Kotak Main Page

8/8/2019 Kotak Main Page

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ContentsContents

1. Introduction

2. Objectives and Scope of study

3. Methodological Assumptions

4. Company Profile

5. Kotak Life Insurance Policies

6. Data Analysis

7. Sales graph

8. Suggestions

9. Conclusion

10. Questionnaire

B.R.B. College of Commerce, Raichur.


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IntroductionIntroduction

Meaning of insurance:

The Head or the bread earner of the family generally supports thefamily for their basic needs, such as, food, clothing and shelter bybringing income at regular intervals. So long as he or she lives and theincome is received steadily, the family is secure; but the untimely deathor disability of that person puts the family in a very difficult situation, andsometimes in stark poverty. Uncertainty of death is inherent in humanlife.

It is the uncertainty that is the risk, which gives rise to thenecessity for some form of protection against the financial loss arising

from death, Insurance substitutes this uncertainty by certainty.

The primary purpose of life insurance is the protection of thefamily; Insurance in its various forms, protects against such misfortunesby having the losses of the unfortunate few paid by the contribution ofthe many who are exposed to the same risk. This is the essence ofinsurance the sharing of losses and substitution of certainty foruncertainty.

Advantages of Life Insurance:

1. Protection against risk of untimely death

2. Protection during old age

3. Forced Savings

4. Educational requirements

5. Nomination and Assignment

6. Marketability and suitability for borrowings

7. Loan from the Insurance Company

8. Tax benefit of life insurance

9. Protection to spouse and children



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Objectives and Scope of studyObjectives and Scope of study

Objectives of study:

1. To know whether the different types of life insurance policies aresatisfying its consumers or Policy Holders which are offered byKotak Mahindra Life Insurance Company.

2. To know the opinion of consumer towards the Plans supplied byKotak Mahindra Life Insurance Company.

3. To know whether the consumer are happy with the range of Policies

offered by Kotak Mahindra Life Insurance Company.

4. To know the consumers opinion towards different life insurancepolicies offered by Kotak Mahindra Life Insurance Company.

5. To know whether the company meets the various life insuranceneed of the community.

Scope of study:

The study was conducted during the month of April-May 2005 inBelgaum, the study shows performance of consumers of an agent inBelgaum (Aashraya Empire 2nd Floor, CTS NO.11, RPD Cross, KhanpurRoad, Tilakawadi, Belgaum 590 006) & gives the opinion of policyholders of this agent in Belgaum.



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Methodological AssumptionsMethodological Assumptions

Source of data:

Data collection is a key activity of social research. There arenumerous possible sources of data collection. This is determination that,it is special to each project, a step forward that determination is having inthe first general classification of sources, which we now offer in severaldimensions, locations of the data sources, is an option to be considered.

There are two types of sources of data. They are:

1) Primary Data

Primary Data are collected for the purpose of the research study forbalance sheet of the outlets, records, branches, catalogues etc.

Primary Data have been collected from an agent of Kotak MahindraLife Insurance Company,

Aashraya Empire 2nd Floor,CTS NO.11,RPD Cross, Khanpur Road,Tilakawadi,

Belgaum 590 006Who provided the basic information.

2) Secondary Data

Secondary Data has been collected from the Books of PACLInsurance Services Limited.



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Sales graphSales graph(Showing sales of 1 years in Belgaum city)

Apr-04

May-04

Jun-04

Jul-04

Aug-04

Sep-04

Oct-04

Nov-04

Dec-04

Jan-05

Feb-05

Mar-05

0

5

10

15

20

25

No:ofPolic

iesSold

Kotak Mahindra Life Insurance Co.

(Showing sales of 1 year in Belgaum city)

Note: This graph is based on the sales from an agent of Kotak MahindraLife Insurance Company (Aashraya Empire 2nd Floor, CTS NO.11, RPDCross, Khanpur Road, Tilakawadi, Belgaum 590 006) for the year April2004 March 2005. From this graph it is clear that in the month February2005 there is an increase of the Life Insurance policies provided by KotakMahindra Life Insurance Company.


Months


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SuggestionsSuggestions

1. Kotak Mahindra Life Insurance Company should make morepublicity of plans which help in sale promotion of their plans.

2. The policies should be such that the money should be availablewhen the policy holder needs it.

3. After the death or the maturity there should be no difficulties to theassurer in getting the sum assured.

4. Selling the right policy that correctly answers individuals needs and

circumstances.

5. . The company must give offers to the customers by that the willattract about the policy



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ConclusionConclusion

On the basis of analysis the conclusion is as follows:

Kotak Mahindra Life Insurance Company has proved itself as amarket leader in products of Life Insuance policy. The sales of KotakMahindra Life Insurance Policies in one year in Belgaum district is 109.During the research the consumers are much satisfied by the plansoffered by Kotak Mahindra Life Insurance Company. Through dataanalysis and interpretation I came to know that some of the products ofKotak Mahindra Life Insurance Company were not satisfying theconsumers. This is mainly but to the low promotional activities.



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QuestionnaireQuestionnaire

Sir,

I am a student of Insurance & Risk Management (Career OrientedCourse) of B.R.B. College, Raichur doing this survey for the fulfillment ofproject work. I assure you that your answer should be kept confidential.

Put tick mark ( ) to the appropriate answers

1. Do you know about Kotak Mahindra Life Insurance Company?

Yes [ ] No [ ]

2. Do you know about Kotak Mahindra Life Insurance Company with LifeInsurance Policies?

Yes [ ] No [ ]

3. Did you saw any of their advertisements on Life Insurance Policies?

Yes [ ] No [ ]

If yes, how is it?Good [ ]Better [ ]Best [ ]

4. Could you name some of the policies of Kotak Mahindra Life InsuranceCompany?

____________________________________________________________________________________________________________



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5. Are you satisfied by taking Kotak Mahindra Life Insurance policy?

Yes [ ] No [ ]

If yes, how is it?Good [ ]Better [ ]Best [ ]

6. Can you give your opinion about Life Insurance Policies offered byKotak Mahindra Life Insurance Company in a few words?

----------------------------------------------------------------------------------

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Data AnalysisData Analysis

Sample Survey:

The data given below is collected form collected from an agent ofKotak Mahindra Life Insurance Company.

Aashraya Empire 2nd Floor,CTS NO.11,RPD Cross, Khanpur Road,Tilakawadi,Belgaum 590 006

It gives details like name, form number, Customer Name, PayMode, Amount of policy holders.



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1. Policy wise distribution of Policy Holders:

The following table gives the distribution of different policies takenby Policy Holders as given below:

Sl.No.No: of Policy

HoldersPolicy Name

1. 81 Kotak Endowment Plan

2. 17 Kotak Child Advantage Plan

3. 11 Kotak Money Back Plan

Total 109

Based on this data analysis graphs are prepared as below:(Note: The above data is based on Sample Survey of Policy Holders

collected from an agent in Belguam as mentioned above.)

Distribution of different policies among Koyak Mahindra Life

Insurance Policy Holders

Kotak Money Back

Plan, 11

Kotak Child

Advantage Plan, 17

Kotak Endowment

Plan, 81

Conclusion: Kotak Endowment Plans Policy Holders are more as comparedto other policies as shown in the above graph.


Policy


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2. Sex wise distribution of Policy Holders:

Data analysis among different Kotak Mahindra Life Insurance PolicyHolders gives distribution of Sex as given below:

99% of Policy Holders are Male.

1% of Policy Holders are Female.

Based on this data analysis graphs are prepared as below:(Note: The above data is based on Sample Survey of Policy Holderscollected from an agent in Belguam as mentioned above.)

Distribution of Sex among Kotak Mahindra Life Insurance Policy

Holders

Male

99%

Female

1%

Conclusion: The highest bar-diagram is showing towards the Male KotakMahindra Life Insurance Company Policy Holders. Therefore Male KotakMahindra Life Insurance Company Policy Holders are more than thefemale Kotak Mahindra Life Insurance Company Policy Holders.



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Company ProfileCompany Profile

OM Kotak Mahindra Life Insurance Company Ltd.:

We are a joint venture between Kotak Mahindra Finance Ltd. andOld Mutual pcl. Kotak Mahindra is a leading financial services group withassets worth over Rs.2,800 crores as well as a market leader in the areasof car finance, investment banking and distribution of financial products.Old Mutual pcl. 157 years of experience in life insurance with assetsunder management worth US$ 208 billion (as on 31st December, 2001).For our customers, this joint venture translates into a company withinternational expertise that understands the local market.

PACL Insurance Services Limited (PISL):

(Corporate Agent of OM Kotak Mahindra Life Insurance Company Limited)

PISL is a subsidiary of PACL India Ltd., was formed to conductinsurance business all over India for life as well as non-life products. PISLhas tied up with OM Kotak Mahindra Life Insurance Company Limited(OMKM), a joint venture between Old Mutual plc. Of U.K. and KotakMahindra Finance Ltd.

PISL is a committed services organization which along with OMKMhas jointly ventured into marketing of insurance products of OMKM all

over India.

PACL India Ltd. is a company which was incorporated on 13 th Feb.,1996 under Companies Act 1956 and is engaged in manufacturing ofhealth care products and trading in timber, business of real estate,management and development of agriculture lands. The company iscustomer driven and professionally managed. Since its inception PACLIndia Ltd. has grown phenomenally to have a nationwide presencecatering to the aspirations of more than 0.45 million customers. All officesof the company are fully computerized, equipped with moderninfrastructure and operated through professionally qualified work force.

PACL Insurance Services Ltd. (PISL) was incorporated on 14 th May,2001 in Jaipur with the avowed object of promoting insurance business. Itproposes to act as a catalyst to growth in this sector. It pursues lifeinsurance business and provides necessary support to insurers todischarge their statutory obligations in rural and unorganized sector bycreating awareness about benefits of insurance to economicallyvulnerable and backward classes.



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Kotak Life Insurance PoliciesKotak Life Insurance Policies

We have a variety of products to suit your individual requirements.

They are as follows:

1. Kotak Endowment Plan2. Kotak Money Back Plan3. Kotak Child Advantage Plan

These plans are explained in detail as follows:

1. Kotak Endowment Plan:

Meaning: Kotak Endowment Plan is a protection plan that coversyour 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 ensuresa considerable growth in savings. This is a participating plan (with profits)

Benefits:

On Maturity: Basic Sum Assured or Accumulated Fund whicheveris higher.

On Death: Sum Assured less all the premiums due but not paid or

accumulated Fund whichever is higher.

Term of the Plan: 10 to 30 years

Grace Period: Period of 30 days is allowed from the due date ofunpaid premium. During first three years the policy lapses without anyvalue if the premiums are not paid within the grace period.

Paid up Value: Will be available on request after 3 full yearspremium have been paid

Surrender Value: Will be available after 3 full years and will bebased on accumulated fund after deducting certain % for surrender value.

Loan: Will be granted after 3 years from the date ofcommencement as a certain percentage of the surrender value, atprevailing market rate of interest, compounded half yearly



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Revival: If the premiums are not paid during the days of grace,then the policy lapses and should be revived within 5 years. The revivalcan be done on payment of the outstanding premiums with 6% handling

charges if the premium is made within six months.

Eligible Conditions:

Age limit: 18 to 65 years (lbd)

Maximum Premium Ceasing Age: 75 Years

Mode of Payment: Yearly, Half Yearly, Quarterly

Minimum Premium: 1. Yearly Rs.2,000/-2. Half Yearly Rs.(1020 + 15)3. Quarterly Rs.(520 + 20)

Nomination: Nomination and Assignment facility are available asper current rules. The policy can also be assigned as collateral securityagainst housing Loan.

Tax Benefit: The premiums paid under the plan will qualify forrebate under Section 88 of the Income Tax Act

Underwriting Requirements: Can be considered under NonMedical Schemes subject to:

Maximum Sum Assured: Rs.5 lakhs for age up to 35 years.Rs.3 lakhs for age between 36 to 45 yearsRs.1 lakhs for age between 46 to 50 years

Thereafter if the sum at risk exceeds the limit specified a medicalreports from a Panel Doctor would be required as per the rules.

Maximum Term: 30 YearsThereafter if the sum at risk exceeds the limit specified a medical

reports from a Panel Doctor would be required as per the rules.

Riders Available: 1. Accidental Death Benefit2. Permanent Disability Benefit3. Kotak Term Cover



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Example:

Age: 30 Years

Term: 20 Years

Sum Assured: 1,00,000/-

Annual Premium = 4640.00

With Rider Accident Death Benefit

Term Cover & PDB

Accident Death Benefit Premium = 0.80 paise per 1000 = Rs.80.00Permanent Disability Benefit Premium = 0.40 paise per 1000 = Rs.40.00

Term Cover = Premium Rate x Sum Assured1000

= 3.60 x 1,00,000 = 3601000

Basic Premium = 4,640

ADB = 80PDB = 40Term Cover = 360Total Premium = 5,120

Half Yearly Premium Calculation:

(Annual Premium x 0.51) + Rs.15/- Policy Free= Half Yearly Premium(4640 x 0.51) + 15 = 2381.00

Quarterly Premium Calculation:

(Annual Premium x 0.26) + Rs.20/- Policy Free= Quarterly Premium(4640 x 0.26) + 20 = 1226.00



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2. Kotak Money Back Plan:

Meaning: Kotak Money Back Plan not only covers your life, it alsoassures 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 addedadvantage of life cover and regular cash inflow. This plan is ideal forplanning special moments like a wedding, your childs education orpurchase of an asset etc. This is a participating plan (with profits)

Benefits:

On Survival: After every 5 years survival benefit is payable as acertain percentage of the Basic Sum Assured depending upon the termchosen. On maturity the final Survival Benefit or Accumulated Fund

whichever is higher is paid.

On Death: Cover less all the premiums due but not paidaccumulated Fund whichever is higher. The cover will increase at the rateof 7% per annum of the Basic Sum Assured after the first year.

TotalPolicyTerm

% of the S.A. Payable on survival of the life assuredup to

Total

5 years 10 years 15 years 20 years 25 years

15 25 25 70 120%

20 20 20 20 70 130%

25 15 15 15 15 80 140%

Term of the Plan: 15, 20, & 25 years

Grace Period: Period of 30 days is allowed from the due date ofunpaid premium. During first three years the policy lapses without anyvalue if the premiums are not paid within the grace period.


Loan: No loans will be granted on this policy

Revival: If the premiums are not paid during the days of grace,then the policy lapses and should be revived within 5 years. The revivalcan be done on payment of the outstanding premiums with 6% handlingcharges if the premium is made within six months.



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Maximum Premium Ceasing Age: 75 Years





Underwriting Requirements: Can be considered under NonMedical Schemes subject to:

Maximum Sum Assured: Rs.5 lakhs for age up to 35 years.Rs.3 lakhs for age between 36 to 45 years

Rs.1 lakhs for age between 46 to 50 years

Thereafter if the sum at risk exceeds the limit specified a medicalreports from a Panel Doctor would be required as per the rules.

Maximum Term: 25 YearsThereafter if the sum at risk exceeds the limit specified a medical

reports from a Panel Doctor would be required as per the rules.Standard Age Proof has to be submitted



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Example:

Age: 30 Years

Term: 20 Years


a) Annual Premium = 7120.00

With Rider

1. Accidental Death Benefit2. Permanent Disability Benefit3. Kotak Term Cover

b) Accident Death Benefit Premium= 0.80 paise per 1000 = Rs.80.00

C) Permanent Disability Benefit Premium= 0.40 paise per 1000 = Rs.40.00

Term Cover = Premium Rate x Sum Assured1000

= 3.60 x 1,00,000 = 360.001000

Total Premium = (a+b+c+d) = 7,600.00



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3. Kotak Child Advantage Plan:

Meaning: Kotak Child Advantage Plan is an investment plandesigned to meet your future needs. It is a plan that gives your child the

azaadi to realize his/her dreams. There is an endowment plan wherethe life insured is the child. This is a participating plan.

Life to be insured: A child between the ages of 0 to 17 years (lbs)

Proposer: The proposer is a must on the policy. The proposershould be either one of the parents (or the legal guardian), and must beat least 18 years (lbs)

Standard age proof for child must be submitted.

1. Upto age 9:

Sum assured is less than or equal to 10 lakhs: No medical.

Sum assured is more than 10 lakhs but less than or equal to 25lakhs : Full Medical Report (FMR), CBC, ESR

2. Between ages 10 and 17

Sum assured is than or equal to 5 lakhs: No medical

Sum assured is more than 5 lakhs but less than or equal to 10 lakhs :Full Medical Report (FMR)

Sum assured is more than 10 lakhs but less than or equal to 25

lakhs : Full Medical Report (FMR), CBC, ESR and FBS

Full Medical Report (FMR) is to be done from one of the doctors onthe Special Panel set up for doing Childrens Full Medical Report.

Benefits:

On Maturity: Basic Sum Assured or Accumulated Fund whicheveris higher is paid.

On Death:1. If death occurs at or after age of 18 years or 5 or more years

after commencement, the death benefit is the greater of:

Sum Assured less any premiums due but not paid or

Accumulated Fund.



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2. If death within 5 years of commencement of policy and the life tobe insured has attained 18 years, the death benefit will be the greater of:

All the premiums paid or The surrender value at that time

Term of the Plan: 10 to 30 years

Riders Available: 1. Kotak life Guardian Benefit2. Kotak Accidental Disability Guardian Benefit

Grace Period: Period of 30 days is allowed from the due date of

unpaid premium. During first three years the policy lapses without anyvalue if the premiums are not paid within the grace period.

Conditions:

Insured cover of child cannot exceed the total insurance cover ofproposer or guardian

Insurance of Rs.1,00,000/- may be granted to children withoutinsisting for proposers insurance.


Surrender Value: Will be available after 3 full years and will bebased on accumulated fund net of surrender penalty.

Loan: Will be granted after 3 years from the date ofcommencement of the Surrender Value of market related percentage ofthe surrender value, at prevailing market rate of interest, compoundedhalf yearly

Revival: If the premiums are not paid during the days of grace,

then the policy lapses and should be revived within 5 years.The revival can be done on payment of the outstanding premiumswith 6% handling charges if the premium is made within six months.



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Riders Available:

1. Kotak life Guardian Benefit2. Kotak Accidental Disability Benefit



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Example:

With

1. Life Guardian2. Accidental / Disability Guardian Benefit

Age: 3 Years

Term: 20 Years


Annual Premium = 4560.00

Life Guardian Premium = Basic Premium x Rider Premium

Annual Premium = 4560 x 44.50 = 203.001000

Accidental/Disability Guardian Premium= Basic Premium x Rider Premium

= 4560 x 5.2 = 24.001000

Total Premium =4787.00

B R B College of Commerce Raichur

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