A

SUMMER TRAINING REPORT

ON

“comparative study in kotak life insurance”

At

KOTAK MAHINDRA LIFE INSURANCE., PATHANKOT

Under the guidance of Mr.JARNAIL SINGH

Submitted to the University of Phagwara for the fulfillment of the requirements for the award of the degree of

Masters of Business Administration (Session 2009-2011)

By

BAKSHINDER PAL SINGH Roll No.- A-15 Regd No. – 10905495

Department of Management

Lovely Professional UniversityPhagwara, Punjab-144001

BONAFIDE CERTIFICATE

This is to certify that this report entitled “comparative study in kotak life insurance”

“PATHANKOT” at KOTAK MAHINDRA LIFE INSURANCE., PATHANKOT

submitted to the Lovely Professional university, Phagwara for the fulfillment of the

requirements for the degree of POST GRADUATE PROGRAMME IN MNGT. This is

the bonafide record of the work carried by Mr.Bakshinder pal singh, Regd. No. -

10905495 under the supervision and guidance of Mr. Jarnail singh

CERTIFIED

Jarnail singh

Guide name HOD

DECLARATION

I am Bakshinder pal singh, a student of Lovely Professional University, Phagwara,

hereby declare that the project entitled “comparative study in kotak life

insurance” at kotak Mahindra life insurance Pathankot is the original work done by

me and the information provided in the study is authentic to the best of my knowledge.

This study report has not been submitted to any other institution or university for the

award or any other degree.

This report is based on my personal opinion hence cannot be referred to legal purpose.

Date: BAKSHINDER PAL SINGH

ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in the success

of any venture. In the present world of competition and success, training is like a bridge

between theoretical and practical working; willingly I prepared this particular Project.

First of all I would like to thank the supreme power, the almighty god, who is the one

who has always guided me to work on the right path of my life.

I express my sincere thanks to Mrs.Neha tikoo & others faculty

members of M.B.A. department, for the valuable suggestion and making this

project a real successful.

I also thanks to Mr. Jarnail singh for his time-to-time guidance and

support in completing the project. I also thank the other staff of Reliance life

insurance who devoted their valuable time by helping me to complete my

project.

Last but not least, my sincere thanks to my parents and friends who

directly or indirectly helped me to bring this project into the final shape.

BAKSHINDER PAL SINGH

DATE:

PREFACE

Each and every theory taught in the academic institution can only become fruitful if used

practically.

In the present era, market is very competitive and very complicated, so to study the

consumer behavior is an integral part.

My entire project report and findings depends upon the consumer behavior while

recruiting life advisors and selling policies and the current trends in the life insurance

sector.

This practical knowledge has made me one thing clear in my mind that to keep you in

zenith of best one has to keep him or her changing with time.

I shall be amply rewarded if the project report proves helpful in the development of

genuine marketing strategy of the company.

TABLE OF CONTENTS

1. INSURANCE SECTOR

About Insurance Industry

Insurance Market in India

Concept of Insurance

Life Insurance Products

2. COMPANY PROFILE

Kotak Mahindra Group

Kotak Mahindra Old Mutual Life Insurance Ltd.

Old Mutual plc.

Synergies of Partnership

Management

Company Products

3. RESEARCH METHODOLOGY

Methodology

Problems

Objectives

Data Collection Method

4. PROJECT PROFILE

Process for recruitment

Career Progression

Market Share

Comparative Study

Recruiting Life Advisors

Analysis

Suggestions and Recommendations

SWOT Analysis

5. APPENDIX QUESTIONNAIRE

6. CONCLUSION

7. BIBLIOGRAPHY

INSURANCE SECTOR

Many may not be aware that the life insurance industry of India is as old as it is in any

other part of the world. The first Indian life insurance was The Oriental Life Insurance

Company, which was started in India in 1818 at Kolkata. A number of players (about 250

in life and about 100 in non-life) mainly with regional focus flourished all across the

country. However the government i8n India, concerned by the unethical standards

adopted by some players against the consumers, nationalized the industry in two phases

in 1956(life) and in 1972 (non-life). The insurance business of the country was then

brought under two public sector companies, Life Insurance Corporation of India (LIC)

and General Insurance Corporation of India (GIC).

In line with the economic reforms that where ushered in India in early nineties, the

Government set up a committee on reforms (properly called Malhotra Committee) in

April 1993 to suggest reforms in the insurance sector. The Committee recommended

throwing open the sector to private players to usher in competition and bring more choice

to consumer. The objective was to improve the penetration of insurance as a percentage

of GDP, which remain low in India even compare to some developing countries in Asia.

Reforms were initiated with the passage of Insurance Regulatory and Development

Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority,

which has put in place regulation in line with global norms. So far in the private sector,

12 life insurance companies and 9 general insurance companies have been registered.

INSURANCE MARKET IN INDIA

By any yardstick, India, with about 200 million middle class households, presents a huge

untapped potential for players in the insurance industry. Saturation of market in many

developed economies has made the Indian market even more attractive for global

insurance majors.

With the per capita income in India expected to grow at over 6% for the next ten years

and in improvement in awareness levels the demand for insurance is expected to grow at

a attractive rate in India. An independent consulting company, the Monitor Group has

estimated that the life insurance market will grow from Rs.218billion in 1998 to Rs.1003

billion by 2008(a compounded annual growth of 16.5%).

WINDS OF CHANGE

Reforms have marked the entry of the many of the global majors into the Indian market

in the forms of joint venture with Indian companies. Some of the key names are OLD

MUTUAL, AIG, NEWYORK LIFE, ALLIANZ, PRUDENTIAL, STANDARD LIFE,

SUN LIFE. The entry of new private players has rejuvenated the erstwhile monopoly

player LIC, which has respondent to the competition in an admirable fashion by

launching new products and improving service standards.

Factors that brought winds of change due to privatization:

MARKET EXPANSION:

There has been an overall expansion in the market. This has been possible due to

improved awareness levels thanks to the large number of advertising campaigns launched

by all the players. The scope of expansion is still unlimited as virtually all the players are

concentrating on large cities and towns-except by LIC to an extent there was no

significant attempt to tap the rural markets but the private companies are also targeting

the untapped rural market like Kotak Life Insurance has a policy for the rural marketers

known as Kotak Gramin Bima Yojana.

NEW PRODUCT OFFERINGS:

There has been a plethora of new and innovative products offered by the new players,

mainly from the stable of their international partners. Customers have tremendous choice

from a large variety of products from pure term (risk) insurance to unit-linked investment

products. Customers are offered unbundled products with a variety of benefits as riders

from which they can choose. More customers are buying products and services based on

the true needs and not just traditional money-back policies, which is not considered very

appropriate for long-term protection and savings. However, there are still some key new

products yet to be introduced.

CUSTOMER SERVICE:

Not unexpectedly, this was one area that witnessed the most significant change with the

entry of new players. There is an attempt to bring in international best practice in service

and operational efficiency through use of latest technologies. Advice and need based

selling is emerging through much better trained sales force and advisors. There is

improvement in response and turnaround times in specific areas such as delivery of first

policy receipt, policy document, premium notice, final maturity payment, settlement of

claims etc. However, there is a long way to go and various customer surveys indicate that

the standards are still below customer4expectation levels.

CHANNELS OF DISTRIBUTION:

Till two years back, the only mode of distribution of life insurance products was through

Agents. While agents continue to be the predominant distribution channel, today a

number of innovative alternative channels are being offered to consumers. Some of them

are banc assurance, brokers, Internet and direct marketing. Though it is too early to

predict, the wide spread of bank branch network in India could lead to banc assurance

emerging as a significant distribution mechanism.

STRATEGIC ALTERNATIVES:

If any one analyses the history of the growth of insurance since reforms, it is marked by

all- round growth of all players. More or less all players (including the market leader

LIC) have aggressively recruited and trained advisors, appointed agents, launched new

products, improved customer service standards and revamped/expanded their distribution

networks. If at all there are major difference between players it was only in time lag in

launching of service. Every player will like the customers to believe that its service

standards are the best or that its agents are the most informed and ethical, but it is

debatable whether there are any significant differences. In other words, each company is

trying to be “everything to everybody”.

Our argument is that the strategy of being everything to everybody is risky. Some players

justify the above strategy on the basis that the Indian market is huge and it can

accommodate everybody. Still, in a market where it is difficult to distinguish one self

sufficiently on services or on any other parameter to be able to change a premium, it will

lead to unmitigated price competition to the detriment of all players. One may achieve

sales turnover, but margins and profitability will suffer severely. In the insurance industry

where large amounts of capital are required, this is risky.

VARIETY-BASED POSITIONING:

This type of positioning is based on varieties in products and services rather than

customer segments. It is a sensible strategy for those companies who have distinctive

advantages or strengths in offering certain products and services. In the insurance

industry too, it is possible to achieve a unique position by focusing on certain category of

products. Through its superior fund management capabilities, the insurance company can

deliver better returns in investment-linked products and thereby carve for itself a

leadership position in this segment.

Then there is the entire category of pension products, which is widely touted to have

immense growth potential in India due to imminent pension reforms. It is possible to

achieve a profitable positioning by focusing and excelling in only pension products.

Needs-based Positioning

This is the most commonly understood positioning and is based on the differing needs of

different groups of consumers. This can be done successfully if a company has a unique

strength to serve a group of customer needs than others.

The insurance needs of customers vary significantly for different groups of customers.

The insurance needs of young family with small children will be quite different from that

of a family in which the income-earner is close to retirement. However, in India most of

the life insurance companies have a wide variety of products tailored for different

customer needs and there is no company focusing on a particular customer need. An

example would be a life insurance company that focuses only on High Net-worth

Individuals (HNIs). The needs of HNIs would be quite different from those of general

consumer and would require an entirely different mix right from the type of products

offered and the way they are distributed, to the promotion methods employed.

Access-based Positioning

Positioning of customers can also be done by the way they are accessible. That is

different group of customers may be accessible in different ways even through they may

have similar needs. Access is typically a function of customer geography or customer

scale. There is excellent opportunity in the insurance industry to employ access-based

positioning by targeting the rural insurance sector. The rural market for life insurance is

very different from the urban sector in term of needs, income level and distribution,

penetration of media and so on. Contrary to common perception it is a big opportunity as

emphasized repeatedly by such eminent strategists like C.K.Prahlad. Rural market can be

highly profitable position if one is able to carefully plan and tailor an entire set of low-

cost activities of advertising, distribution and product design etc. to successfully exploit

the potential.

CONCEPT OF INSURANCE

The business of insurance is related to the protection of the economic value of assets.

Every asset has a value and the value may be lost or reduced through accidental

occurrences. Such possible occurrences are called ‘Perils’. Fire, floods, breakdowns, etc

are perils. If such perils can cause damage to the assets, the asset is said to be exposed to

risk. Perils are events whereas risks are consequential losses or damages.

Insurance is a basically a sharing device. The losses to assets resulting from natural

calamities like fire, flood, earthquake, accidents, etc. are met out of the common poll

contributed by large number of persons who exposed to similar risks. This contribution of

many is used to pay the losses suffered by unfortunate few. However the basic principle

is that loss should occur as a result of natural calamities or unexpected events, which are

beyond the human control. Secondly insured person should not make any gains out of the

insurance.

Insurance business can be divided into two broad categories, life and non-life. Life

insurance is concerned with making provision for a specific happening to the individual,

such as death where as non-life (general insurance) is more commonly concerned with

the provision for a specific event, which affects a property, such as fire, flood, theft etc.

Sr. No Subject LIFE INSURANCE NON-LIFE INSURANCE1 Subject matter of

InsuranceLife Property, Building,

Ship, Cargo etc.2 Principle

of Indemnity

Difficult to assess. So we relate it to earning capacity.

Contract of Indemnity because insurer indemnifies the loss.

3 Principle of Applicable at the time of At the time of entering

Insurable Interest

entering into the contract.

into the contract and at the time of claim.

Life insurance is universally acknowledged to be an institution, which eliminates ‘risk’,

substituting certainty for uncertainty and comes to the timely aid of the family in the

unfortunate event of death of the breadwinner. By large, life insurance is civilization’s

partial solution to the problem caused by death. Life insurance, in short is concerned with

two hazards that stand across the life path of every person that of dying permanently,

leaving a dependent family to tend for itself and that of living to old age without visible

means of support.

Special features of Life Insurance

An individual can save a part of his income in various ways. But taking an insurance

policy has certain additional advantages for which it is considered superior to other type

of savings.

It is superior to a traditional saving vehicle.

It encourages saving and forces thrift.

It provides easy settlement and protection against creditors.

It helps to achieve the purpose of Life Assured.

It can be encashed and facilities quick borrowing.

Tax Relief

Acts as a Social Security Tool.

Helps in Economic Development.

LIFE INSURANCE PRODUCTS

1. TERM INSURANCE

Such a policy plan cover per a specified period or term only, and may also be describe as

temporary insurance .the policy benefit is only payable if:

a. The insured person died during the specified period, or term; and time

b. The policy is valid (in force) at the time of death

This form of cover us an exception to the general rule that a life insurance always results

in a claim. Indeed, in the great maturity of the cases, term insurance runs their course

without a claim. For this reason, it is the cheapest form of cover available (but, of course,

it limitation must be understood)

In theory, the term could be for any period of time, even a few hours to cover an aircraft

flight, for example. In practice it is rare to find a term insurance for a period of less then

one year. A term insurance policy is therefore a pure risk cover for a specified period of

time. This means the sum assured is payable only is the policy holder dies with the policy

term for instance, if a person buys Rs. 2 lacks policy for fifteen year, his family is entitled

to the money if he dies within the fifteen year period.

Level Term Insurance

This policy plan is perhaps the most popular term insurance. It involves a level

(unchanging) premium and benefit through out the policy period. In the event of death

during the terms, the sum assured of the policy is payable. If the term is for more than

one year, the renewal premium is the same each year.

Popular largely because of its simplicity, this is as useful answer to all temporary need

which neither increases nor decreases to any significant extent over the period of tine

involved (perhaps a loan which is not being repaid by installments).

Renewable/Convertible Term Insurance

Renewable term insurance: The key point in this type of term insurance is that the right

to renew the policy without submitting fresh evidence of insurability (health) and the

premium for the further period is increase to reflect the increase age of the life insured.

(The new premium is based on the attained age).

As there is no under writing when the plans is renewed, the risk to the insurer will

increase as and when policies are renewed. Because of this, most insurers apply certain

limitations on the policy, such as:

a. Renewals may only be for equal or smaller sums assured.

b. The number of renewals permitted may be restricted (e.g three times)

c. Premium rates may be higher than for non-renewable polices.

Convertible term insurance: Such a plan includes a conversion privilege, which

gives the proposer the right to convert (change) the policy to a permanent (non term-

typically an endowment) plan without evidence of insurability (health). If this privilege is

exercised, the premium for the new plan must be the standard rate for such a plan and the

attained age (actual age on conversion of policy) of the life insured.

Again, because there is no underwriting in conversion, the insurer will again typically

apply certain restrictions.

a. Conversion may not be possible beyond a certain age (say 55 or 65).

b. Conversion may not be possible after the policy has been enforced for say 50% of

its specified term (or a specified number of years).

c. The sum assured of the new plan will be limited to that for the term insurance

(probably less after the terms policy has been in force for some specified time.

Term Assurance with return of premiums

Under term assurance plan, um assured is payable in the event of death of the life assured

during the selected term and the premiums collected are not refunded.

However, a variation of this plan can be devised by refunding all the premiums collected

if the life assured survives the term.

2. ENDOWMENT POLICY

The most popular plan of life insurance, which is a very fine combination of term

assurance and endowment in equal amounts, is the endowment policy. An endowment

plans provide for the payment of the sum assured at the end of a specified term or earlier

death. Should the insured person survive the term, the policy is said to mature. Thus, a

claim may arise under such a plan either by death or by maturity. A pure endowment is

policy is therefore a form of financial saving, whereby the person covered remains alive

beyond the tenure of the policy, he gets back the sum assured with some other

investments benefits.

In addition to the basic policy, insurers offer various benefits such as double endowment

and marriage\education endowment plans. The cost of such policy is slightly higher but

worth its value.

.Money Back Plan:

It is a combination of whole life and endowment type plans. Money back plans are of

special interest to proposers who want periodical payments in which a percentage of sum

assured is paid to the life assured as a survival benefit on surviving 5yrs, 10yrs, 15yrs or

20yrs depending on the term initially chosen. In the event of death, within the term full

sum assured is paid without deducting survival benefit already paid. However no loans

are granted under this plan. The money back plan is a typical example of an interest

sensitive product where a lump sum is paid periodically without affecting the amount of

insurance cover.

3. WHOLE LIFE POLICY

The premiums under this plan are payable from the date of commencement to death of

the date of the life assured, and the sum assured is payable by the insurer on death. There

are, however, minor variation of this product where insurers accept premiums only upto

the age of 80 to 85

And in certain other cases the premiums are payable for a selected terms (limited

payment whole life policy)

Convertible Whole Life Policy:

This is basically Whole Life Policy with limited period of payment of premiums. The

policyholder has a option to convert the into an endowment assurance generally on expiry

of five years. It is useful to a person:

a. Of moderate salary when the plan is first purchased.

b. Requires life cover over a long period.

c. Who may wish to switch to a saving plan at some point in the future.

4. ANNUITIES

Annuities start where life insurance ends. It is called the reverse of life insurance. In

annuity contracts, a person agrees to pay to the insurer a specified capital amount in lump

sum or in installments in returns for a promise from the insurer to make a series of

payment to him so long as he lives. Theoretically, under a life insurance contract, the

insurer starts paying upon the death of the insured and under an annuity contract, the

insurer stops paying upon death of the annuitant.

In actual practice however, there are many variation of the annuity contribution. The risk

that is sought to be covered under annuity contracts is of living too long.

Annuity may be defined as a series of periodic payment to an annuitant (the person

receiving the benefit), for life on other agreed terms or conditions, in returns for a single

payment or series of payments (consideration account).

Annuity fall into three category- Immediate Annuity, Annuity Due and Deferred Annuity:

a. Immediate Annuity: It is purchased with a single premium called purchases

price. The annuity payment start immediate after the expiry of the designated

period namely a month, quarter, a half-year or a year from the date of purchase.

b. Annuity Due: The annuity installments are paid at the beginning of the term/

period instead of being paid at the end of the term.

5. UNIT LINKED PLAN

Unit Linked Plans are fundamentally different from with or without profit plans.

The value of the plans (the amount paid on death or maturity) is directly link with

the value of the fund. A unit could be define as a function of the fund, which the

unit holder joints. It has face value, say Rs. 10 per unit.

COMPANY PROFILE

THE KOTAK MAHINDRA GROUP

Kotak Mahindra is one of India's leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial banking, to

stock broking, to mutual funds, to life insurance, to investment banking, the group caters

to the financial needs of individuals and corporate.

The group has a net worth of over Rs. 2,500 crore, employs around 6,700 people in its

various businesses and has a distribution network of branches, franchisees, representative

offices and satellite offices across 250 cities and towns in India and offices in New York,

London, Dubai and Mauritius. The Group services over 1.6 million customer accounts

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance

Limited. Uday Kotak, Sidney A. A. Pinto and Kotak & Company promoted this

company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and

that's when the company changed its name to Kotak Mahindra Finance Limited. It is the

India’s first NBFC to convert into a bank and is also AAA rated by credit agencies.

.1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting

1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market

1990 The Auto Finance division is started

1991 The Investment Banking Division is started. Takes over FICOM, one of India’s

largest financial retail marketing networks

1992 Enters the Funds Syndication sector

1995 Brokerage and Distribution businesses incorporated into a separate company -

Kotak Securities. Investment Banking division incorporated into a separate

company - Kotak Mahindra Capital Company

1996 The Auto Finance Business is hived off into a separate company - Kotak

Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited).

Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra

Limited, for financing Ford vehicles. The launch of Matrix Information Services

Limited marks the Group’s entry into information distribution.

1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset

Management Company.

2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.

Kotak Securities launches its on-line broking site (now

www.kotaksecurities.com). Commencement of private equity activity through

setting up of Kotak Mahindra Venture Capital Fund.

2001 Matrix sold to Friday Corporation

Launches Insurance Services

2003 Kotak Mahindra Finance Ltd. converts to a commercial bank – the first Indian

company to do so.

2004 Launches India Growth Fund, a private equity fund.

2005 Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime

(formerly known as Kotak Mahindra Primus Limited) and sells Ford credit

Kotak Mahindra.

Launches a real estate fund

Steady and confident journey to growth and success.

KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LTD.

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak

Mahindra Bank Ltd. (74%) and Old Mutual plc (26%). It started operating in May 2001.

It has infused a total capital of Rs. 254 cr till date.

A company that combines its international strengths and local advantages to offer its

customers a wide range of innovative life insurance products, helping them takes

important financial decisions at every stage in life and stays financially independent. 

Kotak Life Insurance total premium income was Rs. 621.9 crore in FY06 (Rs. 466.2 crore

in FY05). First year premium income adjusted for single premium at 1/10th up 82% to

Rs. 351.0 crore.

Vision and Approach

Aspiration: To be among the top few private players with substantial market

presence.

To be achieved through

- Well-trained and quality advisor.

- Consultative selling process

- Complete Product range

- High technology support

- Superior customer service and benefit.

OLD MUTUAL plc

Old Mutual was established 160 years ago and has 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.

As at 31 March 2006, Funds under Management were £248bn (19% in South Africa, 57%

in the United States, 21% in Skandia and 3% in Old Mutual UK and Rest of World). 

First quarter sales on an Annual Premium Equivalent (APE) basis were £395bn (22% in

South Africa, 15% in the United States, 62% in Skandia and 1% in Old Mutual UK and

Rest of World).

Old Mutual has made significant progress through continued development of core

business and through focused acquisitions has established a strong foundation upon

which to further build the business for customer and shareholder value in the years ahead.

The company has the ability to cater to a variety of consumer market segment and offers

a comprehensive and innovative product range catering to all income groups.

SYNERGIES OF THE PATRNERSHIP

- Investment acumen. - Rich experience in

insurance & PPS products.

- Keen understanding of - Product innovation.the needs and psyche

of Indian investors.

- Leading financial - Understanding of service brand. international financial

markets.

Together, we bring

- Wide range of Innovative products. - Prudent money management. - Well trained advisors to deliver

solutions for You

MANAGEMENT

Mr. Gaurang Shah (Managing Director)

Mr. Gaurang Shah is a Chartered Accountant and a Cost and Works Accountant. He has

also done his Company Secretary ship from the Institute of Company Secretaries of India.

Mr. Gaurang Shah has been with the Kotak Group for the past eight years where he has

held different positions of great responsibility and juggled multiple tasks effectively. His

cumulative experience, primarily in financial services, stands at over 21 years, several of

those in building the retail finance business. At Kotak Life Insurance, Mr. Shah will

focus on developing new lines of businesses and leveraging the company's existing

competencies and network to steer Kotak Life Insurance on its ongoing growth path with

even greater thrust. Mr. Shah has a commendable expertise in managing a large number

of employees.

Mr. Shah has been previously associated with Kotak Mahindra Primus since its inception

and has contributed towards its growth to become an Rs.2000 Cr plus business. Before

coming to Kotak Life Insurance, Gaurang Shah was Group Head of Retail Assets for

Kotak Mahindra Bank. The Retail Assets include commercial vehicles, personal loans,

structured products, car loans and loans against shares.

Mr. G Murlidhar (Chief Financial Officer)

Mr. Murlidhar is a Chief Financial Officer and Company Secretary of Kotak Life

Insurance. Mr. Murlidhar is an associate member of the Institute of Chartered

Accountants of India, an associate member of the Institute Of Company Secretaries of

India, and graduate member of the Institute of Cost & Works Accountants of India. Mr.

Murlidhar possesses over 20-year work experience and has earlier worked with National

Dairy Development Board (NDDB), MDS Switchgear Limited and Nicholas Piramal

India Limited and Ion Exchange Ltd. Prior to Kotak Life Insurance, he held the position

of VP-Finance at Gujarat Glass Ltd.

As Chief Financial Officer at Kotak Life Insurance, he oversees all aspects of Finance

including Operations, Regulatory, Internal Control, Finance, Accounts and Treasury.

Mr. Nandip Vaidya (Vice President - Sales)

Mr. Nandip Vaidya is the Vice President - Sales at Kotak Life Insurance. Mr. Vaidya

holds a B.Tech (Mechanical) degree from IIT Mumbai and has also completed his Post

Graduate Diploma in Business Management from IIM-Ahmedabad. He started his career

as a Management Consultant at A.F. Fergusson. After completing 5 years there, he

moved onto various positions within the Kotak Mahindra group starting from Car

Financing (Kotak Mahindra Finance Ltd) to Stock broking & Distribution of investment

products/ Mutual funds (Kotak Securities). Mr. Vaidya set up the private banking

business and private equity fund for the Kotak group.

Mr. Arun Patil (Vice President - Sales & Management Development)

Mr. Arun Patil is the Vice President - Sales & Management Development with Kotak

Life Insurance. A post- graduate with Law qualifications, he has over 25 years'

experience in life insurance industry. He joined as a Direct Recruit Officer in L.I.C. and

worked in various departments such as Sales, Marketing, I.T. etc. all across the country.

On foreign deputation to Fiji Islands for 5 years, Mr. Patil substantially increased the

market-share of LIC in competitive environment. After heading LIC's premier Mumbai

Division, he joined the then ICICI Ltd. as a member of the insurance venture team and

later worked for ICICI Prudential Life Insurance Company as Head of Sales

Development. Mr. Patil presently has responsibilities to enhance the skills, knowledge,

productivity, and professionalism of the sales-force, with special emphasis on developing

all Managers to enhance their competencies, capabilities & managerial effectiveness.

Mr. Eksteen de Waal (Head Sales Training)

Mr. Eksteen de Waal is the Sales Training Head of Kotak Life Insurance. Eksteen is a

post- graduate in Law and practiced Law as well as lectured at South African Universities

before joining the Life Insurance Industry. He has over 23 years' experience in the Life

Insurance Industry. He sold life assurance for some time, served as Head of Old Mutual's

Training Division, Head of Old Mutual's Trust Company, and Project Leader for

implementing a new Sales Process with McKinsey's, Head of Conventions and

Motivation, Head of Agency Marketing and finally Head of Bancassurance with Old

Mutual Bank. In addition he played a role in the wider Industry. Insurance.

COMPANY PRODUCTS

Kotak Life Insurance has 20 products till date. Basically these products are divided into

three main categories i.e. Group, Individual and rural.

In Individual there is 13 products, in Group there is 6 products and in rural there is one

plan. The plans are as follows.

INDIVIDUAL GROUP

Kotak Term Plan Employee Benefits

Kotak Preferred Term Plan Kotak Term Grouplan

Kotak Money Back Plan Kotak Credit-Term Grouplan

Kotak Child Advantage Plan Kotak Complete Cover Grouplan

Kotak Endowment Plan Kotak Gratuity Grouplan

Kotak Capital Multiplier Plan Kotak Superannuation Grouplan

Kotak Retirement Income Plan

Kotak Retirement Income Plan(Unit Linked)

Kotak Safe Investment Plan II

Kotak Flexi Plan

Kotak Easy Growth Plan

Kotak Premium Return Plan

Riders

RURAL: Kotak Gramin Bima Yojana

Among these 20 products Kotak Flexi Plan, Kotak Capital Multiplier Plan and

Kotak Safe Investment Plan II are very important and are discussed below.

Kotak Capital Multiplier Plan

“A Plan that multiplies your capital while covering your life.”

Kotak Capital Multiplier Plan is the only plan of its kind that allows enjoying

returns even beyond maturity. It can be looked as a super endowment plan that offers

bonuses every year, offers the facility to increase investment and also offers withdraw

money, as and when want to, over a 15-year maturity. During the entire term of the

policy, an additional life cover of 10%, which is over and above the life cover opted for.

This plan is best suited for an investment plan for children, during retirement and from to

time to have extra cash. This plan is designed to function in two phases; the premium

payment period also called the build-up phase and the post-maturity also called the

withdrawal phase.

The facility of lump sum injections provides to invest surplus funds at anytime. It helps to

augment the savings in the build-up phase, in addition to the regular premiums. A

Supplementary Accumulation Account is created to hold these lump sums. Funds in

Supplementary Accumulation Account continue to earn bonus at the same rate as that of

the Accumulation Account.

Key Features

In the build-up phase there is an additional life cover of 10% of the basic sum

assured and the Critical Illness benefit, if opted for.

This is a participating plan and entitled to the higher of the basic sum assured or

the Accumulation Account on maturity along with the balance in the

Supplementary Accumulation Account.

During the build-up phase in the event of unfortunate death, the beneficiary would

get the higher of the basic sum assured (less premium due but not paid) or

Accumulation Account. In addition, 10% of the basic sum assured and the balance

in the Supplementary Accumulation Account will also be paid.

During the withdrawal phase in the event of unfortunate death, the beneficiary

would get 10% of the basic sum assured and the balance in the Accumulation

Account (into which the Supplementary Accumulation Account is added).

In case any premium payment is missed, Automatic Cover Maintenance facility

will ensure that insurance cover is in force. This facility is available after 3

completed policy years.

A customer can avail a loan facility from Kotak Life Insurance against the policy.

An early surrender option due to medical reasons is possible and there is no

surrender charge applicable.

The customers can also avail the following riders.

- Term/Preferred Term Benefit.

- Accidental Death Benefit.

- Permanent Disability benefit.

- Critical Illness Benefit.

- Life Guardian Benefit.

- Accidental Disability Guardian Benefit

Advantages

Freedom of extending the policy term beyond the maturity dates.

Continue to earn tax-free returns after maturity.

Combine the benefit of insurance and long-term investment.

Earn bonuses on the plan.

Make lump injections.

Can be adopted as a pension plan where regular tax- free benefit can be received.

Tax Benefits

Section 80c, 10(10D) of Income Tax Act, 1961 would apply. Premiums paid for critical

Illness Benefit qualify for a deduction under Section 80D.

Eligibility

Entry Age Min 18 years, Max 60 years

Term Min 5 years, Max 30 years

Maturity Age Max 65 years

Regular Premium Min Rs. 10,000 annually

Lump sum Injections Min Rs. 10,000 Max 25% of basic sum assured

General Exclusion

In case of life insured commits suicide during the first year of the plan, the beneficiary

would not receive any of the benefits outlined in the plan.

Prohibition of Rebates

Section 41 of the Insurance Act, 1938 states that:-

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 as 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.

Any person making default in complying with the provision of this section shall

be punishable with fine, which may extend to Rs. 500.

Kotak Flexi Plan

“Your Finances. The way you need it.”

Kotak Flexi Plan is a unit linked plan. It’s objective is to provide the benefits of

separation of insurance cover and investments and the flexibility to increase or decrease

either one of them. The unit linked plans comes with the option of investing in six

professionally managed funds allowing to allocate investment in a combination of one or

more funds and switch between them as many times as wished.

As a person goes through his life his needs vary and so does the need to stay insured. A

new dream for instance, a new house brings along with the burden of a home loan,

making it important to increase the insurance cover to protect the loved ones. Similarly,

on occasions of dream fulfillment he may wish to decrease the risk cover.

Through the unique concept of unbundling, Kotak Flexi Plan separates the money into

investment and insurance accounts and allows selecting different sum assured for the

sum. The sum assured linked to insurance account is the investment sum assured or

SA1 and the premium is known as P1 and the premium that goes the insurance accounts

to keep life cover is insurance premium and is known as P2. The sum assured linked to

insurance account is the insurance sum assured or SA2.

Key Features

Being a non-participating plan on maturity the insured will get SA1 (less

adjustment for withdrawals) or market value of units in Main Account, whichever

is higher. Plus if a lump sum is invested the insured will get the market value of

units in Supplementary Account.

In the event of unfortunate death the beneficiary would receive the SA2 plus

market value of units in Main Account and Supplementary Account.

Guaranteed SA1 or market value of units in Main Account, whichever is higher

after maturity.

In case any premium payment is missed, Automatic Cover Maintenance facility

will ensure that insurance cover is in force. This facility is available after 3

completed policy years.

Facility to switch between funds which is tax-free.

The customers can also avail the following riders.

- Accidental Death Benefit.

- Permanent Disability benefit.

- Critical Illness Benefit.

- Life Guardian Benefit.

- Accidental Disability Guardian Benefit.

Advantages

Unbundle insurance and investment component with flexibility to modify the

same.

When SA2 selected is Rs. 50,00, there would be no medical tests.

Enjoyment of unlimited upside from capital markets with a downside protection

guarantee.

Adjusted insurance cover as per the changing needs.

Flexibility in premium payment

Tax-free switching across fund categories.

Easy exit options.

Tax Benefits

Section 80c, 10(10D) of Income Tax Act, 1961 would apply. Premiums paid for critical

Illness Benefit qualify for a deduction under Section 80D.

Eligibility

Entry Age of life to be insured Min 14 years, Max 65 years

Term Min 10 years, Max 30 years

Maturity Age Min 24 years, Max 75 years

P1 Min Rs. 15,000 annually

SA2 Min Rs. 50,000, Max subject to underwriting

Lump Sum Injection/ Partial Withdrawals

Min Rs. 10,000

Charges

Premium Paying Term Year 1 Year 2 Onwards

3 years 28% 4.375%

5,7 years 42% 4.375%

10 to 14 years 56% 4.375%

15 years or more 65% 4.375%

Prohibition of Rebates Section 41 of the Insurance Act,

1938 states that:-

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 as 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.

Any person making default in complying with the provision of this section

shall be punishable with fine, which may extend to Rs. 500.

KOTAK Safe Investment Plan II

“Stock market gains with your investment protected”

Kotak Safe Investment Plan II is a unit linked plan that combines the benefits of

insurance and capital markets returns into one. This plan shows the true reflection of the

company’s essence: innovation that will benefit investor.

This plan offers the option of investing in six professionally managed funds. What makes

in investing in Kotak Safe Investment Plan II truly unique is that the investor enjoys a

sum assured guarantee, even on the Growth Fund. So if the market value of the units is

higher, the investor can enjoy that; while in a bear market the investment is protected and

still have the sum assured guarantee.

It is help to those people who have never invested in the equity market, for the fear of

loss of capital. It is also helpful to for a long-time player in the debt market. It has been

proven worldwide that over long term equity tends to outperform the debt market in

terms of return. For an aggressive investor in equity he could reduce risk by investing a

portion of funds into the equity market.

Key Features

The capital markets offer a spectrum of investment option like Gilt Fund and for

aggressive investors there is a Growth Fund.

Besides regular premiums, whenever the investor have excess money, he can

invest it by way of lump sum injections, without any commitment to bring them

in the coming year.

On of maturity or the event of unfortunate death, the beneficiary would get the

sum assured (less adjustment for withdrawals) or market value of units in the

Main Account whichever is higher. Plus, if the investor has invested any lump

sum, then he would get back the market value of units in the Supplementary

Account.

This plan also allows for early exit options through partial withdrawal of funds or

complete surrender of policy.

For the people who wish to pay off all premiums over a short period of time,

instead of full term, it has the Limited Payment Premium option.

In case any premium payment is missed, Automatic Cover Maintenance facility

will ensure that insurance cover is in force. This facility is available after 3

completed policy years.

A customer can avail a loan facility from Kotak Life Insurance against the policy.

Facility to switch between funds which is tax-free.

The customers can also avail the following riders.

- Term/Preferred Term Benefit.

- Accidental Death Benefit.

- Permanent Disability benefit.

- Critical Illness Benefit.

- Life Guardian Benefit.

- Accidental Disability Guardian Benefit

Advantages

Enjoyment of unlimited upside from capital markets with a downside protection

guarantee.

Flexibility in premium payment: Limited Premium Payment option and full term

payment option.

Tax-free switching across fund categories.

Easy exit options.

Increase contribution at will by way of lump sum.

Tax Benefits

Section 80c, 10(10D) of Income Tax Act, 1961 would apply. Premiums paid for critical

Illness Benefit qualify for a deduction under Section 80D.

Eligibility

Entry Age Min 18 years, Max 65 years

Term Min 10 years, Max 30 years

Maturity Age Max 75 years

Regular Premium Min Rs. 15,000 annually

Limited Premium Payment Min Rs. 50,000

Lump Sum Injections/ Partial

Withdrawals

Min Rs. 10,000

Charges (Initial)

Premium Paying Term Year 1

Year 1 14%

Year 2 onwards 3.5%

Charges (underwriting)

Age of life insured

(years)

Charges before the cutoff

sum assured

Charges after the cutoff

sum assured

18-35 0.20% 0.10%

36-45 0.30% 0.14%

46-59 0.40% 0.18%

60+ 0.60% 0.26%

General Exclusion

In case of life insured commits suicide during the first year of the plan, the beneficiary

would not receive any of the benefits outlined in the plan.

Prohibition of Rebates

Section 41 of the Insurance Act, 1938 states that:-

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 as 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.

Any person making default in complying with the provision of this section

shall be punishable with fine, which may extend to Rs. 500.

RESEARCH METHODOLOGY

METHODOLOGY

Research design provides a systematic method of defining the problem and the research

objectives, developing the research plan, implanting the research plan and presenting the

findings. Thus marketing research process can be classified into five stages.

1. DEFINING THE PROBLEM/ THE RESEARCH OBJECTIVE

2. DEVELOPING THE RESEARCH PLAN

3. IMPLIMENTING THE RESEARCH PLAN

4. COLLECTING AND ANALYSING OF DATA

5. INTERPRETING AND REPORTING RESULT

Research is a scientific and systematic search for pertinent information on a specific

topic. Research may be defined as a document prose work. Unless it is understood in its

right spirit, it can’t be undertaken with success.

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim is to find out the truth which is hidden and which has

not been discovered as yet.

Research methodology includes the overall research design. Research design includes the

decision regarding method of data collection and the whole sampling plan.

Survey method was adopted for this study. The survey was conducted with the help of

questionnaire fieldwork as carried out to collect necessary data; the information thus

gathered constituted primary data. Primary data has been collected from respondents

chosen at random.

Sampling unit : It refers to the individuals who are to be surveyed for the purpose

of research.

Sampling techniques : Data collected and analyzed on the basis of questionnaire

and survey method.

Sampling method : In my study non-probability sampling has been exercised.

Sampling size : Sampling size was approximately 100 end users.

Before embarking on the details, it seems an appropriate way to present a brief overview

of the research process in Flow Chart.

FF- Feed forward F- Feedback

Introduction of the problem

All the Kotak Life insurance products are in the introductory phase, so it is facing entry

barriers due to various circumstances.

Customer awareness about the products is minimum. Customers are not aware

about the policies and their benefits in investing their money in it.

Define research problem & objective.

Review the literature

Formulate hypothesis

Design research

Collect data

Analyses Data

Interpret

FF

FF

F

Mostly the products are new so it will take time to penetrate in the market.

The faith of customers towards private players is minimum.

2. Literature Survey

After formulating the problem, we wrote a brief summery of it. Then we studied some

magazines, journals and also gone through internet where we collect some information,

our college library was of grate help to us to undergo this project. Furthermore, our

industry mentor provided lots of information regarding the completion of our summer

training and report.

3. Development of working hypothesis

As we know that the role of the hypothesis is to guide the researcher by delimiting the

area of research and to keep him on the right track. It sharpens his thinking and focuses

attention on the more important facets of the problem. It also indicates the type of data

required and type of methods of data analysis to be used.

For developing our working hypothesis we discussed with our mentor, colleagues about

the problem.

We studied the magazines and took the help of Internet.

4. Preparing the research design

Preparing the research design is very useful for any research as it provides maximum

information. The function of research is to provide for the collection of the relevant

evidence with minimal expenditure of efforts, time and money. Research design

constitutes the blueprint for the collection, measurement and analysis of data.

We know that there are three types of research design. They are

Exploratory research design.

Descriptive and diagnostic research design.

Hypothesis-testing design.

In our study we followed exploratory research design, which involves original field

interviews with interested parties and individuals with a view to secure greater insight

into the practical aspect of the problem.

5. Determining sample design

Determining of sample design is very useful of research method because it saves time,

money and energy, as we know that there will be different types of sample designs are

available. Those important sample designs are: -

Deliberate sampling

Sample random sampling

Systematic sampling

Stratified sampling

Quota sampling

Cluster sampling and area sampling

Multistage sampling

Sequential sampling

In my survey I selected simple random sampling and area sampling. In my project my

key area was Delhi and Ghaziabad. I covered some shopping malls and market in Delhi

and Ghaziabad. The key areas were Vasundhara, Vaisahili, Indrapuram, Patel Nagar and

Raj Nagar in Ghaziabad and South Extension, Bhikaji Cama Place and Safdarjung in

Delhi.

6. Data Collection Methods

Data collection methods are of two types i.e. primary and secondary. The primary data

are those which are collected a fresh and for the first time and the secondary data on the

other hand are those which have already been collected by some one else and which have

already been passed through the statistical process.

So in my project I used both primary method of data collection. The data used in the

research is primary in nature for this we collected the form through personal interview.

7. Analysis of data

This is the very important stage of research. After the data collection was done the

collected data was analyzed with the help of various graphs in order to converge the

specific required information that was meant to be generated by the research. So I did this

analysis part because it provided a clear vision related to KOTAK’s products and to also

understand the exact market condition of OM KOTAK Life Insurance Ltd. Apart from

this with the help of analysis of data we can analyze the strengths and weakness of the

products and can design a new marketing strategy accordingly.

PROBLEMS

The best way of understanding the problem is to discuss with own colleagues or with

those who have some expertise in this field. In an organization the researcher can

seek the help from a guide who is usually a experienced man and has several research

problems in mind. Often, the guide puts the problems in general terms and it is up to

the researcher to narrow it down and phrase the problem in operational term in private

business units. The problem is usually marked by administrative agencies with whom

the researcher discuss as to how the problem originally came about and what

consideration are involved in its possible solution,

By using the above concept throughout the two months project I have faced several

problems but the main problem behind these all problems is that to find out potential

customers and life advisors. This implies that I have to choose advisors those who

have highly good networks with other people. Besides these the jobs, which has to be

performed by a life advisor, will become much easier only when he\she has a good

contact with other.

Some problem that I faced in a regular manner is summarized in the following points.

People never get interested.

People already have a license.

People want to know about product profile.

People do not afford the training period.

People are not interested to invest Rs. 1000/-

People like to have a fixed salary job.

OBJECTIVES

My objective was to increase the customer i.e. influencing customers to take policies

and to recruit good quality life advisor by minimizing the relevant cost and the

question is how to make this relevant kind of customers and recruiting life advisors.

For making this, the required objectives are as follows.

To increase the equity base of OM KOTAK MAHINDRA Life Insurance by

increasing the number of good quality life advisor.

To hold market share and also to increase the competitive edge over others.

Then only Kotak will be able to the position of first rank. Again this is

possible only when the company is recruiting good quality advisor those who

are having much more contact.

To make the advisor believe that that they can enjoy much more benefits as an

advisor by holding his or her current job. The advisor should have an

influencing personality.

So my research objective is to maximize the number of quality advisors with high

potential and a thirst to work in this field so that the company can expand in its wing.

DATA COLLECTION METHOD

Usually we take data of those persons who are the big fish like CA, CFS, ICWA,

MBA, and DOCTORS. But the persons that I targeted were not all this stuffs, but I

went to the persons who were not the big fish like retired personnel, property dealers,

students etc. Beside this I made a entire data base of such persons from my

colleagues, teachers, mentor and my known ones. Basically I contacted with those

persons who had a hunger to earn.

After having all this I started to analyze their income level. Basically for recruiting

life advisors I first saw in them their hunger to earn more and while selling policies I

made a need analyzer for the concerned persons. First of all I tried to fix a

appointment with the persons to meet them. After fixing an appointment I went to

meet them with my industry mentor but later on I went individually. In my case what

I had proceed on behalf of the company, the list of given database exhibit the

following five aspects.

List of all prospect lists.

List of hot calls.

List of warm calls.

List of yet to be converted calls.

List of converted calls.

PROJECT PROFILE

OFFICIAL PROCESS FOR RECRUITMENT

100 Hours of training

Class RoomTraining

On lineTraining

3 Days of Product Training

IRDA Exam

Issue of License

To pass the IRDA exam a minimum of 50% marks is required. On passing the

examination a license is issued. This is a fully commission based job where a Life

Advisor in Kotak Life Insurance can earn 40% of the premium.

CAREER PROGRESSION OF LIFE ADVISOR IN KOTAK LIFE INSURANCE

Member-Kotak Living Legends Galaxy

Head, Training National vice President

Financial Advisor Chief Manager (Training) Regional Vice President

Sr. Financial Consultant Trainer Branch Manager

Financial Consultant Sales Manager

Life Advisor

Insurance Company Market Share (Fig. in %)

LIC 71.44

Bajaj Allianz 7.56

ICICI Prudential 7.35

HDFC Standard Life 2.87

SBI Life 2.31

Birla Sun Life 1.99

Max New York Life` 1.23

TATA AIG 1.29

Aviva 1.14

OM Kotak Mahindra 1.11

ING Vyasa 0.74

Reliance 0.54

MetLife 0.40

Market Share of Life Insurance Companies as of May 2006.

Questionnaire on Comparative StudyThe responses were taken randomly and the entire figures are in percentage.

QUESTIONNAIRE

Name : contact no:Age :

10%

45%35%

10%

less then 25

between 25 and45between 45 and6060 and above

Sex:

Sex Ratio

47%53%

male female

Occupation :

Job profile

20%

30%30%

20%

students

self employed

saleried

Unemployed/retiered

Annual income :

1) Are you insured/ which policy?

(A) Yes – 64 (B) no - 36

Are you insured ?

64%

36%yesno

2. Which brand comes in your mind when thinking of insurance?(A) Yes –27 (B) No – 63

Q: Which brand comes in your mind when thinking of

insurance?

54%27%

8%

5%

3%

3%LIC

ICICI PRU

BAJAJALLIANZAVIVA

KOTAK

OTHERS

3. Most catching insurance advertisement?

Advertisement effetiveness on Brand

41%

29%

9%

11%10% ICICI Pru

HDFC LICAVIVA

others

4. What do u think the brand most publicly?

Most frequent visible brand

26%

10%52%

6% 6% ICICI PruHDFC LICAVIVAothers

5. Through which media source you interact with the insurance brand most?

MEDIA FO ME..

71%

19%2%2% 6% TV

NEWS PAPERRADIOPHONE CALLS

MAILS

6. Have you heard of kotak?

Q: Have you heard of kotak?

89%

11%

yes no

7. Kotak for you is…?

7 8

8 86 2

4 6

2 72 2 1 6

b a n k

li f e i n s u r a n c e

c a r f i n a n c e

in s t i t u t i o n a le q u i t i e sin v e s t m e n tb a n k in gm u t u a l f u n d s

s e c u r i t i e s

8. What motivates you to have a policy?

3 3 %

1 8 %

4 5 %

3 %1 % i n v e s tm e n tr e t i r e m e n tta x s a v i n gd e a th / fa m i ly fu tu r eo th e r s

Q : W h a t M o t iv a te s u t o h a v e a p o l ic y

9. How do you find a insurance policy if you survive the policy?

Wastage not.., Investment

10%

90%

wastage of money

investment

10. What do you feel the reason for India as a least insured country?

Reason for India as a least insured country

20%

33%43%

4% povertylake of awarenessGovt policies

others

ANALYSIS

Market Research for the project was conducted in Delhi and Noida,. It is a descriptive

type of research and sampling for responses is simple random sampling. The sample size

for the research is 100 for comparative analysis .

Till date the customers still believe in government sector i.e. LIC but one thing can also

be kept in mind that till 1999 LIC had a 100% market share. From the survey I have also

found out that a very people are insured and the interesting fact is that the persons who

are insured, very few know about the type of policy they have taken.

Kotak Life Insurance has not yet come into terms with the common people. This may be

because Kotak Life Insurance is new to the market as compared to other Insurance

companies like ICICI Prudential, Allianz Bajaj etc.

While doing the survey some very enthusiastic fact arises this is infant a very good sign

of all insurance companies.

1- People mind set of insurance being only a tool for getting insured has

changed to a great extent.

2- People are considering insurance more as an investment option.

3- Privet players in the sector have started capturing the confidence of

people.

4- Apart from some common facts of unawareness ,success of insurance

industry,

I also found that thougt majority of the people recall privet sector

advertisement but they have not yet succeed to capture the mind of

the customer.

SUGGESTIONS AND RECOMMENDATIONS

The insurance company has to continuously upgrade its products by

continuously assessing the changing needs of the prospects and clients.

There should be a up gradation of the employees by giving them training

from time to time and motivation with the ingredients of professionalism

like ethics, service, compliance and quality.

Better marketing activities are required, so that the awareness can be

increased specially among corporate.

More products, which give assured returns, should be there for the

investors because most of the investors ask about security part of the

policies especially during the time of slow down of the economy and to

tap the investors who at present investing in Fixed Deposit.

Better follow-up activity is required to tap the potential customers.

Tax saving scheme should be modified according to the requirements of

the investors because a lot of persons are saving to reduce their tax

liability.

The policies should be made such that it is viewed as hedging tools to earn

risk-free returns i.e. it should be considered more than just a risk cover.

SWOT ANALYSIS

STRENGTHS

Expertise in product development and training.

Personal consulting for customized policy.

Perceived financial strength of the company.

Persuasiveness of customer service representative to address the problems.

Effective customer loyalty programmes.

Customized policies that cover the specific terminal disease.

Cost effective organization.

WEAKNESSES

Fewer suggestions in terms of precautionary measures for avoiding perils.

No great measures for the awareness of the customers as compared to other

companies.

Are pulled by the engine of powerful brands like TATA AIG and Bajaj Allianz.

OPPORTUNITIES

Relative market potential in not only the rural markets but also the semi-urban

markets.

Better customer services like utmost promptness in issuance of the policy, giving

cheque pick up facilities and not making customers not waiting for months.

Making more loyal customers and attracting other customers with better service.

THREATS

With players like SBI Life and ICICI Prudential spending lot in advertisements, it

may take away the market.

Sometimes more focus on innovative products may affect the main fruitful

products.

Stiff competitions due to new companies are entering day by day.

APPENDIX QUESTIONNAIRE

QUESTIONNAIRE

Name : contact no:Age :

Sex :

Occupation :

Annual income :

1) Are you insured/ which policy?

o No

o YES …………………..

2) Which brand comes in your mind when thinking of insurance?

o LIC

o ICICI PRU.

o BAJAJ ALLIANZ

o AVIAV

o KOTAK

o OTHERS

3).Have you heard of kotak?

o YES

o NO

4).Kotak for you is…?

o BANK

o LIFE INSURANCE

o CAR FINANCE

o INSTITUTIONAL EQUITIES

o INVESTMENYT BANKING

o MUTUAL FUNDS

o KOTAK SECURUTUES LTD

5).What motivates you to have a policy?

o INVESTMENT

o RETIREMENT

o TAX SAVING

o DEATH / FAMILY FUTURE

o OTHERS...Please specify

6).How do you find a insurance policy if you survive the policy?

o WASTAGE OF MONEY

o INVESTMENT

7).Through which media source you interact with the brand most

o TV

o NEWS PAPER

o RADIO

o PHONECALLS

o MAILS

o OTHERS……

8). Most catching insurance advertisement?

o ICICI PRU…

o HDFC STANDARD LIFE

o LIC

o AVIVA

o OTHERS PLEASE SPECIFY

9).What do you feel the reason for India as a least insured country?

o POVERTY

o UNAWARENESS

o GOVT POLICIES

o OTHERS PLEASE SPECIFY

10). What do you perceive about insurance industry?

o IT WILL BOOM IN FUTURE.

o IT WILL FAIL

o CANT SAY

CONCLUSION

After working on this project I got a clear picture of the life insurance industry. Apart

from this as I got to know about KOTAK MAHINDRA OLD MUTUAL LIFE Insurance

Ltd. very closely. The market share is around 1.1% and they have a target of 3% in the

coming year.

With the fact that the Indian economy zooming ahead at a breath-taking GDP growth rate

of 8%, and expected to assume the primary dominance in the global economy along with

China by 2025, according to a Goldman Sachs forecast. Considering this tremendous

potential stuffed in the Indian economy, and coupled with the fact that just 20% of the

total Indian population is insured, which basically amounts to just about 220 million

Indians (assuming the Indian population is 1.1 billion at present).

Therefore there is a huge scope for growth in the insurance business in India.

With the purchasing power of the Indians masses shooting upwards, there is nothing but a

clear ‘yes’ to the question of whether the insurance biggies can make it a time worthwhile

in the Indian sub-continent.

From my entire findings I found out that people are not completely aware about Kotak

Life Insurance. As it is primarily a new company so people don’t have much faith in this

company. The company should try to reach the untapped rural market and semi-urban for

higher growth.

BIBLIOGRAPHY

BOOKS IC 33 Life Insurance (Revised), Insurance Institute of India

4Ps Business & Marketing, Vol-1, Issue-4, 28 April-11 May, 2006

Research Methodology, C.R Kothar

Marketing Management - Kotler Philip (1st edition reprint)

o Chapter 7, Page 183 Marketing Research – Donald T.S (6th edition), Page 49 Marketing Research – Beri G.C (3rd edition), Page 79 Marketing Research – Boyd H.W (7th edition) Research Methods – Donald C.R (8th edition), Page 120 Basic Marketing – Pereaurt W.D (2nd edition), Page 450 Consumer Behaviour – Della A.J (4th edition), Page 15 Consumer Behaviour – Gupta S.L (2nd edition), Page 144 Consumer Behaviour – Schiffman & Kanauk (3rd edition) , Page 306

MAGAZINES & JOUNALS

Advertising Express- Traditional Mass Media, By K.Suresh, Page 35 Marketing Mastermind – Advertising Reaction ,By Barada Prasad Panigrhy,

Research Associate , ICFAI Centre Indian Journal of Marketing - Article By Dr.Banusmathy, Page 31 Indian Journal Of Marketing – xxxv edition of January 2006 by K.suresh chandra Business World – April 24,2006 , Page 8 Business India – Advertising , April 23,2006 Business Today – Trends, April 23,2006 Synergy - Article By Mittal Alok, January 2006,Page 74-85 Business Research – June 2005, Page 31

INTERNET

www.kotak.com

www.kotaklifeinsurance.com

www.indiainfoline.com

www.saisonindia.com

www.allconferences.com

www.marketresearch.com

www.osmania.ac.in

www.myiris.com