project sravanthi

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A

PROJECT REPORT

ON

A STUDY ON CONSUMERS PERCEPTION ON INSURANCEPRODCUTS OF KOTAK MAHINDRA LIFE INSURANCE

LIMITED

IN PARTIAL FULFILLMENT OF THE AWARD OF MASTER OF

BUSINESS ADMINISTRATION

SUBMITTED TO

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY

BYK.SRAVANTHI

ROLL. No: - (10B61E0054)

(Under Guidance of Mr.V.V.SUBBA RAO)

Nalla Malla Reddy Engineering College

(Affiliated to JNTU, Hyderabad)

Divya Nagar, near Narapally, KachavaniSingaram

Ghatkesar Mandal, R R Dist, A.P

2010- 11

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http://www.jntu.ac.in/http://www.jntu.ac.in/


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DECLARATION

I hereby declare that this project entitled A Study on Consumers

Perception on Insurance Products of Kotak Mahindra Life Insurance

Limited has been carried out by means under the able guidance of

Mr.V.V.SUBBA RAO, NALLA MALLA REDDY ENGINEERING

COLLEGE.

This project report is submitted in partial fulfillment of the

requirement for the award of Master of Business Administration Degree.

I also declare that this project is a result of my own efforts and has not

been submitted to any other university for any other degree or diploma.

K.SRAVANTHI

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ACKNOWLEDGEMENT

I wish to thank to KOTAK MAHINDRA for their kind gesture of

allowing me to undertake this project and its various employees who lent

their helping hand towards the completion of this study.

I am particularly indebted to Mr. Santhosh.R.Reddy (Relationship

Manager) of KOTAK MAHINDRA for giving me the opportunity to

undertake this project in their esteemed organization

I thankA.RAJASHEKAR, M.COM, M.Phil (H.O.D) and all my faculty

members who motivated me in the completion of this project

Special thanks to my faculty cum guide Mr.V.V.SUBBA RAO, for the

helpful comments and information regarding the logic and documentation of

the project.

Last but not least, I am thankful to my parents and to all my friends for their

wholehearted support and suggestions, which helped me in completing thisproject.

(K.SRAVANTHI)

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ABSTRACT OF THE STUDY

The present project work is undertaken to understand the

Consumer perception on insurance products of Kotak Mahindra Life

Insurance Products as well as to evaluate the performance of the

company.

This project report consists of:

CHAPTER 1: Introduction: This chapter focuses on the concept,

Objectives of the study, Need. Scope,, Research methodology and

Limitations.

CHAPTER 2: Deals with review of literature.

CHAPTER 3: Deals with Industry profile and Company profile.

CHAPTER 4: Deals with Data analysis and Interpretation.

CHAPTER 5: Deals with Findings, Suggestions, and Conclusions.

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CONTENTS_

CHAPTER NUMBERS CHAPTER NAME PAGE

NOS

CHAPTER 1

1.1- INTRODUCTION 6

1.2- OBJECTIVES 8

1.3- SCOPEOF THE STUDY 9

1.4- METHODOLOGY 11

1.5- LIMITATIONS 12

CHAPTER 2 LITERATURE

SURVEY

13

CHAPTER 3

INDUSTRY PROFILE 25

COMPANY PROFILE 43

CHAPTER 4 DATA ANALYSIS AND

INTERPRETATION

64

CHAPTER 5

5.1- FINDINGS 77

5.2- SUGGESTIONS 78

5.3- CONCLUSION 79

BIBILOGRAPHY 81

INTRODUCTION

Perception is the process through which a person forms an opinion

about the various stimuli he receives from his sensory organs. In marketing,

perception is concerned with understanding how the consumer views a

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product or service. The five senses of a person help him in this process. The

marketer uses various props to stimulate the consumer, that is, through the

use of colors, sound, touch, taste, or smell, to observe the product.

The marketer must distinguish his message from the competitors message.

This is when Just Noticeable difference (JND) comes to their aid. JND is the

minimum difference that the consumer can detect between two stimuli he

receives. It helps the consumer to distinguish changes in prices among

purchase alternatives. Marketers thus use stimuli to grab customers

attention and most often these efforts are clearly visible and known to the

customer

However, they sometimes use indiscernible stimuli that are just below a

consumers threshold so as to influence him. This is called subliminal

message. Of all the stimuli a consumer comes into contact with, he pays

attention to only a few and interprets the messages that he remembers. This

is called the process of perception and has the three steps: 1) exposure, 2)

attention, and 3) interpretation. How well the consumer pays attention will

depend on the stimulus, and also the consumers interest and need for that

product.

The consumer interprets the information in two ways:

The literal meaning or the semantic meaning

The psychological meaning.

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Marketers make use of perception to formulate marketing strategies.

The marketers use a perceptual map, wherein they find out the attributes or

the characteristics that the consumer associates with the product and they

create the product accordingly. Thus, development of a brand or the logo of

the product, packaging of the product, etc., have to be made keeping the

consumers perception in mind.

Learning is a behavioral modification that occurs through experience

or conditioning. Researchers have carried out studies to understand

consumer learning. According to the behavioral learning theory, learning

occurs from exposure to external stimuli such as advertising and according

to the cognitive learning theory, consumer learning takes place by a process

of internal knowledge transfer.

OBJECTIVES

1. To study the history, growth & development of kotak Mahindra

and their various insurance products.

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2. To study and find out the consumer perception on insurance

products of kotak Mahindra life insurance product and find out

the market share of kotak Mahindra. .

3. To find out the effectiveness of service delivery in kotak Mahindra

and to find out satisfaction levels of consumer

4. To make suitable suggestions, if any.

NEED OF THE STUDY

Today in India there is 110 core population and only 8 core people

have Life Insurance Policy. There are around 16 Life Insurance companies

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operating in India. Among all the players in insurance market in India, LIC

is the leading one and have high market share in life insurance sector. LIC is

Public Sector Company and all other are private sector companies. The

reason behind the LIC having high market share, it has its roots in India

more than 50 years and brand name it created in minds of customer. The

people of India have more trust in LIC than any other private insurance.

The reason why LIC have high market share is its flexible payment

options, benefits offered, low premium of policies and its relation and

coordination with all the public sector undertakings. But the private Life

Insurance companies are unable to grab the insurance market, because the

people do not have trust in private sector.

A customer will have his/her own choice of preferences to purchase a

product. The preferences may be as quality, quantity, price, and brand name,

additional features from other products and long term services, guarantee,

warranty. According to the choice preference and need for the product only,

the customer will purchase a particular product. For different products and

services the preferences will be different base on time, situation, and need.

But finally what the customer needs is value of the money he/she paid for

the product i.e. enough returns (services, benefits) by using the product. The

case is same even in the insurance sector also.

There are various factors which influence and customer prefers in

taking an Insurance policy. Factors are premium of policy, benefits of the

policy, flexible payment options, brand name the company have in market.

So among the above factors which when is preferred more by the customer

is to be analyzed.

The life insurance companies should market their products properly, and

Make people aware of the company and its various policies, benefits.

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RESEARCH METHODOLOGY

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Research design is the arrangement of conditions for collection and analysis

of data in a manner that aims to combine revenue to research purpose with

economy in procedure.

This primary data is collected through personal interviews with the help of

questionnaire / suggestions:

This secondary data is collected with the help of companys previous

records, documents, different departments, competitor annual reports.

All the necessary were collected through primary and secondary data.

Primary data were collected through questionnaire personal interview

schedule. Secondary data were collected from companys records and

registers.

The sample size taken for the study is 100 convenience sampling method

was used for selecting the customers.

The study was conducted during the period between May 2008 to June 2008.

.

LIMITATIONS

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Convenience sampling technique was employed as the study

being made of academic importance and due to limited time

and financial resources.

All the care was taken to design the questionnaire and

administering the questionnaire errors to creep in.

The conclusion drawn may not hold good to pass judgment for

the entire market as the convenience sampling has been taken.

The respondents (consumers) are not giving the correctinformation and some agents are not responding at all.

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Review of literature

Perception is the process through which a person forms an opinion

about the various stimuli he receives from his sensory organs. In marketing,perception is concerned with understanding how the consumer views a

product or service. The five senses of a person help him in this process. The

marketer uses various props to stimulate the consumer, that is, through the

use of colors, sound, touch, taste, or smell, to observe the product.

The marketer must distinguish his message from the competitors message.

This is when Just Noticeable difference (JND) comes to their aid. JND is the

minimum difference that the consumer can detect between two stimuli he

receives. It helps the consumer to distinguish changes in prices among

purchase alternatives. Marketers thus use stimuli to grab customers

attention and most often these efforts are clearly visible and known to the

customer

However, they sometimes use indiscernible stimuli that are just below a

consumers threshold so as to influence him. This is called subliminal

message. Of all the stimuli a consumer comes into contact with, he pays

attention to only a few and interprets the messages that he remembers. This

is called the process of perception and has the three steps: 1) exposure, 2)

attention, and 3) interpretation.

How well the consumer pays attention will depend on the stimulus, and also

the consumers interest and need for that product. The consumer interprets

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the information in two ways: 1) the literal meaning or the semantic meaning

and 2) the psychological meaning. Hence we are guided by our learning as

well as the semantic meaning of a word. A consumer also interprets the

symbols and other physical features of the product on the basis of his

experience and cultural beliefs. This is called semiotics.

Marketers make use of perception to formulate marketing strategies. The

marketers use a perceptual map, wherein they find out the attributes or the

characteristics that the consumer associates with the product and they create

the product accordingly. Thus, development of a brand or the logo of the

product, packaging of the product, etc., have to be made keeping the

consumers perception in mind.

Learning is a behavioral modification that occurs through experience or

conditioning. Researchers have carried out studies to understand consumer

learning. According to the behavioral learning theory, learning occurs from

exposure to external stimuli such as advertising and according to the

cognitive learning theory, consumer learning takes place by a process of

internal knowledge transfer.

Motivation, cues, response, and reinforcement are the basic characteristics of

learning. Conditioning can be defined as a learning process in which an

organisms behavior becomes dependent on the occurrence of a stimulus in

its environment. Ivan Pavlov a Russian physiologist, demonstrated

conditioning by conducting experiments on dogs. The most important

aspects of classical conditioning are repetition, stimulus generalization, and

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stimulus discrimination.

Instrumental conditioning, like classical conditioning, also has an

association between stimulus and response but in instrumental conditioning,

the stimulus that provides the most rewarding response will be learned. B.F.

Skinner, a behavioral scientist, conducted some experiments on pigeons to

prove this point. When the environmental conditions reward a certain

behavior it is said to be a positive reinforcement.

When a particular behavior results in punishment or less satisfaction, the

individual will try to avoid such behavior. This is called negative

reinforcement. According to cognitive learning theory, the human mind

processes the information it receives from the environment. There are three

stages in the memory of a human being. They are sensory memory, short-

term memory, and long-term memory.

Involvement theory is developed from research called split-brain theory.

This theory views the human brain as being divided into left and right

hemispheres. The left hemisphere functions rationally and logically,

processing information pertaining to reading, writing, speaking, and such

other forms of information and forms mental images based on this. The right

hemisphere of the brain, unlike the left, is emotional and spontaneous, and is

involved in analyzing nonverbal and pictorial representations of information.

If an individual resorts to information processing for purchasing a product

then he is considered to be highly involved. Otherwise, he is said to be

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making a purchase with low involvement. There are five types of

involvement Ego involvement, commitment, communication involvement,

purchase importance, and response involvement.

Brand loyalty can be considered as the conscious or unconscious decision of

a consumer that is reflected in his/her expressed intent or behavior to

purchase and repurchase a product on a continuous basis. The amount of

additional income expected from a branded product over and above what

might be expected from an identical, but unbranded product is called brand

equity. Product positioning can be considered as a technique that marketers

use to create an identity and image for their products. When marketers

leverage on the brand equity by using the existing brand name for new

products, it is called brand leverage.

Attitudes have been understood as learned predispositions that project a

positive or negative behavior consistently toward various objects of the

world. The tangible and intangible objects, toward which one can form an

attitude are called attitude objects. Attitudes influence the way we think and

behave and are therefore important for the marketers who study them to

understand how a consumer behaves. Attitudes have certain characteristics.

They are formed as we grow up, based on the environment in which we

grow up. Attitudes can be either of a high or low degree and the intensity

depends on the strength of conviction with which the person believes in

them. Attitudes serve various functions such as utilitarian function, value

expressive function, Ego-defense function, and knowledge function. Attitude

models were developed by psychiatrists to understandthe relationship

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between attitudes and human behavior.

These models help the marketer in understanding how attitudes influence a

persons behavior as a consumer. These models are: Tri- component model,

multi-attribute model, Theory of trying to consume, and Attitude toward the

ad model. Attitudes are formed through classical conditioning, instrumental

conditioning, and cognitive theory.

Attitudes are measured using the Semantic differential scale and Linkers

scale to understand how the consumer might behave toward a particular

product. While it is generally accepted that attitudes influence behavior,

there are some theories that state that behavior precedes attitudes. Such

theories are cognitive dissonance theory, self-perception theory, social

judgment theory, and balance theory. Attitudes toward a product can be

changed by highlighting new functions of the product, or by associating

them with celebrities, by changing the beliefs a consumer has regarding the

products, or by getting the consumer more involved in the product.

A reference group serves as a frame of reference for an individual and

influences his/her behavior. Reference groups can be classified in many

different ways, based on degree of influence (normative reference group and

comparative reference group); type of interaction (direct reference group and

indirect reference group); and type of influence (positive reference group

and negative reference group).

A reference group can have considerable influence on the consumption

decisions of an individual consumer. An individuals reference group can

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range from family to a nation or a culture. There are three types of reference

group influences informational influence (when advice is sought by a less

knowledgeable individual from a more knowledgeable individual);

utilitarian influence (conformism due to fear of penalty or appreciation from

a significant few); and value-expressive influence (when an individual

internalizes the group goals, beliefs, and aspirations, and acts accordingly).

Some important reference groups are friends, shopping groups, work groups,

virtual communities, brand communities, and consumer action-groups.

Celebrity appeal, expert appeal, common man appeal, executive and

employee appeal, and spokes-character appeal are some of the important

reference group appeals used by marketers to influence consumers purchase

decisions.

Opinion leaders are individuals to whom an opinion seeker turns for advice

or product related information while making purchase decisions. Opinion

leadership can be a result of passive exchange of information in a group

discussion or of information being actively exchanged. The major features of

opinion leadership are credibility, exchange of information as well as advice

related to one core-category and two-way flow of information.

Opinion leaders are generally knowledgeable about one core category and

some related categories. There are some special types of opinion leaders

who differ in their area of knowledge and influence over the opinion seeker

generalized opinion leaders (knowledgeable about multiple product

categories), market mavens (knowledgeable about general market trends),

surrogate buyers (experts hired to make product-related recommendations

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and even purchase on behalf of the consumer), and purchase pals (strong and

weak tie people who accompany and assist an individual in shopping).

There are four methods to identify an opinion leader self-designating

method, sociometric method, key informant method, and objective method.

Word-of-mouth is an interpersonal communication channel through which

people share information. Word-of-mouth, if positive, can lead to huge gains

for the marketer, and if negative, can ruin the brand image. Marketers use

word-of-mouth in their favor by creating a buzz around a product to catch

the attention of the target segment and influence sales.

A family comprises two or more individuals, related by blood, marriage, or

adoption, staying together. There are primarily three types of family

structures married couple, nuclear family (married couple with children),

and extended family (married couple with children and their grandparents).

In recent times, various new kinds of family structures have emerged, like

single-parent households, same sex households, voluntary childless couples,

and unmarried couples. Pets, like cats and dogs, have also become a part of

the family and in some countries, are treated as companions who can also be

beneficiaries to guardian's (owners) property.

The family has four primary functions economic well-being of the family

members, emotional support, maintaining family lifestyle, and consumer

socialization. Consumer socialization is one of the most important functions

of the family and comprises processes through which people, especially

children, acquire skills, knowledge, andattitudes, relevant to their

functioning in the marketplace.

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This process is generally initiated by family, but media and friends are also

the influencing factors. The family lifecycle provides an important

segmentation tool to marketers based on its stages. The traditional familylifecycle stages are bachelorhood, honeymooners, parenthood, post

parenthood, and dissolution. The knowledge of family decision-making is

important for marketers to understand various family segments and their

purchase motivations.

There are four phases in the family purchase process problem or need

recognition, information search and evaluation of alternatives, final decision

to purchase, and post-purchase behavior. There are five major roles in the

purchase process initiator, influencer, decider, buyer, and user. Household

decision-making has three important players husband, wife, and children.

Certain stereotypes have been set, which help to determine whether the

decisions are taken by the husband or by the wife.

Broadly there are four types of family decisions husband-dominated, wife-

dominated, completely autonomous decisions by either husband or wife, and

joint decisions. In todays fast changing world, there has been a shift in

economic, social, and cultural environments of countries, leading to a shift

or, sometimes, complete reversal of the traditional husband-wife role, i.e.,

the wife is the bread earner and the husband, the child rearer.

The role of children as decision-makers has also changed. They are not only

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direct purchasers but also quite influential indirect purchasers, with the span

of their influence ranging from items directly consumed by them to a large

number of household purchase decisions. They also comprise a lucrative

future market, which marketers are trying hard to capture in the present.

Behavioral economics focuses on the kinds of attitudes people have towards

money and how they spend their money. Consumer sentiment is a significant

influence which relates to consumer spending patterns; it depends on the

employment scenario, the economy as a whole, the level of regular income,the quality of life, and stock market performance. Societies are generally

divided into various hierarchical social strata, which are dependent on

factors like education, occupation, and income.

Different societies have different strata, which may vary from as low as two

to as high as nine or ten. Most societies have three broad social classes

upper class, middle class, and lower class. People belonging to one

particular class can move to other classes, willingly or unwillingly, in an

open society. Such moves can significantly affect their consumption

behavior. Consumer tastes and preferences are influenced greatly by

consumer socialization, as well as economic, social, and cultural capital.

Marketers generally focus on affluent consumers, but recent trends have

shown increasing penetration in middle and lower social classes. Many

products and services are used by people as indicators of their social

standing and are known as status symbols.

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Culture is a set of socially transmitted beliefs, values, and customs. It is a

collective social phenomenon and influences the consumption behavior of

individuals throughout the world. Consumer beliefs are related to

consumers knowledge and both consumer beliefs and values help them in

the evaluation of stores, products, and brands.

Culture is dynamic in nature and changes with the changing needs of people.

It influences all human dealings and is learned through socialization.

Cultural meaning, in the context of consumer behavior, is believed to be

present in three locations culturally constituted world, consumer goods,

and individual consumer. The meanings are transferred from the world to

goods through advertising and the fashion system; and then from the goods

to the consumer through various rituals like possession ritual, exchange

ritual, grooming ritual, and divestment ritual.

Different cultures differ in their basic beliefs, values, and customs. The

learning of ones own culture is known as enculturation while learning of a

foreign culture is known as acculturation. Language, symbols and rituals

are also important ingredients of a culture and play an important part in

marketers communication to the target market, which may be a local

community or a foreign market.

There are three techniques to measure culture content analysis (the content

of local communication is reflective of the cultural values and way of life of

a society); consumer fieldwork (the use of qualitative and quantitative

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techniques of consumer research to understand the cultural behavior and its

influence on consumption); value measurement survey instruments (directly

asking people about their cultural values). There are three instruments of

value measurement survey the Rokeach Value Survey, List of Values

method (LOV), and Values and Lifestyle Survey (VALS).

Every culture has some core values; however, in the context of consumer

behavior, core values are determined on the basis of - acceptance by a

majority of people in a society, endurance over a long period of time, and

significant relationship with consumption behavior. Cultures are further

divided into smaller cultural units known as sub-cultures. The basis of

division can be nationality, social class, religion, region, language,

occupation, age, sex, etc. An individual can be a member of one or more

sub-cultures simultaneously.

Consumers all over the world are from different nations and have different

cultures. The world focus on free trade has led to a large number of

marketers targeting consumers in foreign countries. These marketers need to

understand that the purchase intention of the potential consumer is greatly

influenced by the image of the country-of-origin. The image of the country

can be related to some specific products or product categories. Consumers

from different countries can have different perceptions of products from a

country. The domestic consumers themselves may be greatly influenced by

the image of the country and may prefer a foreign product from a country

that they perceive to be good at producing such products.

Sometimes, the international relations among nations also influence the

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purchase intentions of the potential consumers. Consumers of nations with a

recent history of animosity may not buy products from each other even

though they are aware of the better quality of these products/brands.

Consumers may also feel that that it is immoral to buy foreign made

product/brands (consumer ethnocentrism).

Marketers often have to make choices on whether to adopt a global

marketing strategy or a local marketing strategy. Global strategy means that

there is no change in brand name, attributes and promotion strategy across

nations. Many marketers, however, prefer a more flexible approach to

marketing, using a mixture of both global and local strategies, i.e., a global

strategy with local implementation. Marketers often make the mistake of

ignoring the cultural differences in terms of consumer needs (product

problems), promotion, pricing, and distribution, leading to failure.

INDUSTRIAL PROFILE

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INSURANCE:

A state monopoly has little incentive to innovative or offers awide range of products. It can be seen by a lack of certain products from

LICs portfolio and lack of extensive risk categorization in several GIC

products such as health insurance. More competition in this business will

spur firms to offer several new products and more complex and extensive

risk categorization.

It would also result in better customer services and help improve

the variety and price of insurance products. The entry of new players would

speed up the spread of both life and general insurance. Spread of insurance

will be measured in terms of insurance penetration and measure of density.

With the entry of private players, it is expected that insurance

business roughly 400 billion rupees per year now, more than 20 per cent per

year even leaving aside the relatively under developed sectors of health

insurance, pen More importantly, it will also ensure a great mobilization of

funds that can be utilized for purpose of infrastructure development that was

a factor considered for globalization of insurance.

More importantly, it will also ensure a great mobilization of funds that

can be utilized for purpose of infrastructure development that was a factor

considered for globalization of insurance.

With allowing of holding of equity shares by foreign company eitheritself or through its subsidiary company or nominee not exceeding 26% of

paid up capital of Indian partners will be operated resulting into

supplementing domestic savings and Increasing economic progress of

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nation. Agreements of various ventures have already been made to be

discussed later on in this paper.

It has been estimated that insurance sector growth more than 3 times

the growth of economy in India. So business or domestic firms will attempt

to invest in insurance sector. Moreover, growth of insurance business in

India is 13 times the growth insurance in developed countries. So it is

natural, that foreign companies would be fostering a very strong desire to

invest something in Indian insurance business.

Most important not the least tremendous employment opportunities

will be created in the field of insurance which is burning problem of the

present day today issues.

GENERAL INSURANCE:

British rule also introduced general insurance in India. Initially, this

business was conducted through British and other foreign insurance

companies. The first general insurance company in India TRITAN general

insurance company limited was established at Calcutta in 1950. the first

such type of company was established by Indians in Mumbai in 1907 with

the name Indian mercantile insurance company limited at the time of

independence, about 40% of the total general insurance business in India

was done buy the British and other foreign insurance companies, but after

independence this percentage continuously declined. In 1971, the

government took over the management of all general insurance companies.

General insurance business in the country was nationalized with effect

from 1 January, 1973 by the general insurance Business (Nationalization)

act, 1972.

More than 100 non-life insurance companies including branches of

foreign companies operating with in the country were amalgamated and

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grouped into four companies, viz., the national insurance company limited

the new India assurance company limited the oriental insurance company

limited and the united India insurance company limited with head office at

Kolkata, Mumbai, New Delhi and Chennai, respectively. General insurance

corporation (GIC) which was the holding company of the four public sector

general insurance companies has since been delinked from the later and has

been approved as the Indian Reinsure since 3 November 2000.the share

capital of GIC and that of the four companies are held by the government

companies registered under the companies act.

The general insurance business has grown in spread and volume after

nationalization. The four companies have 2,699 branch offices, 1,360

divisional offices and 92 regional offices spread all over the country. GIC

and its subsidiaries have representation either directly through branches or

agencies in 16 countries and through associate/locally incorporated

subsidiary companies in 14 other countries.

The net profit of the industry during 2001-200 amounted to 12,229

crore, as against Rs.10, 772 crore during 2000-2001 representing a growth of

1352 percent over the premium income of last year.

Before nationalization, insurance business was centralized in urban

areas only. GIC with its central office in Pune and seven zonal offices at

Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Kanpur and Bhopal operates

through 100 divisional offices in important cities and 2048 branch offices.

As on 31 march, 2003 GIC had 9.88 lakh agents spread over the country.

GIC also entered the international insurance market and opened its offices in

England, Mauritius and Fiji.

The corporation has registered a joint venture company-life insurance

corporation (Nepal) limited in Katmandu on 26 December, 2000 in

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collaboration with a local industrial group. An off-shore company GIC

(Mauritius) off-shore limited has also been registered on 19 January, 2001 to

tap the African insurance market.

The total business of GIC during 2002-2003 was Rs 1,76,088 crore a

sum assured under 239.3 lakh policies. GIC group insurance business during

2002-2003 was Rs.1645 crore providing covers to 18.32 lakh people

LIFE INSURANCE:

The Britishers introduced life insurance to India. A British firm in

1818 established the oriental life insurance company at Calcutta. In 1823,

Bombay Life Insurance Company was established at Mumbai and in 1829

madras equitable life insurance society was established at madras (Chennai).

Till 1871, these companies collected 15-20 percent more premiums from

Indian as they treated Indians living standard below the normal, in 1871,

Bombay mutual life assurance society was established which started life

insurance of Indians on general premium rate for the first time. Indian

insurance company act was implemented which aimed at collecting

statistical information related to insurances of Indians and foreigners. In

1938, all previous acts were integrated and insurance act 1938 came into

force. After independence, this act was amended in 1950. Till 1956, 154

Indian, 16 non-Indian insurance companies and 75 provident committees

were working in life insurance business of the country.

On January 19, 1956 central government tool over the charge of all

these 245 Indian and foreign insurance companies and on September 1, 1956

these companies were nationalized. Under an act passed by the parliament

on September 1, 1956 life insurance Corporation of India was established

with the capital of Rs. 5 crores given by the government of India. Malhotra

committee, constituted off making recommendations for insurance sector, in

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its report submitted in January 1994, recommended enhancing the capital

base of Rs. 5 crore to Rs. 200 crore fro LIC, but the Government did not

accept it.

LIC was established to spread the message of life insurance savings

for nation building activities. Keeping in view the recommendations of

administrative Reform commission. Indian life insurance corporation

accepted a few important objectives in 1974, which are as follows: to extend

the sphere of life insurance and to cover every person eligible for insurance

under insurance umbrella. Special attention will be provided to give life

insurance cover to economically weaker section of the society on

appropriate and bearable cost secondly, to mobilize maximum savings of the

people by making insured savings more attractive thirdly, to ensure

economic use of resources collected from policy holders and finally, under

changing social and economic structure of the country efforts will be made

to meet the life insurance requirements of

Various stratas of the society.

Reforms in insurance sector:

Insurance sector constitutes an important segment to financial market

in India and plays a predominant role in the formation of capital in the

country. The reforms in the insurance sector started with the enactment of

insurance regulatory and development authority act 1999. The act paved the

way for the entry of private insurance companies into the insurance market

and also constitution of insurance Regulation and Development Authority

(IRDA).

Insurance Regulatory and Development Authority:

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The insurance regulatory and development authority was constituted

on 19 April 2000 to protect the interest of the holders of insurance policies

and to regulate, promote and ensure orderly growth of the insurance

industry. The authority consists of a chairperson, four whole-time members

and part-time members.

For regulations the insurance sector, the authority has been issuing

regulations covering almost the entire segment of insurance industry namely,

regulation on insurance agents, solvency margin, re-insurance, registration

of insurers, obligation of insurers to rural and social sector, accounting

procedure, etc.

Insurance (amendment) act, 2002:

The government, functioning of the opened up insurance sector, has

enacted insurance act, 2002. The act relates to introduction of brokers as

intermediaries, allowing more flexile in the eligibility qualification for

corporate agents, allowing more flexible mode of payment of premium

through credit cards, smart cards, over interknit, etc. Change in the

allocation of surplus between share holders and policy holders, direct entry

of co-operatives in the insurance sector and some other consequential

amendments which are of a technical nature for the smooth functioning of

the opened up sector.

General Insurance Business (Nationalization) Amendment Act, 2002:

With the enactment of IRDI act, 1999 it was necessary to nominate

Indian re-insurer under insurance act, 1938. The government decided that

general insurance companies should be declared as Indian Re-insurer. Since

under the act, a re-insurer cannot underwrite general insurance business.

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Recommendations of Malhotra Committee for improving

insurance sector:

The government of India constituted a committee for recommending

improvements in insurance sector under the chairmanship of Dr. R. N.

Malhotra, Ex-Governor of RBI, in April 1993. On January 7, 1994 the

committee submitted its recommendations to the finance minister. Some of

the important recommendations are as follows.

Liberalization of insurance industry:

The committee has recommended for liberalizing insurance industry:

The private sector should also be permitted in insurance sector, but the

same company should not permit to perform both life insurance and

general insurance business.

The minimum paid-up capital for the now company should be Rs. 100

crore included a minimum subscription of 26% and maximum of 40%

from promoters.

No other equity holder, excluding the promoters of private insurancecompanies, Should be granted equity share exceeding 1% of total equity.

Co-operative societies at state level should be permitted to perform

business with the minimum paid-up capital of Rs.100 crore

Foreign insurance companies should be permitted to operate in India on

selective basis and they should be granted permission only of they

perform business by establishing a joint enterprise with Indian promoters.

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Restructuring of insurance industry:

The committee also put recommendations for restructuring insurance

industry:

(a) All the four associate companies of GIC should be granted permission to

perform their business independently and GIC should work only as

Reinsurance Company.

(1)The existing share capital of GIC should be increased from Rs. 107.5

crore to Rs.200 crore, which should included 50% share of the

government and the rest shares should be opened for the general public

(through a certain percentage of share should be reserved for the

employees of the corporation)

(2)The existing paid-up capital for all associate companies of GIC (which is

at present Rs.40 crore for every company and fully financed by GIC)

should be increased up to Rs.100 crore. The capital of all these

companies should include the government share of 50% and the

remaining share should be opened for the general public.

(3)The committee also recommended to increase the paid-up capital of LIC

form existing level of Rs.5 crore to Rs.200 crore (again 50% for the

government and rest for the public)

Regulation of insurance business:

The committee has put following recommendations for regulation

insurance business

(i) All old and new insurance companies should be regulating under

insurance act.

(ii) Controller of insurance should be given all the responsibilities

under insurance act.

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(iii) Insurance regulatory authority (IRA) should be established in

insurance sector on the lines of SEBI and IRA should be granted

complete functional autonomy.

(iv) IRA should have a permanent source for financing its activities

and for this IRA should be permitted to charge a levy of 0.5% on

annual incomes of insurance companies.

Rural insurance:

1) New insurance companies entering into insurance industry should

perform a minimum predetermined insurance in rural sector and they

should attain this limit compulsorily.

Postal life insurance should be used to promote life insurance business

in rural areas.

Insurance surveyors:

License system for insurance surveyors should be abolished and

insurance companies should be granted permission to recruit the

surveyors of their own

At present, any claim of Rs.20, 000 or above comes under the

enquiry of the surveyor. The committee has recommended

extending this minimum limit on Rs.1 lakh.

Insurance companies should be permitted to settle the claims up to

Rs.1 lakh on primary survey basis.

INSURANCE TODAY:

In 1993, Malhotra Committee, headed by former Finance Secretary

and RBI Governor R. N. Malhotra, was formed to evaluate the Indian

insurance industry and recommend its future direction. The Malhotra

committee was set up with the objective of complementing the reforms

initiated in the financial sector.

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With the setup of Insurance Regulatory Development Authority

(IRDA) the reforms started in the Insurance sector. It has became necessary

as if we compare our Insurance penetration and per capita premium we are

much behind then the rest of the world. The table above gives the statistics

for the year 2000.

With the expected increase in per capita income to 6% for the next 10

year and with the improvement in the awareness levels the demand for

insurance is expected to grow. As per an independent consultancy company,

Monitor Group has estimated a growth form Rs.218 Billion to Rs.1003

Billion by 2008. The estimations seems achievable as the performance of 13

life Insurance players in India for the year 2002-2003 (up to October, based

on the first year premium) is Rs.66.683 million being LIC the biggest

contributor with Rs. 59,187 million. As of now LIC has 2050 branches in 7

zones with strong team of 5, 60,000 agents.

IMPACT OF GLOBALISATION:

The introduction of private players in the industry has added colours to

the dull industry. The initiatives taken by the private players are very

competitive and have given immense competition to the on time monopoly

of the market LIC. Since the advent of the private players in the market the

industry has seen new and innovative steps taken by the players in the

sector. The new players have improved the service quality of the insurance.

As a result LIC down the years have seen the declining in its career. The

market share was distributed among the private players.

Though LIC still holds 75% of the insurance sectors the upcoming

nature of these private players are enough to give more competition to LIC

in the near future. LIC market share has decreased from 95% (2002-03) to

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Rs450 billion. Together with banking services, it adds about 7 per cent to the

countrys GDP.

Gross premium collection is nearly 2 per cent of GDP and funds

available with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance

cover while health insurance and non-life insurance continues to be below

international standards. And this part of the population is also subject to

weak social security and pension systems with hardly any old age income

security. This it is an indicator that growth potential for the insurance sector

is immense.

A well-developed and evolved insurance sector is needed for

economic development as it provides long term funds for infrastructure

development and at the same time strengthens the risk taking ability. It is

estimated that over the next ten years India would require investments of the

order of one trillion US dollar. The Insurance sector, to some extent, can

enable investments in infrastructure development to sustain economic

growth of the country.

CHALLENGES BEFORE THE INDUSTRY:

New age companies have started their business as discussed earlier.

Some of these companies have been able to float 3 or 4 products only and

some have targeted to achieve the level of 8 or 10 products. At present, these

companies are not in a position to pose any challenge to LIC and all other

four companies operating in general insurance sector, but if we see the

quality and standards of the products which they issued, they can certainly

be a challenge in future. Because the challenge in the entire environment

caused by globalization and liberalization the industry is facing the

following challenges.

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The existing insurer, LIC and GIC, have created a large group of

dissatisfied customers due to the poor quality of service. Hence there will be

shift of large number of customers from LIC and GIC to the private insurers.

1) LIC may face problem of surrender of a large number of policies, as new

insurers will woo them by offer of innovative products at lower prices.

2) The corporate clients under group schemes and salary savings schemes

may shift their loyalty from LIC to the private insurers.

3) There is a likelihood of exit of young dynamic managers from LIC to the

private insurer, as they will get higher package of remuneration.

4) LIC has overstaffing and with the introduction of full computerization, a

large number of the employees will be surplus. However they cannot be

retrenched. Hence the operating costs of LIC will not be reduced. This

will be a disadvantage in the competitive market, as the new insurers will

operate with lean office and high technology to reduce the operating

costs.

5) GIC and its four subsidiary companies are going to face more challenges,

because their management expenses are very high due to surplus staff.

They cant reduce their number due to service rules.

6) Management of claims will put strain on the financial resources, GIC and

its subsidiaries since it is not up the mark.

7) LIC has more than to 60 products and GLC has more than 180 products

in their kitty, which are outdated in the present context as they are not

suitable to the changing needs of the customers. Not only that they are

not competent enough to complete with the new products offered by

foreign companies in the market.

8) Reaching the consumer expectations on par with foreign companies such

as better yield and much improved quality of service particularly in the

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area of settlement of claims, issue of new policies, transfer of the policies

and revival of policies in the liberalized market is very difficult to LIC

and GIC.

9) Intense competition from new insurers in winning the consumers by

multi-distribution channels, which will include agents, brokers, corporate

intermediaries, bank branches, affinity groups and direct marketing

through telesales and interest.

10) The market very soon will be flooded by a large number of products by

fairly large number of insurers operating in the Indian market. The

existing level of awareness of the consumers for insurance products is

very low. It is so because only 62% of the Indian population is literate

and less than 10% educated. Even the educated consumers are ignorant

about the various products of the insurance.

11) The insurers will have to face an acute problem of the redressal of the

consumers, grievances for deficiency in products and services.

12) Increasing awareness will bring number of legal cases filled by the

consumers against insurers is likely to increase substantially in future.

13) Major challenges in canalizing the growth of insurance sector are

product innovation, distribution network, investment management,

customer service and education.

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future needs. Life insurance can aid your family on a rainy day, at a time

when help from every quarter is welcome and of course, since some plans

also double up as a savings instrument, they assist you in planning for such

future needs

Traditionally, buying life insurance has always formed an integral part

of an individuals annual tax planning exercise. While it is important for

individuals to have life cover, it is equally important that they buy insurance

keeping both their long-term financial goals and their tax planning in mind.

This note explains the role of life insurance in an individuals tax planning

exercise while also evaluating the various options available at ones

disposal.

Life is full of dangers, but with insurance, you can at least ensure that

you and your dependents dont suffer. Its easier to walk the tightrope if you

know there is a safety net. You should try and take cover for all insurable

risks. If you are aware of the major risks and buy the right products, you can

cover quite a few bases. The major insurable risks are as follows:

1 Life

2 Health

3 Income

4 Professional Hazards

5 Assets

6 Outliving Wealth

7 Debt Repayment

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Types of Insurance Policies:

A) Term Plans:

A term plan is the most basic type of life insurance plan. It is the most

cost-effective life insurance product. Unlike other plans that come with an

investment or savings component, term plans are products that cover only

your life. This means your dependents or nominees get the sum assured on

your death. A term plan offers life cover at a very nominal cost. This is due

to the fact that term plan premiums include only mortality charges and sales

and administration expenses. There is no savings element.

B) Money Back Plan:

A money back plan aims to give you a certain sum of money at

regular intervals; simultaneously it also provides you with life cover. Money

back plans are especially useful in case you need money at regular intervals

for your childs education, marriage, etc.

C) Unit Linked Insurance Plans (ULIPS):

ULIPs basically work like a mutual fund with a life cover thrown in.They invest the premium in market-linked instruments like stocks, corporate

bonds and government securities (gsecs). The basic difference between

ULIPs and traditional insurance plans is that while traditional plans invest

mostly in bonds and gsecs, ULIPs mandate is to invest a major portion of

their corpus in stocks.

However, investments in ULIP should be in tune with the individuals

risk appetite. ULIPs offer flexibility to the policy holder the policy holder

can shift his money between equity and debt in varying proportions.

D) Pension / Retirement Plans:

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Planning for retirement is an important exercise for any individual. A

retirement plan from a life insurance company helps an individual insure his

life for a specific sum assured. At the same time, it helps him in

accumulating a corpus, which he receives at the time of retirement.

E) Endowment Plans:

Individuals with a low risk appetite, who want an insurance cover,

which will also give them returns on maturity could consider buying

traditional endowment plans. Such plans invest most of their money in

specified debt instruments like corporate bonds, government securities

(gsecs) and the money market.

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COMPANY PROFILE

Kotak Mahindra is one of India's leading financial organizations,

offering a wide range of financial services that encompass every sphere of

life. From commercial banking, to stock broking, to mutual funds, to life

insurance, to investment banking, the group caters to the diverse financial

needs of individuals and corporate.

The group has a net worth of over Rs. 6,327 crore and has a

distribution network of more than 1300 branches, franchisees, representative

offices and satellite offices across cities and towns in India and offices in

New York, London, San Francisco, Dubai, Mauritius and Singapore. The

Group services around 5.9 million customer accounts.

Group Management

Mr.UdayKotak Executive Vice Chairman & Managing Director

Mr.Jayaram

Mr. Dipak Gupta

Our Story:

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management

Finance Limited. This company was promoted by Uday Kotak, Sidney A. A.

Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand

Mahindra took a stake in 1986, and that's when the company changed its

name to Kotak Mahindra Finance Limited.

Since then it's been a steady and confident journey to growth and success.

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting

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1987Kotak Mahindra Finance Limited enters the Lease and Hire Purchase

market

1990The Auto Finance division is started

1991The Investment Banking Division is started. Takes over FICOM, one of

India's largest financial retail marketing networks

1992Enters 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 Prime Limited (formerly known as 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

2000: Kotak Mahindra ties up with Old Mutual plc. For the Life Insurance

business.

Kotak Securities launches its on-line broking site (now

www.kotaksecurities.com). 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 a commercial bank - the first

Indian company to do so.

2004: Launches India Growth Fund, a private equity fund.

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2005: KotakGroup realigns joint venture in Ford Credit; Buys Kotak

Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and

sells Ford credit Kotak Mahindra.

2006: Launches a real estate fund bought the 25% stake held by Goldman

Sachs in Kotak Mahindra Capital Company and Kotak Securities Kotak

Mahindra Old Mutual Life Insurance Ltd.

Kotak Mahindra Old Mutual Life Insurance is a 74:26 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.

Kotak Mahindra Groups:

Kotak Mahindra is one of India's leading financial organizations, offering a

wide range of financial services that encompass every sphere of life. From

commercial banking, to stock broking, to mutual funds, to life insurance, to

investment banking, the group caters to the diverse financial needs of

individuals and corporate.

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The group has a net worth of over Rs. 6,327 crore and has a distribution

network of more than 1300 branches, franchisees, representative offices and

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

London, San Francisco, Dubai, Mauritius and Singapore. The Group

services around 5.9 million customer accounts.

The journey so far

In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held

by Ford Credit International (FCI) and FCI acquired the stake in Ford Credit

Kotak Mahindra (FCKM) held by Kotak Group.

In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in

Kotak Capital and Kotak Securities.

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Key group companies and their businesses:

Kotak Mahindra Bank:

The Kotak Mahindra Group's flagship company, Kotak Mahindra

Finance Ltd which was established in 1985, was converted into a bank-

Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian

company to convert into a Bank. Its banking operations offer a central

platform for customer relationships across the group's various businesses.

The bank has presence in Commercial Vehicles, Retail Finance, Corporate

Banking, Treasury and Housing Finance.

Kotak Mahindra Capital Company; Kotak Mahindra Capital Company

Limited (KMCC) is India's premier Investment Bank. KMCC's core

business areas include Equity Issuances, Mergers & Acquisitions, Structured

Finance and Advisory Services.

Kotak Securities:

Kotak Securities Ltd. is one of India's largest brokerage and securities

distribution houses. Over the years, Kotak Securities has been one of the

leading investment broking houses catering to the needs of both institutional

and non-institutional investor categories with presence all over the country

through franchisees and coordinators. Kotak Securities Ltd. offers online and

offline services based on well-researched expertise and financial products to

non-institutional investors.

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Kotak Mahindra Prime:

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak

Mahindra Primus Limited) has been formed with the objective of financing

the retail and wholesale trade of passenger and multi utility vehicles in India.

KMP offers customers retail finance for both new as well as used cars and

wholesale finance to dealers in the automobile trade. KMP continues to be

among the leading car finance companies in India.

Kotak Mahindra Asset Management Company:

Kotak Mahindra Asset Management Company Kotak Mahindra Asset

Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank,

is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF

manages funds in excess of Rs 13,886 crore and offers schemes catering to

investors with varying risk-return profiles. It was the first fund house in the

country to launch a dedicated gilt scheme investing only in government

securities.

Kotak Mahindra Old Mutual Life Insurance Limited:

Kotak Mahindra Old Mutual Life Insurance Limited is a joint

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

Insurance helps customers to take important financial decisions at every

stage in life by offering them a wide range of innovative life insurance

products, to make them financially independent.

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Kotak's International Business:

With a presence outside India since 1994, the international

subsidiaries of Kotak Mahindra Bank Ltd. operating through offices in

London, New York, Dubai, San Francisco, Singapore and Mauritius

specialize in providing asset management services to specialist overseas

investors seeking to invest into India. The offerings are differentiated India

investment solutions that span all major asset classes including listed equity,

private equity and real estate. The subsidiaries also lead manage and

underwrite international issuances of securities. With its commendable track

record, large presence on the ground and a team of dedicated staff in India,

Kotaks international arm is suitably positioned for managing assets in the

Indian Capital markets.

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PRODUCT PROFILE

AND

COMPETITATIVE STRATEGY

KOTAK TERM PLAN

Overview of Insurance:

Life insurance has traditionally been looked upon pre-dominantly as

an avenue that offers tax benefits while also doubling up as a saving

instrument. The purpose of life insurance is to indemnify the nominees in

case of an eventuality to the insured. In other words, life insurance is

intended to secure the financial future of the nominees in the absence of the

person insured.

The purpose of buying a life insurance is to protect your dependants

from any financial difficulties in your absence. It helps individuals in

providing them with the twin benefits of insuring themselves while at the

same time acting as a compulsory savings instrument to take care of their

future needs. Life insurance can aid your family on a rainy day, at a time

when help from every quarter is welcome and of course, since some plans

also double up as a savings instrument, they assist you in planning for such

future needs

Traditionally, buying life insurance has always formed an integral part

of an individuals annual tax planning exercise. While it is important for

individuals to have life cover, it is equally important that they buy insurance

keeping both their long-term financial goals and their tax planning in mind.

This note explains the role of life insurance in an individuals tax planning

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to you from the uncertainties of life and ensure that they are able to cope with

the financial obligations, Kotak Life Insurance has designed the Kotak Term

Plan.

Kotak Term Plan is a pure risk cover plan that is truly an economical

means of providing you with a high level of financial protection. Our special

Kotak Preferred Term Plan offers special premium rates to non-tobacco users

and women, for a sum assured of Rs. 25 lakhs or more.

ADVANTAGES:

Truly a low cost insurance plan that offers high cover at low premiums

Special rates for women and non-

tobacco users Choice of Premium Payment Options regular, single and

limited premium payment Option to convert to any other plan.

KEY FEATURE:

The following non-participating value-adds for a nominal premium at the

time of taking your policy, subject to aggregate premium on all value-adds

(except Critical Illness Benefit) not exceeding 30% of the basic Kotak Term

Plan premium, Truly a low cost insuranceplan Kotak Term Plans offer the

benefit of high life cover at economical prices.

Special Premium Rates:

Term Plan offers women and non-tobacco users with even lower

premium rates for a sum assured of Rs. 25 lakhs and above.

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Flexibility in payment of premiums:

Premium you may choose from the following premium payment terms

- Single, Regular and Limited Payment (3 and 5 years) options. If you opt

for limited premium payment option you can pay your premiums annually,

half yearly, quarterly or monthly*.

DEATH BENEFITS:

In the event of death during the term, the beneficiary would receive the

sum assured

CONVERTION OPTIONS:

Your Kotak Term Plan to any other plan offered by Kotak Life

Insurance (except for another term plan) provided there are at least 5 years

before cover ceases.

Value Adds of Kotak Term Plan:

You may avail of the following benefits for a nominal additional

premium if you have selected regular premium payment option.

Accidental Death Benefit (ADB)

Permanent Disability Benefit (PDB)

Critical Illness Benefit (CIB)

Tax Benefits:

You can avail of tax benefits under Section 80C and Section 10 (10D)

of Income Tax Act, 1961. Premiums paid for Critical Illness Benefit (CIB)

qualify for a deduction under Section 80D. Tax benefits are subject to

change in the tax laws. You are advised to consult your Tax Advisor for

details.

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KOTAK FLEXI PLAN

In this policy, the investment the investment portfolio is borne by the

policyholder risk in.

Overview:

Managing one's finances judiciously remains a nightmare for most. It is

not just about managing your current expenses, but also about creating

wealth out of your current savings to meet your future financial and lifestyle

goals when you need those most. Did anyone say it better be left to the

experts.

Kotak Flexi plan offers you an ideal market-linked investment plan that

helps you create your own financial future by offering you the flexibility and

control over your money. Not just that, it comes with a unique "Seal of

Guarantee" to give you the best of bullish markets and ensure no capital

erosion in case of bearish times.

Advantages:

Unlimited upside potential with no downside market risk

Wide range of funds to suit your risk appetite

Limited Premium or Regular premium payment option to suit your

finances

Add to your Investments any time through easy top-ups

Tax-free switching to help you maximize returns

Easy liquidity through partial withdraws.

Key Features:

Kotak Flexi Plan offers a wide range of fund options to help you plan for

your financial goals vis--vis your risk appetite- Guaranteed/Dynamic

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Growth; Guaranteed/Dynamic Balanced; Guaranteed/Dynamic Bond;

Guaranteed/Dynamic Gilt; Guaranteed/Dynamic Floating Rate; and

Guaranteed/Dynamic Money Market Fund and Aggressive Growth.

Available only for the Top-up Account.

Note: The Guaranteed Funds are available only with the Main Account

whereas the Dynamic Funds range is available only on the Top-up Account

Seal Guarantee (of Maturity Benefit):

The unique offer of this plan is its Guaranteed Maturity Value

to make sure you enjoy unlimited upside potential from bull markets, while

there is no downside risk in case of falling markets. At the time of maturity,

higher of Guaranteed Maturity Value^ or fund value in the Main Account;

plus fund value in the Top-Up Account will be payable.

Protection for your family (Death Benefit):

In the unfortunate event of death, your beneficiary would receive the

higher of basic sum assured or the market value in the Main Account; higher

plus fund value in top up accounts; if any.

The plan also offers additional cover by way of 7 riders.

Tax Benefits:

Tax Benefit can be availed under section 80C and 10(10D) of Income Tax

Act, 1961. Section 80D will apply in case Critical Illness benefit is opted

for. Tax benefits are subject to change in tax laws. Please consult your tax

advisor for details

Kotak smart advantage plan

In this policy, the investment risk in the investment portfolio is borne by the

policyholder

Overview:

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How you shape your tomorrow depends greatly on how you build on

your today. Kotak Smart Advantage addresses you current financial needs so

that you do not have to worry about building on for tomorrow. It provides an

optimal mix of insurance and investments, thus protecting your family against

any odds along with preparing a corpus for your future.

Kotak Smart Advantage is an intelligent unit-linked plan that is based

upon the idea of regular savings and systematic accumulation of wealth in the

long term. It offers guaranteed returns coupled with the benefit of flexible life

cover and up to 100% allocation of your money, making it best suited for an

individuals financial needs.

Advantages:

Guaranteed returns of up to 275% of the first years premium at

maturity

Loyalty bonus at regular intervals to boost the fund value

Up to 100% allocation of premiums

Flexibility to choose Life Cover

Unique funds offering you maximum opportunity for growth

Key Features:

Guaranteed Additions Kotak Smart Advantage Plan:

It offers guaranteed returns. Your first years premium contributes

towards guaranteeing you an Assured Addition Advantage that boosts

your fund value at regular intervals throughout the term of the policy.

The longer your premium paying term, the higher will be the value of the

advantage.

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The Assured Addition Advantage is as a powerful combination of the

following two benefits, both of which are paid, provided your policy is in

force and all premiums are fully paid up to date:

Fixed Advantage:

The Fixed Advantage benefit is an assured value guaranteed at the end

of your premium payment term. This benefit is calculated as a percentage

of your first year premium depending on the premium payment term

chosen.

DynamicAdvantage:

The Dynamic Advantage benefit is an assured bonus addition credited

to your fund value at the end of every 10th, 15th, 20th, 25th and 30th

policy year. This benefit will be calculated as a percentage of the average

value of funds in the three years preceding the benefit allocation.

Wealth Maximization Avenue:

This plan offers you 3 well-defined fund options to manage your

capital according to your risk appetite over the term of the policy,

Opportunities Fund, Dynamic Floor Fund Dynamic Bond Fund.

High Premium Allocation:

Kotak Smart Advantage Plan gives you 100% premium allocation for

annual premium sizes equal to and above Rs.36,000, resulting in greater

returns. Low premium allocation charges of up to 2% are charged for annual

premiums below Rs.36,000. These charges reduce to 0% from the 11th year

onwards.

Protection for your family (Death Benefit):

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In the unfortunate event of death within the term of the policy, your

beneficiary would receive the sum assured or the fund value in the Main

Account plus the Fixed Advantage Benefit, whichever is higher, plus the

fund value in the Top-up account. This plan offers you flexible life cover

options to choose from for the same annual premium.

Tax Benefits:

Tax Benefits can be availed under section 80C and 10(10D) of

Income Tax Act, 1961. Tax benefits are subject to change in tax laws. Please

consult your tax advisor for details.

Kotak money back plan

Overview

This plan offers the key benefit of cash lump sums at periodic intervals of

five years ensuring that you are able to meet any of your financial

obligations. Besides protecting your life throughout the term, you are also

entitled to a guaranteed addition and bonus on maturity. So not only do you

enjoy regular cash flows during the policy term, but also get a substantial

life cover, which increases every year.

If you would like to receive cash lump sums at regular intervals to plan for

expenses like children's education, purchase of an asset or to meet any other

unforeseen contingency.

If you are looking for guaranteed additions to your money along with a

lump sum on maturity.

If you want a plan that offers you not just regular cash back and bonuses,

but also a life cover that automatically increases each year.

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Advantages:

Cash lump sums at intervals of 5 years

Guaranteed Additions on maturity

Death benefit increasing at 7% of sum assured at the end of each year

Ebonuses on the plan.

Key Features

Bonus:

The premiums paid by you, net of charges are deposited in the

Accumulation Account and the bonus declared is credited to this account at

the end of each financial year. During the term of the plan, returns are

earned on a compounding basis accumulating to create a substantial corpus

for you. This bonus will be over and above the Guaranteed Addition you

receive on maturity.

Maturity benefit:

This is a participating plan that has been designed to offer you regular

cash back at intervals of 5 years.

IncreasingDeathBenefit:

We realize that with increasing inflation, you are concerned about the

eroding value of money and therefore the eroding value of your life cover.

The Kotak Money Back Plan has been designed totakcare of this concern of

yours.

The insurance cover that you enjoy on the policy will automatically increase

by 7% of sum assured at the end of each year so that your life cover can

keep pace with the rate of inflation

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What makes this future attractive is that while we increase your cover

by 7% of sum assured each year, you are neither required to undergo any

further medical tests nor does your premium commitment change.

Tax Benefits:

Section 80C, 10(10D) of Income Tax Act, 1961 would apply.

Premiums paid for Critical Illness Benefit qualify for a deduction under

Section 80D. Tax benefits are subject to change in tax laws. You are advised

to consult your tax advisor for details.

Kotak child advantage plan

Overview:

The Kotak Child Advantage Plan is an investment plan designed to meet

your child's future financial needs. It's a plan that gives your child the

"azaadi" to realize his dreams. This is a participating plan.

If you have child below 17 years and are looking forward to planning his/her

future.

If you want to ensure that your child is secure even if you are no longer able

to support him/her.

Advantages:

On maturity you would receive the higher of the basic sum assured or the

Accumulation Account.

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The amount available in the Accumulation Account is invested in

various financial instruments (as per IRDA regulations) so your money

works hard to earn more for your child.

The Automatic Cover Maintenance facility ensures the policy remains

in force even if you miss premium payments. This facility is available

after full premiums for the first three years are paid.

You can take a loan against this plan, 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 have the benefit of a 15 day free look period.

Death of Parent (Premium Payer)

In case the parent has opted for the Life Guardian Benefit (LGB), all

future premiums on the policy would be waived and the policy will

continue till maturity. On maturity, the beneficiary would be entitled

the higher of the basic sum assured or the Accumulation Account.

If the policy has been in force for five years or if the life insured was at

least 18 years old, the beneficiary will receive either the sujm assured or

Accumulation Account whichever is higher, as on the date of death.

If the death occurs within five years from commencement of policy and

if the insured was less than 18 years old, the death benefit would be

either the total of all premiums paid (excluding rider premiums) so far or

the surrender value at that time, whichever is higher.

Tax Benefits:

Section 80C, 10(10D) of Income Tax Act, 1961 would apply. Tax

benefits are subject to change in tax laws. You are advised to consult your

tax advisor for details.

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KOTAK RETIREMENT INVEST PLAN

With the cost of living constantly on the rise, even the most basic

commodities are likely to become costlier by the day. By the time you retire,

the costs of essentials like milk and vegetables would probably be five fold

and Medical costs would have doubled or more. Theres no better time than

now to plan for what should be the best years of life - your retirement!

An ideal retirement solution is one that gives you complete flexibility

and peace of mind, not only while you save for your retirement but also after

you retire. To help you plan better towards the golden years of your life, we

present to you the Kotak Retirement Investment Plan.

An investment plan designed to ensure that your hard earned money is

safe from the vagaries of the capital markets, Kotak Retirement Investment

Plan comes with Guaranteed Maturity Value^. A spectrum of fund options

makes sure that your investments grow over the years, fetching handsome

returns.

How does this plan work?

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Step 1: Decide the amount of savings (premiums) you may wish to allocate

to build your retirement kitty

Step 2: Choose the retirement (vesting) age between the age of 45 and 99

years (subject to the minimum//maximum term criteria)

Step 3: Select the fund options to balance your risk profile and the tenure of

investment

DATA ANALYSIS AND INTERPRETATION

1. How many Genders in the life insurance sector?

MALE 58

FEMALE 42

(Table-1)

INTERPRETATION:

The above table showing 58% are male and 42%are female consumers

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The above table shows that professionals in the insurance sector as

employees are 38%, students 20% and others 42%.

The diagram showing occupation

38

20

42

0

5

10

15

20

25

30

35

40

45

Emplyee Students Other

Series1

(Graph 2)

3. Are you aware of any life insurance products of kotak Mahindra?

YES 62

NO 30

Cant say 8

(Table - 3)

INTERPRETATION:

The above table sows that people are aware of kotak

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products know people are62%,dont know people are 30% and cant

say people are 8%.

aware of kotak products

62

30

8

0

10

20

30

40

50

60

70

yes no cont say

Series1

(Graph 3)

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4. Which company insurance youre using?

ICICI 40

HDFC 22

KOTAK 26

Any other 12(Table-4)

INTERPRETATION:

The above table shows that using of different people in insurance sectorICICI 40%, HDFC 22%, KOTAK 26% and other are 12% users.

Which company your using

40

22

26

12

0

5

1015

20

25

30

35

40

45

ICICI HDFC KOTAK Any other

Series1

(Graph 4)

5. What type of insurance plan youre using?

Traditional Plan 40

Unit linked Plan 60

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INTERPRETATION:

The above table shows that what type of plan using consumers they are

using Traditional plan 40% and Unit linked plan using 60%.

The diagram showing the what type of

insurence plan your using

40

60

0

10

20

30

4050

60

70

Traditional plan Unit linked insurance

plan

Series1

6. What makes you to purchase this insurance plan?

Innovation 16

Returns 58

Service 18

Availability 8

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INTERPRETATION:

The above table shows that what type of purchasing insurance plan that

Innovation is 16%, Return 58%, service18% and Availability 8%.

16

58

188

0

10

20

30

40

50

60

Innovation Return Service Availability

THE DIAGRAM SHOWING PURCHASRS IN THE

INSURENCE PLAN

Series1

7. How do you feel about the kotak insurance products?

Excellent 26

Very good 30

Good 38

Poor 6

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INTERPRETATION:

The above table shows that how do feel they kotak plans Excellent 26%,

very good 30%, good 38%, poor 6%.

2630

38

6

0

5

10

15

20

25

30

35

40

Excellent Very good Good Poor

THE DIAGRAM SHOWING THE FEELING ABOUT

THE PRODUCTS OF KOTAK INSURANCE

Series1

8. How did you came to know about it?

News papers 22

Friends 40

Advertisement 28

Other 10

INTERPRETATION:

The above table shows that ho

project sravanthi

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