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Final Report on Summer Internship Training

(Kotak Life Insurance)

Submitted in
Partial Fulfillment of
Post Graduation Course
In
Master of Business Administration

Submitted to: Submitted by:


Ms. Neha Mehra Rakhi R Pillai
(Faculty Guide) (8NBJD017)
INC Ajmer INC Jodhpur
Final Report on Summer Internship Training

(Kotak Life Insurance)

Submitted in
Partial Fulfillment of
Post Graduation Course
In
Master of Business Administration

Submitted to: Submitted by:


Ms. Neha Mehra Gourishankar
(Faculty Guide) (8NBJD022)
INC Ajmer INC Jodhpur
Final Report on Summer Internship Training

(Kotak Life Insurance)

Submitted in
Partial Fulfillment of
Post Graduation Course
In
Master of Business Administration

Submitted to: Submitted by:


Ms. Neha Mehra Guddi Devi
(Faculty Guide) (8NBJD021)
INC Ajmer INC Jodhpur
Final Report on Summer Internship Training

(Kotak Life Insurance)

Submitted in
Partial Fulfillment of
Post Graduation Course
In
Master of Business Administration

Submitted to: Submitted by:


Ms. Neha Mehra Divyaprakash
(Faculty Guide) (8NBJD010)
INC Ajmer INC Jodhpur
Acknowledgement

I would like to give sincere thanks to all those who have helped me in some or other way for
preparation of my report.

Ms. NEHA MEHRA my faculty guide INC Ajmer is always there for the assistance and directs
me whenever I was in need of it. I am happy to get her guidance and her sharp supervision on my
Summer Internship report.

I would also appreciate the esteem guidance & supervision provided by Mr. Deepak Tanwar
(Marketing Head Kotak Life Insurance Jodhpur) my company guide and also Mr. Prashant
Pidhwa, Sales Manager Kotak Life Insurance, Jodhpur by way of their valuable suggestion
provided during the course of my project

I am sincerely thankful to all those who directly or indirectly helped me in completion of this
assignment report.

Table of content
 Acknowledgement
 Objective
 Company Profile
 Introduction
 Recruitment of Advisor
 Target & Task
 Strategy Adopted
 Analysis of Variance
 Problem and Limitations
 Learning from Executive Training
 Awards and Rewards
 Suggestion
 Conclusion
 Bibliography
Objective

1) Proper understanding and analysis of life insurance industry.

2) Training aims at recruiting maximum number of Life Advisors and to bring the business
for the company whichever is going at the particular point of time.

1. To understand the insurance business and products of Kotak life insurance.


2. To find out the people’s perception about life insurance.
3. To find out whether people were really aware of life insurance.
4. To find out how people think about private life insurance.
5. To find out what respondents expect from life insurance
6. To understand Consumer buying behavior
7. To come out with conclusion and suggestions based on the analysis and the
Interpretation of data.
COMPANY PROFILE:-

Kotak Mahindra Life Insurance

Established in 1985 as Kotak Capital Management Finance promoted by Uday Kotak the
company has come a long way since its entry into corporate finance. It has dabbled in leasing,
auto finance, hire purchase, investment banking, consumer finance, broking etc. The company
got its name Kotak Mahindra as industrialists Harish Mahindra and Anand Mahindra picked a
stake in the company. Kotak Mahindra is today one of India's leading Financial Institutions.

Old Mutual

Old Mutual plc is an international financial services group based in London with expanding
operations in life assurance, asset management, banking and general insurance. Old Mutual is
listed on the London Stock Exchange (where it is included on the FTSE 100 Index) and also on
the South African, Namibian, Malawi and Zimbabwe stock exchanges. It has 158 years of
experience in the life insurance business.

OM Kotak Mahindra

OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd., and Old Mutual
plc to enter the Indian insurance arena to offer a wide range of innovative life insurance products.

Kotak Mahindra Old Mutual Life Insurance is a 74:26 joint venture between Kotak Mahindra
Bank Ltd. and Old Mutual plc. Kotak Mahindra Old Mutual Life Insurance is one of the fastest
growing insurance companies in India and has shown remarkable growth since its inception in
2001.
KMOM is the coming together of Kotak Mahindra Finance Ltd., and Old Mutual plc to enter the
Indian insurance arena to offer a wide range of innovative life insurance products. Established in
1985 as Kotak Capital Management Finance promoted by Uday Kotak the company has come a
long way since its entry into corporate finance. It has dabbled in leasing, auto finance, hire
purchase, investment banking, consumer finance, broking etc. The company got its name Kotak
Mahindra as industrialists Harish Mahindra and Anand Mahindra picked a stake in the company.
Kotak Mahindra is today one of India’s leading Financial Institutions.
Old Mutual plc is an international financial services group based in London with expanding
operations in life assurance, asset management, banking and general insurance. Old Mutual is
listed on the London Stock Exchange (where it is included on the FTSE 100 Index) and also on
the South African, Namibian, Malawi and Zimbabwe stock exchanges, with assets under
management worth $ 400 Billion as on 30th June, 2006. For customers, this joint venture
translates into a company that combines international expertise with the understanding of the
local market.
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 company’s
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.

Mission:

“At Kotak Life Insurance, we aim to help customers take important financial decisions at every
stage in life by offering them a wide range Of innovative life insurance products, to make them
financially independent.”

MANAGEMENT

MR. UDAY KOTAK is the CEO of the company.

Other Top Management persons are as follows:-


Mr. Gaurang Shah (Managing Director)

Mr. Gaurang Shah is the Managing Director of Kotak Mahindra Old Mutual Life Insurance
Limited. 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 a 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 qualification, he has over 25 years’ of experience in life
insurance industry. He joined as a direct Recruit Officer in L.I.C and worked in various
department such as sales, marketing, I.T, publicity and housing and Branch Administration all
across the country. On foreign deputation to fuji islands for 5 yrs, Mra. Patil substantially
increased the market share of L.I.C in competitive environment. After heading LIC’s premier
Mumbai division, he then joined ICICI ltd as a member of insurance venture team and later
worked for ICICI prudential Life Insurance as Head of Sales Development. Mr. Patil presently
has responsibilities of the sales force, with special emphasis on developing all managers to
enhance their competencies, capabilities & managerial effectiveness.

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

With a large population and the untapped market area of this population insurance happens to be
a very big opportunity in India. Today it stands as a business growing at the rate of 15-20%
annually. Together with banking services, it adds about 7 percent to the countries 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.

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.

Classification of insurance

The insurance industry in India can broadly classified 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”.

2) 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.

The Insurance Regulatory and Development Authority (IRDA):


Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector
insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies were the launch of the IRDA’s online
service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in place to sell their products,
which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of globally
compatible regulations. In the private sector 12 life insurance and 6 general insurance companies
have been registered.With the demographic changes and changing life styles, the demand for
insurance cover has also evolved taking into consideration the needs of prospective
policyholder for packaged products. There have been innovations in the types of products
developed by the insurers, which are relevant to the people of different age groups, and suit their
requirements. Continued innovations in product development has resulted in a wide range of
flexible products to meet the requirements for cover at different stages of life -today a variety of
products are available ranging from traditional to Unit linked providing protection towards child,
endowment, capital guarantee, pension and group solutions. A number of new products have
been introduced in the life segment with guaranteed additions, which were subsequently
withdrawn/toned down; single premium mode has been popularized; unit linked products; and
add-on/riders including accidental death; dismemberment, critical illness, fixed term
assurance risk cover, group hospital and surgical treatment, hospital cash benefits, etc.
Comprehensive packaged products have been popularized with features of endowment, money
back, whole life, single premium, regular premium, rebate in premium for higher sum assured,
premium mode rebate, etc., together with riders to the base products.

“RECRUITMENT OF ADVISOR”
OBJECTIVES

To recruit the Advisor from different localities of jodhpur.

Profiles involved knowing: -

Demographic background,

Educational background,

Experience background, and

Industry background.

To identify successful Advisor and study their success patterns.

Identifying involved: -

Setting Success Parameters of Advisors.

Measuring the Business Performance with Business Parameters.

Recruitment:-

Recruitment is carried out through screening interview, where the candidate’s qualitative aspects
like experience in the insurance sector, team management skills, socializing qualities, influencing
capabilities are considered and rated according to one’s personally and communication skills.

On induction in to the company as Advisor, Candidates have to pass through three stages a brief
description is given below:

TRAINEE STAGE:-

Advisors who are at this level are undergoes in training for a period of 15 days, as follows: -

General Training : 7 days


Product Training : 7 days

Total Training Period : 15 days

Duties and Obligations:-

Advisors shall Life Insurance business in a planned manner through Unit Manager under
Supervision by the company, and in consonance with the objectives of the company.

Advisors shall render policy to the customer to their Satisfaction.

Advisors shall ensure that they conduct their work/business in accordance with the
provision of the code of conduct laid down by the IRDA and in accordance with the rules
and regulations that may be laid down by the company and the IRDA time.

The minimum business targets, which ADVISORS are required to achieve during 1 year
is 12 Policies on different lives.
Target or Tasks Assigned During Executive Training

 To recruit 18 PHF within 13 weeks and making a calls daily to convince unknown
customers and to meet 5 peoples daily.
Strategies Adopted

I have adopted a multi dimensional strategy for achieving my targets. The strategy revolved
around various activities like telecalling, Direct questionnaires, market research/surveys , field
work etc.

Prior to adopting these strategies I have prepared a database of different clients through personal
references and also databse of unknown clients provided by company. I called up different
persons and invited them to become the client of my company Kotak Life Insurance by selling
policy with me.

Schedule
Contact the customer

Through telecalling Through personal calling

Convincing the customer about the services

Following the customer

Convincing to become an Advisor

Providing complete information regarding benefits

Questionnaires method: helped me a great deal in expanding and strengthening customer


relations database , thus speeding my effects towards achieving my targets. The sample
questionnaire is given on next page which I and my co- management trainees have used in
canopy session.

QUESTIONNAIRE

Dear Sir/Madam,

I am a student of ICFAI National College Jodhpur, conducting a marketing survey. I request


you to fill this questionnaire & I assure that this data will be used only for study purpose & it will
be kept confidential.

1. Name _________________________________

2. Address _________________________________
________________________________

3. Age

a. Less than 25 c. 35-45


b. 25 – 35 d. 45 and above

4. Qualification

a. Graduate c. Diploma
b. Postgraduate d. Other discipline

5. Occupation
a. Business c. Job holder
b. Professional d. Other

6. What is your average annual income?


a. Up to 1 lakh
b. 1 lakh to 3 lakhs
c. 3 lakhs to 5 lakhs
d. 5 lakhs and more

7. Your family size

a. Below 5 members
b. 5 – 10 members
c. Above 10 members
8. According to you life insurance is,
e. A tax saving plan
f. A saving scheme with good return
g. A financial security for the family
h. Risk coverage
i. All the above

9. Have you taken any life insurance product of ICICI Prudential Life insurance?
YES NO

If yes

10. Which are in these?


j. Unit gain plan
k. Invest gain plan
l. Whole life plan
m. Children plan
n. Pension plan
o. Others __________________

10. Are you aware of the benefits in your policy?

Yes No

If yes what are they?

 Sum assured
 Additional benefits
 Maturity date
 Risk coverage

11. According to you what are the disadvantages in an insurance plan?

 Lapsation
 Liquidity
 Fixed term
 Unable to decide your premium
 Unable to decide the sum assured
 High risk coverage at high premiums
 Other disadvantages

12. In which of the following would you like to invest?


 Equity fund
 Debt fund
 Balanced fund
 Cash fund
 Mutual fund
 Recurring deposits

13. Any suggestion for ICICI Prudential Life Insurance

______________________________________________________

______________________________________________________

Thank you for sparing your valuable time

Operational Design

In order to record the responces of the respondents a questionnaire was constructed and they
were approached during the “Canopy Session” and “Market Survey” in various locations
of jodhpur.

The Canopy Session were undertaken for the following reason:

• Brand recognition

• Wide public awareness

• Furnishing a rich database to tap the market potentials

• Direct interaction with the masses who could be the propects for the companies’
product and services.

• To target basically the middle and lower income groups

• Knowing the worth of a particular location in terms of business generation.

• Beating the time constraint.


While canopy session supported the above mentioned objectives, “Market Survey” was done to
cover the that segments of market which could not be covered during the canopy session; the
upper-middle and the higher end of the market. During this course a personal interactiob
facilitated data-collection and the views of people were known.

Following locations were selected for canopy session in Jodhpur:

• Sardarpura

• Shastri Nagar

• Housing Board

All these locations proved to be in tapping prospects from both the business and salaried class
also including the students, housewives and unorganized sectors.
Analysis of Variance

There is no change in my given target. It’s the same target to recruit 18 in 3 months i.e. from 27th
March to 27th June .
Problem and Limitations
Problem:

During this whole training period in this 3 months I have faced problem in convincing a
customer , its too hard to convince them to become an advisor. At the month of June company
have given the strict instruction that now customer should be 30 and above in age less then that it
would not be login as advisor so, this was the another problem I have faced

Limitations:

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

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

 Perception of the people towards Insurance sector – People still consider insurance
just as a Tax saving device. So today also there is always a rush to buy an Insurance
Policy only at the end of the financial year like January, February and March making the
other 9 months dry for this business.
 Insurance does not give good returns – Still today people think that Insurance does not
give good returns. They are not aware of the modern Unit Linked Insurance Plans which
are offered by most of the Private sector players. They are still under the perception that
if they take Insurance they will get only 5-6% returns which is not true nowadays.
Nowadays most of the modern Unit Linked Insurance Plans gives returns which are many
times more than that of bank Fixed deposits, National saving certificate, Post office
deposits and Public provident fund.

 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.
Learning from Executive Training

Through this Executive training I have learnt many things like:

Interpersonal skills: The main objective but important is to cultivate the interpersonal skills of
student engaged in summer internship program. The training is given by the company guide to
the SIP interns. In this I have learnt about corporate etiquettes and developed faith in
organization

Learnt corporate environment practically: The most important thing in executive training is
to learn practical corporate environment so that the intern can aware of the practical look in the
company. For example in industries we learn its working culture, environment, and to satisfy the
customer

Telephone etiquettes: during this training I have learnt telephone etiquettes that is how to make
a call , how to talk to customer, time limit as there is a time limit for each and everty call that is 1
or 1 and half minute. Have to be carefull regarding voice modulation it should not be too high
nor too low etc etc

And many more things I have learnt from this executive training like:

• I properly understood the working environment

• Got aware of marketing process like telecalling. Online and personal marketing

• Properly understood the complete insurance industry

• Learnt about IRDA its process.

• Learnt about recruitment process in Kotak Life Insurance

In short I have get the real life experience of the corporate world.
SUGGESTIONS

Based on the Research findings following suggestions can be made.

Advisor should be in regular touch with his /her Unit Manager.

Advisor should be attending the meeting regularly.

Advisor should visit office regularly and update the knowledge.

A structure layout for growth opportunities for Advisors should be developed within the
organization.

The Advisors who achieve the targets should be rewarded with additional monetary and
non-monetary benefits.

Promote and motivate the inactive Advisors.

Do work in challenging form.

Provide the technique how to work in the field.

Brochures and Product Plans required in Hindi Version.

Advisors also allowed to office in absence of Unit Manager.

Branch Manager also takes direct feed back from the advisors.

Advisors Party should be quaterly and Gift distribution in that seminar.

Mobile Phone should be in vibration mode in office time.


Conclusion

• One of the good company in Insurance sector.

• Company products are very good and better then competitors

• Focusing in product and services

• Comfortable environment while working here specially who working here as


management trainees like me

• For development of employees there are many plans like 51 club memberships, achiever
of the month and many plans.

• This organization provides many facilities to their employees as well as management


trainees

• The employees in this organization is adequately qualified and motivational level is high