Kotak life insurance

LIFE INSURANCE - KOTAK MAHINDRA
CONTENTS
Sr.No. PARTICULARS Page
No.
1. SUMMARY 1.
2. INTRODUCTION 2.
3. LIFE INSURANCE 5.
4. KOTAK MAHINDRA 12.
5. PRODUCT 13.
6. Q3 RESULT 35.
7. COMPARISON WITH SBI’S PRODUCT 36.
8. SURVEY FORM 39.
9. SURVEY RESULT 40.
10. SURVEY REPORT 43.
11. FAQ’S 44.
12. ARTICLES 48.
13. CONCLUSION 52.
14. BIBLIOGRAPHY 53.
T.Y.B.B.I. SEMESTER VI 1

S
UMMARY
Insurance is a tool or device through which some risks can be reduced,
eliminated or transferred. Every individual and business face some uncertainties
(i.e. possibility of encountering loss due to certain events) and these can be to a
certain extent removed through insurance.
Insurance is thus, a tool by which the loss likely to be caused by an
uncertain event is spread amongst a number of people who face similar risks.
Insurance is a cooperative way of bearing risks. Insurance provides certainty
(i.e. protection by way of compensation) for some uncertainty (i.e. possibility of
loss due to an unforeseen event.)
This project titled “KOTAK MAHINDRA - LIFE INSURANCE” it is an
attempt to bring out the overview features and product offered by the kotak
mahindra. This project tries to give the brief history, mission and objectives of
the company and its product.
This project would discuss the key features, benefits and how the plan works
which can suits to the policy holders. The project also discuss the financial
position of kotak mahindra its last year profits, it will also try to bring the
difference between SBI’s life insurance.
In this project I have tried to bring out some of the important product offered by
the kotak mahindra.

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

MEANI
NG
In life and in business, there are various events which may cause financial
loss to an individual business. Some of the events also called as “risks” can
be avoided or prevented while some of them can be reduced or transferred to
another person. Insurance is a tool or device through which some risks can
be reduced, eliminated or transferred. Every individual and business face
some uncertainties (i.e. possibility of encountering loss due to certain
events) and these can be to a certain extent removed through insurance.
Insurance is thus, a tool by which the loss likely to be caused by an uncertain
event is spread amongst a number of people who face similar risks.
Insurance is a cooperative way of bearing risks. Insurance provides certainty
(i.e. protection by way of compensation) for some uncertainty (i.e.
possibility of loss due to an unforeseen event.)
DEFINITION
Insurance is “a contract between two parties, whereby one party, (called
‘insurer’) undertakes, in exchange for a fixed sum (called ‘premium’) to pay the
other party (called ‘insured’) fixed amount of money (called compensation) on
the happening of a certain event.
The insurer i.e. the insurance company undertakes to indemnify (make
good the loss) to the insured for loss or damage arising as a result of the
particular risks.

Basically, there are two types of insurance i.e. life & non-life insurance.
Life insurance covers the risks to an individual’s life while non-life insurance
covers risks to business and includes fire insurance, marine insurance, liability
insurance etc.
PURPOSE & NEED OF INSURANCE
Assets are insured, because they are likely to be destroyed, through accidental
occurrences. Such possible occurrences are called perils. Fire, floods,
breakdowns, lightning, earthquakes, etc, are perils. If such perils can cause
damage to the asset, we say that the asset is exposed to that risk. Perils are the
events. Risks are the consequential losses or damages. The risk to a owner of a
building, because of the peril of an earthquake, may be a few lakhs or a few
crores of rupees, depending on the cost of the building and the contents in it.
The risk only means that there is a possibility of loss or damage. The damage
may or may not happen. Insurance is done against the contingency that it may
happen. There has to be an uncertainty about the risk. Insurance is relevant only
if there are uncertainties. If there is no uncertainty about the occurrence of an
event, it cannot be insured against. In the case of a human being, death is
certain, but the time of death is uncertain. In the case of a person who is

terminally ill, the time of death is not uncertain, though not exactly known. He
cannot be insured.
Insurance does not protect the asset. It does not prevent its loss due to the peril.
The peril cannot be avoided through insurance. The peril can sometimes be
avoided, through better safety and damages control management. Insurance
only tries to reduce the impact of the risk on the owner of the asset and those
who depend on that asset. It only compensates the losses – and that too, not
fully.
Only economic consequences can be insured. If the loss is not financial,
insurance may not be possible. Examples of non-economic losses are love and
affection of parents, leadership of managers, sentimental attachments to family
heirlooms, innovative and creative abilities, etc.
LIFE INSURANCE
MEANING

Life Insurance Is a Contract whereby the insurer in consideration of a premium
undertakes to pay a certain sum of money, either on the death of the insured or
on the expiry of a certain period, whichever is earlier
In life insurance; risk to human life is covered .this risk may be in the form of
accident or death. A person may or may not meet with an accident. Death is
certain to happen but when it will happen is uncertain. Thus, due to accident or
death of a person his dependants will suffer financially. Life Insurance provides
certainty against these uncertainties
Hence, in life insurance actually an ‘assurance’ is given by the insurance
company that it will pay a certain sum of money either on death of the assured
or maturity, whichever occurs earlier
Under whole-life policy, money is payable at the death of assured (policy-
holder) and under endowment policy, money is payable on the assureds death or
on the maturity of the policy, whichever occurs earlier.

FEA
TURES OF LIFE INSURANCE
1. Almost all life policies are long term. Most of them are for a term of 15
years or more.
2. Sum of compensation is fixed. Unlike general insurance, compensation
does not depend on damage caused to the subject matter. Compensation,
which is an assured, has to be paid either on death of assured or after
maturity, whichever is earlier.
3. At times, amount of policy may be collected by the survivors of the
assured in case of his death.
4. Life insurance policy may be surrendered by the assured before its
maturity.
5. A person can take any number of life insurance policies and each and
every policy is liable to pay compensation, provided the other conditions
are met.
6. Nomination: in life insurance, the assured can nominate another person
who is entitled to receive the sum assured on his death.

7. Assignment: a life insurance policy can be assigned to another person
(the assignee). The assignee then gets the same rights as the policyholder.
ESSENTIALS OF A VALID LIFE INSURANCE CONTRACT
1) General elements of a valid contract: Like valid offer acceptance of an
offer, competent parties, consideration, legal purpose etc. must be
fulfilled.
2) Special element of a valid contract of insurance:
(a) Utmost good faith: both the parties should disclose all
Material facts.

(b) Insurable interest: the person taking out a policy on his own life
has insurance interest but in case he wants to take a policy on
another person’s life, then he should have insurable interest in the
other’s life. Moreover, insurable interest must exist only at the
time of taking out the policy and need not exist at the
Time of maturity of the policy.
3) Warranties: Are ascertaining specific conditions added to the contract.
These warranties are over and above the basic terms of the policy. They
must be mutually agreed upon by both the parties. Any breach of a
warranty by either party can nullify the contract. Warranties may be
express (stated openly) or implied (hidden).
4) Terms of policy: Are the specific terms and conditions. Viz. the period of
time covered, the nature of risk, premium amount, policies amount etc.
which is agreed upon by both the parties. All these terms must be strictly
observed by both the parties. Both the parties are bound by these terms.
Any breach of any one of the given conditions by either party can render
the insurance contract (null and void) i.e. not enforceable in the court of
law.

ROLES OF LIFE INSURANCE
Risks and uncertainties are part of life's great adventure -- accident, illness,
theft, natural disaster - they're all built into the working of the Universe, waiting
to happen.
Role 1: Life insurance as "Investment"
Insurance is an attractive option for investment. While most people recognize
the risk hedging and tax saving potential of insurance, many are not aware of its
advantages as an investment option as well. Insurance products yield more
compared to regular investment options, and this is besides the added incentives
(read bonuses) offered by insurers.
You cannot compare an insurance product with other investment schemes for
the simple reason that it offers financial protection from risks, something that is
missing in non-insurance products.
In fact, the premium you pay for an insurance policy is an investment against
risk. Thus, before comparing with other schemes, you must accept that a part of
the total amount invested in life insurance goes towards providing for the risk
cover, while the rest is used for savings.
In life insurance, unlike non-life products, you get maturity benefits on survival
at the end of the term. In other words, if you take a life insurance policy for 20
years and survive the term, the amount invested as premium in the policy will
come back to you with added returns. In the unfortunate event of death within
the tenure of the policy, the family of the deceased will receive the sum assured.

Now, let us compare insurance as an investment options. If you invest Rs
10,000 in PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a
year. But in this case, the access to your funds will be limited. One can
withdraw 50 per cent of the initial deposit only after years.
The same amount of Rs 10,000 can give you an insurance cover of up to
approximately Rs 5-12 lakhs (depending upon the plan, age and medical
condition of the life insured, etc) and this amount can become immediately
available to the nominee of the policyholder on death.
Thus insurance is a unique investment avenue that delivers sound returns in
addition to protection.
Role 2: Life insurance as "Risk cover"
First and foremost, insurance is about risk cover and protection - financial
protection, to be more precise - to help outlast life's unpredictable losses.
Designed to safeguard against losses suffered on account of any unforeseen
event, insurance provides you with that unique sense of security that no other
form of investment provides. By buying life insurance, you buy peace of mind
and are prepared to face any financial demand that would hit the family in case
of an untimely demise.
To provide such protection, insurance firms collect contributions from many
people who face the same risk. A loss claim is paid out of the total premium
collected by the insurance companies, who act as trustees to the monies.
Insurance also provides a safeguard in the case of accidents or a drop in income
after retirement. An accident or disability can be devastating, and an insurance

policy can lend timely support to the family in such times. It also comes as a
great help when you retire, in case no untoward incident happens during the
term of the policy.
With the entry of private sector players in insurance, you have a wide range of
products and services to choose from. Further, many of these can be further
customized to fit individual/group specific needs. Considering the amount you
have to pay now, it's worth buying some extra sleep.
Role 3: Life insurance as "Tax planning"
Insurance serves as an excellent tax saving mechanism too. The Government of
India has offered tax incentives to life insurance products in order to facilitate
the flow of funds into productive assets. Under Section 88 of Income Tax Act
1961, an individual is entitled to a rebate of 20 per cent on the annual premium
payable on his/her life and life of his/her children or adult children. The rebate
is deductible from tax payable by the individual or a Hindu Undivided Family.
This rebate is can be availed up to a maximum of Rs 12,000 on payment of
yearly premium of Rs 60,000. By paying Rs 60,000 a year, you can buy
anything upwards of Rs 10 lakhs in sum assured. (Depending upon the age of
the insured and term of the policy) This means that you get an Rs 12,000 tax
benefit. The rebate is deductible from the tax payable by an individual or a
Hindu Undivided Family.
MYTH BUSTERS
what you should know about life insurance

Myth 1: Insurance is for tax saving
There’s always this rush to buy insurance policies towards the end of the
financial year, making one wonder if the tax-saving purpose of life insurance
has not overshadowed its other roles.
Yes, the tax benefits associated with life insurance policies do help make the
investment more attractive. The Public Provident Fund also offers the 20% tax
rebate under section 88 of the Income Tax Act, 1961, as do small saving
schemes like post office deposits and national savings certificates. You may
also avail of Tax benefits under section 80CCC with certain plans. And there
are other investment options that give you higher returns than insurance. But
these don't offer you security, the risk cover that helps you overcome the
uncertainties of life. The primary function of life insurance is to cover you
against financial losses arising out of sudden death or disability. It also offers
returns and tax savings. Life insurance, as an instrument, is hence a good
marriage of risk cover, returns and tax benefits.
Myth 2: Insurance does not give good returns
Insurance is different from routine investment options. A fixed deposit or even
a National Savings Certificate may apparently fetch more returns than a life
insurance policy. But that's not a fair straight-line comparison. If monetary
returns are evaluated in isolation, a fixed deposit (FD) offering 9.5% might look
very good in this depressed market. But insurance offers other benefits along
with returns.

Look at security for instance. If you invest in an FD and happen to die, your
nominee can claim only the amount of the FD. If you live, you will get back the
sum of the FD with the desired interest.
LIFE INSURANCE – DO’S AND DON’TS
DO
 Do find out if you have death-in-service benefits
Through your job and what the level of cover is.
 Do remember that (with some exceptions) you
have a’ cooling-off’ period of 30 days during
Which you can cancel a policy.
 Do review your life insurance regularly,
Particularly when your circumstances change.
 Do decide what, if any, extra cover you need
And get information on the type of policies that
Meet your needs.
 Do shop around, costs can vary widely
For the same level of cover.
 Do consider giving up smoking. After one

Year, or in some cases two, many insurance
Companies will give you non-smoker races. This
Could cut your premium by half, even though
You are a bit older.
DON’T
 Don’t cash in an existing policy in order to take
Out a new one unless you have a good reason.
The cost of any new cover may be higher than
The policy you already have because you are
Older. You might also not be able to get new
Cover if your occupation or health has changed
In the meantime.
 Don’t buy insurance that you don’t need or
Already have.
Kotak Mahindra Old Mutual Life Insurance Ltd.
Old mutual plc is a London-listed fortune 500 international financial services
group focusing on asset gathering and asset management. At 31 December
2005, old mutual had more than 7 million life assurance policies, 3.6 million

banking customers and over 550,000 general insurance policies. Its funds under
management exceeded $310 billion. The group has a substantial presence in the
UK, US and South African markets, it further expanded its European presence
through the acquisition of skandia in early 2006.
Established in 1984, the Kotak mahindra group has long been one of India’s
most reputed financial organizations. Kotak mahindra today is one of India’s
leading financial solutions, offering complete financial solutions that
encompass every sphere of life. The group has a net worth of over Rs. 2,840
crore, employs around 7,800 people in its various business and has a
distribution network of branches, franchisees, representative offices and
satellite offices across 264 cities and towns in India and offices in New York,
London, Dubai and Mauritius. The group services over 1.6 million customer
accounts.
Kotak Mahindra Old Mutual Life Insurance is a 76:24 joint venture
between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra
Old Mutual Life Insurance is one of the fastest growing insurance companies in
India and has shown remarkable growth since its inception in 2001.
Old Mutual, a company with 160 years experience in life insurance, is an
international financial services group listed on the London Stock Exchange and
included in the FTSE 100 list of companies, with assets under management
worth $ 400 Billion as on 30th June, 2006. For customers, this joint venture
translates into a company that combines international expertise with the
understanding of the local market.

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.
The joint venture translates into a company, which combines international
expertise in insurance, advice and fund management with an understanding of
the local markets.
KOTAK TERM PLAN Smart Protection for Your Family
MEANING
Kotak Term Plan is a pure risk product that aims to cover your life at a nominal
cost. You may want to take this plan to cover your outstanding debts like a
mortgage, a home loan etc. Since this is a pure risk cover product, there are no
maturity benefits payables on survival. This is a non-participating plan.
WHO CAN AVAIL OF THIS PLAN?
How old do you have to be to avail of
this plan?
Minimum age - 18 years
Maximum age - 60 years
For what term can I avail of this plan? 10 - 30 years for regular premium
5 - 30 years for single premium
What is the minimum premium that I
need to pay and at what intervals can I
pay them?
Mode Amount
Quarterly Rs.540

Half Yearly Rs.1055
Annually Rs.2000
Single
Premium
Rs.10000
What is the maximum age that the plan
can cover you till?
70 years
KEY FEATURES
 Accidental Death Benefit
This benefit provides an additional amount (over and above the basic
sum assured) to the beneficiary in the event of the accidental death of the life
insured. The maximum cover available under this rider is equal to the basic
Sum assured (subject to a maximum of Rs.10 lakhs.)

 Permanent Disability Benefit
This benefit can be added to your basic life insurance policy to provide
financial support in case of disability due to an accident. The amount payable
under this benefit would be paid out as an annuity. The maximum permanent
disability benefit that you can avail of is equal to the basic sum assured (subject
to maximum of Rs.10 lakhs).
 Critical Illness Benefit
This benefit can be added to your basic life insurance policy to provide
financial support in the event of a medical emergency. On the first occurrence
of critical illness during the term of the policy, you would receive a portion of
the sum assured to reduce your financial burden in this emergency.

ADVAN
TAGES
• It is a low-cost insurance plan.
• You can choose between a regular premium payment option and a single
premium payment option. In case you opt for the regular premium
payment option, you may pay your premiums either annually, or in half
yearly or quarterly installments.
• Your Kotak Term Plan can be converted into any other plan offered by
Kotak Life Insurance (except for another Term plan) provided there are
at least 5 years before cover ceases.
• In case you forget to pay your premium by the due date, you are entitled
to a grace period of 30 days from the date of unpaid premiums.
• In case of a financial emergency, you have the option to surrender the
policy provided you have taken the single premium payment option.
TAX BENEFITS
Section 80C, 10(10D) of Income Tax Act would apply. Premiums paid for
Critical Illness Benefit qualify for benefits under Section 80D. These benefits
are as per the currently prevailing tax regulations and it is advised to consult
your tax advisor for details.
HOW DOES THIS PLAN WORK?
To explain, how this plan works…Mr. Sanjay Gupta, a 30-year-old male,
decides to buy the Kotak Term Plan for a sum assured of Rs.10, 00,000 for a 10

year term. The annual premium that Mr.Gupta’s pays is Rs.3, 747 annually. In
the event of his unfortunate death during the next ten years, his family would
receive Rs.10, 00,000.
In the illustration, some benefits are guaranteed and some are variable.
Guaranteed Returns are marked "guaranteed" in the illustration. Variable
returns are shown at two different rates of assumed future returns. These
assumed rates of return are not guaranteed and they are not the upper or lower
limits of what you might get back .The actual return may be different depending
on a number of factors including future investment performance
ON MATURITY OF THE POLICY
Since this is a pure risk cover plan, there are no maturity benefits.
EXCLUSIONS
In case the life insured commits suicide within 1 (one) year of the plan, no
benefits outlined in the plan would be payable.
The Accidental Death Benefit, Permanent Disability Benefit & Critical
Illness Benefit would not be paid out in the following circumstances:
a) Self inflicted injuries, suicide, insanity, immorality, committing any
breach of law or being under the influence of drugs, liquor etc.
b) When the life insured is engaged in aviation or aeronautics other than as
a passenger on a licensed commercial aircraft operating on a scheduled
route.

c) Due to injuries from war (whether war is declared or not), invasion,
hunting, other dangerous hobbies or activities, or having been on duty in
military, Para-military, security or police organization.
PROHIBITION OF REBATES Section
41 of the Insurance act 1938, states...
(1) No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take out or renew or continue an insurance in
respect of any kind of risk relating to lives or property in India, any rebate of
the whole or part of the commission payable or any rebate of the premium
shown on the policy, nor shall any person taking out or renewing or continuing
a policy accept any rebate, except such rebate as may be allowed in accordance
with the published prospectuses or tables of the insurer.
(2) Any person making default in complying with the provision of this section
shall be punishable with fine, which may extend to five hundred rupees.
KOTAK MONEY BACK PLAN
Live For Today and Plan for Tomorrow
MEANING

The Kotak Money Back Plan not only covers your life, it also assures you a
certain percent of the sum assured as cash payment at regular intervals of every
5 years. It is a savings plan with the added advantage of life cover and regular
cash inflow. This plan is ideal for planning special moments like a wedding,
your child's education or purchase of an asset etc. This is a participating plan
with profits.
How old do you have to be to avail of this
plan?
Minimum age- 18 years
Maximum age- 60 years
For what term can I avail of this plan? 15, 20 & 25 years
What is the maximum age that the plan can
cover you till?
75 years

KEY FEATURES
• Term Benefit/ Preferred Term Benefit
In the event of death during the term of this benefit, the beneficiary would
receive an additional death benefit amount, which is over and above the sum
assured. The maximum Term Benefit you can avail of is equal to the basic sum
assured. Where the term benefit cover applied for is more than Rs 10 lakhs,
better rates may apply, subject to meeting eligibility requirements.
• Accidental Death Benefit
This benefit provides an additional amount (over and above the sum assured) to
the beneficiary in the event accidental death of the life insured. The maximum
cover available under this benefit is equal to the basic sum assured (subject to a
maximum of Rs. 10 lakhs).
• Permanent Disability Benefit
This benefit can be added to the basic life insurance plan to provide financial
support in case of permanent disability due to an accident. The amount payable
under this benefit would be paid out as an annuity. The maximum permanent
disability benefit that you can avail of is equal to the basic sum assured (subject
to a maximum of Rs.10 lakhs).
• Critical Illness Benefit

This benefit can be added to the basic life insurance plan to provide financial
support in the event of medical emergencies. On the first occurrence of critical
illness during the term of the policy, you would receive a portion of the sum
assured to reduce your financial burden in this emergency.
• Life Guardian Benefit
This benefit can be availed of, only in case where the life insured and the
proposer are two different individuals. In case of the unfortunate death of the
proposer, this benefit keeps the policy alive by waiving all future premiums on
the policy.
• Accidental Disability Guardian Benefit
In case the proposer is permanently disabled as a result of an accident, this
benefit keeps the policy alive by waiving all future premiums on the policy.
ADVANTAG
ES
 The plan not only covers your life but also provides you with a survival
benefit payout every 5 years.
 In the unfortunate event of death of life insured, the beneficiary would
receive the death benefit. The death benefit keeps increases by 7% of the
sum assured every year.
 On maturity, you would receive the sum of the Survival Benefit, Bonus
addition and guaranteed addition.

 The amount available in the Accumulation Account is invested in various
financial instruments (as per IRDA regulations) so your money works
hard for you.
 The Automatic Cover Maintenance facility ensures the policy remains in
force even if you miss premium payments. This facility is available after
the first three years of the term.
 You have the benefit of a 15-day free look period.
 You have the option of paying premiums quarterly, half yearly or yearly.
TAX BENEFITS
are as per the currently prevailing tax regulations and you are advised to consult

Mr. Sanjay Gupta, 30 years old, decides to buy a Kotak Money Back Plan for a
sum assured of Rs.5, 00,000 and for a term of 20 years.
His annual premium and the payouts are outlined below.
Annual Premium Rs.34,124
Survival Benefit:
After 5 years Rs.100,000
At the end of the 20 years
Balance Sum Assured Rs.200,000
Guaranteed addition Rs.150,000
Bonus Addition Variable
a) What would Mr.Gupta receive on maturity of the plans?

Mr.Gupta would get cash flows in year 5, 10 and 15 as mentioned above.
Assuming that the Accumulation Account grows at a rate of 6%, the payout on
maturity would be Rs.510, 900. At a growth rate of 10%, the maturity amount
payable would be Rs.872, 600. The table below shows the details of the payout.
@6% @10%
Balance Sum Assured Rs.200,000 Rs.200,000
Guaranteed addition Rs.150,000 Rs.150,000
Bonus Addition Rs.160,900 Rs.522,000
Final payout at the end of 20 years Rs.510,900 Rs.872,600
ON MATURITY OF THE PLAN On maturity,
you would receive the sum of the Survival benefit, guaranteed addition and
Bonus addition.
EXCLUSIONS
The Accidental Death Benefit, Permanent Disability Benefit & Critical illness
Benefit would not be paid out in the following circumstances:

(a) Self inflicted injuries, suicide, insanity, immorality, committing any
breach of law or being under the influence of drugs, liquor etc.
(b) When the life insured is engaged in aviation or aeronautics other than as
route.
(c) Due to injuries from war (whether war is declared or not), invasion,
PROHIBITION OF REBATES Section 41 of the
Insurance Act, 1938 states: -
induce men to any person to take out or renew or continue an insurance in

KOTAK ENDOWMENT PLAN
Savings cum Protection Plan to Ensure an Independent Future
MEANING
Kotak Endowment Plan is a protection plan that covers your life and at the
same time ensures that your money does not lie idle. It invests a portion of your
premium in financial instruments and ensures a considerable growth in savings.
This is a participating plan (with profits).
How old do you have to be to avail of
this plan?
For what term can I avail of this plan? 10-30 years
What is the maximum age that the plan
can cover you till?
75 years

KEY FEATURES
 Term Benefit / Preferred Term Benefit
receive an additional death benefit amount, which is over and above the sum
assured. The maximum term benefit you can avail of is equal to the basic sum
assured. Where the Term Benefit cover applied for is more than Rs.10 lakhs,
better rates may apply, subject to meeting eligibility requirements.
This benefit provides an additional amount (over and above the basic sum
assured) to the beneficiary in the event of the accidental death of the life
insured. The maximum cover available under this benefit is equal to the basic
sum assured (subject to a maximum of Rs.10 lakhs).
This benefit provides financial support in case of your permanent disability due
to an accident. The amount payable is over and above the basic sum assured and
would be paid out as an annuity. The maximum Permanent Disability Benefit

that you can avail of is equal to the basic sum assured (subject to a maximum of
Rs.10 lakhs).
This benefit can be taken with the basic life insurance policy to provide
financial support in the event of medical emergencies. On the first occurrence
of critical illness during the term of the policy, you would receive a portion of
the sum assured to reduce your financial burden in this emergency.
 Life Guardian Benefit
This benefit can be availed of, only in a case where the life insured and the
proposer are two different individuals. In case of the unfortunate death of the
proposer, this benefit keeps the policy alive by waiving all future premiums on
the policy.
 Accidental Disability Guardian Benefit
This benefit is available also where the life insured is the proposer.
ADVANTAGES
• On maturity, you would receive the sum assured plus the bonus addition.
Bonus addition is the amount in the Accumulation Account, in excess of
the sum assured.

• The amount available in the Accumulation Account is invested in various
harder for you.
• The Automatic Cover Maintenance facility ensures the policy remains in
• On maturity, you would receive the sum assured plus the bonus addition.
• The amount available in the Accumulation Account is invested in various
harder for you.
• The Automatic Cover Maintenance facility ensures the policy remains in
• You can take a loan against your policy, after the policy has been in force
for at least three years.
• You have the option of paying premiums quarterly, half yearly or yearly.
You also have the flexibility to pay premiums through the full term of the
policy or pay it for a fixed term of 3, 5, 7, 10 or 15 years.
• You have the benefit of a 15-day free look period.
TAX BENEFITS

are as per the currently prevailing tax regulations and you are advised to consult
Mr. Sanjay Gupta, who is 30 years old, decides to buy a Kotak Endowment
Plan for a sum assured of Rs. 5, 00,000 for a 20-year term for his wife, who is
aged 28. Mr. Gupta decides to take the Life Guardian Benefit as a rider to the
plan. He does this to provide enhanced security and protection to his wife.
The annual premiums paid by Mr. Gupta are as follows
Amount (Rs.)
Kotak Endowment Plan Premium 22,552
Life Guardian Benefit Premium 1,106
Total Annual Premium Paid 23,658
ON MATURITY OF THE POLICY
On maturity Sanjay Gupta would receive the sum assured or Accumulation
Account, whichever is higher.
LIMITED PREMIUM PAYMENT OPTION

Your life is uncertain and with rising costs and economic instability, you may
not be sure about your future incomes. You need a product that not only offers
you a cover for the term that you want, but also, at the same time gives you the
flexibility to choose a premium term such that you pay premiums during the
period that you are certain of a secure income. The Limited Premium Payment
(LPP) option in the Kotak Endowment Plan:
1. Covers you for a term (years) of your choice.
2. At the same time does not burden you with the liability to pay premiums
for that entire term.
• You to Bonus Addition for the entire term of the plan.
FOR WHAT TERM CAN I AVAIL OF THE PLAN
You may take a policy of term raging from 10 to 30 years. However, you may
opt for a limited premium payment term of 3, 5, 7, 10, or 15 years. The
Premium payment term must be less than the policy term.
HOW DOES LPP OPTION WORK?
Jiten is a TV actor, aged 30 years. He wants to buy the Kotak Endowment Plan
of Rs.1crore for 15 years. However, he is not too sure if his income would
remain the same for 15 years, to be able to afford the premiums.
But Jiten is not worried because with the Kotak Endowment Plan, he can
choose to limit the premium paying term on his policy to 3 years. Thus he pays

premium for 3 years and gets protection and Bonus Addition for a Period of 15
years.
In the event of maturity/death, Jiten/ his beneficiaries would receive the sum
Assured plus the bonus addition (if any).
BENEFITS OF LPP OPTION
• You can pay off all premiums over a short period of time and be free
from paying premiums for the rest of the policy term, while enjoying the
life cover for the entire policy term.
• Enjoy the benefits of bonus additions for the entire term of the policy.
EXCLUSION In case the
life insured commits suicide within 1 (one) year of the plan, no benefit outlined
in the plan would be payable.
The Accidental Death Benefit, Permanent Disability Benefit & Critical
Illness Benefit would not be paid out in the following circumstances:
(a) Self-inflicted injuries, suicide, insanity, immorality of the proposer, or his
committing any breach of law or being under the influence of drugs,
liquor etc.
(b)When the life insured is engaged in aviation or aeronautics other than as
route.
(c) Due to injuries from war (whether war is declared or not), invasion,

PROHIBITION OF REBATES
Section 41 of the Insurance act, 1938 states:-
1. No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take out or renew or continue an insurance
in respect of any kind of risk relating to lives or property in India, any
rebate of the whole or part of the commission payable or any rebate of
the premium shown on the policy, nor shall any person taking out or
renewing or continuing a policy accept any rebate, except such rebate as
may be allowed in accordance with the published prospectuses or tables
of the insurer.
2. Any person making default in complying with the provision of this
section shall be punishable with fine, which may extend to five hundred
rupees.

KOTAK RETIREMENT INCOME PLAN
So you’re Tomorrow Is Better Than Your Today.
MEANING
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". It gives you
the choice to remain independent even after retirement.
The Kotak Retirement Income Plan is a participating plan. The plan comes in
two forms: (I) With Cover (II) Without Cover.

How old do you have to be to avail of this
plan?
For what term can you choose to pay the
premiums?
5 yrs - 30 yrs
How old do you have to be to receive
your annuity?
Minimum Age - 45 yrs
Maximum Age – 65 yrs
At what intervals can you pay the
premium?
Quarterly
Half Yearly
Annually
KEY FEATURES
 Term/ Preferred Term Benefit
receive an additional Death Benefit amount, which is over and above the Sum

Assured. The maximum amount of benefit you can avail of is equal to the Basic
Sum Assured. Where the Term Benefit cover applied for is more than Rs.10
lakhs, better rates may apply, subject to meeting eligibility requirements.
In the event of death as a result of an accident during the term of this benefit,
your beneficiary will receive an additional benefit, which is over and above the
Basic Sum Assured. The maximum Accidental Death Benefit you can avail of
is equal to the Basic Sum Assured (subject to a maximum of Rs. 10 lakhs).
In case of the first occurrence of a critical illness during the term of this benefit,
the Critical Illness Benefit Sum Assured will be added to the Supplementary
Accumulation Account. Once the addition is made to the Supplementary
Accumulation Account, the Basic Sum Assured would reduce by the Critical
Illness Benefit Sum Assured, the Basic Accumulation Account would reduce in
the same proportion and future premiums for the plan would be recalculated
based on the reduced Sum Assured. . The maximum Critical Illness Benefit
Sum Assured you can avail of is equal to the Basic Sum Assured (subject to a
limit of Rs.20 lakhs).
If you meet with an accident during the term of this benefit, and are
permanently disabled, you would be entitled to an additional amount, which is
over and above the Basic Sum Assured. This amount will be added to the
Supplementary Accumulation Account and will be available on retirement. The

maximum benefit available under this plan is equal to the Basic Sum Assured
(subject to a maximum of Rs.10 lakhs).
 Life Guardian Benefit
In case of the unfortunate death of the proposer, this benefit keeps the policy
alive by waiving all future premiums on the policy. This is available only where
the proposer and the life insured are two different individuals
 Accidental Disability Guardian Benefit
This is available only when the proposer and the life insured are two different
individuals
ADVANTAGES
 You can choose to retire at any age between 45 yrs and 65 yrs.
 On Retirement: You may take a lump sum in cash of up to a third
Basic Sum Assured or Accumulation Account, whichever is higher;
and the balance of the benefit you are eligible for will be used to buy
an annuity of your choice.
 Annuity Options: You may buy an annuity either from Kotak Life
Insurance (subject to the choice and rates available at that time), or from
any other insurer.

 You can make lump-sum injections into your policy at any time before
retirement (such lump-sum injections during a year may not exceed 25%
of the Basic Sum Assured). A Supplementary Accumulation Account
will be created for this, and will be paid out in the same manner as
other benefits.
 You may exercise the option of paying premiums from the
Supplementary Accumulation Account, created for "lump-sum
injections", if the need arises.
 For a "With Cover" plan, you have the facility of Automatic Cover
Maintenance, which ensures that the cover remains in force even
when you miss the premium payments. This facility is available after
 You have the option of paying premiums in quarterly, half-yearly or
yearly installments.
 You have the facility of a 15-day free look period
TAX BENEFITS
Critical Illness Benefit qualify for benefits under Section 80D.
(a)What Happens In The Event Of The Death Of The Life Insured Before
Retirement?

For the "With Cover" Plan:
The benefits to the beneficiary will be, greater of:
(a) Sum Assured less all the premiums due but not paid, and
(b) Accumulation Account.
This is used to buy an annuity, and provide commutation benefit, in accordance
with the beneficiary's choice.
For the "Without Cover" Plan:
The benefits to the beneficiary will be, greater of:
(a) Return of premiums (without interest), and
(b) Accumulation Account.
This will be used to buy an annuity, and provide commutation benefit, in
accordance with the beneficiary's choice.
Mr. Mehta is a 35-year-old man, who wishes to retire at age 60. He takes the
Kotak Retirement Income Plan with a Basic Sum Assured of Rs. 3 lakhs. He
considers the following two options; "With Cover" - Option A, and "Without
Cover" - Option B.
Option A Option B
Kotak Retirement Income Plan premium Rs 9,750 Rs 9,060
Term Benefit premium (3 lakhs of
cover)
Rs 1,818

Accidental Death Benefit premium
(3 lakhs of cover)
Rs 265
Total Annual Premium Paid Rs 11,568 Rs 9,325
(a) What is the benefit available to Mr. Mehta on retirement?
Under Option A,
Assuming that Mr. Mehta's Accumulation Account grows at 6% p.a, the fund
available to him will be Rs. 4, 67,500. Assuming that it grows at 10%, then
the fund available to him will be Rs. 8; 70,000.Mr. Mehta may commute up
to a third in cash immediately, and buy an annuity with the remaining
benefit.
Under Option B,
Assuming that Mr. Mehta's Accumulation Account grows at 6% p.a, the fund
available to him will be Rs.4, 63,000. Assuming that it grows at 10%, then
the fund available to him will be Rs. 8, 56,600.
Mr. Mehta may commute up to a third in cash immediately, and buy an
annuity with the remaining benefit.
(b) What is the benefit available in the event of the unfortunate death of Mr.
Mehta after 15 years?
Under Option A,

Mr. Mehta's beneficiary will be eligible for the greater of Rs. 3 lakhs or the
balance in the Accumulation Account. The balance in the Accumulation
Account will be less than Rs. 3 lakhs even if the accumulation account grows at
10% per annum. He/she will also receive an additional Rs.3 lakhs under the
"Term Benefit" as Mr. Mehta availed of this value-add by paying a nominal
premium of Rs.1, 818 p.a, for it. The beneficiary may commute up to a third
in cash immediately, and buy an annuity from the remaining benefit.
Under Option B,
Mr. Mehta's beneficiary will be eligible for Rs. 1, 95,400 if his Accumulation
Account grows at 6% per annum, and Rs. 2, 75,600 if his Accumulation
Account grows at 10% per annum. In the event that Mr. Mehta's death has
been due to an accident, then his beneficiary will receive an additional Rs.3
lakhs under the "Accidental Death Benefit", as Mr. Mehta availed of this
value-add by paying a minimal premium of Rs.265 p.a. for it. The
beneficiary may commute up to a third in cash immediately, and buy an
annuity with the remaining benefit.
EXCLUSION
The Accidental Death Benefit, Permanent Disability Benefit, Critical Illness
Benefit & Kotak Accidental Disability Guardian Benefit would not be paid out
in the following circumstances:

(a) Self inflicted injuries, suicide, insanity, immorality, committing any breach
of law or being under the influence of drugs, liquor etc.
(b) When the life insured is engaged in aviation or aeronautics other than as a
passenger on a licensed commercial aircraft operating on a scheduled route.
(c) Due to injuries from war (whether war is declared or not), invasion, hunting,
mountaineering, motor racing of any kind, other dangerous hobbies or
activities, or having been on duty in military, Para-military, security etc.
PROHIBITION OF REBATES
Section 41 of the Insurance Act, 1938 states:
inducement to any person to take out or renew or continue an insurance in

5 EASY STEPS TO BUYING A POLICY
1. Initially, calculate the exact amount of insurance that you need;
2. Decide which product suits you best based on your life stage and need,
3. Calculate the premium that you need to pay on the basis of the product
that you have decided to buy;
4. Once you have decided on all the above parameters, get in touch with a
Life Advisor at any of the Kotak Life Insurance branch offices.
5. The Life Advisor will assist you in filling up a proposal form. In addition
to a proposal form, you need to submit some financial documents that are
required in order to buy a policy. The Life Advisor will notify the list of
financial documents required for the same.

Q3 RESULT
Kotak Mahindra Old Mutual Life Insurance – Life Insurance
RS.MILLION. Q3FY07
(3M)
Q3FY06
(3M)
Q2FY07
(3M)
YTDFY07
(9M)
YTDFY0
6 (9M)
FY06
(12M)
Gross
premium
income
2,132.
6
1,
209.7
1,6
78.5
5,04
7.7 2,578.4
6,2
18.5
Loss (175.7) (120.5) (169.0) (482.3) (420.1) (432.4)
• Kotak Life Insurance (KLI) premium income grew 76% to Rs 2,132.6
mn in Q3FY07 from Rs. 1,209.7 mn in Q3FY06.
• KLI has a network of 65 branches in 44 cities (44 branches as on March
06).
• As on December 31, 2006 KLI had over 248,000 individual policies on
books representing a basic sum assured of around Rs. 103.5 bn
(excluding riders). Additionally, KLI had around 198 group policies
covering over 324000 lives with an aggregate sum assured of around Rs
91.2bn.

SBI LIFE INSURANCE
SBI Life Insurance is a joint venture between the State Bank of India and
Cardiff SA of France. SBI Life Insurance is registered with an authorized
capital of Rs 500 crore and a paid up capital of Rs 500 crores. SBI owns 74% of
the total capital and Cardiff the remaining 26%.
State Bank of India enjoys the largest banking franchise in India. Along with its
7 Associate Banks, SBI Group has the unrivalled strength of over 14,500
branches across the country, the largest in the world. Cardif is a wholly owned
subsidiary of BNP Paribas, which is The Euro Zone’s leading Bank. BNP

Paribas is one of the oldest foreign banks with a presence in India dating back
to 1860. Cardif is ranked 2nd worldwide in creditor’s insurance offering
protection to over 35 million policyholders and net income in excess of Euro 1
billion mark. Cardif has also been a pioneer in the art of selling insurance
products through commercial banks in France and 34 more countries.
SBI Life Insurance’s mission is to emerge as the leading company offering a
comprehensive range of Life Insurance and pension products at competitive
prices, ensuring high standards of customer service and world class operating
efficiency.
SBI Life Insurance is uniquely placed as a pioneer to usher Bancassurance into
India. The company hopes to extensively utilise the SBI Group as a platform for
cross-selling insurance products along with its numerous banking product
packages such as housing loans and personal loans. SBI’s access to over 100
million accounts provides a vibrant base to build insurance selling across every
region and economic strata in the country
The Entire Life Insurance Product Offered By Insurance Companies Are
Different From Other Company. Let Us See How the Kotak’s Life Insurance Product Differ

from SBI’s Life Insurance Product. Kotak Money Back Plan Vs SBI
Money Back Plan
Points Kotak Money Back Plan SBI Money Back Plan
Guarantee
5 years guaranteed survival
benefit is payable.
Different period 3 or 4 years
guaranteed survival benefit.
15
year plan
25% of basic sum assured payable at
5th
years. Same it to next 10th
year. 50% to
next 15th
year.
10% at 3rd
year
15% at 6th
year
20% at 9th
year.
25% at 12th
year
45% at 15th
year.
25
year plan
5th
year - 15%
10th
year - 15% 15th
year - 15% 20th
year - 15% 25th
year - 40%
5th
year - 10% 10th
year - 15% 15th
year -
20% 20th
year - 25%
25th
year - 55% + bonus
Minimum
age
Minimum age of entry – 18 yrs. 15 years (same for all the plan)
Maximum age
Maximum age of entry – 60
years.
Option 1-60 years.
Option 2-55 years.
Maximum
maturity age 70 years 75 years
Kotak Endowment Plan Vs SBI Endowment Plan
POINTS KOTAK ENDOWMENT
PLAN
SBI ENDOWMENT PLAN
Age Min.—18yrs Max.—65 yrs Min.—12yrs Max.—65 yrs

Entry
Term Min.—10yrs Max.—30 yrs Min.—8yrs Max.--30 yrs
Death
Benefit
In event of death nominee will receive
basic sum assured or accumulated
assured which ever is higher
Sum assured + all bonuses.
Premium
Payment
Regular premium payment. Regular premium payment &
single premium payment.
KOTAK PENSION PLAN VS SBI PENSION PLAN
POINTS KOTAK PENSION PLAN SBI PENSION PLAN
Plan
Option
Kotak pension plan offers us in
three versions: - with cover,
without cover, single
premium.
SBI pension plan offer in two
option: -
I:-pure option.
II: - pension cum life cover.
Age
Entry
Min. 18 yrs.
Max. 55 yrs.
Min 18 yrs.
Max. 60yrs.
Premium Min. Rs.10, 000 annually. Min.Rs.12, 000
Max. No limit
Term
Plan
Min. Of 10 yrs. (single
premium-5yrs.)
Max. Of 30 yrs.
Min. Of 10yrs.
Max. Of 52 yrs.
Top-Up-
Premium
Min. Rs.10,000 Min.Rs.1,000/- in multiple of
Rs.100/-
Max. Cumulative top up

premium(s) in a policy yrs is
limited to twice the annualized
premium during that policy yr.
Maturity
Age
Min.:-45 yrs.
Max.:- 75 yrs.
Min.:-50 yrs.
Max:-70 yrs.
SURVEY FORM
SHRI CHINAI COLLEGE OF COMMERCE & ECONOMICS
Questionnaire for Survey of Kotak Mahindra – Life Insurance
Name:
Designation: - Contact No.:-__________
1. Are You Aware Of Insurance?

Yes No
2. Which Company Do You Prefer?
Private Public
3. Do You Have Life Insurance Plan Of Any Company?
If Yes Than Which Co.______________________
4. Do You Have Any Kotak Life Insurance Plan?
____________________________________
5. Grade the Above Policy According To Your Needs from 1-10?
Term Plan Money Back Plan
Pension Plan Endowment Plan
6. At What Age you’ll prefer to take life Insurance Plan?
_____________________________
7. Give Your Comments On Kotak Mahindra Life Insurance?
_______________________________________
Project Guide Prepared By
Prof.Nishikant Jha Amit Panwar
(Co-ordinator) (T.Y.B.B.I)

SURVEY RESULT
1. Market share of life Insurance company
Market Share of Life Insurance
Company
Market Share (%)
LIC 79.65
ICICI Prudential 5.73
Bajaj Allianz 4.19
SBI Life 2.24
HDFC Standard 1.81
Birla SunLife 1.05
Tata AIG 0.89
Max New York 1.02
Aviva 0.95
Kotak Mahindra 0.59
ING Vysya 0.57
Reliance Life 0.77
MetLife 0.32
Sahara Life 0.03

Market Share (%)
LIC
ICICI Prudential
Bajaj Allianz
SBI Life
HDFC Standard
Birla SunLife
Tata AIG
Max New York
Aviva
Kotak Mahindra
ING Vysya
Reliance Life
MetLife
Sahara Life
2. Are You Aware Of Insurance?
78% YES OUT OF WHICH 70% ARE INSURED 22% NO
YES
Aware and having
insurance
NO
3. Which Company Do You Prefer?
Public ---- 63% Private ---- 37%

0
10
20
30
40
50
60
70
Public private
Series1
4. Do You Have Life Insurance Plan Of Any Company?
1
Lic
Others
0
20
40
60
80
Lic
icici predential
Sbi
Kotak
Others
5. Grade the Above Policy According To Your Needs from 1-10?
Term Plan Money Back Pension Plan Endowment Plan
0
1
2
3
4
5
TermPlan
Money
BackPlan
Endowment
Plan
Pension
Plan
Series1
Series2
Series3

6. At What Age you’ll prefer to take life Insurance Plan?
20-30 ---- 63% 30-40 ---- 30%
40-50 ---- 5% 50 & Above ---- 2%
20-30
30-40
40-50
50-above
SURVEY REPORT
I have conducted survey for the project which will give me a practical
knowledge about insurance amongst general public. I have noticed that around
80% of the general public has been insured by LIC the basic reason behind this
is that LIC is the public company and policy holders have faith in public
company.

I have also noticed that customer is not much aware about kotak mahindra as
insurance company. Because the company has not advertise themselves
properly in the market which is the key for the success among its competitors.
While doing survey I have also noticed some of the point which is very important for the kotak mahindra
as well as for all the insurance companies conducting their business in India.
 The LIC is the most leading companies in insurance sector having market
share of around 79.63% which is the highest among all the insurance
company in India. (fig.1.)
 The second largest market share is of ICICI Predential having market share of around
5.73% business in India.
 Whereas kotak mahindra share the 10th
position of market share i.e. its business in
amongst all 14th
insurance companies in India.
 It will take time for the kotak mahindra to establish fully in India to
compete with all other insurance companies.
 In the second figure we can see that almost 78% people are aware of insurance &
out of which 70% are insured with some of the insurance company in India. (fig.2.)
 Whereas, 22% are not aware of insurance.
 In the third figure we can see that almost 63% like to be insured with the
public company. Whereas 37% like to be insured with the private
company. (fig.3.)
 I have noticed that 78% are insured with LIC, 9% are insured with ICICI
Predential that of 3% are insured with kotak mahindra. (fig.no.4.)

 Amongst the entire insurance product offered by kotak mahindra or by
some other companies’ people are interested to take money back plan as
its give guarantee of return of money in its maturity or death. (fig.no.5.)
 Almost 63% are to be insured at the age of between 20-30 years.(FIG.NO.6)
FAQ’S frequently asked questions?
"Is there any policy where I can receive money during the tenure of the
policy?"
Yes, a Money Back Policy. This is an anticipated endowment policy with an
additional feature of receiving a benefit at regular intervals during the tenure of
the policy. The risk cover continues for the entire sum assured in spite of the
installments already paid. If you outlive the policy, the balance sum assured
along with accumulated bonus is paid back to you. For example, Kotak Money
Back Plan.
This is suitable for you if…
• You plan to coincide the funds received from the policy with your future
anticipated needs like a car, an overseas holiday, children's educational
needs, marriage expenses, etc.
"How safe is my investment with Kotak Life Insurance? OR how are the
premiums collected invested by Kotak Life Insurance?"
Kotak Life Insurance's investment portfolio has been created in accordance
with the IRDA guidelines on investment by a Life Insurance Company.

"Is there any option where I can restrict my premium payment for a lesser
number of years than the duration of the policy?"
Yes. With the Kotak Endowment Plan, there is a Limited Premium Payment
(LPP) option. Under this option you can take a policy for 10 to 30 years and opt
for paying premiums for 3, 5, 7, 10 or 15 years after which premium payment
ceases but the cover continues for the entire tenure of the policy. This option is
suitable for people who are sure of secured income only for a specified period
of their earning life during which they want to pay off all their premiums
"Is there any policy with which I can plan for my retirement?"
Yes. Kotak Retirement Income Plan. This is a pension plan, which helps you to
regularly invest your savings during your earning life in order to build up a
retirement corpus to take care of your post retirement needs. Further you may
be eligible for a tax deduction on the premiums paid up to Rs 10,000 (as per
current tax provisions) per financial year under section 80CCC of the Income
tax Act. On retirement you can withdraw up to one-third of the Accumulated
Account, which is tax-free and for the balance amount, you can buy an annuity.
"Are there any advantages in buying insurance at an early age?"
Yes. The premium that you pay on your insurance policy is mainly dependant
upon two things - your age and the tenure of the policy. The younger you are,

the lower is your insurance premium amount. . At younger age, you would be
physically sound and may not be suffering from illnesses/ medical. This would
entitle you to a lower premium on the policy. Therefore it is advisable to buy
insurance at an early age to reduce the cost of insurance.
"What will I receive on maturity of my policy?"
On maturity, you will receive the sum assured or the Accumulation Account
whichever is higher. Let’s understand how these work…
1. Every year you will pay premium on your policy.
2. This premium will get credited to an Accumulation Account.
3. The amount required towards your life cover expenses and any other
expense would be deducted from this Account.
4. The balance will be invested in sound financial securities (as per IRDA
regulations) on your behalf.
5. The bonuses declared each year by the company would be added to the
Accumulation Account. Thus, every year the value in your Accumulation
Account will get compounded.
6. At the end of the policy tenure, you would receive the amount in the
Accumulation Account or the sum assured, whichever is higher.
"What will happen to my policy if I miss a premium
Payment due date?”

Kotak Life Insurance offers a grace period of 30 days after the premium
payment due date for paying the outstanding premium. If you fail to pay the
premium on your policy within this grace period your policy will lapse. You
can revive your lapsed policy by paying your outstanding premium and 6%
handling charges. This facility is available for six months. However, you can
still revive the policy within 5 years from the date of issue of policy. But if you
are applying for revival of your policy in this period, then shall entail
submission of proof of good health and your premiums will be recalculated.
However, if your policy has been in force (in existence with all premiums paid
on time) for three years and after that you fail to pay the premium, then your
policy will get serviced out of your balance in your Accumulation Account.
Every year the amount in this Accumulation Account will be used to covering
your life (mortality charges and other expenses) will be deducted from your
accumulated fund. This will continue till this fund has sufficient balance after
which your policy will be terminated.
"How much does life insurance cost?"
In order to buy a life insurance policy, you must pay premiums to the life
insurance company. The amount of premiums payable depends upon the type of
policy, term of policy contract, sum assured and your age.
You could pay these premiums monthly/ half-yearly/ annually/ or as a single
premiums.
"How else does life insurance help?"
The primary need is buying financial security for your family. Other aspects
that insurance helps fulfill are:

Tax benefits
• Life Insurance premiums paid up to Rs. 70,000 per annum get a tax
rebate (subject to certain conditions) under Section 88.
• Premiums paid towards pension policies get a 100% tax rebate under
section 80CCC up to Rs. 10,000 per year. (Available with Kotak
Retirement Income Plan only)
As a tool of financial planning
Most insurance plans available today have a built in savings element. Plans like
the Kotak Endowment Plan, Kotak Money back Plan; Kotak Child Advantage
Plan, Kotak Preferred Retirement Plans, etc allow you to meet your dual
financial goals of life cover and Savings for the future. Collateral security for
loans
You may avail of a loan from the insurance company against certain plans.
Your policy could also be pledged as collateral to raise funds from banks and
other financial institutions. In case of your unfortunate death the loans may be
repaid from the proceeds of the life insurance policy. Savings
Insurance promotes compulsory savings with regular premium payments and
helps build up a corpus of funds along with financial security for the dependants
in case of premature death. For your medical needs and that of your family
Hospitalization costs and quality healthcare is becoming increasingly
expensive. Without insurance, you can actually face a situation where you have
withdrawn all your money and borrowed to pay the medical bills. This can be
provided with our Critical Illness Benefit. Insurance provides you the option of
covering yourself towards any critical illnesses that can become extremely

costly. Choosing this facility pays you a lump sum upon diagnosis of certain
diseases like cancer, kidney failure, heart attack, stroke, coronary bypass, vital
organ transplants, Alzheimer's disease, paralysis, etc.
"Is there any option where I can restrict my premium payment for a lesser
number of years than the duration of the policy?"
Yes. With the Kotak Endowment Plan, there is a Limited Premium Payment
(LPP) option. Under this option you can take a policy for 10 to 30 years and opt
for paying premiums for 3, 5, 7, 10 or 15 years after which premium payment
ceases but the cover continues for the entire tenure of the policy. This option is
suitable for people who are sure of secured income only for a specified period
of their earning life during which they want to pay off all their premiums
NEWS ARTICLES
KOTAK LIFE LOOKING FOR RURAL TIE-UPS
Our Bureau
Hyderabad, Dec. 15
Kotak Life Insurance is looking at roping in co-operative banks, primary
agricultural co-operative societies (PACS), NGOs and self-help groups to sell

its products in the rural areas. "We are planning to have rural tie-ups for
distributing our policies," Mr Gaurang Shah, Managing Director, said.
The company already had tie-ups with 24 urban co-operative banks to distribute
its products. Addressing a press conference here on Friday, he said the company
found non-governmental organisations as the right channels. "We do have
credible intermediaries in such NGOs," he said. Mr Shah was here in
connection with the launch of company's 63rd branch and the third in
Hyderabad at Himayatnagar. "We are going to open branches in Vijayawada
and Visakhapatnam in the next few months," he said.
"We are going to infuse Rs 20 crore to raise the capital to Rs 360 crore by the
end of the fiscal," Mr Shah added.
KOTAK LIFE ENTERS VIZIANAGARAM
Our Bureau
Hyderabad, Oct. 27
Kotak Life Insurance has made a foray into Vizianagaram district of Andhra
Pradesh through a tie-up with Sakshi Investments. The tie-up would enhance
Kotak's presence, as the latter has a strong base of share trading clients,
according to a company press release. Sakshi Investments would offer a wider
array of products including insurance. It would focus on consolidating Kotak's
presence in the region. With a population of 2.2 million, the district is fast
becoming a commercial hub, the release said. Kotak Life is focused on the top
30-40 cities. It has 55 branches with a team of about 14,000 life advisors.

KOTAK LIFE POSTS 122-PC GROWTH IN H1
Our Bureau
Mumbai, Oct. 23
Kotak Mahindra Old Mutual Life Insurance has registered a 122 per cent
growth in first year premium for the half year ended September 30. The first
year premium calculated by the Adjusted Premium Equivalent Method,
increased to Rs 163.78 crore (Rs 73.83 crore).
The Adjusted Premium Equivalent method, takes into account only 10 per cent
of single premium. Regular premium during April-September, 2006 rose to Rs
142.70 crore, against Rs 70.26 crore in the corresponding period last year.
"Kotak Life Insurance manages Rs 1,335 crore in assets of which,
approximately 40 per cent is in equity. We will continue to build on our
distribution strengths to improve profitability and deliver long-term value," said
Mr Gaurang Shah, MD, and Kotak Life Insurance.
KOTAK LIFE RAISES CAPITAL BASE
Our Bureau
Mumbai, June 26
Kotak Life Insurance has increased its share capital by Rs 20 crore to Rs 317
crore.The promoters, Kotak Mahindra Bank and Old Mutual, have infused
additional funds as per their shareholding in the joint venture.

"The infused capital would be used as per the prudent capital adequacy norms
towards augmenting Kotak Life Insurance's business volumes and its network,"
the company said in a release.Kotak Life Insurance is present in 35 cities with
12,500 life advisors and 2,133 employees
KOTAK LIFE POSTS 100% PREMIUM INCOME GROWTH
Our Bureau
Mumbai, April 15
Kotak Mahindra Old Mutual Life Insurance (Kotak Life) has registered a 100
per cent growth in its regular premium income at Rs 349 crore in 2005-06, from
Rs 174 crore in 2004-05. However, single premium income fell to Rs 33 crore
from Rs 180 crore in the same period.
Mr Gaurang Shah, Managing Director, Kotak Life, said that around 60 per cent
of the company's business came in the last quarter buoyed by the success of its
newly introduced capital guarantee product. "Our capital guarantee product,
Kotak Privilege, has seen tremendous success in the last quarter. This product
alone has raked in Rs 112 crore in premium," he said.

Adjusted premium equivalent
"The adjusted premium equivalent, a standard measure in the industry that takes
single premium income at 10 per cent, has grown from Rs 209 crore in 2004-05
to Rs 366 crore in 2005-06, a growth of 76 per cent," said a release from the
company.
Bancassurance tie-ups with Kotak and other banks added Rs 150 crore to the
new business. "With Kotak Bank expanding to more locations and increasing its
retail base, we are riding on the infrastructure to penetrate deeper to semi-urban
areas," he said.
Group business
However, growth in the group business was flat. Mr Shah said that fringe
benefit tax on group superannuation had a negative impact on the company's
group business, with only Rs 16 crore coming from the portfolio, unchanged
from the previous year.
Kotak Life will focus on group credit term and superannuation to grow its
business in the current fiscal.
New products
In terms of new products, the company will introduce two more capital
guarantee policies — a children's plan and a retirement product.

The company will have to alter three of its Unit Linked Insurance Plans to
conform with the guidelines effective July 1. Mr Shah said the modification
would mainly consist of introducing a lock-in period.
Kotak Life will strengthen its distribution network this fiscal by opening 24
more branches and increasing its agency force to 25,000 from the current
12,500.
Mr Shah said the focus of the life insurer would continue to be the mass affluent
and high net-worth individuals. The average premium per policy of the
company is Rs 36,000.

CO
NCLUSION
From the above project report on “Kotak Mahindra - Life Insurance”. I
conclude that the products offered by kotak mahindra to its customers are
enough to satisfy their needs but, they are not aware of the company and its
product in the market. Kotak mahindra should advertise them internationally so
that the customer will be aware of such company. This will be helpful for the
company to compete with other insurance companies.
The detail given in this project report is true to the best of my knowledge & the
information made to me during my project tenure.

BIBLIO
GRAPHY
Book referred:--
Insurance Institute of India IC-33 Life Insurance ---------- S.Balachandran.
Websites:--
• www.kotaklifeinsurance.com
• www.sbilifeinsurance.com

Kotak life insurance

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Kotak life insurance

Similar to Kotak life insurance (20)

More from Dharmik

More from Dharmik (20)

Recently uploaded

Recently uploaded (20)

Kotak life insurance