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Finance report on kotak mahindra life insurance
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PREFACE
We are the students of management faculty studying the pellucid path of
management in M.B.A. sem 2 in T.N.Rao college of management studies
Rajkot.
Practical training place an important role in the development of management student.
This training not only important a practical approach but also through such training one
can easily grab the theoretical principals of the syllabus as well as relevant topics.
Under the practical period the student has to under go the training in thereof common
business understanding. This project report represents the overall view of study at the
time of training.
Master of Business Administration is a study concerned with administration of
various activities in an industrial corporation. The view of each and every person is
different to achieve goal or predator remind aims needs help for our development in
across learn number of things.
We have tried our best and devoted fulltime and attention to prepare this report.
Thank you signature
ACKNOWLEDGET
We are very happy an opportunity to undergo a project work in KOTAK
MAHENDRA LIFE INSURANCE (PVT.) Ltd. Rajkot, which we found very prosperous
and which has added much to my sphere of information and knowledge.
We here by sincerely express my gratitude and warm regards to our professor Mr.
Dharmesh Rawal for giving their valuable suggestion and esteemed guidance for our task
to undergo project work.
We are also thankful to Mr. Kaushal Mandalia for giving us practical expansion, good
response and co-ordination that is pillars or our project work.
DECLARATION
We, the undersigned Mr.Hardik C Mehta, Paresh M Hadiya, Alpesh K Paghadar, Ajit
Herma and Ashish Joshi, Purvesh M. Kakkad. The students of M.B.A. sem 3 here declare
that the project work presented in this report is our own and had been carried out under
supervision of Prof|,
Date :
Signature :
Place :
CONTENT
1) Objective of the Study
2) About Insurance Sector
3) Company Profile
a. History
b. Branches
c. Owners
d. Product Mix
e. SWOT Analysis
4) Past Performance
a. Market
5) Organization Overview
a. Organisation Structure
b. Employee Profile
c. Departmentation Information
i. Operation
ii. Marketing
iii. HR
6) CONCLUSION
7) BIBLIOGRAPHY
Roadmap
Introduction to Company
Introduction to Insurance
Types of Insurance
Need of Insurance
Distribution channels in Insurance
Worldwide Insurance Awareness
Insurance Potential in India
Organization Study
Founders and Board Members
Kotak Group
Organization Structure
Role of Various Departments
Alternate Distribution – A Case Study
Need of Alternate Distribution
Conventional Distribution v/s Alternate Distribution.
Need of Alternate Distribution
New Initiatives taken in Alternate Distribution
Co Operative Bank Movements
Corporate Agencies
MLM Networks
Nationalize Banks
Other Form of Distributions.
Summary or Conclusion
INTRODUCTION
About parents:
The shareholding pattern of the company is as follows:
Kotak Mahindra Bank Ltd. 74%
Old Mutual Plc. 26%
Till date the promoters have invested Rs. 254 Crores in the company and are committed
to provide necessary support for its long-term growth.
GENERAL INFORMATION
Basicallly there are two type of insurance one is General Insurance and second is
life Insurance.
1.General insurance is concerned with insurance of non living things.example:-
Insurance of Vehicle, Machine, House,etc.
2.Life insurance is concerned with living things example:-Insurance of Human
being.
Before 1991 when Indian government was not liberalized insurance sector was
totally on the hand of government(LIC) was playing one man army role. After 1991 we
became liberalized and government open the door of insurance sector and any private
player can enter into the insurance sector.
It is quite obvious that in private sector there motive is profit so the chance of
malpractices is higher as compare to government sector so to avoid this type of things
government has formulated one regulatory board which is known as a IRDA(Insurance
Regulatory and Development Authority) which control the entire insurance sector
whether it is General or Life Insurance.
If any private company wants to enter into the insurance market than it has to give
100crore Rs. To IRDA for security purpose.
JOURNEY
1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting
1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market
1990 The Auto Finance division is started
1991 The Investment Banking Division is started. Takes over FICOM, one of
India’s largest financial retail marketing networks
1992 Enters the Funds Syndication sector
1995 Brokerage and Distribution businesses incorporated into a separate company -
Kotak Securities. Investment Banking division incorporated into a separate
company - Kotak Mahindra Capital Company
1996 The Auto Finance Business is hived off into a separate company - Kotak
Mahindra Primus Limited. Kotak Mahindra takes a significant stake in Ford
Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of
Matrix Information Services Limited marks the Group’s entry into information
distribution.
1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset
Management Company.
2000 Kotak Mahindra ties up with Old Mutual plc. for the Life
Insurance business.
Kotak Securities launches kotakstreet.com - its on-line broking
site. Formal commencement of private equity activity through
setting up of Kotak Mahindra Venture Capital Fund.
2001 Matrix sold to Friday Corporation Launches Insurance Services
2003 Kotak Mahindra Finance Ltd. converts to bank
BRANCHES IN GUJRAT
• 10 Branches in Gujarat alone
• Ahmedabad
• Baroda
• Surat
• Rajkot
• Nadiad
• Palanpur
• Vapi
• Jamnagar
• Gandhidham
• Bhavnagar
MANAGEMENT
The Board of Directors of KLI consists of the following members:
Mr. Uday Kotak Chairman Co-founder: Kotak Mahindra
Group of Companies
Mr. Hasan Askari Vice-Chairman Director - Old Mutual
Financial Services (UK) plc
Mr. Gaurang Shah Managing
Director
Managing director Kotak
Mahindra Old Mutual Life
Insurance Ltd.
Mr. Shivaji Dam Director Director – Kotak Mahindra
Bank Ltd.
Mr. James Harry
Sutcliffe
Director Chief Executive - Old Mutual
Plc.
Mr. Dipak Gupta Director Executive Director - Kotak
Mahindra Bank Ltd.
Ms. Pallavi Shroff Independent
Director
Partner - Amarchand &
Mangaldas & Suresh A. Shroff
& Co.
Mr. S. S. Thakur Independent
Director
Director - HDFC Securities
Ltd.
Mr. Vinnet Nayyar Independent
Director
Director - HCL Perot Systems
Limited
Mr. M. G. Diwan Independent Partner in K. A. Pandit,
Director Consulting Actuaries
Mr. James
Thompson
Alternate Director
to Mr. James
Harry Sutcliffe
Appointed Actuary in Kotak
Mahindra Old Mutual Life
Insurance Ltd.
ORGANIZATION CHART
Managing Director
CFO CTO Investment HR TiedSales
AlternateSales
GroupSales Training
PRODUCT MIX
KLI’s Product Suite:
Product Type Product
Endowment Products
Kotak Endowment Plan
Kotak Money Back Plan
Kotak Child Advantage Plan
Kotak Capital Multiplier Plan
Pure Protection Products
Kotak Preferred Term / Term Plan
Kotak Return of Premium Plan
Unit Linked Plans Kotak Safe Investment Plan
Kotak Flexi Plan
Kotak Easy Growth Plan
Retirement Plans Kotak Retirement Income Plan with / without
Cover
Kotak Endowment Plan
1 Introduction Kotak Endowment plan is a protection plan that covers yours life and at the
same time ensures that your money does not lie idle. It invests a portion of your
premium in financial instruments and ensures a considerable growth in financial
instruments and ensures a considerable growth in saving. This is a participating
plan .
Avail of this plan.How old do you have to be
To avail of this plan ? Minimum Age 18 years
Maximum Age 65 years
For what term can you avail this plan 10-30 years
At what intervals can you Mode
Quarterly
Half yearly
Pay the premium ? Annually
What is the maximum age limit of this plan 75 years
ADVANTGE OF THIS PLAN1. Term Benefit/Preferred Benefit
2. Accidental Death Benefit
3. Permanent Disability Benefit
4. Critical incident benefit
5. Life guardian benefit
6. Accidental Death benefit
7. Permanent Disability Benefit
8. Accidental Disability Guardian benefit
Tax benefit Yes, the premiums paid under the plan will qualify for rebate under sc.88 of the
Income Tax Act,1961 and the returns are fully tax exempt under sec80 D
How dose it work
Mr.Sanjay Gupta, who is 30 years old decides to buy a kotak Endowlpment plan
for a sum assured of Rs. 5,00,000 for 20 years for his wife, who is age 28 Mr., Gupta
decides to take the life Guardian Benefit and the Term benefit as riders to the plan. He
does this to provide enhanced security protecting to his wife .
Kotak Endwalpment plan premium 22,552
Life guardian Benefit Premium 1,004
Total premium paid 23,556
GENERAL EXCLUSION;In case the life insured commits suicide within one year of the commencement of the
policy,no benefits outlined plan would be payable.
Exclusions for Accidental Death Benefit, Permanent Disability benefit and critical illness
benefit.
Addition exclusion for critical illness;
1.Follow of medical advice
2. When the life insured is engaged in aviation
3. Due to injures from war ,invasion,hunting other dangerous hobbies or activity
Prohibition of rebates.Section 41 of the insurance Act, 1938 states:
1. No person shall allow or offer to allow, either directly of indirectly as an
inducement to any person to take out or renew or continue an insurance in respect
of any kind of risk relating to lives or property in India any rebate Shawn on the
policy, nor shall any person taking prospectuses or renewing in accordance with
the published prospectuses or tables of the insurer.
2. Any person making default in complying with the provision of this section shall
be punishable with fine, which may extend to five hundred rupees.
Kotak Money Back Plan
INTRODUCTION
The Kotak Money Back Plan not only covers your life it also assures you a certain
percent of the sum assurance as cash payment at regular interval of every 5 years. It is a
saving plan with the added advantage of life cover and regular cash inflow. This plan is
ideal for planning spevial moments like a wedding,your child’s eduction or purchase of
an asset etc. This is a participating plan(with profits)
AVAIL OF THIS PLANHow old you have to be Minimum 18 years
To be avail of this plan Maximum 60 years
For what term you can avail this plan 15,20 & 25
At what intervals can you pay the Mode
Premium Quarterly
Half quarterly
Annually
What is the maximum age
That the plan can cover you till 75 years
ADVNTAGE OF THIS PLAN1. The plan not only covers your life but also provides our with a survival benefit
payout every 5 years.
2. You have the option of paying premiums quarterly, half yearly or yearly
3. you have the benefit of a 15 days free look period.
4. On maturity u you would receive the survival benefit plus guaranteed addition.
VALUE ADDS CAN YOU OPT FOR
1 Term Benefit /Preferred term benefit
2 Accidental Death benefit
3.Permant Disability Benefit
4. Critical illness benefit
5.Life Guardian Benefit
6.Accidental Disability Guardian Benefit
Tax benefitThe premiums paid under the plan will qualify for rebate under sec 88 of income tax
act1961and the returns are fully tax exempt under Sec 10 D.
Premium paid for Critical illness Benefit qualify for rebate under Sec 80 D
PROHIBITION OF REBATES
1) No person shall allow or offer to allow either directly or indirectly, as on
inducement to any person to take out or property in India any rebate of the whole
or part of the in the accordance of the published prospectuses.
2) Any person makings default in complying with the provision of this section shall
be punishable with fine, which may extend to five hundred rupees.
Kotak Child Advantage Plan
INTRODUCTION The Kotak Child Advantage plan is an investment plan designed to meet your child
future needs. It is a plan that gives your child the “azadi” to realize his\her dreams. That
is an endowment plan where the life insured is the child. This is a participating plan.
Avail of this planHow old dose the child have to minimum 0 years
Be to avail of this plan ? maximum 17 years
Term of avail the plan 10-30 yers
MODE
At what intervals can one pay Quarterly
The premium ? Half yearly
Annually
Maximum sum assured
Allowed under this plan ? 25,00,000
ADVANTAGE OF THE PLAN
1. you have the benefit of 15 days free look period
2. You have the option to pay premium in quarterly,halfly and yearly.
3. You may take loan on this plan
4. The automatic cover maintenance facility ensues the policy.
VALUE ADDS IN THIS PLAN
1) Kotak life Guardian Benefit
2) Kotak Accidetal Disability Guardian Benefit
TAX BENEFITThe premium paid under the plan will qualify for rebate undersec 88 of the income tax
Act 1961 and the return qualify full tax exemption under sec10 D.
Kotak Preferred Term / Term Plan
INTRODUCTIONKotak 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.
Kotak Capital Multiplier Plan
INTRODUCTION
The Kotak Capital Multiplier Plan is a participating plan that is built in such a way that it
allows your money to multiply, and gives you the flexibility of using this money the way
you need it, in regular withdrawals. This is an endowment plan, which is very flexible,
and has a lot of other in-built benefits.
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 YOU CHOOSE TO PAY THE
PREMIUMS
(CALLED THE BUILD-UP PERIOD)?
5 yrs - 30 yrs
FROM WHAT AGE CAN YOU CHOOSE TO START MAKING
WITHDRAWALS
(CALLED THE VESTING AGE)?
Any age upto 65 yrs
What is the minimum premium that you need to pay and at what Mode Amount
intervals can you pay them? Quarterly Rs.2620
Half Yearly Rs.5115
What are the advantages of this plan?"
1. You can choose to start making withdrawals from the vesting age, subject to a
maximum of 65 yrs.
2. At the start of your withdrawal period, you can draw the full proceeds; or you can
draw upto 50%, of your Basic Sum Assured or Accumulation Account*,
whichever is higher.
3. In the event that you draw the full proceeds, your policy terminates.
4. In the event that you do not draw full proceeds, then you can make one or more
withdrawals yearly (that can alter year to year, as per your needs), total of which
will be between 0% to 25% of the Net Vesting Value**, subject to the rules
applicable at the vesting age. These withdrawals can be made for a maximum
period of 15 years after maturity.
5. You have the choice to opt for an early vesting at any age before the scheduled
vesting age (subject to at least 3 years' premiums having been paid), if need arises.
If the early vesting is due to medical grounds, then the minimum condition of 3
yrs is also waived.
6. In addition to the regular premiums, you can make lump-sum injections into your
plan during the premium-paying period, as and when you want (such lump-sum
injections during a year may not exceed 25% of the Basic Sum Assured). A
Supplementary Accumulation Account will be created for this, and will be
combined with the Accumulation Account at the chosen vesting age.
7. You have the facility of Automatic Cover Maintenance, which ensures that the
policy remains in force even when you miss the premium payments. This facility
is available after the first 3 years of the term.
8. You have the option of paying premiums from the Supplementary Accumulation
Account, created for "lump-sum injections", if the need arises.
9. During the build-up period, you get an additional life cover of 10% of the Basic
Sum Assured, which is over and above the life cover you have opted for.
10. During the withdrawal period, you get life cover of 10% of the Basic Sum
Assured, and the Critical Illness Benefit (CI+15), if opted for. This is available for
a period of 15 years from your vesting age or till you turn 75, whichever is earlier.
11. During the withdrawal period, returns will continue to be added to the
Accumulation Account. Such returns cannot be negative.
12. You have the option of paying premiums in quarterly, half-yearly or yearly
installments.
13. You have the benefit of a 15-day free look period.
"What value-adds can you opt for?"
You may avail of these value-adds for a nominal premium at the time of taking the
policy, subject to aggregate premium on the value-adds not exceeding 30% of the basic
premium for the policy.
Term/ Preferred Term Benefit:
In the event of death during the term of this benefit, the beneficiary would receive an
additional Death Benefit amount, which is over and above the Sum Assured. The
maximum amount of benefit you can avail is equal to the Basic Sum Assured. Where the
Term Benefit cover applied for is more than Rs.10 lakhs, better rates may apply, subject
to meeting eligibility requirements.
Accidental Death Benefit
: In the event of death as a result of an accident during the term of this benefit, your
beneficiary/ nominee will receive an additional Death Benefit amount, which is over and
above the basic benefit. The maximum Accidental Death Benefit you can avail of is equal
to the Basic Sum Assured (subject to an overall limit of Rs. 10 lakhs).
Critical Illness Benefit (CI+15):
The maximum Critical Illness Benefit Sum Assured you can avail of is equal to the Basic
Sum Assured (subject to a limit of Rs.20 lakhs).
(i) In case of the first occurrence of a critical illness during the build-up period, an
advance payment of 110% of the Critical Illness Benefit Sum Assured will be added to
your Supplementary Accumulation Account, and will be available from your chosen
vesting age. On the addition of this benefit to the Supplementary Accumulation Account,
the Basic Sum Assured would reduce by the Critical Illness Benefit Sum Assured, the
Accumulation Account would reduce proportionately, and the Critical Illness Benefit
would cease. The future premiums for the plan (if applicable) would be recalculated
based on the reduced Basic Sum Assured.
(ii) In case of the first occurrence of critical illness during the withdrawal period, an
advance payment equal to 10% of the Critical Illness Benefit Sum Assured will be added
to your Accumulation Account. On the addition of this benefit to the Accumulation
Account, the Basic Sum Assured would reduce by the Critical Illness Benefit Sum
Assured, and the Critical Illness Benefit would cease.
(Please contact our Life Advisor for a list of Critical Illnesses)
Permanent Disability Benefit:
If you meet with an accident during the term of this benefit, and are permanently
disabled, you would be entitled to an additional amount, which is over and above the
basic benefit. This amount is added to your Supplementary Accumulation Account and
will be available from your chosen vesting age. The maximum Permanent Disability
Benefit available is equal to the Basic Sum Assured (subject to a maximum of Rs.10
lakhs).
Permanent Disability is defined as permanent and immediate inability to work or
permanent loss of use of two limbs or total and permanent loss of sight.
Life Guardian Benefit:
In case of the unfortunate death of the proposer, this benefit keeps the policy alive by
waiving all future premiums on the policy. This is available only where the proposer and
the life insured are two different individuals.
Accidental Disability Guardian Benefit:
In case the proposer is permanently disabled as a result of an accident, this benefit keeps
the policy alive by waiving all future premiums on the policy. This is available even if
the proposer is also the life insured.
"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.
*Please consult your tax advisor for details.
"What happens in the event of the death of the life insured during the
build up period?" The beneficiary will receive greater of:
(i) Basic Sum Assured less all the premiums due but not paid, or
(ii) Accumulation Account,
Plus,
(i) An additional amount of 10% of the Basic Sum Assured, and
(ii) The balance in the Supplementary Accumulation Account.
"What happens in the event of death of the life insured during the
withdrawal period?"The beneficiary will receive the following:
(i) 10% of the Basic Sum Assured, and
(ii) The balance in the Accumulation Account (into which the Supplementary
Accumulation Account has been added).
"How does this plan work?"
Mr. Mehta is a 35-year-old man who takes the Kotak Capital Multiplier Plan with a Basic
Sum Assured of Rs.10 lakhs. He opts for the Accidental Death Benefit value-add. He
wants to take his withdrawals from the age of 55 years. He chooses to pay his premiums
annually. His total annual premium will be as follows:
Kotak Safe Investment Plan
INTRODUCTION
Kotak Safe Investment Plan II is a unit linked plan that combines the benefits of
insurance and capital market returns into one. This plan from the stable of Kotak Life
Insurance is a true reflection of the company’s essence: innovation that will benefit the
investor.
What makes investing in Kotak Safe Investment Plan II truly unique is that you enjoy a
Guaranteed Maturity Value, with varying degrees of equity exposure depending on your
risk appetite. So, if the market value of your units is higher, you reap the benefits with the
peace of mind that whilst in a bear market your investment is under-pinned by the
Guaranteed Maturity Value. And there’s more, the returns are totally tax-free*.
Please note that in this policy, the investment risk in the investment portfolio is to be
borne by the policyholder. However, Kotak Life Insurance offers you a Guaranteed
Maturity Value on this plan to safeguard against the downside risk of falling markets.
"Why should you invest in Kotak Safe Investment Plan II?"
Kotak Safe Investment Plan II is an ideal investment option:
If you have never invested in the equity markets, for the fear of loss of capital.
With Kotak Safe investment Plan II, you need not worry about losing your capital
as you have the downside risk protected by way of the Guaranteed Maturity
Value.
If you have been an investor in debt markets, you could switch a portion of your
funds to equity markets via Kotak Safe Investment Plan II. The plan offers you
the potential to earn higher returns with the safety net of a Guaranteed Maturity
Value.
If you are an aggressive investor in equities, you could protect the downside
risk in a bear market by investing a portion of your funds in the Kotak Safe
Investment Plan II. What you are essentially doing is that while you enjoy
equity returns, your money is protected from abysmal lows and market
vagaries by way of a Guaranteed Maturity Value.
Kotak Flexi Plan
INTRODUCTION
There may be times when you wish there was an answer to your financial worries.
A solution that allows you to take control of your investments. A way to provide for your
family’s future goals and expenses, and to protect your family from the harsh
uncertainties of life; be it death, disability or illness.
Here is ‘Kotak Flexi Plan’ which is designed to do just this. 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.
Please note that in this policy, the investment risk in the investment portfolio is to be
borne by the policyholder. However, Kotak Life Insurance offers you a Guaranteed
Maturity Value on this plan to safeguard against the downside risk of falling markets.
"Why should you invest in Kotak Flexi Plan?"
Kotak Flexi Plan is an ideal option if:
You want a comprehensive long term solution for managing your finances.
You want insurance to be an important part of your portfolio to protect your loved
ones.
You are cautious with investments in the equity markets due to the fear of loss of
capital.
You think that financial concepts require lot of time to grasp and are probably
best left to the experts.
Kotak Easy Grow
INTRODUCTION
Kotak Easy Growth Plans are single premium, market linked insurance plans that
keep pace with your ever growing success. It not only helps you save for the
future but also lets you reap rich benefits from the investments of your choice.
The undisputed advantage of these plans, is its simplicity. This simplicity stems
from our clear understanding of what would appeal to a customer who is looking
for a hassle free investment option.
"Who should invest in Kotak Easy Growth Plans?"
The unit linked, investment-oriented insurance plans are flexible and will help you strike
the right proportion between protection and savings. Kotak Easy Growth Plans would
appeal to you:
If you would like to save the hassle of regular premium payments
If you would like to increase your investment amount at your convenience as per
your requirement
If you do not want to be tied down to a tight, pre-decided maturity schedule
Kotak Retirement Income Plan with
INTRODUCTION
What is the Kotak Retirement Income Plan?"
The Kotak Retirement Income Plan is a savings plan designed to meet your post-
retirement needs. It is a plan that gives you "Jeene ki azaadi". It gives you the choice to
remain independent even after retirement.
The Kotak Retirement Income Plan is a participating plan. The plan comes in two forms:
(i) With Cover (ii) Without Cover.
"Who can avail of the Kotak Retirement Income 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 YOU CHOOSE
TO PAY THE PREMIUMS? 5 yrs – 30 yrs
HOW OLD DO YOU HAVE TO BE TO
RECEIVE YOUR ANNUITY?
Minimum Age - 45 yrs
Maximum Age - 65 yrs
AT WHAT INTERVALS CAN YOU PAY
THE PREMIUM?
Quarterly
Half Yearly
Annually
"What are the advantages of this plan?"1. You can choose to retire at any age between 45 yrs and 65 yrs.
2. On Retirement:
You may take a lump sum in cash of up to a third of your Basic Sum Assured or
Accumulation Account*, whichever is higher; and the balance of the benefit you are
eligible for will be used to buy an annuity of your choice.
3. Annuity Options:
You may buy an annuity either from Kotak Life Insurance (subject to the choice
and rates available at that time)**, or from any other insurer.
4. Early Retirement Benefits:
You may opt to retire early, i.e. at any age before the normal retirement date
(subject to the policy being in force for 3 years or your attaining a minimum age of
45 yrs, whichever is later). You can then secure benefits with your Accumulation
Account, net of an early retirement charge of 5%.
If the early retirement is due to ill health, then you may retire before attaining the
age of 45. You can then secure benefits with your full Accumulation Account.
5. Late Retirement Benefits:
You may opt to retire after the retirement date originally selected, and select a new
retirement date (subject to a maximum of 65 years). No further premiums will be
payable and the death benefit will be equal to the balance in Accumulation
Account. (However, all riders will cease at the original retirement date).
6. You can make lump-sum injections into your policy at any time before retirement
(such lump-sum injections during a year may not exceed 25% of the Basic Sum
Assured). A Supplementary Accumulation Account will be created for this, and will
be paid out in the same manner as other benefits.
7. You may exercise the option of paying premiums from the Supplementary
Accumulation Account, created for "lump-sum injections", if the need arises.
8. For a "With Cover" plan, you have the facility of Automatic Cover Maintenance,
which ensures that the cover remains in force even when you miss the premium
payments. This facility is available after the first three years of the term.
9. You have the option of paying premiums in quarterly, half-yearly or yearly
installments.
10. You have the facility of a 15-day free look period.
*Accumulation Account is your personal account in which the premiums that you
pay are
deposited, the returns declared every year are added and risk and expense charges
are deducted.
**For example you can currently avail of the Kotak Immediate Income Plan, which
gives the option of Life Annuity with Return of Purchase Price. The annual annuity
rate applicable for an immediate annuity purchased now is 6.11% of Purchase Price
(before deduction of charges), for the age group 56 years to 65 years. This, however,
will vary with prevailing market interest rates, but will be competitive
"What value-adds can you opt for?"
You may avail of the following value-adds for a nominal premium at the time of taking
the policy, subject to the aggregate premium on the value-adds not exceeding 30% of the
premium on the basic benefit.
Term/ Preferred Term Benefit**:
In the event of death during the term of this benefit, the beneficiary would receive an
additional Death Benefit amount, which is over and above the Sum Assured. The
maximum amount of benefit you can avail of is equal to the Basic Sum Assured. Where
the Term Benefit cover applied for is more than Rs.10 lakhs, better rates may apply,
subject to meeting eligibility requirements.
Accidental Death Benefit:
In the event of death as a result of an accident during the term of this benefit, your
beneficiary will receive an additional benefit, which is over and above the Basic Sum
Assured. The maximum Accidental Death Benefit you can avail of is equal to the Basic
Sum Assured (subject to a maximum of Rs. 10 lakhs).
Critical Illness Benefit**:
In case of the first occurrence of a critical illness during the term of this benefit, the
Critical Illness Benefit Sum Assured will be added to the Supplementary Accumulation
Account. Once the addition is made to the Supplementary Accumulation Account , the
Basic Sum Assured would reduce by the Critical Illness Benefit Sum Assured, the Basic
Accumulation Account would reduce in the same proportion and future premiums for the
plan would be recalculated based on the reduced Sum Assured. . The maximum Critical
Illness Benefit Sum Assured you can avail of is equal to the Basic Sum Assured (subject
to a limit of Rs.20 lakhs).
(Please contact our Life Advisor for a list of Critical Illnesses)
Permanent Disability Benefit :
If you meet with an accident during the term of this benefit, and are permanently
disabled, you would be entitled to an additional amount, which is over and above the
Basic Sum Assured. This amount will be added to the Supplementary Accumulation
Account and will be available on retirement. The maximum benefit available under this
plan is equal to the Basic Sum Assured (subject to a maximum of Rs.10 lakhs).
Permanent Disability is defined as permanent and immediate inability to work
or permanent loss of use of two limbs or total and permanent loss of sight.
Life Guardian Benefit:
In case of the unfortunate death of the proposer, this benefit keeps the policy alive by
waiving all future premiums on the policy. This is available only where the proposer and
the life insured are two different individuals.
Accidental Disability Guardian Benefit:
In case the proposer is permanently disabled as a result of an accident, this benefit keeps
the policy alive by waiving all future premiums on the policy. This is available only when
the proposer and the life insured are two different individuals.**Are available as value adds only on "With Cover" plan
"What are the Tax Benefits on this Plan?"
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.*Please consult your tax advisor for details.
"What happens in the event of the death of the life insured before retirement?"
For the "With Cover" Plan:
The benefits to the beneficiary will be, greater of:
(i) Sum Assured less all the premiums due but not paid, and
(ii) Accumulation Account.
This is used to buy an annuity, and provide commutation benefit, in accordance with the beneficiary's choice.
For the "Without Cover" Plan:
The benefits to the beneficiary will be, greater of:
(i) Return of premiums (without interest), and
(ii) Accumulation Account.
This will be used to buy an annuity, and provide commutation benefit, in accordance with
the beneficiary's choice.
"How does the Kotak Retirement Income Plan work?"
Mr. Mehta is a 35-year-old man, who wishes to retire at age 60. He takes the Kotak
Retirement Income Plan with a Basic Sum Assured of Rs. 3 lakhs. He considers the
following two options; "With Cover" - Option A, and "Without Cover" - Option B.
Option A Option B
KOTAK RETIREMENT INCOME PLAN
PREMIUMRs 9,750 Rs 9,060
TERM BENEFIT PREMIUM (3 LAKHS OF
COVER) Rs 1,818
ACCIDENTAL DEATH BENEFIT PREMIUM (3 LAKHS OF
COVER) Rs 265
TOTAL ANNUAL PREMIUM PAID Rs 11,568 Rs 9,325
(a)What is the benefit available to Mr.Mehta on retirement?
Under Option A,
Assuming that Mr. Mehta's Accumulation Account grows at 6% p.a, the fund available to
him will be Rs. 4,67,500. Assuming that it grows at 10%, then the fund available to him
will be Rs. 8,70,000.
Mr. Mehta may commute upto a third in cash immediately, and buy an annuity with the
remaining benefit.
Under Option B,
Assuming that Mr. Mehta's Accumulation Account grows at 6% p.a, the fund available to
him will be Rs.4,63,000. Assuming that it grows at 10%, then the fund available to him
will be Rs. 8,56,600.
Mr. Mehta may commute upto a third in cash immediately, and buy an annuity with the
remaining benefit.
(b) What is the benefit available in the event of the unfortunate death of
Mr. Mehta after 15 years?
Under Option A,
Mr. Mehta's beneficiary will be eligible for the greater of Rs. 3 lakhs or the balance in the
Accumulation Account. The balance in the Accumulation Account will be less than Rs. 3
lakhs even if the accumulation account grows at 10% per annum. He/she will also receive
an additional Rs.3 lakhs under the "Term Benefit" as Mr. Mehta availed of this value-add
by paying a nominal premium of Rs.1,818 p.a, for it. The beneficiary may commute upto
a third in cash immediately, and buy an annuity from the remaining benefit.
Under Option B,
Mr. Mehta's beneficiary will be eligible for Rs. 1,95,400 if his Accumulation Account
grows at 6% per annum, and Rs. 2,75,600 if his Accumulation Account grows at 10% per
annum. In the event that Mr. Mehta's death has been due to an accident, then his
beneficiary will receive an additional Rs.3 lakhs under the "Accidental Death Benefit", as
Mr. Mehta availed of this value-add by paying a minimal premium of Rs.265 p.a. for it.
The beneficiary may commute upto a third in cash immediately, and buy an annuity with
the remaining benefit.
In the illustration, some benefits are guaranteed and some are variable. Guaranteed
Returns are marked "guaranteed" in the illustration. Variable returns are shown at
two different rates of assumed future returns. These assumed rates of return are not
guaranteed and they are not the upper or lower limits of what you might get
back .The actual return may be different depending on a number of factors
including future investment performance.
"What do you do next?"
To find out more about this plan, you can call us at any Kotak Life Insurance Branch
Offices or send us an e-mail at [email protected]
"General Exclusion."
In case the life insured commits suicide within 1 (one) year of the plan, no benefits
outlined in the plan would be payable.
Exclusions for Accidental Death Benefit and Permanent Disability Benefit, Kotak
Accidental Disability Guardian Benefit:
The Accidental Death Benefit, Permanent Disability Benefit, Critical Illness Benefit &
Kotak Accidental Disability Guardian Benefit would not be paid out in the following
circumstances:
(a) Self inflicted injuries, suicide, insanity, immorality, committing any breach of law or
being under the influence of drugs, liquor etc.
(b) When the life insured is engaged in aviation or aeronautics other than as a passenger
on a licensed commercial aircraft operating on a scheduled route.
(c) Due to injuries from war (whether war is declared or not), invasion, hunting,
mountaineering, motor racing of any kind, other dangerous hobbies or activities, or
having been on duty in military, para-military, security or police organization.
Additional Exclusions for Critical Illness:
(a) Unreasonable failure to seek or follow medical advice.
(b) Any pre-existing medical condition not disclosed at inception.
(c)Infection with Human Immunodeficiency Virus (HIV) or condition due to Acquired
Immune Deficiency Syndrome (AIDS).
In addition, no benefit would be paid in respect of the exclusions specific to each critical
illness.
"Prohibition of Rebates"
Section 41 of the Insurance Act, 1938 states:
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement
to any person to take out or renew or continue an insurance in respect of any kind of risk
relating to lives or property in India, any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the policy, nor shall any person taking
out or renewing or continuing a policy accept any rebate, except such rebate as may be
allowed in accordance with the published prospectuses or tables of the insurer.
(2) Any person making default in complying with the provision of this section shall be
punishable with fine, which may extend to five hundred rupees.
The Kotak Premium Return Plan is ideal fo
INTRODUCTION
This plan is a sure and secure insurance option without the hassles or worries of a conventional insurance plan. With
minimal paperwork and procedures, you get the dual benefit of a risk cover and savings. At the end of the term, a
minimum of the premiums paid by you will be returned depending on the option you choose. In other words, this is a
term plan that makes financial sense by offering maturity benefits as well..
The Kotak Premium Return Plan is ideal for you ……….
If you do not have a life insurance cover or are underinsured and would like to protect your family in the
eventuality of you not being around yet receive all your premiums back on maturity
If you would like to cover your life without any elaborate paper-work and medical tests and with premiums
being automatically deducted from your account
Key Features
Return of premiums
This is a non-participating plan that covers you throughout the term and on maturity returns all the premiums paid by
you. The amount of premium returned will depend on term of the plan and the premium chosen by you.
Hassle-free
With a simple application procedure, no medical tests and automatic debit of premiums: you can have an insurance
plan without any worries.
Death Benefit
The beneficiary will receive the death benefit (Sum assured less premium unpaid during the year of death) in case of
the unfortunate death of the life insured.
Maturity Benefit
On maturity, the premiums paid by you will be returned. The amount payable to you on maturity will depend on the
term of the policy chosen by you.
The table below shows you the Maturity and Death Benefit for different premium* and term options
Premium
Payment Mode
Term 10 years 15 years 20 years
% of premiums
returned on
maturity
100% 111% 125%
MONTHLY
Premium (Rs.) 500 750 1000 1500 500 750 1000 750
Maturity Benefit
(Rs.)60,000 90,000 120,000 180,000 100,000 150,000 200,000 225,000
QUARTERLY
Premium (Rs.) 1,549 2,314 3,079 4,608 1,549 2,314 3,079 2,314
Maturity Benefit
(Rs.)61,176 91,765 122,353 183,529 101,859 152,788 203,718 229,412
HALF-
YEARLY
Premium (Rs.) 3,015 4,515 6,015 9,015 3,015 4,515 6,015 4,515
Maturity Benefit
(Rs.)60,000 90,000 120,000 180,000 99,900 149,850 199,800 225,000
ANNUALLY
Premium (Rs.) 5,882 8,824 11,765 17,647 5,882 8,824 11,765 8,824
Maturity Benefit
(Rs.)58,824 88,235 117,647 176,471 97,941 146,912 195,882 220,588
Age Death Benefit(Rs.)
18 - 30 290,000 500,000 700,000 1,050,000 410,000 660,000 920,000 730,000
31 -35 230,000 400,000 560,000 840,000 310,000 500,000 700,000 530,000
36 - 40 170,000 290,000 410,000 610,000 230,000 360,000 500,000 390,000
41 - 45 130,000 210,000 290,000 430,000 160,000 260,000 360,000 290,000
46 -50 90,000 150,000 200,000 300,000 120,000 190,000 260,000 220,000
* Premiums are excluding service tax.
Advantages
Twin benefit of risk cover and savings
Affordable premiums
Hassle free premium payments
No medical examinations
Tax Benefit
Section 80C, 10(10D) of Income Tax Act, 1961 would apply. You are advised to consult your tax advisor for details.
Eligibility:
ENTRY AGEMinimum age - 18 years
Maximum age - 50 years
TERM 10, 15 or 20 years
Maturity Age MAX 60 years for Term 10 years ,
65 years for Term 15 years,
70 years for Term 20 years .
"What do you do next?"
To find out more about our plans, you can call us at any of our branch offices or e-mail us at [email protected]
"General exclusion"
In case the life insured commits suicide within 1 (one) year of the plan, no benefits outlined in the plan would be
payable.
"Prohibition of Rebates"
Section 41 of the Insurance Act, 1938 states: -
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or
renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the
whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person
taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance
with the published prospectuses or tables of the insurer.
(2) Any person making default in complying with the provision of this section shall be punishable with fine, which
may extend to five hundred rupees.
Form no.: KTPP01
DISCLAIMER | IRDA | INSURANCE OMBUDSMAN | REFER A FRIEND | SITE MAP | FEEDBACK | OTHER GROUP COMPANIES
EMPLOYEE BENEFIT PLAN
INTRODUCTION
There is a new way of looking at the people in your organisation...
Through “Employee Benefits” from Kotak Life Insurance.
Some little known facts..
In today’s fast changing environment, the average life expectancy is increasing with the advent of modern medicine and technology. In 1945 it stood at 45 years, in 2002 it was 66 years and is expected to be 79 years in 2022. Retired life span is nearly competing with work life span! For an average employee current work life span is 58 years, future would see it reducing to 50 years i.e. we will have a work life span of about 25 years and a retired life span of 25 years too based on a life expectancy of atleast 75 years!! Day-to-day living costs are increasing at a drastic pace too.
Take the example of cost of milk per litre.
1991 – Rs. 10 per litre
2002 – Rs. 20 per litre
2020 – a whopping Rs. 80!!!
The costs of medical treatment too are on an upward scale. An angioplasty treatment that was
available for Rs. 1 Lakh in 1991, went upto Rs. 3.5 lakhs in 2002 and will be an astounding Rs. 10
lakhs in 2010!
Today, your employees are looking beyond immediate benefits like salary and bonuses, to benefits that they value.
Therefore, a need to plan in a systematic long term manner for the future.
Group Life Insurance is one solution which can offer a range of products that facilitate risk mitigation and long term
build up of capital.
The emerging Key financial needs can be broadly categorized into:
- Safe Guarding against outstanding liabilities
- Retirement Planning
- Health Care
- Wealth Creation
Our comprehensive range of Group products provide you with an efficient means for attracting, retaining and most
importantly motivating your most valuable resource - your employees by giving them an important source of personal
and financial stability.
The "Employee Benefits" from Kotak Life Insurance namely:
Kotal Term Grouplan
Kotak Credit-Term Grouplan
Kotak Complete Cover Grouplan
Kotak Gratuity Grouplan
Kotak Superannuation Grouplan
Take care of all the key financial needs of your employees.
Thus, all this translates into one simple fact.
Happy employees.
Prohibition of Rebates
Section 41 of the Insurance Act, 1948 states:-
(1) No person shall allow or offer to allow, either directly or indirectly, as on inducement to any person to take out or
renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the
whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person
taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance
with the published prospectuses or tables of the insurer.
(2) Any person making default in complying with the provision of this section shall be punishable with fine, which
may extend to five hundred rupees.
Disclaimer:
This product leaflet gives only the salient features of the plans. The policy document is the conclusive
document, and provides in detail all the conditions relating to the Kotak Term Grouplan, Kotak Term
Grouplan (EDLI), Kotak Term Grouplan with Experience Sharing, Kotak Credit-Term Grouplan, Kotak
Complete Cover Grouplan, Kotak Gratuity Grouplan and Kotak Superannuation
Contact Details:
Toll free: 1800-22-8081
Website: www.kotaklifeinsurance.com
E-mail: [email protected]
Ahmedabad: 55315000-08 Ext 145;
Bangalore: 56635000 – 8 / 11 / 12 Extn. 253;
Delhi: 5179 5000 / 5027 / 5029;
Kolkatta: 22881798 / 99;
Mumbai: 5661 4639 / 5663 5000 / 5661 4610 Extn 234.
Kotak Mahindra Old Mutual Life Insurance Ltd.
Regn. No.: 107; Regd. Off.: 6th Floor, Peninsula Chambers,
Peninsula Corporate park, Ganpatrao Kadam Marg,
Lower Parel (W), Mumbai- 400013.
Insurance is the subject matter of solicitation.
KTGP 01, KCTGP 01, KCCGP 01, KGGP 01, KSGP 01.
KOTAK COMPLET COVER PLAN
In today’s aggressive market, it’s getting tougher to differentiate your company from your competition. Kotak Life
Insurance offers you the Kotak Complete Cover Grouplan to protect your company’s interest as well as your customers’.
"What is the Kotak Complete Cover Grouplan
The Kotak Complete Cover Grouplan (KCCG) provides life insurance cover for a group of borrowers. Under this
innovative plan, the credit institution is the beneficiary and premium is payable in a single lump sum at the beginning
of the loan tenure. KCCG is a flexible plan that allows you to structure insurance cover in a manner that best suits you
and your borrowers.
"How does KCCG work?
KCCG provides reducing term insurance cover on a fixed rate basis for a fixed term to a group of borrowers of your
credit institution. The master policy is in the name of the lending institution.
"What are the advantages of the Kotak Complete Cover Grouplan for me as a lending institution?"
KCCG benefits you in multiple ways:
(1) Your risk of default due to death is reduced
(2) You can potentially lend higher amounts due the insurance cover offered under the KCCG policy
(3) KCCG can help to differentiate your product in a crowded and competitive consumer credit market
"What are the advantages of KCCG for my borrowers?"
The Kotak Complete Cover Grouplan provides numerous advantages to your borrowers:
The borrower’s family is relieved of the financial burden of paying the outstanding loan amount
The asset remains in the borrower’s family
Life insurance cover is available worldwide, 24 hours a day, 7 days a week anywhere in the world
Premium rates are on a group basis and therefore much less expensive than any individual insurance plan
available in the market
No medical tests are required in most cases
Simple processing
"What is the maximum amount of cover allowed under the plan?"
The maximum cover allowed to any individual borrower under this plan is the lower of the loan outstanding amount
or Rs. 10 lakhs.
"What size of group can be covered?"
The minimum group size required for KCCG is 1000. There is no restriction on maximum group size.
"Is coverage compulsory for all members of the group?"
The KCCG plan offers you flexibility in structuring the parameters of the plan. You can require all your borrowers to
compulsorily take the insurance cover or you can make the insurance cover voluntary. In the case of voluntary plans, a
minimum of 25% of borrowers must elect to participate in the plan.
"What is the term of the KCCG cover?"
KCCG plan can be structured to suit your needs as well as those of your borrowers. The insurance cover can be for
any term between 1 year and 5 years.
"What happens in the event of a death of the borrower?"
In the event of death of a borrower, the outstanding loan amount would be paid by Kotak Life Insurance as a death
benefit to your credit institution. In turn, the borrower’s family is relieved of the financial burden of paying off the
outstanding loan and retains the asset.
The benefits are payable in Indian Rupees only.
"What happens if a borrower prepays his loan?"
In the event of prepayment of the loan, a portion of the single premium paid will be refunded. Further details of the
premium refund formula are available upon request.
"How is the premium paid?
KCCG is a single premium policy and premium is payable once at the commencement of the policy by the credit
institution. You may wish to recover the premium amount directly from your borrowers through a one-time charge, or
through an addition to the monthly loan repayment. You also have the option of purchasing the insurance cover as a
value addition to your credit product at no cost to your borrowers.
"What riders are available along with KCCG?"
The Critical Illness Benefit can be added to the basic KCCG policy. Kotak Life Insurance’s Critical Illness Benefit
provides for payment of a lump sum to the borrower in the event of diagnosis of any of 12 critical illnesses. Payment
of the Critical Illness Benefit causes the basic life cover and the rider cover to cease
Additional information is available on the Critical Illness Benefit upon request.
In addition, no benefit would be paid in respect of the exclusions specific to each critical illness. Exclusions to Critical
Illness Benefit Rider apply as mentioned under Kotak Term Grouplan.
DISCLAIMER | IRDA | INSURANCE OMBUDSMAN | REFER A FRIEND | SITE MAP | FEEDBACK | OTHER GROUP COMPANIES
KOTAK GRAMIN BIMA YOJANA
Life is about change and you will want to be prepared for it. At OM Kotak Mahindra, we understand your need to
protect your loved ones and to provide for a financially independent future.
Presenting the Kotak Gramin Bima Yojana, a plan that takes protects your loved ones against uncertainties and
provides you with guaranteed returns, just like your fixed deposit.
The Kotak Gramin Bima Yojana
The Kotak Gramin Bima Yojana is an insurance plan that not only covers your life but also ensures that your
money works hard for you and generates returns. The plan lets you pay a one-time premium so you are saved the
bother of remembering to make annual payments.
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- 45 years
FOR WHAT TERM CAN I AVAIL OF THIS PLAN? 15 years
WHAT IS THE PREMIUM THAT I NEED TO PAY ? Minimum – Rs.200
Maximum – Rs.20,000
WHAT IS THE MAXIMUM AGE THAT THE PLAN CAN COVER
YOU TILL?70 years
What are the advantages of this plan?
The Kotak Gramin Bima Yojana combines the benefits of a fixed deposit and an insurance plan.
Easy one-time premium payments.
Guaranteed returns on maturity of the plan.
Increasing death benefit cover.
No medical tests required.
15 day free-look period.
What do you receive on the maturity of the policy?
With the Kotak Gramin Bima Yojana, your money grows 1.5 times on maturity, i.e. you get back 150% of the
single premium.
What do the beneficiaries receive in the event of death?
In the event of your death the beneficiary would receive the guaranteed death benefit. Depending upon the year of the event, the death benefit payable is as follows:
FIRST 2 YEARS OF THE TERM 100% of the single premium paid
THIRD YEAR ONWARDS TILL THE 15TH YEAR 500% of the single premium paid
What happens if you need money before maturity?
In case of an emergency, where you need your money before the maturity date of the policy, the plan offers you an option to surrender the plan. The surrender value payable is as follows:
YEAR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
% OF SP NA 80 80 80 80 80 80 90 90 90 90 100 110 120 135
Are there any tax benefits?
Yes, the premiums paid under the plan will qualify for a deduction under Sec.80C and the maturity proceeds are
fully exempt under Sec 10(10 D).
How does the plan work?
Ramu Singh wants to invest in a plan that gives him high returns as well as a life insurance cover. He therefore decides invest Rs. 5000 in a Kotak Gramin Bima Yojanafor the term of 15 years.
Amount in (Rs.)
INITIAL INVESTMENT 5000
GUARANTEED MATURITY BENEFIT AT THE
END OF 15TH YEAR7500
In case of Ramu Singh’s unfortunate death in, lets say, 10th year, his family would receive Rs.25,000.
What do you do next?
To find out more about our plans, you can call us at the numbers mentioned below or e-mail us
"Prohibition of rebates"
Section 41 of the Insurance Act, 1938 states: --
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out
or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of
the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any
person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in
accordance with the published prospectuses or tables of the insurer.
(2) Any person making default in complying with the provision of this section shall be punishable with fine, which
may extend to five hundred rupees.
Form no.: KGBY01
DISCLAIMER | IRDA | INSURANCE OMBUDSMAN | REFER A FRIEND | SITE MAP | FEEDBACK | OTHER GROUP COMPANIES
GROWTH
FYP Rs. Crs.
2001-02
2002-03
2003-04
04-05(E)
LIC 14,843 11,343 16,285 17,900
Private Sector 593 986 2,425 4,500
Total 15,437 12,329 18,710 22,400
Share of Private Sector 4% 8% 13% 20%
YOY Growth
Industry 59% -20% 52% 20%LIC 53% -24% 44% 10%Private Sector - 66% 146% 86%
Note: 1) 2004-05 numbers are estimates for the year.
2) Most of the private sector life insurers started operations only in 2001-02;
hence growth over 2000-01 is irrelevant.
KLI’s Premium Performance:
KLI started operations in May 01. First Year Premium (FYP) was Rs. 7 Crs. for FY
2001-02. The growth rate for next two years was aggressive and the FYP grew by 400 %
Total FYP vs Banassurance Premium
7 35126
0.01 34.13
300*
69*0
100200300400
2001-02 2002-03 2003-04 2004-05
Financial Year
Rs. i
n Cr
ore
Total Bancassurance
YOY in 2002-03 and 260 % YOY in 2003-04. For 2004-05 the company is targeting FYP
of Rs. 300 Crs.
TRAINING
Training:
It’s said that everybody needs Insurance but no body wants Insurance. Insurance is sold
and not bought. In such scenario it becomes very necessary to ensure there is no mis-
selling happening. This can be done only through extensive training of the sales force on
all aspects of insurance and the company’s products. KLI recognized this need from the
beginning. We have obtained significant involvement and assistance from Old Mutual’s
experience and training practices. Today, KLI’s training department is headed by an Old
Mutual representative supported by 39 trainers and 37 fully equipped IRDA accredited,
training centers.
CUSTOMER SERVICE
Customer Service:
KLI has a centralized Customer Service department located at Mumbai. This department
handles queries from customers as well as is a coordinating point between business,
operations and underwriting. The team is supported by state of the art query tracking
system where any query unanswered over a specified time is escalated to a higher
authority. A record is kept of all service requests received by this team and their
resolution status and time. This report is regularly reviewed by senior management
BANC ASSURANCE
Banc assurance in its simplest form is the distribution of insurance
products through a bank's distribution channels. In concrete terms banc
assurance, which is also known as Allfinanz - describes a package of financial
services that can fulfill both banking and insurance needs at the same time.
It takes various forms in various countries depending upon the demography and
economic and legislative climate of that country. Demographic profile of the
country decides the kind of products banc assurance shall be dealing in with,
economic situation will determine the trend in terms of turnover, market share,
etc., whereas legislative climate will decide the periphery within which the banc
assurance has to operate.
The motives behind banc assurance also vary. For banks it is a means of product
diversification and a source of additional fee income. Insurance companies see
banc assurance as a tool for increasing their market penetration and premium
turnover. The customer sees banc assurance as a bonanza in terms of reduced
price, high quality product and delivery at doorsteps. Actually, everybody is a
winner here.
SWOT ANALYSIS
Fist of all let us under stand the meaning of SWOT analysis. Hear S is for strength
W is week ness O is opportunity and T is threat. The main purpose behind to do is
to know the over all scenario of the particular company. Now let us understand
each and every one one by one.]
STRENGTH
Following are the main strength of KLI
1) Brand is good in the market
2) Collaboration with old mutual
3) Good market potential
4) Support of kotak bank
5) Good customer services
6) 100 hour agent training
7) Less policy lapping ratio
WEAKNESS
1) Employee turn over ration is high
2) Cut through competing
3) Ther will be lot of new entry like EFFCO TOKYO
STANDER CHARTED,RELIANCE and many more player
Will come in to the market within a year.
4) Less customer trust because it is pvt company
OPPORTUNITY
There will be lot of opportunity because has change it policy.
Government is going to be more liberal because of liberalization.
There are majority market is untapped so it can take it if it is focus
on that.
It can take the benefit of rural market if they built proper plan for
that.
5)
THREAT
There are chances of mal practices to avoid it government can put to
much regulation.
Market is open for all any one can enter in to the market.
It is very deficit to built customer image which is good
CONCLUTION
It was such a good learning experience because till than we learn
only theoretical subject .During this training period I was succeed to inclining my level of
confidence.
There were lot of challenging came across during this project
because I was new in this market and insurance sector.
Because of this training I am now able to convince any customer
which is related to insurance sector.
In short it was very wonderful period to learn theoretical thing in
practical way.
BIBLIOGRAPHY
Verma & Agarwal
Philip Kotler
C.B. Gupta
L.M. Maheshwary
C.B. Memoria
