A PROJECT REPORT ON

MARKETING OF INSURANCE SERVICE IN KOTAK LIFE INSURANCE

Submitted in partial fulfillment of the requirement for BACHELOR OF BUSINESS ADMINISTRATION

Submitted To

Submitted By

Mrs. Anshika
Mrs. Anjali Faculty

Davinder Singh
BBA CAM Roll No. 04613401909

Ideal Institute of Management and Technology

ACKNOWLEDGEMENT

My venerable trainer MRS. PREETI KHATRI, (Marketing Manager) is invariably special to me who have firmly inculcated the everlasting and invaluable teaching for my project.

Ineffable are my feelings desperately indebted to MRS. Anjali a vivacious and enviable personality whose contribution is praise worthy for their guidance, suggestions and cooperation. It was impossible to complete my project without the guidance of her.

At last I am expressing my thanks to all my library members and my friends for their great support.

DAVINDER SINGH

DECLARATION

I, Davinder Singh hereby declare that the information furnished in the course completion certificate by KOTAK Life Insurance and the information furnished by me in the project is all genuine and true too the best of my knowledge. I have further explained that if any untrue statement to be furnished, the college shall have the right to vary the project report submitted by me to my project guide.

CONTENTS
TITLE 1. Introduction of the topic Marketing of Insurance Service PAGENO

2. Introduction to Marketing Evaluation of Marketing Definitions of Marketing Concepts of Marketing Differentiate b/w Selling & Marketing Marketing Concept Features of Marketing

3. Introduction to Insurance Introduction Milestones in Life Insurance Business Nature of Insurance Globalization of Insurance Industry Kinds of Insurance Products of Life Insurance

4. Marketing Mix of Insurance 5. Company Profile Corporate Identity Executive Summary History & Objectives Mission/Vision Needs of Kotak life insurance Kotak life insurance Vs Other Savings Procedure &Documentation Plans of Kotak life insurance Business strategy of KLI Marketing strategy of KLI Pricing Methods Followed by KLI Distribution Channel of KLI Promotional Techniques of KLI

6. Research Methodology 7. Findings 8. conclusion

9. References

INTRODUCTION OF THE TOPIC

Marketing of Insurance Service

The new millennium has exposed the insurance sector to new challenge of competition and struggle for survival. The era of liberalization, privatization and globalization has to let loose a sense of urgency and neo activism. Indian politicoeconomic think tank realized that the obsolescence of remaining insuklar and monopolistic in the insurance sector. Today the connotation of insurance has taken a new dimension. It has been over for years since the Indian insurance market has opened up and the new entrants into the market have set up shop in every major city. It was in the twelfth century in which the idea of insurance was first conceptualized. Earlier it was used more a a tool for protection against financial loss of sea fears involved in foreign trade. It is basically the unforeseen contingencies of human life that has given a totally new look to the industry; the Indian Insurance industry was under state control with no private participation till late nineties. In the early nineties due to two major changes, first, the end of cold war and collapse of communism, second Indias entry to the World Trade Organization (WTO), lead to the beginning of liberalization era. First step was taken by Malhotra Committee on April 1993 to evaluate insurance industry and recommends future direction. The committee submitted its report in 1994 strongly recommending private participation in the industry. The discussion and efforts to open up 22 situation, wherein for one they wanted competition, development and growth of infrastructure sector. On the other end of the policy makers had the fear that insurance premium would seep out of the country and wanted to have a cautious approach for opening of foreign participation in sector. Then the IRDA was passed in Dec.1999 and with this globalization become reality. IRDA was given the statutory power to establish the rule of the law in the newly opened up domestic insurance industry. As per the IRDA Act, an insurance industry. As per the IRDA Act, an insurance company is one in which th majority share is owed by Indians and is managed by Indian and registered in India and share of foreign players was restricted to 26 percent or less in both life and general insurance business.

INTRODUCTION TO MARKETING

Marketing is indeed an ancient art; it has been practiced in on e form or the other since the days of Adam and Eve. Its emergence as a management discipline, however,is of relatively recent origin. And within this relatively short period, it has gained a great deal of importance and stature. In fact, today most management thinkers and practitioners the world over, regard marketing as the most important of all management functions in any business.

EVOLUTION OF MARKETING
The Stage of Barter The pre-industrial revolution world was characterized by an agricultural-cumhandicraft economy. The agriculturist, whether he produced corn or cotton, meat or butter, disposed of the surplus in immediate neighbourhood. These products were required in the neighbourhood by those who were engaged in the same activity. The agriculturist bartered the corn, cotton, meat and butter produced by him for the leather, hand tools, utensils and furniture produced by the craftsman. There was no elaborate distribution system as the needs and habits of the people and the prevailing technology did not demand such a system. This represented the stage of barter in the evolution of marketing.

The Stage of Money Economy The next stage in the evolution of marketing was that of money economy. No fundamental or far-reaching change took place in this stage in the production and distribution of goods. The change was limited to the replacement of the barter system by the money system, pricing becoming the mechanism of the exchange process.

The Stage of Industrial Revolution The industrial revolution was the next stage. Far-reaching changes took p-lace in this stage. The industrial revolution bore the germ of a new business system. It introduced new products, new systems of manufacture, new modes of transportation and the methods of communication and brought about sweeping changes in the physical and economic environment of man. Mass production become the order of the day. A variety of low priced goods become available in great abundance. The industrial revolution also generated the income revolution, giving a great deal of disposable income to a large mass of people. And it was this income revolution unleashed by the industrial revolution . The Stage of Competition The mass production and mass distribution brought by the industrial revolution soon led to the stage of competition. The ever increasing number and size of the producing firms generated the phenomenon of competition. Earlier, the main task of the industrial firms was disposal or distribution of their products. Now, facing competition become the main issue. The situation demanded a conscious effort on the part of the firms to ensure that their products were preferred to those of their competitors. The Emergence of Marketing After the Second World War, especially in the fifties and sixties, the size and character of markets in many countries of the world changed enormously. There was a substantinal increase in population; the disposable income of the average family registered an increase; new industrial concerns sprang up rapidly; a great variety of new products and services strengthened the rapidly developing consumer market;and selling of the products and services become unusually difficult because of the high intensity of competition

Definitions
Much of marketing is concerned with the problem of profitably disposing of what is produced.

Marketing is a phenomenon brought about by the pressures of mass production and increased spending power.

Marketing is the performance of business activities that direct the flow of goods and services from the producer to the consumer.

Marketing is the economic process by which goods and services are exchanged b/w the producer and the consumer and their values determined in terms of money prices

Marketing is the function that adjusts the organisations offering to the changing needs of the market place.

Marketing is a total system of interacting business activities designed to plan, promote and distribute need satisfying products and services to existing and potential consumers.

Marketing starts with the identification of a specific need on the part of the consumer and ends with the satisfaction of that need. The consumer is found both that the beginning and the end of the marketing process.

CONCEPTS OF MARKETING
There are mainly five concepts of marketing which are as follows. The Exchange Concept As the name indicates, holds that the exchange of a product between the seller and the buyer is the central idea of marketing. While exchange does form a significant part of marketing, to view marketing as a mere exchange process would amount to a gross undermining of the essence of marketing. A proper scrutiny of the marketing process would readily reveal that marketing is much broader than exchange.

The Production Concept The product concept is somewhat different form the production concept. Whereas the production concept seeks to win markets and profits via high volume of production and low unit costs, the product concept seeks to achieve the same result via product excellance improved products, new products and ideally designed and engineered products. It also places the emphasis on quality assurance. In general, it tries to accomplish the marketing task through the product attributes. Marketing Myopia At this stage, it would be appropriate to explain the phenomenon of Marketing Myopia. The term marketing myopia is to be creditedto professor Theodore Levitt. In simple terms marketing myopia means a colo0ured or crooked perception of marketing and a short-sightedness about business. Excessive attention to production or product or selling aspect at the cost of the consumer and his actualneeds,creates this myopia. It leads to a wrong or inadequate understanding of the marketing and hence failure in the market place. The myopia even leads to a wrong or inadequate understanding of the vary nature of the business as well.

The Selling Concept As more and more markets become buyers market and the entrepreneurial problem become one of the solving the shortage of customers rather than that of goods, the sales concept become the dominant idea guiding marketing. The saes concept maintains that a company cannot expect its products to get picked up automatically by the customers. The company has to consciously push its products. Aggressive advertising, strong publicity and public relations are the normal tools used by organizations that rely on this concept.

Differentiate Between Selling and Marketing

Marketing is much wider term then selling and much more dynamic. There is a fundamental difference between the two in approach as well as in the very philosophy on which the two processes rest. Selling revolves around the needs and interest of the seller; marketing revolves around the needs and interest of the buyer. Selling starts with the existing products of the corporation and views business as a task of somehow pushing the existing products of the corporation. Marketing on the other hand, starts with the customers, present and potential, and views business as a task of meeting the needs of the customers by producing and supplying products and services that would exactly meet the needs o0f the customers. Selling seeks profits by pushing the products on the buyer. Marketing too seeks profits-but not through aggressive pushing of the products but by meeting the needs of the customer and by creating value satisfaction for them. In other words marketing calls upon the corporation to choose products, prices and methods of distribution and promotion that would meet the needs of the customers.

SELLING 1.Selling starts with the seller. Selling is preoccupied all the time with the needs of the seller; seller is the center the business universe; activities start with sellers existing products.

MARKETING 1. Marketing starts with the buyer and focuses constantly on the needs of the buyer; buyer is the centre of the business universe; activities follow the buyer and his needs.

2. views business as a goods producing process

2. Views business as a customer satisfying process

3. Overemphasis on the exchange Aspect without caring for the value satisfaction inherent in the exchange

3. Concerns itself primarily and truly with the value satisfaction that should flow to the customer from the exchange.

4.Sellers convenience dominates the formula of the marketing mix

4. Buyers determines the Shape the marketing mix should take.

5. The firm makes the product first And then figures out how to sell it And make profit.

5. Firm make a total product offering that would match & Identify the needs of the cus-tomer.

6. Emphasises on staying with the Existing technology and reducing The cost of production.

6. More emphasises is given on innovating new products

The Marketing Concept The Marketing concept was born out of the awareness that marketing starts with the determination of consumer wants and ends with the satisfaction of those wants. The concept puts the consumer both at the beginning and at the end of the business cycle .it stipulates that any business should be organized around the marketing function, anticipating, stimulatingand meeting customers requirements. The customer not the corporation has to be the center of the business universe. A business cannot succeed by supplying products and services that are not properly designed to serve the needs of the customers. It proclaims that the entire business has to be seen from the point of view of the customer. In a company practicing this concept, all departments will recognize that their actions have a profound impact on the companys ability to create and retain a customer. Every department and every worker and manager will think customer and act customer. The change in orientation is what separates marketing from selling. Similarly, it can be said that the Marketing Concept represents essentially a change in orientation as enumerated below. From Production Orientation to Marketing Orientation From Product Orientation From Supply Orientation From Sales Orientation From Internal Orientation to Customer Orientation to Demand Orientation to Satisfaction Orientation to External Orientation

It is obvious that the Marketing Concept represents a radically new approach to business and is the most advanced of all ideas on marketing that have emerged through the years. Only the Marketing Concept is capable of keeping the organization free from Marketing Myopia. All the other guiding marketing, viz., the Exchange Concept, the Production Concept, the Product Concept and the Sales Concept give rise to marketing myopia of one form or the other.

Features of Marketing
The Marketing Concept has four major distinguishing features:1. Consumer Orientation An overwhelming emphasis on the consumer and his need is the first distinguishing feature of the Marketing Concept. The concept enables the firm to look at the nature and mission of its business from the point of view of the consumer. The importance of the consumer as per the Marketing concept can be seen clearly in the following words, The purpose of any business is to create a customer. It is the customer who determines what a business is. It is the customer and he alone, who through being willing to pay for a good or service, converts economic resources into wealth, things into goods. What a business thinks is produces is not of first importance-especially not to the future of the business and to its success. What the customer thinks he is buying-what he considers value is decisive; it determines what a business is, what it produces and whether it will prosper. 2. Integrated Management Action The second major distinguishing feature of the marketing concept is integrated management action. Integrated management action simply means that all the different functions of the business must be tightly integrated with one another, keeping marketing as the pivot. This is essential because every function has a bearing on the consumer and the aim is to see that all the functions lead to a favorable impact on the consumer. 3. Consumer Satisfaction Integrated Management action as explained above is a means, not an end in itself. It is the means for fulfilling the needs of the consumer. And this leads us to the third major distinguishing feature of the marketing concept, namely consumer satisfaction. The marketing concept emphasises that it is not enough if a firm has a consumer orientation; it is essential that such an orientation leads to consumer satisfaction.

4. Realising Organistional goals including profits Consumer Satisfaction, which is a major theme of the marketing concept, is again not an end in itself. The concept does not preach that a firm must generate consumer satisfaction and forget the other goals of the organization. Instead, it treats consumer satisfaction as the pathway to the attainment of all the goals of the organization. The underlying approach is: if a firm has succeeded in generating consumer satisfaction, it implies that the firm has given a quality product, offered competitive price and prompt services and has succeeded in creating a good image. It is quite obvius that for achieving these results, the firm would have tried its maximum to control costs and simultaneously ensure quality, optimize productivity and maintain a good organizational climate.

INTRODUCTION TO INSURANCE

Insurance is a tool by which fatalities of a small number are compensated out of funds (premium payment) collected from plenteous. Insurance companies pay back for financial losses arising out of occurrence of insured events are fire and other allied perils like riot and explosion, strike, etc. Hence, insurance is safeguard against uncertainties. It provides financial recompense for losses suffered due to incident of unanticipated events, insured within policy of insurance. Insurance, essentially, is an arrangement where the losses experienced by a few are extended over several who are exposed to similar risk. Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premium to provide security for the purpose. As loss is paid out of the premium collected from the insuring public and the insurance companies act as trustees to the amount so collected. Insurance companies have standard proposal forms, which are to be filled up giving the details of insurance required and presented to insurance company. Depending upon the answers given in proposal form insurance companies assess the risk and quote the premium. On payment of premium and acceptance thereof by insurance company the insurance is affected. Nonetheless, there is no insurance cover if premium is not paid Insurance has been defined to be that in which a sum of money as a premium is paid by the insured in consideration of the insurers bearing the risk of paying a large sum upon a given contingency. The insurance, thus, is a contract whereby: (1) (2) (3) (4) certain sum, termed as premium, is charged in consideration, against the said consideration, a large amount is guaranteed to be paid by the insurer who received the premium , The compensation will be made in a certain definite sum, i.e.,the The payment is made only upon a contingency . loss or the policy amount whichever may be,

Milestones in the life insurance business in India

Year 1912

Milestones in the life insurance business in India The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business

1928

The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses

1938

Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956

245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

NATURE OF INSURANCE

On the basis of the definition of insurance discussed, one can observe its following characteristics:

Risk Sharing and Risk Transfer: Insurance is a mechanism adopted to share the financial losses that might occur to an individual or his family on the happening of a specified event. The event may be death of earning member of the family in the case of life insurance, marine perils in case of marine insurance, fire in fire insurance and other certain events in miscellaneous insurance. The loss arising from these events if insured are shared by all the insured in the form of premium. Hence, risk is transferred from one individual to a group.

Co-operative Device: Insurance is a co-operative device under which a group of persons who agree to share the financial loss may be brought together voluntarily or through publicity or through solicitations of the agents. An insurer would be unable to compensate all the losses from his own capital. So, by insuring a large number of persons, he is able to pay the amount of loss.

Risk Assessment in Advance: Insurance companies are risk bearers. Therefore, the risk is evaluated before insuring to charge the amount of share of an insured, herein called, consideration, or premium. The probability theory is used to evaluate the risks. Probability theory is that body of knowledge concerned with measuring the likelihood that something will happen and making estimates on the basis of this likelihood. Compensation at the time of Contingency:

The compensation is made at a certain contingency insured. If the contingency occurs, payment is made. Since the life insurance contract is a contract of certainty, because the contingency the death or the expiry of term, will certainly occur, the payment is certain. Similarly, in certain types of life policies, payment is not certain due to uncertainty of a particular contingency within a particular period. For example, in term insurance the payment is made only when death of the assured occurs within the specified term, may be one or two years. Amount of Payment: On the occurrence of the contingency, the insurer is legally bound to make good the financial loss suffered by the insured. The amount of payment depends upon the value of loss occurred due to the particular insured risk provided insurance is there upto the the amount. In life insurance, the purpose is not to make good financial loss suffered. The insurer promises to pay a fixed sum on the happening of an event. It is immaterial in life insurance what was the amount of loss at the time of contingency.

Huge Number of Insured Persons: To make the insurance cheaper, it is essential to insure larger number of persons or property because the lesser would be cost of insurance and so, the lower would be premium. In past years, tariff associations or mutual fire insurance associations were found to share the loss at cheaper rate. In order to function successfully, the insurance should be joined by a large number of persons.

Globalization of Insurance Industry

The global insurance industry has undergone a major change after 11 th September attack on the world trade center in United States. An estimated loss of $70 billion of this event has posed serious questions before the players all around the world to rethink & devise their strategies accordingly. Many of the insures have become cautious while undertaking risk on a global basis. Impact of Globalization: Globalization will have mixed blessings for India. It will entail new opportunities for players but also, simultaneously brings threats against the national interest. Opportunities: Opening up of the sector will ensure a larger flow of funds in 2 ways. More investment will take place in the sector. Further through competition, a larger portion of savings will find its way into infrastructure through insurance companies. This will change the image of India being a highly under-insured nation. After the nuclear tests, the government needs to hold out a hand of friendship to the west to achieve aims related to national security. Insurance will be a visible gesture. From the point of view of the capital markets opening up of the insurance will have a bullish impact. In the near term, insurance is highly visible industry & the fact that inspite of motivated opposition. In the medium terms insurance companies are traditionally major players in stock markets LIC & GIC make substantial investment in stocks. They invest in stocks because they get a relatively steady earnings and a strong assets base. The opening up of the insurance sector by the govt. of India to private & global players will lead to phenomenal growth in terms of number of new players & new products & services. However, it is critical that when we open the doors for insurance we protect our own national long-term interests. Threats:

There is a fear that there will be flight of capital from India; to ensure against this we should stipulate that capital and dividend repatriation should start after some years. The other fear is that the foreign insurers will cream the market. A level playing field between LIC & GIC & other foreign companies should be ensured. The biggest fear is ownership, i.e. foreign insurers do not control the management of the insurance company through backdoor. To prevent this we should ensure that the day-to-day management is with the Indian partner & foreign holdings do not exceed the ceiling laid down by law.

KINDS OF INSURANCE
Insurance occupies an important place in the modern world because the risks, which can be insured, have increased in number and extent owing to the growing complexity of the present day economic system. It plays a vital role in the life of every citizen and has developed on an enormous scale leading to the evolution of many different types of insurance. In fact, now a days almost any risk can be made the subject matter of contract of insurance. The different types of insurance have come about by practice within insurance companies, and by the influence of legislation controlling the transacting of insurance business. Broadly, insurance may be classified into the following categories: 1) Classification on the basis of nature of insurance: a) Life Insurance, b) Fire Insurance, c) Marine Insurance, d) Social Insurance, and e) Miscellaneous Insurance.

2) Classification from business point of view:

a) Life Insurance, and b) General Insurance. 3) Classification from risk point of view: a) Personal Insurance, b) Property Insurance, and The commonly known insurance covers can be categorized as follows:

INSURANCE

Life

Non-Life

Endowment Money back Pension

Property Liability Health

NON LIFE INSURANCE: Property; Personal and business property insurance that covers risks against fire, marine, theft, and burglary. Liability: Home Insurance/Domestic cover Business Insurance Commercial Insurance.

This protects the insured against injury or damage claims made by a third party. The types under this category are: Automobile Insurance Workers Insurance Liability Insurance Aviation Insurance

Health: In case of an illness or injury suffered by the insured or his/her dependents, health insurance covers their medical expenses incurred. The types of insurance under this category are: Health Business Fire Insurance Travel Overseas Mediclaim policy Videsh Yatra Mitra Fire Insurance policy Fire consequential loss policy Burglary insurance Shopkeepers insurance Key-man insurance Medi claim policy Personal accident-individual Personal accident-family Group accident insurance etc Hospital Insurance Medical cover

Few examples of general insurance policies are:

LIFE-INSURANCE: Life insurance products can be broadly divided into various categories, which include money back, pension girl-child, couple, whole life and child insurance. Money Back: Jeevan Sanchay Money back with profits policy jeevan surabhi Pension: New Jeevan Dhara Jeevan Suraksha with life cover Jeevan Suraksha Endowment plan Endowment: Jeevan shree Endowment policy without profits Endowment policy with profits Whole life: Whole life policy with profits Limited payment whole life Convertible whole life Child Insurance Policy: Jeevan Kishore Childrens deferred Assurance Plan Bal Vidya

PRODUCTS OF LIFE INSURANCE

There are various products of life insurance which are as follows:

1) TERM ASSURANCE Under this type of life insurance contract, the sum assured is payable only in the event of death during the term. In case of survival, the contract comes to an end at the end of term. There is no refund of premium. These policies are usually non-participating. Since only death risk is covered, the premium is low and the contract is simple. In contrast with other life insurance contracts, which are usually long, even up to 40 years or more, the term insurance contracts are usually registered for short periods.

2) WHOLE LIFE ASSURANCE: This is also a different type of term insurance. Under whole life plans, life insurance protection is available throughout the lifetime of the life assured. It is effectively a long-term insurance plan with a level premium and the sum assured is payable only on the death of the insured and premiums are payable till death.

3) PURE ENDOWMENT:

Life insurance plans, which provide for payment of policy monies only on survival of the specified period, are called pure endowment. In case a person dies then his legal heirs are not entitled for any amount. These plans are not popular as they only cater to the saving element of insurance and there are better alternatives available in the market.

4) ENDOWMENT ASSURANCE POLICY: Endowment assurance plans are a combination of Term Assurance and Pure Endowment and provide for the payment of the sum Assured (SA) in case of death during the term (term assurance), or on survival of the term (pure endowment). This plan is a combination of term level premium plan and pure endowment plans. Since the SA is payable on death or on survival, the premium charged under endowment plans are higher than term or whole life insurance plans.

5) MONEY BACK ENDOWMENT PLANS: To meet the needs of the insured, the insurer have devised endowment plans wherein part of sum assured is made payable periodically during the term of the policy. Notwithstanding the payments at periodic intervals, the sum Assured at least continues to be the same till the end of the term and is called money back endowment plans. 6) ANNUITIES: The Annuity is a reverse of the life insurance principal. When a person purchases a life insurance contract he agrees to make a series of payments (premiums) to the insurer and in return the insurer agrees to pay a specified sum to the beneficiaries, in case of death of life assured or on maturity. If a person buys an Annuity Contract he pays the insurer a specified capital sum (purchase price), may be in installments or lump sum and in return the insurer promises to make a series of payments to him as long as he lives. There are various other insurance products also.

OTHER INSURANCE PRODUCTS

Based on the above broad categories, the life insurance products are formulated with some modifications as per need of the different sections of the society. Some of the products are classified as follows:1) Individual and Group Policies In the case of individual insurance, the contract is with the individual policyholder. The decision to take out the policy is voluntary and the amount as well as plan of insurance is decided by the individual. The individual pays the premium and has the right to seek determination or alteration of the contract. In case of group insurance, the contract is with the employer or with the group/ association. A single master policy is issued covering all the members, as per agreed terms. The individuals covered under the master policy are not parties to the contract. The amount and terms of insurance are negotiated by the employer or group, and apply equally to all members. The premium is paid by the employer or group with/without being collected from members. 2) With profits and without profit policies: The with profit policies allow the policyholder to participate in valuation surplus. Should such a surplus exist, the company will first provide for any special contingencies it may foresee or contributes towards a general reserve (as prescribed) and the balance, if any will be distributed among those policyholders who have withprofit or participating policies. The non-profit (without-profit) policy does not carry a right to receive bonus. The whole life and endowment policies are often with-profit policies whereas the temporary assurance policies are customarily non-profit contracts. 3) Female Insurance: Females by nature are susceptible to every type of death. This is generally a standard adopted by Insurers world over and females are not considered very favorable insurance prospects. It is because of this condition that Indian Insurance

Industry considers insurance underwriting of females under special conditions. From insurer point of view Indian female should have genuine need for life insurance. 4) Policies for Children and Physically Handicapped: (a) Children policy: In earlier times life insurance companies did not handle policies for children as children were considered bad risks because of high mortality factors. As of today the health structure has improved the survival rate among children thereby forcing the insurance companies to take out policies which take care of both male and female children. The main advantage of this plan is that a policy for a relatively large amount can be taken for a very low premium. This premium will continue even after the deferred date, irrespective of the state of health of the child then. The proposer has the option to say that the policy will not continue after the deferred date. In that case, the policy terminates on that date and cash payment is made to the proposer, which is not exactly the total amount of premium paid. It could be more or less.

b) Handicap Policy: Policy for the handicapped was started in 1995. This policy is mainly for dependents that are handicapped. Under this an individual of Hindu Undivided Family can take a policy on his own life so as to provide lump sum amount or an annuity to a handicapped person, who may be his dependent. The normal term period range is 10 to 35, with multiples of 5 up to term of 35 years.

Marketing Mix of Insurance

The basic task of a marketer is to deliver to the customer satisfaction. He does so by offering a product at a reasonable price, at a suitable place and after appropriate promotion. These four Ps could deliver satisfaction and they were called the elements of the Marketing Mix. Now with marketing of services becoming more and more important three more Ps have been added. These are people, process and physical factors. Insurance is a service Industry.

Product
A product is basically something that a producer offers to a customer, it is an aggregate of utilities, values, expectations and perceptions, a complex cluster of value satisfactions. One buys satisfaction and states of mind rather than simply goods and services. Even in case of goods, the customer is concerned with the intangibles associated with the tangible product. In the case of insurance, the tangibles are practically non-existent. The product in case of insurance is only a promise for the customer & according to the technical experts in the insurers office product sold is what the policy means, but these differences come to light only at the time a claim is made. These differences mainly arise because of: Inadequate Knowledge among the public about the technicalities of insurance and Inadequate or incorrect explanations by the agent.

Production Development In case of insurance, production development consists of the following two steps: To determine the policy terms and conditions and to generate a variety of plans.

To manage the interactions. Policy being suggested will meet the needs of customers. Promise will be redeemed, when the time comes.

Also the promise which is being made has two aspects:

But these promises are made by an agent. Thus agent is the primary product of the insurer. What is sought by the customer is what is recommended by the agent. 1. Product Differentiation: In case of insurance, every policy is customized because the final shape of the policy is determined talking into consideration the specific requirements of the customer. The core product offered by all insurers will practically be the same. The differentiation and consequent competitive advantage will be in the peripherals or in the delivery system, after sales service and the claims procedures. 2. Product Range-breadth and Depth: In life insurance, the core product would vary according to the mix of cover for death and for survival, augmentation would be in the nature of facilities for collection of premium, variability of the sum assured according to indices of inflation etc. In general insurance, there is much wider scope for variation in the core product itself. Every different person and every different industry provide opportunity for variations. Product ranges are looked at in the terms of breadth and depth. An insurer who offers policies covering death or survival with variations in the policies with sum assured stipulated in terms of houses and gold, it has added breadth. Developing a Product: For developing a service product, following steps are involved: Determine what the customer values as benefit (Benefit Concept) Determine which of these benefits could be offered (Service Concept) Decide on the premise service offer, which includes form and levels of the benefits to be offered and Decide on arrangements for delivery of the service (Delivery System)

The benefits that could be offered by insurance companies mainly differ on the basis of the segments that they choose to operate in. 3. Product Range: A product must be positioned Vis-a Vis other products in its own package offers as well as offers by the competitions. A life insurance policy is competing with the concept of undivided families and landed or household property and also against bank and company deposits or the provident fund and other savings media.

Pricing
In the case of services, the cost of production (including distribution costs) is difficult to determine. Thus pricing is very difficult. In case of insurance, costs includes the cost of running of office, plus the claims incurred in the business of price of Insurance product i.e.; Premium is based on cost plus margins. In Insurance there is limited scope to use price as a strategic weapon. In life insurance, the premium rates are decided by the actuary, on considerations that depend on the experience of the insurer in the past and his assessment of the trends in the future. These rates have to be approved by the IRDA. Generally price is the result of demand and supply. But the product of insurance is not price elastic. While there is need for insurance, very few want it. On the contrary, if there is heavy demand for insurance the insurer will have to be cautious in granting the requests. Some policy holders say that the premium rates are high. Owners of motor vehicles were opposed to the rise in tariff rates for motor insurance companies w.e.f. April 1st, 2005. Other Insurance Players are also demanding the same description.

Place or Distribution Channels

Distribution refers to the arrangements by which the product after manufacture is moved till it reaches the customer. There are various intermediaries in every business like wholesellers, retailers etc. In the service business, agents and brokers are intermediate in

the transaction. Insurance business is sold through agents as intermediaries. In India, the regulations provide that an insurance agent can represent only on life and one nonlife insurer. An agent has to obtain a licence from the IRDA. Brokers also act as insurance intermediaries. But they are different from agents in the sense that they are independent businessmen. Either working alone or in partnership. Brokers may be found in the non-life insurance business helping customers whose insurance requirements are complex. Intermediaries play a very important role when the claim has to be settled. They have to see that the legitimate claim is duly paid without delays. Bancassurance The regulations in India allow individuals as well as firms and companies to become insurance agents. Thus Banks which have large client base can link with insurance companies to mutual advantage. This is known as Bancassurance. This is already happening in a big way in European Countries. In India, banks influence a lot of non-life business. Direct Marketing Marketing of insurance products can also be done directly. The media used for Direct Marketing are: Direct Mail: Letters sent to consumers on the basis of addresses available from sources like telephone directory, membership lists of clubs and professional associations, stock exchange brokers or registrars to companies. Telephone contacts Television programmes of relatively longer duration. Advertisements and loose insertion in main line as well as professional and trade journals Displays in conferences, services for specialized products linked to the themes of the seminars Direct contact from the insurers salaried staff Stalls in exhibitions and solo exhibitions in remote areas. Call centres or service centres Kiosks with touch technology etc

Promotion
The purpose of promotion is to communicate with the market. Promotion tries to influence attitudes and receptivity to eliminate misconceptions and thus to mor sales. The IRDA has issued guidelines about advertisements by insurers and the agents or bcovees in the newspapers, magazines, sales talks, bill boards, hoardings, panels, radio, television etc. the main requirements are: The advertisement programme has to be overseen by an officer responsible for compliance with the regulations. A copy of every advertisement should be filed with the IRDA. Advertisement should disclose the full particulars of the insurer, as well as in the form number and the type of coverage of the policy referred to. Display the registration/licence numbers on their websites. No third party, other than insurer or authorized intermediary can distribute information or recommended purchase of specific insurance products. Advertisement should not be unfair or misleading.

People
People are the most critical resource in any organization without people, no other resource in any organizations without people, no other resource can perform. An employee, who is dissatisfied or worried, may not apply himself fully at work. At the time of interaction with the customer, the employee is alone. The insurance service is judiciary in nature. thus credibility or trust worthiness, in the perception of the customer is crucial. The employee can strengthen or erode this.

COMPANY PROFILE

CORPORATE IDENTITY

The symbol of the infinite ka reflects their global Indian personality.The ka is uniquely Indian while its curve forms the infinity sign, which is universal. One of the basic tenets of economists is that mans needs are unlimited. The infinite ka symbolizes that they have infinite number of ways to meet those need.

EXECUTIVE SUMMARY
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd.(KMBL), and Old Mutual plc. At Kotak Life Insurance, we aim to help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent. Our Management Mr. Gaurang Shah (Managing Director) Mr. Gaurang Shah is the Managing Director of Kotak Mahindra Old Mutual Life Insurance Limited. Mr. Gaurang Shah is a Chartered Accountant and a Cost and Works Accountant. He has also done his Company Secretary ship from the Institute of Company Secretaries of India. Mr. Gaurang Shah has been with the Kotak Group for the past eight years where he has held different positions of great responsibility and juggled multiple tasks effectively. His cumulative experience, primarily in financial services, stands at over 21 years, several of those in building the retail finance business. At Kotak Life Insurance, Mr. Shah will focus on developing new lines of businesses and leveraging the company's existing competencies and network to steer Kotak Life Insurance on its ongoing growth path with even greater thrust. Mr. Shah has a commendable expertise in managing a large number of employees. Mr. Shah has been previously associated with Kotak Mahindra Primus since its inception and has contributed towards its growth to become a Rs.2000 Cr plus business. Before coming to Kotak Life Insurance, Gaurang Shah was Group Head of Retail Assets for Kotak Mahindra Bank. The Retail Assets include commercial vehicles, personal loans, structured products, car loans and loans against shares. Mr. Pankaj Desai (Executive Director, Sales & Distribution) As the Executive Director at Kotak Life Insurance, Mr. Pankaj Desai is responsible for Sales, Training, Distribution and Channel Marketing.

A Chartered Accountant by qualification, Pankaj comes with a very rich and diverse experience in the Banking and Finance sectors. Pankaj joined the Kotak Group in 1999 as Vice President Kotak Mahindra Finance Ltd. and since then has juggled many responsibilities within the Group. Prior to joining Kotak Life Insurance, he was heading the Retail Assets business at Kotak Mahindra Bank Ltd. where he was responsible for verticals like Car Finance, Personal Loans, Home Finance and Business Banking. Mr. Desai is passionate about reading and traveling. Mr. G Murlidhar (Chief Financial Officer) Mr. Murlidhar is a Chief Financial Officer and Company Secretary of Kotak Life Insurance. Mr. Murlidhar is an associate member of the Institute of Chartered Accountants of India, an associate member of the Institute Of Company Secretaries of India, and graduate member of the Institute of Cost & Works Accountants of India. Mr. Murlidhar possesses over 20-year work experience and has earlier worked with National Dairy Development Board (NDDB), MDS Switchgear Limited and Nicholas Primal India Limited and Ion Exchange Ltd. Prior to Kotak Life Insurance; he held the position of VP-Finance at Gujarat Glass Ltd. As Chief Financial Officer at Kotak Life Insurance, he oversees all aspects of Finance including Operations, Regulatory, Internal Control, Finance, Accounts and Treasury.

HISTORY

KOTAK MAHINDRA GROUP This is the First NBFC to become a bank. This group provides a wide range of Financial Services. Kotak was established in the year 1992. This group comes under the category of AAA credit rating. Total earnings of kotak group are around 5824 crores. The AUM (Assets under Management) of this group is Rs. 14,500 crores. Kotak is widely available among 370 cities of our country. They are having a team of 20,000 professional employees. Kotak Mahindra is having a customer base of over 36 lakhs.This company has received several national & international awards. OLD MUTUAL plc It is a South African company. This company is listed under Fortune 500 Company. This company is having the experience of 159 years. Old mutual plc had established a global presence across US, UK and African Markets. This company is having the AUM of US $ 306 million. Old Mutual plc. Owns the largest companies in the following areas in South Africa Life Insurance Company Asset Management Company Bank Non-Life Insurance Company

It is the 12th largest Insurance Company in the world. This company is having a base of 4 million life assurance policyholders. This company is having the best Payouts among insurers in the world. The old mutual group manages in excess of 4720 billion in fund.

KOTAK MAHINDRA LIFE INSURANCE Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd.(KMBL), and Old Mutual plc. At Kotak Life Insurance, we aim to help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent. It started operations in May 2001.its growth in premium income is 209% (for the year ending March 2005). This company has issued more than 1,60,000 policies. They are having more than 7000 Advisors.

OBJECTIVES

Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. Conduct business with utmost economy and with the full realization that the moneys belong Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. Maximize mobilization of people's savings by making insurance-linked savings adequately attractive.

to the policyholder Act as trustees of the insured public in their individual and collective capacities.

Meet the various life insurance needs of the community that would arise in the changing social and economic environment.

Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.

MISSION / VISION

Mission

"Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."

Vision

"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India." To be among the top private players with substantial market presence. To be achieved through well trained and quality Life Advisors offering need based solutions.

NEEDS OF KOTAK LIFE INSURANCE

1) It covers the risk of death: The risk of death is covered under insurance scheme but not under ordinary savings plans. In case of death, insurance pays full sum assured, which would be several times larger than the total of the premiums paid. Under ordinary savings plans, only accumulated amount is payable. 2) It encourages compulsory savings: After taking insurance, if the premium is not paid, the policy lapses. Therefore, the insured is forced to go on paying premium. In other words, it is compulsory. A savings deposit can be withdrawn very easily. 4) Easy settlement and protection: Once nomination or assignment is made, a claim under life insurance can be settled in a simple way. Under M.W.P. Act, the policy moneys become a kind of trust, which cannot be taken away, even by the creditors. 5) Achieve the purpose of the life Assured If a lump sum amount is received in the hands of anybody, it is quite likely that the amount might be spent unwisely or in a speculative way. To overcome the risk, the life assured can provide that the claim amount be given in installments. 6) Insurance Facilitates Liquidity: If a policy-holder is not in a position to pay the premium, he can surrender the policy for a cash sum.

KOTAK Life Insurance Vs. Other Savings

Contract of Insurance:

A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance. At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void. Protection:

Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid To Thrift:

Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary. In this case the employer directly pays the deducted premium to LIC.

Liquidity:

In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.

Tax Relief:

Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-totime. Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).

PROCEDURES AND DOCUMENTATION

Now, let us discuss the procedure for obtaining the life insurance policies. As stated earlier that the life insurance contract is long-term contract for an intangible product, therefore, all terms and conditions in various insurance documents should be well defined to make them understandable to the customer to avoid any legal battle at latter stage. The following documents are involved: 1. Prospectus 2. Proposal Form 3. Deposit Receipts 4. Policy Documents 5. Endorsements 6. Renewal Notice 7. Bonus Notice PROSPECTUS: In life Insurance business, the company provides information about itself and

the product through the prospectus. Therefore, prospectus is a document which gives details regarding set-up of life Insurance company, plans or features of the life Insurance products and other terms and conditions. Though, the prospectus provides a lot of information to the client to decide about the product/ policy but he would like to take the advice and guidance of a sales person. At the same time the prospect would like to know the price to be paid by him for any particular product. To calculate the premium the following procedure is to be followed: Firstly, we should find out the age of the proposer as the premium will depend on the age of the prospects. On the date of proposal, the age may be defined as---1. Age nearer to the birthday; 2. Age on next birthday; 3. Age on last birthday. If a person was born 22years 8months earlier. Then 1. Age nearer to the birthday is 23; 2. Age on next birthday is 23;and

3. Age as on last birthday is 22. If a person is 22yrs.5months 29days then the age nearer birthday will be 22yrs. If the age is 22yrs.5months 30days the age nearer birthday will be 23 yrs.

PROPOSAL FORM:

After selecting the product to be taken by the prospect the next stage in the contract of life insurance begins with the proposal. The Indian Contract Act says, when one person signified to another his willingness to do or to abstain from doing anything with a view to obtaining assent or that other such act or abstinence, he is said to have made a proposal. In Life Insurance the proposer through a standard printed proposal form of the insurer makes the proposal. Before the life insurer considers it for acceptance, the insurer obtains several forms duly completed. These forms provide relevant data for the purpose of assessment of the risk. The proposal form would contain the following information: NAME: The name of the proposer is to be filled carefully. Any error in giving the full and correct name may create difficulties at a later date. In the event of death of the life assured, the first thing to be established is that it is the life assured under the policy who has died. NATIONALITY: The nationality of the life to be insured is very important because under RBI rules, life insurance policies on the lives of foreigners can be issued only under special circumstances and subject to certain conditions. Furthermore, the rules and regulations of some countries permit their nationals to buy a policy of life insurance only under certain circumstances and subject to certain rules. Therefore, if the

nationality is not correctly stated it may create complications after the policy is issued and in some cases even the Insurance contract may have to be cancelled, thus causing avoidable inconvenience to both the parties.

OCCUPATION: The occupation of the life to be insured is very important for assessing the risk. Therefore, the full nature of the occupation detailing the duties should be stated. The designation such as manager, engineer, craftsman, operator, manufacturer and businessman do not convey the exact nature of duties and often there is tendency to use them to camouflage hazardous risk, which calls for acceptance at extra premium.

AGE: Since the insurance premium are worked out on the basis of age at entry, it is important to give the exact date of birth. Generally, the insurer insists that proof of age must be submitted along with proposal and the following types of age must be submitted along with proposal.

NOMINEE: It should be ensured that the nominee is appointed to receive the claim amount in the event of death. This will also avoid expenses in obtaining evidence of legal title and delay in settlement of claim. There are other information also included in the proposal form.

DEPOSIT RECEIPT: Along with the proposal form the first installment of the premium as calculated above is to be deposited to the insurance company. Only after getting the first payment of the premium the proposal will be scrutinized by the insurance company.

POLICY DOCUMENTS: After scrutiny of the proposal form, if it is found in order then the policy document is issued. This policy document is a very important document. This document is to be kept in safe custody, and should be handed over in a neat manner. It should not be left unattended, should not be misplaced or soiled otherwise there will be a lot of inconvenience at the time of: 1. Taking loan against 2. Passing any endorsement; 3. Giving it as collateral security; and 4. Taking claim. 5. It is like a Pronote or Registry. A policy document is the proof of contract. It mentions conditions of contract and also the rights of the policyholder. However, the policyholder seldom goes through the policy document. The assured should know the rights he enjoys and also the conditions he has to fulfill. The policy document consists of following documents: i. Heading ii. Preamble iii. Operative clause iv. Proviso part v. Schedule part vi. Attestation part vii. Conditions and Privileges

ENDORSEMENT: Writings on or on the back and forming part of policy is a contract: 1. Endorsement may be alteration, assignment or pledging etc. 2. Endorsement refers to all amendments to master policy documents. 3. It is a document attached to the policy. It is through this document the original terms are modified in the original policy document. 4. Endorsement remedies the more general provisions in the policy itself. 5. Endorsement is a memorandum added to a policy indicating the alterations to the terms of policy. 6. In case the space is not available it is done on separate piece of paper and pasted on policy with signatures of the assured and attestation of same by insurance company officials. 7. Endorsement is necessary if the nominee is minor and policy names an appointee. This is done by obtaining signatures of appointee. In case of Group policies, the endorsement is necessary in following cases: (A) Revision of Benefits due to: 1. New Membership; 2. Increase in Benefits; and 3. Termination of membership. (B) Change in Rules. (C) Revision in Table Rates Leading to revision.

RENEWAL NOTICE: Normally the policies in non-life insurance are for a period of 12 months but in case of life insurance the yearly premiums are paid based on term of the policy, i.e. for number of years. Though there is no binding on insurance company to send intimation for renewal to the policyholder, but if due to some reason the policyholder forgets to deposit premium it is not only loss to the insured but also to the insurer who has incurred expenses on maintenance of policy and the relevant documentation. Thus, renewal notice is beneficial to company as well as policyholder.

BONUS NOTICE: It is the intimation about bonus earned by the policy. This is a source of information to the policyholder by which he comes to know regarding how much premium he has deposited and what the amount of bonus is his policy has accumulated.

PLANS OF KOTAK LIFE INSURANCE Plans of kotak Life Insurance is divided in two basic parts:1. Traditional Plans 2. Unit Link Insurance Plans Unit Link Insurance Plans 1. These are those plans which insurance 2. These plan provide less benefit to the customer. 1. This plan Provide life insurance & investment 2. Whereas this plan provides more benefits to the customer. 3. Traditional plans are highly risky in nature. 4. Total risk is truly owned by the Company. 5. Under these plans, only 35% of the amount is invested in equity market. 3. ULIPs are less risky then tra-ditional plans. 4. Here, the risk is fully owned by the customer. 5. Whereas, in this plan 100% amount is invested in equity Market

Traditional Plans

KOTAKS TRADITIONAL PLANS

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 payable on survival. This is a non-participating plan. "Who can avail of this plan?" HOW OLD DO YOU HAVE TO BE TO AVAIL OF THIS PLAN? Minimum age - 18 years Maximum age - 60 years FOR WHAT TERM CAN I AVAIL OF THIS PLAN? 10 - 30 years for regular premium 5 - 30 years for single premium WHAT IS THE MINIMUM PREMIUM THAT I NEED TO PAY AND AT WHAT INTERVALS CAN I PAY THEM?

Mode Quarterly Half Yearly Annually Single Premium Rs.540 Rs.1055 Rs.2000 Rs.10000

Amount

WHAT IS THE MAXIMUM AGE THAT THE PLAN CAN COVER YOU TILL? 70 years "What are the advantages of this plan?"

1. It is a low-cost insurance plan. 2. You can choose between a regular premium payment option or a single premium payment option.

In case you opt for the regular premium payment option, you may pay your premiums either annually, or in half yearly or quarterly installments. 3. Your Kotak Term Plan can be converted into any other plan offered by Kotak Life Insurance (except for another Term plan) provided there are at least 5 years before cover ceases. 4. In case you forget to pay your premium by the due date, you are entitled to a grace period of 30 days from the date of unpaid premiums. 5. In case of a financial emergency, you have the option to surrender the policy provided you have taken the single premium payment option "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.

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 rider is equal to the basic sum assured (subject to a maximum of Rs.10 lakhs).

Permanent Disability Benefit: This benefit can be added to your basic life insurance policy to provide financial support in case of disability due to an accident. The amount payable under this benefit would be paid out as an annuity. The maximum

permanent disability benefit that you can avail of is equal to the basic sum assured (subject to a maximum of Rs.10 lakhs). Critical Illness Benefit: This benefit can be added to your basic life insurance policy to provide financial support in the event of a medical emergency. On the 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.

"What do you receive on maturity of the policy?" Since this is a pure risk cover plan, there are no maturity benefits.

"What happens in the event of death of the life insured?" In the event of death during the term of the policy, the beneficiary would receive the sum assured. "Are there any Tax Benefits?" Section 80C, 10(10D) of Income Tax Act would apply. Premiums paid for Critical Illness Benefit qualify for benefits under Section 80D. These benefits are as per the currently prevailing tax regulations and you are advised to consult your tax advisor for details.

"How does this plan work?"

To explain, how his plan works. Mr. Sanjay Gupta, a 30-year-old male, decides to buy the Kotak Term Plan for a sum assured of Rs.10,00,000 for a 10 year term. The annual premium that Mr.Gupta pays

is Rs.3,747 annually. In the event of his unfortunate death during the next ten years, his family would receive Rs.10,00,000.

Kotak Capital Multiplier Plan It is the only plan of its kind that allows you to enjoy returns even beyond maturity. You can look at it as a super endowment plan that offers bonuses every year,offers you the facility to increase your investment and it also offers the facility to withdraw your money,as and when you want to,over a 15-year period post-maturity.

Why you should invest in Kotak Capital Multiplier Plan? If you are looking for an investment plan for your child and want a flexible money-back plan that gives you the power to decide the amount and time of withdrawls. If you are planning for your retirement and require a plan that allows you to withdraw any amount as per your need and at the same time invests your money prudently to get you bonuses on the balance in your account. If you think that from yime to time you will have extra cash, which you would like to invest in an instrument which is safe and which will get you attractive returns. Advantages Freedom of extending the policy term beyond the maturity date Get a free ATM card to withdraw your maturity proceeds with ease. Continue to earn tax free returns after maturity Combine the benefit of insurance and long term investment. Earn bonuses on the plan

Make lump sum injections Can be adopted as a pension plan where regular tax free income can be achived.

OtherFeatures In case you miss your premium payment, Automatic Cover Maintenance facility will ensure that your insurance cover is in force. This policy is available after 3 completed years You can avail of a loan facility from kotak life Insurance against you policy You may opt for early surrender due to medical reasons and there will be no surrender charges applicable. You can choose from following riders: Term/Preferred Death Benefit Accidental Death Benefit Permanent Disability Benefit

KOTAKS UNIT LINK INSURANCE PLANS

KOTAK SMART ADVANTAGE

Make every rupee work for your happiness In this policy, the investment risk in the investment portfolio is borne by the policyholder. Why should you invest in Kotak Smart Advantage?

Every step in your life brings with it new learnings. You are determined to make the best of it, so that you can look forward to a great future. How you shape your tomorrow depends greatly on how you build on your today. Kotak Life Insurance introduces Kotak Smart Advantage, a great combination of investment with insurance, to put your savings to work today. It is a market linked plan with 100% premium allocations helping you accumulate wealth systematically, over the long-term. Key Highlights

Guaranteed returns of upto 275% of your first year premium at maturity Assured bonus additions at regular intervals during the policy term to enhance your fund value 100%1 allocation of your premiums from second year onwards to maximize your earnings potential A unique fund offering you the maximum opportunity for growth

Charges Premium Allocation Charge The first premium contributes towards guaranteeing you with the assured addition advantage and is not allocated to the investment funds. From year 2 onwards, an allocation charge as a percentage of the premium received is levied. The net premiums willl be then allocated at the NAV prevailing on the date of receipt of the premiums.

Fund Management Charge To manage your money efficiently, an annual charge is levied as a percentage of the fund value and is adjusted in the Net Assets Value. The charges for the available fund options are as below: Dynamic Bond Fund 1.2%, Dynamic Floor Fund 1.75% and Opportunities Fund 2.0%

KOTAK FLEXI PLAN Your Finances. The way you need It comes to you with the option of investing in six professionally managed funds,allowing you to allocate your investment in a combination of one or more funds,switch between them and take charge of your investments. The plan aims to earn efficient returns over the long term and helps you plan for your financial goals ,with the comfort of a Guaranteed Maturity Value. More importantly,it ensures that your loved ones are protected,if any unfortunate events were to take place_ _ _ _ _ _a plan that gives you complete control. Why should you invest in Kotak Flexi Plan? You want a comprehensive long term solution for managing your finances. You want insurance to be an important part of you portfolio to protect your loved ones. You are cautious with investment in the equity markets due to the fear of loss of capital. You think that financial concepts require a lot of time to grasp and are probably best left to the experts. How does this plan work? Decide the amount of savings (premium) you would make each year Decide the term of the policy depending on the goals that you have in mind.

Choose the fund options to balance your risk profile and tenure of investment. Opt for any of the optional rider benefits to enhance flexibility and boost the lifestyle benefits of your plan.

Advantages Manage your need for investment and insurance with a single plan. Enjoy the potential of high returns without fear of loss of capital with a Guaranteed Maturity Value. Choose the flexibility in premium payment limited premium payment option and full term payment option. Enjoy tax free switching across fund categories Access your accumulated corpus,when in need

KOTAK HEADSTART CHILD PLAN Every child is different. Each has their own set of dreams and aspirations. As a parent you would like to provide your child with all the building blocks that could develop his or her potential to the fullest. This could mean extra coaching or tuition for talented children, special training or equipment for natural athletes or professional training for born singers. Headstart Child Plans - a specially tailored, cost-effective plan, aims to give your children the financial means to pursue his or her dreams and live them. The Head start Advantage:

Choice of 2 plan variants

o o

Future Protect Assure Wealth

Maximizes wealth while providing protection Joint life option Save for 2 children with one plan

Additional bonus units Flexible Withdrawal

How do I apply for this Plan? Decide the amount you will save regularly to secure your childs future,i.e; the Regular Annual Premium. Decide the term of the policy depending on goals for your child(higher education,marriage etc)that you have in mind. Select your fund options. Choose the optional benefits.

Eligibility Entry age Limited premium Payment Term Maturity Age Min-18yrs 3-10yrs Max-70yrs Min-18yr Max-60yrs

KOTAK SAFE INVESTMENT PLAN

KSIP is a unit linked plan that combines the benefit of insurance and capital market returns into one, this plan from the stable of Kotak Life Insuance is a true reflection of the companys essence; innovation that will benefit the investor. Why should you invest in Kotak Safe Investment Plan? If you have never invested in the capital markets,for the fear of loss of capital, With kotak safe investment plan, you need not to worry about losing your capital as you have the downside risk protected by way of the Guaranteed Maturity Value. If you have been a investor in debt markets, you could switch a portion of your funds to equity markets via Kotak Safe Investment. This 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 protwect the downside risk in a bear market by investing a portion of your funds in the Kotak Safe Investment Plan. What you are essentially doing is that while you enjoy equity returns, your money is protected from abysmal lows and markety vagaries by way of Guaranteed Maturity Value. Advantages Enjoy unlimited upside from capital markets with a downside protection guarantee on your maturity value. Flexibility in premium payment: limited premium payment option and full term payment option. Tax free switching across fund categories Increase contribution at will by way of top-up premiums

Tax Benefits

Section 80C, 10(10D) of the Income Tax Act,1961 would apply. Premiums paid for critical illness benefit (CIB) may qualify for a deduction under section 80D of the Income Tax Act,1961. Tax benefits are subject to change in tax laws. to consult your

KOTAK RETIREMENT PLAN (UL) How well you save and invest today will make all the difference tomorrow between having to work and choosing to work. There is no better time than the present to plan for what should be the best years of life - your retirement. By the time you retire, costs of living would have increased substantially making even the most basic commodities like milk and vegetables costlier by probably five times. Medical costs would have doubled or more. An ideal retirement solution is the one that gives you complete flexibility and peace of mind, not only while you save for your retirement but also after you retire. To help you plan towards the golden years of your life, we present to you the Kotak Retirement Plan (Unit-Linked). An investment plan designed to secure your future; it assures that even though you have stopped working, your income does not. It is offered to you in three versions Regular Premium, With Cover and Without Cover, in addition to a Single Premium version. The regular premium options come with the Kotak Seal of Guarantee@. These plans have been designed to ensure that your money earns you handsome returns, safe from the vagaries of the capital market, so that you can retire comfortably and securely. Please note that in these plans, the investment risk in the investment portfolio is to be borne by the policyholder. However, Kotak Life Insurance offers you a Basic Sum Assured/ Guaranteed Maturity Value on the Regular Premium versions of this plan to safeguard against the downside risk of falling markets

How does this .Plan work? Step 1: Choose from the Regular Premium With Cover and Without Cover Options or the Single Premium plan based on your need for protection from the harsh uncertainties of life and the investment markets Step 2: Decide the amount of savings (premiums) you may wish to allocate to building your retirement kitty and aiming for healthy cash flows in your golden years Step 3: Choose the retirement (vesting) age between the age of 45 and 75 years. Step 4: Select the fund options to balance your risk profile and the tenure of investment. Step 5: Opt for any of the rider benefits in the regular premium versions to enhance flexibility and boost benefit

BUSINESS STRATEGY OF KOTAK LIFE INSURANCE

Business growth strategy services include:

Brand creation and strategy Business innovation and transformation projects Corporate coaching and strategy workshops Customer relationship management Distribution and routes to customer audit and strategy Organistional change Organistional and business models Product development and product extension Strategy diagnostics Value-added process

Effective business marketing services on a strategic, operational and tactical level are essential to the development and growth of our company. At Kotak Life Insurance we can develop a business marketing strategy and implement growth plans tailored to the specific needs of your firm, assisting you in reaching your corporate goals and objectives. There are a range of solutions available from our marketing services team, who are on hand to advise and guide you through the marketing planning process. We will work closely with you to design a bespoke business marketing programme that has all the ingredients required to deliver effective results within your industry sector.

KOTAKs Business Marketing Services Includes

Marketing planning and budget allocation Business campaign evaluation Customer relationship management Marketing strategy Direct marketing campaigns Telemarketing Lead generation campaigns Marketing audits and analysis Media selection, scheduling and buying Marketing training and coaching Business intelligence and marketing research Segmentation, positioning and targeting Marketing strategy workshops

What makes KOTAKs business marketing services different? Our team members offer expertise not only within their chosen discipline, but within the insurance, professional, and financial services sectors. These key elements mean that we only recommend tactics for your business that have been proven to work within your sector and with your target audience. View our case studies to see how weve helped our clients to develop and implement their business marketing strategies. Reputation is one of the most valuable assets a company possesses. Good reputations must be protected and poor reputations must be improved. Integrated PR and communications look after your reputation by creating understanding and support among your key stakeholders be they clients, prospects, employees, potential recruits, business partners and influencing opinions about your organization.

Marketing Strategy of Kotak Life Insurance

There are various techniques which are followed by KOTAK Life Insurance in their company. Introduction of innovative products and services focusing on targeted customer segment. Use the concept of CRM & develop relationship with customers to retain the existing customer and make new customers Availing the products and services at low cost and with short times Insurance players have to focus on employees by focusing on their skills and motivating them for continuous improvements in process capabilities, quality and response times. Taking the help of information technology, database and systems in an optimum manner.

Pricing Method Followed By Kotak Life Insurance

In service industry marketers can outsmart competition only making creative offerings to the market. Thus the pricing offer should be the outcome of this creativity. A marketing manager while setting a final price must find out an approximate price level to use the reasonable starting point. The common approaches which help to find the approximate price level in service sector are: Cost oriented Demand oriented

In KOTAK Life Insurance pricing policy has to consider a variety of factors and therefore the scope of choice is remarkably wide.

Cost Oriented Pricing It refers to setting prices on the basis of an understanding of their costs. It offers the least scope of creative pricing. It is mainly an activity which is internally controlled. Pricing related to basic cost depends on the buying skills of the producer. Most of the creative content in cost pricing related to differential production costing. Demand Oriented Pricing It is a pricing strategy approach whereby a firm sets prices after researching consumer desires and ascertaining the range of pricing strategy that may be implemented with differential pricing tactics. The product or service is priced according to the benefits perceived by the customers.

Distribution Channel Followed By KOTAK Life Insurance

There are various alternatives available for distributing services in the market. Which are as follows: Franchising Electronic Channels Agents and Brokers

Kotak Life Insurance, follows the method of distribution through agents and brokers. As they consider these two are the best channel for their company to expand. The major part of services business is still transactes through agents and brokers. These channels of distribution are discussed below:

Agents Agents are wholesalers that do not take title of products. They work for commission or fee as payment for their service and are comprised of manufacturers/service providers agents, selling agents and commission merchants.

Brokers Brokers do not have any affiliation with any particular service provider. They specialize in certain areas and bring buyers and seller together to negotiate the contract.

Advantages of using Agents/Brokers The services become widely represented and accessible The selling and distribution costs are reduced The marketing strategies can be tailored to suit the local markets as agents/brokers possess expert knowledge of local conditions. Those involved in providing services possess special knowledge and skill and therefore assemble the package of services from the suppliers for the service buyers. They can provide services of the customers choice and they represent multiple providers of services.

Promotional Techniques Followed By KOTAK Life Insurance

In communicating the services to the customers promotion element of the services product marketing mix plays a vital role. This also helps in communicating services to the other key relationship markets. Promotion is a descripitive term for the mix of communication activities which service organisaton carry out in ordre to influence those publics on whom their sales depend. Generally a mix of the following elements is used for promotion of services: Advertising Personal selling Sales promotion Publicity Public relations Word of mouth Direct mail Tele-marketing E-marketing

The method generally followed by Kotak Life Insurance is Advertising & Personal Selling

Advertising Various techniques are used by advertisres to promote services. Because services are intangible, they tend to be more difficult to advertise than goods. The common technique used by Kotak Life Insurance is Print Media. One of the best examples of Print Media is as follows. MUMBAI: Kotak Mahindra Old Mutual Life Insurance Ltd (Kotak Life Insurance) has launched its new ad campaign. Woven around the theme of making a "smart decision," the new ad reinforces the brand promise of keeping customers Zindagi se ek kadam aagey (one step ahead of life), and is based on the premise that smart financial planning is the key to staying ahead. The campaign is triggered by the company's new product, Kotak Smart Advantage, a plan that ensures that every rupee invested by the customer is smartly used for long-term wealth creation, says the company in a release. The new campaign has been dubbed into 6 regional languages, and has been taken across multiple media platforms - TV, print, outdoor and the internet. A radio campaign is also in the pipeline. Objective -Targeted at modern, forward-looking new age men and women, the new TVC features a man telling the audience that all his family's important decisions have been taken jointly with his wife - whether it is regarding children's education or financial planning for the future.

RESEARCH OBJECTIVE
The report gives the brief background of the sector and proceeds to highlight the short comings of the existing setup and players. The benefits of liberalized sector are enumerated.. The report also tries to identify the market potential for insurance products and the strategy that can be employed to exploit the same. The stress is also given on knowing the awareness level of general public.

RESEARCH METHODOLOGY
To conduct the market research first of all it is necessary to create a research design. A research design is basically a blue print of how a research is to be conducted, it may include; 1. 2. 3. 4. Choosing the approach Determining the types of data needed. Locating the source of data. Choosing a method of data.

RESEARCH DESIGN
Basically there are 3 types of approaches used during the any research : 1. 2. 3. Exploratory Descriptive Experimental.

During this research Descriptive and Exploratory approach is taken into consideration because of the availability of relevant information to describe the relationships between the marketing problem and the available information. TYPES OF DATA USED. Both primary and secondary data is used in the research

Data Collection Methods

To conduct the market research the data is collected by two source.

SECONDARY DATA Secondary data is one which already exist and is collected from the published sources. The sources from which secondary data was collected are: Newspapers and Magazines like Economic Times, Insurance Times, and Insurance Post. Internet

PRIMARY DATA The primary sources of data refer to the first hand information Primary data is collected during the survey with the help of Questionnaires.

FINDINGS
Opening up of the sector will ensure a larger flow of funds in 2 ways. More investment will take place in the sector. Further through competition, a larger portion of savings will find its way into infrastructure through insurance companies. This will change the image of India being a highly under- insured nation.

After the nuclear tests, the govt. needs to hold out a hand of friendship to the west to achieve aims related to national security. Insurance will be a visible gesture. From the point of view of the capital markets opening up of the insurance will have a bullish impact. In the near term, insurance is highly visible industry & the fact that inspite of motivated opposition. In the medium terms insurance companies are traditionally major players in stock markets. KOTAK Life Insurance make substantial investment in stocks. They invest in stocks because they get a relatively steady earnings and strong assets base. The opening up of the insurance companies by the govt. of India to private & global players will lead to phenomenol growth in terms of number of new players & new products & services.

However, it is critical that when we open the doors for insurance we protect our own national long-term interests.

CONCLUSION
There is a fear that there will be flight of capital from India; to ensure against this we should stipulate that capital and dividend repatriation should start after some years. The other fear is that the foreign insurers will cream the market. A level playing field between foreign companies should be ensured. The biggest fear is ownership, i.e. foreign insurers do not control the management of the insurance company through backdoor. To prevent this we should ensure that the day-to-day management is with the Indian partner & foreign holdings do not exceed he ceiling laid down by law. Like in case of KOTAK Life Insurance Kotak Mahindra is having the share of 84% in the company and the rest 26% is owned by OLD mutual. Initially, LIC would have considered the largest insurance company but now there are other private insurance company available in the market. One of them is KOTAK Life Insurance. This company is one of the rising company in the field of insurance sector. Although they have to face a tough competition with other private players & Public players. One of the toughest competition of this company is with LIC leading insurance company & the second tough competition is with ICICI Prudential another leading company in this sector. KOTAK Life Insurance can compete with all these companies by making good services. They should have to come up with innovative products which attracts the customer. They would also have to to use some advertising strategies for the promotion of their product.

REFERENCES

Books Referred
1. INSURANCE (Fundamentals, Environment & Procedure) By B.S. BODOLA 2. INSURANCE & RISK MANAGEMENT By Dr P K GUPTA 3. Marketing Management By V.S.RAMASWAMY & S.NAMAKUMARI 4. Marketing of Services By Dr S.L.GUPTA & V.V.RATNA 5. Service Marketing By M.K.RAMPAL 6. Research Methodology By C.R.KOTHARI

Websites Referred
1. www.my kotaklife.com 2. www.google.com 3. www.altavista.com