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A PROJECT
REPORT ON
KOTAK LIFE
INSURANCE
BY:- VARUN BAWA
EXECUTIVE SUMMARY
Monopoly of LIC has been broken to make Indian Insurance to change its face
and pace to tap the market and to make the new challenges in it. Insurance in
India is not about India only; it is an open sector for the private players. The
name which you would see in Indian insurance market is something like: -
+ Aig (foreign player) and so many like them. Companies now are tapping a lot
of ways to capture the market and hence adopting different ways to hold the
and along with it meeting their own targets to achieve the position of no.1 in
the our target competition. For this we did developed a questionnaire and I did
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ABOUT INSURANCE
of the Life and other assets. Under the plan of Insurance a group of people are
brought together and their share of money is pooled to manage the loss suffered
by any of them.
in its basic form is defined as “ A contract between two parties whereby one
party called Insurance insurer undertakes in exchange for a fixed sum called
premiums, to pay the other party called insured a fixed amount of money on the
In simple terms it is a contract between the person who buys Insurance and an
Insurance company who sold the Policy. By entering into contract the Insurance
Premiums.
to provide for this protection. By paying a very small sum of money a person
can safeguard himself and his family financially from an unfortunate event.
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For Example if a person buys a Life Insurance Policy by paying a premium to
the Insurance company , the family members of insured person receive a fixed
to hedge against the risk of potential financial loss. Insurance is defined as the
equitable transfer of the risk of a potential loss, from one entity to another, in
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Characteristics of Insurance
1. Sharing of Risk
2. Cooperative device
7. Insurance is a business which spreads the loss and the risk of few people in
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ORIGINE OF INSURANCE
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to
bear risk of the caravan trade by giving loans that had to be later repaid with
interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi
granted legal status to the practice. That, perhaps, was how insurance made its
beginning.
Life insurance had its origins in ancient Rome, where citizens formed burial
clubs that would meet the funeral expenses of its members as well as help
also got more and more refined. With the discovery of new lands, sea routes
and the consequent growth in trade, medieval guilds took it upon themselves to
protect their member traders from loss on account of fire, shipwrecks and the
like.
Origin in India
Insurance in India can be traced back to the Vedas. For instance, yogakshema,
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Derived from the Rig Veda. The term suggests that a form of "community
Burial societies of the kind found in ancient Rome were formed in the Buddhist
period to help families build houses, protect widows and children. Bombay
Mutual Assurance Society, the first Indian life assurance society, was formed in
1870. Other companies like Oriental, Bharat and Empire of India were also set
up in the 1870-90s.
It was during the swadeshi movement in the early 20th century that insurance
witnessed a big boom in India with several more companies being set up.
The Insurance Act was passed in 1912, followed by a detailed and amended
provident fund societies in the country's life insurance scene. However, in the
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As a result, the government decided nationalizes the life assurance business in
India. The Life Insurance Corporation of India was set up in 1956 to take over
For years thereafter, insurance remained a monopoly of the public sector. It was
only after seven years of deliberation and debate - after the RN Malhotra
Committee report of 1994 became the first serious document calling for the re-
opening up of the insurance sector to private players -- that the sector was
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KINDS OF INSURANCE
1. General Insurance
2. Life Insurance
Insurance of the non life assets are called general insurance, this includes loss
of asset against water, fire, earthquake etc. With the detarrification in the Indian
sector’s companies has been broken. With the entrance of the new private
Fire and allied perils, flood storm and inundation, earthquake and so on. There
are products that cover property against burglary, theft etc. The non-life
are policies that cover the hull of ships and so on. A Marine Cargo
policy covers goods in transit including by sea, air and road. Further, insurance
of motor vehicles against damages and theft forms a major chunk of non-life
insurance business.
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In respect of insurance of property, it is important that the cover is taken for the
actual value of the property to avoid being imposed a penalty should there be a
insured will have to bear a ratable proportion of the loss. For instance if the
value of a property is Rs.100 and it is insured for Rs.50/-, in the event of a loss
to the extent of say Rs.50/-, the maximum claim amount payable would be
Rs.25/- (50% of the loss being borne by the insured for underinsuring the
property by 50%). This concept is quite often not understood by most insured.
Personal insurance covers include policies for Accident, Health etc. Products
offering Personal Accident cover are benefit policies. Health insurance covers
i.e., hospitals. The Third Party Administrators also provide service for
reimbursement claims.
Accident and health insurance policies are available for individuals as well as
credit cards or deposit holders in a bank etc. Normally when a group is covered,
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Liability insurance covers such as Motor Third Party Liability Insurance,
Workmen’s Compensation Policy etc offer cover against legal liabilities that
may arise under the respective statutes— Motor Vehicles Act, The Workmen’s
Compensation Act etc. Some of the covers such as the foregoing (Motor Third
days. Many industries insure against Public liability. There are liability covers
There are general insurance products that are in the nature of package policies
offering a combination of the covers mentioned above. For instance, there are
package policies available for householders, shop keepers and also for
Suitable general Insurance covers are necessary for every family. It is important
to protect one’s property, which one might have acquired from one’s hard
earned income. A loss or damage to one’s property can leave one shattered.
have left many homeless and penniless. Such losses can be devastating but
insurance could help mitigate them. Property can be covered, so also the people
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A Health Insurance policy can provide financial Relief to a person undergoing
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About Life Insurance
Life Insurance is insurance for you and your family's peace of mind. Life
insurance is a policy that people buy from a life insurance company, which can
be the basis of protection and financial stability after one's death. Its function is
It can also be a form of savings in the long run if you purchase a plan, which
of life insurance is that it can be tied in with a person's pension plan. A person
These are considered private pension arrangements. In addition, you should also
make a list of what you feel needs to be protected in your family's way of life.
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Life Insurance in India
Life Insurance in India existed from long time. The modern concept of
was the first Insurance Company who did Insurance for the Indian in 1818 and
government in it, private market players ruled the market as they want to, that is
why government intervened in between to protect the interest of the mass and to
safeguard the money involved in it. Government took the initiative and banned
the private players to involve in Insurance market. All private companies were
took over by Government and Insurance market was turned to Public sector and
Life Insurance Corporation of India was formed in 1956 to make the Insurance
reachable at remote areas and that even by low premiums or better said as
in India till now a lot of changes have been made but the most significant
change was in 1999, when IRDA was formed. IRDA means Insurance
opening the insurance sector for the Private players again but along with that to
have a check upon those private players an IRDA has to act as a governing
body to safeguard the interest of the public hose money is involved in it From
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that time i.e. from the year 2001 insurance sector was opened for the
Sector is on the boom and business is flourishing and a lot of private players are
coming into business. Here the private players doesn’t indicate to Indian Private
Companies but also foreign players are also involved in it, but to manage the
money flow in and outside the country IRDA takes care of the contribution of
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10. MetLife India Insurance Company Ltd.
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MAJOR PLAYER OF INSURANCE IN INDIA
considered the financial capital of India, the Life Insurance Corporation of India
currently has 8 zonal Offices and 101 divisional offices located in different
parts of India, at least 2048 branches located in different cities and towns of
India along with satellite Offices attached to about some 50 Branches, and has a
network of around one million and 200 thousand agents for soliciting life
insurance business from the public. Over its existence of around 50 years, Life
and selling life insurance in India, created huge surpluses, and contributed
The Corporation, which started its business with around 300 offices, 5.6 million
policies and a corpus of INR 459 million, has grown to 25000 servicing around
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Bajaj Allianz General Insurance Company
Limited (recently demerged from Bajaj Auto Limited) and Allianz AG. Both
India. The Company has an authorized and paid up capital of Rs 110 crores.
Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz.
combines the Tata Group’s pre-eminent leadership position in India and AIG’s
financial services organization. The Tata Group holds 74 per cent stake in the
insurance with AIG holding the balance 26 per cent. Tata AIG Life Insurance
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Max New York Life Insurance Company Ltd. is a
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
Max New York Life has adopted prudent financial practices to ensure safety of
insurance company and second largest insurance in India after LIC. ICICI
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financial services group headquartered in the United Kingdom. ICICI
Prudential was amongst the first private sector insurance companies to begin
stands at Rs. 37.72 billion (as on March, 2008) with ICICI Bank and Prudential
plc holding 74% and 26% stake respectively. For the year ended March 31,
2008, the company garnered Retail New Business Weighted premium of Rs.
6,684 crores, registering a growth of 68% over the last year and has
underwritten nearly 3 million retail policies during the period. The company has
assets held over Rs. 30,000 crore as on April 30, 2008.ICICI Prudential Life is
also the only private life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the
highest rating, and is a clear assurance of ICICI Prudential's ability to meet its
years, ICICI Prudential Life has retained its leadership position in the life
insurance industry with a wide range of flexible products that meet the needs of
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INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY (IRDA)
act of Indian Parliament known as IRDA Act 1999, which was amended in
the act is "to protect the interests of the policyholders, to regulate, promote and
ensure orderly growth of the insurance industry and for matters connected
common man, and to provide long term funds for accelerating growth of the
economy;
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4. To ensure that insurance customers receive precise, clear and correct
information about products and services and make them aware of their
and other malpractices and put in place effective grievance redressal machinery;
IRDA
(1) Subject to the provisions of this Act and any other law for the time being in
force, the Authority shall have the duty to regulate, promote and ensure orderly
section (1), the powers and functions of the Authority shall include,
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(a) Issue to the applicant a certificate of registration, renew, modify, withdraw,
of insurance claim, surrender value of policy and other terms and conditions of
contracts of insurance;
(d) Specifying the code of conduct for surveyors and loss assessors;
(g) Levying fees and other charges for carrying out the purposes of this Act;
business;
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(i) control and regulation of the rates, advantages, terms and conditions that
Controlled and regulated by the Tariff Advisory Committee under section 64U
(j) Specifying the form and manner in which books of account shall be
insurance intermediaries;
intermediaries;
clause (f);
(p) Specifying the percentage of life insurance business and general insurance
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FUNCTION OF THE INSURANCE
PRIMARY FUNCTION:-
loss and give respective claims as for the sake of contract that has been done
as to charge the correct and legible premium to insure the subject matter of
insurance.
Insurance Company would have to provide the certainty of absorbing the loss
so as to protect the insured under the risk in which he has been insured.
SECONDARY FUNCTION:-
instructions.
2. Small capital to large risk: - Small capital is demanded to cover the risk of
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ABOUT KOTAK MAHINDRA OLD MUTUAL LIFE
INSURANCE
Kotak Group and Mahindra Group had their partnership 1985 between Uday
Kotak Mahindra is in business since 1985, and insurance part of their business
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Evolution of Insurance business in Kotak Mahindra business is like this:-
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As stated above Kotak Mahindra Life Insurance has Joint venture with Old
Mutual plc. Old Mutual Plc is the 12th largest Insurance Company in the world.
It has its base of over 4 million life assurance policyholders. It has one of the
best “Payouts” among insurers in the world. It has one of the best “Solvency
Ratios” among insurers in the world. A FTSE 100 financial services group and
ranks as a Fortune Global 500 company. The Old Mutual group manages in
excess of 239 billion pounds in funds (Dec’06). The company is 160 years old
and has prominent presence in the United States and the United Kingdom.
one of the big players in the U.S., U.K. and the African Continent.
• A FTSE 100 Financial services group, and ranks as Fortune Global 500
Company.
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• The Old Mutual group manages in excess of $235 billion in funds i.e., a
• South Africa’s largest life insurance, banking & mutual funds company
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If we look at the status of Kotak Life Insurance’s market share in comparison of
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If we talk the growth of Insurance industry’s private players in recent years, the
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TOP 10 LIFE INSURANCE COMPANIES IN INDIA
1. LIC (Life Insurance Corporation of India) still remains the largest life
insurance company accounting for 64% market share. Its share, however,
has dropped from 74% a year before, mainly owing to entry of private
6.97% in 2006-07.
3. Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and
its market share went up to 6.98% in 2007-08 form 5.66% in 2006-07. The
4. SBI Life Insurance Co Ltd in terms of new number of policies sold, the
company ranked 6th in 2007-08. New premium collection for the company
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5. Reliance Life Insurance Co Ltd Total collected was Rs 2,792.76 crore
and its market share went up to 2.96% from 1.23% a year back. It now ranks
5th in new business premium and 4th in number of new policies sold in
2007-08.
share is 2.88% and it ranks 6 th among the insurance companies and 5th
increased from 1.22% to 2.11% in 2007-08. The company moved to the 7th
position in 2007-08 from 8the a year before, pushing down Max New York
8. Max New York Life Insurance Co Ltd has reported growth of 73% in
387.51 crore. The company was pushed down to the 8th position from 7th in
2007-08.
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9. Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal 2007-08,
the company reported growth of 80%, moving from the 11th position to 9th.
10. Aviva Life Insurance Company India Ltd ranking dropped to 10th in
2007-08 from 9th last year. It has presence in more than 3,000 locations
Aviva Life Insurance plans to increase its capital base by Rs 344 crore. With
1,348.8 crore.
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RANKING OF INSURANCE RETURN ON
INVESTMENT
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STRUCTURE OF KOTAK LIFE INSURANCE:-
CFO; - G. MURALIDHAR
Managing
Director
CFO
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MARKETING TEAM STRUCTURE:
Marketing Head
Trade Marketing
Manager
Asst. Marketing
Managers
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KOTAK’S PRODUCT FOR INDIVIDUAL LIFE
INSURANCE
KOTAK RETIREMENT INVESTMENT PLAN (New)
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Traditional Plans:-
ENDOWMENT PLAN
Additional features;-
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KOTAK SMART ADVANTAGE PLAN
Make every rupee work for your happiness
In this policy, the investment risk in the investment portfolio is borne by the
policyholder.
Every step in our life brings with it newel earnings. We are determined to make
the best of it, so that we can look forward to a great future. How we shape our
best use of your hard-earned money that puts you right ahead.
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Key Highlights
maturity.
• Tex Benefits to avail under 80 C and section 10 (10D) of the Income Tax
Act, 1961
fund value at regular intervals throughout the term of the policy. The
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Longer your premium paying term, the higher will be the value of the
advantage.
benefits:
A. Fixed Advantage
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B. Dynamic Advantage
to your fund value at the end of every 10th, 15th, 20th, 25th and 30th
allocation, provided your policy is in force and all premiums are fully
paid up to date.
value, to help you tread comfortably and swiftly towards your goals.
Further, the plan makes your money work smarter for you through
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Onwards, in the funds of your choice. On maturity of your policy,
you will receive the Fund Value and the Fixed Advantage benefit,
the end.
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What can you gain by investing in Kotak Smart Advantage?
Smart investing is based on the fundamental idea of regular savings and the
small savings transform into jackpots if planned with a long-term vision and
right investment fund options. Kotak Smart Advantage, with its power-packed
and well-defined fund options, gives you unmatched benefits to maximise your
You can distribute your investments across one or more funds based on your
needs and goals, keeping in mind your time horizon and risk appetite.
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You also have the convenience of switching your monies between funds to
Kotak Smart Advantage allows you to shoulder all your responsibilities to the
fullest. In the unfortunate event of loss of life, your beneficiary will receive a
You have the flexibility to choose any multiple of your first year premium as
underwriting conditions.
You can avail of tax benefits under Section 80C and Section 10 (10D) of
Income Tax Act, 1961. Tax benefits are subject to change in the tax laws. You
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Eligibility – A Ready Reckoner
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Plan Snapshot
25-year-old Dinesh realizes the benefits of astute financial planning and wants
to save for the long term in a systematic way. He is looking for a plan that gives
him the comfort that his savings are being put to work from day one and
optimizes his growth potential in the long run. Dinesh has found the solution to
benefits payable to him for an annual premium of Rs. 40,000 for a 30 year term
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Optimal Financial Planning In 5 Easy Steps
Now that you are aware of the Kotak Smart Advantage details, here’s how you
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KOTAK SAFE INVESTMENT PLAN II
Investment Plan II truly unique is that you enjoy a Guaranteed Maturity Value
risk appetite. So, if the market value of your units is higher, you reap the
benefits, with the peace of mind that whilst in a bear market your investment is
under-pinned and safe by the Guaranteed Maturity Value. And there's more, the
returns are totally tax-free*. Please note that in this policy, the investment risk
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Kotak Life Insurance offers you a Guaranteed Maturity Value on this plan to
• If you have never invested in the equity markets, for the fear of loss of capital.
With Kotak Safe investment Plan II, you need not worry about losing your
capital as you have the downside risk protected by way the Guaranteed Value.
• If you have been an investor in debt markets, you could switch a portion of
your funds to equity markets via Kotak Safe Investment Plan II. The plan offers
you the potential to earn higher returns with the safety net of a Guaranteed
Maturity Value.
• If you are an aggressive investor in equities, you could protect the downside
risk in a bear market by investing a portion of your funds in the Kotak Safe
Investment Plan II. What you are essentially doing is that while you enjoy
equity returns, your money is protected from abysmal lows and market vagaries
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Key Features
• Fund Options
Safe Investment Plan II has an entire range of fund options: For the risk averse
we have the Guaranteed Gilt Fund and for aggressive investors, we offer the
investments, we ensure that your risk profile and investment objectives are
suitably matched.
Most investors who stay away from equity do so not because they do not want
to earn higher equity linked returns but because they fear loss of capital. To
protect their money from capital losses they invest in low return debt
from the fact that the plan offers an option to invest up to 80% in equity via the
Guaranteed Growth Fund. On reaching maturity, the Company would pay out
higher. Which means that when the markets are in a bull phase, you will enjoy
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Market, your investment is still safe as you are sure of getting the Guaranteed
Maturity Value. In a nutshell, “Bulls You Win and Bears You Win”. The
Guaranteed Maturity Value applies where all premiums have been paid up-to-
date at maturity and will be reduce where partial withdrawals from the Main
Account have been made. On maturity, you can withdraw the entire maturity
proceeds and the policy would terminate. If the need is not immediate, you can
• Top-up premium
Besides regular premiums, whenever you have excess money, you can invest it
paid till that date). You can invest your surplus money across a combination of
our Dynamic Funds and units bought from this amount will be held in separate
Supplementary Accounts for each top-up. In the event of maturity or death, you
would receive the market value of these topup units. Partial Withdrawals/
Surrender Kotak Safe Investment Plan II allows you early exit options through
partial withdrawal of funds or complete surrender of the policy. With this plan,
you can your access top-up amount in the investment after rd completion of the
3 policy year, with no penalty charges from year 7 onwards (subject to retaining
a minimum balance of one annualized basic premium). You may access your
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top-up Amount in the Supplementary Account for funds without any charges.
The top-up premiums should complete a lock-in period of 3 years from the date
of investing the top-up amount before you can access the investment.
Withdrawals will be allowed only after the life insured attains the age of 18.
made by you.
If you wish to pay off all premiums over a short period of time, instead of the
full term, we have the Limited Premium Payment option for you. This option
allows you to pay off your premiums over tenure shorter than your policy term.
Under this option, you can pay off your premiums over 3, 5, 6, 7, 10 or 15
years.
• Death Benefit
Life is uncertain and you would not want to take a chance when it comes to
your loved ones. Depending on your existing life cover and he need you have,
this plan allows you to choose your life cover - the sum assured on death:
Premium).
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In the event of unfortunate death, your beneficiary would get the sum assured
(less any withdrawals made during the 2 years immediately preceding death) or
market value of units in the Main Account whichever is higher. Plus, if you
have invested any top-up premiums, then you would get back the market value
of units in the Supplementary Account. After attaining the age of 60, all the
partial withdrawals made after the age of 58, will be deducted from the Death
Benefit. Where the life insured is a minor, the Death Benefit during the first 5
years of the policy term or below the age of 18, will only be the greatest of all
premiums paid (excluding rider premiums) and the value of the units.
• Advantages
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Charges
There is an initial advice and distribution charge related to policy issue that is a
86% and from year 2 onwards is 96.5%. For topup premiums, the allocation
the annual premium, for premium up to Rs. 20,000. For portions of the
premium over Rs. 20,000, the charge would be 3%. In subsequent years, for
portions of premiums below and above Rs. 20,000 the charge would be 4% and
2% respectively.
earn you handsome returns and protect your downside risk. Annual Fund
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• Guaranteed / Dynamic Growth Fund - 1.5% Surrender / Partial Withdrawal
Charge There is no surrender allowed in the first 3 policy years. Thereafter the
withdrawals a year are free (including after maturity). Thereafter Rs. 500 per
withdrawal is charged. Switching Charge The first four switches in a year are
Mortality Charge
This is the cost of life cover and will be levied by cancellation of units
on a monthly basis.
Miscellaneous Charges
The charges for alteration in policy contract (such as change in sum assured,
change in policy term, change in premium mode, etc.) are Rs. 500/-. For
premium redirection a fee of Rs. 100/- will be charged. Please note, in the event
of experience being worse than expected, the Company reserves its right to
but only if a change takes place for all the participants in that Fund and on prior
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• The administration charge will not be increased by more than 40% from the
original level, for the first 10 years and 100% after 10 years.
1000.
Eligibility
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KOTAK CHILD ADVANTAGE PLAN
The Kotak Child Advantage Plan is an investment plan designed to meet your
child's future financial needs. It's a plan that gives your child the "azaadi" to
realize his dreams. The plan is a participating plan with a 15-day free look
period.
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"What are the advantages of this plan?"
• On Maturity, you would receive the sum assured plus the bonus addition.
financial instruments (as per IRDA regulations) so your money works hard
force even if you miss premium payments. This facility is available after the
• You can take a loan against this plan, after the policy has been in force
• You have the option of paying premiums quarterly, half yearly or yearly.
You may avail of these value adds for a nominal premium at the time of taking
the plan. The aggregate premium of the value-adds should not exceed 30% of
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Life Guardian Benefit:
benefit keeps the policy alive by waiving all future premiums on the policy.
benefit keeps the policy alive by waiving all future premiums on the policy.
Tax Benefit:
Section 80C, 10(10D) of Income Tax Act, 1961 would apply. You are advised
secure his child's future, Mr. Gupta decides to buy the Kotak Child Advantage
Plan. He wants to buy a plan with a sum assured of 5 lakh, term of 15 years, so
that when the child is 21 years old, he has at least Rs.5 lakh to invest in his
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Mr. Gupta buys the Kotak Child Advantage Plan along
Description Premium
KOTAK CHILD ADVANTAGE PLAN PREMIUM 31,857
LIFE GUARDIAN BENEFIT PREMIUM 1,225
ACCIDENTAL DISABILITY GUARDIAN BENEFIT
155
PREMIUM
In the event of the unfortunate death of the insured during the term of the plan,
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• If the policy has been in force for five years or if the
• If the death occurs within five years from commencement of policy and if
the insured is less than 18 years old, the death benefit would be either the
total of all premiums paid so far or the surrender value at that time,
whichever is higher.
"General exclusion"
In case the life insured commits suicide within 1 (one) year of the plan, no
No claim under the Kotak Life Guardian Benefit would be admitted if, within
one year of the date of issue of this policy, the premium payer commits suicide,
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(1) The premium payer suffers from self-inflicted injuries,
(2) Where the premium payer is engaged in aviation or aeronautics other than
(3) The premium payer suffers injuries from war (whether war is declared or
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KOTAK SUKHI JEEVAN
your changing needs at every step of life - be it saving for your kids, or your
retirement. It helps you prepare for important milestones and, most importantly,
You would have different financial needs to be met and investing small
amounts in a disciplined manner will help you accumulate a sizeable lump sum.
To structure a plan that is ideal for your needs, it is important for you to
estimate the amount of lump sum required for your goals, i.e. the sum assured.
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Based on this, you would have to set aside small amounts
Enjoy bonuses
Each year, the company would declare a simple reversionary bonus on the sum
assured of your policy, from the surplus earned on its participating policy funds.
The bonus, once declared, is guaranteed and would be paid on maturity of the
death claim during the course of the year. Also, if you have paid all your
premiums regularly for 15 or more years, a terminal bonus may be paid by way
On maturity, you will receive the sum assured along with all the bonuses
declared on the policy. You are likely to require money as your children begin
pursuing higher education and considering careers, marriage and family. As the
years roll on, you may choose to cease working or slow down your business
activities, and there may be expenses that need to be met. Since all these
expenses come along at different times and in varying amounts, this plan allows
you the flexibility to utilize your accumulated kitty in a phased manner after
maturity. At the end of the term, you can withdraw the entire maturity proceeds
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Provide protection along the way for your loved ones
Provided the premiums are paid regularly, if you meet your unfortunate demise
during the policy term, from the second year on, your beneficiaries will receive
the full sum assured, along with the reversionary bonus declared and interim
bonus, if any. In year 1, on accidental death, they will receive the sum assured
plus bonus, and on natural death, return of the premiums paid (less any rider
premium and extra premium). In case the life insured is a minor, the death
benefit will be a return of premiums paid if death occurs within 5 years from
paid out, should you select the Permanent Disability rider available at a small
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How do I apply for this plan?
Step 1: Decide the total amount you require on maturity (sum assured).
Step 2: Decide the term of the policy depending on the goals that you have in
mind. If you would like to choose a term of 15 years, given below are
Eligibility
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Other terms
Surrender
On receipt of all the premiums for a period of at least 3 consecutive years, the
policy shall acquire a guaranteed surrender value from that time on. The
guaranteed minimum surrender value will be 30% of all premiums paid to date,
excluding the first year’s premium and any other extra premiums. The
Company may consider paying an enhanced surrender value, which will not be
Grace period
There is a grace period of 30 days from the due date for payment of premium
for the yearly and half-yearly mode, and 15 days for the monthly mode.
Lapses
Where the premiums for the first 3 policy years are not paid within the grace
period, the policy together with the rider benefit, shall lapse from the due date
of unpaid premiums. A lapsed policy can be revived within 2 years of the date
charges.
After payment of 3 years premiums, if future premiums are not paid within days
of grace and you have not opted for surrender, an extended risk coverage period
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of 2 years or up to the date of maturity, whichever is
earlier, is
Provided by default. The benefit payable on death during this extended risk
coverage period of 2 years is the sum assured plus any accrued bonuses, less
Paid up
years, you can elect to stop paying future premiums and make the policy paid
up. The rider benefits will cease and the policy will cease to participate in
future profits. The benefit payable on death, within 2 years from the date of the
first unpaid premium, will be the sum assured plus any accrued reversionary
bonuses up to the date of the first unpaid premium, less any unpaid premiums
due at the date of death. This benefit of payment of sum assured will be
available only if death happens during the 2 years following the policy
becoming paid up for the first or second time during the policy term.
If death occurs any time after the policy becomes paid up for the third or
subsequent time during the policy term, only the reduced paid up value and
vested bonuses will be payable. The sum assured will be reduced by a factor
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equal to the proportion of the number of premiums paid to
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Policy revivals
The policy may be revived within 2 years from the date of the first unpaid
collection charges. Any revivals after six months from the due date of unpaid
Loans
Loans will be granted once the policy acquires a surrender value. The loan will
Accidental death
In the event of accidental death during the first year, the benefit will become
2. The life insured has sustained any bodily injury directly and solely from the
accident, which has been caused by outward, violent and visible means.
3. The death occurs within 120 days of the date of the accident due to such
injury as stated above, solely, directly and independently of all other causes of
death.
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LONG LIFE SECURE PLAN
family, for the present and the future. Careful planning is all about the right
family’s future and their financial independence, we at Kotak Life bring to you
the Kotak Long Life Secure Plus plan. It is a unit-linked plan that gives you the
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Enhanced Protection for Your Family
Superior Protection
Life is uncertain, so when it comes to your family’s future, you would not want
in the life of your family. At such a trying time, Kotak Long Life Secure Plus
can ensure that the dreams you aspired for your family, don’t remain
financial obligations your family may face under such a circumstance. This plan
installments) is added into the policy fund. This corpus of the fund value and
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Timely Protection
Accidents are a harsh reality that no one can ever be prepared for. In the
awry. However, in such circumstances, Kotak Long Life Secure Plus steps in
disability2 of the policyholder. This will ensure that your policy continues with
an immediate lump sum addition into your fund account. The planned amount
obligations. In this way, Kotak Long Life Secure Plus ensures that neither you
nor your family loses out on the benefits you had originally planned for.
Boosted Protection
Kotak Long Life Secure Plus offers you a range of options to ensure
comprehensive protection throughout the policy term for your family against
any eventuality. You can opt for additional rider benefits for protection against
the sum assured will be immediately made available to you and your family.
would be paid out on opting for the accidental death benefit (ADB) rider.
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Accessible Protection
With costs being different for every need, the financial requirements for your
family’s comfort would change from time to time. Kotak Long Life Secure Plus
• You can access your investments after completion of the 3rd policy year
• On maturity you can avail of the full fund value and the policy terminates
OR selects the settlement option. Through this option you can elect to
(settlement period)9. All insurance cover will cease on the maturity date
of the policy.
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Enhanced Protection for Your Growing Investments
Protected Growth
family’s future security. After all, costs and needs only keep increasing as the
years go by. This makes it important for your investments to grow alongside
too. Equity exposure is essential to keep pace, but it Rquires you to keep a
constant eye on the volatile market. Switching your money efficiently from one
fund to another to balance risk and return is not an easy task. Understanding
this, Kotak Long Life Secure Plus brings you the unique Dynamic Floor Fund,
which allows you to enjoy the benefits of a rising capital market, but actively
trims back your equity exposure during a slump, thus locking in your gains and
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Eligibility – A Ready Reckoner
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Illustration
lives with his dependent parents, wife and child. He is looking for ways and
means of protecting his family and their future from unexpected vagaries of
life. He also needs a plan that allows his hard-earned savings to grow, but with
adequate protection - A plan that protects his family’s interests and goals, come
what may. Mr. Dutt has the perfect solution in Kotak Long Life Secure Plus.
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Charges
the policy and the subsequent renewal premiums will be allocated at the NAV
The table below gives you details of the percentage of premium invested in
The Premium allocation after year 10 would be 100%. For Top up premiums,
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Fund management charge (FMC)
value, is applicable. Here are the details for your easy reference:
Administration charge
A nominal flat fee of Rs. 75 per month in year 1 and Rs. 40 per month from
units. Administration charges for annual premiums of Rs. 1 Lac and above are
where premiums are reduced below Rs.1 Lac. In ACM mode, the renewal
Partial withdrawal is not allowed in the first 3 policy years. The partial
follows : 5% in the 4th and 5th year, 2.5% from the 6th to 9th year, 1% in the
10th year and no charges thereafter. There is an additional charge of Rs. 500 per
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Mortality and Disability charge
This is the cost of life cover, calculated as per thousand Sum at Risk (Basic
units on a monthly basis. The indicative mortality charge per thousand sum at
Now that you are aware of the Kotak Long Life Secure Plus details, here’s how
you can ensure your family’s comfort and happiness in 5 easy steps.
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KOTAK CAPITAL MULTIPLIER PLAN
Kotak is the only plan of its kind that allows the return to be enjoyed beyond
maturity. It is a kind of super endowment plan that offers the bonus every year,
and also offers the facility to increase the investment and it also offers the
facility to withdraw the money as when wants to over a 15 year period post
maturity, apart from that additional life cover of 10%, which is over and above
the life cover which has been opted. Other Features like surrender to the policy
can be opted out of any medical urgency, following riders can be opted:-
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KOTAK ENDOWMENT PLAN
"What is Kotak Endowment Plan?"
Kotak Endowment Plan is a protection plan that covers your life and at the
same time ensures that your money does not lie idle. It invests a portion of your
1. On maturity, you would receive the sum assured plus the bonus addition.
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3. The Automatic Cover Maintenance facility ensures the policy remains in
force even if you miss premium payments. This facility is available after
4. You can take a loan against your policy, after the policy has been in force
5. You have the option of paying premiums quarterly, half yearly or yearly.
You also have the flexibility to pay premiums through the full term of the
You may avail of the following value-adds for a nominal premium at the time
of taking the plan, subject to the aggregate premium on all value-adds not
Term Benefit / Preferred Term Benefit: In the event of death during the term
amount, which is over and above the sum assured. The maximum term benefit
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Accidental Death Benefit: This benefit provides an additional amount (over
and above the basic sum assured) to the beneficiary in the event of the
accidental death of the life insured. The maximum cover available under this
benefit is equal to the basic sum assured (subject to a maximum of Rs.10 lakhs).
and above the basic sum assured and would be paid out as an annuity. The
maximum Permanent Disability Benefit that you can avail of is equal to the
Critical Illness Benefit: This benefit can be taken with the basic life insurance
first occurrence of critical illness during the term of the policy, you would
receive a portion of the sum assured to reduce your financial burden in this
emergency. The maximum Critical Illness Benefit that you can avail of is equal
Life Guardian Benefit: This benefit can be availed of, only in a case where the
life insured and the propose are two different individuals. In case of the
unfortunate death of the propose, this benefit keeps the policy alive by waiving
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Accidental Disability Guardian Benefit: In case the proposer is permanently
disabled as a result of an accident, this benefit keeps the policy alive by waiving
all future premiums on the policy. This benefit is available also where the life
Plan for a sum assured of Rs. 5,00,000 for a 20-year term for his wife, who is
aged 28. Mr. Gupta decides to take the Life Guardian Benefit as a rider to the
plan. He does this to provide enhanced security and protection to his wife.
at a rate of 6%, the payout on maturity would be Rs. 6,93,800. At a growth rate
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KOTAK ETERNAL LIFE PLANS
Kotak Eternal Life Plans are participating whole life plans that provide
enhanced protection till the golden age of 99. The plans provide for a high
cover at lower premiums, cash lump sum benefits at desired stage and a way to
comprehensive cover options, these plans provide you with a perfect financial
takes into account your growing responsibilities and keeps pace with
• Offers liquidity for planned and unplanned needs so that you have access
to your money when you need it the most, adding to your comfort and
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"Why Eternal Life Plan?"
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"How does the product work?"
Step 1: Choose your life cover - the basic Sum Assured, based on your existing
Step 2: Decide the number of years you wish to pay premiums, based on your
Step 3: Choose a plan from two unique variants based on premium option
preference.
Step 4: Receive a lump sum Cash Benefit at the end of your Premium Payment
term.
Step 5: Get guaranteed protection till your 99th birthday and enjoy the potential
for additional bonus boosts to your life cover along the way!
Key Features:
payment.
Critical Illness^
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• Tax Benefits under Sec 80C and Sec 10(10) D.
The Kotak Money Back Plan not only covers your life, it also assures you a
certain percent of the sum assured as cash payment at regular intervals of every
5 years. It is a savings plan with the added advantage of life cover and regular
cash inflow. This plan is ideal for planning special moments like a wedding,
• The plan not only covers your life but also provides you with a survival
receive the death benefit. The death benefit keeps increases by 7% of the
• On maturity, you would receive the sum of the Survival Benefit, Bonus
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"What do you receive on maturity of this plan?"
On maturity, you would receive the sum of the Survival benefit, Guaranteed
addition and Bonus addition. The table below illustrates the survival benefit pay
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DIFFERENT METHOD OF MARKETING ADOPT BY
KOTAK
Using Brand name KOTAK and its effect can be seen as previously Kotak Life
Insurance needed a name Old Mutual with its name but now people Kotak by
• Advertising
• Merchandising
• Corporate Stationery
• Tele Marketing is marketing the product through telephone. The most
• Cold Calling means Calling to the unknown telephone number for the
• Hot Calling means Calling to already approached person for the further
response.
• Objection Handling means to handle the type of objection that may arise
while calling.
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• That is what we have done in our Tele Marketing in our summer training.
• By different type of calling we used to generate the LEAD for the further
business.
CHANNEL MARKETING
Brokers are the one who can sell the insurance product of a lot of company and
is appointed by the company but works for the individual and earn brokerage
through company.
Life Advisors is the name given to the traditional “Agent” which we often hear.
Life Advisor is the one who can sell the insurance product of only one company
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MARKETING STRATEGY OF ALL THE COMPANIES
IS DIFFERENT BESIDES THE LOT OF SIMILARITY
IN THE PRODUCTS.
If we see the data then we will find that Kotak Mahindra Life Insurance has
very less number of branches according to the latest data in annual report of
2006-2007 by IRDA, Kotak Mahindra Life Insurance has 75 branches, but the
premium that they offer to Insurance Industry is 971 cores, and the number of
life advisors are not much if we compare it to other companies so from where
does this Premium is amounting this much, it shows that Kotak focuses on big
business houses, i.e. they are much desperate for their business with elephant
If we see the things in a different fashion then we will find that the Kotak is
having the shield of Guaranteed Maturity Value which is the feature which a
few company (Max New Year Life) has. No doubt the company is having a
long list of the product with them. Variety is there as in the range of the product
varies from Child product to retirement solutions, but there focus is in CHILD
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SWOT ANALYSIS
Strength:
• Money Power, which makes them ignorant about the gestation period
skills
Weaknesses
• High targets for financial advisors and for the sales departments.
• Many competitors in the market offer same product by the title difference
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Opportunity
• Kotak Life Insurance should give the insurance coverage both to the
parent and child so that their life could be covered in both cases. The
Threats
• Players like bajaj and birla sun life with low premium for the similar
plans Entry of many other private companies with equally strong experience
and financial strength of foreign partners making the competition difficult
and saturating the urban markets.
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• LIC has woken up from sleep and is following
competitive strategies. Its huge surplus in life fund
gives a capability to lodge price war.
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RESEARCH METHODOLOGY
SOURCE OF DATA
systematic and standardize manner which are used for some further
the availability of necessary and useful data. Some time the data are available
readily in one form or the other and some time the data are collected afresh. The
sources of Data fall under two categories, Primary Source and Secondary
Sources.
Primary Data- the primary data was collected through the following
Secondary Data- the secondary data was collected through the following:
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OTHER SOURCE
Information Sources
Analysis Method
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OBSERVATION & CONCLUSION
• 75 was the number of branches that Kotak had it in 2006-2007 and their
target is to open 135 branches till the end of the calendar year 2008.
• Number of Life Advisor has increased over time. E.g. At the beginning
turned to 24485 at the end of the end of the financial year 2007.
business.
is much there.
• Weak Infrastructure as there was hardly any place left open for the
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BIBLIOGRAPHY
5. IC-33
Websites:-
1. www.irdaindia.org
3. www.insuranceworld.com
4. www.findarticles.com
5. www.kotaklife.com
http://www.google.com
http://www.economywatch.com/business-and-financial/IPO-industry
Other sources:-
2. Blogs by admin
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