INTRODUCTION TO THE PROJECTLife is full of surprises, some pleasant and some not so pleasant. Our families and we have to live with these uncertainties. Preparing for the uncertainties of life is what Insurance is all about. Why waste precious moments contemplating tomorrow, when we have to live today? Insurance is a tool, a solution for delegating the worries concerning tomorrow onto a trustworthy institution so that the insured can start living today.

Life insurance, as the words signify, is getting one's life insured. Life Insurance is a contract by which one saves in small, regular and easy installments, with the sure knowledge that a definite and a large sum of money will be available at some time in the future - whether one lives or not.

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 the death of the breadwinner. The moment someone gets insured, he/she creates an estate in favor. Even if one dies after paying the first premium, the full sum assured will be paid to the dependents provided, of course, that the policy is in force and the claim is genuine.

The objective of the project is to understand the products and services of various insurance companies floating in the market and to compare the products of Kotak Mahindra Life Insurance Company with the products of other life insurance companies. It also aims to make the consumer more open and aware of the plans offered by Private Companies in comparison with those of Government companies.

For our project, I decided on primary data collection method for observing working of company and approaching customers directly in the field, tele-calling, cold calling, campaigning and through references to know their interest in business with company in my project and also make questionnaire for creating database of business class people is Surat city for company.

I decided on Secondary data collection method was used by referring to various websites, books, magazines, journals and daily newspapers for collecting information regarding project under study.

DATA COLLECTION

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In our live project, we decided primary data collection method because our study nature does not permit to apply observational method. In survey approach we had selected a questionnaire method for taking a customer view because it is feasible from the point of view of our subject & survey purpose. We conducted 70 sample of survey in our project.

LITERATURE REVIEW

Carrow Kenneth A. and Heron R. Capital market reactions to the passage of the Financial Services Modernization Act of 1999. The Quarterly Review of Economics and Finance 42 (2002): 465-485.

The authors investigate how the passage of the Financial Services Modernization Act of 1999 (FMA) affected stock prices of banks, thrifts, finance companies and insurance companies. The study looks at stock excess returns across sectors and company size. The idea is that the passage of the FMA opens doors for potential mergers and consolidations across banking, financial and insurance sectors, translating into abnormal positive returns for businesses that are the likely candidate for mergers and consolidation. The results of the study suggest that the largest returns to the FMA passage were realized by large investment banks and insurance companies. The stock prices of banks, both small and large, seemed to be unaffected by the new legislation while thrifts, finance companies and foreign banks lost value.

Carrow Kenneth A. Citicorp-Travelers Group merger: Challenging barriers between banking and insurance. Journal of Banking and Finance 25 (2001): 1553-1571.

This paper is conceptually similar to the one cited above, in that the author investigates whether the announcement of a merger between Citicorp and Travelers abnormally impacted stock prices of financial and insurance companies. Analysis of abnormal returns surrounding the merger show that life insurance companies and large banks experienced significant stock price increases, while the returns of stocks of smaller banks, health insurers, and property/casualty insurers remain relatively unchanged.

Estrella, Arturo. Mixing and matching: Prospective financial sector mergers and market valuation, Journal of Banking and Finance 25 (2001): 2367-2392.

This paper analyses which types of mergers are likely to be most productive for banks and other financial firms in the United States. The author acknowledges that the extent to which different business activities are fundamentally distinct induces a tradeoff between diversification gains and loss of efficiency. The research considers life insurance, property/casualty insurance, securities, and commercial firms as potential matches for firms and concludes that potential diversification gains arise from almost all combinations involving banking and insurance. The paper stands out because it shows, unlike other earlier research, that property and casualty insurance companies offer larger diversification gains to banks than life insurance companies.

Johnston, Jarrod and Madura J. Valuing the potential transformation of banks into financial service conglomerates: Evidence from the Citigroup merger The Financial review 35 (2000): 17-36.

The authors first summarize previous literature that examined motives for combining bank and other financial services. Diversification benefits and product complementarities (i.e. mortgage and mortgage insurance, auto financing and auto insurance) seem to be the prime motives. However, some earlier research also suggests that there are few linkages between bank services ands underwriting services in terms of customers, outlets, or other characteristics that generate efficiencies. Given the sources of potential gains, it appears that life insurance companies with their limited underwriting risk and wide variety of other products offered to individual customers would be more attractive targets for banks than other types of insurance companies.

Based on these observations, the authors propose to test whether commercial banks, insurance companies, and brokerage firms were favorably affected by the Citigroup/Travelers merger for impending consolidation of financial services firms. They measure the valuation effects resulting from the merger announcement among those commercial banks and financial services firms most likely to be affected and conclude that commercial banks, insurance companies, and brokerage firms have all experienced positive and significant valuation effects upon the announcement of the Citigroup merger. However, the authors find that the valuation effects are more favorable for brokerage firms than for commercial banks and for insurance companies.

Finally, the authors perform a cross-sectional analysis which concludes that the largest banks and the largest brokerage firms experience more favorable valuation than the smaller banks or smaller brokerage firms. Size does not seem to be significant for insurance companies

Industry Publications

Armstrong, Ed and Buse, P. (1996). Youve got the green light, whats it worth? ABA Banking Journal, Vol. 88, Sept., 13-18.

The article projects that banks would add 5-10 percent to their after tax profits if they aggressively pursue their insurance opportunity." The author develops a pro forma statement for banks selling 12 different insurance items.

Boros, Joan E. (2002). Are Convergence Products Happening? National Underwriter, Life & Health/Financial Services Ed., May 27, 2002.

The author states that convergence depends on its definition. She offers very useful definitions for convergence: 1) Merger of banks and insurers, heretofore independent, into a financial supermarket with endless cross-selling potential, and 2) A combination of insurance and capital markets products moving into a union and uniformity, or separate markets performing the same functions. This could also be labeled as securitization of insurance risk and or insurancization of financial risk.

Crystal, Mary (1997). That was then, this is tomorrow. Bank Marketing, Vol. 30, 1, Dec.97/Jan.98, 28-52.

This panel discussion on bank marketing suggests more direct interaction with customers by direct mail or personal contact. Doing it pro-actively and by alternative methods: call centers, PC-banking, internet banking and supermarket banking. Using branding and other retail marketing skills. Bankers have tried to cut down on personal contact and may have alienated their customers.

Gjertsen, Lee Ann (2002). Insurance Agents Thrift Seeks OK to Widen Reach. The American Banker, May 13, 2002.

Insurance agents of New Jersey, Connecticut and Massachusetts founded an association as Independent Insurance Agents and Brokers and have applied for a charter for an association savings bank. The bank products are to be sold by the independent insurance agents that own their own agencies. The bank is to be named InsurBanc.

Gorski, Lorraine (2002a). The New Producers. Bests Review, May 2002, p.45-48.

The article describes how insurers can use the banks customer base to reach new customers. Banks have the trust of their customers and that would be a good distribution channel for life insurance, especially in the midlevel or mass market. Banks could represent 3-4 different insurers therefore the insurance products need to be competitive (for the customer and the representative) and specific for bank employee selling. Furthermore, stable relationships are necessary and the product needs to be branded and well advertised.

Underwriting will stay with the insurers but selling may go both ways by insurance agents or bank employees.

Gorski, Lorraine (2002b). Banking on Policy Holders. Bests Review, July 2002, p.44-47.

Insurers have founded banks to offer banking products. One hundred and thirty five applications were made between Jan.1, 1997 and May 31, 2001. Insurance banks have an uphill battle to convince their customers to establish a bank account because it is hard to determine when and why an insurance customer needs a bank account. On the other hand, it is easier for a bank that provides a loan to sense when insurance is necessary. Since most people already have a bank account, customer as well as agents have to be motivated to deal with another financial institution or to switch. In addition these new institutions often have no brick and mortar establishment but rather rely on Internet applications and Internet interactions.

Establishing banks enable insurers to get into the trust business and offer a sophisticated retirement package and to be able to cross-sell insurance products to their customers and to earn fee income. Although this can be done through partnerships, some insurers want to do it alone and thus to avoid finding later on unpleasant surprises. They count on their name recognitions and the availability of their agents (State Farm, Allstate).

Increasing brand awareness, direct mailing, providing up-to-date interest rates should help to lure customers. Most insurance firms have hired experienced bankers to create and manage these banks.

Hogan, John D (2001). Financial Services Reform: The Gramm-Leach-Bliley Act and its implications for insurance, Journal of Financial Service Professionals, January 2001, pp. 33-38.

In this paper, the author contends that the impact of the GLB Act on the insurance industry is unclear. It had been widely assumed that the banking industry would quickly expand into non-banking activities, as synergies could be expected from the large bank customer information base and frequent contacts with customers. However, this quick response has not taken place, partly because of perception of risk in the insurance business.

The author also cites a research study by The Federal Reserve Bank of Atlanta that suggests that bank holding companies will add insurance products to their lines of business for sound reasons such as: 1) small increment costs involved, 2) the presence of existing customer relationships, 3) revenue diversification, 4) absence of interest rate risk in insurance compared with loans and 5) banks web-based marketing capability.

McDaniel, David (1995): Agents worst nightmare: Banks are gaining the edge to sell insurance in a big way. Bests Review [Property/Casualty], Vol. 96, 2, June, 28-33.

The article explains that insurance agents are afraid of banks cutting into their business as they have in Europe where banks are far more efficient than agents. The article lays out how to make the proposed legislation ineffective, by warning of unsubstantiated tie-ins and bank coercion, proposing 10-day waiting periods, state legislation, and tough fire walls.

Milligan, John (1996). Banking like it used to be. US Banker, Vol. 106, Nov. p.61-65.

First Long Island Bank prospers because it serves a small niche of small privately owned companies and upscale consumers that it coddles by being available both in person/ phone and online.

Pasini, Roy (1997). Alliances Lawson cites three issues critical to future. Underwriters Report, 92nd year, #19, 5/8/97.

The author states that the insurance industry can defend itself against the invasion by banks through better customer service and greater use of technological efficiencies.

Weber, Irene (2002). No Sale. Bests Review, May 2002, p. 50-51.

Weber reports that, since the GLB Act of 1999, a few banks have acquired insurance firms and then Citigroup split up again. She provides the following reasons for non-convergence:

Regulation: financial and bank holding companies are federally regulated, insurance firms are state regulated. GLB requires U.S. jurisdiction to adopt uniform or reciprocal agent and broker licensing laws by November 2002. Reciprocity has apparently been approved by most states. But new insurance products need to have state approval before they are allowed to be marketed, which is a slow process. Will there be federal chartering of insurance firms in the future?

Technology: banks are able to offer interactive online services, while insurance products apparently dont lend themselves to it. Also otherwise insurance are slower to adopt new technology.

Financial reasons: Return on equity for insurers was for 2000 only 7.42 percent while banks made 12.2 percent. Probably Citigroup spun off Travelers because it did not make double digit growth, a norm for Citibank.

Banks have two goals in mind:

Revenue diversification

Product diversification for their customers

Agencies can provide for both those needs without additional underwriting risks for the banks. Banks increasingly bought insurance agencies well before GLB; they increased from 9 in 1996 to 62 in 2000, but decreased to 43 in 2001. There are some big banks which have pursued that strategy for a long time, BB&T completed 56 agency acquisitions since 1989 and has the 11th largest insurance agency network, Wells Fargo, the bank with the largest insurance agency network plans to make 25 percent of its income through insurance, trust, and brokerage business.

Newspaper Articles

Aquino, Norman P. and Junia C. Thrift Firms Join Foreign Firms Lobby for Cross-Selling Venture. Financial Times 7/3/02.

This article describes a recent example of convergence in the Philippines. The U.S. embassy is lobbying for New York Life to sell its insurance through Philippines banks. European insurance firms are also interested in it. Philippines thrifts are accusing the Central bank of not including them. The Philippe Central bank is interested that banks show that the insurance products are not guaranteed by the PDIC.

Bowman, Lisa. Financial Times, 3/20/02.

Bancassurance in the U.K. is not taking off as expected. Firms are not making use of the data available and the products are not streamlined for bank sales. Consumers apparently prefer professional advice from insurance agents, while banks have a bad reputation for poor service. The author recommends that banks should take on more rich clients. Instead they stay with second tier customers, thus should employ second tier agents which would provide off the shelve advice but that has not been created. This approach would also be more cost efficient. The new model is that bancassurers acquire pure insurers. Examples given.

Gibson Henry. Financial Times, 5/31/02.

This journalist highly supported the Dresdner Allianz merger. The new institution is called Allianz Group. The logic behind this giant merger is that the German government is in favor of German citizens to pursue private and company pensions which it will support with tax incentives and coercion. The pension industry is supposed to grow by 15 percent annually. The article suggests that that the familiarity and easy branch access of Dresdner would better service this population.

Lipin, Steven and Frank, S. (1998). One stop shopping is the reason for deal. The big umbrella: Travelers/Citigroup merger." The Wall Street Journal, 4/7/98.

The authors wonder whether the merger will bring about the promised synergies, and whether consumers really want all their services from one provider. Can they cross-sell their brands?

Walker, Marcus (2002). Germanys Commerzbank Is Still in No Mans Land. The Wall Street Journal, 7/12/02.

This article on the state of the Commerzbank mentions that tightly focused banks with strong market shares, such as U.K. retail banks, have made money. Diversified universal banks with no dominant market share such as Commerzbank or Frankfurt rival Dresdner Bank AG have slipped to losses in some quarters, raising doubts about their long term viability.

RESEARCH METODOLOGY

OBJECTIVEBefore joining Kotak my perception about the insurance industry was different but gradually it changed as we worked with the organization and grasped some knowledge. Our project basically is to compare the different competitor products of Kotak Life Insurance. Each activity gave us a completely new exposure to the marketing strategies of the organization. Every day was new for us as it ended with a new lesson of marketing in particular, and of organization as a whole. It taught to us coordination within different teams in the organization, the experience of continuous pressure over all the teams to attain their targets and lot more. The objectives of my studies are as follows:

To study the level of customer satisfaction with respect to the services provided by Kotak Life Insurance.

To study the level of awareness of customers regarding various new products of Kotak Life Insurance

To study the preference of customers with respect to various investment alternatives

TYPE OF RESEARCH

Research always starts with a question or a problem. Its purpose is to question through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Marketing research is the function which links the consumer, customer and public to the marketer through information- information used to identify and define marketing opportunities and problems generate, refine, and evaluate marketing actions, monitor marketing actions, monitor marketing performance and improve understanding of market as a process.

Marketing research specifies the information required to address these issues, designs, and the method for collecting information, manage and implemented the data collection process, analyses the results and communicate the findings and their implication.

I have prepared our project as descriptive type, as the objective of the study demands the answers of the question related to find the potentiality of life insurance in Jagadhri How much potential is there in Jagadhri?

SAMPLING / DATA COLLECTION

The nature of present study is such that it requires both primary & secondary data. The Primary data will be collected through the questionnaire and personal inquiries by the investors. The secondary data will be collected from the various magazines, news paper and journals.

SAMPLE SIZE 70 RESPONDENTS

Limitations of the study

There are certain limitations in the present study which are follows:

1. The study cant cover whole of the region due to shortage of resources and human limitation.

2. The information is collected through primary and secondary data. Hence, the limitation of the reliability and shortcoming of secondary data may affect the result.

INTRODUCTION TO INDUSTRYLife insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current.

With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. Together with banking services, it adds about 7 percent to the countrys GDP. In spite of all this growth statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India.

It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many changes. The liberalization of the industry the insurance industry has never looked back and today stand as one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.

Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction.

The business of insurance is related to the protection of the economic values of 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 benefit from it. The benefit may be an income or in some other form.

In India, insurance began in 1818 with life insurance being transacted by an English company. The first insurance company was the Bombay mutual assurance society ltd, formed in 1870 in Mumbai. Insurance helps to reduce the consequences of adverse situation. Insurance is the method of spreading and transfer of risk. The fortunate many who are exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the assets but only compensates the economic or financial loss.

In insurance the insured makes payment called premiums to an insurer, and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is usually drawn up in a formal legal contract.

Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful they may earn large profits, even if the insurance company pays out in claims every penny received as premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their cost of float.

An insurance contract or policy will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums.

Marine insurance is the oldest type of insurance and one of the earliest records of a marine policy relates to a Mediterranean voyage in 1347. This was followed by life insurance some 300 years later. Fire insurance, however, did not begin until after the Great fire of London in 1666. In India all the three insurance developed as under:

Fire Insurance

Marin insurance

Life Insurance

Classification of insuranceThe insurance industry in India can broadly classify in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:-

Life insurance can be defined as life insurance provides a sum of money if the person who is insured dies while the policy is in effect.

In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870. The life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated and amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened the insurance sector for private participation in 1999, also allowing the private

Companies to have foreign equity up to 26% following the opening up of the insurance sector, 12 private sector companies have entered the life insurance business.

Benefits of life insurance:

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

Thus insurance is found to be very useful in the lives of the person both in short term and long term.

Fundamental principles of life insurance contract:-

1) Principle of almost good faith:

A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk being proposed whether requested or not.

2) Principle of insurable interest:

Relationships with the subject matter (a person) which is recognized in law and gives legal right to insure that person.

Non-life (general) Insurance:-

Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907. There emerged many a player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance business.

BRIEF HISTORY OF THE INSURANCE SECTOR IN INDIAThe business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 Crore, it rose to 176 companies with total business-in-force as Rs.298 Crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January 1956 that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long-term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 Crore of New Business in 1957 the corporation crossed 1000.00 Crore only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 Crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 Crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LICs Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LICs ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai, Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.

From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE INSURANCE BUSINESS IN INDIA ARE

Non life insurance debuts with triton insurance company. 1870 Bombay mutual life assurance society is the first Indian owned life insurer

The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:

The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

INSURANCE SECTOR REFORMSIn 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms In 1994, the committee submitted the report and some of the key recommendationsincluded.

Insurance regulator IRDA set up

IRDA starts giving licenses to private insurers: Kotak Life Insurance, ICICI prudential and HDFC Standard Life insurance first private insurers to sell a policy

2001 Royal Sundaram Alliance first non life insurer to sell a policy2002 Banks allowed selling insurance plans.

Existing Insurance Companies/Corporation

INTRODUCTION ABOUT KOTAK LIFE INSURANCE

COMPANY PROFILE

Stock broking businesses in the UK. Kotak Group was established in 1985.Kotak Mahindra Bank is the parent company of the group. Kotak Group entered into the life insurance business in 2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc. (24%) Old Mutual plc is a world-Class international financial services company. It was established in South Africa before 160 years.

OLD MUTUAL is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company serves 4 million life insurance policyholders and employs over 13 000 South Africans in its local operations.

In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The companys US Life business recorded sales of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth management, through Gerrard as one of the leading private client

The OLD MUTUAL Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups.

MISSIONAt 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.

VISION & VALUES Our Vision:-

Kotak Life Insurance has a deep rooted commitment to improve the quality of life of its customers, employees and stakeholders. We aim at improving the long term value in our relationship by continuous innovation and improvements. We do this by our three-prong effort which strives to make Kotak Life Insurance a corporate with values.

Increase Customer Value:

Kotak Life Insurance has gone to the heart of its customer's requirements and developed products which are unique and serve the customer needs perfectly. We built a relationship of mutual trust and benefit to serve the Indian customer. At Kotak Life Insurance the customer always comes first.

Cohesive Work Environment: -

We form long-term partnership with our employees by offering them an invigorating work experience. We not only demand loyalty, sincerity and values but also give it back in equal measures. Kotak Life Insurance will like to offer its employees space to grow, innovate and build a long-term career.

Work with Honor: -

Kotak Life Insurance delivers everyday services in the marketplace with the high sense of duty and commitment. Our employees strive to build the long-term value for all those come in contact with Kotak Life Insurance. Our consumers, distributors, employees, shareholders and the nation have our commitment that we will uphold the values of trust, integrity and a Sense of Honor in every thought, act and deed in order to positively contribute to individual, society and nation growth.

Our values:-

very member of the Kotak Group team is committed to 5 core values: Integrity, Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.

MANAGEMENT

We at Kotak Life Insurance work as a team and have a flat management structure. Our top management has many years of experience which has helped guide the company into a position of leadership.

KOTAK MAHINDRA OLD MUTAL PLC KOTAK LIFE BANK

INSURANCE

( 74% )( 26% )( 100% )

Old Mutual Plc:-

Old Mutual was established more than 150 years ago. Old mutual plc, Is a world-class international financial service company. It owns the largest companies in the following areas in South Africa.

They are:

1. Life Insurance Company

2. Asset Management Company

3. Bank

4. Non-life insurance company

It has been developed into an International financial services group whose activities are focused on asset gathering and asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. In the 2003 rankings of the World's 500 largest corporations by Fortune magazine, Old Mutual climbed 87 places to position number 366 and was also listed as the 14th largest insurance company in the world.

Old Mutual is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company serves 4 million life insurance policyholders and employs over 13 000 South Africans in its local operations.

In the USA, Old Mutual is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The companys US Life business recorded sales of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth management, through Garrard as one of the leading private client stock broking businesses in the UK.

The Old Mutual Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups.

Kotak Mahindra Old Mutual Life Insurance

A 26%-74% Joint venture between Old Mutual plc and KotaK Mahindra Bank Ltd.

Started operations May 2001

209% growth in premium income (year ending March 2005)

Presence in 55 cities across the country

More than 1,60,000 policies issue (year ending March 2005)

More than 7000 Life Advisors ( year ending March 2005)

Over 1000 professional employees (year ending March 2005) 10000+ Life Advisors (year ending March 2008)

Over 2500 professional associates with Kotak mahindra (till the year ending 2010) Around 100+ branches all over india .

10000+ life advisors.

2000+ employees of very good quality.

Ranks 2nd in terms of average premium per policy.

Ranks 4th in total advertising awareness.

First year premium income:

2001-02: 7Crores

2002-03: 35Crores

2003-04: 125Crores

2005-06: 373Crores

2006-07: 396Crores

2007-08: 614Croeres

AWARDS

2003

Best equity House in India by Euro Money

Best Equity House in India by Asia Money

2004

Indias Best Equity House in India by Finance Asia

Best Equity House in India by Euro Money

Best Equity House in India by Asia Money

Best India Equity House by IFR

2005

Best Broker in India by Finance Asia

Best Equity House in India by Euro money

2006

Ranked no.1 in six categories in the Annual Euro money Private Banking Survey Poll for 2006 for India

Best Investment Bank in India by Finance Asia

Ranked #1 in the league table for Book runner/Lead Manager in public equity offerings in terms of the value of transaction completed during fiscal 2006 according to Prime Database

Best Broker In India by Finance Asia

Topped the best Mutual Fund House in the NDTV Business Leadership Awards2006

Best Bond Fund Group Over Three Years by Lipper Fund Awards India

Ranked the best debt fund over 5 years by lipper for the Kotak Bond Regular Plan

Ranked ICRA- MFRI and was the recipient of the Silver Awards by ICRA for the Kotak Bond Regular PlanPRODUCTS OF KOTAK LIFE INSURANCE

Individual

Kotak Privileged Assurance plan

Kotak Term Plan (pure risk cover)

Kotak Preferred Term Plan.

Kotak Money Back Plan

Kotak Child Advantage Plan

Kotak Endowment PlanKotak Capital Multiplier PlanKotak Retirement Income PlanKotak Retirement Income Plan (Unit-linked)

Kotak Safe Investment Plan IIKotak Flexi Plan

Kotak Easy Growth PlanKotak Premium Return Plan Riders

Group

Employee Benefits

Kotak Term Group plan Kotak Credit-Term Group plan Kotak Complete Cover Group plan Kotak Gratuity Group plan Kotak Super annotation Group planRural

Kotak Gramin Bima YojanaMAIN PLAYER IN LIFE INSURANCE SECTOR

LIC

Icici Prudential

Birla Sun Life

Bajaj Allianz

Tata Aig

Hdfc Standard Life

SBI Life

Each of the other private players like Aviva, Max New York Life, Kotak Life, ING Vysya, AMP Sanmar and MetLife had less than 1% market share but posted high growth in business

MarketingMarketing practice tends to be seen as a creative industry, which includes advertising, distribution and selling. It is also concerned with anticipating the customers' future needs and wants, which are often discovered through market research. Seen from a systems point of view, sales process engineering views marketing as a set of processes that are interconnected and interdependent with other functions, whose methods can be improved using a variety of relatively new approaches

PromotersKotak Mahindra Private Ltd.

Kotak Mahindra Prime Limited (KMPL) is a 100% subsidiary of Kotak Mahindra Group (Kotak Group) formed to finance all passenger vehicles. The company is dedicated to financing and supporting automotive and automotive related manufacturers, dealers and retail customers. The Company offers car financing in the form of loans for the entire range of passenger cars and multi utility vehicles. The Company also offers Inventory funding to car dealers and has entered into strategic arrangement with various car manufacturers in India for being their preferred financier.

As on March 31, 2005, KMP has a retail distribution network comprising of 54 branches (including representative offices) covering about 100 locations in 17 states in the country and has a wide network of Direct Marketing Associates, brokers and agencies supporting the distribution network and servicing around 113,000 customers.

Kotak Mahindra Bank Ltd.

Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited on November 2, 1985 and obtained its Certificate of Commencement of Business on February 11, 1986.

It commenced operations with Bill Discounting and soon started other fund-based activities like corporate leasing & hire purchase, automobile finance and money market operations. Subsequently, it also entered the funds syndication and the Investment banking business.

Old Mutual PlcIt has been developed into an International financial services group whose activities are focused on asset gathering and asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. In the 2003 rankings of the World's 500 largest corporations by Fortune magazine, Old Mutual climbed 87 places to position number 366 and was also listed as the 14th largest insurance company in the world.

Old Mutual is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company serves 4 million life insurance policyholders and employs over 13 000 South Africans in its local operations.

In the USA, Old Mutual is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The companys US Life business recorded sales of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth management, through Gerrard as one of the leading private client stock broking businesses in the UK.

DistributionKotak life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 2000 branches (including 1,095 micro-offices) and an advisor base of over 261,000 (as on August 31, 2008).

The company has 24 bank assurance partners having tie-ups with ICICI Bank, Bank of India, South Indian Bank, Shamrao Vitthal Co-Op Bank, Jalgaon Peoples Co-op Bank, Ernakulam District Co-op Bank, Idukki District Co-op Bank, Ratnagiri Sindhudurg Gramin Bank, Solapur Gramin Bank, Wainganga Kshetriya Gramin Bank, Aryawart Gramin Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank, Baitarani Gramya Bank, Ratnagiri District Central Co-op Bank, Seva Vikas Co-op Bank, Sangli Urban Co-Operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Co-Operative Bank, The Haryana State Co-Operative Bank, Renuka Nagrik Sahakari Bank, Amanath Co-Operative Bank, Arvind Sahakari Bank, Bhandara Urban Co Operative Bank.

SALES DISTRIBUTIONTied Agency:

Tied Agency is the largest distribution channel of Kotak Life, comprising a large advisor force that targets various customer segments. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business. With focus on sales & people development, tied agency has emerged as a robust, predictable and sustainable business model.

Bank assurance and Alliances:

Kotak life was a pioneer in offering life insurance solutions through banks and alliances. Within a short span of two years, and with nearly a large number of partners, B & A has emerged as a vital component of the companys sales and distribution strategy, contributing to approximately one third of companys total business. The business philosophy at B&A is to leverage distribution synergies with our partners and add value to its customers as well as the partners. Flexibility, adaptation and experimenting with new ideas are the hallmarks of this channel.

SALE STRETAGYKotak life insurance has a great strategy for sales department. Company has a three type of strategy for sales and that are as follow:

COMPANY STRETEGY:

Now company applies the project Turning Point and in this project to decide the selection criteria for LIFE ADVISOR and life advisor is the basic requirement for sale the policy. The selection criteria for advisor are:

Like:-

Agent age > 30 for male LA, and >25 for female

Agent income 5 lakhs

Agent stay in city belong > 5 years

Family back ground strong.

Minimum graduate

Either 2 years experience or post graduate refresher

EXTERNAL STRETEGY:

Kotak life insurance external strategy is To make limited branches but, to perform productive so that company to reduce the cost.

INTERNAL STRETEGY:

Kotak Life Insurance Company has internal strategy like,

Rewards & Recognisation:

SLABNO OF POLICIESREWARDS

LEVEL 12Reebok Travel Bag Combo

LEVEL 24Cordless Phone

LEVEL 36Vacuum Cleaner

LEVEL 410Oven Toaster Grill

LEVEL 515Nokia Xpress Music Mobile Phone

LEVEL 620Philips Home Theatre With DVD Player

Market Share:-

Life Insurance Companys Market share Based On premium in India.

2001-022002-032003-042004-05

LIC98%94%87%78%

Private

Players2%6%13%22%

Industry growth rate at 36% (2004-05) with premium income from new Business.

Company Indian

Promoter/

PartnerForeign

InsuranceMarket share based on premium

Aviva lifeDaburAviva, UK1.12

Bajaj AllianzBajaj AutoAllianz, Germany6.12

Birla sun lifeAditya Birla groupSun Life, Canada1.84

HDFC StandardHDFCStandard Life, UK2.96

ICICI PrudentialICICI BankPrudential, UK7.11

ING VysyaVysya Bank ING Insurance, Netherlands0.63

Kotak Mahindra, Old MutualKotak Mahindra BankOld Mutual South Africa0.71

Max New York Max IndiaNew York Life, US1.32

MetLifeJammu & Kashmir BankMetLife, US0.40

Sahara Life InsuranceSahara IndiaNone0.80

SBI LifeSBICardiff, France1.52

Tata AIGTata GroupAIG, US1.78

PRODUCT PROFILE

PLANS OF KOTAK LIFE INSURANCE

Endowment Plan

Features

On maturity, the insured 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 financial instruments (as per IRDA regulations) so money works harder for the insured.

The Automatic Cover Maintenance facility ensures the policy remains in force even if the insured miss premium payments. This facility is available after the first three years of the term

The insured can take a loan against the policy, after the policy has been in force for at least three years.

The insured have the option of paying premiums quarterly, half yearly or yearly. The insured 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

The insured have the benefit of a 15-day free look period.

Benefits

Maturity Benefits - On Maturity, the insurer would receive the sum assured or the amount in the Accumulation Account, whichever is higher.

Death Benefits - In the event of death of the life insured during the term of the plan, the beneficiary would receive the sum assured or the amount in the Accumulation Account, whichever is higher.

Loan Facility - Loan facility is available

Tax Benefits Premium Paid will qualify for rebate under Sec.88 of the Income Tax, 1961 and the returns are fully tax exempted under Sec. 10(10D). Premium paid for Critical Illness Benefits qualify for rebate under Sec. 80D

Term Plan

Features

It is a low-cost insurance plan.

The insured can choose between a regular premium payment option or a single premium payment option.

In case the insured opt for the regular premium payment option, the insured may pay the premiums either annually, or in half yearly or quarterly installments.

Kotak Term Plan can be converted into any other plan offered by OM Kotak Mahindra Life Insurance Co. Ltd. (except for another Term plan) provided there are at least 5 years before cover ceases.

In case the insured forget to pay premium by the due date, the insured are entitled to a grace period of 30 days from the date of unpaid premiums.

In case of a financial emergency, the insured have the option to surrender the policy provided the insured have taken the single premium payment option.

Benefits

Death Benefits - In the event of death of the life insured during the term of the plan, the beneficiary would receive the target sum assured.

Tax Benefits Premium Paid will qualify for rebate under Sec.88 of the Income Tax, 1961

Money Back Plan

Features

The plan not only covers life but also provides the insured 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, the insured 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 the money works hard for the insured.

The Automatic Cover Maintenance facility ensures the policy remains in force even if the insured miss premium payments. This facility is available after the first three years of the term.

The insured have the option of paying premiums quarterly, half yearly or yearly.

Benefits

Maturity Benefits - On maturity, the insurer would receive the sum of the Survival benefit, Guaranteed addition and Bonus addition

Death Benefits - In the event of death the beneficiary would receive the death benefit. The death benefit keeps increases by 7% of the sum assured every year

Loan Facility - Loan facility is available

Tax Benefits Premium Paid will qualify for rebate under Sec.88 of the Income Tax, 1961 and the returns are fully tax exempted under Sec. 10(10D). Premium paid for Critical Illness Benefits qualify for rebate under Sec. 80D

Retirement Plan

Features

The insured can choose to retire at any age between 45 yrs and 65 yrs.

On Retirement: The insured may take a lump sum in cash of up to a third of Basic Sum Assured or Accumulation Account, whichever is higher; and the balance of the benefit the insured are eligible for will be used to buy an annuity of the choice.

Annuity Options: The insured may buy an annuity either from OM Kotak Mahindra (subject to the choice and rates available at that time)**, or from any other insurer.

Early Retirement Benefits: The insured may opt to retire early, i.e. at any age before the normal retirement date (subject to the policy being in force for 3 years or attaining a minimum age of 45 yrs, whichever is later). The insured can then secure benefits with Accumulation Account, net of an early retirement charge of 5%. If the early retirement is due to ill health, then the insured may retire before attaining the age of 45. The insured can then secure benefits with full Accumulation Account.

Late Retirement Benefits: The insured may opt to retire after the retirement date originally selected, and select a new retirement date (subject to a maximum of 65 years). No further premiums will be payable and the death benefit will be equal to the balance in Accumulation Account. (However, all riders will cease at the original retirement date).

The insured can make lump-sum injections into 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.

The insured 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, the insured have the facility of Automatic Cover Maintenance, which ensures that the cover remains in force even when the insured miss the premium payments. This facility is available after the first three years of the term.

Benefits

Maturity Benefits - On Maturity, the insurer would receive the sum assured or the amount in the Accumulation Account, whichever is higher.

Death Benefits - The benefits to the beneficiary will be, greater of:(i) Sum Assured less all the premiums due but not paid, and(ii) Accumulation Account.

Tax Benefits Premium Paid will qualify for rebate under Sec.88 of the Income Tax, 1961. On retirement, the portion taken in cash (up to one third of the benefit) is currently not taxed.

Child Advantage Plan

Features

On Maturity, the insured 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 balance available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so money works hard to earn more for child.

The Automatic Cover Maintenance facility ensures the policy remains in force even if the insured miss premium payments. This facility is available after the first three years of the Term.

The insured can take a loan against this plan, after the policy has been in force for at least three years.

The insured have the option of paying premiums quarterly, half yearly or yearly.

The insured have the benefit of a 15-day free look period.

In case of the unfortunate death of the premium payer, this benefit keeps the policy alive by waiving all future premiums on the policy.

In case the premium payer is permanently disabled as a result of accident, this benefit keeps the policy alive by waiving all future premiums on the policy.

Benefits

Maturity Benefits - On Maturity, the Child would receive the sum assured or the amount in the Accumulation Account, whichever is higher.

Death Benefits - In the event of death of the child insured during the term of the plan, the Guardian would receive the sum assured or the amount in the Accumulation Account, whichever is higher.

What happens in the event of death of the life insured?"In the event of the unfortunate death of the insured during the term of the plan, the following would become payable:

If the policy has been in force for five years or if the life insured is at least 18 years old, the beneficiary will receive either the Sum Assured or Accumulation Account whichever is higher, as on the date of death.

If the death occurs within five years from commencement of policy and if the insured is less than 18 years old, the death benefit would be either the total of all premiums paid so far or the surrender value at that time, whichever is higher.

Loan Facility - Loan facility is available

Tax Benefits Premium Paid will qualify for rebate under Sec.88 of the Income Tax, 1961 and the returns are fully tax exempted under Sec. 10(10D).

Capital Multiplier Plan

Features

The insured can choose to start making withdrawals from the vesting age, subject to a maximum of 65 yrs.

At the start of withdrawal period, the insured can draw the full proceeds; or the insured can draw up to 50%, of Basic Sum Assured or Accumulation Account, whichever is higher.

In the event that the insured draw the full proceeds, the insured policy terminates.

In the event that the insured do not draw full proceeds, then the insured can make one or more withdrawals yearly (that can alter year to year, as per needs), total of which will be between 0% to 25% of the Net Vesting Value, subject to the rules applicable at the vesting age. The total of such withdrawals will never be less than the Accumulation Account at the start of the vesting period.

The insured have the choice to opt for an early vesting at any age before the scheduled vesting age (subject to at least 3 years' premiums having been paid), if need arises. If the early vesting is due to medical grounds, then the minimum condition of 3 yrs is also waived.

In addition to the regular premiums, the insured can make lump-sum injections into plan during the premium-paying period, as and when the insured want (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 combined with the Accumulation Account at the chosen vesting age.

The insured have the facility of Automatic Cover Maintenance, which ensures that the policy remains in force even when the insured miss the premium payments. This facility is available after the first 3 years of the term.

The insured have the option of paying premiums from the Supplementary Accumulation Account, created for "lump-sum injections", if the need arises.

During the build-up period, the insured get an additional life cover of 10% of the Basic Sum Assured, which is over and above the life cover the insured have opted for.

During the withdrawal period, the insured get life cover of 10% of the Basic Sum Assured, and the Critical Illness Benefit (CI+15), if opted for. This is available for a period of 15 years from the insured vesting age or till the insured turn 75, whichever is earlier.

During the withdrawal period, returns will continue to be added to the Accumulation Account. Such returns cannot be negative.

Benefits

Maturity Benefits - On Maturity, the Child would receive the sum assured or the amount in the Accumulation Account, whichever is higher.

Death Benefits - In the event of death of the child insured during the term of the plan, the Guardian would receive the sum assured or the amount in the Accumulation Account, whichever is higher.

What happens in the event of death of the life insured?"In the event of the unfortunate death of the insured during the term of the plan, the following would become payable:

If the policy has been in force for five years or if the life insured is at least 18 years old, the beneficiary will receive either the Sum Assured or Accumulation Account whichever is higher, as on the date of death.

If the death occurs within five years from commencement of policy and if the insured is less than 18 years old, the death benefit would be either the total of all premiums paid so far or the surrender value at that time, whichever is higher.

Loan Facility - Loan facility is available

Tax Benefits Premium Paid will qualify for rebate under Sec.88 of the Income Tax, 1961 and the returns are fully tax exempted under Sec. 10(10D). INSURANCE SOLUTIONS FOR INDIVIDUALSKotak Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policyholder.

ProtectionHelping you to grow and protect your wealth.

Savings & InvestmentsManage today for a better tomorrow.

RetirementThe road to retirement, Make it easy

ChildPlan a good future for your child.

PROTECTION PLANSKotak Loan Protection Plan:

Kotak Loan Protection Plan is a protection plan that helps share the burden of your loan.

Kotak Term/Preferred Term Plan:

The Kotak Term/Preferred Term Plan is a pure risk cover plan that provides you with a high level of protection at nominal costs.

Kotak Eternal Life Plans :

Kotak Eternal Life Plans are participating whole life plans that provide enhanced protection till the golden age of 99.

SAVINGS & INVESTMENT PLANSKotak Platinum Advantage plus:

Youve lived life on your own terms; always done what youve believed in. You are used to having the luxury of choice and the power to control.Kotak Smart Advantage:

Kotak Smart Advantage is an intelligent unit-linked plan that is based upon the idea of regular savings and systematic accumulation of wealth in the long term.

Kotak Safe Investment Plan:

Kotak Safe Investment plan is the ideal investment plan for you with its unique Seal of Guarantee offer that not just gives you the best of bull markets but also eliminates any capital loss in falling markets.

Kotak Flexi Plan:

Kotak flexi plan offers you an ideal market-linked investment plan that helps you create your own financial future by offering you the flexibility and control over your money.

Kotak Platinum Advantage Plan:

Kotak Platinum Advantage Plan features capital protection, embedded investment advice, life cover and aggressive market linked growth options.

Kotak Easy Growth Plan:

Kotak Easy Growth plan, a single premium investment plan that generates value for you for whole life as well as provides protection to your family in case of unforeseen events.

Kotak Capital Multiplier Plan:

The Kotak Capital Multiplier Plan is the only plan of its kind that allows you to enjoy returns even beyond maturity.

Kotak Money Back Plan:

This plan offers the key benefit of cash lump sums at periodic intervals of five years ensuring that you are able to meet any of your financial obligations.

Kotak Endowment Plan:

Kotak Endowment Plan is a participating endowment plan that provides you an avenue for long term regular investments to accumulate a lump sum on maturity.

Kotak Premium Return Plan:

The premium Return Plan will get you the dual benefit of a risk cover and savings, with minimal paperwork and procedures.

Kotak Sukhi Jeevan Plan:

Sukhi Jeevan is a long-term savings and protection plan that keeps pace with your changing needs at every step of life.

RETIREMENT PLANS

Kotak Secure Retirement Plan:

An ideal retirement solution is one that gives you complete flexibility and peace of mind, not only while you save for your retirement but also after you retire.

Kotak Retirement Income (Unit Linked):

STRENGTHS:

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

Disciplined fund management - Years of experience in asset management, and a strong track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

Innovativeness - Known for being an innovator in providing world-class pragmatic financial solutions, with a constant focus on customization and flexibility

Unrelenting Customer Focus - A highly committed sales force, with customer satisfaction as the key driving force - a major differentiator

Transparency in Services - Daily declaration of fund performances, regular performance benchmarking, well regulated asset management, and monthly newsletter on market updates

WEAKNESSES:

Industry in nascent stage.

Rural areas still not covered.

Not very known among Indian population.

Lack of credibility among the people because Kotak being a private player.

Premiums are high as compared to its competitors.

Very few branches in the country.

Products:

The policy doesnt have the surrender option before third year.

Plan does not offer any guarantee or assured return.

Product profile is not very comprehensive.

Mortality, management and administrative charges are sky scrapping as compared to its competitors.

OPPORTUNITIES:

Liberalization of Indian economy.

As the industry is growing the whole market is virgin.

The whole private sector is opened to be trapped even though the competition is fierce from government owned insurance companies.

Its a volume business that is even if the company has few good corporate the turnover cease to increase by manifold.

Products:

Preserver funds look good due to comfortable liquidity in the economy and there is little chance hike in short-term rate by RBI.

Finance minister unveiled a budget favoring consumer spending, boosting demand and therefore higher economic growth.

THREATS

The government players will become aggressive thus growth is going to be tough.

Entry of other players is not ruled out.

Apprehension towards Kotak being a private life insurance company.

We expect the industry to rationalize in future that is mergers and acquisitions will happen, which will impact the industry and Kotak life fortunes.

Products:

Past performance of these plans is not indicative of the future performance of the plan.

The sum invested in the funds is subject to market risks and there can be no assurance that the objective of plan will be achieved.

All benefits payable under the policy are subject to tax laws and other financial enactment, as they exist from time to time.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned the insurance companies.

But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business).

The act extends to the whole of India and will come into force on such date as the Central Government may, by notification in the Official Gazette specify. Different dates may be appointed for different provisions of this Act.

The Act has defined certain terms; some of the most important ones are as follows:

Appointed day means the date on which the Authority is established under the act. Authority means the established under this Act.

Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up by the Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996.

Words and expressions used and not defined in this Act but defined in the Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or the General Insurance Business (Nationalization) Act, 1972 shall have the meanings respectively assigned to them in those Acts

A new definition of "Indian Insurance Company" has been inserted."Indian insurance company" means any insurer being a company

(a) Which is formed and registered under the Companies Act, 1956(b) in which the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed twenty-six percent, Paid up capital in such Indian insurance company

(c) Whose sole purpose is to carry on life insurance business, general insurance business or re-insurance business?

Insurance in Kotak life Insurance

I have conducted my training in Kotak life insurance one of the leading company in insurance sector improving day by day. Taking the today scenario in mind we have tried to find out the ways how we can aware the customer about the changes in the insurance sector. Before joining Kotak my perception about the insurance industry was different but gradually it changed as we worked with the organization and grasped some knowledge. Our project basically is to compare the different competitor products of Kotak Life Insurance. Each activity gave us a completely new exposure to the marketing strategies of the organization. Every day was new for us as it ended with a new lesson of marketing in particular, and of organization as a whole. It taught to us coordination within different teams in the organization, the experience of continuous pressure over all the teams to attain their targets and lot more.

FINDINGS & DATA ANALYSISObjective 1: To study the level of customer satisfaction with respect to the services provided by Kotak Life Insurance

Q 1. Are you satisfied with the services of Kotak Life insurance company

Yes 63%

No37%

Table 1

Graph 163% respondents were satisfied with the services of Kotak life insurance & 37% respondents were not satisfied from Kotak life Q 2. Why do you prefer Kotak Insurance as compared with other insurance companies

Attribute

Respondent PercentageGood quality of services1521%

Transparency3854%

quick documentation710%

quick approach1014%

Table 2

Graph 2From the above data we can conclude that the most customer prefer the Kotak Company due to the transparency in the work system. And second most important reason is good quality services Q 3. Are you satisfied with the amount charged by the Kotak life insurance for providing its services

Yes 60%

No40%

Table 3

Graph 3Form the above that we can conclude that only 60 % of customer are satisfied with the amount charged for the services and rest are dissatisfied Objective 2: To study the level of awareness of Customers regarding various new products of Kotak Life Insurance

Q 4.Are you aware of recent changes & new products of Kotak life insurance?

Yes 71%

No29%

Table 4

Graph 4From the above that we can clearly seen that 71% of the investors are aware about the changes & new products of the Kotak life insuranceQ 5. What is your occupation

Occupation

Respondent Percentage

Govt. Job2840%

Pvt. Job1826%

Self employed1521%

Others913%

Table 5

Graph 5From the above data we conclude that most of the investor in Kotak are from government employees followed by pvt employees & self employed personsObjective 3 : To study the preference of customers with respect to various investment alternatives

Q 6. If choice given to you, in which you will invest first Investment Attributes

Respondent PercentFD1521

Insurance2232

Post office2231

NSS/NCC1116

Table 6

Graph 6Q 7. What was or will be the purpose of your being taking an insurance policy Purpose

Respondent PercentSaving3449%

Risk coverage2130%

Tax benefit1521%

Table 7

Graph 7From the above data we conclude that the purpose of being taking an insurance policy is saving with almost half of the respondent. 30 % of the respondents purpose is risk coverage Q 8. Which plan you will prefer to take

Plan

Respondent PercentEndowment1217%

Children plan1623%

pension plan1826%

Money back plan1521%

ULIP plan913%

Table 8

Graph 8Pension plan, 26% respondents will generally prefer this plan. Children Plan , 23% will generally will prefer this plan , 21% investor prefers money back policy. Followed by Endowment & ULIP plan with 17% & 13% respectivelyFINDINGS

Objective 1: To study the level of customer satisfaction with respect to the services provided by Kotak Life Insurance

63% respondents were satisfied with the services of Kotak life insurance & 37% respondents were not satisfied from Kotak life The most customer prefer the Kotak Company due to the transparency in the work system. And second most important reason is good quality services

only 60 % of customer are satisfied with the amount charged for the services and rest are dissatisfied reason for this starting its operation in beginning stageObjective 2: To study the level of awareness of Customers regarding various new products of Kotak Life Insurance

71% of the investors are aware about the changes & new products of the Kotak life insurance because advertisement made by the company Most of the investor in Kotak are from government employees followed by pvt employees & self employed persons by having 6th pay commission and increase in income of self employedObjective 3 : To study the preference of customers with respect to various investment alternatives

The purpose of being taking an insurance policy is saving with almost half of the respondent. 30 % of the respondents purpose are risk coverage Pension plan , 26% respondents will generally prefer this plan. Children Plan , 23% will generally will prefer this plan . 21% investor prefer money back policy. Followed by Endowment & ULIP plan with 17% & 13% respectively

LIMITATION Some of the difficulties and limitations faced by me during my training are as follows:

Lack of awareness among the people This is the biggest limitation found in this sector. Most of the people are not aware about the importance and the necessity of the insurance in their life. They are not aware how useful life insurance can be for their family members if something happens to them.

Perception of the people towards Insurance sector People still consider insurance just as a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the end of the financial year like January, February and March making the other 9 months dry for this business. Insurance does not give good returns Still today people think that Insurance does not give good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by most of the Private sector players. They are still under the perception that if they take Insurance they will get only 5-6% returns which is not true nowadays. Lack of awareness about the earning opportunity in the Insurance sector People still today are not aware about the earning opportunity that the Insurance sector gives. After the privatization of the insurance sector many private giants have entered the insurance sector. These private companies in order to beat the competition and to increase their Insurance Advisors to increase their reach to the customers are giving very high commission rates but people are not aware of that. Increased competition Today the competition in the Insurance sector has became very stiff. Currently there are 14 Life Insurance companies working in India including the LIC (life insurance Corporation of India). Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market. This situation has created a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy has became very very difficult.

CONCLUSION

After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth Kotak in private sector, we come at the conclusion that

There are very tough competitions among the private insurance companies on the level of new trend of advertising to lull a major part of Customers.

Kotak is not left behind in the present race of advertisement.

The entry of more Pvt. Players in the Insurance Sector has expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers.

Kotak has vast market and very firm grip on its traditional customers and monopoly of life insurance products.

IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.

SUGGESTIONSThe study has provided with the useful data from the respondents. There has a lot to be recommended. Following are the recommendations:

There is a need for better promotion for the investment products & services. The bank should advertise its products through television because it will reach to the masses.

More returns should be provided on Insurance plans. More transparency should be provided with respect to charges charge by the companies

Proper training session should be there after interval gap so that they can know about the new aspect of the market As the bank provides the Insurance facility to its customers it should provide this facility by tie up with the other Insurance organizations as well. The main reason is that, the entire customers do not want Insurance of only one company. They should have choice while selecting a suitable Insurance plans. This will definitely add to the goodwill & profit for the bank.

BIBLIOGRAPHYSr. noBookAuthor

1Life insurance (IC-33)S. Balachandran

2Insurance principles & practiceP.A.S.Mani

3Life insuranceProf. O.S.Gupta.

4Marketing managementPhilip kotler

5Product brochure of KLI-

Web sites

www.kotak.com www.licindia.com www.irda.org www.lifeinsure.com

QUESTIONNAIRE

1. Are you aware of recent changes in insurance plans?

i. Yes

ii. No

2. If yes, then who is your insure?

i. LIC

ii. ICICI

iii. HDFC SLIC

iv. Others

3. What was or will be the purpose of your being taking an insurance policy ?

i. Saving

ii. Risk coverage

iii. Tax Benefits

4. If choice given to you, in which you will invest first?

i. FD

ii. Insurance

iii. Post office

iv. NSS/NCC

v. Shares

vi. any other5. Who is your consultant while investing in any insurance plan?

i. professional

ii. Friend/Relative

iii. Family

iv. Agent6. What is your occupation?

i. Govt. Job

ii. Private job

iii. Self Employee

iv. Any other

7. Which plan you have taken?

i. Endowment plan

ii. Children plan

iii. pension plan

iv. Money Back Plan

v. ULIP Plan

vi. Any other

8. Polices to which you are Familiar?

i. Endowment plan

ii. Money back policies

iii. Pension Plan

iv. ULIP Plan

v. Children Plan

9. Are you satisfied with the services of your insurance company?

i. Yes

ii. No

10. Should life insurance be made compulsory?

i. Yes

ii. No11. Are you satisfied with the amount charged by the kotak life insurance for providing its services

i. Yes

ii. No

12. Why do you prefer Kotak Insurance as compared with other insurance companies?

i. Good quality of services

ii. Transparencyiii. Quick documentation

iv. Quick approachable

13. Are you facing any problem while dealing with the kotak life insurance?

i. Yes

ii. No

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