Max New York Life Insurance

A
Project Report
On
“MARKETING OF LIFE INSURANCE PRODUCTS

WITH REFERENCE TO MAX NEW YORK LIFE
INSURANCE”
Submitted in the
Partial Fulfillment of requirement
Master of Internal Business (MIB)

Affiliated to Ch. Charan Singh University, Meerut
Session: - 2008-2010
Submitted By:
Mohammad Ubaid
MIB-III Sem
Roll No.- 9358016
UNDER THE GUIDANCE OF:

External Supervisor Internal Supervisor
Mr. Jay Panwal Dr. K.K. Shukla
Recruitment Manager IMS-Ghaziabad
MNYL, Ghaziabad
INSTITUTE OF MANAGEMENT STUDIES

C-238, Bulandshahar G.T. Road, Lal Quan, P.B. No.-57
Ghaziabad-201009
ACKNOWLEDGEMENT
The planning and production of the project report have been

a tedious task, but has been made easier by the advice of
Dr. K.K. Shukla who attended me and spared her valuable
time in directing and encouraging me.
Lastly I thank all those who have encouraged me in

completing this project.
It is really astonishing that the people in today’s competitive

world are still so helpful in nature. Therefore in the end I
express my deep gratitude towards all of them.
MOHAMMADD UBAID
MIB-III Sem
2
CONTENTS
Title Page No.
> Introduction of insurance 01
> Definition of insurance 04
> History of insurance 06
> Types of insurance 10
> Life insurance products 15
> Types of insurance 19
> Company profile 24
> Life insurance products 25

Of company
> Conclusion 56
> References 58
3
Introduction
Of
Insurance
4
Insurance is a tool which facilitates a small number is compensated out of funds
(premium payment) collected from plenteous. Insurance companies pay back for
financial losses arising out of occurrence of insured events, e.g. in personal
accident policy death due to accident policy death due to accident, in fire policy
the insured events are fire and other allied perils like riot and strike, explosion,
etc. Hence, insurance is safeguard against uncertainties. It provides financial
recompose for losses suffered due to incident of unanticipated events, insured
within policy of insurance. Moreover, through a number of acts of Parliament,
specific types of insurances are legally enforced in our country, e.g. third party
insurance under Motor Vehicle Act, public liability insurance for handlers of
hazardous substances under Environment Protection Act, etc.
The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360-degree
turn witnessed over a period of almost 190 years.
The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.
Some of the important milestones in the life insurance business in India are:
1. 1912 - The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
2. 1928 - The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
3. 1938 - Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
4. 1956 - 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC
Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
5. The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in
the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1. 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
5
2. 1957 - General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
3. 1968 - The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
4. 1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
6
DEFINATION
OF
INSURANCE
7
Insurance may be defined as a contract wherein one party (the insurer) agrees to pay to
the other party (the insured) or his beneficiary, a certain sum upon a given contingency
(the risk) against which insurance is required.
Life insurance is a contract that pledges payment of an amount to the person assured (or
his nominee) on the happening of the event insured against.
Insurance that guarantees a specific sum of money to a designated beneficiary upon the
death of the insured or to the insured if he or she lives beyond a certain age.
The contract is valid for payment of the insured amount during:
• The date of maturity, or

• Specified dates at periodic intervals, or
• Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium periodically
to the Corporation by the policyholder. Life insurance is universally acknowledged to be
an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to
the timely aid of the family in the unfortunate event of death of the breadwinner.
By and large, life insurance is civilization’s partial solution to the problems caused by
death. Life insurance, in short, is concerned with two hazards that stand across the life-
path of every person:
1. That of dying prematurely leaves a dependent family to fend for itself.

2. That of living till old age without visible means of support.
8
HISTORY
OF
INSURANCE
9
In some sense it can be said that insurance appears simultaneously with the appearance of
human society. There are two types of economies in human societies: money economies
(with markets, money, financial instruments and so on) and non-money or natural
economies (without money, markets, financial instruments and so on). The second type is
a more ancient form than the first. In such an economy and community, insurance can be
seen in the form of people helping each other. For example, if a house burns down, the
members of the community help build a new one. Should the same thing happen to one's
neighbors, the other neighbors must help Otherwise; neighbors will not receive help in
the future. This type of insurance has survived to the present day in some countries where
modern money economy with its financial instruments is not widespread (for example
countries in the territory of the former Soviet Union).
Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in
which insurance is part of the financial sphere), early methods of transferring or
distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd
and 2nd millennia BC, respectively. Chinese merchants traveling treacherous river rapids
would redistribute their wares across many vessels to limit the loss due to any single
vessel's capsizing. The Babylonians developed a system which was recorded in the
famous Code of Samurai, c. 1750 BC, and practiced by early Mediterranean sailing
merchants. If a merchant received a loan to fund his shipment, he would pay the lender an
additional sum in exchange for the lender's guarantee to cancel the loan should the
shipment be stolen.
Achaemenian monarchs were the first to insure their people and made it official by
registering the insuring process in governmental notary offices. The insurance tradition
was performed each year in Norouz (beginning of the Iranian New Year); the heads of
different ethnic groups as well as others willing to take part, presented gifts to the
monarch. The most important gift was presented during a special ceremony. When a gift
was worth more than 10,000 Derrick (Achaemenian gold coin weighing 8.35-8.42) the
issue was registered in a special office. This was advantageous to those who presented
such special gifts. For others, the presents were fairly assessed by the confidants of the
court. Then the assessment was registered in special offices.
The purpose of registering was that whenever the person who presented the gift
registered by the court was in trouble, the monarch and the court would help him. Jahez,
a historian and writer, writes in one of his books on ancient Iran: "[W]henever the owner
of the present is in trouble or wants to construct a building, set up a feast, have his
children married, etc. the one in charge of this in the court would check the registration.
If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of
twice as much."
A thousand years later, the inhabitants of Rhodes invented the concept of the 'general
average'. Merchants whose goods were being shipped together would pay a
proportionally divided premium which would be used to reimburse any merchant whose
goods were jettisoned during storm or sinkage.
10
The Greeks and Romans introduced the origins of health and life insurance c. 600 AD
when they organized guilds called "benevolent societies" which cared for the families and
paid funeral expenses of members upon death. Guilds in the Middle Ages served a
similar purpose. The Talmud deals with several aspects of insuring goods. Before
insurance was established in the late 17th century, "friendly societies" existed in England,
in which people donated amounts of money to a general sum that could be used for
emergencies.
Separate insurance contracts (i.e., insurance policies not bundled with loans or other
kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools
backed by pledges of landed estates. These new insurance contracts allowed insurance to
be separated from investment, a separation of roles that first proved useful in marine
insurance. Insurance became far more sophisticated in post-Renaissance Europe, and
specialized varieties developed.
Toward the end of the seventeenth century, London's growing importance as a center for
trade increased demand for marine insurance. In the late 1680s, Mr. Edward Lloyd
opened a coffee house that became a popular haunt of ship owners, merchants, and ships’
captains, and thereby a reliable source of the latest shipping news. It became the meeting
place for parties wishing to insure cargoes and ships, and those willing to underwrite such
ventures. Today, Lloyd's of London remains the leading market (note that it is not an
insurance company) for marine and other specialist types of insurance, but it works rather
differently than the more familiar kinds of insurance.
Insurance today can be traced to the Great Fire of London, which in 1666 devoured
13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to
insure buildings. In 1680, he established England's first fire insurance company,
"The Fire Office," to insure brick and frame homes.
The first insurance company in the United States underwrote fire insurance and was
formed in Charles Town (modern-day Charleston), South Carolina, in 1732.
Benjamin Franklin helped to popularize and make standard the practice of insurance,
particularly against fire in the form of perpetual insurance. In 1752, he founded the
Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Franklin's
company was the first to make contributions toward fire prevention. Not only did his
company warn against certain fire hazards, it refused to insure certain buildings where the
risk of fire was too great, such as all wooden houses.
In the United States, regulation of the insurance industry is highly Balkanized, with
primary responsibility assumed by individual state insurance departments. Whereas
insurance markets have become centralized nationally and internationally, state insurance
commissioners operate individually, though at times in concert through a national
insurance commissioners' organization. In recent years, some have called for a dual state
and federal regulatory system for insurance similar to that which oversees state banks and
national banks.
11
In the state of New York, which has unique laws in keeping with its stature as a global
business center, former New York Attorney General Eliot Spitzer was in a unique
position to grapple with major national insurance brokerages. Spitzer alleged that Marsh
& McLennan steered business to insurance carriers based on the amount of contingent
commissions that could be extracted from carriers, rather than basing decisions on
whether carriers had the best deals for clients. Several of the largest commercial
insurance brokerages have since stopped accepting contingent commissions and have
adopted new business models.
12
TYPES
OF
INSURANCE
13
The earliest traces of insurance in the ancient world are found in the form of marine trade
loans or carriers , contracts, which included an element of insurance. Evidence is on
record that arrangemts embodying the idea of insurance were in Babylonia and India at
quite an early period
CLASSIFICATION ON THE BASIS OF NATURE OF INSURANCE
 LIFE INSURANCE
 FIRE INSURANCE
 MARINE INSURANCE
 SOCIAL INSURANCE
 MISCELLANEOUS INSURANCE
CLASSIFICATION OF INSURANCE FROM BUSINESS POINT OF VIEW
 LIFE INSURANCE
 GENERAL INSURANCE
CLASSIFICATION OF INSURANCE FROM RISK POINT OF VIEW
 PERSONAL INSURANCE
 PROPERTY INSURANCE
 LIABILITY INSURANCE
 FIDELITY GUARANTEE INSURANCE
CLASSIFICATION ON BASIS OF NATURE OF INSURANCE
1) LIFE INSURANCE
Life insurance may be defined as a contract in which the insurer, in consideration of a

certain premium, either in a lump sum or by other periodical payments, agrees to pay to
the assured, or to the other person for whose benefit the policy is taken, the assured sum
of money, on to the person for whose benefit the policy is taken, the assured sum of
money, on the happening of a specified event contigent on the human life or at the expiry
of certain period. For life insurance, the risk ensured against is death. The life insurance
company pays the sum assured to the insured in the event of death. There are several
types of insurance products / policies, which have been discussed.
At present, life insurance enjoys maxium scope because the life is the most important
property of the society or an individual. Each and every person requires the insurance.
This insurance provides protection to the family at the premature death or gives adequate
amount at the old age when earnings capacities are reduced. The insurance is not only a
protection but is a sort of investment because a certain sum is returnable to the insured at
the death or at the expiry of a period
14
2) FIRE INSURANCE
A fire insurance is a contract whereby the insurer, in consideration of the premium paid,
undertakes to make good any loss or damage caused by fire during a specified period.
Normally, the fire insurance policy is for a period of one year after which it is to be
renewed from time to time. A claim for loss by fire must satisfy the following 2
conditions:
> Ther must be actual loss; and
> Fire must be accidental and non-intentional
The risk covered by a fire insurance contract is the loss resulting from fire or some cause,
which is the proximate cause of the loss. If damage is caused by overheating by
overheating without ignition, it will not be regarded as a fire loss within the meaning of
fire insurance and the loss will not be recoverable from the insurer
3) MARINE INSURANCE
A marine insurance contract is an agreement where by the insurer undertakes to

indemnify
The insured in the manner and to the extent there by agreed against marine losses .marine
insurance is an arrangement by which the insurer undertakes to compensate the owner of
a ship or cargo for complete or partial loss at sea.
Marine insurance provides protection against loss of marine perils. The marine perils are
collision with rock, or ship attacked by enemies, fire and capture by pirates, etc.
These perils cause damage, destruction or disappearance of the ship and cargo and non-
payment of freight. So, marine insurance insures ship (hull), cargo and freight.
4) SOCIAL INSURANCE
Social insurance has developed to provide economic security to weaker sections of the
society who are unable to pay the premium for adequate insurance. Pension plans,
disability benefits, unemployment benefits, sickness insurance, and industrial insurance
are the various forms of social insurance. With the increase of the socialistic ideas, the
social insurance is an obligatory duty of the nation.
15
5) MISCELLANEOUS INSURANCE
The process of fast development in the society gave rise to a number of risks or hazards.
To provide security against such hazards, many other types of insurance also have been
developed
CLASSIFICATION FROM BUSINESS POINT OF VIEW
1) LIFE INSURANCE
2) GENERAL INSURANCE
1) LIFE INSURANCE- Life insurance may be defined as a contract in which the

insurer, in consideration of a certain premium, either in a lump sum or by other periodical
payments, agrees to pay to the assured, or to the person for whose benefit the policy is
taken, the assured sum of money, on the happenings of a specified event contingent on
the human life are at the expiry of certain period.
2) GENERAL INSURANCE-General insurance business refers to fire, marine and

miscellaneous insurance business whether carried on singly or in combination with one or
more of them.
CLASSIFICATION OF INSURANCE FROM RISK POINT OF VIEW
1) Personal insurance- Personal insurance refers the loss to life by accident, or

sickness to individual, which is covered by the policy. The insurer undertakes to pay the
sum insured on the happening of certain event or on maturity of the period of insurance,
and sickness or health insurance contains the element of indemnity only.
2) Property insurance-Contract of property insurance is a contract of indemnity.

Proof by the assured of loss is an essential element of property insurance. The policies of
insurance against burglary, home breaking or theft, etc. fall under this category. The
assured is required is required to protect to the insured property. After the loss has taken
place, the assured usually required notifying the police as to losses.
3) Liability insurance-Liability insurance is the major field of general insurance where by

the insurer promises to pay the damage of property or to compensate the losses to a third
party. The amount of compensation is paid directly to third party. The fields of liability
insurance include: workmen compensation insurance, third party motor insurance, and
professional indemnity insurance. There may be various reasons for arising of liability,
viz., and accident of a worker at the workplace, defective goods, and explosion in the
factory during the process of production and formation of poisonous gas within the
factory due to the uses of chemicals and other such substances in the manufacturing
process.
4) Fidelity guarantee insurance-In this type of insurance, the insurer undertakes to

indemnify the assured (employer) in consideration of certain premium, for losses arising
16
out of fraud, or embezzlement on the part of the employees. This kind of insurance is
frequently adopted as a precautionary measure in cases where new and untrained
employees are given position of trust and confidant.
A contract of insurance is a device wherein one party in consideration the price paid to
him proportionate to the risk provides security to the other party that he shall not suffer
loss damage or prejudice by the happening of certain events, which may cause
disadvantage to him. Insurance may be classified into different categories. The
classification of insurance into different categories can be on the basis of nature of
insurance, from business point of view and from risk point of view.
General insurance can be categorized according to the uncertainties and events covered
by the respective policies.
According to the nature of business, insurance may be classified into Life insurance, Fire
insurance, Marine insurance, Social insurance, and Miscellaneous insurance. From
business point of view, insurance can be classified into 2 broad categories LIFE
INSURANCE & GENERAL INSURANCE. On the other hand, from risk point of view,
insurance can be classified into 4 categories personal insurance, property insurance,
liability insurance and fidelity guarantee insurance.
17
LIFE
INSURANCE
PRODUCTS
18
BASIC ELEMENTS IN A LIFE INSURANCE PRODUCT
A life insurance product has, 2 basic elements:
> risk cover-i.e benefit payable in the event of death.

> saving-i.e. the benefit payable in the event of survival.
Life insurance plans, which provide only risk cover during a specified peroid without any
survival benefit, are called Term insurance plans. Life insurance plans, which provide for
payment of policy monies only on survival of the peroid, are called pure endowment
plans .
All plans of life insurance are combinations of both term insurance element and pure
endowment plan stipulates that a specified Sum Assured(SA) would be paid if the life
assured dies within the term selected or survives that term. The death benefit is paid by
term assurance and the survival benefit is paid by the pure endowment. An annuity plan
is a pure endowment plan with the condition that the SA is payable in instalments over a
specified peroid of time.
The life insurance policies may be without profit policies and with profit policies. The
holders of without profit policies are not entitled to share the profits of the insurer. These
policyholders get only the sum assured and no bonus is given to them. The holders of the
profit policies are entitled to share the profit the insurer. Since the policy holders can
share the profit and the loss, they cannot be treated as co-owner of the insurance business.
If there is loss, the policyholders cannot get bonus, i.e., the share in profit.
Having different elements in different policies, the policyholders are free to choose the
best policies according to their requirements. It would be known that no one policy is the
best policy for all the policyholders due to varience in cost, elements of investments and
protection, requirements of the policyholders and availablity of the policy. Thre are
following types of plans available:
 WHOLE LIFE INSURANCE

 ENDOWMENT TYPE PLANS
 COMBINATION OF WHOLE LIFE AND ENDOWMENT TYPE PLANS
 CHILDREN’S ASSURANCE PLANS; AND
 ANNUITY AND PENSION PLANS.
TERM LIFE INSURANCE
The sum assured is payable only in the event of death during the term. In case of
premium. These policies are usually non-participating. Since only death risk is covered,
the premium is low and the contract is simple. Of late however, some companies do offer
participating policies under term insurance plans.
19
Terms of life insurance comtracts are usually long, even upto 40 years or more. The term
may also be restricted to as short periods. They help to provide collateral security for
loans.
The term insurance policies are useful to those:
 who need extra-protection for a short duration, or

 who need protection for long duration but are unable to purchase for the time-
being due to ill-health or lesser income,
 a young businessman can take the policy to save the business-disaster during
initial stage of the business,
 key-men’s insurances are generally on term insurance basis,
 a mortgagor of the proprty may be benefited by this scheme,
 a father can take this policy during the period of education of his child, and
 any such persons who are willing to provide insurance for a shorter peroid
WHOLE LIFE INSURANCE
The risk is covered for the entire life of the policyholder, which is why they are knoen as
Whole Life Policies. The policy monies and the bonus are payable only to the nominee ar
the beneficiary upon the death of the policyholder. The policyholder is not entitled to any
money during his or her own lifetime, i.e. there is no survival benefit. This represents a
serious drawback in the case of whole-life policies for they go on covering a
policyholder’s life even after his life has no futher economic value for others.
The important whole life policies available in India are as follows:
 whole-life policy
 whole life limited payments plan
 whole life single premium plan
 convertible whole life plan
ENDOWMENT TYPE PLANS
Endowment policies cover the risk for a specified perod, at the end of which the SA is
paid back to the policyholder, along with all the bonus accumulated during the term of
the policy. The endowment policies can be several , of which important endowment
policies are discused below:
 pure endowment policy

 ordinary endowment assurance policy
 double endowment policy
 joint life endowment plan
 marriage endowment plan
20
COMBINATION OF WHOLE LIFE AND ENDOWMENT TYPE PLANS
 Money back(with profits)scheme
CHILDREN’S ASSURANCE PLANS
 Children’s deferred assurance plan

 Children”s deferred assurance plan(new)
 Annuities and pension plans
Life insurance is to mitigate the adverse consequences that may follow either on early
death of a person or on his living too long. Every possible consequence that requires to be
taken care of constitutes a need for insurance.
The needs of people for life insurance an be family need. children need, old-age and
special needs. To meet the needs of the people the insurers have developed different type
of products such as Term Life Insurance, Whole Life insurance, Endowment Type Plans,
Children’s Assurance Plans and Annuity Plans. These plans can be for an individual or a
group. These plans can also be with-profit or without- profit.
21
TYPES
OF
INSURANCE
COMPANIES
22
Insurance companies may be classified as
• Life insurance companies, which sell life insurance, annuities and pensions
products.
• Non-life or general insurance companies, which sell other types of insurance.
General insurance companies can be further divided into these sub categories.
• Standard Lines
• Excess Lines
In most countries, life and non-life insurers are subject to different regulatory regimes
and different tax and accounting rules. The main reason for the distinction between the
two types of company is that life, annuity, and pension business is very long-term in
nature — coverage for life assurance or a pension can cover risks over many decades. By
contrast, non-life insurance cover usually covers a shorter period, such as one year.
In the United States, standard line insurance companies are your "main stream" insurers.
These are the companies that typically insure auto, home or business. They use pattern or
"cookie cutter" policies without variation from one person to the next. They usually have
lower premiums than excess lines and can sell directly to individuals. They are regulated
by state laws that can restrict the amount they can charge for insurance policies.
Excess line insurance companies (aka Excess and Surplus) typically insure risks not
covered by the standard lines market. They are broadly referred as being all insurance
placed with non-admitted insurers. Non-admitted insurers are not licenced in the states
where the risks are located. These companies have more flexibility and can react faster
than standard insurance companies because they don't have the same regulations as
standard insurance companies. State laws generally require insurance placed with surplus
line agents and brokers to not be available through standard licensed insurers.
Insurance companies are generally classified as either mutual or stock companies. This is
more of a traditional distinction as true mutual companies are becoming rare. Mutual
companies are owned by the policyholders, while stockholders (who may or may not own
policies) own stock insurance companies. Other possible forms for an insurance company
include reciprocals, in which policyholders 'reciprocate' in sharing risks, and lloyds
organizations.
Insurance companies are rated by various agencies such as A.M. Best. The ratings
include the company's financial strength, which measures its ability to pay claims. It also
rates financial instruments issued by the insurance company, such as bonds, notes, and
securitization products.
Reinsurance companies are insurance companies that sell policies to other insurance
companies, allowing them to reduce their risks and protect themselves from very large
losses. The reinsurance market is dominated by a few very large companies, with huge
reserves. A reinsurer may also be a direct writer of insurance risks as well.
23
Captive insurance companies may be defined as limited-purpose insurance companies
established with the specific objective of financing risks emanating from their parent
group or groups. This definition can sometimes be extended to include some of the risks
of the parent company's customers. In short, it is an in-house self-insurance vehicle.
Captives may take the form of a "pure" entity (which is a 100% subsidiary of the self-
insured parent company); of a "mutual" captive (which insures the collective risks of
members of an industry); and of an "association" captive (which self-insures individual
risks of the members of a professional, commercial or industrial association). Captives
represent commercial, economic and tax advantages to their sponsors because of the
reductions in costs they help create and for the ease of insurance risk management and
the flexibility for cash flows they generate. Additionally, it may provide coverage of risks
which is neither available nor offered in the traditional insurance market at reasonable
prices.
The types of risk that a captive can underwrite for their parents include property damage,
public and products liability, professional indemnity, employee benefits, employers
liability, motor and medical aid expenses. The captive's exposure to such risks may be
limited by the use of reinsurance.
Captives are becoming an increasingly important component of the risk management and
risk financing strategy of their parent. This can be understood against the following
background:
• heavy and increasing premium costs in almost every line of coverage;

• difficulties in insuring certain types of fortuitous risk;
• differential coverage standards in various parts of the world;
• rating structures which reflect market trends rather than individual loss
experience;
• insufficient credit for deductibles and/or loss control efforts.
There are also companies known as 'insurance consultants'. Like a mortgage broker, these
companies are paid a fee by the customer to shop around for the best insurance policy
amongst many companies .
Similar to an insurance consultant, an 'insurance broker' also shops around for the best
insurance policy amongst many companies. However, with insurance brokers, the fee is
usually paid in the form of commission from the insurer that is selected rather than
directly from the client.
Neither insurance consultants nor insurance brokers are insurance companies and no risks
are transferred to them in insurance transactions.
Third party administrators are companies that perform underwriting and sometimes
claims handling services for insurance companies. These companies often have special
expertise that the insurance companies do not have.
24
Life insurance and saving
Certain life insurance contracts accumulate cash values, which may be taken by the
insured if the policy is surrendered or which may be borrowed against. Some policies,
such as annuities and endowment policies, are financial instruments to accumulate or
liquidate wealth when it is needed. See life insurance.
In many countries, such as the U.S. and the UK, the tax law provides that the interest on
this cash value is not taxable under certain circumstances. This leads to widespread use of
life insurance as a tax-efficient method of saving as well as protection in the event of
early death.
In U.S., the tax on interest income on life insurance policies and annuities is generally
deferred. However, in some cases the benefit derived from tax deferral may be offset by a
low return. This depends upon the insuring company, the type of policy and other
variables (mortality, market return, etc.). Moreover, other income tax saving vehicles
(e.g., IRAs, 401(k) plans, Roth IRAs) may be better alternatives for value accumulation.
A combination of low-cost term life insurance and a higher-return tax-efficient retirement
account may achieve better investment return.
25
MAX
NEW YORK
LIFE INSURANCE
26
COMPANY
PROFILE
27
Max New York Life Insurance Company Ltd. is a joint venture between New York Life,
a Fortune 100 company and Max India Limited, one of India's leading multi-business
corporations. The company has positioned itself on the quality platform. In line with its
vision to be the most admired life insurance company in India, it has developed a strong
corporate governance model based on the core values of excellence, honesty, knowledge,
caring, integrity and teamwork. The strategy is to establish itself as a trusted life
insurance specialist through a quality approach to business.
In line with its values of financial responsibility, Max New York Life has adopted
prudent financial practices to ensure safety of policyholder's funds. The Company's paid
up capital is Rs. 657 crore, which is more than the norm laid down by IRDA.
Max New York Life has identified individual agents as its primary channel of
distribution. The Company places a lot of emphasis on its selection process, which
comprises four stages - screening, psychometric test, career seminar and final interview.
The agent advisors are trained in-house to ensure optimal control on quality of training.
Max New York Life invests significantly in its training programme and each agent is
trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA
before beginning to sell in the marketplace. Training is a continuous process for agents at
Max New York Life and ensures development of skills and knowledge through a
structured programme spread over 500 hours in two years. This focus on continuous
quality training has resulted in the company having amongst the highest agent pass rate in
IRDA examinations and the agents have the highest productivity among private life
insurers. 201 agent advisors have qualified for the Million Dollar Round Table (MDRT)
membership in 2005. MDRT is an exclusive congregation of the world’s top selling
insurance agents and is internationally recognized as the standard of excellence in the life
insurance business.
Having set a best in class agency distribution model in place, the company is
spearheading a major thrust into additional distribution channels to further grow its
business. The company is using a five-pronged strategy to pursue alternative channels of
distribution. These include the franchisee model, rural business, direct sales force
involving group insurance and telemarketing opportunities, banc assurance and corporate
alliances.
Max New York Life offers a suite of flexible products. It now has 26 life insurance
products and 8 riders that can be customised to over 400 combinations enabling
customers to choose the policy that best fits their need.
Max New York Life was among the top 25 companies to work with in India, according to
2003 Business World magazine, "Great Workplaces In India", Max New York Life was
ranked at the 20th position. This survey is the local version of the "Great Places to Work"
survey carried out every year in 22 countries.
Max New York Life among top five most respected private life insurance companies in
India according to a 2004 and 2006 Business World survey.
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Max New York Life have truly built an enviable sales force. With 345 agents becoming
members of the MDRT in 2006, Max New York Life has moved up to 21st rank in
MDRT global list.
Max New York Life has been instrumental in changing the paradigm of life insurance in
India. It is the first life insurance company in India to introduce cause related marketing.
Children are at the very heart of Max New York Life's strategy. SOS Children's Villages
of India is internationally recognized for its work in giving underprivileged children a
wholesome life. The mission of SOS is "to help orphaned and abandoned children, by
providing them with a family, a permanent home, education and strong foundation for an
independent life." Its mission ties in with Max New York Life's philosophy of helping
people secure the future of their near and dear ones.
Max New York Life employee visits to SOS Villages are organized regularly to generate
a sense of ownership and involvement among employees.
Max New York Life has also instituted the David Allen trophy for the Most Socially
Responsible Student at SOS Children's Villages. David Allen, an employee of New York
Life, has donated Rs. 50,000 towards the rolling trophy, which will be awarded to a
student, of the Herman Gmeiner (SOS) School at Faridabad, who displays and shows
caring and a social responsibility towards his/her schoolmates or on a larger stage.
Shortly after inception, Max New York Life saw Gujarat being devastated by a ruinous
earthquake. The Max India Family and New York Life International contributed Rs.86.25
lakhs towards the permanent care of children affected by the earthquakes in Gujarat.
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INSURANCE PRODUCTS
BY
MAX NEW YORK LIFE
INSURANCE
30
The following products of life insurance are offered by the
company
Individual Insurance
Group Insurance
Others
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INDIVIDUAL INSURANCE
> PROTECTION
* WHOLE LIFE
* LEVEL TERM
* FIVE YEAR TERM R & C
* LIFE PARTNER PLUS
> CHILDREN
* CHILDREN ENDOWMENT
* STEPPING STONES
> SAVING
* LIFE GAIN ENDOWMENT
* LIFE GAIN PLUS
* TWENTY YEAR ENDOWMENT
> RETIREMENT
* EASY LIFE RETIREMENT
* ENDOWMENT TO AGE 60
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WHOLE LIFE
Whole Life Participating Insurance provides an insurance cover that is guaranteed for
entire life. This policy also builds cash value, which can be use during your lifetime to
fund any unforeseen needs either by surrendering accumulated PUAs (explained below)
or taking a loan. In addition this policy is also eligible for bonuses.
Key benefits
> Death of life insured: sum assured plus accured bonuses

> On maturity sum assured plus accured bonuses
> Bonus: from third policy year bonus declared every year
Tax benefits
> PREMIUM ARE ELIGIBLE FOR DEDUCTION UPTO 100,000 PER YEAR
> DD WRITER PREMIUM WILL BE ELIGIBLE FOR AN ADDITIONAL
DEDUCTION
Unique features in this policy
> BONUSES
> TERMINAL ILLENESS BENIFITES
LEVEL TERM POLICY

Level Term Policy (Non-Participating/Non-Convertible) In the exciting journey of life,
there will be uncertainties. Additionally there are bound to be occasions when have to
assume additional responsibilities as the head of the family. Max New York Life’s Level
Term (Non Participating) Policy insures life at a very low cost and reduces any hardship
your family may have to bear in the unfortunate event of death.
Unique features in this policy:
> PREMIUM PAYMENT ACCORDING TO CONVINENCE
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FIVE YEAR RENEWALE AND CONVERIBLE TERM INSURANCE (NON
PARTICIPATING)
Five Year Renewable and Convertible Term Insurance (Non-Participating) provides with
a low cost insurance cover during its tenure of five years. It is also convertible any time
into any permanent life insurance policy from MNYL, so that are able to take advantage
of increasing savings when your responsibilities increase viz. on marriage, or on child
birth.
KEY BENEFITS
On death of life insured: Sum Assured
Tax benefits:
Entitled for the following tax benefits
> Premiums are eligible for deduction u/s 80C up to Rs.100,000 / every year.
> DD rider premiums are eligible for an additional deduction u/s 80D up to
. Rs.10,000 /- every year
> claim amount (from death) is eligible for tax exemption u/s 10(10D)
Customize policy to meet specific needs:

Company offer the flexibility to enhance the value of policy by using the following
riders/options
Dread Disease (DD) Rider: Pays a lump sum amount in case contract any of
the ten diseases covered e.g. Heart Attack, Cancer, etc.
Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case of
death or disability caused by an accident.
 This plan can be renewed every five years and is convertible to any permanent plan at
any time during the tenure of the plan.
 Special rates for female lives
LIFE PARTNER PLUS:
 Money if policy holders live i.e. maturity benefit at age 75
Money backs i.e. a part of the Sum Assured at regular intervals to take care of periodic
foreseen needs.
KEY BENEFITS
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On death of life insured: Initial Sum Assured Plus Sum Assured of Paid up Additions
through bonuses
On survival: Money backs @ 7.5% of the Initial Sum Assured will be paid on each policy
anniversary from age 61 to 75.
On maturity: 100% of Sum Assured with Sum Assured of Paid Up Additions, if any.
On Surrender of Policy: Surrender value.
Limited Premium Payment term: choose to pay the premiums over 4 terms i.e. 3 years, 7
years, 10 years or 20 years.
Bonus: From 3rd policy year, company declare bonus every year.
Tax benefits
Entitled to the following tax benefits under Income Tax Act 1961
 Premiums are eligible for deduction u/s 80C up to Rs.100, 000 /- every year.
DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10, 000 /-
every year.
claim amounts (from death, on maturity, or Money Backs or through surrenders) are
eligible for tax exemption u/s 10(10D).
Co. offers the flexibility to enhance the value of policy by using the following
riders/options:
 Dread Disease (DD) Rider: Pays a lump sum amount in case contract any of the ten
diseases covered e.g. Heart Attack, Cancer, etc.
Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case of
Term / Term R&C Riders:: Offers additional Sum Assured to match customer needs.
The R&C also allows freedom to buy a fresh insurance plan later in life.
Waiver of Premium (WOP) / Pryor Riders: Waives your future premiums in case
suffer total disability. The payer’s rider waives future premiums on child’s policy in case
customer is disable
Bonuses: Withdraw in cash: bonus will be paid by cheque.
Pay premiums: bonus will be used to pay the next premium.
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Increase Sum Assured: bonus will be used to buy additional layers of insurance cover
in the existing policy by buying Paid up Additions (PUA). Can use bonuses in the
following ways:
Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of

Rs.5,00,000/-) in case are diagnosed to be suffering from a terminal illness that can lead
to death in 6 months; can use this money for your treatment. The balance of the sum
assured and the bonuses will be payable to family on the occurrence of the Insured Event.
Non Forfeiture Options: In case holder unable pay premiums, policy will lapse
and we will utilize your cash value to buy insurance coverage in one of the following
ways:
Reduced Paid Up: A lower Sum Assured for the remaining term of policy
Extended Term Insurance: The same Sum Assured for part of the remaining policy
CHILDREN ENDOWMENT:-
Children's Endowment Participating Insurance to age 18/24 with whole life option
enables to provide for specific needs of growing children
Child Endowment to Age 18 enables to provide for higher

education of child.
Child Endowment to Age 24 enables you to provide for the best possible wedding of
child and also builds cash value, which can use during to fund any unforeseen needs by
taking a loan. In addition this policy is also eligible for bonuses
KEY BENEFITS
On death of life insured: Refund of premiums plus interest.

On Maturity: Sum Assured.
On Surrender of Policy: Surrender value
Bonus: From 3rd policy year, co. declare bonuses every year
Tax benefits
Following tax benefits under Income Tax Act 1961:
 Premiums are eligible for deduction u/s 80C up to Rs.100, 000 /- every year.
 Claim amounts (from death, on maturity or through surrenders) are eligible for tax
exemption u/s 10(10D)

Recommend that enhance the value of your policy by buying the following rider:
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Payor Rider: Waives future premiums in case suffer total disability or meet with an
untimely death. This ensures that child will still get the lump sum money on attaining age
18 or 24
Unique features in this policy
• Cash Bonuses: Bonus will be paid by cheque.

• Non Forfeiture Options: In case holder unable to pay premiums, policy will lapse
and co will utilize cash value to buy insurance coverage in the following way:
Reduced Paid Up: A lower Sum Assured for the remaining term of policy. Do not
want the above, can choose to take cash value by cheque.
o Upon child attaining the age of 18, he/she will have the option to buy a
permanent life insurance policy without medical underwriting
(irrespective of his/her health at that time).
o On maturity of the policy, the benefits payable under the policy shall
automatically vest with child – so that child receives the benefits.
STEPPING STONES:-
Stepping Stones Participating Insurance Plan is a smart way to plan for and secure child’s
future irrespective of whether there or not. It provides you with regular money when it is
required. This policy also builds cash value, which can use during your lifetime to fund
any unforeseen needs by surrendering accumulated PUAs (explained below). In addition
this policy is also eligible for bonuses.
KEY BENEFITS
On death of life insured: Sum Assured along with additional insurance coverage
purchased in way of bonuses. Five years before maturity 30% of Sum Assured, Two
years before maturity – 35% of Sum Assured, at maturity – 35% of Sum Assured plus
30% of Guaranteed Sum Assured.
On Survival / maturity: Five years before maturity 30% of Sum Assured, Two years
before maturity – 35% of Sum Assured, at maturity – 35% of Sum Assured + 30% of
Sum Assured as Guaranteed Additions plus additional insurance coverage purchased
from bonuses.
Bonus: From 3rd policy year, co. will declare bonuses every year.
Tax benefits:
Premiums are eligible for deduction u/s 80C up to Rs.100, 000 /- every year.
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DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,
000 /- every year.
Claim amounts (from death, through surrenders or on maturity) are eligible for tax
exemption u/s 10(10D).
Dread Disease (DD) Rider: Pays a lump sum amount in case contract any of the ten
Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case
of death or disability caused by an accident.
Term Riders: Offers additional Sum Assured to match your changing needs. The
R&C also allows the freedom to buy a fresh insurance plan later in life.
Waiver of Premium (WOP): Waives your future premiums in case suffer total
disability.
Cash Bonuses: can use bonuses in the following ways:
 Withdraw in cash: bonus will be paid to
by cheque.
Pay premiums: bonus will be used to pay the next premium.
Increase Sum Assured: bonus will be used to buy additional layers of insurance cover
in the exis
 Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) in case are diagnosed to be suffering from a terminal illness that can lead to
death in 6 months; can use this money for r treatment. The balance of the sum assured
and the bonuses will be payable to family on the occurrence of the Insured Event.
Non Forfeiture Options: In case holder unable to pay premiums, policy will lapse and
we will utilize cash value to buy insurance coverage in one of the following ways:ting
policy by buying Paid Up Additions (PUA).
Reduced Paid Up: A lower Sum Assured for the remaining term of policy
SAVING:-
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LIFE GAIN ENDOWMENT:-
Life Gain™ Endowment (Participating Plan) provides with an insurance cover that is
guaranteed during the tenure of the policy. This policy also builds cash value, which can
use during lifetime to fund any unforeseen needs either by surrendering accumulated
PUAs (explained below) or taking a loan. In addition this policy is also eligible for
bonuses.
KEY BENEFITS
On death of life insured: Sum Assured plus accured bonus
On maturity: Sum Assured plus Guaranteed Addition @ 10% of Sum Assured plus
accrued bonus plus terminal bonus
Bonus: From 3rd policy year, co. will declare bonuses every year
Tax benefits:
Premium is eligible for deduction u/s 80C up to Rs.100, 000 /- every year.
DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,
000 /- every year.
Customize your policy to meet specific needs:
Flexibility to enhance the value of policy by using the following riders/options:
Dread Disease (DD) Rider: Pays a lump sum amount in case contract any of the ten
Term / Term R&C Riders: Offers additional Sum Assured to match changing needs.
The R&C also allows the freedom to buy a fresh insurance plan later in life.
Waiver of Premium (WOP) / Payor Riders: Waives future premiums in case suffer
total disability. The payor rider waives future premiums on child’s policy in case suffer
total disability.
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Unique feature
Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that
can lead to death in 6 months; can use this money for your treatment. The balance of the
sum assured and the bonuses will be payable to the family on the occurrence of the
Insured Event.
Non Forfeiture Options: In case holder unable to pay your premiums, policy will lapse
and co will utilize your cash value to buy insurance coverage.
LIFE GAIN PLUS
Life Gain plus Endowment Policy provides with an insurance cover that is guaranteed
during the tenure of the policy. This policy also builds cash value, which can use during
lifetime to fund any unforeseen needs either by surrendering accumulated PUAs
(explained below) or taking a loan. In addition this policy is also eligible for bonuses.
KEY BENEFITS
On death of life insured:
In the first 5 years - Sum Assured plus additional insurance coverage purchased from
bonuses
After 5 years - Double the Sum Assured plus additional insurance coverage
purchased from bonuses.
On maturity: Sum Assured plus accrued bonus plus Guaranteed Additions @ 10% of
Sum Assured
Bonus: From 3rd policy year, co will declare bonuses every year
CUSTOMISE POLICY TO MEET SPECIFIC NEEDS
Offer the flexibility to enhance the value of policy by using the following riders/options:
 Dread Disease (DD) Rider: Pays a lump sum amount in case contract any of the ten
 Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case
of death or disability caused by an accident.
 Term / Term R&C Riders: Offers additional Sum Assured to match changing needs.
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 Waiver of Premium (WOP) / Payor Riders: Waives future premiums in case suffer
total disability. The payor rider waives future premiums on child’s policy in case suffer
total disability.
UNIQUE FEATURE:
Bonuses: can use bonuses in the following ways:

 Bonus will be paid by cheque
bonus will be used to pay the next premium.
 Limited period of premium payment: so that pay only during the years that are
earning, while enjoy the insurance coverage for a longer period.
Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to in case are diagnosed to be suffering from a terminal illness that can lead
to death in 6 months; can use this money for y treatment. The balance of the sum assured
 Non Forfeiture Options: In case are unable to pay premiums, policy will lapse and co
will utilize cash value to insurance coverage
TWENTY YEAR ENDOWMENT:

This policy helps in the following ways:
 Higher education of child, or
 Children's marriage, or
 To buy a house, or
 To pay off a housing loan, or
 To create a fund for your retirement
And also provides within insurance cover to protect your family from financial
uncertainties in case of your untimely death during this period.
This policy will mature exactly 20 years after buying, and during this period, it also
builds cash value. This policy is also eligible for bonuses. May use the cash value and/or
the bonuses to fund any unforeseen needs either by surrendering accumulated PUAs
(explained below) or taking a loan.
KEY BENEFITS:
On death of life insured or on maturity: Sum Assured plus accrued bonuses.
Bonus: From 3rd policy year, co will declare bonuses every year
Tax benefits
Premiums are eligible for deduction u/s 80C up to Rs.100, 000 /- every year.
41
 DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10, 000 /-
every year.
Claim amounts (from death, on maturity or through surrenders) are eligible for tax
Bonuses: bonuses can be use in the following ways:
• Withdraw in cash: bonus will be paid by cheque.

• Pay premiums: bonus will be used to pay the next premium.
• Increase Sum Assured: bonus will be used to buy additional layers of insurance
cover in the existing policy by buying Paid up Additions (PUA).
 Terminal Illness Benefit: Pays 50% of Sum Assured (subject to a maximum of Rs.
5,00,000)to in case are diagnosed to be suffering from a terminal illness that can lead to
death in 6 months; can use this money for your treatment. The balance of the sum assured
 Non Forfeiture Options: In CAS unable to pay premiums, policy will lapse and we
will utilize cash value to buy insurance coverage in one of the following ways
• Reduced Paid Up: A lower Sum Assured for the remaining term of policy.
• Extended Term Insurance: The same Sum Assured for part of the remaining term
of policy.
RETIREMENT:
EASY LIFE RETIREMENT PLAN: Policy helps to save money for retirement, and also
provides with an opportunity to take home a regular retirement income (i.e. pension) for
entire life from chosen date of retirement. This income is a guaranteed amount,
guaranteed when annuity starts. In addition this policy is also eligible for bonuses.
KEY BENEFITS
On death of life insured: Refund of accumulated premiums plus cash value of additional
pure endowments purchased from bonuses.
On the chosen retirement date: Sum Assured plus additional insurance coverage
purchased in way of bonuses.
On Surrender: Surrender value (minimum guaranteed @ 55% of premiums paid).
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Bonus: From 3rd policy year, co will declare bonuses every year.
Tax benefits:
Entitled to the following tax benefits under Income Tax Act 1961:
premiums are eligible for deduction u/s 80CCC (1) up to Rs.10, 000 /- every year.
claim amounts (from death, on maturity or through surrenders) are eligible for
tax exemption u/s 10(10D).
 Bonuses: bonuses are used to purchase pure endowments, which add to the value of
policy.
 Annuity Options: can use the maturity value to buy an annuity from co or any other
IRDA approved annuity provider.
ENDOWMENT TO AGE 60:

Endowment to age 60 Participating Insurance is a quasi retirement policy that helps
to save primarily for retired life. It will mature on the policy anniversary after 60th
birthday, and enables to use the maturity proceeds in many ways viz.
Till age 60, this policy also builds cash value, and is eligible for bonuses. May use the
cash value and/or the bonuses to fund any unforeseen needs either by surrendering
accumulated PUAs (explained below) or taking a loan.
KEY BENEFITS
On death of the life insured: Sum Assured plus accrued bonuses plus terminal bonus
On maturity (attaining age 60): Sum Assured plus accrued bonuses plus terminal bonus
Tax benefits:
Premiums are eligible for deduction u/s 80C up to Rs.100, 000 /- every year.
DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10, 000/-
every year.
Claim amounts (from death, on maturity or through surrenders) are eligible for tax
Customize policy to meet your specific needs:
43
Dread Disease (DD) Rider: Pays a lump sum amount in case contract any of the ten
Term / Term R&C Riders: Offers additional Sum Assured to match r changing needs.
Waiver of Premium (WOP) / Payor Riders: Waives future premiums in case suffer
total disability. The payor rider waives future premiums on r child’s policy in case suffer
total disability.
 Withdraw in cash: bonus will be paid by cheque.

 Pay premiums: bonus will be used to pay the next premium.
 Increase Sum Assured: bonus will be used to buy additional layers of insurance cover
in the existing policy by buying Paid up Additions (PUA).
Purchase term insurance: bonus will be used to purchase additional coverage valid for
one year.
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GROUP INSURANCE
 GROUP TERM LIFE
 EMPLOYEE DEPOSIT LINKED INSURANCE
 CREDIT SHIELD
 UNIT LINKED GROUP GARTUITY
 UNIT LINKED GROUP SUPERANNAUTION
45
GROUP TERM LIFE
Key benefits:-
• Easy and convenient administration – one single master policy for all employees.
• Group size of at least 25 employees. No upper limit on membership.
• Policy is valid for one year and can be renewed annually.
• Uniform or a graded cover can be provided on any basis chosen by subject to a
maximum of three years of salary per employee.
• In case of death of an employee, due to natural or accidental reasons, the entire
sum assured amount is paid to the employer.
• Additional Protection is available through riders for Critical Illness, Accidental
Death Benefits, Disability and Dismemberment.
• New members can join and out going members can leave the scheme at any time
with premium adjustment.
EMPLOYEE DOPOSIT LINKED INSURANCE:
Overview of EDLI Scheme, 1976

All establishments with at least 10 full-time permanent employees and to whom the
Employee's Provident Fund and Miscellaneous Provisions Act, 1952 applies, have a
statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme (EDLI),
1976 to provide for life insurance for all their employees. The organization has to make a
contribution @ 0.51% of each employee's wages (Basic + Dearness Allowance +
Retaining Allowance), subject to a maximum of Rs.6,500 per month, to the Provident
Fund Authorities as part of its compliance to the Act. The death benefit payable under
this scheme is based on the provident fund account balance of the individual member,
subject to a maximum of Rs.60, 000.
A solution which is simple, flexible and unique
Under Section 17 (2-A) of the Provident Fund Act, the Central Provident Fund
Commissioner may, if requested to do so by the employer, by notification in the Official
Gazette, exempt, whether prospectively or retrospectively, any establishment from the
provisions of the EDLI scheme, if he is satisfied that the employees of such
establishment, without making any separate contribution or payment of premium, enjoy
life insurance benefits more favorable than the benefits under the EDLI scheme.
Max New York Life Insurance Co. Ltd offers Group Term Insurance Scheme, a unique,
simple and flexible scheme, that is a far better alternative to the Employee Deposit
Linked Insurance Scheme (EDLI) because of the benefits it offers to both the employer
and the employee. The Employees Provident Fund Organization has approved this
scheme as an alternative to EDLI.
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CREDIT SHIELD:
Credit Shield is a protection cover, which ensures that the loan amount is paid back to the
lender in case of an untimely demise of the borrower.
Convenient Structuring:
The plan can be conveniently structured in a way such that the entire loan amount or the
balance loan amount is paid up in case of the untimely demise of the borrower. The
premiums can also be adjusted every year according to the reducing loan balance amount.
This plan provides total peace of mind because in case of an untimely demise of the
borrower, the family is not burdened with the loan.
UNIT LINKED GROUP GRATUITY:
Gratuity is a statutory benefit to the employees under the Payment of Gratuity Act 1972.
After the employee has rendered continuous service for at least five years, he/ she are
eligible for 15 days pay for each completed year of service. The gratuity benefit is
payable on cessation of employment (either by resignation, death, retirement or
termination etc), by taking last drawn basic salary as the basis for the calculation.
Gratuity payment is a statutory liability for an organization and tends to increase as the
salaries and tenure of employment increase annually. In case of big, developing &
growing organization, gratuity payout can work out to a substantial amount. If the trust
pays gratuity from its current revenue, it becomes difficult to meet the liability, it is
therefore beneficial that a gratuity fund is set up for prudent financial planning.
Apart from being used as an effective tool to reward loyal employees, Gratuity can be
considered as a powerful tool to retain employees as well. This can be done by
structuring a higher gratuity benefit than the statutory requirements. Max New York Life
has made the Group Insurance portfolio more robust by launching the Unit Linked
Gratuity Plan.
Max New York can now offer two options of:
• Non unit Linked or Traditional Group Gratuity Plan: which facilitates systematic
and steady funding of the liability
• Unit Linked Group Gratuity Plan: which facilitates steady funding and the
opportunity of increased returns on investment.
Benefits of the Unit Linked Group Gratuity Plan
• Opportunity for growing the fund safely and prudently by managing the fund
investments properly and maximizing the returns on the investments and thereby bringing
down the costs of the funding liability in the future.
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Multiple Flexible Investment options based on the risk taking ability of the trust.
• Life covers for full-anticipated service.

• Contributions are exempted from Tax.
• Total Transparency in charges and the returns declared.
•Complete range of services provided: Taxation, Legal and Investment
Product Features
Eligibility
• Employer-Employee Groups
• Group Size of 25 members or more
• Employees between age 18 and retirement age of the company
Contributions
• MNYL will open and manage a Unit Account for the Trustees in which units are
allocated and cancelled for the purpose of paying Gratuity
• The trust also pays a premium for the life insurance cover. This cover could be
either the future service liability or a uniform/graded cover
• On receiving a claim, MNYL will redeem the units in the investment fund and
pay the gratuity benefit
• In case of death of an insured member, MNYL will also pay the sum assured
applicable for that member in addition to the gratuity benefit
• Contributions to be made towards the Gratuity Liability by the Trust to MNYL
would be as per Actuarial Valuation – Post AS-15 certification
• Past Service Gratuity Liability payment can be made over a period of 5 years
• The annual contributions can be made annually/half yearly/quarterly/monthly
Redirection
Annual contributions can be invested as per new fund break-up, not adhering to the initial
investment break-up. This gives more flexibility for better financial planning as per
specific requirements.
Charge Structure
MNYL unit linked Gratuity has one of the most transparent charge structures in the
market currently. The Fund Management charge is also extremely competitive.
Fund Management Charges - The fund management charge is levied as a percentage of

value of assets and shall be appropriated by adjusting the Net Assets Value.
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Switching: MNYL UL Group Gratuity plan offers its clients a flexibility to switch funds
from exiting fund to any other fund options, as per trust rules. Two free switches in one
policy year can be availed by the clients.
Surrender Fee: is applicable if a policyholder wants to surrender the policy. This fee is
based on the length of association with Max New York Life.
Fund options
MNYL Group Gratuity plan is a market linked investment product, which offers 3 fund
options to choose from.
Fund Options – Fund Type Description
Conservative Fund Balanced Fund

Asset Types Growth Fund (%)
(%) (%)
Govt. Securities 50-80 20-50 0-30
Corporate Bonds
0-50 20-40 0-30
(Investment Grade)
Cash/Call Money
0-20 0-20 0-20
Markets
Equities Nil 10-40 20-60
The MNYL Advantage

1. Fund Management Philosophy
2. Total Transparency in charges, returns declared and the portfolio of investments.
3. Flexibility in premium payments, redirection of premiums, term cover.
4. Superior Service
• ISO certified Operations & Processes
• Free and diversified services: legal, investment, taxation
• Dedicated Relationship Manager
• Effective Transaction Processing & Superior Turnaround Times
• Robust Data Management with High Confidentiality Maintained
5. Most Transparent charges and Low Fund Management Charges
UNIT LINKED GROUP SUPERANNUATATION:
Why Group Superannuation Plan?
Organizations across the world help employees to safeguard their retirement era by
providing various kinds of retirement benefits. Superannuation plans have been one of
the most common and successful long-term investment vehicle designed to provide
money during retirement.
A Group Superannuation scheme can be a good option for organizations to systematically

plan for the increasingly crucial post-retirement days of their employees. The objective is
to build a sizeable corpus for an employee as he approaches retirement. A part of the
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corpus (up to one-third) can be commuted and the remaining amount used to purchase an
annuity. This plan offers a total financial solution to the employer and the employee. The
employer can use this as effective employee retention and a loyalty reward tool. The
customized financial solutions offered by the plan, such as creation & management of
Retirement Fund, availability of Annuities and flexibility through options to optimize
returns helps each employee achieve his retirement goals. Moreover, the Plan is Tax
efficient and offers hassle free one stop solution for fund management and annuity
provision.
Why Group Superannuation Plan from MNYL?
MNYL offers a fully featured flexible superannuation plan, which is both easy to use and,
provides extra and great value for your hard earned money. The product provides a win –
win situation to both the employer as well as the employee. The tax benefits to the trust
are availed by the employer (Employer’s contribution is treated as Business Expense),
whereas the employee is provided by a healthy retirement fund. The employee, as per the
trust rules, can choose from various annuity options at the time of annutisation.
Eligibility Criteria
• Applicable to Groups
• Minimum Group Size is 25 Members
• Minimum Entry Age is 18 Years
• Maximum Entry Age is 64 Years
• Minimum annual Contribution is Rs. 6000/- per annum per member
• Maturity/ Retirement Age – as per Scheme Rules
Annuity Option available from MNYL
At MNYL, options available under immediate annuity are as follows:
• Life Annuity i.e. the annuity is paid to the employee during its entire lifetime.
• Life Annuity + Return of Purchase Price on Death
• Life Annuity but guaranteed for 5 or 10 or 15 or 20 Years
In future, MNYL may alter or add other annuity options.
• Initial Contributions as well as ordinary Annual contribution is allowed as a

business expense for the employer (Sec 36 (1)
• In case ordinary annual contribution does not exceed Rs.100, 000.00 per
employee per annum, no Fringe Benefit Tax is payable by the employer on the
amount of contribution.
• Income received by trustees on behalf of a Superannuation Fund is exempt from
tax. (Sec 10 (25) (iii))
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• Ordinary Annual Contribution is not treated as income in the hands of the
employees (Sec 17 (2) (v))
• Any contribution by employee to a superannuation fund will be entitled for
deduction under section 80C.
• Any payment made from an approved superannuation fund on death of the
employee or to the employee in lieu of or in commutation of an annuity on or
after retirement or on his becoming incapacitated prior to such retirement or by
way of refund of contribution on the death of the employee is exempt from tax.
(Section 10(13))
• Annuity payments are chargeable to tax. (Section 17(1)(ii))
• If an employee commutes the annuity before retirement or being incapacitated
then the commuted value will be taxable in his hands at an average rate of tax for
the preceding three years at which employee was liable to pay tax on his income.
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OTHERS:
 Rural
• Max Suraksha
• Easy Term
• Max Mangal
• Max Vriksha
 Banc assurance
Super saver bond
 Max amsure
* Max amsure bonus builder
* Max amsure money back
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RURAL:
MAX SURAKSHA:
Max Suraksha Policy is designed keeping in mind our social responsibility. The policy is
used to provide protection to social and rural segments. It provides an insurance cover for
5 years.
KEY BENEFITS
On Maturity: Return of 100% of premiums
EASY TERM:
Easy Term Policy is designed keeping in mind our social responsibility. It is used to
provide protection to rural / socially underprivileged / economically backward sections
viz. your servants, or the migrant laborers who construct your house, etc. It provides with
an insurance cover during the tenor of the policy till age 60.
KEY BENEFITS
A special claim concession where if the life insured dies within 6 months of the last
unpaid premium, the claim will be paid to his family after deduction the outstanding
premium.
MAX MANGAL:
Max Mangal Endowment (Participating) Policy is a unique plan with limited premium
paying term by which can reduce your financial burden and enjoy life cover for the entire
term. In case of unforeseen events this plan protects you by providing Increasing Death
benefit at the rate of 6.5% of original Sum assured per policy year.
KEY BENEFITS
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• Upon Maturity of the policy shall pay 115% of the Sum assured together with
Sum assured of Paid Up Additions,
• Death Benefit- In case of the unfortunate death of the life insured, shall pay
Death Benefit equal to an Increasing Sum assured ( 6.5% of the original Sum
assured at simple rate) together with sum assured of paid up additions, if any
without deducting any living benefits already paid
• Bonus - The bonuses declared by the company will be used to effect further
insurances by way of Paid up Additions from 3rd policy year onwards. (Please
refer to our Bonus options brochure for more details).
• Tax Benefit- entitled to the following Tax benefits under Income Tax Act 1961:
1. Premiums are eligible for deduction u/s 80C up to Rs.100, 000/- every year.
2. Claim amounts (from death, through surrenders or on maturity) are eligible for
tax exemption u/s 10(10D).
MAX VRIKSHA:
The Max Vriksha Money Back Plan (Participating) Policy is an exceptional plan that
provides you with regular lump sum payments at fixed intervals to cater to periodic
needs and keeps the balance for your long-term savings need. Incase of Unforeseen
events this plan helps in providing additional protection by Increasing Death Benefit
at the rate of 4% of sum assured per policy year.
KEY BENEFITS
• Upon Maturity of the policy shall pay 115% of the Sum assured together with
Sum assured of Paid Up Additions,
• Living Benefits:
1. An amount equal to 2% of the sum assured as specified in the schedule, which
will reduce the premium payable under the policy from the fourth policy
anniversary onwards until the eleventh policy anniversary. No payment in cash of
this living benefit will be made.
2.In addition to above, 10% of the Sum assured shall be paid in cash on the 4th
and 8th Policy anniversary and 15% of the Sum assured shall be paid in cash on
the 12th Policy anniversary.
• Death Benefit- In case of the unfortunate death of the life insured, co shall pay
Death Benefit equal to an Increasing Sum assured (4% of the original Sum
assured at simple rate) together with sum assured of paid up additions, without
deducting any living benefits already paid
• Bonus - The bonuses declared by the company will be used to affect further
insurances by way of Paid up Additions from 3rd policy year onwards.
• Tax Benefit- Are entitled to the following Tax benefits under Income Tax Act
1961:
1. Premiums are eligible for deduction u/s 80C up to Rs.100, 000/- every year.
2. Claim amounts (from death, through surrenders or on maturity) are eligible for
tax exemption u/s 10(10D)
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The Plan at a Glance:

Feature
Entry Age 18 - 50 years
Max Maturity 66 Years
Age
Policy Term 16 years
Minimum Sum Rs.50, 000
Assured (SA)
Maximum Rs.2, 50,000

Sum Assured
(per life)
Premium Limited Regular Premium pay for 12 years
Survival • Money Backs - 10% of initial S.A. at the end of 4 th year &
benefits (as a 8 th year and 15% at the end of 12 th year
% of S.A. )
• 2% of S.A. from 3 rd year to 11 th year, which will reduce
premium of next year.
Maturity 115% of the S.A.+ S.A. of PUA, if any
Benefit
Death Benefit The guaranteed Death benefit will be equal to the sum
insured. The sum insured will increase by 4% of the original
sum insured at the simple rate at the end of every policy year
during policy term until the year of death of the life insured
Cash Value Available 3rd year onwards, minimum 30% of the premiums
paid excluding First Year premium
Riders N.A.
available
Bonus Paid Up Additions (PUA)
Non Forfeiture Reduced Paid Up
Options
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BANCASSURANCE:
SUPER SAVER BOND:
Super Saver Bond Policy will keep paying a part of the Sum Assured at regular intervals,
to take care of periodic foreseen needs, and the balance keeps growing to take care of
long term saving needs, as well as provides insurance coverage till maturity.
KEY BENEFITS
On death of life insured: Sum Assured (without deducting any money back benefits
already paid) plus additional death benefit equal to Sum Assured in case of accidental
death
UNIQUE FEATURES
 In Built Personal Accident Benefit: In case death occurs due to an accident, over and
above the Sum Assured, your family will receive an additional death benefit which is
equal to Sum Assured.
 Non Forfeiture Options: In case unable to pay premiums, policy will lapse and we will
utilize cash values to buy insurance coverage in the following way:
Reduced Paid Up: A lower Sum Assured for the remaining term of policy.
MAX AMSURE:
Max Amsure Bonus Builder Policy
Provides an insurance cover that is guaranteed for entire life. This policy also builds cash
value, which can use during your lifetime to fund any unforeseen needs either by
surrendering accumulated PUAs (explained below) or taking a loan. In addition this
policy is also eligible for bonuses.
KEY BENEFITS:
On death of life insured: Sum Assured plus accrued bonus
On Maturity (attaining age 100):

 Sum assured plus accrued bonuses.
 Money back benefit 5% of SA every year from Age 61 to 80

Bonus: From 3rd policy year, declare bonuses every year
• Option to Participate in Progressive Bonuses: Allows top up premiums to

purchase additional Sum Assured in existing policy. It also generates further
bonuses.
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• Dread Disease (DD) Rider: Pays a lump sum amount in case contract any of the
ten diseases covered e.g. Heart Attack, Cancer, etc.
• Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in
case of death or disability caused by an accident.
• Term / Term R&C Riders: Offers additional Sum Assured to match changing
needs. The R&C also allows you the freedom to buy a fresh insurance plan later
in life.
• Guaranteed Insurability Option (GIO) Rider: Allows buying guaranteed
additional insurance at seven different stages in life.
MAX ANSURE MONEY BACK:
Max Amsure Family Money Back Policy is a smart way to plan for and secure
child's future irrespective of whether are there or not. It provides with regular money
when it is required. This policy also builds cash value, which can use during lifetime
to fund any unforeseen needs by surrendering accumulated PUAs (explained below).
In addition this policy is also eligible for bonuses.
KEY BENEFITS
On death of life insured: Sum Assured along with additional insurance coverage
purchased in way of bonuses. Five years before maturity 30% of Sum Assured, Two
years before maturity – 35% of Sum Assured, at maturity – 35% of Sum Assured plus
30% of Guaranteed Sum Assured.
On Survival / Maturity: Five years before maturity 30% of Sum Assured, Two
years before maturity – 35% of Sum Assured, at maturity – 35% of Sum Assured +
30% of Sum Assured as Guaranteed Additions plus additional insurance coverage
purchased from bonuses.
TAX BENEFITS:
• Premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.
• DD rider premiums are eligible for an additional deduction u/s 80D up to
Rs.10,000/- every year.
• Claim amounts (from death, on maturity or through surrenders) are eligible for tax
Customize your policy to meet specific needs
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• Dread Disease (DD) Rider: Pays a lump sum amount in case contract any of the
ten diseases covered e.g. Heart Attack, Cancer, etc.
• Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in
case of death or disability caused by an accident.
• Term / Term R&C Riders: Offers additional Sum Assured to match changing
needs. The R&C also allows you the freedom to buy a fresh insurance plan later
in life.
• Waiver of Premium (WOP): Waives future premiums in case suffer total
disability.
Bonuses: Can use bonuses in the following ways:
 Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of

Rs. 5,00,000/-) to you in case are diagnosed to be suffering from a terminal
illness that can lead to death in 6 months; can use this money for treatment. The
balance of the sum assured and the bonuses will be payable to family on the
occurrence of the Insured Event.
 Non Forfeiture Options: In case unable to pay premiums, policy will lapse
and co will utilize cash value to buy insurance.
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CONCLUSION
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Insurance is a contract wherein one party (the insurer) agrees to pay to the other party
(the insured) or his beneficiary, a certain sum upon a given contingency (the risk) against
which insurance is required.
Life insurance sector is developing these days. The main reason behind the increasing
popularity of life insurance products in the rapid flow of foreign direct investments.
Max New York Life Insurance Company Ltd. is a joint venture between New York Life,
a Fortune 100 company and Max India Limited, one of India's leading multi-business
corporations.
The company has positioned itself on the quality platform. In line with its vision to be the
most admired life insurance company in India, it has developed a strong corporate
governance model based on the core values of excellence, honesty, knowledge, caring,
integrity and teamwork.
The strategy is to establish itself as a trusted life insurance specialist through a quality
approach to business
As by observing Max New York Life Insurance company conclusion can be drawn
regarding the product of the company.
Max New York life Insurance offers different products for the different class of society.
It mainly categories on the basis of
 Individual: Max New York Life Insurance offers a range of products that
are designed to cater for specific individual life insurance needs.
 Group: Company provide life insurance solutions to facilitate employee

well being and retention.
 Others: Life insurance solutions are provided for the company’s

distribution channels.
So in today’s competitive world all the insurance company must follow the foot steps of
Max New York Life Insurance.
Life Insurance Company should diversify their range of the products on the basis of
different needs of the society.
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REFERENCE
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Books:
 Insurance and risk Management

By: Dr. P.k Gupta
 Introduction to Insurance
By: Mark. S. Dorfman
 Indian Insurance Industry
By: D. C. Srivastva
Shashank Srivastava
 Insurance Principles and Practice
By: M.N. Mishra
Websites:
• www.goggle.com
• www.insurance.com
• www.maxnewyorklifeinsurance.com
• www.generalinsurance.com
• www.historyofinsurance.com
• www.lifeinsuranceproducts.com
Magazines:
 India Today
 Business Today
 Outlook
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A

“MARKETING OF LIFE INSURANCE PRODUCTS

Master of Internal Business (MIB)

UNDER THE GUIDANCE OF:

INSTITUTE OF MANAGEMENT STUDIES

The planning and production of the project report have been

Lastly I thank all those who have encouraged me in

It is really astonishing that the people in today’s competitive

Title Page No.

> Introduction of insurance 01

> Definition of insurance 04

> History of insurance 06

> Types of insurance 10

> Life insurance products 15

> Types of insurance 19

> Company profile 24

> Life insurance products 25

The contract is valid for payment of the insured amount during:

• The date of maturity, or

1. That of dying prematurely leaves a dependent family to fend for itself.

CLASSIFICATION ON THE BASIS OF NATURE OF INSURANCE

CLASSIFICATION OF INSURANCE FROM BUSINESS POINT OF VIEW

CLASSIFICATION OF INSURANCE FROM RISK POINT OF VIEW

CLASSIFICATION ON BASIS OF NATURE OF INSURANCE

Life insurance may be defined as a contract in which the insurer, in consideration of a

> Ther must be actual loss; and

> Fire must be accidental and non-intentional

A marine insurance contract is an agreement where by the insurer undertakes to

CLASSIFICATION FROM BUSINESS POINT OF VIEW

1) LIFE INSURANCE- Life insurance may be defined as a contract in which the

2) GENERAL INSURANCE-General insurance business refers to fire, marine and

CLASSIFICATION OF INSURANCE FROM RISK POINT OF VIEW

1) Personal insurance- Personal insurance refers the loss to life by accident, or

2) Property insurance-Contract of property insurance is a contract of indemnity.

3) Liability insurance-Liability insurance is the major field of general insurance where by

4) Fidelity guarantee insurance-In this type of insurance, the insurer undertakes to

A life insurance product has, 2 basic elements:

> risk cover-i.e benefit payable in the event of death.

 WHOLE LIFE INSURANCE

TERM LIFE INSURANCE

The term insurance policies are useful to those:

 who need extra-protection for a short duration, or

WHOLE LIFE INSURANCE

The important whole life policies available in India are as follows:

ENDOWMENT TYPE PLANS

 pure endowment policy

 Money back(with profits)scheme

CHILDREN’S ASSURANCE PLANS

 Children’s deferred assurance plan

• heavy and increasing premium costs in almost every line of coverage;

> Death of life insured: sum assured plus accured bonuses

Unique features in this policy

LEVEL TERM POLICY

Unique features in this policy:

> PREMIUM PAYMENT ACCORDING TO CONVINENCE

On death of life insured: Sum Assured

Customize policy to meet specific needs:

Unique features in this policy:

LIFE PARTNER PLUS:

 Money if policy holders live i.e. maturity benefit at age 75

On Surrender of Policy: Surrender value.

Customize policy to meet specific needs:

Unique features in this policy:

Bonuses: Withdraw in cash: bonus will be paid by cheque.