EXECUTIVE SUMMARY

Monopoly of LIC has been broken to make Indian Insurance to change its face and
pace to tap the market and to make the new challenges in it. Insurance in India is not about
India only; it is an open sector for the private players. The name which you would see in
Indian insurance market is something like: - BAJAJ (Indian company) + Allianz (foreign
player), TATA (Indian company) + Aig (foreign player) and so many like them. Companies
now are tapping a lot of ways to capture the market and hence adopting different ways to hold
the large portion of the market. My project was to understand the different marketing
strategies adopted by the companies to increase their market share and along with it meeting
their own targets to achieve the position of no.1 in respective field or segment of the market.
My summer training learning helped me a lot to complete my project in order to learn a lot
of things of the corporate.
As a project trainee the first task given to me was to understand the basic behaviour of
the consumer in order to manipulate the market according to the our target competition. For
this we did developed a questionnaire and I did my survey in important location of Noida and
Delhi metro. From this database I was asked to do the called calling in order to make
strengthen the agency channel and I learnt how to develop this channel and how to create the
business opportunities besides grabbing them. This made me to know issues of competitive
market in a better manner and it also gave me a lot of ideas to enhance my communication
and convincing skills

CHAP 1. INTRODUCTION TO INSURANCE

INTRODUCTION
In the preceding chapter the nature and significance of risk and method of handling
risks has been explained. As we have seen the possibility of loss creates uncertainty, which
has undesirable economic and psychological effect. When we speak of methods of handling
risks we are talking about efforts to reduce uncertainty. While no approach to risk problems is
used to exclusions of all others the single most important an widely used alternatively for
most families & business is insurance.
Insurance is a financial topic of paramount importance for every individual. Insurance
is designed to protect the financial well-being of you and your dependents in the case of
unexpected loss. Some forms of insurance are required by law, while others are optional.
Agreeing to the terms of an insurance policy creates a contract between you and the insurance
company. In exchange for payments from you (called premiums), the insurance company
agrees to pay you a sum of money upon the occurrence of a specific event. That event may be
as mundane as a visit to the doctor or as serious as a car crash, depending on the type of
insurance. Insurance involves pooling funds from many insured entities (known as exposures)
to pay for the losses that some may incur. The insured entities are therefore protected from
risk for a fee, with the fee being dependent upon the frequency and severity of the event
occurring. In order to be an insurable risk, the risk insured against must meet certain
characteristics. Insurance as a financial intermediary is a commercial enterprise and a major
part of the financial services industry, but individual entities can also self-insure through
saving money for possible future losses.
Insurance as security is need of all human beings. No animal, no plant nor mountains
and oceans want any security, like man does. Man is afraid of uncertainty, fears and death.
Although a reality, one day each one will die; early or later, timely or untimely is the
question, which has no answer. He is afraid of risk & losses in future. He is ever in search of
security & certainty. In early history man lived in-groups and communities to be secure. At
the earlier stage, whenever an earning member would die due to disease or death, the other
members of the social group (or family or clan) would contribute to bail the survivors in the
family out of financial difficulties. This contribution was in the shape of food- clothing and
shelter. Even today we donate money, food, clothing and other materials of life to rehabilitate
2

the family whose breadwinner has left for his heavenly abode, unfortunately, suddenly, sadly.
(Also people, friends, relatives ven today contribute towards marriage, education, healthcare
expenses or mishap). Later, as commercial considerations grew stronger and stronger;
nucleus family growth became a common practice these contributions and sharing started
becoming individualistic and took the shape of premium. The assurances which were
earlier by will and practice became a commodity (though intangible). Thus the concept of
Insurance grew. Any person who would not contribute, or would contribute less according to
his paying capacity was denied reciprocal help or promise of help, or was given help in
proportion to his contribution which he had been contributing as a faithful obedient member
of the society.

CHAP 2. CONCEPT OF LIFE INSURANCE

In earlier days, in India, on an unexpected death of breadwinner in any family, the
villagers or neighbourhood would collect funds to help the survive in the family and
such practice continues even now. Today also, when after death Bhog or Kiryas
takes place, relatives give money to the survivors though this may not be adequate
collection to meet expenses of remaining part of life when there is no breadwinner.
Insurance is on similar pattern.
Life Insurance is an arrangement through which a person can plan for the continuation of
income when uncertainties and certainties (i.e.) illness or Accident and death or old age
disrupt or destroy his ability to earn his livelihood. Therefore the Insurance is
1. The business of insurance is related to protection of human life, human created assets,
human disability and business liabilities possessed by human beings which have a definite
value, and
2. Assets and human life generate benefit and income for the owner and his/her family
members, and
3. Loss of assets / human life for any reason stops the benefits and income to the owner and
family members respectively, and
4. Results in falling of living standards in the family, quality of life and future growth of the
associated family members, and
5. Insurance is a mechanism that helps to reduce such adverse consequences through pooling,
spreading and sharing of risk.
Thus life insurance business is complimentary to the Government efforts in social
management.
MAIN CONCEPTS ABOUT LIFE INSURANCE
Every human being has fear in his mind. The fear whether he will be able to meet the basic
needs of the life i.e. Food, Clothing and Housing (Roti, Kapda and Makkan). He has fear not
only for himself but also for his dependents. The source of income to meet his basic needs
4

may be through service or business. If he is able to meet his basic needs then he acquires the
assets i.e. vehicles, property or jewellery etc. Then he gets additional fear of saving the assets
from destruction. (The assets may be destroyed through accident, fire or earthquake etc. and
the income may be cut off due to certainty i.e. old age and death or uncertainty i.e. accident,
illness or disability.) As you know, the old age and death is certain for every human being
while the accident, illness, disability and destruction of assets may be by random. The
number of accidents will take place but with whom is uncertain. Therefore, to overcome this
problem, the Insurance plays a very important role.
The principal source of income of an individual comes from the compensation for work
performed by him. If this source of income gets cut off then: Family will make social and economic adjustments like:
Wife may take employment at the cost of home making responsibilities Children may
have to go for work at the cost of education.
Family members might have to accept charity from relatives, friends etc. at the cost of their
independence and self-respect.
Family standard of living might have to be reduced to a level below the essentials for
health and happiness.
NEED OF LIFE INSURANCE
(a) To provide Security and Safety
The Life Insurance provides security against premature death and payment in old age to lead
the comfortable life. Similarly in general Insurance, the property can be insured against any
contingency i.e. fire, earthquake etc.
(b) To provide Peace of Mind
The uncertainty due to fire, accident, death, illness, disability in the human life, it is beyond
the control of the human beings. By way of Insurance, he may be compensated financially
but not emotionally. The financial compensation provides not only peace of mind but also
motivates to work more and more.

(c) To Eliminate Dependency

On the death of the breadwinner, the consequences need not be explained. Similar to the
destruction of property and goods the family would suffer a lot. It could lead to reduction in
the standard of living or begging from relatives, friends or neighbours. The economic
independence of the family is reduced. The Insurance is the only way to assist and provider
them adequate at the time of sufferings.
(d) To Encourage Savings
Life Insurance provides protection and investment while general Insurance provides only
protection to the human life and property respectively. Life Insurance provides systematic
saving because once the policy is taken then the premium is to be regularly paid otherwise the
amount will be forfeited.
(e) To fulfil the needs of a person
a) Family needs
b) Old age needs
c) Re-adjustment needs
d) Special needs: Education, Marriage, health
e) The clean up needs: After death, ritual ceremonies, payment of wealth tax and income
taxes are certain requirements, which decreases the amount of funds of the family members.
To Reduce the Business Losses:
In business the huge amount is invested in the properties i.e. Building and Plant and
Machinery. These properties may be destroyed due to any negligence, if it is not insured no
body would like to invest a huge amount in the business and industry. The Insurance reduced
the uncertainty of business losses due to fire or accidents etc.
(g) To Identify the Key man:
Key man is a particular man whose capital, expertise, energy and dutifulness make him the
most valuable asset in the business and whose absence well reduce the income of the
employer tremendously and upto that time when such employee is not substituted. The death
or disability of such valuable lives will prove a more serious loss than that fire or any hazard.
The potential loss to be suffered and the compensation to the dependents of such employee
require an adequate provision, which is met by purchasing an adequate life policies.
6

(h) To Enhance the Limit:

The business can obtain loan but pledging the policy as collateral for the loan. The insured
persons are getting more loan due to certainty of payment at their death.
(i) Welfare of Employees:
The welfare of the employees is the responsibility of the employer. The employer is supposed
to look after the welfare of the employees. The provisions are being made for death, disability
and old age. Though these can be insured through individual life Insurance but an individual
may not be insurable due to illness and age. But the group policy will cover his Insurance and
the premium is very low in group Insurance. The expenditure paid on account of premium
will be allowable expenditure.

ROLE OF LIFE INSURANCE IN ECONOMIC DEVELOPMENT

In addition to contributing to the economy by preserving human life values and assets
and protecting loss, Insurance also aids in economic development. To grow economy, the
Govt. Needs capital to finance infrastructure i.e. Roads, bridges, industrial farm
communication and Railways lines which requires the huge investment. Individual or Govt. is
unable to provide such funds. As the life Insurance contracts are long term contacts.
Therefore, insurer by investing funds that flow to them from their many policyholders have
become the principal source of capital for the economy.
Investments are essential ingredients for economic development of any nation.
Investments by Insurance companies are in social sector, infrastructure development and
government security, papers and bonds.
Life insurance plays a major role in mobilization of pubic savings.(Rs. 75,000 crores/
year)
Savings out of life insurance fund are utilized in investments for growth. (infrastructure
bonds, Housing, Railway, equity market etc.)

 Looking to non-life side business, industry and trade would be seriously handicapped in
the absence of insurance cover relating to losses due to fire, earthquake, flood, storm - natural
calamities, act of God etc.)
Wide-spread of Insurance brings in indirectly the following advantages
Better living standards
Higher productivity
Improved Law and Order
Higher GDP
Healthy Generation
Discourages bad habits and practices causing damage to human life
Higher mortality
Happy society
Enhanced self-esteem
Creative Minds
Entrepreneurship qualities
Social upliftment of the society as a whole

CHAP 3. INTRODUCTION OF KOTAK MAHINDRA COMPANY AND ITS

BUSINESSES.
8

Established in 1985, the Kotak Mahindra Group is one of Indias leading financial
services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the
Groups flagship company, received a banking license from the Reserve Bank of India (RBI).
With this, KMFL became the first non-banking finance company in India to become a bank
Kotak Mahindra Bank Limited.
The consolidated balance sheet of Kotak Mahindra Group is over Rs. 1.34 lakh cr and
the consolidated net worth of the Group stands at Rs. 20,554 cr (approx. US$ 3.3 billion) as
on September 30, 2014. The Group offers a wide range of financial services that encompass
every sphere of life. From commercial banking, to stock broking, mutual funds, life insurance
and investment banking, the Group caters to the diverse financial needs of individuals and the
corporate sector. The Group has a wide distribution network through branches and
franchisees across India, and international offices in London, New York, Dubai, Abu Dhabi,
Mauritius and Singapore.

KOTAK MAHINDRA LIFE INSURANCE

Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between
Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. A Company that combines its
international strengths and local advantages to offer its customers a wide range of innovative
life insurance products, helping them take important financial decisions at every stage in life
and stay financially independent. The company covers over 3 million lives and is one of the
fastest growing insurance companies in India. Kotak Mahindra is one of India's leading
banking and financial services organizations, offering a wide range of financial services that
encompass every sphere of life. From commercial banking, to car finance, to stock broking,
to asset management, to life insurance, to investment banking, the group caters to the
financial needs of individuals and corporates. The group has a net worth of Rs 10,060 cr. and
has a distribution network through branches and franchisees across the country and offices in
New York, San Francisco, London, Dubai, Mauritius and Singapore, servicing close to 8
million customer accounts. Old Mutual plc is an international long-term savings, protection
and investment Group. Originating in South Africa in 1845, the Group provides life
assurance, asset management, banking and general insurance to more than 15 million
customers in Europe, the Americas, Africa and Asia. Old Mutual plc is listed on the London
Stock Exchange and the Johannesburg Stock Exchange, among others. In the year ended 31
9

December 2010, the Group reported adjusted operating profit before tax of 1.5 billion (on an
IFRS basis) and had 309 billion of funds under management, from core operations.

TYPES OF LIFE INSURANCE

Given below are the basic types of life insurance policies. All other life insurance policies are
built around these basic insurance policies by combination of various other features.

Term Insurance Policy

A term insurance policy is a pure risk cover policy that protects the person insured for
a specific period of time. In such type of a life insurance policy, a fixed sum of money
called the sum assured is paid to the beneficiaries (family) if the policyholder expires
within the policy term. For instance, if a person buys a Rs 2 lakh policy for 15 years, his
family is entitled to the sum of Rs 2 lakh if he dies within that 15-year period.

If the policy holder survives the 15-year period, the premiums paid are not returned
back. The advantage, apart from the financial security for an individuals family is that
the premiums paid are exempt from tax.

These insurance policies are designed to provide 100 per cent risk cover and hence
they do not have any additional charges other than the basic ones. This makes premiums
paid under such life insurance policies the lowest in the life insurance category.

Whole Life Policy

A whole life policy covers a policyholder against death, throughout his life term. The
advantage that an individual gets when he / she opts for a whole life policy is that the
validity of this life insurance policy is not defined and hence the individual enjoys the
life cover throughout his or her life.

10

Under this life insurance policy, the policyholder pays regular premiums until his
death, upon which the corpus is paid to the family. The policy does not expire till the
time any unfortunate event occurs with the individual.

Increasingly, whole life policies are being combined with other insurance products to
address a variety of needs such as retirement planning, etc.

Premiums paid under the whole life policies are tax exempt.

Endowment Policy

Combining risk cover with financial savings, endowment policies are among the
popular life insurance policies.

Policy holders benefit in two ways from a pure endowment insurance policy. In case
of death during the tenure, the beneficiary gets the sum assured. If the individual
survives the policy tenure, he gets back the premiums paid with other investment returns
and benefits like bonuses.

In addition to the basic policy, insurers offer various benefits such as double
endowment and marriage/ education endowment plans.

The concept of providing the customers with better returns has been gaining
importance in recent times. Hence, insurance companies have been coming out with new
and better ULIP versions of endowment policies. Under such life insurance policies the
customers are also provided with an option of investing their premiums into the markets,
depending on their risk appetite, using various fund options provided by the insurer,
these life insurance policies help the customer profit from rising markets.

The premiums paid and the returns accumulated through pure endowment policies
and their ULIP variants are tax exempt.
11

Money Back Policy

This life insurance policy is favoured by many people because it gives periodic
payments during the term of policy. In other words, a portion of the sum assured is paid
out at regular intervals. If the policy holder survives the term, he gets the balance sum
assured.

In case of death during the policy terms the beneficiary gets the full sum assured.

New ULIP versions of money back policies are also being offered by various life
insurers.

The premiums paid and the returns accumulated though a money back policy or its
ULIP variants are tax exempt.

ULIPs

ULIPs are market-linked life insurance products that provide a combination of life
cover and wealth creation options.

A part of the amount that people invest in a ULIP goes toward providing life cover,
while the rest is invested in the equity and debt instruments for maximising returns. .

ULIPs provide the flexibility of choosing from a variety of fund options depending on
the customers risk appetite. One can opt from aggressive funds (invested largely in the
equity market with the objective of high capital appreciation) to conservative funds
(invested in debt markets, cash, bank deposits and other instruments, with the aim of
preserving capital while providing steady returns).
12

ULIPs can be useful for achieving various long-term financial goals such as planning
for retirement, childs education, marriage etc

Annuities and Pension

In these types of life insurance policies, the insurer agrees to pay the insured a
stipulated sum of money periodically. The purpose of an annuity is to protect against
financial risks as well as provide money in the form of pension at regular intervals.

13

CHAP 4. MANAGEMENT OF KOTAK MAHINDRA OLD MUTUAL LIFE

INSURANCE

Mr. Gaurang Shah

Director

Mr. Shah, the Director of the company is a man of varied experience and interests. He is
highly qualified in terms of both education and...

Mr. G Murlidhar
Managing Director

14

Mr. Murlidhar is one of the founder members of Kotak Mahindra Old Mutual Life Insurance
Ltd. He has served the company in...

Mr. Sunil Sharma

Appointed Actuary, Kotak Mahindra Old Mutual Life Insurance Ltd
As the Appointed Actuary at Kotak Mahindra Old Mutual Life Insurance Limited, Sunil
Sharma is responsible for...

Mr. Sudhakar Shanbhag

Chief Investment Officer, Kotak Mahindra Old Mutual Life Insurance Ltd

Sudhakar Shanbhag is the Chief Investment Officer at Kotak Mahindra Old Mutual Life
Insurance...

15

Mr. Sugata Dutta

Executive Vice President and Head, Human Resources

Mr. Sugata Dutta heads the Human Resources and Administration function and is responsible
for Recruitment...

Mr. Suresh Agarwal

Executive Vice President and Head, Distribution & Strategic Initiatives

Mr. Suresh Agarwal is the Executive Vice President and Head of Distribution & Strategic
Initiatives at Kotak Life Insurance...

Ms. Kirti Patil

Senior Vice President and Head, Information Technology

Ms. Kirti Patil is the Head of Information Technology at Kotak Life Insurance. She is
responsible for ensuring that the company's technology...

16

Mr. Cedric Fernandes

Senior Vice President & Chief Financial Officer

In his capacity as the Senior Vice President and Chief Financial Officer (CFO) of Kotak
Mahindra Old Mutual Life Insurance Ltd...

Ms. Elizabeth Venkataraman

Senior Vice President and Head, Marketing, Kotak Mahindra Old Mutual
Life Insurance Ltd
As Senior Vice President and Head of Marketing at Kotak Mahindra Old Mutual Life
Insurance, Elizabeth Venkataraman is...

Mr. Hitesh Veera

17

Senior Vice President and Head, Operations, Customer Service,

Underwriting & Claims, Kotak Mahindra Old Mutual Life Insurance Ltd
Mr. Hitesh Veera is the Senior Vice President and Head - Operations,
Customer Service, Underwriting & Claims at Kotak Life Insurance...

Mr. Subhasis Ghosh

Senior Vice President and Head, Financial Institutions Group

Mr. Subhasis Ghosh is a Commerce (Honours) graduate from Calcutta University. He has
over 23 years of experience...

CHAP 5. SOME KEY PLANS OFFERED BY KOTAK MAHINDRA OLD MUTUAL

LIFE INSURANCE

18

KOTK TERM PREFERRED PLAN

Life is uncertain. Unfortunate events like an untimely death of the breadwinner can put a
family at a great risk of being financially insecure. The Kotak Term Plan / Kotak Preferred
Term Plan is a pure risk cover plan and an economical means of providing an adequate level
of financial protection. In this plan, the life cover amount (sum assured) is paid to the
beneficiary in case of the unfortunate death of the life insured. As a result, the family of life
insured is well cushioned financially even if the life insured is no longer around to provide.
Important Features About Plan
Low Cost insurance plan
Kotak Term Plan / Kotak Preferred Term Plan provides you the benefit of having a high cover
at economical prices. It also offers reduced premiums for women. Furthermore, in Kotak
Preferred Term Plan, for a sum assured of Rs 25 lakh and above, special premium rates are
offered to non- tobacco users. Hence, this plan provides you a good value proposition for
your money.
Choice of premium payment mode
Whether you prefer a single payment mode or the regular option of premium payments over
the policy years, we have the right solutions for you. If you opt for the regular mode, you still
have the choice of annual, half-yearly, quarterly or monthly premium payment. Thus, you are
offered high level of flexibility in paying premiums the way you choose.
Plan conversion option
For enhanced protection, there is an option of converting your Kotak Term Plan / Kotak
Preferred Term Plan policy to a policy of any other plan* offered by Kotak Life Insurance
(except for term plans). So long as there are at least 5 years remaining before the cover
ceases, you can avail this option. Thus, with your changing needs you can actually convert
your plan into a different one that better suits your needs.
Additional protection
In case you have selected the regular premium payment option, you can enhance your
protection with the following rider plans if they do not exceed 30% the premium (except for
Kotak Critical Illness Benefit) for your Kotak Term Plan / Kotak Preferred Term Plan policy.
19

Entry Age

18 65 years

Maturity Age

Maximum: 70 years

Policy Term

Minimum: 5 years Maximum: 30 years

Premium Payment

Single premium payment

Mode

OR
Annual/Half-yearly/Quarterly/Monthly

Sum Assured

Kotak Term Plan : Min: Rs, 3,00,000/-, Max :Rs. 24,99,999/Kotak Preferred Term Plan : Min: Rs. 25,00,000/-, Max :
Subject to underwriting

General Exclusive
In the event of the life insured committing suicide within one year of the date of issue of the
policy, 80% of the premiums paid shall be payable to the nominee.
In case of suicide within one year of the date of revival, when the revival is done within 6
months from date of first unpaid premium : Suicide Exclusion shall not be applicable and the
Death Benefit under the product shall be payable.
However, in case of suicide within 1 year of the date of revival, when the revival is done after
6 months from the date of first unpaid premium : Higher of 80% of Premiums Paid or
Surrender Value (if any) at the date of claim shall be payable.
TAX BENEFITS
Benefits earned under this plan are in accordance with the Income Tax Act, 1961. You can
avail tax benefits on:

Your premiums under Section 80C.

Maturity or death claim proceeds under Section 10 (10D)

20

Tax benefits under the policy will be as per the prevailing income tax laws and are subject to
change in the tax laws. You are advised to consult your tax adviser for details.
OTHER PLANS OFFERED BY KOTAK LIFE INSURANCE
Protection Plans
Insurance Protection plans help you secure your loved ones' future against life's uncertainties.
A term life insurance policy is one where the person insured paid a certain premium
periodically and either receives the benefits at the term or, in the event of the assured person's
death, the family gets the benefit. These plans are quite cost-effective as they focus on
providing only life cover and no other returns.

Kotak Saral Suraksha

Kotak e-Term/ e-Preferred Term

Kotak Loan Protection Plan

Kotak Term Plan/ Preferred Term Plan

Kotak Eternal Life Plans

Retirement Plans
Retirement Planning ensures that you enjoy the same lifestyle which you are used to and
following the same hobbies and pleasurable activities, even years after your retirement and do
not depend upon your kin for support. A sound pension plan also guarantees the financial
independence of the family in the unfortunate event of the insured's demise.

Kotak Capital Multiplier Plan

Kotak Retirement Income Plan

Savings & Investment Plans

The Savings and Investment Plans work as growth plans that help you maximize wealth
creation. In the recent times, life insurance products have evolved beyond providing just 'risk
protection'. Today, life insurance plans are attractive options for creating wealth - an
investment vehicle that can maximize returns. Such investment plans give you competitive
21

returns apart from added incentives like bonuses. These growth plans provide the dual
benefits of financial protection as a risk cover and attractive returns over a long term.

Kotak Assured Income Plan

Kotak Platinum

Kotak Single Invest Advantage

Kotak Ace Investment Plan

Kotak Wealth Insurance

Kotak Secure Invest Insurance

Kotak Endowment Plan

Kotak Money Back Plan

Kotak Premium Return Plan

Kotak Surakshit Jeevan

Child Plans
Whether it is to fund an education or a new age career choice or a fairytale wedding or any
other purpose for the well being of your kid through his/her childhood and teenage years, a
child plan policy provides for all the benefits and helps you plan a financially secure future
for your child.

Kotak Headstart Child Assure

Kotak Child Advantage Plan

Group Plans
Providing your employees with various group life insurance policies is one way of showing
them that you truly care about them. When your employees are happy and satisfied, they

22

automatically take pride in working for your organization which, in turn, increases your
organizations productivity and output. Thus, group life insurance policies not only help you
retain employee but also improve their efficiency and in the long term, boost profits.

Kotak Group Shield

Kotak Group Assure

Kotak Term Group Plan

Kotak Gratuity Group Plan

Kotak Credit-Term Group Plan

Kotak Complete Cover Group Plan

Rural Plans
Kotak Gramin Bima Yojana protects your loved ones against uncertainties and provides you
with guaranteed returns, just like your fixed deposit. The plan allows you to pay a one-time
premium thus saving you the hassle of annual payments and also ensures that you get 1.5
times the actual principle on maturity.

Kotak Gramin Bima Yojana

Riders
These help you customize your policies and enhance your cover, Kotak Life Insurance offers
a set of riders which you may opt for along with your basic policy and shape your policy to
suit your individual needs.

Kotak Term Benefit (KTB)/ Kotak Preferred Term Benefit (KPTB)

Kotak Accidental Death Benefit (ADB)

Kotak Permanent Disability Benefit (PDB)

Kotak Critical Illness Benefit (CIB)

23

CHAP 6. MAJOR COMPETITORS OF KOTAK MAHINDRA OLD MUTUAL LIFE

INSURANCE
Public Sector
1. Life Insurance Corporation of India
Private Sector
1. AEGON Religare Life Insurance
2. Aviva India
3. Bajaj Allianz Life Insurance
4. TATA AIA Life INSURANCE
5. Reliance Life Insurance
6. Star Union Dai-ichi Life Insurance
7. HDFC Standard Life Insurance Company Limited
8. IDBI Federal Life Insurance
24

9. India First Life Insurance Company

10.Birla Sun Life Insurance
11.Max Life Insurance
12.ICICI Prudential Life Insurance Company
13.Canara HSBC OBC Life Insurance Company Pvt Ltd.
14.BHARTI Axa life insurance company
15.Exide Life Insurance company Ltd
16.L&T general insurance co LTD
17.SBI Life Insurance Company
18.DHFL Primerica life insurance

Past years performance and future opportunities

Capital remained constant at Rs. 562 crores. There was no capital infusion in 2010-11.

Gross Total Premium Received has grown to Rs. 2,975 crores, of which new business
premium accounted for Rs. 1,253 crores and renewal premium accounted for Rs. 1,722 crores

Achieved 317% growth in coverage of Social lives as against previous year. Covered
5,47,321 customers against a statutory requirement of 55,000

Total Assets under Management have grown by 28% to Rs 8,592.28 crores.

Sum Assured increased by 42 % to Rs 1,29,900 crores

Covered 37.4 lakh lives as on 31st March 2011 an increase of 40% over the previous
year

Operating Expense ratio has reduced to 19% as against 20% in previous year

25

CHAP 8. NEWS ABOUT KOTAK MAHINRA OLD MUTUAL LIFE INSURANCE

Kotak Mahindra shares gain on hike in FII limit
By Reuters | 21 Jan, 2015, 10.43AM IST
Shares of Kotak Mahindra Bank gains 1.4%. The bank on Tuesday approved raising of
foreign institutional investment limit to 42 per cent. Separately, the company reported a 37%
increase in December-quarter profit. The stock is close to its life high of Rs 1,444 rupees, hit
on January 15.
Old Mutual will consider raising India joint venture stake: CEO
By Reuters | 9 Jan, 2015, 10.31AM IST
LONDON: Anglo-South African financial services firm Old Mutual will discuss with partner
Kotak Mahindra upping its stake in their Indian joint insurance venture following a rule
change, Old Mutual's chief executive said on Wednesday. Old Mutual is also still looking to
expand in sub-Saharan Africa, Julian Roberts told Reuters in an interview, though prices were
rising for insurance businesses, as European and South African firms compete for a slice of
this underpenetrated market.
Old Mutual says pays $98 million for stake in African insurer UAP Holdings
By Reuters | 9 Jan, 2015, 05.06PM IST
NAIROBI: Anglo-South African financial services company Old Mutual said on Friday it had
bought a 23.3 percent stake in Kenyan insurer UAP Holdings for $97.6 million. The
acquisition is in line with Old Mutual's aim of expanding its business in Sub-Saharan Africa,
where it has spent 700 million rand ($60 million) of a 5 billion rand programme to acquire
businesses, focusing on Ghana, Kenya and Nigeria. It acquired the shares in UAP from
Kenyan investment firm Centum BSE 0.25 ..

26

CHAP 9. WHY KOTAK LIFE INSURANCE

Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing insurance
companies in India, trusted by over 4 million policyholders nationwide. The company is
differentiated because of its proven ability to deliver outstanding value to its customers
through high customer empathy and understanding, lifetime of exceptional service and suite
of products that best leverage the combined prowess of Protection and Long term Savings the two key elements that determine any winning life insurance product. The company also
has among the best claim ratios in the industry, a solemn testimony to its business practices.
Strengths

Financial Acumen - Holds a stable and diversified portfolio and has received some of
the highest ratings in financial strength from industrys independent rating agencies.

Disciplined fund management - Years of experience in asset management, and a

strong track record in managing funds - backed by the acclaimed expertise of Old
Mutual plc

Innovativeness - Innovator in providing pragmatic and need based life insurance

solutions, with consistent emphasis on leveraging the combined prowess of protection
and long term savings to the customers best advantage.

Unrelenting Customer Focus - A highly committed sales force, with customer

satisfaction as the key driving force

Transparency in Services - Daily declaration of fund performances, regular

performance benchmarking, well regulated asset management, and monthly newsletter
on market updates

VISION AND MISSION OF KOTAK LIFE INSURANCE

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An uncommon bond. Strengthened by a common vision

Apart from common beliefs, values and objectives Kotak mahindra believe in the vision of a
better tomorrow. It is this deep veneer of faith that has brought Kotak Mahindra Company
together and fortified their bond.
The global Indian financial services brand
customers of Kotak Mahindra will enjoy the benefits of dealing with a global Indian brand
that best understands their needs and delivers customised pragmatic solutions across multiple
platforms. Kotak Mahindra will be a world-class Indian financial services group. Kotaks
technology and best practices will be benchmarked along international lines while their
understanding of customers will be uniquely Indian. They will be more than a repository of
their customers' savings. Kotak Mahindra, the group, will be a single window to every
financial service in a customer's universe.
The most preferred employer in financial services
A culture of empowerment coupled with a spirit of enterprise, attracts bright minds with an
entrepreneurial streak to join Kotak Mahindra Company and stay with them. Working with a
home-grown, professionally-managed company, which has partnerships with international
leaders, gives Kotaks people a perspective that is universal as well as unique.
The most trusted financial services company
Kotak and their management will create an ethos of trust across all their constituents.
Adhering to high standards of compliance and corporate governance will be an integral part
of building trust.
Value creation
Value creation rather than size alone will be Kotak Mahindras business driver.

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