A Project Report on General Industrial Training

At

KOTAK LIFE INSURANCE

Prepared By: - Guided By:-

PARESH M. HADIYA DHARMESH RAVAL

MBA – 3rd Sem. -2005-2007

Submitted To: - SAURASHTRA UNIVERSITY, Rajkot

College: - T.N.Rao College of Management

Studies, Rajkot
ACKNOWLEDGEMENT

We learn in Management is “Manage + Men + T (Time, Task, etc.)”. We all agree

with this statement & wish to include that it would have been not possible to complete this
project without help and support of many people. We are thankful to all of them.

First and foremost we are thank full to Mr. KAUSHAL MANDALIA

Business Development Manager - Alternate Channel. For giving us this valuable
opportunity to have our Summer Project at his company. We thank him to take keen
interest in our work, and guide us through out our training. It is with a deep sense of
gratitude that we would like to acknowledge our Director and all Faulty members who
have been kind enough to us in regard to completion of the project.

Last but not least I am indebted to my Parents who provide me their time, support
and inspiration needed to prepare this report.
 Objective

Management as a profession can’t be taught merely in the four walls of

classrooms. Only theoretical knowledge is not sufficient to build competitive managers.
Practical knowledge of the business environment is equally important.

In today business world, insurance sector is running towards its booming stage.
This industry still has many things to come up to, so many changes and opportunities will
be given by insurance industry. So I choose insurance industry for my training session in
M.B.A.

I choose Kotak Life Insurance as Kotak Life Insurance is one of those private
insurance players who entered the market before few years and made its own place among
all its competitors.

This report attempts to study of the management of Kotak Life Insurance,

including its base, sales department, training department and H.R. department . The report
also attempts some features of the Kotak Group Companies.

This report enables me to have an overall view of Kotak Group Companies and
activities done at Kotak Life Insurance. I am pleased by taken training at India’s one of
the best insurance company.
 INDEX

History of Kotak
 Owner
 Group Structure
 Current senior at Kotak group
 Vision And Mission
 History Of Insurance
 Objective and Advantage and Role of Life Insurance
 Organization Structure
 Type of Insurance Business
 IRDA
 Insurance Players in India
 Partnership
 Change of Company Name
 Product and Plans
 Life Advisor
 Human Resource Department
 Marketing
 Finance
 Sujection
 Swot Analysis
 Conclusion
 Bibliography
 Story of the Kotak
Group

Kotak & co. started with the business of Agricultural Commodities in the year 1927.
Kotak Mahindra one of India’s leading financial institutions was born in 1984 as Kotak
Capital Management Finance Limited. This company was promoted by Mr. Uday Kotak,
Mr.Sidney, A.A.Pinto and Kotak & Company.

Industrialist Mr.Harish Mahindra and Mr. Anand Mahindra took a stake in 1986, and
that’s when the company changed its name to “KOTAK MAHINDRA FINANCE
LIMITED.”

Kotak Mahindra is one of Indian’s leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to invest banking, the group caters to the
financial needs of individuals’ and corporates.

The group has a net worth of around Rs. 2,500 crores, employs around 6,700 people in its
various businesses and has a distribution network of branches, franchisees, representative
offices and satellite offices across 250 cities and towns in India and offices in New York,
London, Dubai and Mauritius. The Group services over 1.6 million customer accounts.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the world’s
largest investment banks and brokerage firms). Ford Credit (one of the world’s largest
dedicated automobile financiers) and Old Mutual (a largest insurance, banking and asset
management conglomerate.)
Kotak Mahindra is one of India's leading financial institutions, offering complete financial
solutions that encompass every sphere of life. From commercial banking, to stock broking,
to mutual funds, to life insurance, to investment banking, the group caters to the financial
needs of individuals and corporates

The Kotak Mahindra Group’s flagship company, Kotak Mahindra Finance Ltd which was
established in 1985, was converted into a bank – Kotak Mahindra Bank Ltd in March
2003 becoming the first Indian company to convert into a Bank. It’s banking operations
offers a central platform for customer relationships across the group’s various businesses.
The bank has a presence in the Commercial Vehicles, Retail Finance, Corporate Banking,
Treasury and Housing Finance.
THE JOURNEY SO FAR…
 Mr. Uday Kotak…. Founder of the Kotak
group

Mr. Uday Kotak, B.Com.

MMS, aged 46 years, is the
Executive Vice-Chairman and Managing Director of the Bank and is its principal founder
and promoter. Over the past 20 years, he has successfully built a well-knit team of high
quality professionals who have been given independent charge of various businesses in
Kotak Mahindra group. He was responsible for starting the business as a start-up venture
in a limited range of activities and then building it up into a full financial services group,
many of the constituents of which are among the leading players in their respective fields.
He is on the Board of the Indian Council for Research on International Economic
Relations (ICRIER).
Group structure
 Current scenario at Kotak Group

• Launched the first gilt scheme in India – Kotak Gilt.

• First AMC to segment retail and wholesale investment and long-term and short
term investment and to offer investment solution as per investment unique need.
• First to offer a Domestic Mutual Fund Scheme- Kotak Global India – which is
dedicated to India Growth Story
• First Mutual Fund house to have offered a Multi Manager fund of fund scheme in
India – Kotak Equity FOF.
• First fund house to offer simulated AMF 1 test on the website.
• First fund house to launch SMS based service to the business associates and
investment.
• First fund house to launch online return calculator and online financial planner.
 KEY GROUP COMPANIES

 Kotak Mahindra Bank Ltd.

 Kotak Mahindra Primus Ltd.
 Kotak Mahindra Capital Company Ltd.
 Kotak Mahindra Asset Management Company
 Kotak Mahindra Old Mutual Life Insurance Ltd.
 Kotak Securities Ltd.
KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE:-

Kotak Mahindra Old Mutual Life Insurance Limited, is a joint venture between Kotak
Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take
important financial decisions at every stage in life by offering then a wide range of
innovation life insurance products, to make them financially independent.

Head Office address:

Bakhtawar, 5th floor, 229, Nariman Point, Mumbai 4200021
Tel no.: (022) 22024884
Website: www. Kmutual.com
 VISION OF KOTAK GROUP

“To be among the top few private players with

substantial market presence”

• Global Indian Financial Service Brand

- Indian understanding: Global Standards of Delivery
• Most Preferred Employers/Business Partners
- Home from Bright minds and entrepreneurial skills
• Most Trusted Financial Service Company
- High Standard of Compliance/Corporate Governance
• Value and Not just Size
- Business Driven with both Value and Growth in Mind.

MISSION

To consistently provide a full spectrum

Of intelligent financial choice
And
Be a preferred provide of the highest quality service
In our chosen business area.
 Introduction of Life Insurance

What is Insurance?

Insurance is a system under which individuals, business and other organization or entities
are guaranteed compensation for losses resulting from certain parties under specified
condition in exchange for payment of a sum of money i.e. premium. It is the protection
provided by written contract against future financial loss from injury, illness, and property
damage or liability for the losses of others.

What is Life Insurance?

Life insurance is an agreement that guarantees the payment of a stated amount of

monetary benefit upon the end of a specified term or on the death of the person insured,
designated beneficiary to whom the insurance company will make the payment the death
of the insurance.
Origin of life insurance
The story so far…..

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 survivors by making some
payments.

As European civilization progressed, its social institutions and welfare practices 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.

Since most of the trade took place by sea, there was also the fear of pirates. So these
guilds even offered ransom for members held captive by pirates. Burial expenses and
support in times of sickness and poverty were other services offered. Essentially, all these
revolved around the concept of insurance or risk coverage. That's how old these concepts
are, really.

In 1347, in Genoa, European maritime nations entered into the earliest known insurance
contract and decided to accept marine insurance as a practice.
The first step...

Insurance as we know it today owes its existence to 17th century England. In fact, it began
taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London,
where merchants, ship-owners and underwriters met to discuss and transact business. By
the end of the 18th century, Lloyd's had brewed enough business to become one of the
first modern insurance companies.

The growing years...

The 19th century saw huge developments in the field of insurance, with newer products
being devised to meet the growing needs of urbanization and industrialization.

In 1835, the infamous New York fire drew people's attention to the need to provide for
sudden and large losses. Two years later, Massachusetts became the first state to require
companies by law to maintain such reserves. The great Chicago fire of 1871 further
emphasized how fires can cause huge losses in densely populated modern cities. The
practice of reinsurance, wherein the risks are spread among several companies, was
devised specifically for such situations.

In the 19th century, many societies were founded to insure the life and health of their
members, while fraternal orders provided low-cost, members-only insurance. Even today,
such fraternal orders continue to provide insurance coverage to members as do most
labour organizations. Many employers sponsor group insurance policies for their
employees, providing not just life insurance, but sickness and accident benefits and old-
age pensions. Employees contribute a certain percentage of the premium for these policie
Insurance in India

Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of
Life Insurance Corporation of India's corporate headquarters, is derived from the Rig
Veda. The term suggests that a form of "community insurance" was prevalent around 1000
BC and practiced by the Aryans.

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. As these companies grew, the government
began to exercise control on them. The Insurance Act was passed in 1912, followed by a
detailed and amended Insurance Act of 1938 that looked into investments, expenditure and
management of these companies' funds.

By the mid-1950s, there were around 170 insurance companies and 80 provident fund
societies in the country's life insurance scene. However, in the absence of regulatory
systems, scams and irregularities were almost a way of life at most of these companies.
As a result, the government decided nationalise the life assurance business in India. The
Life Insurance Corporation of India was set up in 1956 to take over around 250 life
companies. 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 finally opened up to private
players in 2001.

The Insurance Regulatory & Development Authority, an autonomous insurance regulator

set up in 2000, has extensive powers to oversee the insurance business and regulate in a
manner that will safeguard the interests of the insured.
Reform of Insurance Sector

In 1933 Malhotra Committee headed by formed finance secretary and RBI Government
R.N. Malhotra was formed to evaluate the India Insurance Industry and recommend its
future direction.

The committee stated in its report in 1994 only 22% of the Indian Population was insured.
The poor reach of insurance in the country and the sheer numbers make India a market
with tremendous potential.

Per capital insurance premium in India is a mere US$6 one of the lowest in the world. In
South Korea the corresponding figure is US$ 1338, in USA it is US$ 2550 and in UK it is
US$ 1589.
Some of the Key recommendations of the committee
include:-

 Government stake in the insurance companies to be brought down to 50%

 All the insurance companies should be given greater freedom to operate.

 Private companies with a minimum paid up capital of Rs. 1 billion should be

allowed to enter the industry.

 No company should deal in both Life Insurance and General Insurance thought a

single entity.

 Foreign companies may be allowed to enter the industry in collaboration with the

domestic company.

 Only one state level life insurance company should be allowed to operate in each

state.

 Insurance companies must be encouraged to set up unit linked pension plan.

 Object and Advantage of Life
Insurance

 Protection against risk of untimely death

Life insurance is a product which offers protection against risk of death, in

cash of death, the full sum assured is made available under a life assurance
policy, whereas under other savings schemes, the total accumual savings
alone will be available.

 Protection during old age

Life Insurance can also be used as a means of saving for one’s future.
There are a number of Life Insurance Policies which in addition to life
cover also provide the means of investing one’s income. The sum as per the
policy will be received only after a period of time. This amount thus
provide for old age.

 Forced Saving

Life Insurance brings about forced savings. Payment of Life insurance

premiums is compulsory and become a habit. Savings in other schemes can
be easily withdrawn and may be used for less worthy purposes.
Termination of a life insurance policy by the policy holder usually results
in a substantial loss in benefits under the policy o the policy holder. One is
thus encouraged to save and keep one’s policy alive.
 Education requirement and charity

In certain cases, the object of insurance may be to serve as security to

educational funds in respect of loans advanced for educational purposes or
to provide donations to charitable institution like hospitals & schools.

 Nomination and Assignment

The Life Insurance can name the person or persons to whom the policy
moneys would be payable in the event of his death. The proceeds of a life
insurance policy can be protected against the claims of the creditors of the
Life Insurance by effecting from creditors except to extent of any interest
in the policy retained by this by the insured.

 Marketability and suitability for borrowing

After a period of 3 years, if the policy holder fined that he is unable to

continue payment of premiums he can surrender a policy for ac cash sum.
A life insurance policy is acceptable as a security for a commercial loan.

 Loan from the Insurance company

A policyholder can take a loan form his insurance company against the
security of his life insurance policy provided the term of his pllicy allow for
such a loan. This loan can be taken usually after a period of 3 years from
commencement of the policy and is a percentage of it’s surrender value.
 Tax benefit

The Indian income Tax Act provides tax concessions to the policyholder
both on payment of premium and on the maturity amount.

Under Section 88, the assessees is eligible for a tax rebate of 20% on the
premium paid by him (subject to maximum of Rs.60,000) on life insurance
policies on his own life\ on the life of suppose\children-major of minor,
including married daughters.

Under Section 10(10D), any sum receive under a Life Insurance Policy
including bonus declared paid excluding annuities is exempt from tax.

 Protection of family Members

Under the section 6 of the Married Women’s Property Act of a Married

man takes a policy of life insurance e on his own life and expresses on the
face of it to be for the benefit of his wife and children, or any of them, then
it shall be deemed to be a trust for the benefit of his wife, or his wife
children, or any of them, according to the interest so expressed, and shall
not, so long as any object of trust remains, be subject to the control of the
husband; or to his creditors, or form part of his estate.

An insurance policy taken by a married man in the above manner is ideal

way to protect the interest of his wife and children, even after his untimely
death.
Role of Life Insurance:-

Risk and uncertainties are part of life’s great adventure - accident,

illness, theft, natural disaster- they are all built into the working of the
universe waiting to happen.

Role: - Life Insurance as “Investment”

Insurance is an attractive option for investment. While most people recognize the risk
hedging and tax saving potential of insurance, many are not aware of its advantages as an
investment option as well. Insurance products yield more compared to regular investment
options, and this is besides the added incentives (read bonuses) offered by insurers.

You cannot compare an insurance product with other investment schemes for the simple
reason that it offers financial protection from risks, something that is missing in non-
insurance products.

In fact, the premium you pay for an insurance policy is an investment against risk. Thus,
before comparing with other schemes, you must accept that a part of the total amount
invested in life insurance goes towards providing for the risk cover, while the rest is used
for savings.

In life insurance, unlike non-life products, you get maturity benefits on survival at the end
of the term. In other words, if you take a life insurance policy for 20 years and survive the
term, the amount invested as premium in the policy will come back to you with added
returns. In the unfortunate event of death within the tenure of the policy, the family of the
deceased will receive the sum assured.
Role 2: Life insurance as "Risk cover"

First and foremost, insurance is about risk cover and protection - financial protection, to
be more precise - to help outlast life's unpredictable losses. Designed to safeguard against
losses suffered on account of any unforeseen event, insurance provides you with that
unique sense of security that no other form of investment provides. By buying life
insurance, you buy peace of mind and are prepared to face any financial demand that
would hit the family in case of an untimely demise.

To provide such protection, insurance firms collect contributions from many people who
face the same risk. A loss claim is paid out of the total premium collected by the insurance
companies, who act as trustees to the monies.

Insurance also provides a safeguard in the case of accidents or a drop in income after
retirement. An accident or disability can be devastating, and an insurance policy can lend
timely support to the family in such times. It also comes as a great help when you retire, in
case no untoward incident happens during the term of the policy.

With the entry of private sector players in insurance, you have a wide range of products
and services to choose from. Further, many of these can be further customized to fit
individual/group specific needs. Considering the amount you have to pay now, it's worth
buying some extra sleep.
Role 3: Life insurance as "Tax planning"

Insurance serves as an excellent tax saving mechanism too. The Government of India has
offered tax incentives to life insurance products in order to facilitate the flow of funds into
productive assets. Under Section 88 of Income Tax Act 1961, an individual is entitled to a
rebate of 20 per cent on the annual premium payable on his/her life and life of his/her
children or adult children. The rebate is deductible from tax payable by the individual or a
Hindu Undivided Family.

ORGANISATION STRUCTURE
 Type of Insurance Business

Insurance Business is divided in to Four Classes:-

• Life Insurance
• Fire Insurance
• Marin Insurance
• Miscellaneous Insurance

Type of Life Insurance

• Term Insurance
• Endowment Policy
• Whole Life Policy
• Money Back Policy
• Annuities & Pension
Term Insurance Policy:-

A term insurance policy is pure risk cover for a specified period of time. What this
means is that sum assured is payable only if the policyholder dies within the Policy
term. For instance, if a person buys Rs.2 lakh policy for 15-years, his family is
entitled to the money if he dies within that 15-year period.

So, there is no element of savings or investment in such policy.

Endowment Policy:-

Combining risk cover with financial savings, endowment policies is the most
popular policies in the world of life insurance.

In an Endowment Policy, the sum assured is payable even if the insured survives
the policy term.

If the insured dies during the tenure of the policy, the insurance firm has to pay the
sum assured just as any other pure risk cover.

A pure endowment policy is also a form of financial saving, whereby if the person
covered remains alive beyond the tenure of the policy; he gets back the sum
assured with some other investment benefits.
Whole Life Policy:-

As the name suggests, a whole Life Policy is an insurance cover against death,
irrespective of when it happens.

Under this plan, the policy holder pays regular premiums until his death, following
which the money is handed over to his family

Money Back Plan:-

These policies are structured to provide sums required as anticipated expenses

(marriage, education, etc…) over a stipulated period of time. With inflation
becoming a big issue, companies have realized that sometimes the money value of
the policy is eroded. That is why with-profit policies are also being introduced to
offset some of the losses incurred on account of inflation.
A portion of the sum assured is payable at regular intervals. On survival the
remainder of the sum assured is payable.
o In case of death, the full sum assured is payable to the insured.
The premium is payable for a particular of time.
 Annuities And Pension:-

In an annuity, the insurer agrees to pay the insured a stipulated sum of money
periodically. The purpose of an annuity is to protest against risk as well as provide
in the form of pension at regular intervals.

Over the years, insurers have added various features to basic insurance policies in
order to address specific needs of a cross section of people.
 About IRDA

Composition of Authority under IRDA Act, 1999

AS pre the section 4 IRDA Act’1999, Insurance Regulatory and Development Authority
(IRDA, with was constituted by an act of parliament) special the composition of
Authority.

The authority is a ten member team consisting of:-

(a) A Chairman;
(b) Five whole-time members;
(c) Four part-time members,
(All appointed by the Government of India)

DUTIES, POWER AND FUNCTION OF IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and function of 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 growth of the
insurance business and reinsurance business.
The power and function of Authority shall include:-

(a) Issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration.
(b) Protection of the interest of the policy holders in matters concerning assigning
of policy, nomination by policy holders, insurable interest, settlement of

(c) insurance claim, surrender value of policy and other terms and conditions of
insurance.
(d) Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents.
(e) Specifying the code of conduct for surveyors and loss assessors.

Function of IRDA

 Promoting and regulating professional organizations connected with

insurance and reinsurance
 Improving the efficiency while conducting the insurance business.
 Determining the specifications of accounts and the manner in which funds
are invested.
 Laying down prudential norms for investment for both life and general
insurance.
 Mission of IRDA

To protect the interest of the policyholders,

To regulate, promote and ensure orderly growth of the
Insurance industry and for matters connected therewith or
incidental thereto.
Life Insurance Players

Private Players in Indian Insurance Market

And it’s Foreign Collaborations

Company Indian Partner Foreign Insurance Area

Birla Sun Life Aditya Birla Group Sun Life Canada Life

Kotak Life Insurance Kotak Mahindra Finance Old Mutual, South Africa Life

HDFC Standard Life HDFE Standard Life, UK Life &

Non-Life

ICICI Prudential ICICI Prudential, UK Life

Max New Yourk Life Max India New Yourk Life, UK Life

TATA-AIG Tata Group AIG, USA Life

ING-Vysya Vysya Bank ING Insurance, Life

Netherlands

Aviva Dabur CGU Life, UK Life

Met Life India Jammu Kashmir Bank Met Life, USA Life

Bajaj Allianz Bajaj Auto Allianz Life &

Non-Life

AMP Sanmar Sanmar Group AMP-Austrila Life

SBI Life SBI Cardiff, France Life

THE PARTNERSHIP
 The Partnership

About Old Mutual

Mutual was established more than Old 150 years ago and has developed into an
International financial services group whose activities are focused on asset
gathering and asset management. The Old Mutual Group offers a diverse range of
financial services in three principal geographies: South Africa, the United stats and
United Kingdom The company is listed on the London stock Exchange with a
market capitalization of approximately $6 billion and is a member of the elite
FTSE 100 index. In the 2003 ranking of the World’s 500 largest corporations by
Fortune magazine, Old Mutual climbed 87 places to position 366 and was also
listed as the 14th largest company in the world.

Old Mutual is the largest financial services business in South Africa, through its
insurance, asset management, banking and general insurance operation. The
company serves 4 million life insurance policyholders and employs over 13000
south Africans in its local operation.

In the USA ,Old Mutual is one of the top ten fixed annuity businesses offering an
array of specialist asset management skills through its 23asset management
business. The company’s US Life business record sales of $4 billion at the end of
2002.

Operations in the United Kingdom are focused on wealth management, through

gerrard as one of the leading private client stock broking business in the UK.

The Old Mutual Group has the ability to cater for a variety of consumer
segments and offer a comprehensive and innovative and broking business in UK.
Change of Company Name

OM Kotak Mahindra announces new company name as Mahindra Old Mutual

Life Insurance Limited

New name to leverage Old Mutual’s international expertise and reiterate Kotak’s
single brand commitment

Mumbai,July 6,2004:OM Kotak Mahindra Life Insurance Company Limited,one

of the fastest growing insurance companies in India announced today that is has
changed its company name to Kotak Mahindra Old Mutual Life Insurance
Limited. The brand will now be know as Kotak Life Insurance

In brand development move, the two-and half year old OM Kotak Mahindra Life
Insurance Company, a joint venture between Old Mutual and Kotak Mahindra
Bank, has pegged its brand name as Kotak Life after changing the company
name to Kotak Mahindra Old Mutual Life Insurance.

We had failed to communicate to our customers properly with our earlier name.
It has not been easy for the customers to understand the meaning of OM ( Old
Mutual) before kotak, said Mr. Shivaji Dam Managing Director, Kotak Life
Insurance

Market research finding on the corporate brand have shown that while the
company ranked very high in awareness scores, old mutual Plc was not being
associated with the word OM. The second change is the move toward a unified
brand : Kotak
Product and Plans of Kotak Life
Insurance
INSURANCE PRODUCT

The insurance business is concerned with the guaranteeing compensation in the

event of loss, damage to property death. The present day insurance of the
protection is provided by the Life Insurance Corporation and the General
Insurance Corporation or other agencies pertaining to Life, fire and marine has
its basic concept that the individual or groups or companies seeking protection
must earn a surplus over the cost of maintaining and then pay a premium out of
the income. For this purpose, the insurance business is based on a mutual and
basic desire to protect the loss of one’s property and loss due to the death of an
individual.

KOTAK LIFE INSURANCE PRODUCTS

Kotak is offering a wide range of products for its customer they all are divided in
to different types. There are products for all types & kind of people this will give
benefit to people in any stage of life & also after his death.

THERE ARE MAINLY 2 TYPES OF PRODUCT:

1) UNITIZED
2) UN-LINKED

PRODUCTS ARE DIVIDED IN TWO CLASS

1) PARTICIPATION
 2) NONPARTICIPATION

WHAT IS UNIT-LINKED PRODUCTS?

Unit linked insurance plans (ULIPs) have become something of a rage with their promise
of market linked returns combined with the dual benefit of insuring your life from
eventualities.

To put it simply, ULIPs attempt to fulfill investment needs of an investor with

protection/insurance needs of an insurance seeker. ULIPs work on the premise that there is
class of investor who regularly invest their savings in products like fixed deposits (FDs).
Coupon bearing bonds, debt funds, diversified equity funds and stocks. There is another
class of individuals who take insurance to provide for their family in case of an
eventuality. So typically both these categories of individuals (which also overlap to a large
extent) have a portfolio of investments as well as life insurance. ULIP as a product
combines both these products (investment and life insurance).into a single products. This
saves the investor/insurance-seeker the hassles of managing and tracking a portfolio of
products.

Novels and noble as it appears, investor/insurance-seekers rarely understand the cost

implications of the marriage between investment and life insurance. To be sure, it is
intricate and not everyone is able to unravel it. ULIP are designed to put control in the
hands of the customer. While some customers are comfortable with this, there are others
who require some more explanation about the features. The insurance agent provides this.
All the changes are clearly disclosed in the products brochures that are given to the
customers. Moreover, the customer get a benefit illustration, which clearly illustrates the
up-front investment and mortality charges that are levied on the premium, and shows how
the money will grow overtime, under a certain set of assumptions.
INSURANCE PLANS

Kotak Endowment Plan

Endowment plans are among the most popular forms of insurance as they provide both
insurance coverage and also act as a saving instrument. These are the plans wherein
benefits are payable on death within term OR survival to maturity whichever is earlier.

 KEY
FEATURES OF THE PLAN

 Minimum Entry age: 18 years

Maximum Entry age: 65 years
Vesting age: Any age up to 75 years
Term avail: 10 years-30 years

 Premium paying mode:

Quarterly: Rs. 1,560/-
Half-yearly: Rs.3, 060/-
Yearly: Rs. 6,000/-

 KEY
BENEFITS OF THE PLAN

1. Limited Premium Payment Option: Though the policy term ranges from 10 to 30
yrs, the client has the flexibility to pay off the premiums in limited term i.e. with in
first few years of the policy. The benefit of the life cover would however be for the
entire term of the policy. The premium can be paid in short period of 3,5,7,10 or
15 years.

2. Maturity Benefit – Sum Assured or Accumulation account whichever is higher.

3. In the event of unfortunate death – SA or Accumulation Account whichever is
higher is paid out as death benefit.

Kotak Money Back Plan

Money back plans are special type of Endowment plans and are also called anticipated
endowment assurance plans. Under money back plan, survival benefits are spread over the
term of the policy i.e. certain percentage of sum assured is paid at regular intervals (say 5
years). Apart from the above death benefit continues like an endowment plan i.e. full sum
assured shall be payable on death within the term irrespective of earlier survival benefits.
This is why money back plan are costlier than the endowment plan of equal sum assured.

 Key

Features of the plan

 Minimum Entry age: 18 years

Maximum Entry age: 60 years
Vesting age: Any age up to 75 years
Term avail: 15, 20 & 25 years

 Premium paying mode:

 Quarterly: Rs. 1,560/-
 Half-yearly: Rs.3,060/-
 Yearly: Rs. 6,000/-
 Key Benefits of the
plan

1. The cover will increase at the rate of 7% per annum of the Basic Sum Assured
after the first year.
2. On Death: Sum assured less all the premiums due but not paid or accumulated
Fund whichever is higher.
3. On Maturity: The final Survival benefit is payable as a percentage of the Basic
Sum
Assured
4. Tax
Benefit:
Tax
benefit
under sec.
80C & 10
(10D) of
income tax
act.
5. Survival Payout Structure:
 Kotak Child Advantage Plan

Kotak Child Advantage Plan is designed and offered for the savings of your beloved
children to care of future in terms of education & marriage.

Key Features of the plan

Minimum Entry age: 0 years

Maximum Entry age: 17 years
Term avail: 10 to 30 years
Premium paying mode:
Quarterly: Rs. 1,560/-
Half-yearly: Rs.3,060/-
Yearly: Rs. 6,000/-

Life to be insured: A child age between 0 to 17 years (lbd)

Proposer: The Proposer is compulsory on the policy. The proposer should be either
one of the parents or the legal guardian and must be at least 18 years (lbd).

Maximum Sum Assured allowed: Rs. 25,00,000/- subject to matching life

insurance on the proposer’s life (which would include both individual life policies and
group life insurance policies on the life of the proposer). However insurance of Rs.
1,00,000/- may be granted on the life of each child without the proposer’s insurance.

 Key

Benefits of the plan

 The cover on the life of the child starts after 5 years of DOC or on the child
attaining 18 years whichever is earlier.

 On Maturity: Basic Sum Assured or Accumulated Fund whichever is higher is

paid.
  On Death: If death occurs at or after age 18 years or 5 years or more years after
DOC, the death benefit is the greater of: Sum Assured less any premiums due but
not paid or Accumulated Fund.

If Death occurs within 5 years of DOC and the life insured has not attained 18 years of
age then, the death benefit: All the premiums paid (excluding the rider premium) or the
Surrender Value whichever is higher.

Riders available: Kotak Life guardian Benefit and Kotak Accidental

Disability Guardian Benefit.

Paid-up Value: Will be available on request after 3 full years premiums

have been paid.

Surrender Value: Will be available after 3 years and will be based on

accumulated fund net of surrender penalty.

Loan: Available on after 3 years on % of surrender value.

Tax Benefit: Tax benefit under sec 80C and sec 10 (10D) of the income tax
 Kotak Safe Investment
Plan

Kotak Safe Investment Plan is an Investment cum Insurance plan, which offers
CAPITAL GUARANTEE with 80% equity exposure where money is invested in
capital markets and customer gets market-linked returns. All gains from the markets are
yours to take and in case the markets do not perform well, you would still get back the
Guaranteed Sum Assured with an in-built guaranteed return of 2.75%.
 Key
Features of the plan

 This plan offers a choice of four professionally managed funds to invest your
money.
 Bond fund……..(Corporate bonds)
 Gilt fund………..(Government securities)
 Floating Rate Fund…(Floating rate debt instruments)
 Balanced Fund….(Equity + Debt exposure)
 Growth Fund……(Equity exposure upto 80%)

• Minimum Entry age: 18 years

Maximum Entry age: 65 years
Maximum age till plan can cover: 75 years
Term avail: 10 years-30 years

 Limited Premium Payment option to help you pay off your premiums over a short
period of 3,5,7,10 or 15 years

 Key Benefits of the

plan

 Premiums paid under the plan will qualify for deduction under Sec80C, and the
returns are fully tax-exempt under Sec 10(10 D).
 Flexibility to switch from one fund to another by filling “switch form”, No
charges to be paid for switching & No restrictions on number of switch during
the policy term.

 On maturity - Sum Assured or Fund value whichever is higher is paid out.

 In event of unfortunate death - Sum Assured or Fund value whichever is

higher is paid out as death benefit.

 Lump sum injection allowed. Minimum Rs. 10,000/-

 The plan gives the option to withdraw money from the fund, through partial or
complete surrender of units after 3 years with 2.5% exit load.

 Policy could be surrendered after period of 3 years.

 Automatic Cover Maintenance (ACM) - applicable after 3 years if you miss

out on paying premium. Policy does not lapse.

 Loan Facility available after 3 years on the 50% of surrender value

Kotak Flexi Life Plan

An investment cum insurance plan that can be customized to meet your constantly
evolving needs. While on one hand it lets you decide the amount of insurance cover that
you want, on the other hand, it invests a portion of the premium in the capital markets to
ensure that your money works hard for you.
At the same time the plan ensures that you have enough flexibility to meet your financial
objective of savings and protection, both through this single plan. The plan gives you the
option to add lump sum injections, when you want. And what’s more it offers you the
flexibility to withdraw your funds in part or in full.

 Key
Features of the plan

 Minimum Entry age: 14 years

Maximum Entry age: 65years
Term avail: 5 years-30 years

 Minimum SA2 (Risk Cover): 50,000

 This plan offers a choice of four professionally managed funds to invest your
money.
 Bond fund………// Government bond, Corporate bond
 Floating Rate Fund…// Floating rate debt instruments
 Gilt fund………….// Government Securities
 Balanced Fund…// Equity + Debt
 Growth Fund… // Equity Exposure
Premium paying mode:
• Quarterly: Rs. 2,620
• Half-yearly: Rs.5,115
• Yearly: Rs.10,000

Limited Premium Payment option to help you pay off your premiums over a short period
of 3, 5,7,10 or 15 years

 Key
Benefits of the plan

 Flexibility to choose Investment and Insurance amounts.

 On Maturity – Guaranteed maturity sum assured on Investment, i.e. SA1 or Fund
Value whichever is higher is paid out.
 In event of unfortunate death – SA2 + Fund value is paid out as death benefit.
 Opportunity to make lump sum injections, so that your surplus funds do not lie idle
in a savings account. Minimum amount of LSI – Rs. 10,000/-
 If SA2 is 50,000 then no medicals required & no riders will be allowed.
 In case of a financial emergency, you have the following options:
 The plan gives the option to withdraw from the fund, through partial surrender of
units in 2nd & 3rd year with 50% exit load & after 3rd year with 2.5% exit load.

• Policy can be surrendered after 3 years.

• Paid Up option after 3 years
• ACM - automatic cover maintenance facility available after 3 years

 Value added riders like Accidental Death Benefit, Permanent Disability Benefit
Critical Illness Benefit, Life Guardian Benefit, and Accidental Disability Guardian
Benefit.
 Loan facility available.
Kotak Easy Growth Plan

What if a conventional insurance plan does not suit your needs ? Perhaps you
don’t want to have your money locked in because you don’t know when you will need
funds or don’t even want to go through the trouble of regular premiums for a fixed tenure.
The Kotak Easy Growth Plan gives you an opportunity not only to invest your money
in to different professionally managed funds but also gives 5 times life cover.

Key Features of the plan

 This plan offers a choice of four professionally managed funds to invest your
money.
 Bond fund………..// Government bond, Corporate bond
 Floating Rate Fund…// Floating rate debt instruments
 Gilt fund………….// Government Securities
 Balanced Fund…// Equity + Debt
 Growth Fund.. // Equity Exposure up to 80%
 Aggressive Growth Fund… // Equity Exposure up to 100%

 Minimum Entry age: 0 years

Maximum Entry age: 75 years
Term: Whole Life

Single Premium Policy Minimum Premium: Rs.50,000/-

Death Benefit: Kotak Easy Growth Plan offers you two options for choosing a death
benefit.

Option 1: With 5 times Life cover (Maximum age for five times cover is 60years)
Option 2: With 1.02 Times Life cover: (No Medical test required.)
 Key Benefits of the
plan

 Premium paid under the 5 times cover option will qualify for deduction under
Sec.80C, and the returns are fully tax-exempt under Sec 10 (10 D).

 Premium paid under 1.02 times cover option will qualify for deduction under
Sec.80C, but Sec 10 (10 D) will not be applicable and hence returns
will be taxable.

 Lock-in period - 1 year. 100% withdrawal of the fund value from 2nd year
onwards

 In event of unfortunate death you get Sum Assured or Fund value whichever is
higher

 Lump sum Injection allowed. Minimum amount of LSI - Rs. 10,000/-

 Flexibility to switch from one fund to another by filling “switch form”, No charges
to be paid for switching & No restrictions on number of switches during the policy
term.

 Loan will be available on 50% of surrender value only after the 1st year of policy.
KOTAK GRAMIN BIMA YOJANA
Life is about change and you will want to be prepared for it. At OM Kotak Mahindra, we
understand your need to protect your loved ones and to provide for a financially
independent future.
Presenting the Kotak Gramin Bima Yojana, a plan that takes protects your loved ones
against uncertainties and provides you with guaranteed returns, just like your fixed
deposit.

The Kotak Gramin Bima Yojana

The Kotak Gramin Bima Yojana is an insurance plan that not only covers your life but
also ensures that your money works hard for you and generates returns. The plan lets you
pay a one-time premium so you are saved the bother of remembering to make annual
payments.

What are the advantages of this plan?

 The Kotak Gramin Bima Yojana combines the benefits of a fixed deposit and an
insurance plan.
 Easy one-time premium payments.
 Guaranteed returns on maturity of the plan.
 Increasing death benefit cover.
 No medical tests required.
 15 day free-look period.

Are there any tax benefit?

Yes, the premiums paid under the plan will qualify for a deduction under Sec.80C and the
maturity proceeds are fully exempt under Sec 10(10 D).
 KOTAK TERM PLAN

"What is Kotak Term Plan?"

Kotak Term Plan is a pure risk product that aims to cover your life at a nominal cost. You
may want to take this plan to cover your outstanding debts like a mortgage, a home loan
etc. Since this is a pure risk cover product, there are no maturity benefits payables on
survival. This is a non-participating plan.

"What value-adds can you opt for?"

You may avail of the following non-participating value-adds for a nominal premium at the
time of taking your policy, subject to aggregate premium on all value-adds (except Critical
Illness Benefit) not exceeding 30% of the basic Kotak Term Plan premium.

What value-ads can opt for?

 Accident Death Benefit

 Premium Disability Benefit
 Critical Illness Benefit.
KOTAK RETIREMENT
INCOME PLAN
“What is the Kotak Retirement Income Plan?"

The Kotak Retirement Income Plan is a savings plan designed to meet your post-
retirement needs. It is a plan that gives you "Jeene ki azaadi". It gives you the choice to
remain independent even after retirement.

The Kotak Retirement Income Plan is a participating plan. The plan comes in two forms:
(i) With Cover (ii) Without Cover.

"What are the advantages of this plan?"

 You can choose to retire at any age between 45 yrs and 65 yrs.

 On Retirement:
You may take a lump sum in cash of up to a third of your Basic Sum
Assured or Accumulation Account*, whichever is higher; and the balance
of the benefit you are eligible for will be used to buy an annuity of your
choice.

 Annuity Options:
You may buy an annuity either from Kotak Life Insurance (subject to the
choice and rates available at that time)**, or from any other insurer.
 Early Retirement Benefits:
You may opt to retire early, i.e. at any age before the normal retirement
date (subject to the policy being in force for 3 years or your attaining a
minimum age of 45 yrs, whichever is later). You can then secure benefits
with your Accumulation Account, net of an early retirement charge of 5%.
If the early retirement is due to ill health, then you may retire before
attaining the age of 45. You can then secure benefits with your full
Accumulation Account.
  Late Retirement Benefits:
You may opt to retire after the retirement date originally selected, and
select a new retirement date (subject to a maximum of 65 years). No further
premiums will be payable and the death benefit will
be equal to the balance in Accumulation Account. (However, all riders
will cease at the original retirement date).

 You can make lump-sum injections into your policy at any time before
retirement (such lump-sum injections during a year may not exceed 25% of the
Basic Sum Assured). A Supplementary Accumulation Account will be created for
this, and will be paid out in the same manner as other benefits.

 You may exercise the option of paying premiums from the Supplementary
Accumulation Account, created for "lump-sum injections", if the need arises.
For a "With Cover" plan, you have the facility of Automatic Cover Maintenance,
which ensures that the cover remains in force even when you miss the premium
payments. This facility is available after the first three years of the term.
 You have the option of paying premiums in quarterly, half-yearly or yearly
installments.
 You have the facility of a 15-day free look period.
LIFE ADVISER
 Life Advisor at
Kotak Life
Insurance

Introduction

 The Life Adviser is the most critical link

between OM Kotak Mahindra Life Insurance
Company Ltd. and the insuring public.
 A Life Advisor with the required amount of
knowledge and training and a high sense of
responsibility and service brings honor to the
profession and the company.
 The success of a Life Advisor will be depend
on three factors.
 One is his knowledge of what
is life insurance, what it does
and how it can meet the needs
of the client.
 The second factor is his
knowledge about OM Kotak Mahindra Life Insurance Company
Ltd. it’s products and how the company meets the varied of the
client.
 The third is his knowledge of the client’s needs.
FUNCTION OF LIFE ADVISOR

 Life Advisor is the first & important person in close association with the person
while procuring & servicing of life insurance business.

 The insurance Act, 1938 under it’s Section 2 (10) Insurance Life Advisor as
“Insurance Life Advisor” means an insurance agent licensed under section 42 of
above Act who receives or agrees to receive payment by way of commission or
other remuneration in consideration of his soliciting or procuring insurance
business including business relating to continuance, renewal or revival of policy of
insurances.

 Any Insurance Life Advisor has two basic tasks namely –

 Procure new life assurance business &
 Conserve the business already secure
 HUMAN RESOURCE DEPARTMENTS

TRANING AND DEVELOPMENT CENTRE:-

In view of the rapid growth of business and fast expanding cadre of management at all
levels. Kotak Life Insurance has set up a separate Management Development Department
from the new financial year.

The major goal of this department is to train develop and monitor the existing and future
managers with a view to continuously enhancing their competencies, capabilities and
potential for achieving corporate objectives. Headed by Arun Patil (Vice President – Sales
and Management Development) with his 25 years of Life Insurance industry experience,
and assisted by three facilitators, this Group will roll out different learning tracks for Sales
Managers, Branch Managers, Area and Regional Managers abd other managers of the
company.

Believing the maximum that people are the greatest assets of any company, this new
measure by Kotak Life Insurance would go a long way in creating an excellent
organization.

TRANING AT RAJKOT BRANCH

Mr. Mitesh Pathak is a branch trainer at Kotak Life Insurance Rajkot branch. He is also a
trainer for all Saurashtra branch of Kotak Life Insurance. He is B.Com graduate & also
M.B.A. from Sikkim Manipal University. He is handling training program for IRDA and
also handling 4 days product training.
Organization structure of H.R. Department

Managing Director

Vice President

Asst. Vice President

Senior Manager

Manager

Senior Executives

Executive
Recruitment and Selection at Kotak Life Insurance

1. Operating Department:-

Requirement and selection in operating department is in hierarchy from.

First Branch Head will take interview and then, Area Branch Manager
approval will come and then finally the interview will be taken by HR
Head or HR Manager. If he approves the candidate is selected.

2 Training Department

Selection of trainee for any branch of Kotak Life Insurance is centralized.

According to the requirement of any branch, the head office selects a
trainee or transfers any trainee to that branch.

3 Sales Department

Selection of any sales manager is mostly done in a local way, but final
approval is given by HR Department: To select a suitable candidate they
mostly use personal contact like relative, friends, etc. First interview is
taken by senior sales manager and after that if Branch Manager approves
the candidate then appointment Letter is issued by HR Department.

HR Department maintains records of Legal paper of any appointment of each employee of

different department. Records of performance of each employee are also maintained by
HR department.
 Refreshment program at Kotak life insurance

Refreshment program is conducted each branch individually. Each branch arranges picnic,
movie shows, and parties as and when they are required.

On this 17th May, 2006 Kotak Life Insurance has completed 5 years in incurrence sector,
so they had arranged a party for all the employees and life advisors at respective branch:

Here at Rajkot branch they arrange a small party once in two months for their employees.
So in this way Kotak Life Insurance is providing homely atmosphere to all the employees
so that they all can work like a family and try to get best from each of them.
.
MARKETING DEPARTMENT

Marketing Yesterday and Today

Today the definition of marketing has been changed. The marketing activity of an
organization before the product is produced and continues even after the product is sold.
In the buyer market of recent times the sharpest weapon that a company can develop is
globalize marketing place in the value creation and delivery. The proud and demanding
customer of today brings before corporate a critical fact, when the customer is jury. It is
the value generation for the customer that will separate the victor from vanquished. The
value of customer service cascades all over the company. The aim of customer focus is not
just satisfaction but delight satisfaction.

Till the year 1999 the life insurance business was exclusively conducted by the Life
Insurance Corporation (LIC) while the general insurance business in India, was exclusive
by General Insurance Corporation and its four subsidiaries. The insurance sector is opened
for private participation since November, 2000.

Before 1999 there was no marketing done by LIC due to its monopoly but now after 5
years the picture has changed. Now there are private players in market. With the effective
marketing techniques the private players has changed the whole scenario of the insurance
sector. They are slowly and gradually driving the business out of the hands of the LIC.
Before 1999 customer had no option other then LIC, but now they have got many options.

This is the significant change in insurance industry. Now the customer is back in the
center state. All the companies are trying to please the customer with the innovative
schemes and better service.
 Relationship Marketing in
Insurance

Introduction

It is five times more expensive to acquire a new customer than to retain an old one.

Relationship marketing is the practice of building long term satisfying relationship with
key parties customers and suppliers. They accomplish this by promoting and delivering
high quality, goods, services, and fair prices to other parties overview. Relationship
marketing results in strong economic, technical and social ties among the parties.

Definition of Relation Marketing :

Relationship marketing can be defined as the “process to identify, establish, maintain and
other stakeholders at a profit so that the objective of all parties involved are net and this is
done by mutual exchange and fulfillment of promises.

The important objectives of relationship marketing to acquire new customers maintain and
enhance relationship with existing customers, re-activities of ex-customers and handling
of customer terminations. The key objective of relationship marketing is to establish one
to one relationship with all the customers. This may have sound like a day dream few
dream few years ago but thanks to the technological breakthrough and technological
solution providers, it is very much of a reality.

How to add value through relationship

Marketing

Identify loyal customers

Recognize their special needs

Provide special reward for loyalty

Establish continuing relationship

Ensure increase in customer value

Relationship marketing is one of the hottest tread in the present marketing

scenario.

Satisfied customers not only stay with a company but they are also walking talking
advertisement for the company’s product.
FINANCIAL INFORMATION

KOTAK MAHINDRA BANK ANNOUNCES RESULTS

FOR FY06
Consolidated net profit (before
extraordinary item)
up 100% to Rs. 342.5 crore

Mumbai, May 15, 2006: The Board of Directors of Kotak Mahindra Bank took on Record
the unedited consolidated and audited stand-alone results for FY06, at a board Meeting
held in Mumbai, today.
Unedited consolidated results

Consolidated profit after tax (PAT) for Q4FY06 was up 104% to Rs. 130.8 crores as
Compared to Rs. 64.3 crores (quarter ended March 31, 2005).
The above PAT excludes the Bank’s consolidated share of profit after tax of Rs. 387.3
Crores on sale of 3.2% effective economic interest in Hutchison Essay Limited (Hutch) by
The Bank’s subsidiaries and associates in March 2006. Consolidated PAT (including stake
sale in Hutch) for Q4FY06 was Rs. 518.1 crores.
Consolidated PAT (excluding stake sale in Hutch) for FY06 was up 100% to Rs. 342.5
Crores vis-à-vis Rs. 170.9 crores for FY05. Consolidated PAT (including stake sale in
Hutch) for FY06 was Rs. 729.8 crores.

Consolidated total income for FY06 (excluding stake sale in Hutch) was up 67% to Rs.
2,854.1 crore as compared to Rs. 1,711.5 crore in FY05. Consolidated total income for
FY06 (including stake sale in Hutch) was Rs. 2,980.7 crore.

During FY06, consolidated fee income (including life insurance premium) increased 71%
to Rs. 1,471.7 crore from Rs. 859.0 crore in FY05. Significant contributors to the growth
in revenues were securities broking income, fees from investment banking, fees on
distribution of financial products and premium income from life insurance business.

Consolidated advances were up 46% to Rs. 10,421.4 crore as on March 31, 2006 (Rs.
7,144.7 crore as on March 31, 2005) with retail loans comprising 87% of the portfolio.
Consolidated net NPAs as on March 31, 2006 were 0.23% of consolidated net Advances
(0.28% as on March 31, 2005).

Consolidated net interest margins for FY06 were 5.1% (5.3% in FY05).
Consolidated book value per share as on March 31, 2006 was Rs. 72.7 (Rs. 47.6 as on
March 31, 2005) after adjusting for the 3:2 bonus issues in August 2005.

In April 2006, the Bank successfully raised Rs. 450.0 crore (approximately US$ 100
million) through issue of 1,50,00,000 Global Depository Shares (GDS). Each GDS
represents one underlying equity share of Rs. 10 each. The GDS issue will increase the
consolidated book value per share by Rs. 10.5 to Rs. 83.2.

Announcing the results, Uday Kotak, Executive Vice Chairman & Managing Director,
Kotak Mahindra Bank said, “We have completed three years as a commercial bank. Our
results reflect the strength of an integrated business model. Strong foundations are in place
to build a world class financial institution from India .”
Audited Bank stand-alone results.

The PAT of Kotak Mahindra Bank on a stand-alone basis for Q4FY06 grew by 50% to
Rs 34.7 crore as compared to Rs. 23.1 crore in Q4FY05. PAT for FY06 was Rs. 118.2
crore, up 39% from Rs. 84.9 crore in FY05.

Net Interest Income (NII) of the Bank for Q4FY06 was Rs. 108.2 crore, up 61% from Rs.
67.3 crore in Q4FY05. Other income of the Bank for Q4FY06 increased by 75% YoY to
Rs. 85.1 crore . NII of the Bank for FY06 was Rs. 354.9 crore, up 57% from Rs. 225.5
crore in FY05. Other income of the Bank for FY06 was Rs. 242.9 crore as compared to
Rs. 132.4 crore in FY05.

The Bank had 65 full-fledged branches across 43 towns and cities in India as on March 31,
2006. The Bank proposes to have around 110 branches by March 2007 across 65 towns
and cities.

As on March 31, 2006, the deposits of the Bank were Rs. 6,565.9 crore up 53% as
compared to Rs. 4,299.5 crore as on March 31, 2005. The Bank had around 1,68,200
deposit accounts as on March 31, 2006 (66,400 deposit accounts as on March 31,2005).
Advances of the Bank grew by 58% YoY to Rs. 6,348.5 crore as on March 31, 2006.
Capital adequacy ratio of the Bank as on March 31, 2006 was 11.27% (12.80% as on
March 31, 2005).

The Board has declared a dividend of 6% for 2005-06 on the expanded capital post the 3:2
bonus issue in August 2005 and the GDS issue in April 2006 (equivalent to 5% in the
previous year after adjusting for the bonus issue in August 2005).
 Suggestion

 Advertisement through “solo exhibitions”, fairs and festivals and should be done

to spread the message of Life Insurance.

 Do more and more advertisement in rural areas arranging exhibitions, participation

in fairs and festivals, rural wall paintings and publicity driven through the mobile

publicity van.

 The segment of industries is still not tapped for LA’s. Not the commission but the

recognition and association of their name with professional organization like

Kotak Group attract them.

 More and more advertisement needs to stand in competitive world, use Radio and

Television for advertisement. Radio for the rural area. So they are also able to

understand Life Insurance.

 Give sponsorship to any event so that young generation can be attracted and make

them aware about Kotak Group.

 Plan out some policies to the totally untouched market like HIV infected people.

 There should be some more motivational factor for LA.

SWOT Analysis

 Strength

 Well recognized and trusted brand of Kotak

 Experienced of Old Mutual

 Young and well qualified staff.

 Well aware of customer’s need.

 Good in relationship building

 Know about their true and potential customer

 Weakness
  Presence of Government undertaking like LIC

 Less Advertisement

 There are so many untapped area.

 Oppor
tunities

 Overseas Market

 Increasing preference in rural market.

 Increasing awareness about insurance in public

 Increase contact around the world

 Take rural market and untapped market.

 Threats
  Increase in the number of private life insurance players as a big

portion.

 Increasing competition.

Conclusion

At the end of this project, I PARESH M.HADIYA would like to conclude by wishing the
company all the very best for its future.

With the fact that still more then 70% market is yet to be covered, thus Kotak Life
Insurance has wide scope to sustain in the market and the brand name Kotak will also
provide boost to the Kotak Life Insurance.

Kotak Life Insurance is well aware of the changing environment and thus has a bright
future ahead.
 Bibliography

Books

Marketing Management Philip Kotler

Indian Institution of Bankers (Volume – Three of Life and Non

Life Insurance)

Outlook Money

Websites
 www. Kotak .com
 www. Kotak LifeInsurance.com
 www. IRDAIndia .com
 www. Google .com