A SUMMER TRAINING REPORT ON

KOTAK LIFE INSURANCE

COLLEGE OF BUSINESS STUDIES, AGRA

Submitted to : Mr. Jitendra Dubey H.O.D. (Management Faculty)

Submitted by: Amod Kumar Kamat MBA 3rd Sem. Roll No. 1239470005

PREFACE The modern age can be called as the Age of Consumers. In todays cut -throat competition the consumer is considered as the king. Many policies of various organizations are aimed at keeping the consumer happy and satisfied. It is very important for every single organization to keep its consumers satisfied in order to maintain its competitiveness in the market. Not only does this help the organization to maintain the size of its share in the market, it might even help it to increase the size of its share. It might also be instrumental in increasing the overall market size. This helps in increasing the overall profitability of the organization. It also helps the long-term survival prospects of the organization. Consumers when viewed on the macro level exhibit similar traits. However, when they take a closer look and come down to the micro level, we find that the consumers vary as in comparison to one another on one aspect or the other based on a variety of attributes (Kotler, 2003). This project covered the brief understanding about the private hospital industry surrounding the Delhi area, I have collected the primary data from the Fortis hospital which is one of the best hospital in Delhi and NCR, as the growing concern about the health in the Delhi and NCR region also to understand whether the Fortis hospital has targeted the market right or not, I have concluded this project with the proper recommendation has been made to that, which help another research to do some research assuming of that.

ACKNOWLEDGEMENT

It is essential to acknowledge the help received from the people of various quarters. I find myself at a loss as to how to thank them. These words are not a formality but a sincere voice of my heart & I owe guidance to all of them. At the onset I would like to thank Mr. Jitendra Dubey (H.O.D. Management Faculty) for providing me a wonderful opportunity to work on this project. Their valuable time and guidance went a long way in helping to make a quality work out of this project. I also owe my regards to my faculty members, who has helped me in every possible way to make this project a success.

Saurabh Singh MBA 3rd Sem Roll. No. 1239470079

DECLARATION

I Saurabh Singh student of M.B.A. 3rd Sem. From College of Business Studies (0394), Sikandra, Agra. Hereby declare that this project work on CUSTOMER

SATISFACTION FROM HOSPITAL SERVICES: STUDY OF FORTIS HOSPITAL is my work, carried out under the guidance of my company guide. This report, neither in full nor in part, has ever been submitted for award of any other degree either this university or any other university.

Saurabh Singh MBA 3rd Sem Roll. No. 1239470079

COLLEGE OF BUSINESS STUDIES, AGRA

Date:.

Certificate
This is to certify that Mr. Saurabh Singh, student of M.B.A. 3rd Sem. Has conducted an empirical research study and prepared this project report on CUSTOMER

SATISFACTION FROM HOSPITAL SERVICES: STUDY OF FORTIS HOSPITAL in the specialization area of Marketing. This project report is submitted in partial fulfilment of the award of M.B.A. degree of Mahamaya Technical University, Noida. His work is original and authentic.

Mr. Jitendra Dubey H.O.D. Dept. of Management

CONTENTS
Introduction Scenario of Healthcare Sector In India

Vision Mission Price and Product Chart Review of Literature Objective of the Study About Fortis Healthcare Organization life cycle Management organization structure at fortis Specific environment Organization structure at fortis Research methodology Data collection Finding and analysis Recommendation Suggestions Scope of the study Questionnaire

INTRODUCTION
The business of insurance is related to the protection of the economic values of assets. Every asset has a value; the assets would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. The benefit may be an income or something else. It is a factory or a cow, the product generated by is sold and income generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income. Every asset is expected to last for a certain period of time during which it will perform. After that, the benefit may not be available. There is a life-time for a machine in a factory or a cow or a motor car. None of them will lose for ever. The owner is aware of this and he can so manage his affairs that by the end of that period of life-time, a substitute is made available. Thus, he makes sure that the value of income is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it non financial. In that case, the owner and those deriving benefits there from, would be deprived of the benefit and the planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effect of such adverse situation.

BRIEF HISTORY OF INSURANCE

The business of insurance started with marine business. Traders, who used to gather in the Lloyds coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. The first insurance policy was issued in 1583 in England. In India, insurance began in 1876 with life insurance being transacted by an English company, the European and the Albert. The first Indian insurance company was the Bombay Mutual Assurance Society Ltd, formed in 1870. This was followed by the Oriental Life Assurance Co. in 1874, the Bharat in 1896 and the Empire of India in 1897.

Later, the Hindustan Cooperative was formed in Calcutta, the United India in Madras, the Bombay Life in Mumbai, the National in Calcutta, the New India in Mumbai, the Jupiter in Mumbai and the Lakshmi in New Delhi. These were all Indian companies, started as a result of the swadeshi movement in the early 1900s. By the year 1956, when the life insurance was nationalized and the Life Insurance Corporation of India (LIC) was formed on 1st September 1956, there were 170 companies and 75 provident fund societies transacting life insurance business in India. After the amendment to the relevant laws in 1999, the L.I.C.

did not have the exclusive privilege of doing life insurance business in India. By 31.3.2002, eleven new insurers had been registered and and had begun to transact life insurance business in India.

PURPOSE AND NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental occurrences. Such possible occurrences are called perils, Fire, floods, breakdown, lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset, we say that the asset is exposed to that risk. Perils are the events. Risks are the consequential losses or damages. The risk to a owner of a building, because of the peril of an earthquake, may be a few lakhs or few crores of rupees, depending on the cost of the building and the contents in it.

The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of a human being, death is certain, but the time of death is uncertain, In the case of a person who is terminally ill, the time of death is not uncertain, though not exactly known. He cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril cannot be avoided through insurance. The peril can sometimes be avoided, through better safety and damage control management. Insurance only tries to reduce the impact of the risk and the owner of the assets and those who depend on that asset. It only compensates the losses and that too, not fully.

Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of non economic losses are love and affection of parents, leadership of managers, sentimental attachments to family heirlooms, innovative and creative abilities, etc.

INDIAN INSURANCE SECTOR

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business

(Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts.

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was formed in September, 1956 by an Act of Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution from the Government of India. The then Finance Minister, Shri C.D. Deshmukh, while piloting the bill, outlined the objectives of LIC thus: to conduct the business with the utmost economy, in a spirit of trusteeship; to charge premium no higher than warranted by strict actuarial considerations; to invest the funds for obtaining maximum yield for the policy holders consistent with safety of the capital; to render prompt and efficient service to policy holders, thereby making insurance widely popular.

Since nationalisation, LIC has built up a vast network of 2,048 branches, 100 divisions and 7 zonal offices spread over the country. The Life Insurance Corporation of India also transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and Life Insurance Corporation (International) E.C. Bahrain. The Corporation has registered a joint venture company in 26th December, 2000 in Kathmandu, Nepal by the name of Life Insurance Corporation (Nepal) Limited in collaboration with Vishal Group Limited, a local industrial Group. An off-shore company L.I.C. (Mauritius) Offshore Limited has also been set up in 2001 to tap the African insurance market.

General Insurance: General insurance business in the country was nationalised with effect from 1st January, 1973 by the General Insurance Business (Nationalisation) Act, 1972. More than 100 non-life insurance companies including branches of foreign companies operating within the country were amalgamated and grouped into four companies, viz., the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. with head offices at Calcutta, Bombay, New

Delhi and Madras, 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 Reinsurer" since 3rd November 2000. The share capital of GIC and that of the four companies are held by the Government of India. All the five entities are Government companies registered under the Companies Act.

The general insurance business has grown in spread and volume after nationalisation. The four companies have 2699 branch offices, 1360 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. A wholly- owned subsidiary company of GIC, i.e. Indian International Pte. Ltd. is operating in Singapore and there is a joint venture company, viz. Kenindia Assurance Ltd. in Kenya. A new wholly owned subsidiary called New India International Ltd., UK has also been registered.

NEW INSURANCE SCHEMES UNIVERSAL HEALTH INSURANCE SCHEME The Universal Health Insurance policy is available to groups of 100 or more families. The policy provides for reimbursement of medical expenses upto Rs.30000/- towards hospitalisation floated amongst the members of the family, death cover due to an accident for Rs.25000 to the earning head of the family and compensation due to loss of earning head of the family @ Rs.50/- per day upto a maximum of 15 days, after a waiting period of three days, when the earning head of the family is hospitalised. The premium under the policy is Rs.1/- per day (i.e. Rs.365/- per annum) for an individual, Rs.1.50 per day for a family of five limited to spouse and children (i.e. Rs.548 per annum), and Rs.2/per day (i.e. Rs. 730 per annum) for covering dependent parents within the overall family size of seven. A subsidy of Rs. 100 per year towards annual premium for "Below Poverty Life" families is also provided under the Scheme.

For purpose of this policy HOSPITAL means:

Any Hospital/Nursing home registered with the local authorities and under the supervision of a registered and qualified Medical practitioner.

Hospital/ Nursing Home run by Government.

Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals with fixed schedule of charges.

Hospitalisation should be for a minimum period of 24 hours. However, this time limit is not applied to some specific treatments and also where due to technological advancement hospitalisation for 24 hours may not be required.

Main Exclusions:

All pre-existing diseases. Corrective, cosmetic or aesthetic dental surgery or treatment. Cost of spectacles, contact lens and hearing aid. Primarily diagnostic expenses not related to sickness/injury. Treatment for Pregnancy, Childbirth, Miscarriage, abortions etc.

Age Limitations: This policy covers people between the age of 3 months to 65 years.

Floater Basis:

The benefit of family will operate on floater basis i.e. the total reimbursement of Rs. 30,000/- can be avalied of individually or collectively by members of the family. For further details please refer the Prospectus or the Policy Document issued by the Insurance Company. Varishtha Pension Bima Yojana Scheme

Indian citizens aged 55 years (last birthday) and above are eligible (no upper age ceiling).

Pension will be paid during the lifetime of the pensioner. In the event of unfortunate death of the pensioner, purchase price will be paid to the nominee/ legal heir of the pensioner.

Mode of payment of pension : Monthly, Quarterly, Half Yearly or Yearly. Minimum pension is Rs. 250/- per month Maximum pension is Rs. 2000/- per month. Only one person from a family can apply. The family for this purpose shall comprise of the pensioner, his/ her spouse and dependants.

Age proof will be required. Where age is to be admitted on declaration basis, declaration on a stamp paper, signed in front of a notary shall be required.

Premium Only single premium (purchase price) is payable i.e. premium is to be paid in one lump sum. Further, premium shall be accepted by cheques/ drafts payable on the Branch of the bank which is the member of the local clearing house.

Exit Option Exit option to be provided after 15 years.

Availability of Loan Availability of loan to the extent of 75% of Purchase Price after 3 years. Interest rate on loan to be decided by LIC from time to time. At present, the rate of interest would be 10.5%.

MAJOR POLICY CHANGES Reforms In Insurance Sector Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and

Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956; The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company;

The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is Rs.100 crores.

The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.

INSURANCE COMPANIES IRDA has so far granted registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are included, there are currently 13 insurance companies in the life side and 13 companies operating in general insurance business. General Insurance Corporation has been approved as the "Indian reinsurer" for underwriting only reinsurance business. Particulars of the life insurance companies and general insurance companies including their web address is given below:

LIFE INSURERS Public Sector Life Insurance Corporation of India Private Sector Kotak Life Insurance Co. Limited Allianz Bajaj Life Insurance Company Limited Birla Sun-Life Insurance Company Limited

Websites

www.licindia.com

www.kotak prulife.com www.allianzbajaj.co.in www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited

www.hdfcinsurance.com

ING Vysya Life Insurance Company Limited Max New York Life Insurance Co. Limited MetLife Insurance Company Limited Om Kotak Mahindra Life Insurance Co. Ltd.

www.ingvysayalife.com www.maxnewyorklife.com www.metlife.com www.omkotakmahnidra.com

SBI Life Insurance Company Limited

www.sbilife.co.in

TATA AIG Life Insurance Company Limited

www.tata-aig.com

AMP Sanmar Assurance Company Limited Dabur CGU Life Insurance Co. Pvt. Limited GENERAL INSURERS Public Sector National Insurance Company Limited New India Assurance Company Limited Oriental Insurance Company Limited United India Insurance Company Limited Private Sector Bajaj Allianz General Insurance Co. Limited KOTAK Lombard General Insurance Co. Ltd. IFFCO-Tokio General Insurance Co. Ltd. Reliance General Insurance Co. Limited

www.ampsanmar.com www.avivaindia.com

www.nationalinsuranceindia.com www.niacl.com www.orientalinsurance.nic.in www.uiic.co.in

www.bajajallianz.co.in www.kotak lombard.com www.itgi.co.in www.ril.com

Royal Sundaram Alliance Insurance Co. Ltd.

www.royalsun.com

TATA AIG General Insurance Co. Limited

www.tata-aig.com

Cholamandalam General Insurance Co. Ltd. Export Credit Guarantee Corporation HDFC Chubb General Insurance Co. Ltd. REINSURER General Insurance Corporation of India

www.cholainsurance.com www.ecgcindia.com

www.gicindia.com

PROTECTION OF THE INTEREST OF POLICY HOLDERS:

IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in both life and non-life; setting up of grievance

redressal machinery; speedy settlement of claims; and policyholders' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim.

The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims.

It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public.

All insurers are required to set up proper grievance redress machinery in their head office and at their other offices.

The Authority takes up with the insurers any complaint received from the policyholders in connection with services provided by them under the insurance contract.

Insurance Company

Market Share (Fig. in %)

LIC KOTAK Prudential Bajaj Allianz HDFC Standard Life SBI Life Birla Sun Life Max New York Life` TATA AIG Aviva OM Kotak Mahindra ING Vyasa Reliance MetLife

71.44 11.35 7.06 2.37 1.81 1.49 0.98 0.79 0.89 0.86 0.57 0.37 0.24

Market Share of Life Insurance Companies as of May 2009.

ABOUT KOTAK PRUDENTIAL

Kotak Life Insurance Company is a joint venture between KOTAK Bank, a premier financial powerhouse and Prudential Plc , a leading international financial services group headquartered in the United Kingdom. This joint venture is formed in the year Dec, 2000 and Kotak was amongst the first private sector Insurance companies to begin operation in Dec, 2000 after receiving approval from the Insurance Regulatory Development Authority (IRDA).

For the year ended March 31, 2006, the company garnered Rs 24.12 billion of weighted new business premium and wrote 837,963 policies. The sum assured in force stands at Rs 458.88 billion. The company has a network of over 72,000 advisors; as well as 9 banc assurance partners and over 200 corporate agent and broker tie-ups. It is also the only life insurer in India to be assigned AAA credit rating from Fitch Ratings. For the past five years, Kotak has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. KOTAK Bank and Prudential Plc hold 74 percent and 26 percent stake respectively.

PARTNERS

KOTAK and Prudential came together in 1993 to form Prudential KOTAK Asset Management Company, which has today emerged as one leading mutual funds in India. Riding on the success of this relationship, the two companies joined hands ones more in 2000, to form Kotak Life Insurance, with a commitment to provide leading edge life insurance solutions.

ABOUT KOTAK BANK KOTAK Bank is India's second-largest bank with total assets of about Rs. 2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05 bn (US$ 449 mn) for the year ended March 31, 2005). KOTAK Bank has a network of about 614 branches and extension counters and over 2,200 ATMs. KOTAK Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. KOTAK Bank set up its international

banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. KOTAK Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Centre and

representative offices in the United States, United Arab Emirates, China, South Africa and Bangladesh. Our UK subsidiary has established a branch in Belgium. KOTAK Bank is the most valuable bank in India in terms of market capitalization. KOTAK Bank's equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). KOTAK Bank has formulated a Code of Business Conduct and Ethics for its directors and employees At June 5, 2006, KOTAK Bank, with free float market capitalization of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all the companies listed on the Indian stock exchanges.

KOTAK Bank was originally promoted in 1994 by KOTAK Limited, an Indian financial institution, and was its wholly-owned subsidiary. KOTAK 's shareholding in KOTAK Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity of fering in the form of ADRs listed on the NYSE in fiscal 2000, KOTAK Bank's

acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by KOTAK to institutional

investors in fiscal 2001 and fiscal 2002. KOTAK was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and longterm project financing to Indian businesses. In the 1990s, KOTAK transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and throu gh a number of subsidiaries and affiliates like KOTAK Bank. In 1999, KOTAK

become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

ABOUT PRUDENTIAL PLC

Established as the Prudential Mutual Assurance and Loan Association in 1848, today it is an international financial services company with a product range which extends from personal banking insurance, pensions and retail investments, to institutional fund management and property investments. Its portfolio of well-known and respected brands, including Prudential, M&G Investments, Jackson National Life, Prudential Corporation Asia and Egg, has attracted more than 19 million customers (and policy holders and unit holders) worldwide. Across the Group it has 234 billion of funds under management (at 31 December 2005). Prudential has significant operations in the UK, the US and Asia, contributing to a diversity of earnings. Worldwide it employ more than 20,000 people and our shareholders number 60,942 (at 31 December 2005). We are listed on the London and New York stock In Asia, Prudential Corporation Asia has 23 operations in 12 countries. These include strategic partnerships with some of the regions leading players, including CITIC Group (for life business in China), KOTAK Bank (for life and mutual fund business in India) and Bank of China International (for Mandatory

Provident Fund business in Hong Kong). Prudential Corporation Asia offers a wide range of savings, protection and investment products tailored to the needs of our customers in each of the 12 markets in which itoperate. In addition to its life insurance operations Prudential has asset management businesses in India, Hong Kong, Japan, Taiwan, Malaysia, Singapore, Korea, Vietnam and China managing over 26 billion (as of 30 June 2005).

VISION
OUR VISION: To make Kotak the dominant Life and Pensions player built on trust by worldclass people and service. This we hope to achieve by:

Understanding the needs of customers and offering them superior products and service

Leveraging technology to service customers quickly, efficiently and conveniently

Developing

and

implementing

superior

risk management

and

investment strategies to offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our employees

And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes what the company stands for, the qualities of our people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.

MANAGEMENT
Board of Directors: The Kotak Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad.

Mr. K.V. Kamath, Mr. Mark Norbom Mrs. Lalita D. Gupte Mrs. Kalpana Morparia Mrs. Chanda Kochhar Mr. HT Phong Mr. M.P. Modi Mr. R Narayanan Mr. Keki Dadiseth Ms. Shikha Sharma, Mr. N.S. Kannan,

Chairman

Managing Director Executive Director

Management Team Ms. Shikha Sharma, Mr. N.S. Kannan, Mr. V. Rajagopalan, Mr. Sandeep Batra, Ms. Anita Pai, Mr. Puneet Nanda, Managing Director & CEO Executive Director Chief - Actuary Chief Financial Officer Company Secretary Chief - Customer Service and Technology Chief - Investments

PRODUCT OF KOTAK PRUDENTIAL

SAVINGS PLANS

Kotak offers a variety of policies that give you the benefits of protection and the opportunity to save for important assets or events, like a home, a car or a wedding.

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee* and the facility of extended insurance cover.

*The capital guarantee is applicable only on the invested premium and the declared bonus interests.

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee* along with flexible liquidity options.

A unit-linked insurance plan with an assurance of Capital Guarantee*, which offers you the benefit of a limited premium payment and coverage term.

A market linked insurance plans that meets your Investment and Protection needs.

Complete market-linked insurance plans that adapt itself to your changing protection and investment needs, throughout a lifetime.

An insurance plan that gives added protection savings and multiple options, all in one!

An insurance plan that gives added protection savings, multiple options, plus the power of liquidity.

A traditional endowment savings plan that offers both high returns and protection.

An endowment savings plan that allows you to get back substantial survival benefits without having to wait till the maturity date.

PROTECTION PLANS

Kotak Life Insurance offers LifeGuard - a set of pure protection plans. Choose from amongst three different product structures to insure your life and provide total security to your family, at a very affordable cost.

Level Term Assurance with return of premium

On death the entire sum assured will be paid. On maturity, all the premiums paid will be returned.

Level Term Assurance without return of premium

No survival or maturity benefits. You can also enhance the above two policies by adding Accident & Disability Benefit Rider and Waiver of Premium Rider (WOP).

Level Term Assurance - Single premium On death the entire sum assured will be paid. No survival or maturity benefits

CHILD PLANS

As a responsible parent, you will always strive to ensure a hassle-free, successful life for your child. However, life is full of uncertainties and even the best-laid plans can go wrong. Heres how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. SmartKid is especially designed to provide flexibility and safeguard your childs future education and lifestyle, taking all possibilities into account. For further information on our SmartKid Education Plans

1. SmartKid regular premium 2. SmartKid unit-linked regular premium 3. SmartKid unit-linked regular premium II

4. SmartKid unit-linked single premium II All these plans offer you:

Financial Benefits: Regular payments at critical stages in your childs life, like Board examinations, Graduation and Post-graduation. Total peace of mind, even if you are not around o Sum Assured is paid immediately: Ensures that your loved ones stay financially secure, even in your absence o All future premiums are waived: Ensuring that your family is not financially burdened in your absence o Policy benefits continue: The educational benefits of the policy continue, ensuring that your child can realize his or her dreams without any hassles. Development Allowance: SmartKid guarantees regular income to secure your childs educational career and also ensures his or her all-round development, for a nominal additional amount. The Income Benefit Rider takes care of this through an annual payment of 10% of the sum assured, to your child, till the maturity of the policy, in the unfortunate event of the death of the parent.

 All SmartKid plans can be enhanced with the Accident & Disability Benefit Rider and Income Benefit Rider.You can also an Accident Benefit Rider to a SmartKid Regular Premium policy,and a Waiver of Premium Rider (WOP) to SmartKid unit-linked regular premium policy. RETIREMENT PLANS

Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. For you, this increase will mean a longer retirement life, stretching into a couple of decades. Kotak presents Retirement Solutions that combine the best of insurance and investment. These solutions are developed to ensure your peace of mind for the years to come.For further information on our Retirement Solutions Choose from amongst 6 retirement plans:

A flexible unit-linked retirement solution that offers flexibilities during the accumulation as well as payout phase.

A regular premium unit-linked pension plan with an assurance of Capital Guarantee*

*The capital guarantee is applicable only on the invested premium and the declared bonus interests

A regular premium linked pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns.

A single premium linked pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns.

A regular premium pension plan that gives you the flexibility to choose between 3 levels of sum assured for the same level of total annual contribution

A regular premium pension plan that helps you save for your retirement while providing you with life insurance protection.

Choose from 5 Annuity options at the time of vesting

1. Life Annuity 2. Life Annuity with return of purchase price 3. Life Annuity guaranteed for 5, 10, 15 years

4. Joint Life, Last Survivor without return of purchase price 5. Joint Life, Last Survivor with return of purchase price

HEALTH PLANS

Comprehensive Cancer Protection Plan

A Long-term Critical Illness Protection Plan.

A Long-term Critical Illness Protection Plan with Life Cover.

INVESTMENT PLANS

Lifelink Super is a unique single premium plan that combines the security of a

life insurance policy with the opportunity to enjoy potentially high returns on your investments.

Low Allocation Charges: The premium allocation charges are amongst the lowest across products. Allocation charge for single Premium of Rs 500,000 or more is 0%.

Death Benefit: There are 2 options for sum assured - 500% of the single premium or 125% of the single premium. In the event of an unfortunate death, the beneficiary will receive higher of the value of units or the initial death benefit (adjusted for partial withdrawals*).

Liquidity: In order to meet liquidity requirements, one can make partial withdrawals from the accumulated value of the policy after completion of three policy years.

Flexibility:Choose from four fund options, based on your investment objective and risk appetite. If at a later stage your financial priorities change, you can switch between the various fund options, absolutely free, 4 times a year.

GROUP SOLUTIONS

In an era of competitive parity, the only asset that makes a decisive difference between corporate success and failure is the quality

of human capital. Employee benefits have proven to be an excellent tool to optimize the retention of talent and improve an organisations bottomline. The quality of an organisations employee benefits estab lishes and maintains a company's image as a caring employer. Optimum care of employees is a longterm investment that results in a sustained competitive advantage for an organisation in the times to come.

KOTAK Pru Group Solutions Advantage

An integrated basket of employee benefit solutions that offer incomparable flexible benefits. Sound investment management that focuses on safety, stability and profitability of the portfolio. Personalised financial planning for your employee that takes care of his/her changing financial needs at every stage of life.

 Quality service initiatives and transparency across all operations, promising superlative operational efficiency.

Group Term Insurance : Helps provide affordable cover to members of a group. Group Gratuity Plan : Helps employers fund their statutory gratuity obligation in a flexible and hassle-free manner. Group Superannuation Plan : A flexible scheme (defined benefit and defined contribution) to provide a retirement kitty for each member of the group. Group Term Insurance

KOTAK Prudential's flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary, and can be extended to all employees between the ages of 18 and 65 years. The benefit under the policy is paid on the event of the members death to the beneficiary nominated by the member. It is a one-year renewable policy where one master policy covers all proposed employees comprising the group, with a minimum group size of 25 persons. New members can join the group and outgoing members can leave the group at any point during the policy term.

Highlights include:

Greater convenience for the employees with relaxed underwriting and medical requirements. "Free Cover Limits" with simplified underwriting depending upon the number of employees in the group and the level of cover chosen. Guaranteed benefit : On death during the term of the contract (while in service), the sum assured will be paid to the beneficiary of the employee. Choice of additional coverage in form an Accident and Disability Benefit Rider and Critical Illness Cover Premium is viewed as a business expense in the year of payment.

Group Gratuity Plan KOTAK Prudential's group gratuity plan helps employers fund their gratuity obligation in a scientific manner. Employers can avail of the tax benefits as applicable to approved gratuity funds. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.

Highlights include:

Wider choice of investments with Market Linked Plans - to meet the diverse financial goals. We offer the following investment options (shortterm debt, debt, balanced, growth and capital guarantee on the shortterm debt plan) where investments will be made in accordance with the fund objectives Transparency through Daily disclosure of Unit Value and regular disclosure of the portfolio of each of the investment option Flexibility through switching and contribution redirection option to enable reshuffling of portfolio Bundled Life Cover greater value to the employee by packaging life insurance cover with the gratuity, with minimal amount of underwriting. Actuarial services to provide a scientific estimation of the gratuity liability. Low explicit charge structure with the conditions for exit specified upfront. Enhanced service levels through faster claim settlement, easier access to information and regular statements

 Complete end to end solution in the legal and regulatory approval process for scheme set up or transfer

Employee Benefits The contribution made by the employer is not included in the value of taxable perquisites in the hands of the employee. Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10)

Employer Benefits Annual contribution up to 8.33% of salary bill in a financial year is allowed a deduction for the purpose of computation of profits and gains of business. Contribution towards past service liability is allowed as deduction as per the Income Tax rules Group Superannuation Plan

KOTAK Prudentials Superannuation Scheme (for both Defined Benefit and Defined Contribution funds) offers substantial benefits to both employers and employees. The employer and employee can avail of tax benefits applicable to

an approved superannuation trust. The scheme will provide for a retirement fund for each participating employee. An employee would be able to choose from various annuity options or opt for partial commutation of corpus at retirement.

Highlights include:

Wider choice of investments with Market Linked Plans - to meet the diverse financial goals.We offer the following investment options (shortterm debt, debt, balanced, growth and capital guarantee options on short-term debt, debt and balanced) where investments will be made in accordance with the fund objectives. Control - Each member/employer can exercise greater control over investments by choosing one or more of the investment options. Multiple Annuity Options - 5 annuity options and open market option Transparency - Transparency through Daily disclosure of Unit Value and regular disclosure of the portfolio of each of the investment option. Flexibility - Flexibility through switching and contribution redirection option to enable reshuffling of portfolio Low explicit charge structure with conditions for exit specified upfront.

 Enhanced service levels through faster claim settlement, easier access to information and regular statements. Complete end to end solution in the legal and regulatory approval process for scheme set up or transfer

RURAL PLANS KOTAK PrudentialLife Rural Products are designed to meet the needs of the rural consumers. These products offer the following features:

1. Low and Affordable Premiums 2. Life Cover 3. Savings Option 4. Hassle free procedure

Kotak offers 2 specially designed rural plans.

1. KOTAK Pru Mitr Endowment Plan 2. KOTAK Pru Suraksha - Regular Premium

KOTAK Pru Mitr Endowment Plan KOTAK Pru Mitr offers the following features:

Life Cover and Savings Regular Premiums Age at entry : 18 - 45 Yrs Premium Mode : Half Yearly / Yearly Term : 5,10,15 Yrs Sum Assured : Rs.5,000 -20,000 Premium / Year : Rs. 507 - 553 ( SA: Rs.10,000) Maturity/Death benefit : Sum Assured

KOTAK Pru Suraksha - Regular Premium KOTAK Pru Suraksha is a regular premium policy with the following features:

Individual policy Only Life cover Term - 3 & 5 Yrs Age independent premium Age at entry : 18 - 45 Yrs

 Sum Assured : Single Premium / Year : Rs 50 200 Maturity/Death benefit : Rs.5,000 - 20,000 Death Benefit : Sum Assured

NRI PLANS Being away from India doesn't mean you have to compromise the safety and security of your loved ones. In fact, your savings from your time overseas can be easily channelised to meet your family's needs - now and in the future. So, whether its your dream to retire in your hometown; to secure funds for your children's education; or to build assets, Kotak has a range of solutions that can be customized to meet your needs. Investment Plans Savings Plans Retirement Plans Child Plans

Investment Plans

You can hedge your investments with investment like LifeLink Super vehicles that provide you with a diversified portfolio.

Savings Plans

Endowment policies are a good way of putting aside your savings today for a future goal - whether it's to buy a house in India or fund your entrepreneurial vision. Our savings-oriented policies are designed to make your savings grow and have them available to you at the end of a fixed number of years or through the term of the plan. SecurePlus - an insurance plan that gives added protection savings and multiple options, all in one! CashPlus - an insurance plan that gives added protection savings, multiple options, plus the power of liquidity. LifeTime II - a complete market-linked insurance plan that adapts itself to your changing protection and investment needs, throughout a lifetime. Save'n'Protect - a traditional endowment savings plan that offers both high returns and protection.

 CashBak - an endowment savings plan that allows you to get back substantial survival benefits without having to wait till the maturity date. Premier Life - A market linked insurance plans that meets your Investment and Protection needs.

Retirement Plans Many of us picture ourselves enjoying the fruits of our labour after retirement going on a dream vacation, or helping our child's career take wing. Financing all this will depend on our personal savings and investments, so its important to save for the future from today. Our retirement plans are designed to help you systematically save, so that you can enjoy all the things you have dreamed of when you retire. LifeTime Pension II : A regular premium linked deferred pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns. SecurePlus Pension : A regular premium deferred pension plan that gives you the flexibility to choose between 3 levels of sum assured for the same level of total annual contribution.

 LifeLink Pension II : A single premium linked deferred pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns. ForeverLife : A regular premium deferred pension plan that helps you save for your retirement while providing you with life insurance protection.

Child Plans As a responsible parent, you want to ensure a hassle-free, successful life for your child. However, life is full of uncertainties and even the best-laid plans can go wrong. SmartKid Education Plans are designed to provide flexibility and to safeguard your child's future education and lifestyle, taking all possibilities into account.

SmartKid Child Plans has a bouquet of three products which can help you secure your childs education.

Unit-linked Regular Premium Unit-linked Single Premium Regular Premium SmartKid

KEYMAN INSURANCE PLANS

A keyman is an individual who directly affects the profitability and the continuity of a business and whose absence may have an adverse effect on the health and continuity of the business. Keyman insurance is a life insurance policy taken by the company on the life of such a key person. The objective of the keyman insurance is to provide the company with money so that the financial losses to the company can be protected, in absence of the keyman. The aim is to indemnify the company of these losses and to allow business continuity. All premiums paid for securing a keyman life insurance policy are treated as business expenditure u/s 37 (1). Our Lifeguard plan is ideally suited for the purpose of keyman insurance RIDERS

Kotak gives you the freedom to form your very own comprehensive insurance policy by adding the rider benefits to the basic life insurance policy. Add from

the following list of benefits to increase the scope of your policy, at a nominal cost.

Critical Illness Rider Accident & Disability Benefit Rider Accident Benefit Rider Income Benefit Rider Waiver of Premium Rider (WOP) Critical Illness Benefit Rider This rider provides protection against 9 critical illnesses, namely: Major organ transplants, complete renal failure, Stroke, Paralysis, Heart attack, Valve replacement surgery, Major surgery of the aorta, CAGS (Bypass) and Cancer.

Benefits paid on contracting the illness: Accelerated benefits (available with Save n Protect and CashBak) : If the policyholder is diagnosed with any of the specified illnesses, then the policyholder is paid the entire sum assured under the rider. The policy along with all the riders (to the extent of the Rider Sum Assured) is then terminated. However, the remainder of the base policy continues till the

end of the term. The policyholder will have to continue paying his premiums for the remainder of the policy. Accelerated benefits (available with SecurePlus, CashPlus and SecurePlus Pension) : If the policyholder is diagnosed with any of the specified illnesses, then the policyholder is paid the entire sum assured under the rider. The life cover along with all the riders is then terminated. However, the policy value accumulation continues till the end of the term or death, whichever is earlier. Standalone benefits (available with Golden Years, PremierLife, LifeTime, LifeTime II, ForeverLife, Group Term Plan, InvestShield Life, InvestShield Cash and InvestShield Gold) : If the policyholder is diagnosed with any of the specified illnesses, he/she is paid the rider Sum Assured and the rider terminates. However, the base policy continues till maturity. Premiums paid under this rider are eligible for tax benefits under Section 80D. Accident & Disability Benefit Rider 1. Benefits payable on death due to an accident If the policyholder dies due to an accident, 100% of the rider sum assured is paid in addition to the basic sum assured.

 In case the policyholder dies in a land surface, mass public transport system wherein the policyholder was traveling as a farepaying passenger, then 200% of the rider sum assured is paid. 2. Benefits payable in case of permanent disability due to an accident If the policyholder survives an accident but becomes permanently disabled then the premium for the basic plan is completely waived off to the extent of the rider sum assured. Plus, 10% of the rider sum assured is paid for the next 10 years, which helps in providing that extra money and takes care of sudden financial set back that occurs after a tragic disability.

Accident & Disability Benefit rider is available with Save n Protect, Cashbak, SmartKid Child Plans, Golden Years, PremierLife, LifeTime, LifeTime II, LifeTime Pension II, ForeverLife, SecurePlus, CashPlus, SecurePlus Pension, LifeGuard ROP, LifeGuard WROP, Group Term Plan, InvestShield Life, InvestShield Cash, InvestShield Gold and InvestShield Pension . In case of Golden Years, PremierLife, Lifetime II, Lifetime Pension II, SecurePlus, CashPlus, LifeGuard ROP and LifeGuard WROP, the waiver of premium benefit is not available. Premiums paid under this rider are eligible for tax benefits under Section 80C.

Accident Benefit Rider If the policyholder dies due to an accident, 100% of the rider sum assured is paid in addition to the basic sum assured. Accident Benefit rider is available with SavenProtect, CashBak, SmartKid regular premium, ForeverLife, SecurePlus, CashPlus and SecurePlus Pension.

Premiums paid under this rider are eligible for tax benefits under Section 80C.

Income Benefit Rider In case of death of the life assured during the term of the policy, 10% of the rider sum assured is paid annually to the beneficiary, on each policy anniversary till maturity of the rider. Income Benefit rider is available with SmartKid Child Plans, SecurePlus and CashPlus Premiums paid under this rider are eligible for tax benefits under Section 80C. Waiver of Premium Rider (WOP) On total and permanent disability due to an accident, all future premiums for both the base policy and rider(s) will be waived till the end of the term of the rider or death of the life assured, if earlier.

Waiver of Premium rider is available with SecurePlus, CashPlus, LifeGuard ROP, LifeGuard WROP, SmartKid Unit-linked regular premium II, Lifetime II, LifeTime Pension II, SecurePlus Pension, InvestShield Life, InvestShield Cash and InvestShield Pension. Premiums paid under this rider are eligible for tax benefits under Section 80C.

RESEARCH METHODOLOGY

The approach to the research is considered in this chapter, from the theoretical underpinning to the collection and analysis of the data. It begins with the extent of the research to provide the specific guidelines of studying. The next part is concerned with the method of the research that refers to the data collection and analyzing which is used in the research.

CONCEPTUAL CONTEXT OF THE RESEARCH As the objective of the research focuses on the search of potential Insurance Advisor with special emphasis of KOTAK Prudential. It will help the company to increase its sales, which is prime objective of the company at this time. The research attempts to generate an awareness among the people of Lucknow regarding the agency of KOTAK Prudential.

METHODS
PRIMARY DATA Data collection of this research was done primarily through filling up of questionnaires. The sample for the research including different individuals of

various age groups and having different profession and qualification. Data was collected through the interview of individuals. The questionnaires was containing questions regarding the personal details of individuals and then some light question regarding their primary knowledge related to private insurance companies. Then there were questions related to their interest in being the Insurance Advisor of the company.

SECONDARY DATA A large amount of secondary data has been collected from secondary sources. Some of the sources are: Report on Insurance sector of India. Articles from newspapers and magazines. Various web sites of the insurance companies and related sites.

DATA ANALYSIS There are some features of analyzing data that need to be borne in mind when choosing the method for analyzing the research. The questionnaires were prepared to explore the psychology of individuals about being associated with Kotak as insurance advisor and to help the company grow by increasing its

sales. Instead of testing a hypothesis, a qualitative analyst may demonstrate evidence showing that a theory, generalizing, or interpretation is plausible.

SAMPLE SIZE Various area of Lucknow were covered in order to fill the questionnaire. I interacted with 111 individuals in order to know about their interest of being Insurance advisor of KOTAK Prudential. Sample Size 111

SAMPLE COMPOSITION I. Youth II. Executive III. Serviceman IV. Business person

RESEARCH DESIGN A research design provides the frame work to be used as a guide in collecting and analyzing data.

Descriptive Research: Market survey is one of the best examples of descriptive research. This is a one shot research study at a given point of time, and consists of a sample of the population of interest. Its advantages are that it gives a good overall picture of the position at a given time. It can cover many variables of interest, and is not affected by the movements of elements in the sample, because other elements can be substitute for them.

DATA ANALYSIS
1. What is your full time profession? a) Business -31 c) Private Jobs -42 e) Housewife -07 b) Govt. Service -17 d) Retired -14

Housewife 6% Retired 13%

Business Govt Service Private Jobs Retired Housewife

Business 28%

Private Jobs 38%

Govt Service 15%

2. According to you, the purpose of insurance is:

S. No. a. b. c. d.

Parameters Pre-mature death Living too long Childrens future Wealth creation

Order of preference 29 12 33 14

e.

Tax saving

23

Tax saving 21%

Pre-mature death 26%

Pre-mature death Living too long

Wealth creation 13%

Living too long 11% Childrens future 29%

Childrens future Wealth creation Tax saving

3. What efforts can be made to bring about more awareness amongst people? a) Media Ads - 26 c) Newspaper - 15 e) Event Sponsorship - 07 b) Banners - 04 d) Agents - 54 f) Any Other - 05.

Event Any Other Sponsorship 5% 6%

Media Ads 23%

Media Ads Banners Newspaper

Banners 4% Newspaper 14%

Agents Event Sponsorship Any Other

Agents 48%

4. You know how many names of private insurance company? a) Below 2 - 05 c) Between 4-6 08 b) Between 2-4 - 61 d) Above 6 37

Below 2 5%
Below 2

Above 6 33%
Between 2-4

Between 4-6

Between 2-4 55% Between 4-6 7%

Above 6

5. You like to work in market/field and want to interact with people? a) Yes - 47 b) No - 64

Yes 42%

Yes
No 58%

No

6. From how many years you live in NCR? a) Below 6 months - 13 c) 1 year- 2 year - 27 b) 6 months 1 year - 61 d) more than 2 years - 37

more than 2 years 27%

Below 6 months 9%
Below 6 months 6 months 1 year 1 year- 2 year

1 year- 2 year 20%

6 months 1 year 44%

more than 2 years

7.

How many people do you know in NCR? a) Less than 200 - 27 c) 500-1000 - 21
Above 1000 9%

b) 200-500 - 53 d) Above 1000 - 10

Less than 200 24%

Less than 200 200-500 500-1000 Above 1000

500-1000 19%

200-500 48%

8. Do you like to earn some extra money? a) Yes - 87 b) No - 14

No 14%

Yes

No

Yes 86%

9. Are you involved in Insurance Business? a) Yes - 28 b) No - 83

Yes 25%

Yes

No

No 75%

If YES, than answer the following question:

A. Duration of working? a) Below 6 months 12 c) 1 2 years - 02 e) Above 3 years -03 b) 6 months 1 year - 06 d) 2 3 years - 05

Above 3 years 11% 2 3 years 15%

Below 6 months 6 months 1 year 1 2 years 2 3 years Above 3 years

Below 6 months 45%

1 2 years 7%

6 months 1 year 22%

B. Annual Productivity given to company? a) Below 50,000 - 00 c) 1, 00,000 2, 00,000 - 02 e) 3, 00,000 4, 00,000 - 07 b) 50,000 1, 00,000 - 00 d) 2, 00,000 3, 00,000 - 02 f) Above 3, 00,000 - 17

50,000 1, 00,000 0% Below 50,000 0%

1, 00,000 2, 00,000 7% 2, 00,000 3, 00,000 7%

Below 50,000 50,000 1, 00,000 1, 00,000 2, 00,000 2, 00,000 3, 00,000

Above 3, 00,000 61%

3, 00,000 4, 00,000 25%

3, 00,000 4, 00,000 Above 3, 00,000

C. In which company are you working? a) LIC - 16 c) Other 08 b) Kotak - 04

Other 29%

LIC ICICI Prudential

LIC 57% ICICI Prudential 14%

Other

D. Are you satisfied with your company? a) Yes - 19 b) No 09

No 32%
Yes

No

Yes 68%

If NO, than answer the following question:

A. If given a choice, would you like to become a financial consultant of Kotak Life Insurance Company? a) Yes - 55 b) No - 28

No 34%
Yes

No

Yes 66%

B. Which age group do you belong? a) Below 25 - 41 c) 30 35 - 09 b) 25 30 - 27 d) Above 35 -06

Above 35 7% 30 35 11%
Below 25 25 30

Below 25 49%

30 35 Above 35

25 30 33%

C. Are you married? a) Yes - 47 b) No - 36

No 43% Yes 57%

Yes

No

D. What is your Educational Background? a) 10+2 - 13 c) Post Graduation - 14 e) Other - 03 b) Graduation - 40 d) Professional - 13

Professional 16%

Other 4%

10+2 16%

10+2 Graduation Post Graduation

Post Graduation 17% Graduation 47%

Professional Other

E. What is your Household income? a) Below 2 lacks - 53 c) 5 8 lacks - 09 b) 2 5 lacks - 21 d) Above 8 lacks - 00

5 8 lacks 11%

Above 8 lacks 0%
Below 2 lacks 2 5 lacks

2 5 lacks 25% Below 2 lacks 64%

5 8 lacks Above 8 lacks

FINDINGS
People are becoming more and more money conscious as I find very less person who doesnt want to earn extra money.

People are very much aware of Kotak among private companies as they respond me first name of Kotak and then others.

The overall scenario is that still people trust on LIC more than any other insurance company. Some time when I asked someone to become an advisor of Kotak they misunderstood with LIC. For them still life insurance means LIC.

Generally people are having leisure time of around 2-3 hours and still want to utilize this time to earn extra money, if they can.

Contrary to the prior thinking most of the people dont hesitate in doing field work a roaming in the market for money. They know that without hard work they cant earn money.

 There were many respondents who were not interested in attending seminar conducted by Kotak in their office, because of low awareness of private insurance company.

SUGGESTIONS AND RECOMMENDATION

Need to create and effectively deploy differentiated strategies in finding out more resources to recruit insurance advisors. Right prospects identification and thus segmentation, which need to be appropriate. Design and manage sales force, which yields high performance. More training of the employees can be done so that they produce best result. Recruitment process needs to be slightly fast, so that prospects can retain some confidence as in starting. Need to create better, differentiated detailed brochures for advisors recruitment. Increase advisors sales force quality as well as quantity by employing some HR professional, who time to time take some action for the improvement of insurance advisors. More advertising strategies should be taken to grasp the attention of those people who want to become insurance advisors.

 Make use of internet banking for increasing sales and also for promotion. There should be more incentives to insurance advisors they are the backbone of the company in order to increase sales they have to do mare efforts than others.

Generate some innovative and alternative channels of distribution, using the sources that can straight play with the emotion of the person and influence so high that it forces the human being to go for insurance and that to willingly. Recruit those individuals that really want to take this job as a challenge.

IMPORTANCE OF ADVISORS IN AN INSURANE COMPANY

In the insurance industry the sales team following the typical organization structure: Hierarchy in Insurance Company

SALES MANAGER

AREA SALES MANAGER

AREA SALES MANAGER

AREA SALES MANAGER

UNIT MANAGER

UNIT MANAGER

UNIT MANAGER

ADVISORS

ADVISORS

ADVISORS

The sales team comprises of the Sales Manager superior to Area Sales Manager, These ASMs (Area Sales Manager) have their own individual

team of Unit Manager and in turn Unit Managers their own team of financial advisors.

Each team of ASMs competing with each other in surge of achieving targets; each Unit Manager depends on their Advisors for their business. So whats the use of unit manager, why are they getting paid? There work is to manage their team of Advisors, extend them support in what ever way possible including regular training of products, closing big calls, database management. But it is the advisor that carries the flag of the company in the market; they bear the brunt in the field. They represent the company in the mark et to the customers, so nobody can deny the importance of Advisors in the whole system. They providing the company with the business and help their respective Unit Manager to achieve their targets. So a unit Manager has to be really careful while recruiting their Advisors.

The most important responsibility is to achieve the first P or Production growth its what staying in Business requires of an Kotak Manager. Part of this growth is accomplished by improving the productivity of the

existing agency member. However, bringing sufficient number of high quality new producers in to your sales organization each year is an absolute must. During the year of appointment, new Advisor usually account for a relatively small proportion of the organizations total produc tion. These points to a particularly significant fact, one that causes to have a natural tendency to neglect the recruiting responsibility. It is simply this the penalty for not recruiting, or for inadequate recruiting, is a differed penalty.

Nonetheless, the penalty will be realized in due time. Again, the number one job is to achieve consistent production increases. The most promising means of successfully getting this job done is to induct a sufficient number of quality advisors each year. The most promising means of achieving profitable production growth lies in your sales organizations capacity to give policy owners good counsel and prompt, courteous serves to give them value for premium paid. The best guarantee of having that capacity comes from retaining large number of productive advisor, In turn retention and productivity of advisor in

your organization depends largely on the quality and quantity of your recruiting efforts. Consequently, the development needs of your sales organization call for successful recruiting. Its a necessity. The induction of a sufficient quantity of high potential advisor results in substantial, steady growth in production. This is why manager who move to the top of Kotak honor roll and stay there are always found to be manpower-focused. Before we move to the how to of recruiting, lets consider some important philosophies relative to recruiting.

FIVE PERSISTENT CONCERNS:

As an Kotak Manager, you are fully committed to building a high performing, growing agency. This being true, it follows those five concerns must be constant in your annual planning. The SEARCH for talent The EVALUTION of potential advisors The ATTRACTION of advisors The RETENTION of advisors The PRODUCTIVITY of advisors

Any manager who attains satisfying results in these five areas will enjoy Satisfying sales results Outstanding persistency of business Superior policy owner service capabilities An enviable reputation as a Kotak agency builder A momentum which comes from the synergistic benefit of success

OBVIOUSLY, THE FIRST THREE CONCERNS SEARCHING, EVALUATING AND ATTRACTING-ARE VITAL:

The other two concerns, the retention and productivity of advisor, must e considered together. To attain success might be achieved in either area without total or real benefits to the agency, the company or the client. There is nothing short-term or temporary about the challenge connected with these recruiting concerns. They are constant. They are eternal.

CHART SHOWING HOW TO GET POTENTIAL ADVISOR: PUTTING IT SIMPLY IN A FLOW SEARCH Where to look for

ATTRACT How to attract to life Insurance

EVALUATE How to evaluate

PRODUCTIVITY

RETENTION

THE BASICS

The basic principal is involved in getting the recruiting job done successfully and consistently. It is, of course, the one job must not delegate.

Philosophy of high standards

Philosophy of high standards and a success syndrome is the central point of maintaining high standards. The presence of successful, high performing Advisors in your organization attracts more of the same. A recent study revealed that nearly one-half of these individuals choose an insurance career because a successful advisor influences them. Our experience at Kotak supports this conclusion.

 Atmosphere of Success

Ideally, as prospective Advisors enter your office, they should find themselves surrounded by an atmosphere of success. They should see evidence of a positive and dynamic environment. They should be aware of high quality men and women high standards of production high standards of the office neatness and arrangement high standards of income high standards of business management. They should be made to feel to, taste it and senses it. As a result, they will have a natural inclination to become a part of the winning sales organization you building.

There is no question about it its always easier to recruit successfully in an organization that is on the move. You must contribute to an environment where things are obviously happening one that has an atmosphere of success. This is the starting point if you are going to attract high potential advisors.

 Attraction Power

Second, Work at developing your Attraction Power. Strive to be the kind of person you want other to be. Be kind other want to emulate. Youll have taken a giant steno toward being an effective recruiter when you do.

Be especially consociation about your appearance. You cant judge a book by its cover is a well-worn and accepted adage. However, most prospects and prospective adv isors dont believe it. They judge you by your overall appearance. Also, work consistently at doing the thing, which will cause you to be known for what you know. An active Involvement in social and civic organization will assist you in letting your reputa tion precede you. Youll have taken another step toward being an effective recruiter when you do these things.

Decide on the profile of the adviser

Next, decide on the profile of the adviser who will fit and grow best in your operation the kind of person you can develop best. Experience,

age, market, contacts, income requirements, and a number of other factors should be considered in answering the big question what kind of an advisor is best suited for you and your organization.

Constant need of advisors at KOTAK Prudential

Remember the need of quality advisors never diminishes at KOTAK Prudential. It continues in to the future as far as you can see.

Thread of discount (TOD)

Fifth, be reminded that there is no large, ready supply of high potentia l candidates who are discontented with their present job. However, things do happen in individuals jobs, their lives or their family situation, which can cause them to become prospects for you some times, almost overnight. When the thread of discount surfaces, be sure they are thinking of you and the KOTAK Prudential.

 Success determined by past performance

Sixth, most successful advisor are highly competitive and generally come into our business from jobs where there success is determined by their performance. Consistence search for prospective advisors among coaches, commission sales people and individual who have been in business for themselves.

Build a weekly recruiting success formula

Finally, build a weekly recruiting success formula. Our statistics show that to recruit one person, youll probably need at least 30 initial contacts. This will gives you seven people who will pass the selection test. This is turn develops two advisor you will appoint. Understanding these ratio enable you, emotionally and physically, to plan and achieve the necessary activity to reach your recruiting goal each year.

RECRUITING SUCCESS FORMULA

Study Exhibit 2, recruiting success formula. Develop your numbers. This strategy will help keep you focused on your number one job recruiting enough of the right kind each year. Recruiting success formula
30 CONTACTS

8 FOR INTERVIEW

2 SELECTED

Before we move on to searching it is important to know the profile of the adviser. The general profile would be: Age 25-45 years Smart appearance and should health Good market

 High IQ and common sense Ability to work under pressure Prior sales experience Integrity and character Money motivation Drive and ambition

STRATEGIES ADVISORS

INVALVED

IN

SEARCHING

POTENTIAL

Searching for high potential prospective advisor Your search for prospective advisors must be continuous and systematic just like prospective for sales, you must search among several sources on a regular basis sources are broadly classified as primary source and secondary source. Personal observation This method of uniquely personal. It permits you to apply your own standards and exercise your own judgment.

Always be on the alert for prospective adviser in your daily selling activities in instinctively apprises as prospective advisors those you see, meet or sell. Stay in circulation and meet a lot of people on a regular basis. Develop these individuals as friends and clients, and then determine whether or not to recruit them. Present advisor recommendation No one knows more about the kind of person you seek and the kind of opportunities you have for the prospective advisor then the present members of your sales organization. Moreover, they have a selfish interest in wanting their associates to be type of person who will reflect favorably on their organization. Many successful advisors have an ability to attract promising prospective advisors who can and do succeed. Client referrals Clients are readily accessible source of prospective advisor and referrals. It is safe to assume that client who has relied upon your agency to handle their insurance are pleased with both you and your work. Since you have created a favorable impression, the can picture themselves or others as having the same success.

Therefore, it is mostly a matter of helping them to help you by making enquires and asking questions designed to remind them of names of prospective advisors. College campuses Many high-potential, high quality young people are being recruited directly fr om college. Todays college graduate seems to be more interested in a meaningful career than most opportunities offer.

However, some caution should be used in recruited on campus. The person you seek from college must have exhibited define leadership qualities and have a history a success. Also most people in the final year are looking for permanent jobs and might use this as a atop gap opportunity. While targeting colleges it might be better to target colleges, which has students coming from business communities. Also targeting colleges offering professional courses might not work since most of these students would be interested in pursuing their respective profession.

 Seminars

Seminars recruiting are a resourceful strategy that breaks with tradition. It makes it possible for the prospective advisor, as part of a group, to obtain information opportunities in the insurance business, as part of a group, the prospective advisors feels comfortable and quickly develops open mindedness to investigating the possibility of a career insurance. S seminars include seminars conducted by the association, doctors seminars, HR professional. These seminars are one way to reaching out to many people not by making a presentation to the participants but by also word of mouth since these participants would like to their families and friends, so also the chain would continue.

Newspaper advertisement

Newspaper advertising created considerable activity. It is one of the fastest ways to get name and talk people seeking a change in employment. Consider as a Wholesale Method of widening your range of contacts with prospective advisors. Keep in mind that generally develops pop -up prospects that must be screened carefully.

Realize that valuable time can be wasted interviewing o r qualifying responds who really only job are hunting. - or who are in need of a job right now. Advanced planning with a definite interview procedure will keep u from falling into this trap. At Kotak newspaper advertisements are regular a mode.

Direct Mail

Mass mailing is a system if used can be a very successful tool. One system is to send letter with reply cards on a regular basis especially to centers of influence. Use list from club, church and alumni directories. The standards letter should briefly describe the rewards of a successful insurance sales career. In a letter of this nature, attempt to arouse the interest of the individual who receives it in the hope that he or she will be more receptive to your follow-up. You will want to investigate this innovation source for producing names of quality prospective advisors. A few examples of these COIs or centers of influence are:

 Doctors Lawyers Pundits Priests Chartered Accountants Teachers NGO workers Bankers

The one thing common to all these people is the contacts that the have and the influence that the have over these contact. To insure a continuous flow of nomination from COIs, practice these few basic rules for developing center of influences.

Keep contacting them on a planned basis. The center that gives you one name will give you more if you keep in touch and ask. Report back to your centers. Keep them informed of your result. Eliminate from your list of those centers who do not prove to be cooperative or productive or who continually give names of people needing jobs.

 Maintain visibility. Keep your name in front of them. Select your centers with an eye to developing as many markets as possible. Show your appreciation. Let your centers know you appreciate their help.

CONCLUSION

For every insurance company life insurance advisors are the life line and a very huge asset so each company try to recruit and select a potential force of life insurance advisors because this is the advisors who generate maximum business for the insurance company. Insurance advisors provide a very strong support to the insurance company and do all possible effort to generate huge amount of profit to the company and for him.

In Kotak recruitment and selection procedure is really very impressive. By the help of this process, company recruits a very good class of advisors. A detail study is done before starting the recruitment and selection procedure that help the company to select the best advisors. The recruitment, selection and training process of insurance advisors is a slight long process because of the training provided by the Insurance Regulatory and Development Authority (IRDA).

Form the detailed study of recruitment and selection procedure of the insurance advisors I come on the conclusion that it is a very impressive process carried out by KOTAK prudential. This study helps us to understand all the possible aspects related to the KOTAK Prudentials recruitment and selection procedure.

ANNEXTURE
After collection of data, the analysis of it was done through graphs. RESPONSE OF QUESTIONNAIRE 1. What is your full time profession? a) Business c) Private Jobs e) Housewife b) Govt. Service d) Retired -

2. According to you, the purpose of insurance is:

S. No. a. b. c. d. e.

Parameters Pre-mature death Living too long Childrens future Wealth creation Tax saving

Order of preference 29 12 33 14 23

3. What efforts can be made to bring about more awareness amongst people? a) Media Ads c) Newspaper e) Event Sponsorship b) Banners d) Agents f) Any Other - .

4. You know how many names of private insurance company? a) Below 2 - 05 c) Between 4-6 08 b) Between 2-4 - 61 d) Above 6 37

5. You like to work in market/field and want to interact with people? a) Yes b) No

6. From how many years you live in NCR? a) Below 6 months c) 1 year- 2 year b) 6 months 1 year d) more than 2 years -

7.

How many people do you know in NCR? a) Less than 200 - 27 c) 500-1000 - 21 b) 200-500 - 53 d) Above 1000 - 10

8. Do you like to earn some extra money? a) Yes 9. Are you involved in Insurance Business? a) Yes If YES, than answer the following question: D. Duration of working? a) Below 6 months 12 c) 1 2 years - 02 e) Above 3 years -03 B. Annual Productivity given to company? a) Below 50,000 - 00 c) 1, 00,000 2, 00,000 - 02 e) 3, 00,000 4, 00,000 - 07 b) 50,000 1, 00,000 - 00 d) 2, 00,000 3, 00,000 - 02 f) Above 3, 00,000 - 17 b) 6 months 1 year - 06 d) 2 3 years - 05 b) No b) No -

C. In which company are you working? a) LIC c) Other b) Kotak -

E. Are you satisfied with your company? a) Yes b) No

If NO, than answer the following question: A. If given a choice, would you like to become a financial consultant of Kotak Life Insurance Company?

E. Which age group do you belong? a) Below 25 - 41 c) 30 35 - 09 F. Are you married? a) Yes b) No b) 25 30 - 27 d) Above 35 -06

D. What is your Educational Background? a) 10+2 c) Post Graduation b) Graduation d) Professional -

e) Other - 03

E. What is your Household income? a) Below 2 lacks c) 5 8 lacks b) 2 5 lacks d) Above 8 lacks -

F. How much time you provide easily besides your job hours? a) 0-2 hrs c) 4-6 hrs b) 2-4 hrs d) Time Full

BIBLIOGRAPHY

BOOK: MARKETING MANAGEMENT,Dr. S.L VARSHNEY AND R.L

GUPTA, THIRD REVISED EDITION , SULTAN CHAND AND SONS

NEWSPAPERS:TIMES OF INDIA