kotak life insurance

LIFE INSURANCE - KOTAK MAHINDRA

CONTENTS

Sr.No. PARTICULARS Page No.

1. SUMMARY 1.

2. INTRODUCTION 2.

3. LIFE INSURANCE 5.

4. KOTAK MAHINDRA 12.

5. PRODUCT 13.

6. Q3 RESULT 35.

7. COMPARISON WITH SBI’S PRODUCT 36.

8. SURVEY FORM 39.

9. SURVEY RESULT 40.

10. SURVEY REPORT 43.

11. FAQ’S 44.

12. ARTICLES 48.

13. CONCLUSION 52.

14. BIBLIOGRAPHY 53.

T.Y.B.B.I. SEMESTER VI 1


S

UMMARY

Insurance is a tool or device through which some risks can be reduced,

eliminated or transferred. Every individual and business face some uncertainties

(i.e. possibility of encountering loss due to certain events) and these can be to a

certain extent removed through insurance.

Insurance is thus, a tool by which the loss likely to be caused by an

uncertain event is spread amongst a number of people who face similar risks.

Insurance is a cooperative way of bearing risks. Insurance provides certainty

(i.e. protection by way of compensation) for some uncertainty (i.e. possibility of

loss due to an unforeseen event.)

This project titled “KOTAK MAHINDRA - LIFE INSURANCE” it is an

attempt to bring out the overview features and product offered by the kotak

mahindra. This project tries to give the brief history, mission and objectives of

the company and its product.

This project would discuss the key features, benefits and how the plan works

which can suits to the policy holders. The project also discuss the financial

position of kotak mahindra its last year profits, it will also try to bring the

difference between SBI’s life insurance.

In this project I have tried to bring out some of the important product offered by

the kotak mahindra.



INTRODUCTION

The business of insurance is related to the protection of the economic value

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 benefits from it. The benefit may be an income or some thing else. It

is a benefit because it meets some of his needs. In the case of a factory or a

cow, the product generated by is sold and income generated. In the case of a

motor car, it provides comfort and convenience in transportation. There is no

direct income.

Every asset is expected to last for a certain period of time during which it will

perform. After that, the benefit may not be available. There is a life-time for a

machine in a factory or a cow or a motor car. None of them will last for ever.

The owner is aware of this and he can so manage his affairs that by the end of

that period or life-time, a substitute is made available. Thus, he makes sure that

the value or income is not lost. However, the asset may get lost earlier. An

accident or some other unfortunate event may destroy it or make it non-

functional. In that case, the owner and those deriving benefits and the planned

substitute would not have been ready. There is an adverse or unpleasant

situation. Insurance is a mechanism that helps to reduce the effect of such

adverse situations.



MEANI

NG

In life and in business, there are various events which may cause financial

loss to an individual business. Some of the events also called as “risks” can

be avoided or prevented while some of them can be reduced or transferred to

another person. Insurance is a tool or device through which some risks can

be reduced, eliminated or transferred. Every individual and business face

some uncertainties (i.e. possibility of encountering loss due to certain

events) and these can be to a certain extent removed through insurance.

Insurance is thus, a tool by which the loss likely to be caused by an uncertain

event is spread amongst a number of people who face similar risks.

Insurance is a cooperative way of bearing risks. Insurance provides certainty

(i.e. protection by way of compensation) for some uncertainty (i.e.

possibility of loss due to an unforeseen event.)

DEFINITION

Insurance is “a contract between two parties, whereby one party, (called

‘insurer’) undertakes, in exchange for a fixed sum (called ‘premium’) to pay the

other party (called ‘insured’) fixed amount of money (called compensation) on

the happening of a certain event.

The insurer i.e. the insurance company undertakes to indemnify (make

good the loss) to the insured for loss or damage arising as a result of the

particular risks.



Basically, there are two types of insurance i.e. life & non-life insurance.

Life insurance covers the risks to an individual’s life while non-life insurance

covers risks to business and includes fire insurance, marine insurance, liability

insurance etc.

PURPOSE & NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental

occurrences. Such possible occurrences are called perils. Fire, floods,

breakdowns, lightning, earthquakes, etc, are perils. If such perils can cause

damage to the asset, we say that the asset is exposed to that risk. Perils are the

events. Risks are the consequential losses or damages. The risk to a owner of a

building, because of the peril of an earthquake, may be a few lakhs or a few

crores of rupees, depending on the cost of the building and the contents in it.

The risk only means that there is a possibility of loss or damage. The damage

may or may not happen. Insurance is done against the contingency that it may

happen. There has to be an uncertainty about the risk. Insurance is relevant only

if there are uncertainties. If there is no uncertainty about the occurrence of an

event, it cannot be insured against. In the case of a human being, death is

certain, but the time of death is uncertain. In the case of a person who is



terminally ill, the time of death is not uncertain, though not exactly known. He

cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril.

The peril cannot be avoided through insurance. The peril can sometimes be

avoided, through better safety and damages control management. Insurance

only tries to reduce the impact of the risk on the owner of the asset and those

who depend on that asset. It only compensates the losses – and that too, not

fully.

Only economic consequences can be insured. If the loss is not financial,

insurance may not be possible. Examples of non-economic losses are love and

affection of parents, leadership of managers, sentimental attachments to family

heirlooms, innovative and creative abilities, etc.

LIFE INSURANCE

MEANING



Life Insurance Is a Contract whereby the insurer in consideration of a premium

undertakes to pay a certain sum of money, either on the death of the insured or

on the expiry of a certain period, whichever is earlier

In life insurance; risk to human life is covered .this risk may be in the form of

accident or death. A person may or may not meet with an accident. Death is

certain to happen but when it will happen is uncertain. Thus, due to accident or

death of a person his dependants will suffer financially. Life Insurance provides

certainty against these uncertainties

Hence, in life insurance actually an ‘assurance’ is given by the insurance

company that it will pay a certain sum of money either on death of the assured

or maturity, whichever occurs earlier

Under whole-life policy, money is payable at the death of assured (policy-

holder) and under endowment policy, money is payable on the assureds death or

on the maturity of the policy, whichever occurs earlier.



FEA

TURES OF LIFE INSURANCE

Almost all life policies are long term. Most of them are for a term of 15 years or

more.

Sum of compensation is fixed. Unlike general insurance, compensation does not

depend on damage caused to the subject matter. Compensation, which is an

assured, has to be paid either on death of assured or after maturity, whichever is

earlier.

At times, amount of policy may be collected by the survivors of the assured in

case of his death.

Life insurance policy may be surrendered by the assured before its maturity.

A person can take any number of life insurance policies and each and every

policy is liable to pay compensation, provided the other conditions are met.

Nomination: in life insurance, the assured can nominate another person who is

entitled to receive the sum assured on his death.



Assignment: a life insurance policy can be assigned to another person (the

assignee). The assignee then gets the same rights as the policyholder.

ESSENTIALS OF A VALID LIFE INSURANCE CONTRACT

General elements of a valid contract: Like valid offer acceptance of an offer,

competent parties, consideration, legal purpose etc. must be fulfilled.

Special element of a valid contract of insurance:

(a) Utmost good faith: both the parties should disclose all

Material facts.

Insurable interest: the person taking out a policy on his own life has insurance

interest but in case he wants to take a policy on another person’s life, then he



should have insurable interest in the other’s life. Moreover, insurable interest

must exist only at the time of taking out the policy and need not exist at the

Time of maturity of the policy.

Warranties: Are ascertaining specific conditions added to the contract. These

warranties are over and above the basic terms of the policy. They must be

mutually agreed upon by both the parties. Any breach of a warranty by either

party can nullify the contract. Warranties may be express (stated openly) or

implied (hidden).

Terms of policy: Are the specific terms and conditions. Viz. the period of time

covered, the nature of risk, premium amount, policies amount etc. which is

agreed upon by both the parties. All these terms must be strictly observed by

both the parties. Both the parties are bound by these terms. Any breach of any

one of the given conditions by either party can render the insurance contract

(null and void) i.e. not enforceable in the court of law.

ROLES OF LIFE INSURANCE



Risks and uncertainties are part of life's great adventure -- accident, illness,

theft, natural disaster - they're all built into the working of the Universe, waiting

to happen.

Role 1: Life insurance as "Investment"

Insurance is an attractive option for investment. While most people recognize

the risk hedging and tax saving potential of insurance, many are not aware of its

advantages as an investment option as well. Insurance products yield more

compared to regular investment options, and this is besides the added incentives

(read bonuses) offered by insurers.

You cannot compare an insurance product with other investment schemes for

the simple reason that it offers financial protection from risks, something that is

missing in non-insurance products.

In fact, the premium you pay for an insurance policy is an investment against

risk. Thus, before comparing with other schemes, you must accept that a part of

the total amount invested in life insurance goes towards providing for the risk

cover, while the rest is used for savings.

In life insurance, unlike non-life products, you get maturity benefits on survival

at the end of the term. In other words, if you take a life insurance policy for 20

years and survive the term, the amount invested as premium in the policy will

come back to you with added returns. In the unfortunate event of death within

the tenure of the policy, the family of the deceased will receive the sum assured.

Now, let us compare insurance as an investment options. If you invest Rs

10,000 in PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a



year. But in this case, the access to your funds will be limited. One can

withdraw 50 per cent of the initial deposit only after years.

The same amount of Rs 10,000 can give you an insurance cover of up to

approximately Rs 5-12 lakhs (depending upon the plan, age and medical

condition of the life insured, etc) and this amount can become immediately

available to the nominee of the policyholder on death.

Thus insurance is a unique investment avenue that delivers sound returns in

addition to protection.

Role 2: Life insurance as "Risk cover"

First and foremost, insurance is about risk cover and protection - financial

protection, to be more precise - to help outlast life's unpredictable losses.

Designed to safeguard against losses suffered on account of any unforeseen

event, insurance provides you with that unique sense of security that no other

form of investment provides. By buying life insurance, you buy peace of mind

and are prepared to face any financial demand that would hit the family in case

of an untimely demise.

To provide such protection, insurance firms collect contributions from many

people who face the same risk. A loss claim is paid out of the total premium

collected by the insurance companies, who act as trustees to the monies.

Insurance also provides a safeguard in the case of accidents or a drop in income

after retirement. An accident or disability can be devastating, and an insurance

policy can lend timely support to the family in such times. It also comes as a



great help when you retire, in case no untoward incident happens during the

term of the policy.

With the entry of private sector players in insurance, you have a wide range of

products and services to choose from. Further, many of these can be further

customized to fit individual/group specific needs. Considering the amount you

have to pay now, it's worth buying some extra sleep.

Role 3: Life insurance as "Tax planning"

Insurance serves as an excellent tax saving mechanism too. The Government of

India has offered tax incentives to life insurance products in order to facilitate

the flow of funds into productive assets. Under Section 88 of Income Tax Act

1961, an individual is entitled to a rebate of 20 per cent on the annual premium

payable on his/her life and life of his/her children or adult children. The rebate

is deductible from tax payable by the individual or a Hindu Undivided Family.

This rebate is can be availed up to a maximum of Rs 12,000 on payment of

yearly premium of Rs 60,000. By paying Rs 60,000 a year, you can buy

anything upwards of Rs 10 lakhs in sum assured. (Depending upon the age of

the insured and term of the policy) This means that you get an Rs 12,000 tax

benefit. The rebate is deductible from the tax payable by an individual or a

Hindu Undivided Family.

MYTH BUSTERS

what you should know about life insurance



Myth 1: Insurance is for tax saving

There’s always this rush to buy insurance policies towards the end of the

financial year, making one wonder if the tax-saving purpose of life insurance

has not overshadowed its other roles.

Yes, the tax benefits associated with life insurance policies do help make the

investment more attractive. The Public Provident Fund also offers the 20% tax

rebate under section 88 of the Income Tax Act, 1961, as do small saving

schemes like post office deposits and national savings certificates. You may

also avail of Tax benefits under section 80CCC with certain plans. And there

are other investment options that give you higher returns than insurance. But

these don't offer you security, the risk cover that helps you overcome the

uncertainties of life. The primary function of life insurance is to cover you

against financial losses arising out of sudden death or disability. It also offers

returns and tax savings. Life insurance, as an instrument, is hence a good

marriage of risk cover, returns and tax benefits.

Myth 2: Insurance does not give good returns

Insurance is different from routine investment options. A fixed deposit or even

a National Savings Certificate may apparently fetch more returns than a life

insurance policy. But that's not a fair straight-line comparison. If monetary

returns are evaluated in isolation, a fixed deposit (FD) offering 9.5% might look

very good in this depressed market. But insurance offers other benefits along

with returns.



Look at security for instance. If you invest in an FD and happen to die, your

nominee can claim only the amount of the FD. If you live, you will get back the

sum of the FD with the desired interest.

LIFE INSURANCE – DO’S AND DON’TS

DO

Do find out if you have death-in-service benefits

Through your job and what the level of cover is.

Do remember that (with some exceptions) you

have a’ cooling-off’ period of 30 days during

Which you can cancel a policy.

Do review your life insurance regularly,

Particularly when your circumstances change.

Do decide what, if any, extra cover you need

And get information on the type of policies that

Meet your needs.

Do shop around, costs can vary widely

For the same level of cover.

Do consider giving up smoking. After one



Year, or in some cases two, many insurance

Companies will give you non-smoker races. This

Could cut your premium by half, even though

You are a bit older.

DON’T

Don’t cash in an existing policy in order to take

Out a new one unless you have a good reason.

The cost of any new cover may be higher than

The policy you already have because you are

Older. You might also not be able to get new

Cover if your occupation or health has changed

In the meantime.

Don’t buy insurance that you don’t need or

Already have.

Kotak Mahindra Old Mutual Life Insurance Ltd.

Old mutual plc is a London-listed fortune 500 international financial services

group focusing on asset gathering and asset management. At 31 December

2005, old mutual had more than 7 million life assurance policies, 3.6 million

banking customers and over 550,000 general insurance policies. Its funds under



management exceeded $310 billion. The group has a substantial presence in the

UK, US and South African markets, it further expanded its European presence

through the acquisition of skandia in early 2006.

Established in 1984, the Kotak mahindra group has long been one of India’s

most reputed financial organizations. Kotak mahindra today is one of India’s

leading financial solutions, offering complete financial solutions that

encompass every sphere of life. The group has a net worth of over Rs. 2,840

crore, employs around 7,800 people in its various business and has a

distribution network of branches, franchisees, representative offices and

satellite offices across 264 cities and towns in India and offices in New York,

London, Dubai and Mauritius. The group services over 1.6 million customer

accounts.

Kotak Mahindra Old Mutual Life Insurance is a 76:24 joint venture

between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra

Old Mutual Life Insurance is one of the fastest growing insurance companies in

India and has shown remarkable growth since its inception in 2001.

Old Mutual, a company with 160 years experience in life insurance, is an

international financial services group listed on the London Stock Exchange and

included in the FTSE 100 list of companies, with assets under management

worth $ 400 Billion as on 30th June, 2006. For customers, this joint venture

translates into a company that combines international expertise with the

understanding of the local market.



At Kotak Life Insurance, we aim to help customers take important financial

decisions at every stage in life by offering them a wide range of innovative life

insurance products, to make them financially independent.

The joint venture translates into a company, which combines international

expertise in insurance, advice and fund management with an understanding of

the local markets.

KOTAK TERM PLAN

Smart Protection for Your Family

MEANING

Kotak Term Plan is a pure risk product that aims to cover your life at a nominal

cost. You may want to take this plan to cover your outstanding debts like a

mortgage, a home loan etc. Since this is a pure risk cover product, there are no

maturity benefits payables on survival. This is a non-participating plan.

WHO CAN AVAIL OF THIS PLAN?

How old do you have to be to avail of

this plan?

Minimum age - 18 years

Maximum age - 60 years

For what term can I avail of this plan? 10 - 30 years for regular premium

5 - 30 years for single premium

What is the minimum premium that I Mode Amount



need to pay and at what intervals can I

pay them? Quarterly Rs.540

Half Yearly Rs.1055

Annually Rs.2000

Single

Premium Rs.10000

What is the maximum age that the plan

can cover you till?

70 years

KEY FEATURES

Accidental Death Benefit



This benefit provides an additional amount (over and above the basic

sum assured) to the beneficiary in the event of the accidental death of the life

insured. The maximum cover available under this rider is equal to the basic

Sum assured (subject to a maximum of Rs.10 lakhs.)

Permanent Disability Benefit

This benefit can be added to your basic life insurance policy to provide

financial support in case of disability due to an accident. The amount payable

under this benefit would be paid out as an annuity. The maximum permanent

disability benefit that you can avail of is equal to the basic sum assured (subject

to maximum of Rs.10 lakhs).

Critical Illness Benefit

This benefit can be added to your basic life insurance policy to provide

financial support in the event of a medical emergency. On the first occurrence

of critical illness during the term of the policy, you would receive a portion of

the sum assured to reduce your financial burden in this emergency.



ADV

ANTAGES

It is a low-cost insurance plan.

You can choose between a regular premium payment option and a single

premium payment option. In case you opt for the regular premium

payment option, you may pay your premiums either annually, or in half

yearly or quarterly installments.

Your Kotak Term Plan can be converted into any other plan offered by

Kotak Life Insurance (except for another Term plan) provided there are at

least 5 years before cover ceases.

In case you forget to pay your premium by the due date, you are entitled

to a grace period of 30 days from the date of unpaid premiums.

In case of a financial emergency, you have the option to surrender the

policy provided you have taken the single premium payment option.

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 it is advised to consult

your tax advisor for details.



HOW DOES THIS PLAN WORK?

To explain, how this plan works…Mr. Sanjay Gupta, a 30-year-old male,

decides to buy the Kotak Term Plan for a sum assured of Rs.10, 00,000 for a 10

year term. The annual premium that Mr.Gupta’s pays is Rs.3, 747 annually. In

the event of his unfortunate death during the next ten years, his family would

receive Rs.10, 00,000.

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

ON MATURITY OF THE POLICY

Since this is a pure risk cover plan, there are no maturity benefits.

EXCLUSIONS

In case the life insured commits suicide within 1 (one) year of the plan, no

benefits outlined in the plan would be payable.

The Accidental Death Benefit, Permanent Disability Benefit & Critical Illness

Benefit would not be paid out in the following circumstances:

Self inflicted injuries, suicide, insanity, immorality, committing any breach of

law or being under the influence of drugs, liquor etc.



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.

Due to injuries from war (whether war is declared or not), invasion, hunting,

other dangerous hobbies or activities, or having been on duty in military, Para-

military, security or police organization.

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.

KOTAK MONEY BACK PLAN

Live For Today and Plan for Tomorrow



MEANING

The Kotak Money Back Plan not only covers your life, it also assures you a

certain percent of the sum assured as cash payment at regular intervals of every

5 years. It is a savings plan with the added advantage of life cover and regular

cash inflow. This plan is ideal for planning special moments like a wedding,

your child's education or purchase of an asset etc. This is a participating plan

with profits.


How old do you have to be to avail of this

plan?

Minimum age- 18 years

Maximum age- 60 years

For what term can I avail of this plan? 15, 20 & 25 years

What is the maximum age that the plan can

cover you till?75 years



KEY FEATURES

Term Benefit/ 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 Term 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.


This benefit provides an additional amount (over and above the sum assured) to

the beneficiary in the event accidental death of the life insured. The maximum

cover available under this benefit is equal to the basic sum assured (subject to a

maximum of Rs. 10 lakhs).




This benefit can be added to the basic life insurance plan to provide financial

support in case of permanent disability due to an accident. The amount payable

under this benefit would be paid out as an annuity. The maximum permanent

disability benefit that you can avail of is equal to the basic sum assured (subject

to a maximum of Rs.10 lakhs).


This benefit can be added to the basic life insurance plan to provide financial

support in the event of medical emergencies. On the first occurrence of critical

illness during the term of the policy, you would receive a portion of the sum

assured to reduce your financial burden in this emergency.

Life Guardian Benefit

This benefit can be availed of, only in case where the life insured and the

proposer are two different individuals. In case of the unfortunate death of the

proposer, this benefit keeps the policy alive by waiving all future premiums on

the policy.

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.

ADVAN

TAGES



The plan not only covers your life but also provides you with a survival benefit

payout every 5 years.

In the unfortunate event of death of life insured, the beneficiary would receive

the death benefit. The death benefit keeps increases by 7% of the sum assured

every year.

On maturity, you would receive the sum of the Survival Benefit, Bonus addition

and guaranteed addition.

The amount available in the Accumulation Account is invested in various

financial instruments (as per IRDA regulations) so your money works hard for

you.

The Automatic Cover Maintenance facility ensures the policy remains in force

even if you miss premium payments. This facility is available after the first

three years of the term.

You have the benefit of a 15-day free look period.

You have the option of paying premiums quarterly, half yearly or yearly.

TAX BENEFITS



are as per the currently prevailing tax regulations and you are advised to consult





Mr. Sanjay Gupta, 30 years old, decides to buy a Kotak Money Back Plan for a

sum assured of Rs.5, 00,000 and for a term of 20 years.

His annual premium and the payouts are outlined below.

Annual Premium Rs.34,124

Survival Benefit:

After 5 years Rs.100,000





At the end of the 20 years

Balance Sum Assured Rs.200,000

Guaranteed addition Rs.150,000

Bonus Addition Variable

What would Mr.Gupta receive on maturity of the plans?

Mr.Gupta would get cash flows in year 5, 10 and 15 as mentioned above.

Assuming that the Accumulation Account grows at a rate of 6%, the payout on

maturity would be Rs.510, 900. At a growth rate of 10%, the maturity amount

payable would be Rs.872, 600. The table below shows the details of the payout.

@6% @10%

Balance Sum Assured Rs.200,000 Rs.200,000



Guaranteed addition Rs.150,000 Rs.150,000

Bonus Addition Rs.160,900 Rs.522,000

Final payout at the end of 20 years Rs.510,900 Rs.872,600

ON MATURITY OF THE PLAN

On maturity, you would receive the sum of the Survival benefit, guaranteed

addition and Bonus addition.

EXCLUSIONS



The Accidental Death Benefit, Permanent Disability Benefit & Critical illness


Self inflicted injuries, suicide, insanity, immorality, committing any breach of

law or being under the influence of drugs, liquor etc.









Section 41 of the Insurance Act, 1938 states: -


induce men to any person to take out or renew or continue an insurance in








KOTAK ENDOWMENT PLAN

Savings cum Protection Plan to Ensure an Independent Future

MEANING

Kotak Endowment Plan is a protection plan that covers your life and at the

same time ensures that your money does not lie idle. It invests a portion of your

premium in financial instruments and ensures a considerable growth in savings.

This is a participating plan (with profits).





this plan?



For what term can I avail of this plan? 10-30 years

What is the maximum age that the plan

can cover you till?75 years

KEY FEATURES

Term Benefit / Preferred Term Benefit




receive an additional death benefit amount, which is over and above the sum

assured. The maximum term 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.


This benefit provides an additional amount (over and above the basic sum

assured) to the beneficiary in the event of the accidental death of the life

insured. The maximum cover available under this benefit is equal to the basic

sum assured (subject to a maximum of Rs.10 lakhs).


This benefit provides financial support in case of your permanent disability due

to an accident. The amount payable is over and above the basic sum assured and

would be paid out as an annuity. The maximum Permanent Disability Benefit

that you can avail of is equal to the basic sum assured (subject to a maximum of

Rs.10 lakhs).


This benefit can be taken with the basic life insurance policy to provide

financial support in the event of medical emergencies. On the first occurrence

of critical illness during the term of the policy, you would receive a portion of

the sum assured to reduce your financial burden in this emergency.




This benefit can be availed of, only in a case where the life insured and the

proposer are two different individuals. In case of the unfortunate death of the

proposer, this benefit keeps the policy alive by waiving all future premiums on

the policy.




This benefit is available also where the life insured is the proposer.

ADVANTAGES

On maturity, you would receive the sum assured plus the bonus addition. Bonus

addition is the amount in the Accumulation Account, in excess of the sum

assured.


financial instruments (as per IRDA regulations) so your money works harder

for you.




On maturity, you would receive the sum assured plus the bonus addition.




financial instruments (as per IRDA regulations) so your money works harder

for you.




You can take a loan against your policy, after the policy has been in force for at

least three years.

You have the option of paying premiums quarterly, half yearly or yearly. You

also have the flexibility to pay premiums through the full term of the policy or

pay it for a fixed term of 3, 5, 7, 10 or 15 years.

You have the benefit of a 15-day free look period.

TAX BENEFITS



are as per the currently prevailing tax regulations and you are advised to consult



Mr. Sanjay Gupta, who is 30 years old, decides to buy a Kotak Endowment

Plan for a sum assured of Rs. 5, 00,000 for a 20-year term for his wife, who is



aged 28. Mr. Gupta decides to take the Life Guardian Benefit as a rider to the

plan. He does this to provide enhanced security and protection to his wife.

The annual premiums paid by Mr. Gupta are as follows

Amount (Rs.)

Kotak Endowment Plan Premium 22,552

Life Guardian Benefit Premium 1,106

Total Annual Premium Paid 23,658

ON MATURITY OF THE POLICY

On maturity Sanjay Gupta would receive the sum assured or Accumulation

Account, whichever is higher.

LIMITED PREMIUM PAYMENT OPTION

Your life is uncertain and with rising costs and economic instability, you may

not be sure about your future incomes. You need a product that not only offers

you a cover for the term that you want, but also, at the same time gives you the

flexibility to choose a premium term such that you pay premiums during the

period that you are certain of a secure income. The Limited Premium Payment

(LPP) option in the Kotak Endowment Plan:

Covers you for a term (years) of your choice.

At the same time does not burden you with the liability to pay premiums for

that entire term.



You to Bonus Addition for the entire term of the plan.

FOR WHAT TERM CAN I AVAIL OF THE PLAN

You may take a policy of term raging from 10 to 30 years. However, you may

opt for a limited premium payment term of 3, 5, 7, 10, or 15 years. The

Premium payment term must be less than the policy term.

HOW DOES LPP OPTION WORK?

Jiten is a TV actor, aged 30 years. He wants to buy the Kotak Endowment Plan

of Rs.1crore for 15 years. However, he is not too sure if his income would

remain the same for 15 years, to be able to afford the premiums.

But Jiten is not worried because with the Kotak Endowment Plan, he can

choose to limit the premium paying term on his policy to 3 years. Thus he pays

premium for 3 years and gets protection and Bonus Addition for a Period of 15

years.

In the event of maturity/death, Jiten/ his beneficiaries would receive the sum

Assured plus the bonus addition (if any).

BENEFITS OF LPP OPTION

You can pay off all premiums over a short period of time and be free from

paying premiums for the rest of the policy term, while enjoying the life cover

for the entire policy term.

Enjoy the benefits of bonus additions for the entire term of the policy.



EXCLUSION


benefit outlined in the plan would be payable.

The Accidental Death Benefit, Permanent Disability Benefit & Critical Illness


Self-inflicted injuries, suicide, insanity, immorality of the proposer, or his

committing any breach of law or being under the influence of drugs, liquor etc.







Section 41 of the Insurance act, 1938 states:-

No person shall allow or offer to allow, either directly or indirectly, as an









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 RETIREMENT INCOME PLAN

So you’re Tomorrow Is Better Than Your Today.

MEANING

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.



this plan?



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



KEY FEATURES

Term/ Preferred Term Benefit


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.


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).




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).


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).


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






This is available only when the proposer and the life insured are two different

individuals

ADVANTAGES

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

On Retirement: You may take a lump sum in cash of up to a third

Basic Sum Assured or Accumulation Account, whichever is higher; and

the balance of the benefit you are eligible for will be used to buy an

annuity of your choice.

Annuity Options: You may buy an annuity either from Kotak Life Insurance

(subject to the choice and rates available at that time), or from any other insurer.

You can make lump-sum injections into your policy at any time before

retirement (such lump-sum injections during a year may not exceed 25% of the

Basic Sum Assured). A Supplementary Accumulation Account will be created

for this, and will be paid out in the same manner as other benefits.

You may exercise the option of paying premiums from the Supplementary

Accumulation Account, created for "lump-sum injections", if the need arises.

For a "With Cover" plan, you have the facility of Automatic Cover

Maintenance, which ensures that the cover remains in force even when you

miss the premium payments. This facility is available after the first three years

of the term.



You have the option of paying premiums in quarterly, half-yearly or yearly

installments.

You have the facility of a 15-day free look period

TAX BENEFITS


Critical Illness Benefit qualify for benefits under Section 80D.

(a)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:

(a) Sum Assured less all the premiums due but not paid, and

(b) 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:

(a) Return of premiums (without interest), and

(b) Accumulation Account.



This will be used to buy an annuity, and provide commutation benefit, in

accordance with the beneficiary's choice.


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

premium

Rs 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 up to 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 up to 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 up to 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 up to a third in cash immediately, and buy an annuity with the

remaining benefit.

EXCLUSION



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


(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 etc.


Section 41 of the Insurance Act, 1938 states:





5 EASY STEPS TO BUYING A POLICY

Initially, calculate the exact amount of insurance that you need;

Decide which product suits you best based on your life stage and need,

Calculate the premium that you need to pay on the basis of the product that you

have decided to buy;

Once you have decided on all the above parameters, get in touch with a Life

Advisor at any of the Kotak Life Insurance branch offices.

The Life Advisor will assist you in filling up a proposal form. In addition to a

proposal form, you need to submit some financial documents that are required

in order to buy a policy. The Life Advisor will notify the list of financial

documents required for the same.



Q3 RESULT

Kotak Mahindra Old Mutual Life Insurance – Life Insurance

RS.MILLION. Q3FY07

(3M)

Q3FY06

(3M)

Q2FY07

(3M)

YTDFY07

(9M)

YTDFY0

6 (9M)

FY06

(12M)

Gross

premium

income

2,132.

6

1,

209.7

1,6

78.5

5,04

7.7

2,578.4

6,2

18.5

Loss (175.7) (120.5) (169.0) (482.3) (420.1) (432.4)

Kotak Life Insurance (KLI) premium income grew 76% to Rs 2,132.6 mn in

Q3FY07 from Rs. 1,209.7 mn in Q3FY06.

KLI has a network of 65 branches in 44 cities (44 branches as on March 06).

As on December 31, 2006 KLI had over 248,000 individual policies on books

representing a basic sum assured of around Rs. 103.5 bn (excluding riders).

Additionally, KLI had around 198 group policies covering over 324000 lives

with an aggregate sum assured of around Rs 91.2bn.



SBI LIFE INSURANCE

SBI Life Insurance is a joint venture between the State Bank of India and

Cardiff SA of France. SBI Life Insurance is registered with an authorized

capital of Rs 500 crore and a paid up capital of Rs 500 crores. SBI owns 74% of

the total capital and Cardiff the remaining 26%.

State Bank of India enjoys the largest banking franchise in India. Along with its

7 Associate Banks, SBI Group has the unrivalled strength of over 14,500

branches across the country, the largest in the world. Cardif is a wholly owned

subsidiary of BNP Paribas, which is The Euro Zone’s leading Bank. BNP


http://www.statebankofindia.com/

http://www.cardif.com/pages/index_gb.html


Paribas is one of the oldest foreign banks with a presence in India dating back

to 1860. Cardif is ranked 2nd worldwide in creditor’s insurance offering

protection to over 35 million policyholders and net income in excess of Euro 1

billion mark. Cardif has also been a pioneer in the art of selling insurance

products through commercial banks in France and 34 more countries.

SBI Life Insurance’s mission is to emerge as the leading company offering a

comprehensive range of Life Insurance and pension products at competitive

prices, ensuring high standards of customer service and world class operating

efficiency.

SBI Life Insurance is uniquely placed as a pioneer to usher Bancassurance into

India. The company hopes to extensively utilise the SBI Group as a platform for

cross-selling insurance products along with its numerous banking product

packages such as housing loans and personal loans. SBI’s access to over 100

million accounts provides a vibrant base to build insurance selling across every

region and economic strata in the country

The Entire Life Insurance Product Offered By Insurance Companies Are

Different From Other Company. Let Us See How the Kotak’s Life Insurance



Product Differ from SBI’s Life Insurance Product.

Kotak Money Back Plan Vs SBI Money Back Plan

Points Kotak Money Back Plan SBI Money Back Plan

Guarante

e

5 years guaranteed survival

benefit is payable.

Different period 3 or 4 years

guaranteed survival benefit.

15 year

plan

25% of basic sum assured

payable at 5th years. Same it to

next 10th year. 50% to next 15th

year.

10% at 3rdyear

15% at 6thyear

20% at 9thyear.

25% at 12thyear

45% at 15th year.

25 year

plan

5th year - 15%

10th year - 15%

15th year - 15%

20th year - 15%

25th year - 40%

5th year - 10%

10th year - 15%

15th year - 20%

20th year - 25%

25th year - 55% + bonus

Minimum

age

Minimum age of entry – 18 yrs. 15 years (same for all the plan)

Maximum

age

Maximum age of entry – 60

years.

Option 1-60 years.

Option 2-55 years.

Maximum

maturity

age

70 years

75 years



Kotak Endowment Plan Vs SBI Endowment Plan

POINTS KOTAK ENDOWMENT

PLAN

SBI ENDOWMENT PLAN

Age Entry Min.—18yrs Max.

—65 yrs

Min.—12yrs Max.

—65 yrs

Term Min.—10yrs Max.

—30 yrs

Min.—8yrs

Max.--30 yrs

Death

Benefit

In event of death nominee will

receive basic sum assured or

accumulated assured which

ever is higher

Sum assured + all bonuses.

Premium

Payment

Regular premium payment. Regular premium payment &

single premium payment.

KOTAK PENSION PLAN VS SBI PENSION PLAN

POINTS KOTAK PENSION PLAN SBI PENSION PLAN

Plan

Option

Kotak pension plan offers us in

three versions: - with cover,

without cover, single premium.

SBI pension plan offer in two

option: -

I:-pure option.

II: - pension cum life cover.

Age Min. 18 yrs. Min 18 yrs.



Entry Max. 55 yrs. Max. 60yrs.

Premium Min. Rs.10, 000 annually. Min.Rs.12, 000

Max. No limit

Term

Plan

Min. Of 10 yrs. (single

premium-5yrs.)

Max. Of 30 yrs.

Min. Of 10yrs.

Max. Of 52 yrs.

Top-Up-

Premium

Min. Rs.10,000 Min.Rs.1,000/- in multiple of

Rs.100/-

Max. Cumulative top up

premium(s) in a policy yrs is

limited to twice the annualized

premium during that policy yr.

Maturity

Age

Min.:-45 yrs.

Max.:- 75 yrs.

Min.:-50 yrs.

Max:-70 yrs.



SURVEY FORM

SHRI CHINAI COLLEGE OF COMMERCE & ECONOMICS

Questionnaire for Survey of Kotak Mahindra – Life Insurance

Name:

Designation: - Contact No.:-__________

1. Are You Aware Of Insurance?

Yes No

2. Which Company Do You Prefer?

Private Public

3. Do You Have Life Insurance Plan Of Any Company?

If Yes Than Which Co.______________________

4. Do You Have Any Kotak Life Insurance Plan?

____________________________________

5. Grade the Above Policy According To Your Needs from 1-10?

Term Plan Money Back Plan

Pension Plan Endowment Plan



6. At What Age you’ll prefer to take life Insurance Plan?

_____________________________

7. Give Your Comments On Kotak Mahindra Life Insurance?

_______________________________________

Project Guide Prepared By

Prof.Nishikant Jha Amit Panwar

(Co-ordinator) (T.Y.B.B.I)

SURVEY RESULT

Market share of life Insurance company

Market Share of Life Insurance

Company

Market Share (%)

LIC 79.65

ICICI Prudential 5.73

Bajaj Allianz 4.19

SBI Life 2.24

HDFC Standard 1.81

Birla SunLife 1.05



Tata AIG 0.89

Max New York 1.02

Aviva 0.95

Kotak Mahindra 0.59

ING Vysya 0.57

Reliance Life 0.77

MetLife 0.32

Sahara Life 0.03

Market Share (%)LICICICI PrudentialBajaj AllianzSBI LifeHDFC StandardBirla SunLifeTata AIGMax New YorkAvivaKotak MahindraING VysyaReliance LifeMetLifeSahara Life



Are You Aware Of Insurance?

78% YES OUT OF WHICH 70% ARE INSURED 22% NO

YES

Aware and havinginsurance

NO

Which Company Do You Prefer?

Public ---- 63% Private ---- 37%

0

1020

30

40

5060

70

Public private

Series1

Do You Have Life Insurance Plan Of Any Company?



1

Lic

Others

0

20

40

60

80Lic

icici predential

Sbi

Kotak

Others

5. Grade the Above Policy According To Your Needs from 1-10?

Term Plan Money Back Pension Plan Endowment Plan

012345

Ter

m P

lan

Mon

eyB

ack

Pla

n

End

owm

ent

Pla

n

Pen

sion

Pla

n

Series1

Series2

Series3

6. At What Age you’ll prefer to take life Insurance Plan?

20-30 ---- 63% 30-40 ---- 30%

40-50 ---- 5% 50 & Above ---- 2%



20-30

30-40

40-50

50-above

SURVEY REPORT

I have conducted survey for the project which will give me a practical

knowledge about insurance amongst general public. I have noticed that around

80% of the general public has been insured by LIC the basic reason behind this

is that LIC is the public company and policy holders have faith in public

company.

I have also noticed that customer is not much aware about kotak mahindra as

insurance company. Because the company has not advertise themselves

properly in the market which is the key for the success among its competitors.



While doing survey I have also noticed some of the point which is very

important for the kotak mahindra as well as for all the insurance companies

conducting their business in India.

The LIC is the most leading companies in insurance sector having market share

of around 79.63% which is the highest among all the insurance company in

India. (fig.1.)

The second largest market share is of ICICI Predential having market share of

around 5.73% business in India.

Whereas kotak mahindra share the 10th position of market share i.e. its business

in amongst all 14th insurance companies in India.

It will take time for the kotak mahindra to establish fully in India to compete

with all other insurance companies.

In the second figure we can see that almost 78% people are aware of insurance

& out of which 70% are insured with some of the insurance company in India.

(fig.2.)

Whereas, 22% are not aware of insurance.

In the third figure we can see that almost 63% like to be insured with the public

company. Whereas 37% like to be insured with the private company. (fig.3.)

I have noticed that 78% are insured with LIC, 9% are insured with ICICI

Predential that of 3% are insured with kotak mahindra. (fig.no.4.)



Amongst the entire insurance product offered by kotak mahindra or by some

other companies’ people are interested to take money back plan as its give

guarantee of return of money in its maturity or death. (fig.no.5.)

Almost 63% are to be insured at the age of between 20-30 years.(FIG.NO.6)

FAQ’S

frequently asked questions?

"Is there any policy where I can receive money during the tenure of the

policy?"

Yes, a Money Back Policy. This is an anticipated endowment policy with an

additional feature of receiving a benefit at regular intervals during the tenure of

the policy. The risk cover continues for the entire sum assured in spite of the

installments already paid. If you outlive the policy, the balance sum assured

along with accumulated bonus is paid back to you. For example, Kotak Money

Back Plan.

This is suitable for you if…

You plan to coincide the funds received from the policy with your future

anticipated needs like a car, an overseas holiday, children's educational needs,

marriage expenses, etc.

"How safe is my investment with Kotak Life Insurance? OR how are the

premiums collected invested by Kotak Life Insurance?"


http://www.kotaklifeinsurance.com/omkm3/products/kmbp.htm

http://www.kotaklifeinsurance.com/omkm3/products/kmbp.htm


Kotak Life Insurance's investment portfolio has been created in accordance

with the IRDA guidelines on investment by a Life Insurance Company.

"Is there any option where I can restrict my premium payment for a lesser

number of years than the duration of the policy?"

Yes. With the Kotak Endowment Plan, there is a Limited Premium Payment

(LPP) option. Under this option you can take a policy for 10 to 30 years and opt

for paying premiums for 3, 5, 7, 10 or 15 years after which premium payment

ceases but the cover continues for the entire tenure of the policy. This option is

suitable for people who are sure of secured income only for a specified period

of their earning life during which they want to pay off all their premiums

"Is there any policy with which I can plan for my retirement?"

Yes. Kotak Retirement Income Plan. This is a pension plan, which helps you to

regularly invest your savings during your earning life in order to build up a

retirement corpus to take care of your post retirement needs. Further you may

be eligible for a tax deduction on the premiums paid up to Rs 10,000 (as per

current tax provisions) per financial year under section 80CCC of the Income

tax Act. On retirement you can withdraw up to one-third of the Accumulated

Account, which is tax-free and for the balance amount, you can buy an annuity.

"Are there any advantages in buying insurance at an early age?"



Yes. The premium that you pay on your insurance policy is mainly dependant

upon two things - your age and the tenure of the policy. The younger you are,

the lower is your insurance premium amount. . At younger age, you would be

physically sound and may not be suffering from illnesses/ medical. This would

entitle you to a lower premium on the policy. Therefore it is advisable to buy

insurance at an early age to reduce the cost of insurance.

"What will I receive on maturity of my policy?"

On maturity, you will receive the sum assured or the Accumulation Account

whichever is higher. Let’s understand how these work…

Every year you will pay premium on your policy.

This premium will get credited to an Accumulation Account.

The amount required towards your life cover expenses and any other expense

would be deducted from this Account.

The balance will be invested in sound financial securities (as per IRDA

regulations) on your behalf.

The bonuses declared each year by the company would be added to the

Accumulation Account. Thus, every year the value in your Accumulation

Account will get compounded.

At the end of the policy tenure, you would receive the amount in the

Accumulation Account or the sum assured, whichever is higher.



"What will happen to my policy if I miss a premium

Payment due date?”

Kotak Life Insurance offers a grace period of 30 days after the premium

payment due date for paying the outstanding premium. If you fail to pay the

premium on your policy within this grace period your policy will lapse. You

can revive your lapsed policy by paying your outstanding premium and 6%

handling charges. This facility is available for six months. However, you can

still revive the policy within 5 years from the date of issue of policy. But if you

are applying for revival of your policy in this period, then shall entail

submission of proof of good health and your premiums will be recalculated.

However, if your policy has been in force (in existence with all premiums paid

on time) for three years and after that you fail to pay the premium, then your

policy will get serviced out of your balance in your Accumulation Account.

Every year the amount in this Accumulation Account will be used to covering

your life (mortality charges and other expenses) will be deducted from your

accumulated fund. This will continue till this fund has sufficient balance after

which your policy will be terminated.

"How much does life insurance cost?"

In order to buy a life insurance policy, you must pay premiums to the life

insurance company. The amount of premiums payable depends upon the type of

policy, term of policy contract, sum assured and your age.

You could pay these premiums monthly/ half-yearly/ annually/ or as a single

premiums.

"How else does life insurance help?"



The primary need is buying financial security for your family. Other aspects

that insurance helps fulfill are:

Tax benefits

Life Insurance premiums paid up to Rs. 70,000 per annum get a tax rebate

(subject to certain conditions) under Section 88.

Premiums paid towards pension policies get a 100% tax rebate under section

80CCC up to Rs. 10,000 per year. (Available with Kotak Retirement Income

Plan only)

As a tool of financial planning

Most insurance plans available today have a built in savings element. Plans like

the Kotak Endowment Plan, Kotak Money back Plan; Kotak Child Advantage

Plan, Kotak Preferred Retirement Plans, etc allow you to meet your dual

financial goals of life cover and Savings for the future. Collateral security for

loans

You may avail of a loan from the insurance company against certain plans.

Your policy could also be pledged as collateral to raise funds from banks and

other financial institutions. In case of your unfortunate death the loans may be

repaid from the proceeds of the life insurance policy. Savings

Insurance promotes compulsory savings with regular premium payments and

helps build up a corpus of funds along with financial security for the dependants

in case of premature death. For your medical needs and that of your family

Hospitalization costs and quality healthcare is becoming increasingly

expensive. Without insurance, you can actually face a situation where you have



withdrawn all your money and borrowed to pay the medical bills. This can be

provided with our Critical Illness Benefit. Insurance provides you the option of

covering yourself towards any critical illnesses that can become extremely

costly. Choosing this facility pays you a lump sum upon diagnosis of certain

diseases like cancer, kidney failure, heart attack, stroke, coronary bypass, vital

organ transplants, Alzheimer's disease, paralysis, etc.

"Is there any option where I can restrict my premium payment for a lesser

number of years than the duration of the policy?"

Yes. With the Kotak Endowment Plan, there is a Limited Premium Payment

(LPP) option. Under this option you can take a policy for 10 to 30 years and opt

for paying premiums for 3, 5, 7, 10 or 15 years after which premium payment

ceases but the cover continues for the entire tenure of the policy. This option is

suitable for people who are sure of secured income only for a specified period

of their earning life during which they want to pay off all their premiums

NEWS ARTICLES

KOTAK LIFE LOOKING FOR RURAL TIE-UPS

Our Bureau

Hyderabad, Dec. 15



Kotak Life Insurance is looking at roping in co-operative banks, primary

agricultural co-operative societies (PACS), NGOs and self-help groups to sell

its products in the rural areas. "We are planning to have rural tie-ups for

distributing our policies," Mr Gaurang Shah, Managing Director, said.

The company already had tie-ups with 24 urban co-operative banks to distribute

its products. Addressing a press conference here on Friday, he said the company

found non-governmental organisations as the right channels. "We do have

credible intermediaries in such NGOs," he said. Mr Shah was here in

connection with the launch of company's 63rd branch and the third in

Hyderabad at Himayatnagar. "We are going to open branches in Vijayawada

and Visakhapatnam in the next few months," he said.

"We are going to infuse Rs 20 crore to raise the capital to Rs 360 crore by the

end of the fiscal," Mr Shah added.

KOTAK LIFE ENTERS VIZIANAGARAM

Our Bureau

Hyderabad, Oct. 27

Kotak Life Insurance has made a foray into Vizianagaram district of Andhra

Pradesh through a tie-up with Sakshi Investments. The tie-up would enhance

Kotak's presence, as the latter has a strong base of share trading clients,

according to a company press release. Sakshi Investments would offer a wider

array of products including insurance. It would focus on consolidating Kotak's

presence in the region. With a population of 2.2 million, the district is fast

becoming a commercial hub, the release said. Kotak Life is focused on the top

30-40 cities. It has 55 branches with a team of about 14,000 life advisors.



KOTAK LIFE POSTS 122-PC GROWTH IN H1

Our Bureau

Mumbai, Oct. 23

Kotak Mahindra Old Mutual Life Insurance has registered a 122 per cent

growth in first year premium for the half year ended September 30. The first

year premium calculated by the Adjusted Premium Equivalent Method,

increased to Rs 163.78 crore (Rs 73.83 crore).

The Adjusted Premium Equivalent method, takes into account only 10 per cent

of single premium. Regular premium during April-September, 2006 rose to Rs

142.70 crore, against Rs 70.26 crore in the corresponding period last year.

"Kotak Life Insurance manages Rs 1,335 crore in assets of which,

approximately 40 per cent is in equity. We will continue to build on our

distribution strengths to improve profitability and deliver long-term value," said

Mr Gaurang Shah, MD, and Kotak Life Insurance.

KOTAK LIFE RAISES CAPITAL BASE

Our Bureau

Mumbai, June 26



Kotak Life Insurance has increased its share capital by Rs 20 crore to Rs 317

crore.The promoters, Kotak Mahindra Bank and Old Mutual, have infused

additional funds as per their shareholding in the joint venture.

"The infused capital would be used as per the prudent capital adequacy norms

towards augmenting Kotak Life Insurance's business volumes and its network,"

the company said in a release.Kotak Life Insurance is present in 35 cities with

12,500 life advisors and 2,133 employees

KOTAK LIFE POSTS 100% PREMIUM INCOME GROWTH

Our Bureau

Mumbai, April 15

Kotak Mahindra Old Mutual Life Insurance (Kotak Life) has registered a 100

per cent growth in its regular premium income at Rs 349 crore in 2005-06, from

Rs 174 crore in 2004-05. However, single premium income fell to Rs 33 crore

from Rs 180 crore in the same period.

Mr Gaurang Shah, Managing Director, Kotak Life, said that around 60 per cent

of the company's business came in the last quarter buoyed by the success of its



newly introduced capital guarantee product. "Our capital guarantee product,

Kotak Privilege, has seen tremendous success in the last quarter. This product

alone has raked in Rs 112 crore in premium," he said.

Adjusted premium equivalent

"The adjusted premium equivalent, a standard measure in the industry that takes

single premium income at 10 per cent, has grown from Rs 209 crore in 2004-05

to Rs 366 crore in 2005-06, a growth of 76 per cent," said a release from the

company.

Bancassurance tie-ups with Kotak and other banks added Rs 150 crore to the

new business. "With Kotak Bank expanding to more locations and increasing its

retail base, we are riding on the infrastructure to penetrate deeper to semi-urban

areas," he said.

Group business

However, growth in the group business was flat. Mr Shah said that fringe

benefit tax on group superannuation had a negative impact on the company's

group business, with only Rs 16 crore coming from the portfolio, unchanged

from the previous year.

Kotak Life will focus on group credit term and superannuation to grow its

business in the current fiscal.



New products

In terms of new products, the company will introduce two more capital

guarantee policies — a children's plan and a retirement product.

The company will have to alter three of its Unit Linked Insurance Plans to

conform with the guidelines effective July 1. Mr Shah said the modification

would mainly consist of introducing a lock-in period.

Kotak Life will strengthen its distribution network this fiscal by opening 24

more branches and increasing its agency force to 25,000 from the current

12,500.

Mr Shah said the focus of the life insurer would continue to be the mass affluent

and high net-worth individuals. The average premium per policy of the

company is Rs 36,000.



CO

NCLUSION

From the above project report on “Kotak Mahindra - Life Insurance”. I

conclude that the products offered by kotak mahindra to its customers are

enough to satisfy their needs but, they are not aware of the company and its

product in the market. Kotak mahindra should advertise them internationally so

that the customer will be aware of such company. This will be helpful for the

company to compete with other insurance companies.

The detail given in this project report is true to the best of my knowledge & the

information made to me during my project tenure.



BIBLIO

GRAPHY

Book referred:--

Insurance Institute of India IC-33 Life Insurance ---------- S.Balachandran.

Websites:--

www.kotaklifeinsurance.com

www.sbilifeinsurance.com


http://www.sbilifeinsurance.com/

http://www.kotaklifeinsurance.com/

kotak life insurance

Documents

combines international expertise

meeting eligibility requirements

mr gaurang shah

provide financial support

joint venture translates

supplementary accumulation account

hindu undivided family

provide commutation benefit