Talking to The Financial Express, Max India head of marketing Shyam Sundar, said, "We are in the final stages of preparing the bid document and will be filing our application for a licence in the life insurance segment soon."As per the agreement between the two companies, Max India will hold an equity of Rs 74 crore in the Rs 100 crore joint venture company - Max New York Life. The remaining equity of Rs 26 crore will be subscribed by the US company.

Sundar said that the joint venture proposed to obtain a licence in the life insurance sector on the basis of the marketing plan, which was currently being prepared, and on the financial strengths of the two partners. New York Life is a Fortune 100 company, with a consolidated asset of $95 billion and $131 billion in assets under management. The company also has the highest numbers of American non-resident Indians (NRIs) as policy holders and agents. Max India, on the other hand, has business interests in diverse sectors like telecom services, electronic components, bulk pharmaceuticals and specialty plastics.

Sundar said, "We have undertaken consumer research and are working on the kinds of life insurance policies which an Indian consumer will prefer."The agreement to jointly start the life insurance business between the Max India and New York Life, which is one of the largest life insurers in America, was signed in November 1999.

The joint venture company proposes to issue its first life insurance policy within a month of being awarded a licence. As per the company's plans, the company will be investing funds generated from its policies in the Indian infrastructure sector.

The joint venture, according to Sundar, will offer a range of "mass customised" products from simple short-term life insurance policies to unit linked plans. The customer will be given the choice to personalise the policy within a stipulated parameter.

The company's plans also include the development of specialised products for the rural market.

The joint venture proposes to build a network of professional agents for selling insurance policies. These agents will undergo vigourous training to not only counsel customers, but also help them make an informed choice regarding the appropriate policy Sundar said. The company hopes to employ more than 10,000 full time agents in India by 2010.