Customer Satisfaction regarding kotak mahindra life insurance

7/29/2019 Customer Satisfaction regarding kotak mahindra life insurance

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[TITLE OF DISSERTATION]

Customer Satisfaction regarding the Kotak Mahindra Life Insurance

Directorate of Distance Education

Submitted to Lovely Professional University

In partial fulfillment of the requirements for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by: Supervisor:

Name of the Student : Vikas Chugh Project Guide: Malika Thakral

Registration Number : 21000363 Designation

Directorate of Distance Education

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA

(Year of completion)

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TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled Customer satisfaction regarding the Kotak

Mahindra Life Insurance carried out by Mr.Vikas Chugh , S/o Ramesh Kumar Chugh has

been accomplished under my guidance & supervision as a duly registered MBA student of

the Lovely Professional University, Phagwara. This project is being submitted by him/her in

the partial fulfillment of the requirements for the award of the Master of Business

Administration from Lovely Professional University.

His/ her dissertation represents his/ her original work and is worthy of consideration for the

award of the degree of Master of Business Administration.

___________________________________

(Name & Signature of the Project Guide)

Designation:

Date:

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DECLARATION

I, "Vikas Chugh, hereby declare that the work presented herein is genuine work done

originally by me and has not been published or submitted elsewhere for the requirement of a

degree programme. Any literature, data or works done by others and cited within this

dissertation has been given due acknowledgement and listed in the reference section.

______________________

(Student's name & Signature)

_______________________

(Registration No.)

Date:__________________

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ACKNOWLEDGEMENT

Perseverance, inspiration and motivation have always played a great role in the success of

any venture. At this level of understanding it is often difficult to understand the wide

spectrum of knowledge without proper guidance and advice.

This report entitled "Customer satisfaction regarding Kotak Life Insurance, of Ludhiana

Unit for fulfillment of M.B.A program.I extend my sincere gratitude to Mr.Mandeep Singh (Branch Manager) of kotak life

insurance for granting me the opportunity to undergo my study in this organization and

continuously guiding me throughout the span of my study.

I am also thank full to Lect. Malika Thakral who have given me their full cooperation and

devoted their valuable time for rendering me their needy services and guidelines during the

training period. With those sincere and precious efforts, I have been able to complete my

practical training successfully.

WITH SINCERE THANKS

Vikas Chugh

Reg. no.21000363

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Chapter-1

Executive Summary:

Life insurance is a form of insurance that pays monetary proceeds upon the death of the

insured covered in the policy. Essentially, a life insurance policy is a contract between the

named insured and the insurance company wherein the insurance company agrees to pay an

agreed upon sum of money to the insured's named beneficiary so long as the insured's

premiums are current.

With a large population and the untapped market area of this population

insurance happens to be a very big opportunity in India. Today it stands as a business

growing at the rate of 15-20% annually. Together with banking services, it adds about 7

percent to the countrys GDP. In spite of all this growth statistics of the penetration of the

insurance in the country is very poor. Nearly 80% of Indian populations are without life

insurance cover and the health insurance. This is an indicator that growth potential for the

insurance sector is immense in India.

It was due to this immense growth that the regulations were introduced in

the insurance sector and in continuation Malhotra Committee was constituted by the

government in 1993 to examine the various aspects of the industry. The key element of the

reform process was participation of overseas insurance companies with 26% capital. Creating

a more competitive financial system suitable for the requirements of the economy was the

main idea behind this reform.

Since then the insurance industry has gone through many changes. The

liberalization of the industry the insurance industry has never looked back and today stand as

one of the most competitive and exploring industry in India. The entry of the private players

and the increased use of the new distribution are in the limelight today. The use of new

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distribution techniques and the IT tools has increased the scope of the industry in the longer

run.

Insurance is the business of providing protection against financial aspects of

risk, such as those to property, life health and legal liability. It is one method of a greater

concept known as risk management which is the need to mange uncertainty on account of

exposure to loss, injury, disadvantage or destruction.

Classification of insurance:

The insurance industry in India can broadly classify in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

INTRODUCTION ABOUT KOTAK LIFE INSURANCE

Company History

Old Mutual has a history of more than 150 years as a South African based mutual society

prior to its public listing in 1999. On this page you can access some of our historical

highlights from 1845 to the present, pre- and post our demutualisation.

MARKET SHARE

Kotak Mahindra Group in India has market share of 2.2%. It has ability to enter in the

adjacent market, which will help it to grow further in financial sector of India. Kotak

Mahindra is a financial firm in India fulfilling the financial need of the public. Kotak

Mahindra Group came into being in 1985 as Kotak Capital Management Finance Limited and

the name changed to Kotak Mahindra Finance ltd. in 1986 when Harish Mahindra and

Anand Mahindra took it. From Bill discounting activity in 1986 it had entered into the Lease

and Hire Purchase Market in 1987. The Auto Finance division was started in 1990. In the

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year 1998 Kotak Mahindra ventures into mutual Fund Market with the launch of Kotak

Mahindra Asset Management Company. It got tied up with Old Mutual plc. and the Life

Insurance Business in the year 2000. Year 2003 saw the conversion of Kotak Mahindra

Finance Ltd. into a Commercial Bank. It is the first Indian Company to do so. In 2004 it

launched a private equity fund named India Growth Fund. Like all other years the 2006 was

also very fruitful for this group as it bought 25% stake held by Golden Sachs in Kotak

Mahindra Capital Company and Kotak Securities.

The services offered by Kotak Group are:

o Bank

o Life Insurance

o Mutual Funds

o Securities

o Car Finance

o Kotak Reality Fund

o Kotak Private Equity

o Institutional Equities

o Investment Banking

o Kotak Mahindra International

o Commercial banking

o Stock Broking

o Financial need of individuals and corporate are taken care by Kotak Mahindra Bank

Review of literature

1. Doherty and Dionne , found that,some Current Insurance Markets Are Troubled

by the Presence of Systematic Risk Or by the Inability of the Parties to Specify the

Distribution for Aggregate Loss. Such Circumstances Partly Characterise the Topical

"Liability Insurance Crisis". We Compare the Performance of Alternative Vehicles for

Risk Sharing Under These Circumstances. Specifically, We Show That Mutals Appear to

Outperform Stock Insurance Companies When There Is Undiversifiable Risk.

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2. Pauly and Hirth , propose a guaranteed renewability (GR) insurance in which a

sequence of premiums would enable insurers to break even and would be chosen by both

low- and high-risk buyers, whether or not they had suffered a loss. The premium

schedule would continually decline over time, as the insurer collects more information to

determine who the low-risk individuals leave for the spot market. The concluding portion

of the article discusses the limitations of a GR policy in the health and environmental

liability area, the most serious being instability in estimates of underlying loss trends.

Copyright 1995 by Kluwer Academic Publisher

3. Zheng, Liu and Deng , this paper makes a new assessment and comparison of

insurance growth levels of certain countries as well as certain economic groups, and

further discusses the policy implications. The main conclusions of this paper are as

follows. First, it is necessary to have a new recognition of the international insurance

growth pattern: the relative level of insurance growth in developed markets has

declined as compared with that indicated by traditional indicators, and the relative

level of insurance growth in developing markets has increased.

4. Vuorinen, Jarvinen and Lehtine , explained, the widely used strategy to cope with

the dangers of foreign investment by hedging against potential losses is political risk

insurance. All multinational corporations are subject to political risk perils.Broadly

speaking, there are six different types of political risk: confiscation, expropriation and

nationalization; contract repudiation and frustration; unfair regulatory environment;

currency inconvertibility; contingency; and war risk. Similarly, policies available can

be defined according to these six categories.

5. Garcia, Camino and Molero ,in this paper offers a diagnosis of the current stage

of development of insurance firms operating in Belgium and Spain according to the

differential patterns they exhibit in the adoption of the concept of marketing. The

theoretical approach we use here has been defined in order to include three critical

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dimensions: the organizational process that encompasses the marketing adoption concept;

the extent to which differential marketing patterns are related to business and economic

performance; and finally to identify the influence of managerial decision-making and their

planned patterns of strategic behavior in the development and ongoing process of

marketing adoption.

Objective:

The main of the present study of is accomplish the following objective.

1. To know about brand awareness of Kotak Life Insurance and customers preference

about Kotak Life Insurance.

2. According the market survey come know about how much potential of insurance

market in our city.

3. Training aims at recruiting maximum number of Life Advisors and to Sell the

maximum policies for the company and bring the business for the company which

ever is going at the particular point of time.

SURVEY AND RESEARCH

TITLE:

To study the customer satisfaction regarding of kotak mahindra life insurance.

TITLE JUSTIFICATION:

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The above title is self explanatory. The study deals mainly with studying the buying pattern

in the insurance industry with a special focus on Kotak life Insurance. The various segments

of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels etc will

also studied.

SIGNIFICANCE OF THE STUDY:

This is a limited study which takes into consideration the responses of 100 people. This data

can be extrapolated to take in the trends across the industry. The significance for the industry

lies in studying these trends that emerge from the study. It is a rapidly changing and evolving

sector. People are only beginning to wake up to its vast possibilities. A study like this can

attempt to guide the future of the industry based on current trends.

SCOPE OF THE STUDY:

The data for the research was collected from different zones of Ludhain City and .

PRODUCT SCOPE:

The research was conducted to find out about the preference and perception of the target

population for different insurance products. The investment pattern and strategies were

discovered through this research. Also the awareness about Kotak Life Insurance was also

found out.

TARGET POPULATION:

The target population included most of the categories of people like Service class, business

class, students, house-wives etc.

RESEARCH DESIGN:

The research is primarily both exploratory as well as descriptive in nature. The sources of

information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews were conducted to

collect the customers perception and buying behavior, through the questionnaire.

DATA COLLECTION:

Primary Data:

In Primary data, structured questionnaire was made and the target respondents were asked to

fill the questionnaire. Thus a large amount of data was collected.

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Secondary Data:

Secondary data was collected from various sources such as internet, news papers,

publications and financial magazines.

QUESTIONNAIRE DESIGN:

Objective was to make respondents little familiar with the context of the questions. This was

also aimed at collecting data about the sample profile thatll be subsequently analyzed so that

the scope of the project is fully explored. Initially, a rough draft was prepared keeping in

mind the objective of the research. A pilot study was done in order to know the accuracy of

the Questionnaire. The final Questionnaire was arrived only after certain important changes

were done. Thus my sampling came out to be judgmental and convenient.

CONCLUSIONCONCLUSION

After overhauling the all situation that boosted a number of Pvt. Companies associated with

multinational in the Insurance Sector to give befitting competition to the established

behemoth Kotak in private sector, we come at the conclusion that

There are very tough competitions among the private insurance companies on the

level of new trend of advertising to lull a major part of Customers.

Kotak is not left behind in the present race of advertisement.

The entry of more Pvt. Players in the Insurance Sector has expanded the product

segment to meet the different level of the requirement of the customers. It has brought

about greater choice to the customers.

Kotak has vast market and very firm grip on its traditional customers and monopoly

of life insurance products.

IRDA is also playing very comprehensive role by regulating norms mandating to private

players in this sector, that increases the confidence level of the customers to the private

players.

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Suggestions

The study has provided with the useful data from the respondents. There has a lot to be

recommended. Following are the recommendations:

There is a need for better promotion for the investment products & services. The

bank should advertise its products through television because it will reach to the

masses.

More returns should be provided on Insurance plans.

As the bank provides the Insurance facility to its customers. It should provide this facility by

tie up with the other Insurance organizations as well. The main reason is that, the entire

customers do not want Insurance of only one company. They should have choice while

selecting a suitable Insurance plans. This will definitely add to the goodwill & profit for the

bank.

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Table of Contents

13

Chapter Particulars Page No.

1 Introduction to subject

1.1 Customer satisfaction

1.2 Insurance

1.3 Classification of insurance

1.4 History of Insurance sector in India

1.5 IRDA

1.6 Review of Literature

15

16-17

18-20

20-22

22-23

23-25

2 Introduction of KOTAK LIFE INSURANCE

2.1 About Kotak Life Insurance

2.2 Vision and Mission

2.3 Profile of Organization

2.4 Recent Achievements

2.5 Product range of company2.6 Market share of company

2.7 SWOT Analyses

25-27

28

29

30-32

32-3435

36-37

3 Objectives & Research Methodology

3.1 Objective

3.2 Survey and Research

3.3 Sources of Data

3.4 Limitations

39-40

41

42

42-43

4 Data Presentation, Analysis, and Interpretation 44-55

5 Summary

5.1Conclusion

5.2Suggestion

56-57

57-58

6 Refrences 59

7 Appendix

7.1 Financial Statements

7.2 Questionnaire

60-69

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Chapter-1

Introduction to Subject:

1.1 Customer Satisfaction:

Customer satisfaction, a term frequently used in marketing, is a measure of how products and

services supplied by a company meet or surpass customer expectation. Customer satisfaction

is defined as "the number of customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services (ratings) exceeds specified satisfaction

goals." In a survey of nearly 200 senior marketing managers, 71 percent responded that they

found a customer satisfaction metric very useful in managing and monitoring their

businesses.

It is seen as a key performance indicator within business and is often part of a Balanced

Scorecard. In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of

business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects. They focus

employees on the importance of fulfilling customers expectations. Furthermore, when these

ratings dip, they warn of problems that can affect sales and profitability. These metrics

quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-

mouth marketing, which is both free and highly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be

able do this, firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or service

has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction.

When customers have high expectations and the reality falls short, they will be disappointed

and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for

example, might receive a lower satisfaction rating than a budget moteleven though its

facilities and service would be deemed superior in 'absolute' terms."

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http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Balanced_Scorecardhttp://en.wikipedia.org/wiki/Balanced_Scorecardhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Balanced_Scorecardhttp://en.wikipedia.org/wiki/Balanced_Scorecard


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1.2 Insurance:

Life Insurance:

Life insurance is a form of insurance that pays monetary proceeds upon the death of the

insured covered in the policy. Essentially, a life insurance policy is a contract between the

named insured and the insurance company wherein the insurance company agrees to pay an

agreed upon sum of money to the insured's named beneficiary so long as the insured's

premiums are current.

With a large population and the untapped market area of this population insurance happens to

be a very big opportunity in India. Today it stands as a business growing at the rate of 15-

20% annually. Together with banking services, it adds about 7 percent to the countrys GDP.

In spite of all this growth statistics of the penetration of the insurance in the country is very

poor. Nearly 80% of Indian populations are without life insurance cover and the health

insurance. This is an indicator that growth potential for the insurance sector is immense in

India.

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It was due to this immense growth that the regulations were introduced in the insurance

sector and in continuation Malhotra Committee was constituted by the government in 1993

to examine the various aspects of the industry. The key element of the reform process was

participation of overseas insurance companies with 26% capital. Creating a more competitive

financial system suitable for the requirements of the economy was the main idea behind this

reform.

Since then the insurance industry has gone through many changes. The liberalization of the

industry the insurance industry has never looked back and today stand as one of the most

competitive and exploring industry in India. The entry of the private players and the

increased use of the new distribution are in the limelight today. The use of new distribution

techniques and the IT tools has increased the scope of the industry in the longer run.

Insurance is the business of providing protection against financial aspects of risk, such as

those to property, life health and legal liability. It is one method of a greater concept known

as risk management which is the need to mange uncertainty on account of exposure to loss,

injury, disadvantage or destruction.

The business of insurance is related to the protection of the economic values of assets. Every

asset has a value. The asset would have been created through the efforts of the owner. The

asset is valuable to the owner, because he expects to get some benefit from it. The benefit

may be an income or in some other form.

In India, insurance began in 1818 with life insurance being transacted by an English

company. The first insurance company was the Bombay mutual assurance society ltd, formed

in 1870 in Mumbai. Insurance helps to reduce the consequences of adverse situation.

Insurance is the method of spreading and transfer of risk. The fortunate many who are

exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the

assets but only compensates the economic or financial loss.

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In insurance the insured makes payment called premiums to an insurer, and in return is able

to claim a payment from the insurer if the insured suffers a defined type of loss. This

relationship is usually drawn up in a formal legal contract.

Insurance companies also earn investment profits, because they have the use of the premium

money from the time they receive it until the time they need it to pay claims. This money is

called the float. When the investments of float are successful they may earn large profits,

even if the insurance company pays out in claims every penny received as premiums. In fact,

most insurance companies pay out more money than they receive in premiums. The excess

amount that they pay to policyholders is the cost of float. An insurance company will profit if

they invest the money at a greater return than their cost of float.

An insurance contract or policy will set out in detail the exact circumstances under which a

benefit payment will be made and the amount of the premiums.

Marine insurance is the oldest type of insurance and one of the earliest records of a marine

policy relates to a Mediterranean voyage in 1347. This was followed by life insurance some

300 years later. Fire insurance, however, did not begin until after the Great fire of London in

1666. In India all the three insurance developed as under

Fire Insurance

Marin insurance

Life Insurance

1.3 Classification of insurance:

The insurance industry in India can broadly classify in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:-

Traditionally, life insurance used to provide financial protection to your family and

dependents in the event of any unforeseen event or your untimely death. But nowadays, life

insurance has become synonymous with savings, wealth generation and protection. Life

insurance companies-these days-provide plans through which you can not only secure the

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financial future of your dependents in the event of death but also build wealth for them and

be financially secure from eventualities such as disease and disability.

In 1818 British introduced to India, with the establishment of the oriental life

insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay

mutual life assurance society was set up in 1870. The life insurance act, 1912 was the first

statuary measure to regulate the life insurance business in India. In 1983, the earlier

legislation was consolidated and amended by the insurance act, 1938, with comprehensive

provisions for detailed effective control over insurance. The union government had opened

the insurance sector for private participation in 1999, also allowing the private

Companies to have foreign equity up to 26%. Following the opening up of the

insurance sector, 12 private sector companies have entered the life insurance business.

Different Types of Life Insurance Plans:

Traditional life insurance plans:

Traditional life insurance plans, also known as non-unit linked insurance plans, ensure that

the majority of the investments made by the policyholders are in to safe debt instruments.

These plans are ideal for risk-averse investors as they provide assurance of returns to a large

extent.

Unit Linked Insurance Plans (ULIPs):

ULIPs, also known as market-linked life insurance plans, allow for investments made by the

policyholders to get exposed to equities. ULIPs are suited for customers who aim for wealth

creation over a long term.

Benefits of life insurance:

Life insurance is required because of the following factors -

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Life insurance takes care of those who are financially dependent on you even when you are

not around to look after them.

Retirement planning takes care of your retirement, as there is no guarantee of a consistent

income post retirement.

The expenses you may incur in future will keep increasing due to inflation, and thus even a

fluctuation in your income may lead to a compromised lifestyle.

Savings plan enables individuals to secure their financial future by helping you to get

attractive returns.

2) Non-life (general) Insurance:-

Triton insurance co. ltd was the first general insurance company to be established in India in

1850, whose shares were mainly held by the British. The first general insurance company to

be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in

1907. There emerged many a player on the Indian scene thereafter. The general insurance

business was nationalized after the promulgation of General Insurance Corporation (GIC) OF

India undertook the post-nationalization general insurance business.

1.4 Brief History of the Insurance Sector in India

The business of life insurance in India in its existing form started in India in the year 1818

with the establishment of the Oriental Life Insurance Company in Calcutta.

The story of insurance is probably as old as the story of mankind. The same instinct that

prompts modern businessmen today to secure themselves against loss and disaster existed in

primitive men also. They too sought to avert the evil consequences of fire and flood and loss

of life and were willing to make some sort of sacrifice in order to achieve security. Though

the concept of insurance is largely a development of the recent past, particularly after the

industrial era past few centuries yet its beginnings date back almost 6000 years.

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Life Insurance in its modern form came to India from England in the year 1818. Oriental Life

Insurance Company started by Europeans in Calcutta was the first life insurance company on

Indian Soil. All the insurance companies established during that period were brought up with

the purpose of looking after the needs of European community and these companies were not

insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal

Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were

being treated as sub-standard lives and heavy extra premiums were being charged on them.

Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance

company in the year 1870, and covered Indian lives at normal rates. Starting as Indian

enterprise with highly patriotic motives, insurance companies came into existence to carry the

message of insurance and social security through insurance to various sectors of society.

Bharat Insurance Company (1896) was also one of such companies inspired by nationalism.

The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United

India in Madras, National Indian and National Insurance in Calcutta and the Co-operative

Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance

Company took its birth in one of the rooms of the Jorasanko, house of the great poet

Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi

Life (later Bombay Life) were some of the companies established during the same period.

Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the

Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance

Companies Act 1912 made it necessary that the premium rate tables and periodical valuations

of companies should be certified by an actuary. But the Act discriminated between foreign

and Indian companies on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From

44 companies with total business-in-force as Rs.22.44 Crore, it rose to 176 companies with

total business-in-force as Rs.298 Crore in 1938. During the mushrooming of insurance

companies many financially unsound concerns were also floated which failed miserably. The

Insurance Act 1938 was the first legislation governing not only life insurance but also non-

life insurance to provide strict state control over insurance business. The demand for

nationalization of life insurance industry was made repeatedly in the past but it gathered

momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the

Legislative Assembly. However, it was much later on the 19th of January 1956 that life

insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian

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companies and 75 provident were operating in India at the time of nationalization.

Nationalization was accomplished in two stages; initially the management of the companies

was taken over by means of an Ordinance, and later, the ownership too by means of a

comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the

19th of June 1956, and the Life Insurance Corporation of India was created on 1st September,

1956, with the objective of spreading life insurance much more widely and in particular to the

rural areas with a view to reach all insurable persons in the country, providing them adequate

financial cover at a reasonable cost.

1.5 The Insurance Regulatory and Development Authority (IRDA):

Insurance Regulatory & Development Authority is regulatory and development authority

under Government of India in order to protect the interests of the policyholders and to

regulate, promote and ensure orderly growth of the insurance industry. It is basically a ten

members' team comprising of a Chairman, five full time members and four part-time

members, all appointed by Government of India. This organization came into being in 1999

after the bill of IRDA was passed in the Indian parliament.

Powers and Functions of IRDA

It issues the applicants in insurance arena, a certificate of registration as well as

renewal, modification, withdrawal, suspension or cancellation of such registrations.

It protects the interests of the policy holders in any insurance company in the matters

related to the assignment of policy, nomination by policy holders, insurable interest,

and resolution of insurance claim, submission value of policy and other terms and

proposals in the contract.

It also specifies obligatory credentials, code of conduct and practical instructions for

mediator as well as the insurance company. Apart from this, it also defines the code of

conduct for the surveyors and loss assessors involved with the insurance business.

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One of the major functions of IRDA includes endorsing competence in the insurance

business. Apart from this, upholding and regulating professional organizations in

insurance and re-insurance business is also a major duty of IRDA.

IRDA is also entitled to for asking information, undertaking inspection and

investigating the audit of the insurers, mediators, insurance intermediaries and other

organizations related to the insurance sector.

It is also concerned with the regulation of the rates, profits, provisions and conditions

that may be offered by insurers in respect of general insurance business if it is not

controlled or regulated by the Tariff Advisory Committee.

It is also entitled to supervise the functioning of the Tariff Advisory Committee.

IRDA specifies the terms and pattern in which books of accounts are to be maintained

and statement of accounts shall be provided by insurers and other insurance

mediators.

Impact Of IRDA On Indian Insurance Sector

The creation of IRDA has brought revolutionary changes in the Insurance sector. In last 10

years of its establishment the insurance sector has seen tremendous growth. When IRDA

came into being; only players in the insurance industry were Life Insurance Corporation of

India (LIC) and General Insurance Corporation of India (GIC), however in last decade 23

new players have emerged in the filed of insurance. The IRDA also successfully deals with

any discrepancy in the insurance sector.

1.6 Review of literature

1. Doherty and Dionne , found that,some Current Insurance Markets Are Troubled by

the Presence of Systematic Risk Or by the Inability of the Parties to Specify the

Distribution for Aggregate Loss. Such Circumstances Partly Characterise the Topical

"Liability Insurance Crisis". We Compare the Performance of Alternative Vehicles for

Risk Sharing Under These Circumstances. Specifically, We Show That Mutals Appear to

Outperform Stock Insurance Companies When There Is Undiversifiable Risk.

2. Pauly and Hirth, propose a guaranteed renewability (GR) insurance in which a sequence of

premiums would enable insurers to break even and would be chosen by both low- and high-risk

23


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buyers, whether or not they had suffered a loss. The premium schedule would continually

decline over time, as the insurer collects more information to determine who the low-risk

individuals leave for the spot market. The concluding portion of the article discusses the

limitations of a GR policy in the health and environmental liability area, the most serious beinginstability in estimates of underlying loss trends. Copyright 1995 by Kluwer Academic Publisher

3. Zheng, Liu and Deng, this paper makes a new assessment and comparison of insurance

growth levels of certain countries as well as certain economic groups, and further discusses

the policy implications. The main conclusions of this paper are as follows. First, it is

necessary to have a new recognition of the international insurance growth pattern: the relative

level of insurance growth in developed markets has declined as compared with that indicated

by traditional indicators, and the relative level of insurance growth in developing markets has

increased.

4. Vuorinen, Jarvinen and Lehtine, explained, the widely used strategy to cope with

the dangers of foreign investment by hedging against potential losses is political risk

insurance. All multinational corporations are subject to political risk perils.Broadlyspeaking, there are six different types of political risk: confiscation, expropriation

and nationalization; contract repudiation and frustration; unfair regulatory

environment; currency inconvertibility; contingency; and war risk. Similarly, policies

available can be defined according to these six categories.

5. Garcia, Camino and Molero ,in this paper offers a diagnosis of the current stage

of development of insurance firms operating in Belgium and Spain according to the

differential patterns they exhibit in the adoption of the concept of marketing. The

theoretical approach we use here has been defined in order to include three critical

dimensions: the organizational process that encompasses the marketing adoption concept;

the extent to which differential marketing patterns are related to business and economic

performance; and finally to identify the influence of managerial decision-making and their

planned patterns of strategic behavior in the development and ongoing process of

marketing adoption.

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6. Pauly and Mark, in thispaper discuss the theoretical and empirical findings

concerning insurance reimbursement of patients or providers by insurers operating in

private markets or in mixed public and private systems. Most insurances other than health

insurance do not "reimburse"; instead they pay cash to insureds conditional on the

occurrence of a prespecified event. In contrast, health insurance ties the payment to

medical expenditures or costs incurred in some fashion, often making payments directly to

medical providers.

7. Janvry and Alain, explained the practice of mutual insurance is conditioned by two

types of transaction costs: "association" costs in establishing links with insurancepartners and "extraction" costs in using these links to implement insurance transfers.

Data on insurance-motivated water exchanges among households along two

irrigation canals in Pakistan show that households exchange bilaterally with

neighbors and family members but the majority exchange with members of tightly

knit clusters.

8. Fleurbaey and Bossert, analyze the equity properties of insurance premium

schemes where agents are partitioned into groups with different average accident

probabilities and each individual has to pay a premium according to the average

probability of the group to which it belongs. In particular,they examine the question

whether choosing finer partitions to define these groups generates more equitable

situations than coarser groups. Though it turns out that partitioning the agents into

finer groups can never be Lorenz dominated by the coarser partition, it cannot be

guaranteed that finer partitions represent improvements over coarser ones except in

very restrictive circumstances.

9. Sleet, explained that social insurance arrangements that are optimal from the

perspective of a utilitarian planner confronting a population of privately informed

agents frequently exhibit an "immiseration" property - with probability 1 an agent's

continuation utility will drift downwards to its minimal level. Thus, the ex ante

optimal provision of incentives implies severe ex post inequality and are time

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inconsistent. This paper introduces an additional friction: it assumes that the

utilitarian planner can not commit.

10. Bhattacharya, Goldman and Sood, explained that secondary life insurance markets

are growing rapidly. From nearly no transactions in 1980, a wide variety of similar

products in this market has developed, including viatical settlements, accelerated

death benefits, and life settlements and as the population ages, these markets will

become increasingly popular.

CHAPTER-2CHAPTER-2

Introduction of KOTAK LIFE INSURANCE

2.1 About Kotak Mahindra Old Mutual Life Insurance:

Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between Kotak

Mahindra Bank Ltd., its affiliates and Old Mutual plc. The company started operations in

2001, and strives to offer its customers outstanding value through high customer empathy,

consistent and benchmarked service and a suite of products that leverage the combined

prowess of protection and long term savings. The company covers over 4 million lives and is

one of the fastest growing insurance companies in India.

Established in 1985, the Kotak Mahindra Group is one of Indias leading financial services

conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Groups

flagship company, received a banking license from the Reserve Bank of India (RBI). With

this, KMFL became the first non-banking finance company in India to become a bank -

Kotak Mahindra Bank Limited.

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The Kotak Mahindra Group has a consolidated net worth of Rs 12,901 crore (approx US$ 2.5

billion) as on March 31, 2012. The group offers a wide range of financial services that

encompass every sphere of life. From commercial banking, to stock broking, mutual funds,

life insurance and investment banking, the group caters to the diverse financial needs of

individuals and the corporate sector. The group has a wide distribution network through

branches and franchisees across India, and international offices in London, New York,

California, Dubai, Abu Dhabi, Bahrain, Mauritius and Singapore

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2.2 Vision and Mission:

An uncommon bond. Strengthened by a common vision.Apart from common beliefs, values and objectives we believe in the vision of a better

tomorrow. It is this deep veneer of faith that has brought us together and fortified our bond.

The global Indian financial services brand

Our customers will enjoy the benefits of dealing with a global Indian brand that best

understands their needs and delivers customised pragmatic solutions across multiple

platforms. We will be a world-class Indian financial services group. Our technology and best

practices will be benchmarked along international lines while our understanding of customers

will be uniquely Indian. We will be more than a repository of our customers' savings. We, the

group, will be a single window to every financial service in a customer's universe.

The most preferred employer in financial services

A culture of empowerment coupled with a spirit of enterprise, attracts bright minds with an

entrepreneurial streak to join us and stay with us. Working with a home-grown,

professionally-managed company, which has partnerships with international leaders, givesour people a perspective that is universal as well as unique.

The most trusted financial services company

We will create an ethos of trust across all our constituents. Adhering to high standards of

compliance and corporate governance will be an integral part of building trust.

Value creation

Value creation rather than size alone will be our business driver.

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2.3 Management Overview:

Kotak Life Insurance work as a team and have a flat management structure. Our top

management has many years of experience which has helped guide the company into a

position of leadership.

Mr. Gaurang Shah

Director

Mr. G Muralidhar

Managing Director

Mr. Sunil Sharma

Appointed Actuary, Kotak Mahindra Old Mutual Life

Insurance Ltd

Mr. Sudhakar Shanbag

Chief Investment Officer, Kotak Mahindra Old Mutual

Life Insurance Ltd

Mr. Suresh Agarwal

Executive Vice President and Head,

Distribution & Strategic Initiatives

Ms. Kirti Patil

Senior Vice President and Head, Information Technology

2.4 ACHIEVEMENTS

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2006

Best equity House in India by Euro Money

Best Equity House in India by Asia Money

2007

Indias Best Equity House in India by Finance Asia

Best Equity House in India by Euro Money

Best Equity House in India by Asia Money

Best India Equity House by IFR

2008

Best Broker in India by Finance Asia

Best Equity House in India by Euro money

2009

Ranked no.1 in six categories in the Annual Euro money Private Banking

Survey Poll for 2009 for India

Best Investment Bank in India by Finance Asia

Ranked #1 in the league table for Book runner/Lead Manager in public equity

offerings in terms of the value of transaction completed during fiscal 2009

according to Prime Database.

2010

Best Broker In India by Finance Asia

Topped the best Mutual Fund House in the NDTV Business Leadership

Awards2010

Best Bond Fund Group Over Three Years by Lipper Fund Awards India

Ranked the best debt fund over 5 years by lipper for the Kotak Bond Regular

Plan

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Ranked ICRA- MFRI and was the recipient of the Silver Awards by ICRA for the

Kotak Bond Regular Plan

2011

Most Popular Inventor Relation Website for the Asia/Pacific Region Conducted by IR

Global Rankings

Emerged winner in 16 categories in the Euro money Private Banking Poll2011,

including the Best local Private Bank.

2.6 Product Range:

Protection Plans

Insurance Protection plans help you secure your loved ones' future against life's uncertainties.

A term life insurance policy is one where the person insured paid a certain premium

periodically and either receives the benefits at the term or, in the event of the assured person's

death, the family gets the benefit. These plans are quite cost-effective as they focus on

providing only life cover and no other returns.

Kotak Saral Suraksha

Kotak e-Term/ e-Preferred Term

Kotak Loan Protection Plan

Kotak Term Plan/ Preferred Term Plan

Kotak Eternal Life Plans

Retirement Plans

Retirement Planning ensures that you enjoy the same lifestyle which you are used to and

following the same hobbies and pleasurable activities, even years after your retirement and do

not depend upon your kin for support. A sound pension plan also guarantees the financial

independence of the family in the unfortunate event of the insured's demise.

Kotak Capital Multiplier Plan

Kotak Retirement Income Plan

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Savings & Investment Plans

The Savings and Investment Plans work as growth plans that help you maximize wealth

creation. In the recent times, life insurance products have evolved beyond providing just 'risk

protection'. Today, life insurance plans are attractive options for creating wealth - an

investment vehicle that can maximize returns. Such investment plans give you competitive

returns apart from added incentives like bonuses. These growth plans provide the dual

benefits of financial protection as a risk cover and attractive returns over a long term.

Kotak Assured Income Plan

Kotak Platinum

Kotak Single Invest Advantage

Kotak Ace Investment Plan

Kotak Wealth Insurance

Kotak Secure Invest Insurance

Kotak Endowment Plan

Kotak Money Back Plan

Kotak Premium Return Plan

Kotak Surakshit Jeevan

Child Plans

Whether it is to fund an education or a new age career choice or a fairytale wedding or any

other purpose for the well being of your kid through his/her childhood and teenage years, a

child plan policy provides for all the benefits and helps you plan a financially secure future

for your child.

Kotak Headstart Child Assure

Kotak Child Advantage Plan

Group Plans

Providing your employees with various group life insurance policies is one way of showing

them that you truly care about them. When your employees are happy and satisfied, they

automatically take pride in working for your organization which, in turn, increases your

organisation's productivity and output. Thus, group life insurance policies not only help you

retain employee but also improve their efficiency and in the long term, boost profits.

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Kotak Group Shield

Kotak Group Assure

Kotak Term Grouplan

Kotak Gratuity Group Plan

Kotak Credit-Term Grouplan

Kotak Complete Cover Grouplan

Rural Plans

Kotak Gramin Bima Yojana protects your loved ones against uncertainties and provides you

with guaranteed returns, just like your fixed deposit. The plan allows you to pay a one-time

premium thus saving you the hassle of annual payments and also ensures that you get 1.5

times the actual principle on maturity.

Kotak Gramin Bima Yojana

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2.6MARKETSHARE

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Kotak Mahindra Group in India has market share of 2.2%. It has ability to enter in the

adjacent market, which will help it to grow further in financial sector of India. Kotak

Mahindra is a financial firm in India fulfilling the financial need of the public. Kotak

Mahindra Group came into being in 1985 as Kotak Capital Management Finance Limited and

the name changed to Kotak Mahindra Finance ltd. in 1986 when Harish Mahindra and

Anand Mahindra took it. From Bill discounting activity in 1986 it had entered into the Lease

and Hire Purchase Market in 1987. The Auto Finance division was started in 1990. In the

year 1998 Kotak Mahindra ventures into mutual Fund Market with the launch of Kotak

Mahindra Asset Management Company. It got tied up with Old Mutual plc. and the Life

Insurance Business in the year 2000. Year 2003 saw the conversion of Kotak Mahindra

Finance Ltd. into a Commercial Bank. It is the first Indian Company to do so. In 2004 it

launched a private equity fund named India Growth Fund. Like all other years the 2006 was

also very fruitful for this group as it bought 25% stake held by Golden Sachs in Kotak

Mahindra Capital Company and Kotak Securities.

The services offered by Kotak Group are:

o Bank

o Life Insurance

o Mutual Funds

o Securities

o Car Finance

o Kotak Reality Fund

o Kotak Private Equity

o Institutional Equities

o Investment Banking

o Kotak Mahindra International

o Commercial banking

o Stock Broking

o Financial need of individuals and corporate are taken care by Kotak Mahindra Bank

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2.7 SWOT Analyses:

STRENGTHS:

I. Financial Acumen - Holds a stable and diversified portfolio and has received some

of the highest ratings in financial strength from industrys independent rating

agencies.

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II. Disciplined fund management- Years of experience in asset management, and a

strong track record in managing funds - backed by the acclaimed expertise of Old

Mutual plc

III. Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions, with a constant focus on customization and flexibility

IV. Unrelenting Customer Focus - A highly committed sales force, with customer

satisfaction as the key driving force - a major differentiator

V. Transparency in Services - Daily declaration of fund performances, regular

performance benchmarking, well regulated asset management, and monthly

newsletter on market updates

WEAKNESSES:

Industry in nascent stage.

Rural areas still not covered.

Not very known among Indian population.

Lack of credibility among the people because Kotak being a private player.

Premiums are high as compared to its competitors.

Very few branches in the country.

Products:

The policy doesnt have the surrender option before third year.

Plan does not offer any guarantee or assured return.

Product profile is not very comprehensive.

Mortality, management and administrative charges are sky scrapping as

compared to its competitors.

OPPORTUNITIES:

Liberalization of Indian economy.

As the industry is growing the whole market is virgin.

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The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies.

Its a volume business that is even if the company has few good corporate the

turnover cease to increase by manifold. Products:

Preserver funds look good due to comfortable liquidity in the economy and

there is little chance hike in short-term rate by RBI.

Finance minister unveiled a budget favoring consumer spending, boosting

demand and therefore higher economic growth.

THREATS

The government players will become aggressive thus growth is going to be tough.

Entry of other players is not ruled out.

Apprehension towards Kotak being a private life insurance company.

We expect the industry to rationalize in future that is mergers and acquisitions will

happen, which will impact the industry and Kotak life fortunes.

Products:

Past performance of these plans is not indicative of the future performance of

the plan.

The sum invested in the funds is subject to market risks and there can be noassurance that the objective of plan will be achieved.

All benefits payable under the policy are subject to tax laws and other

financial enactment, as they exist from time to time.

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CHAPTER-3CHAPTER-3

Objectives & Research Methodology

3.1 Objective

The main of the present study of is accomplish the following objective.

1.To know about brand awareness of Kotak Life Insurance and customers preference

about Kotak Life Insurance.

2.According the market survey come know about how much potential of insurance

market in our city.

3. Training aims at recruiting maximum number of Life Advisors and to Sell the

maximum policies for the company and bring the business for the company which ever is

going at the particular point of time.

3.2 SURVEY AND RESEARCH

TITLE:

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To study the customer satisfaction regarding of kotak mahindra life insurance.

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with studying the buying pattern

in the insurance industry with a special focus on Kotak life Insurance. The various segments

of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels etc will

also studied.

SIGNIFIGANCE OF THE STUDY:

This is a limited study which takes into consideration the responses of 100 people. This data

can be extrapolated to take in the trends across the industry. The significance for the industry

lies in studying these trends that emerge from the study. It is a rapidly changing and evolving

sector. People are only beginning to wake up to its vast possibilities. A study like this can

attempt to guide the future of the industry based on current trends.

SCOPE OF THE STUDY:

The data for the research was collected from different zones of Ludhiana City.

PRODUCT SCOPE:

The research was conducted to find out about the preference and perception of the target

population for different insurance products. The investment pattern and strategies were

discovered through this research. Also the awareness about Kotak Life Insurance was also

found out.

TARGET POPULATION:

The target population included most of the categories of people like Service class, business

class, students, house-wives etc.

RESEARCH DESIGN:

The research is primarily both exploratory as well as descriptive in nature. The sources of

information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews were conducted to

collect the customers perception and buying behavior, through the questionnaire.

3.3Sources of Data

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DATA COLLECTION:

Primary Data:

In Primary data, structured questionnaire was made and the target respondents were asked to

fill the questionnaire. Thus a large amount of data was collected.

Secondary Data:

Secondary data was collected from various sources such as internet, news papers,

publications and financial magazines.

QUESTIONNAIRE DESIGN:

Objective was to make respondents little familiar with the context of the questions. This was

also aimed at collecting data about the sample profile thatll be subsequently analyzed so that

the scope of the project is fully explored. Initially, a rough draft was prepared keeping in

mind the objective of the research. A pilot study was done in order to know the accuracy of

the Questionnaire. The final Questionnaire was arrived only after certain important changes

were done. Thus my sampling came out to be judgmental and convenient.

3.4 Limitations:

Some of the difficulties and limitations faced by me during my training are as follows:

Lack of awareness among the people This is the biggest limitation

found in this sector. Most of the people are not aware about the importance and the

necessity of the insurance in their life. They are not aware how useful life insurance

can be for their family members if something happens to them.

Perception of the people towards Insurance sector People still

consider insurance just as a Tax saving device. So today also there is always a rush to

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buy an Insurance Policy only at the end of the financial year like January, February

and March making the other 9 months dry for this business.

Insurance does not give good returns Still today people think that

Insurance does not give good returns. They are not aware of the modern Unit Linked

Insurance Plans which are offered by most of the Private sector players. They are still

under the perception that if they take Insurance they will get only 5-6% returns which

is not true nowadays. Nowadays most of the modern Unit Linked Insurance Plans

gives returns which are many times more than that of bank Fixed deposits, National

saving certificate, Post office deposits and Public provident fund.

Lack of awareness about the earning opportunity in the Insurance

sector People still today are not aware about the earning opportunity that the

Insurance sector gives. After the privatization of the insurance sector many private

giants have entered the insurance sector. These private companies in order to beat the

competition and to increase their Insurance Advisors to increase their reach to the

customers are giving very high commission rates but people are not aware of that.

Increased competition Today the competition in the Insurance sector

has became very stiff. Currently there are 14 Life Insurance companies working in

India including the LIC (life insurance Corporation of India). Today each and every

company is trying to increase their Insurance Advisors so that they can increase their

reach in the market. This situation has created a scenario in which to recruit Life

insurance Advisors and to sell life Insurance Policy has became very very difficult.

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Chapter-4

Data Analysis and Interpretation

The survey which was conducted provided with the following results. The sample size

was taken as 100.

Note: All the results shown in the graphs are in percentage.

1. Out of 100 there were 67% respondents who were employed in some government or

private organization. Rests of them were engaged in their own business, profession, or

education.

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2. Out of 100, 82% respondents were having at least one insurance policy. Rests of them

were either having no knowledge about the existing insurance products in the market or

were least interested in buying any kind of insurance policy for them.

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3. Out of 100, 68% have life insurance, 25% have non-life insurance and 7% have both

life and non-life insurance. Non-life insurance included vehicle insurance, house/office

building insurance etc.

4. Out of 100, following is the preference of the customers for their insurance company.

The maximum choice was given for LIC and the reason being stated for that was that it is

a government company and hence people put their faith on it.

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Preference of Insurance Company

12

11

13

14

16

30

LIC

ICICI Prudential

SBI Life Insurance

Bajaj Alianz

Reliance Life Insurance

Tata AIG Life

Others

5. Most of the respondents were having their insurance since last 5 to 10 years. The

detailed results are shown below.

6. When asked about the various benefits of the insurance cover, following responses

were received. Out of 100, 48% of the respondents agree that insurance cover provides

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security for the future. In case of any uncertain happening, life insurance will be of great

help.

7. Features which attracted to buy the policy are shown in the graph. Maximum

respondents go for the brand name. It shows the necessity of brand promotion.

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8. The monthly income of most of the respondents fell into the range of Rs.5,000 to

Rs.25,000. That implies that most of the respondents belong to medium income group.

9. When asked if the insurance policy cover is important in todays scenario, following

was the response. 80% respondents were agreeing with the importance. It shows the

awareness about the insurance between respondents.

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10. In most of the cases, respondents were approached by the insurance company

to market their products. It shows that companies are targeting their customers.

11. When asked about the satisfaction with the policy which the respondents were

having at present, following were the findings. Most of them were more or less satisfied

with it.

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12. About 62% of all respondents were not satisfied with the services of their

insurance agent. They complained that the agent didnt explain them about the product in

details.

13. Out of 100 respondents, 82% were the tax payers. It shows that Tax Saving

benefit may become the main reason for them to buy the insurance policy.

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14. Most of the respondents have invested in Provident Funds to save tax followed

by in Insurance Policies and National Saving Certificates issued by Post Offices.

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15. On asking about the best form of investment at the present time, respondents

showed the interest in Shares and mutual funds along with in fixed assets like land,

building etc.

16. Most of the respondents said that the right age to buy life insurance is 18 to 25

years. It shows that they were aware of the fact that premium is less for younger person.

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17. When asked about the overall rating for Indian insurance industry, most of the

respondents said that it is good. It shows the positive perspective of them.

18. On asking about the expectations from the Indian insurance company, most of

the respondents said first and most, it must have good insurance plans. It shows their

awareness about the products and need for new innovative products.

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19. About 67% of the total respondents were planning for new investments. They

agreed that there are lots of new opportunities in the insurance industry.

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20. Respondents were asked that if a service provider provides better services and

improved products customized to their requirements, will they accept it and invest their

money. About 78% respondents were agree to it and showed a great interest in it.

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Chapter-5Chapter-5

Conclusion and SuggestionsConclusion and Suggestions

5.15.1 CONCLUSIONCONCLUSION

After overhauling the all situation that boosted a number of Pvt. Companies associated with

multinational in the Insurance Sector to give befitting competition to the established

behemoth Kotak in private sector, we come at the conclusion that

There are very tough competitions among the private insurance companies on the

level of new trend of advertising to lull a major part of Customers.

Kotak is not left behind in the present race of advertisement.

The entry of more Pvt. Players in the Insurance Sector has expanded the product

segment to meet the different level of the requirement of the customers. It has broughtabout greater choice to the customers.

Kotak has vast market and very firm grip on its traditional customers and monopoly

of life insurance products.

IRDA is also playing very comprehensive role by regulating norms mandating to private

players in this sector, that increases the confidence level of the customers to the private

players.

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5.2 Suggestions

The study has provided with the useful data from the respondents. There has a lot to be

recommended. Following are the recommendations:

There is a need for better promotion for the investment products & services. The

bank should advertise its products through television because it will reach to the

masses.

More returns should be provided on Insurance plans.

As the bank provides the Insurance facility to its customers. It should provide this facility by

tie up with the other Insurance organizations as well. The main reason is that, the entire

customers do not want Insurance of only one company. They should have choice while

selecting a suitable Insurance plans. This will definitely add to the goodwill & profit for the

bank.

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Chapter -6

Bibliography:http://www.iloveindia.com/finance/insurance/irda.html

https://www.itshastra.com/industry

http://insurance.kotak.com./insurance-guide/about-life-insurance.php

http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html

60
http://www.iloveindia.com/finance/insurance/irda.htmlhttps://www.itshastra.com/industryhttp://insurance.kotak.com./insurance-guide/about-life-insurance.phphttp://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.htmlhttp://www.iloveindia.com/finance/insurance/irda.htmlhttps://www.itshastra.com/industryhttp://insurance.kotak.com./insurance-guide/about-life-insurance.phphttp://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html


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Chapter-7

Appendix

7.1 Financial Statements:

Form A-PL

Profit and Loss Account for the year ended March 31, 2012

Shareholders' Account (Non-Technical Account)

(Amounts in thousands of Indian Rupees)

Particulars 31-Mar-11 31-Mar-12

Amounts transferred from Policyholders

Account(Technical Account) 14,323

Income from Investments

(a) Interest, Dividends and Rent

Net of amortization 96,373 65,644

b) Profit on sale/redemption of investments 16,027 2,484

c) (Loss on sale/redemption of investments) -40,773 -3,874

Other Income (including fund management

fees)

Total (A) 85,950 64,254

Expenses other than those directly related

to the insurance business 2,382 413

Bad debts written off

Provisions (other than taxation)

a) For diminution in the value of

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investments (Net)

b) Provision for doubtful debts

(c) Others

Contribution to the Policyholders Fund 1,179,924 499,792

Total (B) 1,182,306 500,205

Profit/ (Loss) before tax -1,096,357 -435,951

Provision for taxation

Current Year

Earlier Year 8,322 8,270

Profit/(Loss) after tax -1,104,679 -444,221

Appropriations

a) Balance at the beginning of the year -1,554,127 -1,109,906

Add: Effect of first time adoption of Revised

AS-15 Employee Benefits -9,271 -1,563,398

(b) Interim dividends paid during the year

c) Proposed final dividend

(d) Tax on dividend distributed

(e) Transfer to reserves/other accounts

Profit/(Loss) carried to the Balance Sheet -2,668,077 -1,554,127

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Form A-BS

Balance Sheet as at March 31, 2012

(Amounts in thousands of Indian Rupees)

Particulars 31-Mar-12 31-Mar-11

Sources of Funds

Shareholders Funds:

Share Capital 3,303,466 2,443,701

Reserves and Surplus 520,363 520,363

Credit/[Debit] Fair Value Change Account

Sub-Total 3,823,829 2,964,064

Borrowings

Policyholders Funds:

Credit/[Debit] Fair Value Change Account 521 150,463

Policy Liabilities

Participating 3,097,235 2,122,799

Non-participating 501,753 404,444

Annuities Participating 251,545 194,565

Annuities Unit-Linked Non-Participating 236 255

Unit-Linked Non-Participating 172,419 92,992

Insurance Reserves

Participating

Non-Participating -96,870

Annuities Participating 36,347 11,851

Annuities, Unit-Linked Non-Participating 747

Unit-Linked Non-Participating (400,572)

Linked Liabilities 12,025,83

2

6,767,957

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Fair Value Change 619,615 797,222

Total Provision for Linked Liabilities 12,645,447 7,565,179

Sub-Total 16,705,503 10,045,853

Funds for Future Appropriation:-Linked

Liabilities

129,246 14,662

Others 1,009 1,009

Total 20,659,587 13,025,588

Application of Funds

Investments

Shareholders 853,836 656,985

Policyholders 4,026,888 2,975,227

Assets Held to Cover Linked Liabilities 12,774,710 7,579,841

Loans 23,168 7,245

Fixed Assets 242,790 183,626

Current Assets

Cash and Bank Balances 1,248,644 570,984

Advances and Other Assets 444,163 343,225

Sub-Total (A) 1,692,807 914,209

Current Liabilities 1,551,719 818,943

Provisions 70,969 26,729

Sub-Total (B) 1,622,688 845,672

Net Current Assets (C) = (A B) 70,119 68,537

Miscellaneous Expenditure

(To the extent not written off or adjusted)

Debit Balance in Profit and Loss Account

(Shareholders Account) 2,668,077 1,554,127

Total 20,659,587 13,025,588

INTERPRETATION:

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We can easily understand the above balance sheet in year 2011 companys total balance

13,025,588, while in year 2012 companys total balance increase and become it 20,659,587.

It means companys balance Increase is 7,633,999.

WORKING CAPITAL MANAGEMENT

Working capital refers to that part of the firms capital which is required for financing short-

term or current assets, such as, cash, marketable securities, debtors, inventories, bills

receivable etc. the assets of this type are relatively temporary in nature. Unfortunately, there

is much disagreement among financiers, accountant, economics and businessmen as to the

exact meaning of the team working capital

However, working capital is also known as circulating capital or short term capital. Working

capital can be derived by the deference between current assets and current liabilities of the

firm.

GROSS WORKING CAPITAL= TOTAL CURRENT ASSETS

WORKING CAPITAL= CURRENT ASSETS CURRENT LIABILITIES

Working capital = Current Assets Current Liabilities

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Particular 2012 2011

Current Assets

Cash and Bank Balances 1,248,644 570,984

Advances and Other Assets 444,163 343,225

Sub-Total (A) 1,692,807 914,209

Current Liabilities 1,551,719 818,943

Provisions 70,969 26,729

Sub-Total (B) 1,622,688 845,672


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For year 2012

Working Capital = C.A C.L

= 1,692,807- 914,209

= 70,119

For year 2011

Working Capital = C.A C.L

= 914,209 845,672

= 68,53

FUTURE PROSPECTS

With there being intense competition between the private players in the insurance market,

distribution strength, reach, cost

effectiveness, product innovation, brand loyalty and customer service are the key factors that

will determine performance in

the marketplace.Your Company is concentrating on these areas so as to ensure superior

performance.

During the current financial year, your Company plans to expand its operations and open

branches in 15 additional cities.

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7.2 QUESTIONNAIRE

1. ARE YOU EMPLOYED?

YES NO

2. DO YOU HAVE ANY INSURANCE POLICY?

YES (Have at least one) NO (Dont have any)

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH COMPANYS INSURANCE POLICY DO YOU PREFER THE MOST?

a) LIC

b) ICICI PRUDENTIAL

c) SBI LIFE INSURANCE

d) BAJAJ ALLIANZ

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e) KOTAK LIFE INSURANCE

f) TATA AIG LIFE

g) ANY OTHER _____________ (Please Specify)

5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY?

a) 15 Yrs ____________ (Please Specify)

6. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER?

a) COVER FUTURE UNCERTAINITY

b) TAX DEDUCTIONS

c) FUTURE INVESTMENT

d) ANY OTHER _______________ (Please Specify)

7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?

a) LOW PREMIUM

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b) LARGER RISK COVERANCE

c) MONEY GUARANTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

f) ANY OTHER _________________ (Please Specify)

8. YOUR MONTHLY INCOME?

a) < Rs.5,000

b) Rs.5,000-Rs.15,000

c) Rs.15,000-Rs.25,000

d) Rs.25,000-Rs.50,000

e) >Rs.50,000 _____________(Please Specify)

9. DO YOU THINK INSURANCE POLICY COVER IN TODAYS SCENARIO IS

ESSENTIAL?

Yes No Cant Say

10. HOW DID YOU BUY INSURANCE?

a) CUSTOMER APPROCHED INSURANCE COMPANY

b) INSURANCE COMPANY APPROCHED CUSTOMER

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11. AREYOU SATISFIED WITH THE POLICY?

a) SATISFIED

b) NOT SATISFIED

c) CANT SAY

12. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED

b) NOT SATISFIED

c) NEUTRAL VIEW

13. DO YOU PAY TAXES?

YES NO

14. WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM)

a) Insurance

b) NSC

c) BONDS

d) PF

15. WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM)

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a) FIXED ASSETS

b) BANK DEPOSITS

c) Gold

d) Government Securities

e) SHARES and MF

f) INSURANCE

16. WHATS THE RIGHT AGE TO BUY INSURANCE?

a) BEFORE 18 Yrs

b) 18 to 25 Yrs

c) 25 to 45 Yrs

d) 45 to 60 Yrs

e) AFTER 60 Yrs

17. HOW WOULD YOU RATE INDIAN INSURANCE COMPANIES?

a) RIGID PLANS

b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON-AGGRESSIVE

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e) SATISFACTORY

f) GOOD

g) EXCELLENT

18. WHATWOULD YOU LOOK FOR IN AN INSURANCE COs? (RANK THEM)

a) A TRUSTED NAME

b) FRIENDLY SERVICE & RESPONSIVENESS

c) GOOD PLANS

d) ACCESSIBILITY

19. ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING

20. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER OFFERS

BETTER SERVICE & PRODUCTS?

a) YES

b) NO

c) UNCERTAIN

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NAME: _________________________________________AGE:

_________________________________

CONTACT NO.: ______________________________OCCUPATION:

______________________________

Documents

Customer Satisfaction regarding kotak mahindra life insurance