerns, you should get in touch with the agent or the insurance company.
Mrs. Sharma has learnt not only how to choose the right channel of distribution, but also
the right steps to follow when she buys insurance. Through Mrs. Sharma's example, we
now understand how important it is to do adequate research and take enough time
tofind the right person, follow the right procedure and select the right policy that
meets your needs so that you can ensure that your and your loved ones' future is
secured.
Questions You Must Ask Before Buying Life Insurance
The right advice makes all the difference
Buying Life insurance is one of the most important decisions of our lives.

We believe that you must be aware of everything that you need to know about your life
insurance policies. As a prospect who wants to buy a life insurance policy, you must be
clear about the policy details, its features and benefits before you actually decide to buy
a life insurance policy.
Here are 5 questions that you MUST ask a life insurance agent before buying a
life insurance policy
Is the Agent Advisor qualified or authorized to suggest me a life insurance
solution?
As a first step, you should ask your insurance agent to provide his/her Agent License
Number, and details pertaining to it such as, when was it issued and when is it expiring.
This will give you an idea of how many years of experience he or she has in offering life
insurance advice and solutions. You should also check whether he or she is a full-time
or part-time agent.
All insurance agents have a reporting manager on the rolls of an insurance company.
Write down and keep record of the contact details of the reporting manager and the
branch office out of which the agent advisor operates.
What are my financial needs current and future?
The first thing you should ensure is that the agent advisor is a problem-solver; one who
can understand and fulfill your and your family's financial security and long-term wealth
creation needs.
If your agent does not ask probing questions and provide you life insurance solutions
based on the needs derived from your answers, you may need to look for another
agent.
The Agent Advisor, before recommending a life insurance plan, should gauge your
needs by carefully assessing the gap between your assets and liabilities, your annual
income and standard of living, your spending habits and your long term objectives and
goals.
The agent should do a need analysis exercise to understand and suggest what kind of
plan suits your need and accordingly recommend you a term, whole life, endowment,
health or a Unit Linked Plan.
What is the product that will suit my needs the best and what are its benefits?
Once the agent does a need-based analysis for you and suggests suitable life
insurance product(s) that will cater to your specific needs, you should ask him or her 3
key things:

How much premium do you pay?

What you get in return in the form of sum assured and cash or fund value at the
end of the policy term, depending upon the type of life insurance product chosen?
What are the various inclusions and exclusions of the life insurance product
chosen?
The agent should be able to spell these out very clearly and in writing.
Additional details to be asked for include payment paying tenure, mode of payment,
minimum years of lock-in period (as applicable), flexibility in partial cash
valuewithdrawal, etc. In the case of health insurance, the network of hospitals covered
under the plan should be shared with by the agent advisor.
What are the differentiators of this product?
Always ask the differentiating factors, comparing the agent's product offering with other
similar life insurance products offered in the market. This will support his or her claim of
suggesting the best product solution. Doing so will also be a check on his industry
knowledge and product awareness.
Moreover, life insurance companies are known to offer a wide range of life insurance
products. The agent needs to have a thorough knowledge of all the life insurance
products offered by the company. Moreover, he or she should be informed about the
competitor's products so as to provide unbiased and meaningful recommendations,
regardless of how much he or she stands to gain by way of commissions.
One should also check with the agent advisor on the flexibility offered by the various
product riders that may be offered along with a life insurance product, as the riders
come at a comparatively low cost while enhancing the life cover component of a life
insurance plan.
Additional details
Always ask your agent to provide signed benefit illustrations of the returns promised.
Under the Insurance Regulatory and Development Authority (IRDA) rules, an agent
cannot show you benefit illustrations with more than an optimistic estimate of 10% and a
conservative estimate of 6%.
Have a question for us? Get the right answer from one of our advisors in your city
today.
Points that you should clarify with your agent after buying the policy.
Ideally, the agent should answer all the queries a policyholder may have before he or
she actually buys the policy.

However, life insurance is a long-term contract and therefore it becomes even more
important both from the policyholder and the company's perspectives to service the
policy well.
After the policyholder receives his/her policy pack, he /she must go through the same in
detail and check whether all the features of the product/policy have been mentioned as
were promised to him/ her during the solicitation.
In case of any discrepancy, there is a 15-day free look period within which a
policyholder can choose to return the policy and there is refund of the premium paid
post the deduction of applicable charges.
What to do if you think a product has been mis-sold to you?
As stipulated by Insurance Regulatory and Development Authority (IRDA), a life
insurance company provides a free look period of 15 days to a policyholder, during
which a policyholder can review the policy and upon not being satisfied basis the
benefits and features of the product, can choose to return the policy and there is refund
of the premium paid post the deduction of applicable charges.
At Max Life Insurance, we have a dedicated Grievance Redressal Cell to examine
customer issues and provide an impartial resolution in case the policyholder has a
concern.
IRDA has also set-up various Ombudsmen offices across the country, which take up
policyholder complaints.
Want to know more about policies & agents?
Speak to one of our Sachche Advisors for the right advice

What To Look For In Your Insurance Contract

What To Look For In Your Insurance Contract
Life insurance is the only financial tool which offers the triple advantage of risk
coverage,long term savings, and tax benefit. It offers financial protection to an individual
after taking into account the present and future value of his assets and liabilities.
However, consumers need to develop a better understanding of the life insurance
products that they buy.
There are a number of things that you must understand regarding your life insurance
policy and this document is a guide to help you check the same.

Mentioned below are 10 key parameters to weigh once you receive the policy
document.
Verify personal details
Personal data provided to the life insurance company forms a very important part for
policy servicing and settlement of all claims.
Please make sure that all personal details such as your name, age, address, etc. are
mentioned correctly.
Moreover, do be certain that all aspects related to personal habits or health details are
mentioned correctly as per the disclosures made by you in the proposal form.

Analyze the benefits

The benefits of your life insurance policy must correspond with your long-term goals.
After the receipt of policy document, go through the features and benefits of the product
and check if they match with promises made during the purchase. Cross-check features
such as sum assured, premium amount, flexibility of the plan, etc.

Check the riders

In addition to life coverage, you may have purchased add-on covers known as "riders"
for other types of contingencies. Go through the insurance contract to understand
the rider coverage.

Consider the payment tenure

Please check for how long you need to pay premiums and also what mode of payment
you may have chosen, for example half yearly, quarterly, annual, etc.
You may sometime get a wrong advice like "you need to pay for only 3/5 years". Please
do not fall for such advice. Life insurance is a long-term savings and protection tool and
its benefits can be seen only if one buys it for the long-term.

Authenticate the returns

Do not blindly believe the returns promised. Once you get the policy document, check
out the benefit illustrations of returns.
The illustration shows what would be your illustrative benefits in a hypothetical situation
if your investment were to provide a gross return of 6% and 10%, as per the IRDA's
mandate. Study carefully what is guaranteed and what is not.

Comb through the policy contract

In addition to the benefits specified in policy documents, it is necessary to carefully read

the terms and conditions of the policy. In case you find any difficulty in understanding
any aspect of terms and conditions, please check with the life insurer the impact of
those terms and conditions.

Confirm surrender charges

Very rarely, a situation may arise where you face a cash crunch and need to surrender
your policy or make partial withdrawals. For times like these, make sure to examine the
exact surrender charges mentioned in the policy document, so that you can plan
finances and minimize losses accordingly.

Examine exclusions
Exclusions in the policy define aspects or situations that will not be included in the
coverage. An exclusion that one is not aware of can make the cover redundant.
Read the exclusions carefully. These may include suicide, death which occurs during
the commission of a crime, acts of war or terrorism, death due to a natural calamity, etc.
Some exclusion may be only for a specified period and may be called restrictions
instead.

Claims settlement process

Check if the nominee's details are captured correctly. You have the option of including
one or more nominees and specify their share ofclaim. The policy should also list down
all details on how to file aclaim.

What to do when you think a life insurance policy has been mis-sold
The life insurers provide a free-look period of 15 days to the policyholder during which a
policyholder can review the policy document and if he/she is not satisfied, then he/she is
free to return the policy and claim refund of the premium paid post deduction of
applicable charges.
IRDA has also set-up various Ombudsmen offices across the country, which can take up
policyholder grievance and complaints.

Services You Should Expect From A Life Insurance Company Or Intermediary

Mrs. Sharma's task did not end when she selected her agent. Her bank of information
emphasized equally on what she should expect from her life insurance agent before and
after she takes a policy. Her research offered her more information:
What should I expect from my life insurance agent?
An agent should possess a valid license, identity proof and business card of the
company represented.
An agent should provide you with information on all the life insurance products
available.
An agent should understand your needs based on a judgement of your asset
liability gap, annual income, standard of living and age and recommend a solution that
fulfils your long term savings and protection goals.
The agent should do a risk profiling exercise to understand and suggest what
kind of plan suits your need - a traditional insurance plan or Unit Linked Insurance Plan.
In case, you are offered a ULIP, the agent should advise you on what kind of an
investment fund fits your profile.
The agent should inform you about the premium you will have to pay for your
policy and you need to be informed of the various premium payment terms and options
available to you.
Your agent has to inform you of all the information required on the proposal form
and the importance of the information for the purchase of the insurance contract.
Your agent should also advise you to provide all necessary correspondence
details like complete postal address, primary and alternate contact numbers, email ID,
etc.
Your agent has to clearly mention to you the importance of disclosing vital
information pertaining to your health, income, lifestyle, occupation and other insurance
policies and the consequences of non-disclosure.
Your agent should provide details of all the documents that are required at the
time of filling the proposal form.
The agent has to advise you to appoint a nominee, who will ensure that the terms
in the policy are carried out in your unfortunate absence.
The agent should inform you of the various means of communication that you
can use to contact the insurance company for matters related to your policy and for
policy servicing.
The agent must provide assistance and help arrange for all the medical tests and
other related formalities.
The agent should guide you on the various tax benefits that you can avail from
your insurance policy.
The agent should visit you at least once a year and conduct an assessment or
review of your other needs that might have arisen in due time and provide you solutions
accordingly.
The agent should help you with respect to any changes that you want to make to
your policy, e.g. changing bonus options, switching and redirecting premiums and assist
you in taking a loan against your policy.

It is the duty of an agent to remind you to pay your premiums on time to avoid
your policy from lapsing.
The agent should provide assistance to revive your lapsed policy, if required.
The agent must provide the necessary assistance to the beneficiary in complying
with the requirements to settle a claim.
This information may seem like an instruction booklet with a lot of 'do this' and 'do that'.
However, the need for this information is extremely important. Without this information
we will all be groping in the dark. Through the research Mrs. Sharma has done, she has
provided us with the information we require to make calculated and wise decisions for
our own long term savings and protection goals.
Things You Must Know About Taking Claims

It is one thing to pay for a life insurance policy to secure your long term plans. It is
something entirely different to learn what is needed to claim benefits from your life
insurance policy. Mrs. Sharma has to now educate herself on what she has to do in the
event of a claim. This could be claiming benefit on her critical illness rider, for her sons
education funds, at the time of expiration of her policy, etc. She reads on....
What should I do when I have to make a claim?

First call your insurance agent to fill up the required form. Always keep your
policy with you when you are entering details to file the claim.

In case of the death of the insured, certified copy of the death certificate should
be available. It should be submitted with the claim form and other documents listed in
the Policy Document.

Once the claim has been submitted, provide all the relevant documents
/information as sought by the Insurance Company. This will help in faster settlement of
the claim.

The claim settlement can be received in a various number of ways. This depends
on the type of life insurance policy taken by Life Assured. The insurance agent will
assist in the claim settlement as instructed by the beneficiary or insured.

The monetary amount from the claim can be received in various ways:
o
In a lump sum so it can be used immediately for clearance of the
deceased insureds debts, etc. Lump sum amounts offer a lot of flexibility.
o
The claim can be received in instalments, which may be the agreement in
the contract. Here regular amounts will be given to the beneficiary by the insurance
company at prefixed intervals.
o
The insured or beneficiary may put that money back into another
insurance policy.
Things are finally clear to Mrs. Sharma and she is set to purchase life insurance for her
future security and the security of her son. Mrs. Sharma has certainly taught all of us
important lessons in our own attempt to choose the best person to offer us the best
suited life insurance.
Be wise! Be prepared! Be secure!

Policy holerds rights

For the benefit of policyholders, we hereby state certain important rights that
policyholders have under law:
Point Of Sale
Policyholder is entitled to all the material information in respect of a proposed cover to
enable him to decide on the best cover that would be in his or her interest;
Where a policyholder does not fill up the proposal or connected papers, he is entitled to
a certificate from an agent at the end of proposal form stating that the contents of form
have been fully explained to him and that he has fully understood the significance of the
proposed contract.
Proposal For Insurance
A proposal for grant of cover must be evidenced by a written document. It is the duties
of the insurer to furnish to the insured free of charge, within 30 days of acceptance of a
proposal, a copy of the proposal form.
Where a proposal form is not used, insurer is to record the information obtained orally or
in writing and confirm it within 15 days with the proposer and incorporate the information
in its cover note or policy.
A policyholder is entitled to a decision on its proposal, after the same has been
processed within a period of 15 days from the receipt of proposals by insurer.
Claims Procedure
Policy contract is to state primary documents which are normally required to be
submitted by a claimant in support of a claim;
Insurer is to raise any query or requirement of additional documents all at once and not
in piecemeal within 15 days of receipt of the claim.
A claim is to be paid or disputed giving all relevant reasons within 30 days from the date
of receipt of all relevant papers and clarifications required.
Subject to any law in force, where a claim is ready for payment but payment cannot be
made due to any reasons of a proper identification of payee the life insurer shall hold
the amount for the benefit of payee and such amount will earn interest at the rate
applicable to savings bank account with scheduled bank.
For information on other rights available to policyholders, you may log on
tohttp://www.irda.gov.in

Role Of IRDA

Role of the Insurance Regulatory and Development Authority (IRDAI)

The Insurance Regulatory and Development Authority(IRDAI) was constituted to
regulate and develop insurance business in India. As a key part of its role, it is
responsible to protect the rights of policyholders. In order to create awareness about
IRDAI, it's role, duties and responsibilities are stated here under:
IRDAI provides a certificate of registration to a life insurance company.
IRDAI is responsible for the renewal, modification, withdrawal, suspension or
cancellation of this certificate of registration.
IRDAI frames regulations on protection of policyholders' interests.
It offers policyholders the right to voice their complaints against insurers or
insurance companies.
The IRDAI has set up the grievance redressal cell to take up the complaints of
the policyholder.
It specifies the requisite qualifications, code of conduct and practical training for
intermediaries or insurance intermediaries and agents.
It specifies the code of conduct for surveyors and loss assessors;
It promotes efficiency in the conduct of insurance businesses;
It promotes and regulates activities of professional organisations connected with
life insurance;
It levies fees and other charges to carry out the purposes of the IRDAI Act;
It can call for information from, undertake the inspection of, conduct enquiries
and investigations including the auditing of insurers, intermediaries, insurance
intermediaries and other organisations connected with the business of life insurance;
It specifies the form and manner in which books of account should be maintained
and statements of accounts should be rendered by insurers and other insurance
intermediaries;
It regulates the investment of funds by insurance companies;
It regulates the maintenance of margins of solvency;
It adjudicates disputes between insurers and intermediaries or insurance
intermediaries;
It specifies the percentage of premium income of the insurer to finance schemes
for the promotion and regulation of certain specified professional organisations;
It specifies the percentage of life insurance business to be undertaken by an
insurer in the rural or social sector; and
It exercises any other powers as may be prescribed
To know more about the IRDAI, please visit http://www.IRDAI.gov.in.
Insurance & Tax Savings

How will my savings in a life insurance plan help my tax situation?

What follows below will give you a good idea of how your investments not only protect
you and your family; they also protect your taxes.
Tax Slabs
This explains how the various tax brackets in India work and how much tax relief we are
all eligible for. The new tax structure was initiated on 1 st April 2014.
The tax structure is as follows:
Tax slabs for Financial Year 2014-2015 (Assessment Year
2015-2016)
For Individuals below 60 years of age
Income Level

Tax Rate

Upto Rs. 2,50,000

Nil

Rs. 2,,50,001 - Rs. 500,000

10%

Rs. 500,001 - Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

Tax slabs for Financial Year 2014-2015 (Assessment Year

2015-2016)
For Senior Citizens aged 60
years
or above but less than 80 years

For Very Senior Citizens aged

80 years or above

Income Level

Tax
Rate

Income Level

Tax
Rate

Upto Rs. 300,000

Nil

Rs. 300,001-Rs.
500,000

10%

Upto Rs. 500,000

Nil

Rs. 500,001Rs.10,00,000

20%

Rs. 500,001Rs.10,00,000

20%

Above Rs. 10,00,000

30%

Above Rs. 10,00,000

30%

Surcharge on Income Tax:

From Financial Year 2013-14, Surcharge is applicable @ 10% on tax payable in case of
an individual if total income exceeds Rs. one crore
Education Cess & Secondary & Higher Education Cess on Income Tax
Education Cess @ 2% & Secondary & Higher Education cess @ 1% will be payable on
the amount of income tax.
Service Tax
All premiums and charges are subject to applicable taxes including service tax under
the prevailing tax laws. With effect from June 1, 2015, Service Tax rates has been
changed to 3.5% on First year premium and 1.75% on subsequent year premium for
traditional endowment & annuity products and 14% for ULIP, Term, Health products &
Riders. In case of surrender of policies, service tax is charged at 14% on surrender
charges.
Disclaimer

The above are extracts from the Income Tax Act1961. Please note that tax laws
are subject to change and hence before placing reliance on the above, the latest
version of the above section should be checked. It should also be noted that the change
in tax laws could have retrospective effect also.
This information should not be construed as expert tax, legal or investment
opinion from Max Life Insurance Company Limited. Max Life Insurance Company
Limited would not be responsible in any manner for decisions made on the basis of
above information.
Please consult your tax advisor for claiming tax benefits on insurance products.
Sec 194DA of Income Tax Act 1961 provides for deducting tax (TDS) on
policyholders payout under life insurance policy w.e.f 01 Oct 2014. TDS if applicable will
be deducted at 2% if valid PAN is available. In case valid PAN is not available, rate of
TDS would be 20%.
Tax benefits

Life insurance policies can be useful tax planning tools, because the policy holder is
eligible for tax benefits under the Income Tax Act 1961 (Act). Though there are multiple
modes for saving tax, life insurance is one of the most effective tax planning instrument.
Plans from Max Life Insurance can be used for protection, long term savings and tax
planning. There are two kinds of income tax benefits available to individuals with
respect to long term savings being made in Life Insurance policies:
Deductions
80C/80CCC:
Benefit is available to Individual assessee and Hindu Undivided
Family assessee.
In case of individual assessee - Himself/herself, spouse,
children of such individual
In case of HUF assessee - any member of HUF
If the amount of premium paid in a financial year for a policy is in
excess of 20% of the actual capital sum assured, then deduction will be allowed only for
premiums upto 20% of the sum assured.
For insurance policies issued on or after April 01 2012, deduction is
allowed for only so much of the premium payable as does not exceed 10% of the actual
capital sum assured.(15% of actual capital sum assured in case of person with severe
disability or specified ailment).
Above benefits shall be reversed if the policy is terminated/cease to
be in force within 2 years for traditional products and 5 years for ULIP products after the
date of commencement of policy.
Sec 80CCE - Maximum amount of deduction that an assessee
can claim under Sections 80C, 80CCC will be limited to Rs. 150,000.
80D
Benefit is available to Individual assessee and Hindu Undivided
Family assessee.
In case of individual assessee - Himself/herself, spouse,
dependent children and parents of such individual
In case of HUF assessee - any member of HUF
The qualifying amounts under Section 80D for self, spouse and
dependent children is upto Rs. 15,000/- and additional deduction upto Rs. 15,000/- for
the parents. However, a higher amount of upto Rs. 20,000/- is permitted for parents, if
they are senior citizens. Assessee is allowed to make any payment on account of
preventive health checkups upto Rs. 5,000 within prescribed overall limit.
80DD: Premiums paid for disabled dependent are eligible for deduction up
to Rs.50,000 every year. A higher deduction of Rs. 75,000 shall be allowed, where such
dependent is a person with severe disability.
Exemptions
10 (10D): Any sum received under a life insurance policy, including the
sum allocated by way of bonus on such policy will be exempt from tax. However, this
rule does not apply to following amounts:
Sum received under Section 80DD(3), or
A sum received under a Keyman Insurance Policy, or

Any sum received other than as death benefit under an insurance

policy which has been issued on or after April 1 2003 and if the premium payable in any
of the years during the term of the policy does not exceed 20% of the sum assured. For
insurance policies issued on or after April 01 2012, exemption would be available for
policies where the premium payable for any of the years during the term of the policy
does not exceed 10% of the actual capital sum assured.(for policies issued on or after
01 April 2013,15% of actual capital sum assured in case of person with severe disability
or specified ailment).
FAQs on Tax Benefits

Is there any Tax Benefit on the premium I pay for my life insurance policy?
Deduction is available under Section 80C of Income Tax Act, 1961 for the premium paid
on life insurance policies with a maximum annual ceiling of Rs. 1,50,000, irrespective of
the Gross total income (subject to fulfillment of certain conditions).

After the maturity of my policies, will the maturity proceeds be taxable?

Under section 10(10D) of Income Tax Act, 1961 maturity benefits are tax free in the
hands of policyholders if, at any point of time during the policy term, premiums paid in
any year do not exceed 20%of the basic Sum Assured. For policies issued on or after
01st April 2012 premium should not exceed 10% of minimum sum assured at any point
of time during the term of policy.

I pay the premium on policy for my wife/husband/child, can I claim Tax

benefits?
Life insurance premium paid by you for your wife/husband/child's policy qualifies for a
deduction under Section 80C of the Income Tax Act, 1961.

If I stop paying premiums on my life insurance or pension policies, can

I claimTax Benefits?
If you stop premium payments of your policy, it amounts to discontinuation of the policy
and no tax benefits are available in respect of such policy.

If I purchase a Unit Linked Insurance Plan (ULIP) and I choose to

discontinue my policy, can I claim any tax benefits?
If you chose to discontinue a Unit Linked Insurance Plan before paying for 5 years from
commencement of policy, you are not entitled to any tax benefits in the previous year in
which the taxpayer terminates the plan. The quantum of deduction already taken in the
preceding years would be deemed as the income of the taxpayer in the year in which
policy is terminated.

What are the Tax benefits available on medical insurance premiums?

In computing the total income of an individual or HUF, deduction is allowed for any sum
paid by any mode other than cash out of his income chargeable to tax
o
to effect or to keep in force an insurance on the health of the individual, his
or her spouse or dependent children or member of HUF, and

to effect or to keep in force an insurance on the health of the parent or

parents of the individual
Deduction amount - Up to Rs. 15,000 for self, spouse, children and Rs. 15,000 for
parents. (Rs. 20,000 for parents if they are senior citizens). Assessee is allowed to
make any payment on account of preventive health checkups upto Rs. 5,000 within
prescribed overall limit.
Is Service Tax applicable on premiums paid on insurance products?
All premiums and charges are subject to applicable taxes including service tax,
education cess and secondary & higher education cess as applicable under the
prevailing tax laws. With effect from April 1, 2012, Service Tax Rate has been changed
to 3.09% on first year premium and 1.545% on subsequent year premium for traditional
endowment & annuity products and 12.36% for ULIP, Term, Health products & Riders.
What are the Tax Benefits available on pension plans?
Under section 80CCC, you can avail benefit of up to Rs. 1.0 lakh on the premium paid
towards a pension plan. On maturity, one-third of the maturity amount withdrawn is taxfree. Monthly pension receipts will be treated as income in the hands of the assessee
and taxed accordingly.
Plan Your Tax in advance
ax planning is very important. To reduce your tax liability you should invest in
instruments that offer you an additional Rs. 1,50,000 tax benefit in addition to basic tax
relief. Well, a life insurance policy offers you one such avenue to claim tax benefits and
also offers you and your family protection against any unforeseen circumstances.
If you make your investments at the beginning of the year, and then take into account
the tax deductible, you can easily decide your monthly and yearly expenses. It is clever
to consider tax planning within the scope of your financial planning as neither one can
be considered in isolation.
Insurance Glossary
Accident
An accident is an unforeseen event or occurrence causing damage or injury to a person
Age Limit
It is the stipulated minimum and maximum ages below and above which the company
will not accept applications or may not renew insurance policies.
Agent
An insurance company representative who sells and services life insurance contracts
for the insurer; He is an intermediary between the insurer and the policyholder

Annuity Plan
An insurance contract that provides for an income for a specified period of time, such as
a number of years or for life
Application/Proposal Form
This is to be filled by the insurance companys agent and sometimes a medical
examiner including information given by the proposer. In addition, it has to be signed by
the proposer. It is one of the primary steps to get an insurance policy.
Assignment
An assignment is a legal transfer where a policyholder can transfer his interest to
another. It can be made by an endorsement on the policy document or by a separate
deed. Assignment can be either Conditional or Absolute.
Beneficiary
The beneficiary is the person or entity, named in the policy as the recipient of the life
insurance benefit in the event of policyholder's death.
Coverage
The amount of protection that the policyholder will receive based on the terms of the
policy.
Exclusions
These are stipulated in a policy as what will not fall under the insurance policy and
hence will not provide benefit to the insured or beneficiaries.
Fiduciary
A fiduciary is a person who has been legally trusted by a beneficiary. For example, if
abeneficiary legally documents that someone will act on his behalf when required.
Grace Period
Policy holders are expected to pay their premium on time. However, a certain additional
period is given to the insured. During this additional period, or grace period, the
policyholder is allowed to pay the premium without any interest. Therefore it is a
specified period after a premium payment is due, in which the policyholder may make
such payment, and during which the protection cover of the policy normally continues.
Insurable Interest

This means that the insured, or the beneficiary who receives the policy benefits, must
necessarily suffer an emotional or financial loss if an unforeseen or untouched event
occurs. Without insurable interest an insurance contract stands invalid.
Insurability
Insurability means all conditions that affect the health, susceptibility to injury and life
expectancy of an insured.
Insurance
It is to indemnify the insured, or beneficiary on the death of the insured, as protection
against unforeseen circumstances. (A system under which individuals, businesses, and
other entities, in exchange for a monetary payment (a premium), are guaranteed
compensation for losses resulting from certain perils under specified conditions.)
Insured
The insured is the person who is covered in the insurance policy.
Lapsed Policy
A policy which has been terminated for non-payment of premiums. A policy lapses
usually when the premium due is not paid even after the grace period.
Maturity Date
The maturity date is the date when the amount paid towards the life insurance policy is
given to the policy holder once the term of the policy ends.
Maturity Claim
The amount given to the insured at the end of the maturity period is called the
maturityclaim.
Moral Hazard
An insurance policy is based on the need for insurance, the health and personal habits
of the insured, the insureds standard of living and income. The moral hazard is the
decision of the insurance company to accept the risk and issue a policy after taking the
factors mentioned above into consideration.
Nomination
This is when the policy holder or insured officially authorises another person to receive
any monetary benefits of the policy. The authorised person is the Nominee.

Premium
The amount paid by the insured, either in lump sum or in periodic amounts, to the
insurance company under the life insurance policy.
Reinstatement
Reinstatement of a policy is the act of putting a lapsed policy back into force, after
thegrace period has expired. The company may require evidence of insurability and will
always require the insured to pay the total amount of overdue past premiums.
Surrender Value
The surrender value it the amount paid to an insured who wishes to terminate the policy
before its maturity date.
Vesting Age
The age at which the insured starts receiving a pension from the insurance company in
an insurance-cum-pension policy.
NOTE: The above definitions are only explanatory in nature. If any of the above terms
have been defined in the policy contract, then the policyholder should consider the
definition as specified under the policy contract.
Frequently Asked Questions
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What is Life Insurance?

Life Insurance is a contract between a person and a life insurance company to
reimburse his/her beneficiary (usually a spouse or child) at the time of his/her demise.
The reimbursement amount is pre-decided based on the terms of the policy.

Why is Life Insurance useful?

Life Insurance is useful to provide your family with financial security in case
circumstance throws you into a situation where you cannot earn or in the case of your
premature demise. It helps keep your family in a position to enjoy financial security even
after your demise.

Life insurance policies also offer you the ability to save, which helps provide financial
stability.

Is Life Insurance necessary?

Life Insurance is not necessary but is a smart investment to make, especially if you
have a dependent spouse and children. It offers your family the benefit of financial
support even after your death. In addition to this, it offers a number of advantages and
provides a lot of flexibility on your investment. For example, you can add acritical
illness rider to cover the cost of expensive for surgeries and operations; you can
withdraw a part of your maturity benefit in case of an emergency or for your child's
education or marriage, etc. Life Insurance policies come with a lot of flexibility.

How do I decide on the amount of life insurance I need?

The amount that you receive on maturity depends on the amount of premium you pay.
The maturity benefit you need depends on your standard of living, income, spending
habits, etc. You should aim to receive a maturity amount equal to 8 to 10 times your
annual salary.

How much does life insurance cost?

The cost of life insurance depends on the type of policy you take, the amount of
premium you pay, the sum insured, your age and the benefits you expect to receive
when your policy matures.

Do I have different options to pay my premium?

Yes, there are options available to you to pay your premium. You can pay your premium
monthly, quarterly, half-yearly or yearly. You can also pay it in one lump sum. However,
a monthly premium is the most common because the amount is relatively small and it is
easier to monitor and be prepared for a more frequent premium payment.

What if I don't pay my premium on time?

You usually get a grace period, up to 30 days, to pay your premium once it falls
overdue. If you still dont pay you premium after the grace period your policy stands
defunct and you cannot claim any benefits from your policy.
However, you can revive your policy once you pay all your overdue premiums and you
will again start receiving the benefits of the policy.

What are the advantages of investing in a life insurance policy?

In addition to giving you, and your family, financial protection investing in life insurance
offers many other benefits.
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Encourages the habit of saving so you are provided with financial security
at the time of retirement or your family is provided with financial assistance at the time
of your demise.
Through a Life Insurance policy you can claim a tax benefit under section
80C of the Income Tax Act, up to Rs. 1,00,000.
The maturity benefits from a life insurance policy are tax free under
section 10(10D) of the Income Tax Act.
You can invest in a policy that offers you a loan against your amount
invested, if you need financial assistance in the case of an emergency. You can also
take a loan from a bank or financial institution and put your policy up as collateral for the
loan.
You can invest in a policy that allows you to withdraw a part of your
investment at the time of a financial emergency.
You can add a critical illness rider to your policy, which offers you medical
aid in case you are inflicted by a serious illness or injury. Under this rider you can
alsoclaim a tax benefit up to Rs. 15,000 as specified in section 80D of the Income Tax
Act.
You can also invest in policies in the name of your spouse and children
and claimtax benefit, under section 80C, on those policies as well.
So I wont be able to claim tax benefits if I stop paying premiums on my life
insurance or pension policies, right?
Correct. If you stop premium payments of your policy, it amounts to discontinuation of
the policy and you cannot claim any tax benefits. However, if you discontinue paying
your premiums after 2 years from commencement of your policy, tax will not be
deducted on premium paid in the year when your policy ends. The amount of tax
deducted on the premium paid in the preceding year, is taxable in the year when policy
terminates.

What about with a Unit Linked Insurance Plan (ULIP). Can I claim tax benefits if I
discontinue my ULIP policy?
In the case of a Unit Linked Insurance Plan you are not entitled to receive any tax
benefits if you stop paying premiums earlier than 5 years from the commencement of
your policy.

What about tax benefits on medical insurance premiums?

In calculating your (individual or HUF) total income, any sum paid by you, other than in
cash, out of your income that is chargeable to tax

to effect or to keep in force insurance for your health or the health of your
spouse or children and
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to effect or to keep in force an insurance on the health of your parent or
parents
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up to Rs. 15,000 for each person mentioned in (i) and (ii) in the previous year and in
case the person is a senior citizen up to Rs. 20,000 for each person mentioned in (i)
and (ii) in the previous year shall be allowed a deduction.

Can I claim tax benefit on the interest on a loan taken against an insurance policy
for the purchase or construction of a house?
Interest on loans taken against an insurance policy is allowed as a deduction from
income chargeable under the head Income from house property provided the amount
of loan is used by the policyholder to acquire, to construct, to re-construct, to repair or to
renew any property.

What are the Tax Benefits in case I opt for a Pension Plan?
You can claim tax benefits for a Pension Plan under Section 80CCC if you have paid
premiums. You will receive pension from a fund referred to in Section 10(23AAB). You
will be able get a deduction of up to Rs. 100,000 on your total annual income.

What happens when my life insurance policy matures?

When your policy matures you will receive the accumulated amount. This amount will
include the total of all your premiums paid, plus any bonuses you have received on the
part of your premium that has been invested by the insurance company on your behalf
(for eg, ULIPs). The amount you receive will be quite substantial because the premiums
you pay will accumulate and get compounded every year till the maturity of your policy.

Will I have to pay tax on my maturity benefit?

No, you will have to pay no tax on the maturity proceeds of a life insurance policy. In
fact, under a pension plan you can even withdraw up to one-third of the total maturity
amount in cash and that too will be tax free. All this is provided that you have paid all
your premiums and you have not let your policy lapse.

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