A

PROJECT REPORT
ON
“STUDY OF EMERGING TRENDS IN INDIA WITH
TELEMARKETING AS A MODEL OF SALES”
Submitted in
partial fulfillment for the award of the degree of
Masters of Business Administration ,
Punjab Technical University, Jalandhar
(2009-2011)

Submitted To: Submitted By:

RBIEBT (MBA) Sonam Sood

90602264194

Rayat & Bahra Institute of Engineering and Bio- Technology (MBA),

Sahauran, Kharar

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 To whom it may concern

This is to certify that the project report titled ‘ STUDY OF EMERGING

TRENDS IN INDIA WITH TELEMARKETING AS A MODEL
OF SALES.’ carried out by SONAM SOOD d/o SH. ANIL SOOD has been
accomplished under the guidance and supervision of manager Mr. SACHIN MADAN of
Sales Department. This project is being submitted by her in the partial fulfillment of
requirements for the award of the Masters of Business Administration from Punjab Technical
University.

This is an original work and has not been submitted by her anywhere else for the
award of any degree. All sources of information and help have been duly mentioned and
acknowledged.

Date:

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 ACKNOWLEDGEMENT

I feel immense pleasure to give the credit of my project work not only to one individual as
this work is integrated effort of all those who are concerned with it. I want to thanks to all
those individuals who guided me to move on the track.

This report entitled “to find out the viable sites at select center with particular reference to
acquiring/issuing transactions” is the outcome of my summer training at MAX NEWYORK
LIFE INSURANCE, GURGAON.

I sincerely express my gratitude and lot of thanks to Mr. SACHIN MADAN for helping me
in completing my project work and making it a great success.

I would like to express my deep sense of gratitude to staff of Rayat and Bahra Institute of
Management who introduced me to the subject and under whose guidance I am able to
complete my project.

Last but not least, I would thank all my friends, faculty members and all respondents who
rendered their precious time for contributing their skills and fill the questionnaire, which
made my project more appealing and attractive.

DATE:
SONAM SOOD
PLACE:

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 PREFACE

After having undergone the practical training with “MAX NEWYORK LIFE INSURANCE.”
I have been able to understand the importance and necessity of obtaining a professional
degree in management. The working of various organs of organization is captured over here
which correlates with one another as it further adds the vastness of my study.
Hence my attempt is to cover all the organizational activities and related facts so as to have
better control over my primary subject of study. The increased significance of understanding
pivot for modern researches.
Dynamic behavior of human resources shows a greater complexity to be overcome by
researches and there is a vast scope left to be undergone.
Today’s
• Complex organization structure.
• Increasing importance of human resources.
• Increasing complexity of job designing and organization.
Hence my study includes human related aspects with reference to organizational functioning.
1. In-depth Analytical study and observation of procedures and system of marketing
which are prevalent in common environment.
2. Management policies and practices determine the success of entire organizational
functioning. No matter whether it is recruitment policy or related to other department,
it has a significant impact over recruitment.
This project gives us an opportunity to get knowledge how business can effected and how to
handle different situations which organization faces.

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 EXECUTIVE SUMMARY

The Insurance industry in India has evolved from the days of the British Raj through the days
of the Swaraj to the modern era of Global Raj. While LIC was the only player in India at one
time, after the opening up of the market in 1999 through the IRDA regulation, the industry
has matured a lot with the entry of foreign players AIG, New York Life, Allianz, etc in
collaboration with the Indian business houses like the Tatas, Birlas, etc.
Most of the insurance companies are tie ups between Indian companies and global players,
which gives this industry a new dimension. Though these players are still small in
comparison to the giant called LIC, they are fast bridging the gap by utilizing the very
immature Indian insurance industry. The issues that had manifested themselves giving rise to
the IRDA Regulation in 1999 have given away to newer growth issues that have cropped up
with the increase in competition. Today in the deregulated industry, there are opportunities
galore with the 200-300 million rising middle class and with their changing preferences and
tastes. In a recent study, The Monitor Group placed the Indian life insurance market at about
US$ 5 billion in 1998 with historical average annual growth rates in the region of 12-13
percent.

Higher growth rates are expected in future. Accordingly, the Monitor Group has projected the
market to reach US$ 25-30 billion by 2008. According to another Report by the Expert Group
of the Confederation of Indian Industry (CII) issued in October 1999, life insurance premium
are likely to account for 18-20% of the gross domestic savings of the country by the year
2010 as compared to around 8% currently.
With such a dynamic market opportunities galore for insurance companies and with the
industry still in a nascent stage insurance companies are looking for newer and efficient
mediums for selling insurance.

The objective of the study was to “Study the emerging trends in India with focus on
telemarketing as a model of sales”.

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The objectives of the study are as follows -:

1. Studying and analyzing the scope of Tele marketing

2. List of potential partners with recommendation on hot prospects.
3. Study the latest trends in the
- Insurance Companies
- Telemarketers
4. Business Models
5. Supreme Court ruling
6. Recommendations

The study involved a survey-based study where Primary Data was collected via
questionnaires and interviews. A questionnaire was developed to gather data from managers,
Sr Managers, Sales people were interviewed to get their views on telemarketing. Efforts were
channelized to gain maximum perspective on the scope and potential of Telemarketing,
which formed the basis of my study. The idea was to study and see what future telemarketing
has in terms of a channel as well as a potential channel for selling insurance.
The Second part of my study was to find potential business partners for Max New York Life
Insurance Co. Ltd. Initial database of roughly 400 companies involved in Telemarketing was
generated and then out of which 300 were filtered out.
Personally went and met the potential business partners and in case of outstation potential
partners teleconferencing was the medium through which ground work for a tie up was done.
The idea was to analyze the potential of telemarketing channel and then be in a position to
recommend business partners for the same.

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Industry trends in telemarketing was a key aspect of the study which formed the part of the
primary data collection which involved collecting information from various other insurance
companies and telemarketing companies which helped present a comprehensive picture.
Four different possible business models prevalent in the industry were studied and
recommendations on the one’s that would best suite Max New York life Insurance Co. Ltd in
present times were made.
The telemarketing industry is facing a Public Interest Litigation filed by Dr Harsh Pathak.
The Petition is pending in court and the industry is waiting for the ruling to come out. The
petition discourages the tellecallers stating that “Tell selling is a breach of Privacy”. The
ruling would have a deep impact on not only out bound call centers but also the companies
for whom they are selling their products. Insurance companies would also be facing the brunt
of the same.
The petition was studied and the impact of the ruling was analyzed.
After the study was done recommendations were made based on my observations

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 CONTENTS
S.NO. CHAPTERS PAGE NO.

1 INTRODUCTION ABOUT PROJECT 9-12

TOPIC
2 INTRODUCTION ABOUT COMPANY 13- 29
3 OBJECTIVES OF THE STUDY AND 30-36
RESEARCH METHODOLOGY
4 DATA ANALYSIS 37-57
5 FINDINGS 58-59
6 RECOMMENDATIONS 60-63
7 CONCLUSION 64-65
8 REFERENCES 66-67
9 ANNEXURE 67-72
10 FINANCIAL STATEMENT 72-75

CHAPTER -1

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 INTRODUCTION
ABOUT

PROJECT TOPIC

PROJECT TITLE
STUDY OF EMERGING TRENDS IN INDIA WITH TELEMARKETING AS A
MODEL OF SALES

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INTRODUCTION:-

Industry Scenario

The progress made by the insurance industry in India since liberalization has been
satisfactory especially since the last few years. The public confidence in the industry is
positive today and the industry on the whole is far more dynamic and has scored well on
number of parameters

Today, there are 15 life insurers of whom14 private life insurers. Similarly of the 12 general
insurers operating in the country eight are private non-life insurers. In addition, we have some
more applications from prospective insurers with us. The insurance industry has been able to
attract foreign direct investment (FDI) of up to Rs1,288.44 crore which is one of the highest
in the services sector.

The first year premium of the life insurance industry has grown by 260 per cent to Rs25,350
crore for the year ending 31st March, 2005, as compared to Rs9,709 crore in the year 2000-
01.

The non-life insurance industry also witnessed a 180-per cent growth, writing a gross
premium of Rs18,095.25 crore in 2004-05 — up from Rs10,087.03 crore in 2000-01.

"Insurance premium per capita in India has increased to $16.90 and overall penetration in
India stood at 3.28 per cent of the gross domestic product in 2003. India's overall world
rankings in terms of total premium volumes improved from 23rd in 2000 to 19th in 2003 and
its share in the world market increased from 0.41 per cent to 0.59 per cent during the same
period. The industry is expected to improve the insurance penetration to at least 5 per cent in
the next five years,".

The IRDA has issued micro-insurance regulations to increase the spread of insurance in the
country, particularly among the neediest segments.

The entry of With the focus on aggressive marketing has made insurance a sunrise industry in
the country attracting young talent.

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 "The industry has successfully experimented with new distribution channels and
bringing down the transactions costs. While the improvements may not look dramatic,
the direction and speed is an indicator of India's emergence on the global scene.”

TELEMARKETING

Telemarketing is the process of selling goods and services over the telephone. It has been
used to successfully market a variety of products ranging from insurance to newspapers to
industrial equipment, and it has the potential for selling virtually any product.
The use of the telephone as a sales tool dates back to the early 1900s, but it was only during
the 1970s, telemarketing techniques became more refined and were incorporated into the
marketing strategies of business of all sizes.

Between 1981 and 1991, spending on telemarketing efforts grew from $1 billion to $60
billion. In 1997 telemarketing sales, to consumers and businesses, totaled $425.5 billion. It
was around this time that telemarketing as a model of sales in India went full throttle.
As per India Infoline.Com on the India Telecom Sector Update, the Mobile telephony
services are rapidly expanding and have contributed to approximately 86% of new subscriber
additions in November 2004. The segment subscriber base grew 3.5% mn to 46mn. Of the
total subscriber addition, almost 76% subscribers were added in GSM mobile segment and
the balance
24% addition came from the CDMA segment.

As per the information published in the BBC News net and video edition on Tuesday, 9
November, 2004; “Indian mobile phone users have outnumbered fixed line customers for the
first time, according to the Telecom Regulatory Authority of India. That the Mobile
telephony services are rapidly expanding and have contributed to approximately 86% of new
subscriber additions in November 2004.”

Telemarketing is one of the more interactive marketing medium available. Telemarketing

allows you to answer your prospects questions, address their concerns, and overcome their
objections.

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There are two kinds of telemarketing— outbound and inbound. Outbound telemarketing calls
are those placed by salespeople to homes or businesses. Inbound telemarketing occurs when
customers call in to businesses to place orders.

Outbound telemarketing is particularly appealing to businesses whose salespeople have

traditionally made outside sales calls. It reduces the cost per contact, increases the number of
contacts that can be made per day or week, and still retains the human element. Computerized
databases of prospects and automated predictive dialers can further extend the potential
number of contacts a telemarketer can make. Outbound calls can be used to canvass for new
business, follow up former customers, and contact new leads.

Outbound calls present an ideal marketing situation in which the telemarketer has the
undivided attention of the prospect and can get immediate feedback. At the same time, the
limited window of opportunity requires that the sales person establish rapport and trust
quickly, listen carefully, and provide clear information. Success in outbound sales is related
to product knowledge and presentation skills and, thus, can be enhanced by training.

Inbound telemarketing is also a very efficient marketing approach that also retains the
element of personal interaction. Calls are generated by catalogues mailed to prospective
customers or by radio, television, or print advertisements.

Telemarketing is the only marketing medium that allows you to adjust your strategy
midstream and make any changes at any time necessary to increase results. With
telemarketing, you can change both your offer and audience with just one phone call.
Telemarketing scripts can be edited with a moments notice. And telemarketing calling hours
can be adjusted.

Telemarketing has been consistently outperforming all other forms of marketing and is a
powerful, cost-effective marketing available today.

One of the most interesting feature of Telemarketing is that it is the only form of advertising
that requires an immediate response.

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 CHAPTER -2

INTRODUCTION

ABOUT COMPANY

Max New York Life Insurance Co. Ltd

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Max India Limited entered Life Insurance sector, in a joint venture with New York Life
International, U.S.A. New York Life International is a fortune 100 company.
The joint venture between Max and New York Life Insurance Company was signed on 3rd
November 1999 and was registered with IRDA ON 15th November 2000

The merger between the two provides the organization provides MAX NEW YORK LIFE
with insurance domain expertise from NYL whereas Max India contributes local market
understanding.

The strategy is to establish itself as a trusted life insurance specialist, based on financial
strength, integrity and a caring attitude through a quality approach to business.

MAX NEW YORK LIFE Insurance Co. Ltd has paid up capital of Rs. 387 crores which
makes it the largest capitalized life insurance company in India. Withover US $25 Billion i.e
1,25,000 crores in annual revenues and over US $11.8 billion i.e Rs 49,000 crore in surplus
and reserves. MNYL is the first insurance company in India to obtain an ISO 9001:2000
certifications. Recently, Standard and Poor gave an AA+ rating to New York Life
International and all its affiliates thus further strengthening the image of the organization in
the market.

Rated in an well established monthly magazine as one of the best places to work in and the
consistent results since the establishment of the organization Max New York Life
Insurance Co. Ltd has established itself as a major and long term player in the Life Insurance
market in India.

Organization Structure:

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 The leadership team at MNYL includes Mr. Analjit Singh, Chairman, Max India Ltd. Mr.
Gary Bennet CEO & MD, New York Life International Inc; Mr. Anuroop‘Tony’ Singh,
Vice Chairman, Max New York Life Insurance Company Limited.
The structure or hierarchy of the top people in the organization has been given below.

Garry Bennett
CEO & MD

Sunil Sharma Debashis Sarkar Rajesh Sud

Chief Operating Officer Dir-Additional Distribution Dir-Agency Distribution &
& Marketing Banc assurance

John poole Rajit Mehta Anil Mehta

Appointed Actuary Dir - Hr Dir – Group Business

Ajay Seth
Dir – Regulatory Affairs Sunil Kakar
& CFO
Compliance

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 Channels Of Selling Insurance

Various Channels of Selling Insurance

Intermediary Direct Marketing Technology Channels Point of

Channels Sales Channel

- Internet
- Corporate Agent
- Broker
- Bank - Retail Stores
- Database Marketing - Bank
- Telesales channel - Kiosks

The channels above have been divided into different parts based on the type of channels they
come under. Most of the business for most of the companies comes through the agency setup
which for MNYL contributes roughly 74% then comes Banc assurance which is contributing
roughly 24%. Infact all the other channels come under these two broad headings.
Telemarketing comes under banc assurance in most of the organizations
There are various channels insurance companies have been using Distribution Channels of
MNYL:
Max New York Life has explored various distribution channels to establish a strong foothold
in the life insurance sector. They are: -

• Tied in Agency – This includes various agents having tie – ups exclusively
with Max New York Life. There are around 7000+ agents and the number is
growing by each passing day.
• Corporate Agency – This includes brokers who do not have exclusive tie –ups with MNYL
and work only on a as-is commission basis, for instance, Bajaj Capital.

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• Banc assurance – This refers to establishing relationships with various banks as to enable
sale of policies through banks. The bank can either only provide a database of their customers
or get into an aggressive mold and directly sell policies. Currently, MNYL has a banc
assurance relationship with Yes Bank and Thane Janata Cooperative Bank.

• Direct Sales Team Channel – In this, the direct sales people are not recruited as agents &
advisors but as employees of the company and they work for a fixed and variable income.
This channel includes telemarketing and an upcoming alliance with Amway called Amsure in
which Amway will be utilizing its distribution channel to sell MNYL’s policies.

• Alternate Distribution Channel – This refers to the franchisee route opted by MNYL,
especially in the East. MNYL, presently, has 9 franchisees.

• Rural Business Model – MNYL has adopted a unique ‘hub and spoke model’ to gain an
entry into rural areas. To begin with, it has opened up area offices in Punjab, which have
various branch offices, connected to them. It plans to further increase its penetration into rural
areas once it is successful in Punjab.
• Group Business – This entails selling policies to an organization. The policy can cover all
the employees working in an organization or employees working at a particular level.

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SOCIAL RESPONSIBILITIES

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.

Max New York Life has also instituted the David Allen trophy for the Most Socially
Responsible Student at SOS Children's Villages. David Allen, an employee of New York
Life, has donated Rs. 50,000 towards the rolling trophy, which will be awarded.

Max New York Life employee visits to SOS Villages are organized regularly to generate a
sense of ownership and involvement among employees.

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INDIVIDUAL INSURANCE
2.1 Whole Life Participating Policy
This policy provides an insurance cover that is guaranteed for your entire life. This policy
also builds cash value, which you can use during your lifetime to fund any unforeseen needs
either by surrendering accumulated PUAs (explained below) or taking a loan. In addition this
policy is also eligible for bonuses.
On death of life insured: Sum Assured plus accrued bonuses.

On Maturity (attaining age 100): Sum Assured plus accrued bonuses.

Bonus: From 3rd policy year, we will declare bonuses every year.

Tax benefits: You are entitled to the following tax benefits under Income Tax Act 1961:

• Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.

• Your DD rider premiums are eligible for an additional deduction u/s 80D up to
Rs.10,000/- every year.

Your claim amounts (from death, through surrenders or on maturity)

We offer you the flexibility to enhance the value of your policy by using the following
riders/options:

Option to Participate in Progressive Bonuses: Allows you to top up your premiums to

purchase additional Sum Assured in your existing policy. It also generates further bonuses.

Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the ten
diseases covered e.g. Heart Attack, Cancer, etc.

Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case of
death or disability caused by an accident.

Term / Term R&C Riders: Offers additional Sum Assured to match your changing needs.
The R&C also allows you the freedom to buy a fresh insurance plan later in your life.

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Waiver of Premium (WOP) / Payor Riders: Waives your future premiums in case you
suffer total disability. The payor rider waives future premiums on your child’s policy in case
you suffer total disability

Guaranteed Insurability Option (GIO) Rider: Allows you to buy guaranteed additonal
insurance at seven different stages in your life.

Unique features in this policy:

Cash Bonuses: You can use your bonuses in the following ways:

Withdraw in cash: bonus will be paid to you by cheque.

Pay your premiums: bonus will be used t Increase your Sum Assured: bonus will be used to
buy additional layers of insurance cover in the existing policy by buying Paid Up Additions
(PUA).

Purchase term insurance: bonus will be used to purchase additional coverage valid for one
year. or pay the next premium.

Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that can
lead to death in 6 months; you can use this money for your treatment. The balance of the
sum assured and the bonuses will be payable to your family on the occurrence of the Insured
Event.

Non Forfeiture Options: In case you are unable to pay your premiums, your policy will
lapse and we will utilize your cash value to buy you insurance coverage in one of the
following ways:

Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.

Extended Term Insurance: The same Sum Assured for part of the remaining term of your
policy.

In case you do not want either of the above, you can choose to take the cash value by cheque.

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2.2 Children

Children's Endowment 18 & 24 Policy enables you to provide for specific needs of your
growing children viz.

Child Endowment to Age 18 enables you to provide for higher education of your child.

Child Endowment to Age 24 enables you to provide for the best possible wedding of your
child and also builds cash value, which you can use during to fund any unforeseen needs by
taking a loan. In addition this policy is also eligible for bonuses.

On death of life insured: Refund of premiums plus interest plus accrued bonus.

On Maturity: Sum Assured plus accrued bonus.

On Surrender of Policy: Surrender value.

Bonus: From 3rd policy year, we will declare bonuses every year.

Tax benefits:
You are entitled to the following tax benefits under Income Tax Act 1961:

• Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.
• Your claim amounts (from death, on maturity or through surrenders) are eligible for
tax exemption u/s 10(10D).

Customize your policy to meet your specific needs:

We recommend that you enhance the value of your policy by buying the following rider:
Payor Rider: Waives your future premiums in case you suffer total disability or meet with
an untimely death. This ensures that your child will still get the lump sum money on attaining
age 18 or 24.

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Unique features in this policy:
Cash Bonuses: bonus will be paid to you by cheque.

Non Forfeiture Options: In case you are unable to pay your premiums, your policy will lapse
and we will utilize your cash value to buy you insurance coverage in the following way:
Reduced Paid Up : A lower Sum Assured for the remaining term of your policy. In case
you do not want the above, you can choose to either take the cash value by cheque or opt for
Automatic Premium Loan (APL) whereby your cash value will be utilized to create a loan
and pay your next premium.

Upon your child attaining the age of 18, he/she will have the option to buy a permanent life
insurance policy without medical underwriting (irrespective of his/her health at that time).

On maturity of the policy, the benefits payable under the policy shall automatically vest with
your child – so that your child received the benefits.

2.3 SAVINGS

Life Gain™ Endowment Policy provides you with an insurance cover that is guaranteed
during the tenure of the policy. This policy also builds cash value, which you can use during
your lifetime to fund any unforeseen needs either by surrendering accumulated PUAs
(explained below) or taking a loan. In addition this policy is also eligible for bonuses.

KEY BENEFITS

On death of life insured: Sum Assured plus accured bonus

On maturity: Sum Assured plus Guaranteed Addition @ 10% of Sum Assured plus accrued
bonus plus terminal bonus (if any).
On Surrender of Policy: Surrender value.
Bonus: From 3rd policy year, we will declare bonuses every year.
Tax benefits:
• You are entitled to the following tax benefits under Income Tax Act 1961:

• Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.

22
 • Your claim amounts (from death, on maturity or through surrenders) are eligible for
tax exemption u/s 10(10D).

Customize your policy to meet your specific needs:

We offer you the flexibility to enhance the value of your policy by using the following
riders/options:
Dread Disease (DD) Rider: Pays a lump sum amount in case you contract any of the ten
diseases covered e.g. Heart Attack, Cancer, etc.

Personal Accident Benefit (PAB) Rider: Pays additional insurance coverage in case of
death or disability caused by an accident.

Term / Term R&C Riders: Offers additional Sum Assured to match your changing needs.
The R&C also allows you the freedom to buy a fresh insurance plan later in your life.

Waiver of Premium (WOP) / Payor Riders: Waives your future premiums in case you
suffer total disability. The payor rider waives future premiums on your child’s policy in case
you suffer total disability.

Unique features in this policy:

Cash Bonuses: You can use your bonuses in the following ways:

Withdraw in cash: bonus will be paid to you by cheque.

Pay your premiums: bonus will be used to pay the next premium.

Increase your Sum Assured: bonus will be used to buy additional layers of insurance cover
in the existing policy by buying Paid Up Additions (PUA).

Terminal Illness Benefit: Pays 50% of Sum Assured (subject to maximum of Rs.
5,00,000/-) to you in case you are diagnosed to be suffering from a terminal illness that can
lead to death in 6 months; you can use this money for your treatment. The balance of the
sum assured and the bonuses will be payable to your family on the occurrence of the Insured
Event.

23
Non Forfeiture Options: In case you are unable to pay your premiums, your policy will
lapse and we will utilize your cash value to buy you insurance coverage in one of the
following ways:

Reduced Paid Up: A lower Sum Assured for the remaining term of your policy.

Extended Term Insurance: The same Sum Assured for part of the remaining term of your
policy.

2.4 RETIREMENT
Easy Life™ Retirement Plan (Participating) Policy helps you to save money for your
retirement, and also provides you with an opportunity to take home a regular retirement
income (i.e. pension) for your entire life from your chosen date of retirement. This income is
a guaranteed amount, guaranteed when your annuity starts. In addition this policy is also
eligible for bonuses.

KEY BENEFITS

On death of life insured: Refund of accumulated premiums plus cash value of additional
pure endowments purchased from bonuses.
On the chosen retirement date: Sum Assured plus additional insurance coverage purchased
in way of bonuses.
On Surrender: Surrender value (minimum guaranteed @ 55% of premiums paid).
Bonus: From 3rd policy year, we will declare bonuses every year.
Tax benefits:
• You are entitled to the following tax benefits under Income Tax Act 1961:

• Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.
• Your claim amounts (from death, on maturity or through surrenders) are eligible for
tax exemption u/s 10(10D).
Annuity Options : You can use the maturity value to buy an annuity from us or any other
IRDA approved annuity provider. We currently offer the following annuity options: Annuity
for life: you will receive a fixed amount for your entire life.

24
Annuity for a guaranteed minimum period of 5/10/15/20 years and for life thereafter: In case
death occurs to you before the guaranteed minimum period, we shall still pay the annuity to
your family for the balance of the guaranteed minimum period chosen by you.

Life Annuity with Return of Annuity Purchase Price: In case of your death, we shall refund
the original maturity value you had used to buy your annuity.

UNTIL LINKED

A Winning Plan From Every Direction

The journey of life is full of wonderful dreams. To make them come true, your need for
protection, investment, and financial liquidity keeps changing at different stages of life. The
birth of a child will require you to increase your insurance cover; a marriage in the family
will require additional money. Similarly on a promotion you may want to increase your
investments, to create a large kitty for future expenses. Usually you would require multiple
financial products to meet all your needs and would have to actively manage them. However
with the Life Maker™ Unit Linked Investment Plan you can meet all your financial needs,
without the tedium of managing multiple products.

How does the Life Maker™ Unit Linked Investment Plan work?

In the Life Maker™ unit linked plan; the premiums you pay are invested in funds offered by
us. You will determine the appropriate ratio of investments into these funds in consultation
with your Agent Advisor. These funds are invested in assets such as equities, money market
instruments, investment grade corporate bonds, and government securities. These funds
offer a wide range of returns. You can choose to invest your premiums in one or more of
these funds, basis your risk taking ability.

In turn, we issue units, which represent the value of your policy i.e. you can "see" the value
of your policy on any day by multiplying the number of your units by the value of units on
that day. The value of these units is called the Net Asset Value (or NAV) and is normally
published in newspapers on a daily basis. The NAV is based on the market value of the
underlying investments in that fund i.e. equities, company bonds, government securities, etc.

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KEY BENEFITS

Flexible Protection

Flexible Investment

High Customization

Attractive Tax Benefits

Choice of two insurance covers

You have the flexibility to choose from two insurance covers - as per your need:

Level insurance cover: In the unfortunate event of death the nominee shall receive higher of
the insurance cover or value of units.

Increasing insurance cover: In the unfortunate event of death the nominee shall receive the
sum of insurance cover and the value of units in the plan. You can change your type of cover
from increasing insurance cover to level insurance cover during the plan tenor after age 60
by writing to us.

You have the option of investing your money in any ratio in four attractive funds. The
choice of your funds is derived from your investor risk profile which looks at factors such as
age, ability to invest & risk appetite.

Types of Funds

Secure Fund - invests 100% in high quality fixed income securities issued by the
Government of India, or companies or other bodies corporate with a high credit rating. This
fund will have low level of risk and return.

Conservative Fund - invests largely in high quality fixed income securities issued by the
Government of India or companies or other bodies corporate with a high credit rating. This
fund will have a low to moderate level of risk and return.

Balanced Fund - invests in both high quality fixed income securities issued by the
Government of India or companies or other bodies corporate with high credit rating, as well

26
as in high quality Indian equity stocks. This fund will have a moderate level of risk and
return.

Growth Fund - invests largely in high quality Indian equity stocks. A small portion of the
fund may be invested in high quality fixed income securities issued by the Government of
India or companies or other bodies corporate with high credit rating. This fund will have a
moderate to high level of risk and return.

In addition, a small portion of each fund may be invested in cash or cash equivalents to
facilitate day-to-day running of the fund.

Asset Types Secure Conservative Balanced Growth

% % % %
Govt.Securities 50-100 50-80 20-50 0-30
Corporate Bond
0-50 0-50 20-30 0-30
(Investment Grade
Money Market
0-20 0-20 0-20 0-20
Instrument/Cash
Equities Nil 0-15 10-40 20-70

You can make partial or full withdrawals to meet your monetary needs. Partial withdrawals
can be made after 3 policy years. If you have chosen level insurance cover, your sum
assured may reduce on partial withdrawal.

No surrender requests in the first three policy years would be accepted. Full surrender can
only be done, post completion of first three policy years.

After the first three policy years, the policy can be surrendered with a nil surrender charge.
The surrender value would be the fund value.

We understand your need to adjust your investment portfolio based on factors like changing
interest rates or the volatility in the equities market or a change in your life stage. The Life
Maker™ plan allows you to switch between funds in any ratio. The switch allows you to
change your risk return profile of your existing investments. In every policy year, the first
two switches are free. The switch option we offer is one of the most powerful and flexible

27
ones in the market where money from one fund can be switched to multiple funds in a single
switch.

Re-direct future premium

Life Maker™ allows you to re-direct your future premiums. You can invest your future
premiums in a fund different from your earlier fund, or to multiple funds in a ratio different
from your earlier ratio (provided the amount paid into each fund meets our minimum in-
force requirement). Re-directing helps you change the risk - return profile of your future
investments. In every policy year, the first re-direction is free

Invest more through fund top-ups to match your cash flows

You can invest extra money in your plan through occasional top-ups at anytime post the
policy commencement dates. However, cumulative top ups will be allowed up to only 25%
of the cumulative Annual Target Premium. Top ups won’t effect any change in Sum
Assured.

Add-on Riders

Customize your policy benefits by adding Personal Accident Benefit or Dread Disease riders
to your policy at inception or on any policy anniversary.

Personal Accident Benefit (PAB) rider - if you opt for this rider, we will pay the rider sum
assured on accidental death or accidental disability.

Dread Disease (DD) rider - if you opt for this rider, we will pay the rider sum assured on
contracting any of the ten diseases covered under this rider.

Guaranteed free units as loyalty bonus

In the last policy year, you can get free additional units, known as persistency units. These
are equal to 2.5% of your annual target premium multiplied by the policy term, but not
exceeding one annual target premium.

If you are 30 years old, and buy Life Maker™ of tenor 30 years, with an annual premium of
Rs. 16,000 for level insurance cover, you will pay a total premium of Rs. 4.60 lacs to the

28
company over the plan tenor. If the rate of return on investments of funds is 6% p.a. and 10%
p.a., the graph alongside illustrates the maturity values (in Rs lacs) you are likely to receive –
Rs 8.55 lacs and Rs 17.60 lacs (@ 6% and 10% p.a. respectively).
If you choose to add top-up premiums to your policy of Rs 4,000 every year, you will pay a
total premium of Rs. 6 lacs to the company over the plan tenor; the maturity values you are
likely to receive will significantly improve – Rs 11.18 lacs and Rs 23.07 lacs (@ 6% and
10% p.a. respectively).

29
 CHAPTER -3

OBJECTIVE OF STUDY
AND

RESEARCH METHODOLOGY

30
RESEARCH: Research refers to the systematic method consisting of enumerating of
problem, formulating the hypothesis, collecting the facts or data, analyzing the facts and
reaching certain conclusions either in the form of solutions towards the concerned problem or
in certain generalizations for some theoretical formulation.

NEED FOR RESEARCH

Every market has to be competitive in his operation to survive and also able to make more
profits. To achieve their objectives they must be careful about their customers. They must
know the satisfaction level of the customer and the usage of their products.
Customer is the king of the market. Today’s market is directed by the customer, so it
is necessary for each and every type of business to know about the varying nature of their
customers, by which they can provide best services to them. By this they will be able to retain
the customer for a long period. All this results in increased sales, higher market share and
more profits.
If a company knows about the needs and behavior of its customers, then it can
develop its strategies according to their need. It is also said that the cost of attracting a new
customer is five times more than as existing customer. So a company should try to satisfy its
customers.
So that’s why “MAX NEWYORK LIFE INSURANCE” has decided to do a research
to know the trends of telemarketing.

31
 OBJECTIVES OF THE RESEARCH

The importance of telemarketing can not be ignored especially in times when the other
channels of selling are getting expensive and saturated. Telemarketing as a channel is
expanding for not only selling financial products like credit cards but also insurance which is
a difficult product to be sold over the phone.
This can be attributed to various factors some of which are as follows

 Cost Effective and efficient

 Communication channels have improved
 Booming telemarketing industry backed by a booming economy
 Receptive and a well informed population
 Penetration of Telephones

The importance of telemarketing has not gone unnoticed at Max New York Life Insurance
Co. Ltd. Steps are being taken to make the best out of this channels. Efforts needs to be
stopped up to make the best out of this channel.

The Objective of the project is to study the scope of Telemarketing and give potential
business partners to Max New York Life Insurance Co. Ltd , based on my understanding of
the business partners.
The study has been done with the objective of providing a complete picture of the industry
and in order to do so various angles were covered. Interactions with Telemarketers was
undertaken with the prime objective of understanding the business model they have with the
telemarketers. The various costs involved in telemarketing from the perspective of
Telemarketers. The objective in doing this was to be in a position to understand the nitty
grities in a telemarketing setup which could be of help to MNY if we plan to start our
venture.
Further interactions with Insurance companies were helpful in understanding their approach
at telemarketing as a model of sales. Also what kind of models they are following and
whether anyone of those could be profitable for MNYL.

32
The Public Interest Litigation filed by Dr. Pathak was also studied with an objective of
understanding whether the litigation could be of threat to MNYL if we continue with
telemarketing as a model of sales.

SCOPE OF THE PROJECT

The Title of the project broadly outlines the project by inquiring an analysis into the
emerging trends indicating to telemarketing as the model of sales.
The study required mystery marketing into competitors and telemarketers. This was required
to study what the competitors were doing differently and where we were lacking when it
came to telemarketing. The various business models being used by various companies and
what would be profitable as a business model for us. To appreciate telemarketing and the
various nitty gritties involved in the same it was imperative to interact with telemarketers.
The various costs involved in Telemarketing, how they generate database what kind of
software do they use and so on.
A Public Interest Litigation against unsolicited calls has been filed by
Dr. Harsh Pathak which could act as a speed breaker for selling insurance over the phone.
The supreme court ruiling was also studied for better clarity on the project.
A questionnaire was used for gathering information. Efforts were made to interact with more
than one person in any organization, the attempt was to maintain the rightness of the
information gathered.
Attempt was made to take all the potential variables into picture and not leave out any.

33
 RESEARCH METHODOLOGY

Meaning of Research Methodology;-

A research methodology defines what the activity of research is, how to proceed, how to
measure progress, and what constitutes success.

Methodology is defined as

1. "the analysis of the principles of methods, rules, and postulates employed by a

discipline" or
2. "the development of methods, to be applied within a discipline"
3. "a particular procedure or set of procedures".

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. It is necessary for
the researcher to know not only the research methods/ techniques but also the
methodology. Researcher not only need to know how to develop certain indices or tests,
how to calculate the mean, median, mode or the standard deviation or chi-square, how to
apply a particular research technique, but they also need to know which of these methods
or techniques, are relevant and which are not.

34
Research methodology to be adopted for the study is as follows:-
Identification of the problem:-
The research project relates to “STUDY OF EMERGING TRENDS IN INDIA WITH
TELEMARKETING AS A MODEL OF SALES”. In it the problem proposed is to be
researched is find out; the reasons why companies use telemarketing for sales people with
special reference to MAX NEWYORK LIFE INSURANCE.
Planning the research design:-
A suitable design has to be planned for any market research. It is the market plan specifying
the procedure for collecting & analyzing the needed information. As per objective of the
study mainly there are four types of research design viz: experimental, diagnostic, descriptive
& exploratory.
Here descriptive research design is proposed with focus on discovering of ideas & insight
about the particular problem.
Planning the sample design:-
The target for the study was employees and consumers of GURGAON. Survey has been
done using questionnaire method, open and close- ended questions being included in the
questionnaire. The secondary data for the research study has been collected from various
magazines, newspapers, journals, books and websites.
Major market players in the products the relevant areas have also been consulted for the
research.
Sample size:-
The sample size is 3 insurance companies and tellecallers of that company.
Data collection:-
The relevant data for the research project is hybrid of primary and secondary data.
Primary data:-
Using personal interview technique, survey, questionnaire & observation method the data has
been collected from targeted focus groups, which are insurance companies and telecallers.
The primary data collection for judgment sampling has done. This purpose has been
formatted with both open & close ended structured questions.

35
Secondary data:-
In addition to the reactions of the selected consumers segments, the factual information
historic background including the sales volume by various manufactures of the product has
been collected with the help of various trade/business journals, company magazines,
brochures, and company reports and concern trade association reports.

LIMITATIONS OF THE STUDY

Limitations of the study are as follows:-

1. The preparation and interpretation of data may not be 100% free from errors and may
be effected by the respondents biased mindset to some extent.
2. Sampling size of targeted customer is small, so the response may not give true
reflections of the mental framework of the population.
3. Judgment/ convenience sampling will be used, so the data may not be of that quality
level as obtained by complete enumeration survey which is not possible due to
financial and time constraints.

36
 CHAPTER -4

DATA ANALYSIS

37
 DATA ANALYSIS

INSURANCE COMPANIES

The insurance companies were visited to get a hang and feel of the industry. The motive was
to understand what is happening in the industry and what differently is being done by
competitors that we can absorb for better results. I visited ICICI-Prudential, TATA-AIG,
Bajaj Allianj, HDFC and compared the data with MNYL.
The effort was to meet more than one person in these organizations separately. In some cases
I did meet the people in the organization in person and in some cases spoke to the other.
Insurance companies were targeted to understand what was happening in the competitor’s
camp and were we lack.
The data collected was with the help of a questionnaire and some of the data collected was
during the interaction.

38
ICICI Prudential:

1. Name of the person contacted?

 Shalini Sharma (Personally)

 Rahul

2. What are channels of selling insurance?

- Agency - 70%
- Direct sales
- Walk in customers Corp – 10%
- Bank assurance - 30% Bank - 16-17%
Telemkting – 4%

(Tied up with) brokers like: India Info line, Net Ambit & Karvy.

ICICI, BOI, SIB, Lord Krishna

3. What is the growth potential of telemarketing? Bullet points

ICICI does foresee a future in Tele Marketing and would like to put thrust in the same
so as to be able to gain the maximum out of the chanell”

Also would like to come out with segment specific products say for ex for doctors

Would like to experiment with Inhouse telemarketing wherin they are in control.

A productive channel which is not only cost effective but also has a strong penetration
i.e in light of the increased density of the the telephone network

39
 Would like to carry the Telemarketing to the next level. Recently I source bought one
ring a leading BPO. Which is a level higher to what the competetiors are doing?

4. Do you have a telemarketing setup?

Yes

They do not use the bank database

Using software called “ATLAS“ for database generation and maintainance.

5. Can u give me names of your business partners?

Net Ambit – Steadily doing business of around 2- 2.5 crores

I call centre – has diff offices did not give the data
Live wire – 50 work stations with around 3 policies being sold daily

6. How much do you invest/costs in telemarketing? Approximately?

Rs 15/- per call this would include everything

Plan to invest more as in are planning to increase the no. of tie ups

7. Approximately what is the productivity per teleseller as in how much sales do you
make in a day through telemarketing?

No. of telecallers No. of calls per day No. of policies per day Cities they operate from

Mould the no as per caller 110 per day say approx 1 policies per
two days
Per Moul
requirement

40
8. Key strengths that an organization needs in terms of telemarketing:-

 Simple/easy to understand program/products. Yes

 Quality of telemarketers (what parameters do u look for…)
- qlty of people
- how long have they been in the business
- back ground of the co.
-
c) Segment specific product design say for

ex tax payers, ICICI is looking for a segment form medical professionals

d) Database generating ability
e) Reach (locations)
f) Any others

9. What is the total revenue that you generate through telemarketing?

3-4%.

They defiantly see it going up to say 7-8% in the next few

And the potential is existing in the channel especially in light
of the steady saturation of other channels

10. In the awake of Supreme Court regulations what do you see is the
scope of telemarketing

 Not in India
 Indian popln is different because

1. They would not bother registering themselves in the Do not call registry”
2. most of them would be ignorant and would not bother after a call

41
  If pitched properly tele is a great model…saying this after seeing this channel.
 Will not make much diff simply because the same happened with credit cards
sales the matter is still lingering…
 Supreme Court judgments take long time…. And till the judgment comes we
can definately make use of this channel.

ICICI is the leader among the private players in India. They extend there dominance even in
Telemarketing. They have a strong product portfolio and are eagerly experimenting with this
channel.
Their selling products are…………………….. ….
ICICI is putting thrust on segment specific products. The biggest advantage with them is the
ICICI bank behind them which not only helps generate database but also funds them.
ICICI has not only tied up with telemarketing companies for selling insurance but also have
in house setup were tellecallers are selling their products. Recently ICICI OneSource (I-
OneSource), one of India's leading business process outsourcing (BPO) providers announced
that it has entered into an agreement to acquire FirstRing, a Bangalore based 650 seater
contact center. The acquisition consolidates I-OneSource's position as one of India's leading
offshore outsourcing services providers. The acquisition of FirstRing increases the scale of
their operations and their value proposition in the market
ICICI is also unique because they have developed a Software called ‘ATLAS’ which
compiles database from everywhere in a central server which is being used by their
tellecallers and the database can be filtered for calling up a specific segment as in they can
use it to generate information of all lawyers from their database.
From my analysis one prominent reason why I-Pru is doing well is because of there ability to
roll out products faster and an array of ULIP Products. We take a time period of 1 yr to roll
out a product which is a long time.
ICICI has started making a strategy on how they are going to build up from now in
telemarketing and how much do they plan to generate from Telemarketing say 5yrs down the
line . Infact they have a team dedicated to the same.

42
TATA AIG:

1. Name of the person contacted?

Pooja Dudeja (Personally)

Manager Bancassurance

Pooja Nanda

2. What are channels of selling insurance? / Revenue generated per chanell?

- Agency – 60% approx
- Telemarketing – 5%(+) around 6%
- Direct sales
- Walk in customers
- Bancassurance -24% (are planning to put more thrust in this channel in the last few
yrs this has been doin preety well)

(HSBC, Citibank, Union Bank of India, Singapore Bank)

(Corp Agents – India Bulls, Karvi)

3. Do you have a telemarketing setup?

Yes and is doing well

Close the deal on the phone
They have a product (retirement plan , and health products)
2-3 products they do plan to launch exclusively for Telemarketing
Currently

4. Can u give me names of your business partners/any?

ATS Services,

43
 Live wire- 50 workstations with around 6 teams

5. Approximately what is the productivity per teleseller as in how much sales do you
make in a day through telemarketing?

No. of telecallers No. of calls per day No. of policies per day Cities they operate from

30 – 40 in 70 – 80 calls per day 10% of the calls are

Teams of 3-4 Per caller converted into meetings

6. Key strengths that an organization needs in terms of telemarketing:-

a. Simple/easy to understand program
b. Quality of telemarketers (what parameters do u look for…)
- Mandatory training every month is provided by the company to every one
TATA cos
g) Database generating ability GIC
h) Reach (locations)
f) Segment specific product design
i) Any others no health Qs

Launchd
Simplified 2page form
Products

No documentation
On wages etc
Currently selling
MAHA LIFE and MAHALIFE GOLD

7. In the awake of Supreme Court regulations what do you see is the

scope of telemarketing?

44
  The same thing happened in the credit cards sales but nothing happened
 The supreme court judgment would drag for a while and by the time they even
come out with a ruling companies can take out the maximum from this
channel.
 Companies can surely find a route around the same.
 SMS is being done and this can be another potential.

TATA Aig is one of the fastest growing companies when it comes to Telemarketing, infact
they plan to launch products specifically for this channel (they are basically moderating
products). TATA-Aig has started inhouse telle calling to sell their products.
Along with ICICI this is one organization which has the capacity to roll out products faster
which happens to be one of the biggest strengths.
Even if we can not roll out newer products we can defiantly trim down the paper work and
probably customize our products for better results.

45
BAJAJ ALLIANJ:

1. Name of the person contacted?

Anshul Garg

2. What are channels of selling insurance?

- Agency - 65-68%
- Telemarketing
- Direct sales
- Walk in customers
- banca 30-35% Primary Alternate Channels

TM
Bank Corp Agents

Direct Sales

3. What is the growth potential of telemarketing? Bullet points

 With the right strategy and specific products this segment would be able to give a
steady rate of returns as compared to
other segments.
 A young chaneel which has the potential to grow.

4. Do you have a telemarketing setup?

As an organization they do not believe in this channel….not right now very sure of
that.

46
 Would in the due course of time like to get in this channel….work is happening at the
undercurrent level to get the work done.

This is niche segment and will remain one and therefore

5. Can u give me names of your business partners?

Do not have any as of now…in the process of talking and are looking into getting
them.

6. Approximately what is the productivity per teleseller as in how much sales do you
make in a day through telemarketing?

No. of telecallers No. of calls per day No. of policies per day Cities they operate from

NO TELLE CALLER

7. Current scenario in the Indian insurance market? (Optional)

 Only 2 % of the insurable population is under the insurance bracket.

 Scope is enormous
 Break even by 2008-09 say within 5yrs…after that the psychological barrier
would move which would be great in terms of the growth symptoms.

Bajaj Allianz is a joint venture between the Indian power house Bajaj and the German
company Allianz.

47
As an organization they are not involved In telemarketing as their model for selling
insurance. Bajaj ALlianj believes that telemarketing will remain a niche segment and
therefore they plan to invest their energies in the Banca channel which seem to have the
maximum growth potential. Inspite of this they have not ruled out this option and in the near
future they might invest in this channel for selling insurance. They claim to be in the process
of studying the channel. But according to Anshul Garg Allianj does not believe in this
channel because this channel is not very ethical.

HDFC bank was also contacted they are not into using telle selling as a model of sales and no
concrete information was made available by Pushkar Mangalani because of which it has not
been included in the report.
This was what the insurance companies had to say. Further some of the answers to the
questions given could not be presented here but have been imbibed in the business models
and also in the cost sheet which would be presented ahead.

48
TELEMARKETERS:

Telemarketing industry is not a very old industry but has grown tremendously over the past
few years. The project would have been incomplete without taking the perspective of
telemarketers.
The medium was the questionnaire and again attempt was to interact with more than one
person in the organization to be able to get genuine data and also to cross check.
The following pages have the answers to questions that were asked and the aswers to the
same. Some of the questions that could not be included here have been absorbed in the cost
sheet and in the business models.

P.T.O

49
BAJAJ :

1) When were u setup?

Bajaj was setup a few years ago… the industry came up in around 1992

2) Key strengths an organization for doing

well in an TM?
1 manager

supervision
1 Supervisor 1 Supervisor 1 Supervisor

6 to 8 telle callers 6 to 8 telle callers 6 to 8 telle callers

quality of tellecalers
database
script/selling technique
any others please specify

3) How do you generate database / can you specify the costs that you incur in the
process?

Two methods of purchase of data

1. Black mkt database – can range from 2ps to Rs5/- a name
For ex. Database of premium club wuldcost RS 5/-
per name
2. Organized way- Collecting Survey coupons i.e here quality is
better and is less expensive

50
 4) What are the differences if any in selling financial products, credit cards and
insurance?

People seem to be fed up with credit cards thing they have this perception they can be tricked
into usng this moreover TODAY INSURANCE IS THE IN THING AND MORE OVER
COMES UNDER THE NEED CATEGORY.

5) How easy it was for a new entrant/rich entrant example Citibank to start from scratch
a telecalling setup to sell their products?

 Basically no point unless and until you not only have a lot of products under a
lot of categories ex ICICI has recently bought one ring.
 It is easy for them not difficult they can hire experts to do the same.

6) What are the various selling techniques/costs included that a telleselling model would
have?

FOS Around 100 calls in a day approx 10-15 positive

reponses ranging from warm to hot the FOS are able to convert around 2-3 out
of these finally

51
 7) The constraints you face now and the ones you faced when you started this setup?

 Database was and is one of the major constraints

 Attrition rates are higher upto around 30-40 percent in the industry
 Technical bugs in case of an automated setup.
 The Supreme Court ruling is going to be there in the throat like a bone till
some judgment is passed.
 Competition is stiff

8) What is the annualized turnover that you have and do you set targets individually/
what is the trend across the industry?

We give them targets as in they are supposed to get business worth 15 times there salary per
month

9) Can you take me through the entire process from scratch to setting up a facility i.e till
the first call is made?

If we go for an automated call centre the biggest cost factor is the hard ware and software the
soft ware is around 4 lacks which excludes the annual license charges that are to be paid that
is the per user charges for using the software which comes out to be around 12,000 – 15,000
per conection
Software is provided by Alcatel, Siemens and Erickson the most prominent one being from
Alcatel
For The Analog Setup the charges are around Rs40,000/-

Then to start with the infrastructure costs are preety huge esp

The telephone bills

52
To strt with we need to set up the infrastructure and simultaneously wrk out the sft ware thng

Getting tellecallers is nt easy and then retaining them is difficult too….we wuld need better
quality tellecallers in case of an automated setup

It is another headache for us to brk even because we wuld strt with selling only a couple of
products

The new IRDA rulling states tht there is a minimum of 5 yr lock in period werein u
cannot withdraw ur product before 5 yrs …might hit companies with an array of 1
yr products like bajaj

10) What kind of a model would you prefer?

Personally we would like to go in for the traditional method the other is simply a
manipulation of accounts. That is simple and easy to understand

11) What are your operational problems after the no. of years you have been in the
business?

Automated setup software bugs (the bell rings if the same is a hello tune the software does
not collect that and the phone is disconnected)

Attrition rates are as high as 40 % in the industry

Upgrading the systems and training the employees

Live Wire:

1. When were u setup?

2. Key strengths an organization for doing

53
 well in an TM?

a) supervision

CEO

Chief Dir Mkting (Nitin Sawhney) {He started the centre}

Head of Operations

Manager Manager Manager Manager

Asst Mngrs Asst Mngrs

JrMngr Jr Mngr

Team Leaders Team leaders

Team of 8 – 10
Every team givn
diff names

b) Quality of tellecalers
c) database DATABASE of approx 3- 4 Lakhs. They
Generate there own database
d) script/selling technique

any others please specify

3. Infrastructure

No. of tellecallers / seats

No. of employees

54
 The No. of people who are working for diff companies
Hutch – 150 to 200
In jalandhar office -- 100 work stations
In Lucknow office -- 40 work stations

TATA-AIG - 110 in total

For LIFE – 50 work stations
For Gen Insurance – 60 work stations

Standard Charted -- 40 Workstations

ICCI-PRU -- 30 workstations
ICICI-Lombard -- 30 workstations

call centre automated – Automated and analog setup

4. How do you generate database / can you specify the costs that you incur in the
process?

We generate database from various sources

- company database
- surveys

5. How easy it was for a new entrant/rich entrant example Citibank to start from scratch
a telecalling setup to sell their products?

Not very difficult as long as they have a lot of products and have
well defined objective

6. What are the various selling techniques/costs included that a telleselling model would
have?

100 calls per day

Get through around 60 customers
25 presentations are made in a day
1-2 leads are generated which can be closed
Field conversion is approx one third to One fourth

55
 For a conditioned Tellecaller he/she sells 3-4 policies per day were as a new would approx do 1-2.5

7. The constraints you face now and the ones you faced when you started this setup?

8. What is the annualized turnover that you have and do you set targets individually/
what is the trend across the industry?

 TATA AIG biz they sell 3-5 policies per work station

 TATA AIG --- FYP comes out to be approx 12,000

FP comes out to be 8,000

 FOR TATA-AIG out of every 100 policies 10 cases would bounce as in check would bounce etc.

 For TATA AIG they are selling Maha life Gold, Health Products, Retirement Solution, Mahalife.

9. Can you take me through the entire process from scratch to setting up a facility i.e till
the first call is made? Costs involved

The answer given to this question has been implemented in the cost sheet

10. How do you monitor goals and what do you do if the same are not being achieved?

Have teams of 7-10 with names like Gladiator, Terminators and so on for competitive
reasons, constant appraisal of the winning teams is done and .

Training is given regularly

11. What kind of a model would you prefer?

56
 There Management has taken a conscious decision fro not going for the
corporate agency have been asked for the same by
ICICI
TATA-AIG

They were receptive to the proposal for goin for fixed cost for some time and then may be
they would become our corp agents

Working with TATA-AIG on a fixed compensation basis

They prefer the fixed basis simply because it is a safe bet were a fixed amount would be
coming in regularly unlike in a variable setup were the cash component coming in hand
would depend on the no. of policies they sell a gamble which these companies are generally
not ready to take.

57
CHAPTER -5

FINDING

58
59
 CHAPTER -6

RECOMMENDATIONS

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 RECOMMENDATIONS

The telemarketing industry is in a nascent stage but has experienced

a tremendous growth. MNYL should look seriously at this as a model of sale and in order to
get the best out of this channel serious step need to be taken. Based on my study of this
domain and the insurance industry and also were we lack the following recommendations
could be of some help to MNYL

1. Simple and easy products: One of the most important and crucial factor in selling insurance
over the phone is availability of simple and easy products. This was the most important
variable for not only telemarketers but also for insurance companies. Products which are to
be sold over the phone should not have a lot of paperwork and should not have a lot of strings
attached. They should be easy to understand.We should customize products i.e come out with
more over the counter products. The paper work should be reduced and the mode of payment
made easy.
Example. TATA-AIG sells Mahalife and Mahalife gold which are doing quite well, .

2. Segment Specific Products: Another factor which is swinging in favour of some insurance
companies is that they have started coming out with segment specific products. We need to
come out with products customized for a specific segment which would suite the needs of
that segment. This would help channelize our efforts.
Example. ICICI-Pru has already started implementing this strategy were as TATA-
AIG has been working on such products

3. Training : Max New York Life Insurance Co. Ltd is one of the leaders when it comes to
training. We should make the maximum out of this. Training should not only be extended to
team leaders or managers but also to tellecallers. Monthly or Bi monthly capsules of training
would be of help as it would give some sense of belongingness to tellecallers while making
the pitch along with better understanding of the products.

4. Traditional Vs ULIP Products: We have an array of Traditional products and we

lack when it comes to ULIP products. Ulip products tend to do better when it comes to

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 telemarketing, we would have to come out with newer and better products if we are to do
better.

5. Business Partners: As of now we of our biggest weakness is that neither do we have

big business partners nor do we have a lot of work stations. We would have to tie up with
big and established organizations and at the same time increase the no. of workstations also.
Net Ambit our business partner one of the leading organizations when it comes to selling
Insurance products over phone is doing business of only 15-20 lacks whereas they are
doing steady business of 2 crores steadily. Were we lack here is that we have only 4 work
stations. Net ambit, ATS services and the kind are big names we need to tie up with such
organizations and if we have existing tie ups we need to push up the number of seats.

6. Teams of tellecallers: We need to monitor the internal operations of tellecallers

constant appraisals, incentives are a must. We should insist of two teams of tellecallers and
friendly targets and competitions between these teams should be encouraged. It would
definitely help in attaining targets rather than mechanically callers making the calls. We
need to look at tellecalling at every possible micro level.

7. Generally it has been noticed that after the product has been sold it is not followed
up and we need to follow up the product with the same zeal and effort. We need to focus on
productivity and persistency

8. MNYL should push our potential business partners to become our agents. Generally
the major concern with these companies with Licensing and becoming agents is that they
would then not be able to tie up with other companies. We need to negotiate on increasing
the variable component. How this would help us is that their will be virtually no investment
from our side and still we would be earning. On the other hand the value proposition for
telemarketers is that they have an opportunity to earn more if they increase the variable
component. For this we need to gain the confidence of the telemarketers. In this kind of a
setup even the telemarketers would like to push our products.

9. We need to channelize our efforts i.e we need to think long term in Telemarketing
because this channel Is here to stay unlike what the general perception is. We need to move
in a phased manner i.e if we are putting thrust on the traditional method today, we can not

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neglect the other models the least we can do is parallely work on our database and explore
other models which if not today but could be possible options 5 years down the line.

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 CHAPTER -7

CONCLUSION

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 CONCLUSION

After two months working on this project I feel that telemarketing will be one of the steadiest
channels of selling insurance. There is no denying that Agency and Banc assurance will be
the most productive of all channels and Telemarketing will be the niche channels. Inspite of
all this channels will be the most productive and in terms of the investment made. It will
remain the most cost effective channel.

Telemarketing should get cheaper with falling phone calls and deeper penetration of
telephones.

Max New York Life Insurance Co. Ltd Should seriously look at this channel for selling
Insurance.

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CHAPTER -8

REFRENCES

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 REFERENCES

• www.maxnewyork.com
• www.google.com
• www.icicipru.com
• www.tataaig.com
• www.mouthshut.com

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CHAPTER -9

ANNEXURE

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 ANNEXURE

The most crucial part of the study was the questionnaire, the questionnaires were designed
separately for Insurance companies and telemarketers.
The questionnaire given below was designed for insurance companies. Mystery marketing
was the tool that was used to get the questionnaire filed from these insurance companies.

Questionnaire for Insurance Companies

1. Name of the organization?

2. Name of the person contacted?

3. What are channels of selling insurance?

- Agency
- Telemarketing
- Direct sales
- Walk in customers

4. What is the growth potential of telemarketing? Bullet points

5. Do you have a telemarketing setup?

6. Can u give me names of your business partners?

7. How much do you invest/costs in telemarketing? Approximately?

8. Approximately what is the productivity per teleseller as in how much sales do you
make in a day through telemarketing?

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No. of telecallers No. of calls per day No. of policies per day any other information

9. Key strengths that an organization needs in terms of telemarketing:-

a) Simple/easy to understand program

b) Quality of telemarketers (what parameters do u look for…)
-
-
-
-
c) Segment specific product design
d) Database generating ability
e) Reach (locations)
f) Any others

10. What is the total revenue that you generate through

telemarketing?

11. Requirement of an insurance company for opting the telemarketing?

12. Current scenario in the Indian insurance market? (Optional)

13. In the awake of Supreme Court regulations what do you see is the scope of
telemarketing

14. SWOT Analysis of telemarketing

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The questionnaire was designed to get the perspective of insurance companies on
telemarketing, their take on the growth potential of this channel, what is being done by them
to get the maximum out of this channel. And so on.

Questionnaire for Telemarketers

The following questionnaire was used for telemarketers. The interactions with the
telemarketers were helpful in understanding how the business works and what would be
required for an insurance company to setup a complete new setup. The questionnaire was
aimed at understanding the setup, the various costs and the telemarketers perception of the
industry and the future of this industry.

1. When were u setup?

2. Infrastructure
-no. of tellecallers / seats
-no. of employees
-no. of offices
-no. of locations
-call centre automated

3. Key strengths an organization for doing well in an organixation?

-supervision
-quality of tellecalers
-database
-script/selling technique
-any others please specify

4. How do you generate database / can you specify the costs that you incur in the process

5. What are the differences if any in selling financial products, credit cards and
insurance?

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6. How easy it was for a new entrant/rich entrant example Citibank to start from scratch a
telecalling setup to sell their products?

7. How easy/difficult is it for a new entrant/rich entrant to start from scratch a telleselling
setup?

8. The constraints you face now and the ones you faced when you started this setup?

9. SWOT of the channel?

10. What is the annualized turnover that you have and do you set targets individually/
what is the trend across the industry?

11. Can you take me through the entire process from scratch to setting up a facility i.e till
the first call is made?

12. How do you monitor goals and what do you do if the same are not being achieved?

13. What kind of a model would you prefer?

14. What are your operational problems after the no. of years you have been in the
business?

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