REPORT Of Sales & Distribution Management ON

MAX NEW YORK LIFE INSURANCE

SUBMITTED TO:
Prof. Kruti Patel

SUBMITTED BY:
Darshit Mehta (48) Satyam Savani (94)

S. K. PATEL INSTITUE S. OF MANAGEMENT & COMPUTER STUDIES GANDHINAGAR July 2010

COMPANY INTRODUCTION

Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited, one of India's leading multi-business corporations and New York Life International, the international arm of New York Life, a Fortune 100 company. The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. Incorporated in 2000, Max New York Life started commercial operation in April 2001. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital as on 31 st August, 2010 is Rs 1,973 crore. Max New York Life has multi-channel distribution spread across the country. Agency distribution is the primary channel complemented by partnership distribution, bancassurance and dedicated distribution for emerging markets. The Company places a lot of emphasis on its selection process for agent advisors, which comprises four stages - screening, psychometric test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal control on quality of training. Max New York Life has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. Max New York Life offers a suite of flexible products. It now has 25 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 7 riders in group insurance business.

ORGANISATIONAL STRUCTURE

BRANCH

ZONE

REGION

TRAINNING
The training is start soon after joining of sales agent of insurance. The training includes different phases which help in gradual development of sales skills in agents. The training duration will be of one month and after that the agent need to clear the examination of IRDA for becoming insurance agent.

PHASES-1: Classroom Training 5 days 1. Ice Breaking Session

Here some game play between trainees so that they people can interact with each other and kind of friendly environment will be created.
2. Brief

Knowledge About Insurance

The information related to insurance industry will be provided. The knowledge sharing session of insurance will be held. The introduction of company will be provided to trainees and the knowledge of different insurance product will be given to trainees

5 days 1. Technical knowledge

The calculation of different policies premium will be studied in these sessions. Technical knowledge of plans of insurance coverage will be given.

2. Learning of Procedures
The paper work & procedure related to policy fulfillment will be thought in these sessions. The time requirement behind approval of policies will be studied by trainees. The procedure starting from customers positive reply to activation of particular policies also study by trainees.

5 days 1. P-200

P-200 is a sheet in which a trainee is suppose to write his whole contact book, that sheet asks detail like annual income & age etc. these connect are nothing but prospectus for policy.

2. Sales Training.
At the last Sales Training is given they use many techniques in this part. 1. Demonstration 2. Role Play 3. Tele Marketing

PHASE-2: Classroom and Fieldwork 15 days 1. Call Making

On job training is given to trainee, from p-200 most powerful 10-15 contact are selected, SM & Trainee goes to meet contact after getting prior appointment, There trainees task is to observe how SM approaches to prospectus, how he is doing whole call process, etc.

2. Internal Exam
At Max New York, they do have online examination system in which they take examination just like IRDAs with one deference that is it contains negative marking system so if trainee cracks internal exam, it is sure that he will crack final IRDAs exam.

Sittings with S.M.

Here there are 4 meeting of trainees will be held regarding the fieldwork practices under sales manager. These all sitting are paid sitting of Rs.500 each sit. During whole training of the month salary of Rs.3000 will be paid to the candidate.

COMPETETION
The competition always health to promote, if it affect positively. In MaxNewyork life insurance, competition promoted by different ways. Filling more contacts in P-200 dairy of creating leads. Here whom so ever fill more will get financial reward or gift. For S.M. & Recruitment manager the promotional gifts like; one week trip to goa etc.will be provided according to the performance of yearly or half yearly. Competition based on selling of policies and premium also available like; Get chance to go for world insurance conference by Air whom so ever bring either revenue of 7.5 lac or 30 premium of policies. Awards provided to create health competition among the employees. The awards like; Highflyer award given to employee who sold at least 50 policies in a year in annual ceremony of company. Arjun award for person who sold 100 or more policies in particular year.

CALL MAKING
The insurance companies will take Average Time Duration of one call is 37mins. While Max New York has call making time frame of 3 days. Each day contains some discussion to do with client which is as follows: Day 1 Awareness about Insurance : Here the agent discuss about insurance with the client and get idea about client. After that they analyse the need of client regarding policies.

Day 2 Filling of fact Finding sheet & Brief about company: The sales executive provide knowledge of company to the client and also tell different policies of company. Make the client aware about work and credibility of company. Then the fact finding sheet will be filled which contains details of future needs of client and current available finance with him from analysis of this sheet executive provide suitable insurance scheme to the client.

Day 2.5

Home Work: Executive make different plan of insurance policies which contains benefits needs by client. These plans are derived from analysis of fact finding sheet. Prepare 3 type of combo policy like 1 for higher premium,1 for middle range premium and 2 for lower premium. Day 3 Explanation 3 combo policy : The higher premium policies cover life insurance, mediclaim and saving. The middle range premium policies cover life insurance and saving only. First, The lower range premium policies cover life insurance and saving but maturity time is longer then middle range premium plan Second , the lower range premium policies cover only life insurance.

SALES TARGET

Selling increases only when there are some targets to achieve. Sales targets always make way clear to reach particular destination of revenues for company. So, sales target given to individual employees and particular branch so that the growth of market will continue and employees can even earn & grow. But insurance agent doesnt have any target. The agent has to give 5 policies in first month as guru dakshina, these create revenue source for company & himself, but according to the rules of IRDA agent has to sell 12 policies in a year or 2.5 lac amount of premium collection to renew his license. The company also giving target to branches located in different region according to the potential of particular market. The target to assistant partner and sales manager will be given by branch head.

MEETINGS & CELEBRATIONS

The company held meeting at every Branch, Zonal Vice-President have Voice conference with Branch Manager & all once in a month.

For continuous meeting on branch most Office do have conference room with round table where the executive will taking decision related to sales.

The company also arranges Annual Meeting Ceremony for award distribution for best performer in sales and other work.

The celebrations are also celebrated in branches like: o Joining of new Agent(Batch) o Completion of Training(Batch) o Every Policy is being celebrated by A bell & hands of applause by staff

o Guru Dakhshina Movement o Log in of any giant policy o Fulfillment of Branch Target o Birth Days of staff member
o

Satyanarayans Katha

COMPANSATION & REIMBURSMENT

There are different compensation plans for different position & level in hierarchy. The compensation plan Is as follows: Name Branch Manager SM AP basic 70000 25000 45000 commission Based on target Based on target Based on target Other rewards awards+gifts awards+gifts awards+gifts

The compensation for agents is purely based on commission on policies he sold.

Reimbursement of petrol , mobile and stationary Expenses to SM and above positions It is given monthly petrol on the bases of bills shown stationary & mobile expanses will be provided fixed Branch Manager have budget for celebrations with in branch. Any Expenses occur for client servicing in being allowed on basis of amount of sum assured & kind of expense occurred.