Training And Development In Max Newyork Life Insurance
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Training And Development In Max Newyork Life Insurance as PDF for free.
More details
- Words: 7,073
- Pages: 51
A STUDY ON TRAINING PROGRAM DONE BY MAX NEW YORK LIFE AT VARIOUS LEVELS
BY CH.V.RADHIKA ENROLL. NO- 5NB -11031
MBA-2005-2007 INC-GUNTUR
UNDER THE GUIDENCE OF
COMPANY GUIDE
FACULTY GUIDE
Mr. M.VIJAY BHASKAR REDDY
CH. HYMAVATHI
MAX NEW YORK LIFE INSURANCE
INC
HIMAYATH NAGAR, HYDERABAD
GUNTUR
1
DECLARATION
I hereby declare that this project work entitled “A STUDY ON TRAINING PROGRAM DONE BY MAX NEW YORK LIFE AT VARIOUS LEVELS “ is my
work, carried out under the guidance of my faculty guide Ms. CH. HYMAVATHI and my company guide Mr. M.VIJAY BHASKAR REDDY. This report neither full nor in part has ever been submitted for award of any other degree of either this university or any other university.
(CH. V. RADHIKA) Roll no. 5nb – 11031 INC GUNTUR
2
CER TIFI CA TE This is to certify that the Summer Internship Project titled “A STUDY ON TRAINING PROGRAM DONE BY MAX NEW YORK LIFE AT VARIOUS LEVELS”, a bonafide work of CH.V.RADHIKA is original and has been done under my supervision in partial fulfillment of the requirement for the award of M.B.A for the period of four months from 15, April 2007 to 15, August 2007. This report neither full nor in part has ever before been submitted for awarding of any degree of either this university or any other university. I am pleased to say that her performance during the period was extremely satisfactory.
Company Guide
Faculty Guide
Mr. VIJAY BHASKAR REDDY
Ms. HYMAVATHI
MAX NEWYORK LIFE
INC Faculty Member
Hyderbad
Guntur
3
LETTER OF APPRECIATION
This is to certify that Ms CH.V. RADHIKA pursuing MBA (2005 – 2007) From ICFAI National College – Guntur has successfully completed his project “A Study on Training Program Done By Max New York Life At Various Levels” from 15th April 2007 to 15th August 2007. We appreciate her commitment, Determination and performance during the project and bound to be valuable asset for any organization. I am pleased to say her performance and Sincerity at work during the period was Good.
4
ACKNOWLEDGEMENT
It gives me immense pleasure to express my deep sense of gratitude to Mr. T. SITA RAMAIAH, principal, ICFAI National College GUNTUR, for his valuable guidance and consistent supervision through out the course. I am also thankful to Mr. Vijay Bhaskar Reddy, my Company Guide of Max New York Life Insurance Company , Hyderabad, for his valuable guidance for preparing
the Final Report and also for
providing the necessary facilities. I am extremely thankful to Ms. Ch. Hymavathi Faculty Guide of ICFAI National College, for her timely guidance and support through out the Final Report work. in the course of carrying out the project work. Finally I am indebted to our other faculty members, my friends and my parents who gave their full-fledged co-operation for successful completion of my project. It was a indeed learning experience for me. NAME OF THE STUDENT : CH. V. RADHIKA ENROLLMENT NO
: 5NB11031
5
Executive Summary This Report is an attempt to provide a detailed analysis of the process of training program done by Max New York Life Insurance and benefits of the training. In my complete student internship program I met more than 90 employees. During this student internship program I came to know that, knowledge based economy, training helps people to learn how to do things differently or to do different things. However, my survey suggests that maximum number of employees, in the turbulent, fast changing world, effective training has never been more important. Products are now increasingly knowledge intensive; for this, employers are responsible for providing opportunities for continued learning. In my survey I found that 80% of employees are new to the job and they must undergo the training program. Finally, creating awareness of organization structure and its products to the employee is very important to have individual as well as organization growth. So it can be possible only when the employees go through the training program.
6
Contents History of Insurance Sector
8
Company Profile
15
Project
22
Findings
48
Recommendations
49
Conclusion
50
On the job training
51
Objectives
52
Targets
53
Achievements
54
Limitations
56
Learnings
57
7
Brief History of Insurance Sector in India 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 360degree 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: 1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 - 245 Indian and foreign insurers and provident societies taken over by
8
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. 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: 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January
1973.
107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the 9
Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
Indian Insurance Industry: Learn About Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of Insurance, large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good.
10
Functions of Insurance The functions of Insurance can be bifurcated into two parts: • Primary Functions • Secondary Functions • Other Functions The primary functions of insurance include the following: Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others. Collective bearing of risk - Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also
11
Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain. The secondary functions of insurance include the following: Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured. Small capital to cover larger risks - Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty. Contributes towards the development of larger industries - Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery. The
other
functions
of
insurance
include
the
following:
Means of savings and investment - Insurance serves as savings and 12
investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing incometax exemptions also, people invest in insurance. Source of earning foreign exchange - Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover. The end of the year 2000 marks a significant change and growth of 'India Insurance' industry scenario. Monopoly of Public Sector Insurance company marks an end and Private companies makes inroad. Foreign companies, both Life and General flocked, collaborated and helped astronomical growth of 'Insurance Industry in India'. 'India Insurance' growth was long overdue. Within 1st 12 months of liberation of 'Indian Insurance Industry' 10 licenses for selling life insurance products and 6 licenses for selling non-life products were issued to private companies. The Public sector giant LIC started losing its market share at the cost of stupendous growth of private players. Now 'India Insurance' industry has more than a dozen private life insurance players and 9 private general insurance companies. Aggressive and penetrative marketing strategy coupled with wide product bandwidth was an instant success among the ignorant masses. Most of the private companies registered more than 100% growth 13
till then and are still continuing with such monstrous growth figures. Although, 'Insurance in India' is not regarded as a basic need but it is getting popular among semi urban to rural masses. Top rank private companies like ICICI Prudential Life Insurance, Tata AIG, Bajaj Allianz etc are aggressively researching and innovating products for huge untapped rural 'India Insurance' market. Collaboration with micro finance companies, post offices, rural banks and village management authorities for selling insurance is doing wonders. Life insurance products covers risk for the insurer against eventualities like death or disability. Non-life insurance products covers risks against natural calamities, burglary, etc. They are not as popular as life products in the ' Insurance India's' portfolio. Until very recently it had only corporate buyers, but with natural disasters like, earth quakes, tsunamis, storms and floods becoming more frequent and damaging there has been a sudden spurt in sales of general insurance amongst individuals. Consumerism of life style goods and modern amenities has also contributed to its growth. With more awareness and wide bandwidth of insurance product portfolio the growth for 'India Insurance' story will only get more competitive and more affordable to all sections of Indian society. Present Scenario The Government of India liberalised the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign 14
ownership. Under the current guidelines, there is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001. Non-Life Insurance Market In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the same time, GIC was converted into a national re-insurer. In July 2002, Parliamant passed a bill, delinking the four subsidiaries from GIC. Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. Although the public sector companies still dominate the general insurance business, the private players are slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their operation in 2001.
15
With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project
implementation,
including
geological
risks,
maintenance,
commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure projects. With long term liability, they get a good asset- liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects. Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the existing norms, insurance premium payments are treated as part of the fixed costs. Consequently they are treated as passthrough costs for tariff calculations. Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Commitee. For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the committee's guidelines; and projects above Rs 15 16
billion are subjected to re-insurance pricing. It is the last segment that has a number of additional products and competitive pricing. Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium. The other companies share the remaining risk and premium. The policies are renewed usually on an annual basis through the invitation of bids. Of late, with IPP projects fizzling out, the insurance companies are turning once again to old hands such as NTPC, NHPC and BSES for business. Re-insurance business Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be safely borne from their own funds. The balance risk is re-insured with other insurers. In effect, therefore, reinsurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better spread of risk in the international market, allows primary insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic events and still maintain their financial stability. While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently, all insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to ensure that GIC's 17
role as the national reinsurer remains unhindered. However, GIC reinsures the amount further with international companies such as Swissre (Switzerland), Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat perceptions globally. Life Insurance Market The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were underinsured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving
18
device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unitlinked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatization was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average. Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich dividends. But a rejuvenated LIC is also trying to fight back to woo new customers. The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business
19
(Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. Insurance companies: IRDA has so far granted registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are included, there are currently 13 insurance companies in the life side and 13 companies operating in general insurance business. General Insurance Corporation has been approved as the "Indian reinsurer" for underwriting only reinsurance business. Particulars of the life insurance companies and general insurance companies including their web address is given below:
LIFE INSURERS
Websites Public Sector
Life Insurance Corporation of India
www.licindia.com
Private Sector Allianz Bajaj Life Insurance Company Limited
www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited
www.birlasunlife.com
HDFC Standard Life Insurance Co. Limited
www.hdfcinsurance.com
20
ICICI Prudential Life Insurance Co. Limited
www.iciciprulife.com
ING Vysya Life Insurance Company Limited
www.ingvysayalife.com
Max New York Life Insurance Co. Limited www.maxnewyorklife.com MetLife Insurance Company Limited
www.metlife.com
Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com SBI Life Insurance Company Limited TATA AIG Life Insurance Company Limited AMP Sanmar Assurance Company Limited Dabur CGU Life Insurance Co. Pvt. Limited
www.sbilife.co.in www.tata-aig.com www.ampsanmar.com www.avivaindia.com
21
GENERAL INSURERS
Public Sector National Insurance Company Limited
www.nationalinsuranceindia.com
New India Assurance Company Limited Oriental Insurance Company Limited
www.niacl.com www.orientalinsurance.nic.in
United India Insurance Company Limited
www.uiic.co.in
Private Sector Bajaj Allianz General Insurance Co. Limited
www.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd.
www.icicilombard.com
IFFCO-Tokio General Insurance Co. Ltd. Reliance General Insurance Co. Limited
www.itgi.co.in www.ril.com
Royal Sundaram Alliance Insurance Co. Ltd.
www.royalsun.com
TATA AIG General Insurance Co. Limited
www.tata-aig.com
Cholamandalam General Insurance Co. Ltd. Export Credit Guarantee Corporation
www.cholainsurance.com www.ecgcindia.com
HDFC Chubb General Insurance Co. Ltd. REINSURER
General Insurance Corporation of India
www.gicindia.com
22
Company profile of MAX NEW YORK LIFE :
Max New York Life Insurance “Max New York Life wants people to view insurance as a financial protection and wealth creation instrument and not just a tax-saving tool.” 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. New York Life is a Fortune 100 company that has over 160 years of experience in the life insurance business. Max India Limited is a multibusiness corporate dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic Products businesses.
23
Max New York Life Insurance started its operations in India in 2000. It is the first life insurance company in India to be awarded the IS0 9001:2000 certification. Max New York offers customized products tailored to suit individual's needs. With its various Products and Riders, there are more than 400 product combinations to choose from. Today, Max New York Life Insurance has a network of 57 offices spread over 37 cities all over India. 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 inhouse to ensure optimal control on quality of training. Max New York Life invests significantly in its training program 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 program 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
24
examinations and the agents have the highest productivity among private life insurers. It has established a wide agency distribution network with 172 offices and representatives across 120 cities in India. The company has established additional channel with 22 bancassurance relationships, corporate tie-ups and a strong Direct Sales Team. Through its wide network of highly competent life insurance agent advisors, flexible product solutions and strong customer focus, Max New York life is creating a partnership for life with its customers in India. Max New York Life, one of India’s leading life insurance companies, expanded its presence in the southern region by opening its first general office in the city of Mysore. Max New York Life now has established a countrywide network of 172 offices and representatives across 120 cities in India. Max New York Life, which has till date sold over 1.53 million policies and recorded a sum assured of over Rs. 46,000 crore, has positioned itself on the quality platform. The company has developed a strong corporate governance model based on defined core values of caring, knowledge, excellence and honesty. Its strategy is to establish itself as a trusted life insurance specialist on the bedrock of quality of advice. The company has over 25,300 agent advisors, who are widely considered the best in the business.
25
Max New York Life aspires to be the "life insurance brand of first choice" amongst Indian consumers. To achieve this the company will draw on New York Life's demonstrated competence in developing and managing a superior personal sales network. For the last 46 years consecutively, the largest number of agents qualifying for membership to the Million Dollar Round Table (MDRT) have been from New York Life. The MDRT is the industry's most prestigious organization comprising the world's most successful insurance agents. Max New York Life, a merit oriented and equal opportunities employer, is looking for a few good men and women who will spearhead the effort to realize this vision. “Max New York Life wants people to view insurance as a financial protection and wealth creation instrument and not just a tax-saving tool. Since the launch of our operations, our focus has always been on providing risk protection and long-term wealth creation solutions to our customers. With a diverse product portfolio to meet customer requirements, it is evident that we are setting benchmarks in the marketplace and are well on course of realizing our vision to become India’s most admired Life Insurance Company.” “An ever expanding presence of Max New York Life offices across India reinforces our commitment to serving the nation. We are extremely pleased with our progress in the region and feel that opening an office in Mysore would help us educate people about the true potential and benefits of life insurance. As life insurance specialists, Max New York Life will continue to help consumers make the right choices to meet their financial
26
goals, both for the short and long-term, through sound quality advice offered by our agent advisors and a right mix of product offerings.” he added. 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." It's mission ties in with Max New York Life's philosophy of helping people secure the future of their near and dear ones.
Vision: Vision statement is "Most Admired Life Insurance Company in India".
Mission: • Become one of the top quartile life insurance companies in India • Be a national player • Be the brand of first choice • Be the employer of choice • Become principal of choice for agents
27
Max New York Life Values and Beliefs Excellence "In every aspect of work. Ranging from the in-house training institute to the detailed Personal Insurance Plan. Max New York Life is focused on achieving the highest standards of quality in every aspect of their business". Honesty "Is the heart of the Life Insurance business. Max New York believes that above all, Life Insurance is based on trust. Transparency, Dependability and Integrity will form the cornerstones of the Max New York Life experience." Knowledge "Is what makes experts. Max New York Life is focused on the Life Insurance business. Perfectly combining global expertise with local knowledge, Max New York Life is the Indian Life Insurance specialist." Caring "For the customer. Max New York Life is redefining the Life Insurance paradigm to focus on the needs of the customers. The Max New York service process is responsive, personalized, humane and empathetic." Culture: Our "in house culture recipe" has some of the finest ingredients going into its making. Some of the more prominent aspects of our culture are stated below: 28
• Customer comes first • Do it right the first time • Bias for result oriented action • Financial strength and discipline • Clarity of purpose • International quality standards • Inclusive Meritocracy • Learning opportunities • Fun at work • Commitment to published value system
29
Research Methodology: The Research and Methodology adopted for the present study has been systematic and was done in accordance to the objectives set which has been detailed as below. Research Definition Research is a process in which the researcher wishers to find out the end result for a given problem and thus the solution helps in future course of action. According to Redman & Mory research is defined as a “Systemized effort to gain new knowledge”. Research Design: According to “Claire Seltiz”, a research design is the arrangement of condition and analysis of data in manner that aims to combine relevance to the research purpose with economy in procedure. Nature of Research: Research is basically of two types. 1. Descriptive research 2. Explorative research 1. Descriptive Research: These studies are concerned with describing the characteristic of a particular individual or a group. Determining sources of Data: There are two main sources of data 1. Primary data 2. Secondary data 30
Primary Data: It consists of original information collected for specific research. Primary data for this research study was collected through a direct survey to obtain this primary data a well structured questionnaire was prepared by the researcher. Secondary Data: It consists of information that already exists somewhere and has been collected for some specific purpose in the study. The secondary data for this study is collected from various Japanese Management books . Questionnaire: A set of questions containing a few Technical questions and more number of Opinionated questions are prepared for the employees of both Centralized and Decentralized sections of HR Department. Sample Size: Total sample size is 90 Questionnaire Development: Questionnaire is the most common instrument in collecting primary data. In order to gather primary data from viewers. The present questionnaire consists of following type of questions. Open ended questions Closed ended questions Dichotomous questions Multiple choice questions Ranking question.
31
Open ended questions: It has no fixed alternatives to which the answer must conform. Thus, respondent answer in his/her own words at any length they choose. Closed ended questions: Closed ended questions have no other options other than the selecting the one that close matches the respondent’s opinion or attitude. Dichotomous questions: A dichotomous questions refers to one, which offers the respondents a choice between only two alternatives. Multiple Questions: A multiple choice question refers to one, which provides several sets of alternatives for the respondents’ choice. Ranking questions: These questions are given when there are many points to be considered and to be ranked in priority.
32
Analysis of the project Definition of Training: The systematic development of the knowledge, skills and attitudes required by an individual to perform adequately a given task or job. Training refers to efforts that help enhance employee skills for carrying out the present job. According to Edwin B Flippo, training is the act of increasing knowledge and skills of an employee for doing a particular job. Needs for training: • To improve the current job performance of employees • To familiarize employees with the policies and procedures of the organization. • To enhance the creativity, adaptability and versatility of the employees and to facilitate learning at the work place • To prepare employees for future job. • To change the skills, knowledge and attitudes of the employees on a permanent basis. • To help employees manage their careers. • To maintain knowledgeable work force. • To gain competitive advantage through a knowledgeable work force. • To promote organizational growth through individual growth.
33
Areas of training: • Company policies and procedures • Human relations training • Skill based training • Problem solving training Onsite Workshops for Leadership Team Employees need more than bosses... They need mentors: Professionals skilled at assessing employee development needs and committed to guiding employees toward professional success. Team Leadership Workshop provides managers with proven techniques for effective personnel management. By helping leaders understand and address their employees' requirements, this interactive seminar offers significant benefit to managers at all levels. New supervisors gain a solid grounding in the concept of ''leadership,'' while more experienced managers refresh their commitment to teaching and coaching their team members. This training program provides healthy perspectives for managers at all levels, making it an ideal morale-boosting leadership development experience for mixed groups of front-line supervisors and senior staff members.
34
Leadership Training for Success All managers need methods. Leaders need to know the most effective techniques for guiding teams, mentoring individuals, and validating the results. Without solid methods, managers will revert use a one-size-fits-all approach to leadership that reflects the leader's personality, rather than the employees' needs. Committed, mentoring leadership is essential to employee morale, productivity, and retention. A Results-Oriented Training Program Team Leadership Workshop provides proven methods and procedures for successful people management. Participants receive a step-by-step plan for guiding each employee toward success.
This workshop includes elements of Frank Whyte's nationally respected Team Building Workshops expanding upon that foundation to help leaders: • Recognize each employee's personality preferences and supervisory needs, • Align their leadership style with those of their bosses, colleagues, and subordinates, • Develop competent and committed employees by mentoring and guiding their employees toward success, 35
• Schedule their management responsibilities to ensure that nothing is left to chance, and • Use practiced, real-world scenarios to resolve challenges and remove barriers.
Training Program done by Max New York Life
Training is must for every individual when he enters into the organization. Even though the candidate has experience he also should get training. Why because the organization culture, values and beliefs are different from one organization to other. That’s why the training program plays a key role in every organization. Training program following by Max New York Life Insurance is different at various levels. Mainly in training program the company concentrates on sales managers, agents, operations executives and telecallers. Training program for sales managers: • The training program duration is 15 – 20 days • They get training on product knowledge. • Motivating and encouraging Advisors
36
Training program for Advisors: • The training program duration is 15 – 20 days • They get training on product knowledge • How to convince the people. • Objection Handling Training program for operations executives: • They will get training on customer database files • Taking care of the customer files • Well trained in product information and documentation • Renewals will be informed periodically. Required skills for employees in Max New York Life Insurance: • Interpersonal skills • Excellent communication skills • Understanding nature • Aggressiveness • Convincing skills • Ability to motivate others • Interest to learn
37
Analysis of office staff who are having sufficient Knowledge on life Insurance . No.of Persons
PROFESSION
8
New Advisors Advisors Telecallers Marketing Executives
54 12 26
Diagram of the table:
54
60 50
New Advisors
40 26
30 20
8
12
10
Advisors Telecallers Marketing Executives
0
Having Sufficient Product Knowledge on Insurance
38
Analysis of the table: The above chart showing that advisors only have more knowledge than telecallers, marketing executives and new advisors. Advisors will complete the deals. But after that every thing will take care by operations executives and telecallers. With out sufficient knowledge these both people cant work well. When the telecaller is calling to customer for renewal premium that person should have a knowledge how the premium should calculate, and they should know any extra charges for late payment, and how much grace period will be… these things should know even telecallers and operations executives too.
39
FINDINGS • Trained employees can work more efficiently. • Training makes employees more loyal to an organization. • Training makes an employee more useful to a firm. • Training enables employees to secure promotions easily. They can realize their career goals comfortably. • Employees can avoid mistakes on the job. They can handle jobs with confidence. They will be more satisfied on their jobs. • Training can contribute to higher production and fewer mistakes, greater job satisfaction and lower employee turnover. Also, it can enable employees to cope up with organizational, social and technological change.
40
RECOMMENDATIONS
Create awareness: The Company has to take care of awareness creation about the products and services among the Advisors/Agents Charges: The Company has to reduce the mortality and administration charges. The company has to give periodic training. Product promotion strategies should be improved. Company should consider the present competition and should act according to the customer needs. It Should be like long term training like Fundamental Carrier class , Basic Carrier class which helps the advisors in different stages.
41
CONCLUSION
In this Knowledge-based economy, training helps people to learn how to do the things differently or to the different things. Products are now increasingly knowledge-intensive; for this employers are responsible for providing opportunities for continued learning. To cope with the challenges and competitiveness in the world, every organization needs the services of trained persons for performing the activities in the systemic way. So, training program plays a key role in individual as well as organizational performance.
42
ON THE JOB TRAINING
INTRODUCTION My OJT is to finding the employee potentiality in their concern department. And I have to find how training will helpful for organization as well as individual growth. I have to identify the employees who needs training program and I have to find how can company make the employees to show interest for attending the training program. I have to submit the results what can company get after giving the training to the employees.
43
OBJECTIVES The main objective of doing this project is to study employee attitude regarding the training program and the benefits of the training program. During this student internship program period I have to achieve some thing which is helpful to the development of myself and some value addition to the company. Getting more business to the company because of training program is the main objective. It gives me good exposure of myself and creating good impression of corporate mind. The main objective of this study is to know the employee opinion regarding the training program. To find out what is the training needs in concern area. To find out the benefits of the training program to the employee and to the organization. To find out what is the result for the organization because of giving the training to the employee.
44
TARGETS/ TASKS I have to approach the employee who is working for max New York life insurance Company and should find out are they feeling training will be helpful or not to increase of the performance of the employee. After that I have to find out what are the things should we cover in the training program depending upon the concern department.
45
ACHIEVEMENTS I promoted Max New York Life products during my SIP period. I have showing them as monthly wise as follows,
1st week nd
2 week
In The Month of MAY Training class on IRDA norms and why Insurance is needed Training class, for different products of Max New York Life
rd
3 week 4th week
4 leads
1st week 2nd week 3rd week 4th week
In The Month of JUNE 3 leads 4 leads 4 leads 4 leads
46
1 week 2nd week 3rd week 4th week
In The Month of JULY 4 leads 6 leads 3 lead 4 leads
1st week
In The Month of August Training program was conducted to
st
telecallers who are dull in nd
2 week 3rd week 4th week
Communication skills Training program done to 4 advisors 3 leads 6 leads
47
LIMITATIONS 1. The survey was conducted with in the company. 2. And in survey I have to interact with the employees. But the employees will be busy their works. 3. Getting the good response from the employee will be difficult because of their busy schedule. 4. Time to interact with employees inside the branch is not sufficient. 5. Time Period of my OJT is one of the limitations.
48
LEARNINGS Learning’s in the on the job training 1) Importance of the training program 2) How the training program will help for the individual as well as organizational growth 3) The way to improve communication skills. 4) The way to behave people in corporate world.
49
APPENDIX 1. Name: 2. Designation:
3. What is your opinion on training? Good
Very good
Bad
Time waste process
4. Do you feel that training will helpful for individual growth?
Yes
NO
5. Did you satisfy with training what company conducted here?
Yes
No
6. Is there any improvement in performance after getting the
training? Yes
No
7. Who needs much knowledge regarding company and product? Agents
Tele callers
Operations executives
All
8. In which areas employee needs training? Company policies and procedures Skill based training Problem solving skills All of the above
50
REFERENCES 1) Lynton, R.P. and Pareek, U. “Training for development”, 2 nd Ed., New
Delhi: Vistaar publication, 2002. 2) Bhatnagar, O.P. “Evaluation methodology for training”, New Delhi: Oxford and IBH publishing co.pvt.ltd. 3) Rae, L. “The art of training and development, effective planning”. Vol. 1, New Delhi. 4) Tannenbaum, S. “A strategic view of organizational training and learning”. 5) A hand book of human resource management practice, 8th ed., 2001. 6) Personnel management, Mc. Graw Hill, 6th ed., 1981.
7) www.maxnewyorklife.com
51
BY CH.V.RADHIKA ENROLL. NO- 5NB -11031
MBA-2005-2007 INC-GUNTUR
UNDER THE GUIDENCE OF
COMPANY GUIDE
FACULTY GUIDE
Mr. M.VIJAY BHASKAR REDDY
CH. HYMAVATHI
MAX NEW YORK LIFE INSURANCE
INC
HIMAYATH NAGAR, HYDERABAD
GUNTUR
1
DECLARATION
I hereby declare that this project work entitled “A STUDY ON TRAINING PROGRAM DONE BY MAX NEW YORK LIFE AT VARIOUS LEVELS “ is my
work, carried out under the guidance of my faculty guide Ms. CH. HYMAVATHI and my company guide Mr. M.VIJAY BHASKAR REDDY. This report neither full nor in part has ever been submitted for award of any other degree of either this university or any other university.
(CH. V. RADHIKA) Roll no. 5nb – 11031 INC GUNTUR
2
CER TIFI CA TE This is to certify that the Summer Internship Project titled “A STUDY ON TRAINING PROGRAM DONE BY MAX NEW YORK LIFE AT VARIOUS LEVELS”, a bonafide work of CH.V.RADHIKA is original and has been done under my supervision in partial fulfillment of the requirement for the award of M.B.A for the period of four months from 15, April 2007 to 15, August 2007. This report neither full nor in part has ever before been submitted for awarding of any degree of either this university or any other university. I am pleased to say that her performance during the period was extremely satisfactory.
Company Guide
Faculty Guide
Mr. VIJAY BHASKAR REDDY
Ms. HYMAVATHI
MAX NEWYORK LIFE
INC Faculty Member
Hyderbad
Guntur
3
LETTER OF APPRECIATION
This is to certify that Ms CH.V. RADHIKA pursuing MBA (2005 – 2007) From ICFAI National College – Guntur has successfully completed his project “A Study on Training Program Done By Max New York Life At Various Levels” from 15th April 2007 to 15th August 2007. We appreciate her commitment, Determination and performance during the project and bound to be valuable asset for any organization. I am pleased to say her performance and Sincerity at work during the period was Good.
4
ACKNOWLEDGEMENT
It gives me immense pleasure to express my deep sense of gratitude to Mr. T. SITA RAMAIAH, principal, ICFAI National College GUNTUR, for his valuable guidance and consistent supervision through out the course. I am also thankful to Mr. Vijay Bhaskar Reddy, my Company Guide of Max New York Life Insurance Company , Hyderabad, for his valuable guidance for preparing
the Final Report and also for
providing the necessary facilities. I am extremely thankful to Ms. Ch. Hymavathi Faculty Guide of ICFAI National College, for her timely guidance and support through out the Final Report work. in the course of carrying out the project work. Finally I am indebted to our other faculty members, my friends and my parents who gave their full-fledged co-operation for successful completion of my project. It was a indeed learning experience for me. NAME OF THE STUDENT : CH. V. RADHIKA ENROLLMENT NO
: 5NB11031
5
Executive Summary This Report is an attempt to provide a detailed analysis of the process of training program done by Max New York Life Insurance and benefits of the training. In my complete student internship program I met more than 90 employees. During this student internship program I came to know that, knowledge based economy, training helps people to learn how to do things differently or to do different things. However, my survey suggests that maximum number of employees, in the turbulent, fast changing world, effective training has never been more important. Products are now increasingly knowledge intensive; for this, employers are responsible for providing opportunities for continued learning. In my survey I found that 80% of employees are new to the job and they must undergo the training program. Finally, creating awareness of organization structure and its products to the employee is very important to have individual as well as organization growth. So it can be possible only when the employees go through the training program.
6
Contents History of Insurance Sector
8
Company Profile
15
Project
22
Findings
48
Recommendations
49
Conclusion
50
On the job training
51
Objectives
52
Targets
53
Achievements
54
Limitations
56
Learnings
57
7
Brief History of Insurance Sector in India 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 360degree 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: 1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 - 245 Indian and foreign insurers and provident societies taken over by
8
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. 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: 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January
1973.
107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the 9
Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
Indian Insurance Industry: Learn About Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of Insurance, large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good.
10
Functions of Insurance The functions of Insurance can be bifurcated into two parts: • Primary Functions • Secondary Functions • Other Functions The primary functions of insurance include the following: Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others. Collective bearing of risk - Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also
11
Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain. The secondary functions of insurance include the following: Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured. Small capital to cover larger risks - Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty. Contributes towards the development of larger industries - Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery. The
other
functions
of
insurance
include
the
following:
Means of savings and investment - Insurance serves as savings and 12
investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing incometax exemptions also, people invest in insurance. Source of earning foreign exchange - Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover. The end of the year 2000 marks a significant change and growth of 'India Insurance' industry scenario. Monopoly of Public Sector Insurance company marks an end and Private companies makes inroad. Foreign companies, both Life and General flocked, collaborated and helped astronomical growth of 'Insurance Industry in India'. 'India Insurance' growth was long overdue. Within 1st 12 months of liberation of 'Indian Insurance Industry' 10 licenses for selling life insurance products and 6 licenses for selling non-life products were issued to private companies. The Public sector giant LIC started losing its market share at the cost of stupendous growth of private players. Now 'India Insurance' industry has more than a dozen private life insurance players and 9 private general insurance companies. Aggressive and penetrative marketing strategy coupled with wide product bandwidth was an instant success among the ignorant masses. Most of the private companies registered more than 100% growth 13
till then and are still continuing with such monstrous growth figures. Although, 'Insurance in India' is not regarded as a basic need but it is getting popular among semi urban to rural masses. Top rank private companies like ICICI Prudential Life Insurance, Tata AIG, Bajaj Allianz etc are aggressively researching and innovating products for huge untapped rural 'India Insurance' market. Collaboration with micro finance companies, post offices, rural banks and village management authorities for selling insurance is doing wonders. Life insurance products covers risk for the insurer against eventualities like death or disability. Non-life insurance products covers risks against natural calamities, burglary, etc. They are not as popular as life products in the ' Insurance India's' portfolio. Until very recently it had only corporate buyers, but with natural disasters like, earth quakes, tsunamis, storms and floods becoming more frequent and damaging there has been a sudden spurt in sales of general insurance amongst individuals. Consumerism of life style goods and modern amenities has also contributed to its growth. With more awareness and wide bandwidth of insurance product portfolio the growth for 'India Insurance' story will only get more competitive and more affordable to all sections of Indian society. Present Scenario The Government of India liberalised the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign 14
ownership. Under the current guidelines, there is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001. Non-Life Insurance Market In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the same time, GIC was converted into a national re-insurer. In July 2002, Parliamant passed a bill, delinking the four subsidiaries from GIC. Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. Although the public sector companies still dominate the general insurance business, the private players are slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their operation in 2001.
15
With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project
implementation,
including
geological
risks,
maintenance,
commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure projects. With long term liability, they get a good asset- liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects. Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the existing norms, insurance premium payments are treated as part of the fixed costs. Consequently they are treated as passthrough costs for tariff calculations. Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Commitee. For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the committee's guidelines; and projects above Rs 15 16
billion are subjected to re-insurance pricing. It is the last segment that has a number of additional products and competitive pricing. Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium. The other companies share the remaining risk and premium. The policies are renewed usually on an annual basis through the invitation of bids. Of late, with IPP projects fizzling out, the insurance companies are turning once again to old hands such as NTPC, NHPC and BSES for business. Re-insurance business Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be safely borne from their own funds. The balance risk is re-insured with other insurers. In effect, therefore, reinsurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better spread of risk in the international market, allows primary insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic events and still maintain their financial stability. While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently, all insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to ensure that GIC's 17
role as the national reinsurer remains unhindered. However, GIC reinsures the amount further with international companies such as Swissre (Switzerland), Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat perceptions globally. Life Insurance Market The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were underinsured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving
18
device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unitlinked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatization was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average. Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich dividends. But a rejuvenated LIC is also trying to fight back to woo new customers. The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business
19
(Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. Insurance companies: IRDA has so far granted registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are included, there are currently 13 insurance companies in the life side and 13 companies operating in general insurance business. General Insurance Corporation has been approved as the "Indian reinsurer" for underwriting only reinsurance business. Particulars of the life insurance companies and general insurance companies including their web address is given below:
LIFE INSURERS
Websites Public Sector
Life Insurance Corporation of India
www.licindia.com
Private Sector Allianz Bajaj Life Insurance Company Limited
www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited
www.birlasunlife.com
HDFC Standard Life Insurance Co. Limited
www.hdfcinsurance.com
20
ICICI Prudential Life Insurance Co. Limited
www.iciciprulife.com
ING Vysya Life Insurance Company Limited
www.ingvysayalife.com
Max New York Life Insurance Co. Limited www.maxnewyorklife.com MetLife Insurance Company Limited
www.metlife.com
Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com SBI Life Insurance Company Limited TATA AIG Life Insurance Company Limited AMP Sanmar Assurance Company Limited Dabur CGU Life Insurance Co. Pvt. Limited
www.sbilife.co.in www.tata-aig.com www.ampsanmar.com www.avivaindia.com
21
GENERAL INSURERS
Public Sector National Insurance Company Limited
www.nationalinsuranceindia.com
New India Assurance Company Limited Oriental Insurance Company Limited
www.niacl.com www.orientalinsurance.nic.in
United India Insurance Company Limited
www.uiic.co.in
Private Sector Bajaj Allianz General Insurance Co. Limited
www.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd.
www.icicilombard.com
IFFCO-Tokio General Insurance Co. Ltd. Reliance General Insurance Co. Limited
www.itgi.co.in www.ril.com
Royal Sundaram Alliance Insurance Co. Ltd.
www.royalsun.com
TATA AIG General Insurance Co. Limited
www.tata-aig.com
Cholamandalam General Insurance Co. Ltd. Export Credit Guarantee Corporation
www.cholainsurance.com www.ecgcindia.com
HDFC Chubb General Insurance Co. Ltd. REINSURER
General Insurance Corporation of India
www.gicindia.com
22
Company profile of MAX NEW YORK LIFE :
Max New York Life Insurance “Max New York Life wants people to view insurance as a financial protection and wealth creation instrument and not just a tax-saving tool.” 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. New York Life is a Fortune 100 company that has over 160 years of experience in the life insurance business. Max India Limited is a multibusiness corporate dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic Products businesses.
23
Max New York Life Insurance started its operations in India in 2000. It is the first life insurance company in India to be awarded the IS0 9001:2000 certification. Max New York offers customized products tailored to suit individual's needs. With its various Products and Riders, there are more than 400 product combinations to choose from. Today, Max New York Life Insurance has a network of 57 offices spread over 37 cities all over India. 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 inhouse to ensure optimal control on quality of training. Max New York Life invests significantly in its training program 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 program 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
24
examinations and the agents have the highest productivity among private life insurers. It has established a wide agency distribution network with 172 offices and representatives across 120 cities in India. The company has established additional channel with 22 bancassurance relationships, corporate tie-ups and a strong Direct Sales Team. Through its wide network of highly competent life insurance agent advisors, flexible product solutions and strong customer focus, Max New York life is creating a partnership for life with its customers in India. Max New York Life, one of India’s leading life insurance companies, expanded its presence in the southern region by opening its first general office in the city of Mysore. Max New York Life now has established a countrywide network of 172 offices and representatives across 120 cities in India. Max New York Life, which has till date sold over 1.53 million policies and recorded a sum assured of over Rs. 46,000 crore, has positioned itself on the quality platform. The company has developed a strong corporate governance model based on defined core values of caring, knowledge, excellence and honesty. Its strategy is to establish itself as a trusted life insurance specialist on the bedrock of quality of advice. The company has over 25,300 agent advisors, who are widely considered the best in the business.
25
Max New York Life aspires to be the "life insurance brand of first choice" amongst Indian consumers. To achieve this the company will draw on New York Life's demonstrated competence in developing and managing a superior personal sales network. For the last 46 years consecutively, the largest number of agents qualifying for membership to the Million Dollar Round Table (MDRT) have been from New York Life. The MDRT is the industry's most prestigious organization comprising the world's most successful insurance agents. Max New York Life, a merit oriented and equal opportunities employer, is looking for a few good men and women who will spearhead the effort to realize this vision. “Max New York Life wants people to view insurance as a financial protection and wealth creation instrument and not just a tax-saving tool. Since the launch of our operations, our focus has always been on providing risk protection and long-term wealth creation solutions to our customers. With a diverse product portfolio to meet customer requirements, it is evident that we are setting benchmarks in the marketplace and are well on course of realizing our vision to become India’s most admired Life Insurance Company.” “An ever expanding presence of Max New York Life offices across India reinforces our commitment to serving the nation. We are extremely pleased with our progress in the region and feel that opening an office in Mysore would help us educate people about the true potential and benefits of life insurance. As life insurance specialists, Max New York Life will continue to help consumers make the right choices to meet their financial
26
goals, both for the short and long-term, through sound quality advice offered by our agent advisors and a right mix of product offerings.” he added. 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." It's mission ties in with Max New York Life's philosophy of helping people secure the future of their near and dear ones.
Vision: Vision statement is "Most Admired Life Insurance Company in India".
Mission: • Become one of the top quartile life insurance companies in India • Be a national player • Be the brand of first choice • Be the employer of choice • Become principal of choice for agents
27
Max New York Life Values and Beliefs Excellence "In every aspect of work. Ranging from the in-house training institute to the detailed Personal Insurance Plan. Max New York Life is focused on achieving the highest standards of quality in every aspect of their business". Honesty "Is the heart of the Life Insurance business. Max New York believes that above all, Life Insurance is based on trust. Transparency, Dependability and Integrity will form the cornerstones of the Max New York Life experience." Knowledge "Is what makes experts. Max New York Life is focused on the Life Insurance business. Perfectly combining global expertise with local knowledge, Max New York Life is the Indian Life Insurance specialist." Caring "For the customer. Max New York Life is redefining the Life Insurance paradigm to focus on the needs of the customers. The Max New York service process is responsive, personalized, humane and empathetic." Culture: Our "in house culture recipe" has some of the finest ingredients going into its making. Some of the more prominent aspects of our culture are stated below: 28
• Customer comes first • Do it right the first time • Bias for result oriented action • Financial strength and discipline • Clarity of purpose • International quality standards • Inclusive Meritocracy • Learning opportunities • Fun at work • Commitment to published value system
29
Research Methodology: The Research and Methodology adopted for the present study has been systematic and was done in accordance to the objectives set which has been detailed as below. Research Definition Research is a process in which the researcher wishers to find out the end result for a given problem and thus the solution helps in future course of action. According to Redman & Mory research is defined as a “Systemized effort to gain new knowledge”. Research Design: According to “Claire Seltiz”, a research design is the arrangement of condition and analysis of data in manner that aims to combine relevance to the research purpose with economy in procedure. Nature of Research: Research is basically of two types. 1. Descriptive research 2. Explorative research 1. Descriptive Research: These studies are concerned with describing the characteristic of a particular individual or a group. Determining sources of Data: There are two main sources of data 1. Primary data 2. Secondary data 30
Primary Data: It consists of original information collected for specific research. Primary data for this research study was collected through a direct survey to obtain this primary data a well structured questionnaire was prepared by the researcher. Secondary Data: It consists of information that already exists somewhere and has been collected for some specific purpose in the study. The secondary data for this study is collected from various Japanese Management books . Questionnaire: A set of questions containing a few Technical questions and more number of Opinionated questions are prepared for the employees of both Centralized and Decentralized sections of HR Department. Sample Size: Total sample size is 90 Questionnaire Development: Questionnaire is the most common instrument in collecting primary data. In order to gather primary data from viewers. The present questionnaire consists of following type of questions. Open ended questions Closed ended questions Dichotomous questions Multiple choice questions Ranking question.
31
Open ended questions: It has no fixed alternatives to which the answer must conform. Thus, respondent answer in his/her own words at any length they choose. Closed ended questions: Closed ended questions have no other options other than the selecting the one that close matches the respondent’s opinion or attitude. Dichotomous questions: A dichotomous questions refers to one, which offers the respondents a choice between only two alternatives. Multiple Questions: A multiple choice question refers to one, which provides several sets of alternatives for the respondents’ choice. Ranking questions: These questions are given when there are many points to be considered and to be ranked in priority.
32
Analysis of the project Definition of Training: The systematic development of the knowledge, skills and attitudes required by an individual to perform adequately a given task or job. Training refers to efforts that help enhance employee skills for carrying out the present job. According to Edwin B Flippo, training is the act of increasing knowledge and skills of an employee for doing a particular job. Needs for training: • To improve the current job performance of employees • To familiarize employees with the policies and procedures of the organization. • To enhance the creativity, adaptability and versatility of the employees and to facilitate learning at the work place • To prepare employees for future job. • To change the skills, knowledge and attitudes of the employees on a permanent basis. • To help employees manage their careers. • To maintain knowledgeable work force. • To gain competitive advantage through a knowledgeable work force. • To promote organizational growth through individual growth.
33
Areas of training: • Company policies and procedures • Human relations training • Skill based training • Problem solving training Onsite Workshops for Leadership Team Employees need more than bosses... They need mentors: Professionals skilled at assessing employee development needs and committed to guiding employees toward professional success. Team Leadership Workshop provides managers with proven techniques for effective personnel management. By helping leaders understand and address their employees' requirements, this interactive seminar offers significant benefit to managers at all levels. New supervisors gain a solid grounding in the concept of ''leadership,'' while more experienced managers refresh their commitment to teaching and coaching their team members. This training program provides healthy perspectives for managers at all levels, making it an ideal morale-boosting leadership development experience for mixed groups of front-line supervisors and senior staff members.
34
Leadership Training for Success All managers need methods. Leaders need to know the most effective techniques for guiding teams, mentoring individuals, and validating the results. Without solid methods, managers will revert use a one-size-fits-all approach to leadership that reflects the leader's personality, rather than the employees' needs. Committed, mentoring leadership is essential to employee morale, productivity, and retention. A Results-Oriented Training Program Team Leadership Workshop provides proven methods and procedures for successful people management. Participants receive a step-by-step plan for guiding each employee toward success.
This workshop includes elements of Frank Whyte's nationally respected Team Building Workshops expanding upon that foundation to help leaders: • Recognize each employee's personality preferences and supervisory needs, • Align their leadership style with those of their bosses, colleagues, and subordinates, • Develop competent and committed employees by mentoring and guiding their employees toward success, 35
• Schedule their management responsibilities to ensure that nothing is left to chance, and • Use practiced, real-world scenarios to resolve challenges and remove barriers.
Training Program done by Max New York Life
Training is must for every individual when he enters into the organization. Even though the candidate has experience he also should get training. Why because the organization culture, values and beliefs are different from one organization to other. That’s why the training program plays a key role in every organization. Training program following by Max New York Life Insurance is different at various levels. Mainly in training program the company concentrates on sales managers, agents, operations executives and telecallers. Training program for sales managers: • The training program duration is 15 – 20 days • They get training on product knowledge. • Motivating and encouraging Advisors
36
Training program for Advisors: • The training program duration is 15 – 20 days • They get training on product knowledge • How to convince the people. • Objection Handling Training program for operations executives: • They will get training on customer database files • Taking care of the customer files • Well trained in product information and documentation • Renewals will be informed periodically. Required skills for employees in Max New York Life Insurance: • Interpersonal skills • Excellent communication skills • Understanding nature • Aggressiveness • Convincing skills • Ability to motivate others • Interest to learn
37
Analysis of office staff who are having sufficient Knowledge on life Insurance . No.of Persons
PROFESSION
8
New Advisors Advisors Telecallers Marketing Executives
54 12 26
Diagram of the table:
54
60 50
New Advisors
40 26
30 20
8
12
10
Advisors Telecallers Marketing Executives
0
Having Sufficient Product Knowledge on Insurance
38
Analysis of the table: The above chart showing that advisors only have more knowledge than telecallers, marketing executives and new advisors. Advisors will complete the deals. But after that every thing will take care by operations executives and telecallers. With out sufficient knowledge these both people cant work well. When the telecaller is calling to customer for renewal premium that person should have a knowledge how the premium should calculate, and they should know any extra charges for late payment, and how much grace period will be… these things should know even telecallers and operations executives too.
39
FINDINGS • Trained employees can work more efficiently. • Training makes employees more loyal to an organization. • Training makes an employee more useful to a firm. • Training enables employees to secure promotions easily. They can realize their career goals comfortably. • Employees can avoid mistakes on the job. They can handle jobs with confidence. They will be more satisfied on their jobs. • Training can contribute to higher production and fewer mistakes, greater job satisfaction and lower employee turnover. Also, it can enable employees to cope up with organizational, social and technological change.
40
RECOMMENDATIONS
Create awareness: The Company has to take care of awareness creation about the products and services among the Advisors/Agents Charges: The Company has to reduce the mortality and administration charges. The company has to give periodic training. Product promotion strategies should be improved. Company should consider the present competition and should act according to the customer needs. It Should be like long term training like Fundamental Carrier class , Basic Carrier class which helps the advisors in different stages.
41
CONCLUSION
In this Knowledge-based economy, training helps people to learn how to do the things differently or to the different things. Products are now increasingly knowledge-intensive; for this employers are responsible for providing opportunities for continued learning. To cope with the challenges and competitiveness in the world, every organization needs the services of trained persons for performing the activities in the systemic way. So, training program plays a key role in individual as well as organizational performance.
42
ON THE JOB TRAINING
INTRODUCTION My OJT is to finding the employee potentiality in their concern department. And I have to find how training will helpful for organization as well as individual growth. I have to identify the employees who needs training program and I have to find how can company make the employees to show interest for attending the training program. I have to submit the results what can company get after giving the training to the employees.
43
OBJECTIVES The main objective of doing this project is to study employee attitude regarding the training program and the benefits of the training program. During this student internship program period I have to achieve some thing which is helpful to the development of myself and some value addition to the company. Getting more business to the company because of training program is the main objective. It gives me good exposure of myself and creating good impression of corporate mind. The main objective of this study is to know the employee opinion regarding the training program. To find out what is the training needs in concern area. To find out the benefits of the training program to the employee and to the organization. To find out what is the result for the organization because of giving the training to the employee.
44
TARGETS/ TASKS I have to approach the employee who is working for max New York life insurance Company and should find out are they feeling training will be helpful or not to increase of the performance of the employee. After that I have to find out what are the things should we cover in the training program depending upon the concern department.
45
ACHIEVEMENTS I promoted Max New York Life products during my SIP period. I have showing them as monthly wise as follows,
1st week nd
2 week
In The Month of MAY Training class on IRDA norms and why Insurance is needed Training class, for different products of Max New York Life
rd
3 week 4th week
4 leads
1st week 2nd week 3rd week 4th week
In The Month of JUNE 3 leads 4 leads 4 leads 4 leads
46
1 week 2nd week 3rd week 4th week
In The Month of JULY 4 leads 6 leads 3 lead 4 leads
1st week
In The Month of August Training program was conducted to
st
telecallers who are dull in nd
2 week 3rd week 4th week
Communication skills Training program done to 4 advisors 3 leads 6 leads
47
LIMITATIONS 1. The survey was conducted with in the company. 2. And in survey I have to interact with the employees. But the employees will be busy their works. 3. Getting the good response from the employee will be difficult because of their busy schedule. 4. Time to interact with employees inside the branch is not sufficient. 5. Time Period of my OJT is one of the limitations.
48
LEARNINGS Learning’s in the on the job training 1) Importance of the training program 2) How the training program will help for the individual as well as organizational growth 3) The way to improve communication skills. 4) The way to behave people in corporate world.
49
APPENDIX 1. Name: 2. Designation:
3. What is your opinion on training? Good
Very good
Bad
Time waste process
4. Do you feel that training will helpful for individual growth?
Yes
NO
5. Did you satisfy with training what company conducted here?
Yes
No
6. Is there any improvement in performance after getting the
training? Yes
No
7. Who needs much knowledge regarding company and product? Agents
Tele callers
Operations executives
All
8. In which areas employee needs training? Company policies and procedures Skill based training Problem solving skills All of the above
50
REFERENCES 1) Lynton, R.P. and Pareek, U. “Training for development”, 2 nd Ed., New
Delhi: Vistaar publication, 2002. 2) Bhatnagar, O.P. “Evaluation methodology for training”, New Delhi: Oxford and IBH publishing co.pvt.ltd. 3) Rae, L. “The art of training and development, effective planning”. Vol. 1, New Delhi. 4) Tannenbaum, S. “A strategic view of organizational training and learning”. 5) A hand book of human resource management practice, 8th ed., 2001. 6) Personnel management, Mc. Graw Hill, 6th ed., 1981.
7) www.maxnewyorklife.com
51
Related Documents
Max Newyork Life Insurance
June 2020 6
Max Newyork
May 2020 7
Training And Development
November 2019 32