Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
A
PROJECT REPORT
ON GENERAL TRAININGAT
By
VILAS.B.BELADIYA
S.Y.B.B.A.
Roll No. 03
Supervising Teacher
PROF. PRAKASH TANK
SABARGAM
2
DECLARATION
Signature
3
CERTIFICATE OF THE FACULTY GUIDE
The project or any part of it has not been previously submitted for any degree.
I/c Principal
Dr. Yogesh N. Vansiya
Ambaba Commerce College & MIBM,
Sabargam
Date:
Place:
4
Acknowledgement
In preparation of this report by me, I feel great pleasure because it gives me extensive
practical knowledge in my career. I get idea about Indian Life Insurance Industry by this
project.
I express my deep sense of gratitude to My Company Guide Mr. Parth Desai (ABM),
Mr. Pinal Kumbhani (SM) for his valuable guidance during my project work. I also like to all
staff of Kotak Life Insurance who guide me in project work directly or indirectly to complete
my training project.
I am thankful to Mr. Rajesh Desai (Faculty Guide) for valuable inspiration and
guidance provided me throughout the course of this project. They have patient and critically
gone the subject matter.
I would like to take opportunity to express my gratitude towards all of them who have
contributed directly or indirectly in my project work.
Beladiya Vilas
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Se. no Particulars Page No.
1 What is Insurance
Introduction
IRDA
Company profile
Mission
Management
Organization chart
Build up of business
Awards
Problem Identification
3 Marketing
Promoters
Distribution
Sales strategy
Market share
4 Service
Customer satisfaction
Definition of agent
Function of agents
Responsibilities of agents
Ethical Behaviour
7
Employee welfare
Life insurance is a form of insurance that pays monetary proceeds upon the
death of the insured covered in the policy. Essentially, a life insurance policy is a contract
between the named insured and the insurance company wherein the insurance company
agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the
insured's premiums are current.
With a large population and the untapped market area of this population
insurance happens to be a very big opportunity in India. Today it stands as a business growing
at the rate of 15-20% annually. Together with banking services, it adds about 7 percent to the
countrys GDP. In spite of all this growth statistics of the penetration of the insurance in the
country is very poor. Nearly 80% of Indian populations are without life insurance cover and
the health insurance. This is an indicator that growth potential for the insurance sector is
immense in India.
It was due to this immense growth that the regulations were introduced in
the insurance sector and in continuation Malhotra Committee was constituted by the
government in 1993 to examine the various aspects of the industry. The key element of the
reform process was participation of overseas insurance companies with 26% capital. Creating
a more competitive financial system suitable for the requirements of the economy was the
main idea behind this reform.
Since then the insurance industry has gone through many changes. The
liberalization of the industry the insurance industry has never looked back and today stand as
one of the most competitive and exploring industry in India. The entry of the private players
and the increased use of the new distribution are in the limelight today. The use of new
distribution techniques and the IT tools has increased the scope of the industry in the longer
run.
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efforts of the owner. The asset is valuable to the owner, because he expects to get some
benefit from it. The benefit may be an income or in some other form.
Insurance companies also earn investment profits, because they have the
use of the premium money from the time they receive it until the time they need it to pay
claims. This money is called the float. When the investments of float are successful they may
earn large profits, even if the insurance company pays out in claims every penny received as
premiums. In fact, most insurance companies pay out more money than they receive in
premiums. The excess amount that they pay to policyholders is the cost of float. An insurance
company will profit if they invest the money at a greater return than their cost of float.
Marine insurance is the oldest type of insurance and one of the earliest
records of a marine policy relates to a Mediterranean voyage in 1347. This was followed by
life insurance some 300 years later. Fire insurance, however, did not begin until after the
Great fire of London in 1666. In India all the three insurance developed as under:
Fire Insurance
Marin insurance
Life Insurance
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Classification of insurance:
The insurance industry in India can broadly classify in two parts. They are.
1) Life insurance.
1) Life insurance:-
Life insurance can be defined as life insurance provides a sum of money if the
person who is insured dies while the policy is in effect.
In 1818 British introduced to India, with the establishment of the oriental life
insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay
mutual life assurance society was set up in 1870. The life insurance act, 1912 was the first
statuary measure to regulate the life insurance business in India. In 1983, the earlier
legislation was consolidated and amended by the insurance act, 1938, with comprehensive
provisions for detailed effective control over insurance. The union government had opened
the insurance sector for private participation in 1999, also allowing the private
Thus insurance is found to be very useful in the lives of the person both in short
term and long term.
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1) Principle of almost good faith:
A positive duty to voluntary disclose, accurately and fully, all facts, material to the
risk being proposed whether requested or not.
Relationships with the subject matter (a person) which is recognized in law and gives
legal right to insure that person.
The general insurance business was nationalized after the promulgation of General
Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance
business.
The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
The story of insurance is probably as old as the story of mankind. The same instinct
that prompts modern businessmen today to secure themselves against loss and disaster
existed in primitive men also. They too sought to avert the evil consequences of fire and
flood and loss of life and were willing to make some sort of sacrifice in order to achieve
security. Though the concept of insurance is largely a development of the recent past,
particularly after the industrial era past few centuries yet its beginnings date back almost
6000 years.
Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance
company on Indian Soil. All the insurance companies established during that period were
brought up with the purpose of looking after the needs of European community and these
companies were not insuring Indian natives. However, later with the efforts of eminent
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people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian
lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums
were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of
first Indian life insurance company in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through insurance to various
sectors of society. Bharat Insurance Company (1896) was also one of such companies
inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance
companies. The United India in Madras, National Indian and National Insurance in Calcutta
and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-
operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the
great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and
Swadeshi Life (later Bombay Life) were some of the companies established during the same
period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912,
the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life
Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated between
foreign and Indian companies on many accounts, putting the Indian companies at a
disadvantage.
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 Crore, it rose to 176
companies with total business-in-force as Rs.298 Crore in 1938. During the mushrooming of
insurance companies many financially unsound concerns were also floated which failed
miserably. The Insurance Act 1938 was the first legislation governing not only life insurance
but also non-life insurance to provide strict state control over insurance business. The demand
for nationalization of life insurance industry was made repeatedly in the past but it gathered
momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the
Legislative Assembly. However, it was much later on the 19th of January 1956 that life
insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian
companies and 75 provident were operating in India at the time of nationalization.
Nationalization was accomplished in two stages; initially the management of the companies
was taken over by means of an Ordinance, and later, the ownership too by means of a
comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the
19th of June 1956, and the Life Insurance Corporation of India was created on 1st September,
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1956, with the objective of spreading life insurance much more widely and in particular to the
rural areas with a view to reach all insurable persons in the country, providing them adequate
financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long-term contracts and
during the currency of the policy it requires a variety of services need was felt in the later
years to expand the operations and place a branch office at each district headquarter. Re-
organization of LIC took place and large numbers of new branch offices were opened. As a
result of re-organization servicing functions were transferred to the branches, and branches
were made accounting units. It worked wonders with the performance of the corporation. It
may be seen that from about 200.00 Crore of New Business in 1957 the corporation crossed
1000.00 Crore only in the year 1969-70, and it took another 10 years for LIC to cross
2000.00 Crore mark of new business. But with re-organization happening in the early
eighties, by 1985-86 LIC had already crossed 7000.00 Crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional
offices, 7 zonal offices and the corporate office. LICs Wide Area Network covers 100
divisional offices and connects all the branches through a Metro Area Network. LIC has tied
up with some Banks and Service providers to offer on-line premium collection facility in
selected cities. LICs ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at
Mumbai, Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many
other cities. With a vision of providing easy access to its policyholders, LIC has launched its
SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate anywhere servicing and
many other conveniences in the future.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives which
inspired our forefathers to bring insurance into existence in this country inspire us at LIC to
take this message of protection to light the lamps of security in as many homes as possible
and to help the people in providing security to their families.
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Some of the important milestones in the life insurance business in India
are
1850 Non life insurance debuts with triton insurance company. 1870 Bombay mutual
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 Crore from the Government of India.
The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance company established
in the year 1850 in Calcutta by the British. Some of the important milestones in the general
insurance business in India are:
1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all
code of conduct for ensuring fair conduct and sound business practices.
1968 The Insurance Act amended to regulate investments and set minimum solvency
general insurance business in India with effect from 1st January 1973. 107 insurers
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. GIC incorporated as a company.
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Insurance sector reforms
2000 IRDA starts giving licenses to private insurers: Kotak Life Insurance, ICICI
prudential and HDFC Standard Life insurance first private insurers to sell a policy
2001 Royal Sundaram Alliance first non life insurer to sell a policy 2002 Banks
allowed selling insurance plans.
The Insurance Act, 1938 had provided for setting up of the Controller
of Insurance to act as a strong and powerful supervisory and regulatory authority for
insurance. Post nationalization, the role of Controller of Insurance diminished considerably in
significance since the Government owned the insurance companies.
But the scenario changed with the private and foreign companies
foraying in to the insurance sector. This necessitated the need for a strong, independent and
autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would
have taken time, the then Government constituted through a Government resolution an
Interim Insurance Regulatory Authority pending the enactment of a comprehensive
legislation.
The Insurance Regulatory and Development Authority Act, 1999 is an
act to provide for the establishment of an Authority to protect the interests of holders of
insurance policies, to regulate, promote and ensure orderly growth of the insurance industry
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and for matters connected therewith or incidental thereto and further to amend the Insurance
Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business
(Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India
(for life insurance business) and General Insurance Corporation and its subsidiaries (for
general insurance business).
The act extends to the whole of India and will come into force on such date
as the Central Government may, by notification in the Official Gazette specify. Different
dates may be appointed for different provisions of this Act.
The Act has defined certain terms; some of the most important ones are as
follows:
Appointed day means the date on which the Authority is established under
the act. Authority means the established under this Act.
Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up by
the Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd January,
1996.
Words and expressions used and not defined in this Act but defined in the
Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or the General Insurance
Business (Nationalization) Act, 1972 shall have the meanings respectively assigned to them
in those Acts
A new definition of "Indian Insurance Company" has been inserted. "Indian
insurance company" means any insurer being a company
(a) Which is formed and registered under the Companies Act, 1956
(b) in which the aggregate holdings of equity shares by a foreign company, either by itself or
through its subsidiary companies or its nominees, do not exceed twenty-six percent, Paid up
capital in such Indian insurance company
(c) Whose sole purpose is to carry on life insurance business, general insurance business or
re-insurance business?
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Existing Insurance Companies/Corporation
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INTRODUCTION ABOUT KOTAK LIFE INSURANCE
COMPANY PROFILE
Stock broking businesses in the UK. Kotak Group was established in 1985.Kotak
Mahindra Bank is the parent company of the group. Kotak Group entered into the life
insurance business in 2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture
between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc. (24%) Old Mutual plc is a
world-Class international financial services company. It was established in South Africa
before 160 years.
OLD MUTUAL is the largest financial services business in South Africa, through its
life insurance, asset management, banking and general insurance operations. The company
serves 4 million life insurance policyholders and employs over 13 000 South Africans in its
local operations.
In the USA, OLD MUTUAL is one of the
top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset
management businesses. The companys US Life business recorded sales of $4 billion at the end of 2002.
The OLD MUTUAL Group has the ability to cater for a variety of consumer
segments and offers a comprehensive and innovative range of products for all income groups.
Mission
At Kotak Life Insurance, we aim to help customers take important financial decisions at
every stage in life by offering them a wide range of innovative life insurance products, to
make them financially independent.
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Vision & values
Our Vision:-
Kotak Life Insurance has a deep rooted commitment to improve the quality of life of
its customers, employees and stakeholders. We aim at improving the long term value in our
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relationship by continuous innovation and improvements. We do this by our three-prong
effort which strives to make Kotak Life Insurance a corporate with values.
Our values:-
Every member of the Kotak Group team is committed to 5 core values: Integrity,
Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we
do, and have become the keystones of our success.
MANAGEMENT
We at Kotak Life Insurance work as a team and have a flat management structure.
Our top management has many years of experience which has helped guide the company into
a position of leadership.
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24
25
26
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KOTAK MAHINDRA OLD MUTAL PLC KOTAK LIFE
BANK INSURANCE
( 74% ) ( 26% ) ( 100% )
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Old Mutual Plc:-
Old Mutual was established more than 150 years ago. Old mutual plc, Is a
world-class international financial service company. It owns the largest companies in the
following areas in South Africa.
They are:
1. Life Insurance Company
2. Asset Management Company
3. Bank
4. Non-life insurance company
It has been developed into an International financial services group whose activities
are focused on asset gathering and asset management. The Old Mutual Group offers a diverse
range of financial services in three principal geographies: South Africa, the United States and
the United Kingdom. The company is listed on the London Stock Exchange with a market
capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. In the
2003 rankings of the World's 500 largest corporations by Fortune magazine, Old Mutual
climbed 87 places to position number 366 and was also listed as the 14th largest insurance
company in the world.
Old Mutual is the largest financial services business in South Africa, through its life
insurance, asset management, banking and general insurance operations. The company serves
4 million life insurance policyholders and employs over 13 000 South Africans in its local
operations.
In the USA, Old Mutual is one of the top ten fixed annuity businesses
offering an array of specialist asset management skills through its 23 asset management
businesses. The companys US Life business recorded sales of $4 billion at the end of 2002.
Operations in the United Kingdom are focused on wealth management, through
Gerrard as one of the leading private client stock broking businesses in the UK.
The Old Mutual Group has the ability to cater for a variety of consumer
segments and offers a comprehensive and innovative range of products for all income groups.
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A 26%-74% Joint venture between Old Mutual plc and KotaK Mahindra Bank Ltd.
44 branches in 31 cities.
2001-02: 7Crores
2002-03: 35Crores
2003-04: 125Crores
2005-06: 373Crores
2006-07: 396Crores
2007-08: 614Croeres
AWARDS
2003
2004
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Best Equity House in India by Euro Money
2005
2006
Ranked no.1 in six categories in the Annual Euro money Private Banking Survey Poll
for 2006 for India
Ranked #1 in the league table for Book runner/Lead Manager in public equity offerings in
terms of the value of transaction completed during fiscal 2006 according to Prime
Database
Topped the best Mutual Fund House in the NDTV Business Leadership Awards2006
Best Bond Fund Group Over Three Years by Lipper Fund Awards India
Ranked the best debt fund over 5 years by lipper for the Kotak Bond Regular Plan
Ranked ICRA- MFRI and was the recipient of the Silver Awards by ICRA for the Kotak
Bond Regular Plan
2007
Most Popular Inventor Relation Website for the Asia/Pacific Region Conducted by IR
Global Rankings
Emerged winner in 16 categories in the Euro money Private Banking Poll2007, including
the Best local Private Bank.
Problem Identification:
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The basic step of any research is to find out the problem of the company, the problem
may be inside in the company or outside of the company. Well Defined problem is half
solved. The researcher has defined the problem of the organization which is converted in to
the study topic.
To study the organizational activities of all the department with the help of
secondary as well as primary data collection method
Objective:
The main of the present study of is accomplish the following objective.
Conduct market survey on a sample selected from the entire population and
derived opinion on that research.
According the market survey come know about how much potential of
insurance market in our city.
And base on analysis of the result thus obtained make a report on that
research.
Training aims at recruiting maximum number of Life Advisors and to Sell the
maximum policies for the company and bring the business for the company
which ever is going at the particular point of time.
As the Kotak Life Insurance well reputed company in India its great chance
for me to observed different products launch by other competitor companies
like ICICI prudential, Bajaj alliance ,LIC, Max New York life etc. In all, it is
to understand the overall working of the Life insurance sector.
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Limitation:
Some of the difficulties and limitations faced by me during my training are as follows:
Lack of awareness among the people This is the biggest limitation found in this
sector. Most of the people are not aware about the importance and the necessity of the
insurance in their life. They are not aware how useful life insurance can be for their
family members if something happens to them.
Perception of the people towards Insurance sector People still consider insurance
just as a Tax saving device. So today also there is always a rush to buy an Insurance
Policy only at the end of the financial year like January, February and March making
the other 9 months dry for this business.
Insurance does not give good returns Still today people think that Insurance does
not give good returns. They are not aware of the modern Unit Linked Insurance Plans
which are offered by most of the Private sector players. They are still under the
perception that if they take Insurance they will get only 5-6% returns which is not true
nowadays. Nowadays most of the modern Unit Linked Insurance Plans gives returns
which are many times more than that of bank Fixed deposits, National saving
certificate, Post office deposits and Public provident fund.
People still today are not aware about the earning opportunity that the Insurance
sector gives. After the privatization of the insurance sector many private giants have
entered the insurance sector. These private companies in order to beat the competition
and to increase their Insurance Advisors to increase their reach to the customers are
giving very high commission rates but people are not aware of that.
Increased competition Today the competition in the Insurance sector has became
very stiff. Currently there are 14 Life Insurance companies working in India including
the LIC (life insurance Corporation of India). Today each and every company is trying
to increase their Insurance Advisors so that they can increase their reach in the
market. This situation has created a scenario in which to recruit Life insurance
Advisors and to sell life Insurance Policy has became very very difficult.
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RESEARCH METODOLOGY
Marketing research specifies the information required to address these issues, designs, and
the method for collecting information, manage and implemented the data collection process,
analyses the results and communicate the findings and their implication.
I have prepared our project as descriptive type, as the objective of the study demands
the answers of the question related to find the potentiality of life insurance in Surat: How
much potential is there in Surat?
There are two types of data collection method use in my project report.
Primary data
Secondary data.
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For my project, I decided on primary data collection method for observing working of
company and approaching customers directly in the field, tele-calling, cold calling,
campaigning and through references to know their interest in business with company in my
project and also make questionnaire for creating database of business class people is Surat
city for company.
I decided on Secondary data collection method was used by referring to various
websites, books, magazines, journals and daily newspapers for collecting information
regarding project under study.
DATA COLLECTION
.
In our live project, we decided primary data collection method because our study
nature does not permit to apply observational method. In survey approach we had selected a
questionnaire method for taking a customer view because it is feasible from the point of view
of our subject & survey purpose. We conducted 200 sample of survey in our project.
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Marketing practice tends to be seen as a creative industry, which includes
advertising, distribution and selling. It is also concerned with anticipating the customers'
future needs and wants, which are often discovered through market research. Seen from a
systems point of view, sales process engineering views marketing as a set of processes that
are interconnected and interdependent with other functions, whose methods can be improved
using a variety of relatively new approaches
Promoters:
Kotak Mahindra Bank Limited (KMBL) is the holding company and the
flagship of the Kotak Mahindra Group. It was actually incorporated as Kotak Capital
Management Finance Limited on November 2, 1985 and obtained its Certificate of
Commencement of Business on February 11, 1986.
It commenced operations with Bill Discounting and soon started other fund-
based activities like corporate leasing & hire purchase, automobile finance and money market
operations. Subsequently, it also entered the funds syndication and the Investment banking
business.
37
Old Mutual Plc
Distribution
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Kotak life has one of the largest distribution networks amongst private life
insurers in India. It has a strong presence across India with over 2000 branches (including
1,095 micro-offices) and an advisor base of over 261,000 (as on August 31, 2008).
The company has 24 bank assurance partners having tie-ups with ICICI
Bank, Bank of India, South Indian Bank, Shamrao Vitthal Co-Op Bank, Jalgaon Peoples Co-
op Bank, Ernakulam District Co-op Bank, Idukki District Co-op Bank, Ratnagiri Sindhudurg
Gramin Bank, Solapur Gramin Bank, Wainganga Kshetriya Gramin Bank, Aryawart Gramin
Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank, Baitarani Gramya Bank,
Ratnagiri District Central Co-op Bank, Seva Vikas Co-op Bank, Sangli Urban Co-Operative
Bank, Baramati Co-operative Bank, Ballia Kshetriya Co-Operative Bank, The Haryana State
Co-Operative Bank, Renuka Nagrik Sahakari Bank, Amanath Co-Operative Bank, Arvind
Sahakari Bank, Bhandara Urban Co Operative Bank.
SALES DISTRIBUTION:
Tied Agency:
Kotak life was a pioneer in offering life insurance solutions through banks and
alliances. Within a short span of two years, and with nearly a large number of partners, B & A
has emerged as a vital component of the companys sales and distribution strategy,
contributing to approximately one third of companys total business. The business philosophy
at B&A is to leverage distribution synergies with our partners and add value to its customers
as well as the partners. Flexibility, adaptation and experimenting with new ideas are the
hallmarks of this channel.
SALES STRETAGY
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Kotak life insurance has a great strategy for sales department. Company has a three
type of strategy for sales and that are as follow:
COMPANY STRETEGY:
Now company applies the project Turning Point and in this project to decide the selection
criteria for LIFE ADVISOR and life advisor is the basic requirement for sale the policy. The
selection criteria for advisor are:
Like:-
Agent age > 30 for male LA, and >25 for female
Minimum graduate
EXTERNAL STRETEGY:
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Kotak life insurance external strategy is To make limited branches but, to perform
INTERNAL STRETEGY:
Market Share:-
Industry growth rate at 36% (2004-05) with premium income From new Business.
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Company Indian Foreign Market share
Promoter/ Insurance based on
Partner premium
Birla sun life Aditya Birla group Sun Life, Canada 1.84
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Customer Satisfaction
Customer satisfaction refers to how satisfied customers are with the products or services they
receive from a particular agency. The level of satisfaction is determined not only by the
quality and type of customer experience but also by the customers expectations.
An organization with a strong customer service culture places the customer at the centre of
service design, planning and service delivery. Customer centric organizations will:
Why is it important?
There are a number of reasons why customer satisfaction is important in Insurance Sector:
Meeting the needs of the customer is the underlying rationale for the existence of
community service organizations. Customers have a right to quality services that deliver
outcomes.
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Organizations that strive beyond minimum standards and exceed the expectations of their
The process for measuring customer satisfaction and obtaining feedback on organizational
performance are valuable tools for quality and continuous service improvement.
Kotak Life Insurance offers a range of innovative, customer-centric products that meet the
needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to
create a customized solution for each policyholder.
Savings &
Protection
Investments
Helping you
Manage
to grow and
today for a
protect your
better
wealth.
tomorrow.
45
Retirement Child
The road to Plan a good
retirement, future for
Make it easy your child.
Protection Plans:
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Kotak Term/Preferred Term Plan:
The Kotak Term/Preferred Term Plan is a pure risk cover plan that provides you with a
high level of protection at nominal costs.
Kotak Eternal Life Plans are participating whole life plans that provide enhanced
protection till the golden age of 99.
Youve lived life on your own terms; always done what youve believed in. You are used
to having the luxury of choice and the power to control.
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Kotak Flexi Plan:
Kotak flexi plan offers you an ideal market-linked investment plan that helps you create
your own financial future by offering you the flexibility and control over your money.
Kotak Easy Growth plan, a single premium investment plan that generates value for you
for whole life as well as provides protection to your family in case of unforeseen events.
The Kotak Capital Multiplier Plan is the only plan of its kind that allows you to enjoy
returns even beyond maturity.
This plan offers the key benefit of cash lump sums at periodic intervals of five years
ensuring that you are able to meet any of your financial obligations.
Kotak Endowment Plan is a participating endowment plan that provides you an avenue
for long term regular investments to accumulate a lump sum on maturity.
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Kotak Secure Retirement Plan:
An ideal retirement solution is one that gives you complete flexibility and peace of mind,
not only while you save for your retirement but also after you retire.
Kotak Long Life Secure Plus is a unit-linked plan that ensures your investment gives
maximum protection to secure your family's future and their financial independence
Kotak Long Life Wealth Plus is an intelligent investment plan that helps you builds your
future net worth with power-packed features that actively monitor and manage your
investment growth
The Kotak Retirement Income Plan is a savings plan designed to meet your post-
retirement needs. It is a plan that gives you "Jeene ki azaadi".
Child Plans:
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Kotak Head start Child Plans:
The head start child plans are specially tailored, cost effective plans that aim to give your
children the financial means to pursue his or her dreams
The Kotak Child Advantage Plan is an investment plan designed to meet your child's
future financial needs.
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Stages in Policy Issuance
1) Proposal
A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the
application form is received by COPS, but it is pending for issuance due to further
clarifications required from the customer.
2) Login
A proposal which is complete i.e., duly filled with all necessary documents attached to it &
accepted by the Branch ops, is called a Login
3) Reject
An Application gets rejected at the Branch Ops level due to necessary details not filled in the
form or necessary documents not submitted is a Reject. It is then sent back to the Advisor for
completion.
4) Issuance
5) Decline Status
When a customer refuses to take a policy post login but before Issuance is called a Decline
6) Cancellation
When the cheque given by the customer bounces, it amounts to cancellation of the policy.
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7) Lapse
A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.
8) Free look
Post issuance of the policy, the policyholder has the option to turn down the policy within 15
days from the date of issuance. This period of 15 days is called Free look Period.
9) Surrender
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DEFINITION OF AN AGENT
According to section 182 of the Indian contracts act, an agent is a person employed to
do any act for another or to represent another in dealing with a third person. In the insurance
industry, the term agene is ordinarily applied to a person engaged by the insurer to procure
new business. The insurance act defines an insurance agent as one who is licensed under
section 42 of that act and is paid by way of commission or otherwise, in consideration of his
soliciting or procuring insurance business, including business relating to the continuance ,
renewal or revival of policies of insurance. He is, for all purposes, an authorized salesman for
insurance and needs a licence.
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Procedure for Becoming An Agent
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He shall have completed, at least, fifty hours practical training from an approved institution.
Provided that such applicant shall have completed from an approved institution, at least,
seventy hours practical training in life and general insurance business, where such applicant
is seeking license for the first time to act as a composite insurance agent.
Provided that such applicant before seeking renewal of licence to act as a composite
insurance agent shall have completed from an approved institution, at least, fifty hours
practical training in life and general insurance Business.
(3) Examination.
1) The fees payable to the authority for issue or renewal of licence to act as insurance agent
or a composite insurance agent shall be rupees two hundred and fifty.
2) The additional fees payable to the authority, under the circumstances mentioned in sub-
section (3) of section 42 of the act, shall be rupees one hundred.
1) Every person holding a licence, shall adhere to the code of conduct specified below:
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a. Identify himself and the insurance company of whom he is an insurance agent;
c. Disseminate the requisite information in respect of insurance products offered for sale
by his insurer and take into account the needs of the prospect while recommending a
specific insurance plan;
d. Disclose the scales of commission in respect of the insurance product offered for sale;
e. Indicate the premium to be charged by the insurer for the insurance product offered
for sale;
f. Inform promptly the prospect about the acceptance or rejection of the proposal by the
insurer;
b. Induce the prospect to omit any material information in the proposal form;
c. Induce the prospect to submit wrong information in the proposal form or document
submitted to the insurer for acceptance of the proposal;
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f. Force a policyholder to terminate the existing policy and to effect a new proposal
from him within three years from the date of such termination;
g. Apply for fresh licence to act as an insurance agent, if his licence was earlier
cancelled by the designated person, and a period of five years has not elapsed from
the date of such cancellation;
h. Every insurance agent shall, with a view to conserve the insurance business already
procured through him, make every attempt to ensure remittance of the premiums by
the policyholders within the stipulated time, by giving notice to the policyholder
orally and in writing;
The authority may issue a duplicate licence replace a licence lost, destroyed, or
mutilated on payment a fee of rupees fifty.
From the date of coming into force of the insurance regulatory and
development authority (licensing of corporation agents) regulations 2002, the insurance
regulatory and development authority (licensing of insurance agents) regulations 2000 or any
part thereof applying to corporate agents shall cease to have any effect, except as respects
things done or omitted to be done there under.
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Methods of Remunerating Agents
2. The insurance act provides, in section 44, for payment of commission on renewal
premium even after termination of the agency. The commission will be limited to a rate
not exceeding 4%. To be eligible for this, the agent should have been an agent with that
insurer for at least (1) five years and policies for at least Rs 50ooo are in force one year
before termination of agency or (2) 10 years. This commission will be payable to the heirs
of the agent after the agents death. This is a unique facility which few other professions
enjoy.
FUNCTION OF AN AGENT
1. The agents main function is to solicit and procure life insurance business for the insurer,
which has appointed him for that purpose. At the same time, he is trusted by the prospect
to advice him suitably, keeping his circumstances and needs in mind. He is thus, in the
unique roll of a person trusted by both parties to the transaction. His would require him to
Understand the prospects needs and persuade him to buy a plan of life insurance that
Complete the formalities ( paper work, medical examination ) necessary to get the policy
expeditiously
Keep in touch to ensure that changing circumstances are reflected in the arrangement
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Facilities quick settlement of claims
2. The regulation framed by the IRDA lays down a code of conduct which incorporates
some of these concepts. The code says interalia that the agent shall
Recommend a suitable plan taking into account the needs of the prospect
Explain the nature and importance of the information required in the proposal form
Inform the insurer about any material facts, including habits, that could adversely affect
RESPONSIBILITIES OF AN AGENT:
1. An agent, individual or corporate, is the main component of the distribution channel for
the life insurance business. He would be required to solicit and procure new life and
insurance business, in a manner that is consistent with the interests of the policyholders of
the insurance company. For this purpose, for this purpose, he would have to do the
following.
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Contact prospects for life insurance, study their needs and persuade them to buy.
Complete all related formalities, including filling up proposal forms, collecting premium,
arranging medical examination, collecting proofs (of age or income), reports and other
information required by the underwriter.
2. After having sold a new insurance policy, the agent has to ensure that the policy
continues, without a lapse, till it becomes a claim. The conservation of the policy is in the
interests of all the three persons concerned, the insurer, the policyholder and the agent.
For this purpose, he has to
Keep in touch with the policyholder to make sure that renewal premiums are paid in time.
Assist in settlement of the claim, by helping the claimants to complete the necessary
3. In order that he may perform all these tasks well, the agent has to be familiar with
The benefits under the various plans of insurance offered by his insurer.
The office procedures for various matters including the forms and documents. The main
documents have been listed out in an earlier chapter. The forms and procedures will vary
between one insurer and another.
Ethical Behavior
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1. Some characteristics of good ethical behaviors are
Placing the best interests of the client above ones own direct or indirect benefits
Holding in the strictest confidence and considering as privileged, all business and
Making full and adequate disclosure of all facts to enable clients make informed decisions
Having to choose between two plans, one giving much less commission than the other
Temptation to recommend discontinuance of an existing policy and taking out a new one
Becoming aware of circumstances that, if known to the insurer, could adversely affect the
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EMPLOYEE WELFARE:
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ORACLES ONLINE SYSTEM FOR EMPLOYEES.
Kotak life insurance provides the best service compare to the others company. Kotak
life insurance provides the services like:
Loan
Mediclaim
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Taxation
Most important thing is that company provide loan employee when they
are in trouble. They give a loan of basic amount multiply with 6 times of basic. And loan
amount fulfill all payment in 20 month at the 8% rate p.a.
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The field of finance refers to the concepts of time, money and risk and how they are
interrelated. Banks are the main facilitators of funding through the provision of credit,
although private equity, mutual funds, hedge funds, and other organizations have become
important. Financial assets, known as investments, are financially managed with careful
attention to financial risk management to control financial risk. Financial instruments allow
many forms of securitized assets to be traded on securities exchanges such as stock
exchanges, including debt such as bonds as well as equity in publicly-traded corporations.
Corporate finance
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Identify relevant objectives and constraints: institution or individual goals, time
horizon, risk aversion and tax considerations;
Identify the appropriate strategy: active v. passive hedging strategy
The Accounts of the Authority for the financial year 2007-08 have been audited
by the Comptroller and Auditor General of India (C&AG). C&AG, in their draft separate
audit report, has advised revision in the accounts due to some wrong classifications. The
same has been carried out. A copy of revised accounts for the year 2007-08 is placed at
Annexure. X. The revised accounts are under submission to C&AG and final report on the
same is awaited.
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Form A-RA
Revenue Account for the year ended March 31, 2008
Policyholders' Account (Technical Account)
(Amounts in thousands of Indian Rupees)
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of life policies,
(a) Gross 1,208,134 1,246,757
(b) Amount ceded in reinsurance
(c) Amount accepted in reinsurance
Provision for Linked Liabilities 5,080,268 4,221,738
Total (C) 8,020,114 5,888,160
Surplus/(Deficit) (D) = (A) - (B) - (C) 650,098 26,513
Appropriations
Transfer to Shareholders' Account 14,323
Transfer to Other Reserve
Balance being Funds for Future Appropriations 114,584 14,662
SURPLUS/(DEFICIT) AFTER 521,191 11,851
APPROPRIATION
SURPLUS/(DEFICIT) BROUGHT (484,844) (496,695)
FORWARD
SURPLUS/(DEFICIT) CARRIED FORWARD
TO
BALANCE SHEET 36,347 (484,844)
(a) Interim Bonuses Paid
b) Allocation of Bonus to Policyholders 95,117 54,328
(c) Surplus/(Deficit) shown in the Revenue 521,191 11,851
Account
(d) Total Surplus: [(a) + (b) + (c)] 616,308 66,179
Form A-PL
Profit and Account for the year ended March 31, 2007
Shareholders' Account (Non-Technical Account)
(Amounts in thousands of Indian Rupees)
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b) Profit on sale/redemption of investments 16,027 2,484
c) (Loss on sale/redemption of investments) -40,773 -3,874
Other Income (including fund management
fees)
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Form A-BS
Balance Sheet as at March 31, 2008
Sources of Funds
Shareholders Funds:
Share Capital 3,303,466 2,443,701
Reserves and Surplus 520,363 520,363
Credit/[Debit] Fair Value Change Account
Sub-Total 3,823,829 2,964,064
Borrowings
Policyholders Funds:
Credit/[Debit] Fair Value Change Account 521 150,463
Policy Liabilities
Participating 3,097,235 2,122,799
Non-participating 501,753 404,444
Annuities Participating 251,545 194,565
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Annuities Unit-Linked Non-Participating 236 255
Unit-Linked Non-Participating 172,419 92,992
Insurance Reserves
Participating
Non-Participating -96,870
Annuities Participating 36,347 11,851
Annuities, Unit-Linked Non-Participating 747
Unit-Linked Non-Participating (400,572)
Linked Liabilities 12,025,83 6,767,957
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Fair Value Change 619,615 797,222
Total Provision for Linked Liabilities 12,645,447 7,565,179
Application of Funds
Investments
Shareholders 853,836 656,985
Policyholders 4,026,888 2,975,227
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Miscellaneous Expenditure
(To the extent not written off or adjusted)
Debit Balance in Profit and Loss Account
(Shareholders Account) 2,668,077 1,554,127
INTERPRETATION:
We can easily understand to show the above balance sheet in year 2007 companys
total balance 13,025,588, while in year 2008 companys total balance increase and become it
20,659,587. It means companys balance Increase is 7,633,999.
Working capital refers to that part of the firms capital which is required for
financing short-term or current assets, such as, cash, marketable securities, debtors,
inventories, bills receivable etc. the assets of this type are relatively temporary in nature.
Unfortunately, there is much disagreement among financiers, accountant, economics and
businessmen as to the exact meaning of the team working capital
However, working capital is also known as circulating capital or short term
capital. Working capital can be derived by the deference between current assets and current
liabilities of the firm.
GROSS WORKING CAPITAL= TOTAL CURRENT ASSETS
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Particular 2008 2007
Current Assets
Cash and Bank Balances 1,248,644 570,984
Advances and Other Assets 444,163 343,225
Sub-Total (A) 1,692,807 914,209
Current Liabilities 1,551,719 818,943
Provisions 70,969 26,729
Sub-Total (B) 1,622,688 845,672
RATIO ANALYSIS:
Ratio analysis isn't just comparing different numbers from the balance sheet,
income statement, and cash flow statement. It's comparing the number against previous years,
other companies, the industry, or even the economy in general. Ratios look at the
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relationships between individual values and relate them to how a company has performed in
the past, and might perform in the future.
Ratio analysis is the method or process by which the relationship of items or group
of items in the financial statement are computed, determined and presented.
CURRENT RATIO:
Meaning:
This ratio compares the current assets with the current liabilities. It is also known as working
capital ratio or solvency ratio. It is expressed in the form of pure ratio.
E.g. 2:1
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For year 2007
INTERPRETATION
The current ratio in the year 2008 has decrease the current ratio as compare
to the year 2008 in steadily it indicates good liquidity of current assets.
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Profit before tax 1,096,357 435,951
Less
= 999,984 / 96,373
= 10.38%
= 370,307 / 65,644
=5.64%
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INTERPRETATION:
The current ratio in the year 2008 has decrease the current ratio as compare the year
2007 it mean that company has done less investment in interest coverage ratio or turnover
ratio.
PROPRIETORY RATIO
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Proprietary ratio = Proprietary funds / Total assets
= 1,888,232 / 1,935,597
= 0.98%
INTERPRETATION:
The current ratio in the year 2008 has decrease the current ratio as compare the year
2007. It means that company has done loss situation in proprietary ratio.
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STRENGTHS:
I. Financial Acumen - Holds a stable and diversified portfolio and has received some of
the highest ratings in financial strength from industrys independent rating agencies.
IV. Unrelenting Customer Focus - A highly committed sales force, with customer
satisfaction as the key driving force - a major differentiator
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WEAKNESSES:
Lack of credibility among the people because Kotak being a private player.
Products:
The policy doesnt have the surrender option before third year.
Plan does not offer any guarantee or assured return.
Product profile is not very comprehensive.
Mortality, management and administrative charges are sky scrapping as
compared to its competitors.
OPPORTUNITIES:
The whole private sector is opened to be trapped even though the competition is fierce
from government owned insurance companies.
Its a volume business that is even if the company has few good corporate the
turnover cease to increase by manifold.
Products:
Preserver funds look good due to comfortable liquidity in the economy and
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THREATS
The government players will become aggressive thus growth is going to be tough.
We expect the industry to rationalize in future that is mergers and acquisitions will
happen, which will impact the industry and Kotak life fortunes.
Products:
the plan.
The sum invested in the funds is subject to market risks and there can be no
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CONCLUSION
After overhauling the all situation that boosted a number of Pvt. Companies associated with
multinational in the Insurance Sector to give befitting competition to the established
behemoth Kotak in private sector, we come at the conclusion that
There are very tough competitions among the private insurance companies on the level of
The entry of more Pvt. Players in the Insurance Sector has expanded the product segment
to meet the different level of the requirement of the customers. It has brought about
greater choice to the customers.
Kotak has vast market and very firm grip on its traditional customers and monopoly of
IRDA is also playing very comprehensive role by regulating norms mandating to private
players in this sector, that increases the confidence level of the customers to the private
players.
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Suggestions
Web sites
www.kotak.com
www.licindia.com
www.irda.org
www.lifeinsure.com
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