LIFE INSURANCE - KOTAK MAHINDRA

CONTENTS

Sr.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

PARTICULARS SUMMARY INTRODUCTION LIFE INSURANCE KOTAK MAHINDRA PRODUCT Q3 RESULT COMPARISON WITH SBI‘S PRODUCT SURVEY FORM SURVEY RESULT SURVEY REPORT FAQ‘S ARTICLES CONCLUSION BIBLIOGRAPHY

Page No. 1. 2. 5. 12. 13. 35. 36. 39. 40. 43. 44. 48. 52. 53.

T.Y.B.B.I.

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LIFE INSURANCE - KOTAK MAHINDRA

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

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LIFE INSURANCE - KOTAK MAHINDRA In this project I have tried to bring out some of the important product offered by the kotak mahindra.

INTRODUCTION The business of insurance is related to the protection of the economic value assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. The benefit may be an income or some thing else. It is a benefit because it meets some of his needs. In the case of a factory or a cow, the product generated by is sold and income generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income.

Every asset is expected to last for a certain period of time during which it will perform. After that, the benefit may not be available. There is a life-time for a machine in a factory or a cow or a motor car. None of them will last for ever. The owner is aware of this and he can so manage his affairs that by the end of that period or life-time, a substitute is made available. Thus, he makes sure that the value or income is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it nonfunctional. In that case, the owner and those deriving benefits and the planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effect of such adverse situations. T.Y.B.B.I. SEMESTER VI 3

there are various events which may cause financial loss to an individual business. (called ‗insurer‘) undertakes. The insurer i.Y.LIFE INSURANCE . a tool by which the loss likely to be caused by an uncertain event is spread amongst a number of people who face similar risks.I. possibility of encountering loss due to certain events) and these can be to a certain extent removed through insurance. whereby one party. T. Insurance provides certainty (i. eliminated or transferred.e.) DEFINITION Insurance is ―a contract between two parties.B. Some of the events also called as ―risks‖ can be avoided or prevented while some of them can be reduced or transferred to another person.e.e.e. SEMESTER VI 4 . Insurance is a tool or device through which some risks can be reduced.KOTAK MAHINDRA MEANING In life and in business.B. possibility of loss due to an unforeseen event. Insurance is thus. Insurance is a cooperative way of bearing risks. Every individual and business face some uncertainties (i. the insurance company undertakes to indemnify (make good the loss) to the insured for loss or damage arising as a result of the particular risks. in exchange for a fixed sum (called ‗premium‘) to pay the other party (called ‗insured‘) fixed amount of money (called compensation) on the happening of a certain event. protection by way of compensation) for some uncertainty (i.

Insurance is relevant only if there are uncertainties. depending on the cost of the building and the contents in it. Risks are the consequential losses or damages.LIFE INSURANCE . Life insurance covers the risks to an individual‘s life while non -life insurance covers risks to business and includes fire insurance. life & non-life insurance. There has to be an uncertainty about the risk. it cannot be insured against. Such possible occurrences are called perils. Perils are the events. The damage may or may not happen. liability insurance etc. The risk only means that there is a possibility of loss or damage. If there is no uncertainty about the occurrence of an event. death is certain. In the case of a human being.B. floods. marine insurance. are perils.I.e.KOTAK MAHINDRA Basically. we say that the asset is exposed to that risk. there are two types of insurance i. If such perils can cause damage to the asset. earthquakes. breakdowns.B. Fire. because they are likely to be destroyed. In the case of a person who is T. etc. lightning. through accidental occurrences. but the time of death is uncertain. PURPOSE & NEED OF INSURANCE Assets are insured. SEMESTER VI 5 . because of the peril of an earthquake. The risk to a owner of a building. may be a few lakhs or a few crores of rupees.Y. Insurance is done against the contingency that it may happen.

It only compensates the losses – and that too.LIFE INSURANCE . through better safety and damages control management. Insurance does not protect the asset. SEMESTER VI 6 .Y. The peril cannot be avoided through insurance. etc.B. LIFE INSURANCE MEANING T. sentimental attachments to family heirlooms. If the loss is not financial. the time of death is not uncertain.B. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset.I. The peril can sometimes be avoided. It does not prevent its loss due to the peril. He cannot be insured. leadership of managers. though not exactly known. Only economic consequences can be insured. insurance may not be possible. not fully. innovative and creative abilities. Examples of non-economic losses are love and affection of parents.KOTAK MAHINDRA terminally ill.

due to accident or death of a person his dependants will suffer financially.this risk may be in the form of accident or death.LIFE INSURANCE . risk to human life is covered . Thus.I.KOTAK MAHINDRA Life Insurance Is a Contract whereby the insurer in consideration of a premium undertakes to pay a certain sum of money.B. money is payable at the death of assured (policyholder) and under endowment policy. in life insurance actually an ‗assurance‘ is given by the insurance company that it will pay a certain sum of money either on death of the assured or maturity. Death is certain to happen but when it will happen is uncertain. A person may or may not meet with an accident.Y. whichever occurs earlier. Life Insurance provides certainty against these uncertainties Hence. T. either on the death of the insured or on the expiry of a certain period. whichever is earlier In life insurance. money is payable on the assureds death or on the maturity of the policy. whichever occurs earlier Under whole-life policy. SEMESTER VI 7 .B.

I.B. Compensation.KOTAK MAHINDRA FEATURES OF LIFE INSURANCE Almost all life policies are long term. T. has to be paid either on death of assured or after maturity. At times. SEMESTER VI 8 . Life insurance policy may be surrendered by the assured before its maturity.LIFE INSURANCE . which is an assured. amount of policy may be collected by the survivors of the assured in case of his death. compensation does not depend on damage caused to the subject matter.B. Unlike general insurance. Most of them are for a term of 15 years or more. Sum of compensation is fixed. whichever is earlier.Y.

SEMESTER VI 9 .KOTAK MAHINDRA A person can take any number of life insurance policies and each and every policy is liable to pay compensation.LIFE INSURANCE . ESSENTIALS OF A VALID LIFE INSURANCE CONTRACT T.I. Assignment: a life insurance policy can be assigned to another person (the assignee).B. The assignee then gets the same rights as the policyholder. provided the other conditions are met. Nomination: in life insurance.Y.B. the assured can nominate another person who is entitled to receive the sum assured on his death.

These warranties are over and above the basic terms of the policy. Warranties may be express (stated openly) or implied (hidden).B. consideration. Special element of a valid contract of insurance: (a) Utmost good faith: both the parties should disclose all Material facts. Any breach of a warranty by either party can nullify the contract. They must be mutually agreed upon by both the parties. legal purpose etc. Insurable interest: the person taking out a policy on his own life has insurance interest but in case he wants to take a policy on another person’s life. T.LIFE INSURANCE .B. SEMESTER VI 10 .I.KOTAK MAHINDRA General elements of a valid contract: Like valid offer acceptance of an offer. must be fulfilled. Moreover. then he should have insurable interest in the other’s life. Warranties: Are ascertaining specific conditions added to the contract. competent parties. insurable interest must exist only at the time of taking out the policy and need not exist at the Time of maturity of the policy.Y.

which is agreed upon by both the parties. not enforceable in the court of law. Role 1: Life insurance as "Investment" Insurance is an attractive option for investment.they're all built into the working of the Universe. waiting to happen. ROLES OF LIFE INSURANCE Risks and uncertainties are part of life's great adventure -. many are not aware of its advantages as an investment option as well.KOTAK MAHINDRA Terms of policy: Are the specific terms and conditions.e. the nature of risk. natural disaster . Viz. Insurance products yield more compared to regular investment options. policies amount etc. Any breach of any one of the given conditions by either party can render the insurance contract (null and void) i. T.B. and this is besides the added incentives (read bonuses) offered by insurers. premium amount. Both the parties are bound by these terms. illness. theft.Y.I.B. SEMESTER VI 11 .LIFE INSURANCE .accident. All these terms must be strictly observed by both the parties. While most people recognize the risk hedging and tax saving potential of insurance. the period of time covered.

If you invest Rs 10. In life insurance.950 at 9. before comparing with other schemes.Y. One can withdraw 50 per cent of the initial deposit only after years.I. you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover. Thus. unlike non-life products. the premium you pay for an insurance policy is an investment against risk.000 in PPF.5 per cent interest over a year. Thus insurance is a unique investment avenue that delivers sound returns in addition to protection. etc) and this amount can become immediately available to the nominee of the policyholder on death. let us compare insurance as an investment options. something that is missing in non-insurance products. SEMESTER VI 12 .LIFE INSURANCE .B. the access to your funds will be limited. your money grows to Rs 10. the amount invested as premium in the policy will come back to you with added returns. you get maturity benefits on survival at the end of the term. the family of the deceased will receive the sum assured. while the rest is used for savings.B. But in this case.000 can give you an insurance cover of up to approximately Rs 5-12 lakhs (depending upon the plan. In fact. Role 2: Life insurance as "Risk cover" T. In the unfortunate event of death within the tenure of the policy. Now. age and medical condition of the life insured.KOTAK MAHINDRA You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks. The same amount of Rs 10. In other words. if you take a life insurance policy for 20 years and survive the term.

KOTAK MAHINDRA First and foremost. Designed to safeguard against losses suffered on account of any unforeseen event. To provide such protection.to help outlast life's unpredictable losses. Insurance also provides a safeguard in the case of accidents or a drop in income after retirement. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. an individual is entitled to a rebate of 20 per cent on the annual premium T. you have a wide range of products and services to choose from. SEMESTER VI 13 . insurance is about risk cover and protection . Role 3: Life insurance as "Tax planning" Insurance serves as an excellent tax saving mechanism too.financial protection. Considering the amount you have to pay now. who act as trustees to the monies. insurance firms collect contributions from many people who face the same risk. An accident or disability can be devastating. many of these can be further customized to fit individual/group specific needs. it's worth buying some extra sleep. It also comes as a great help when you retire. insurance provides you with that unique sense of security that no other form of investment provides.B. With the entry of private sector players in insurance. Further. A loss claim is paid out of the total premium collected by the insurance companies.LIFE INSURANCE . Under Section 88 of Income Tax Act 1961.I.Y. and an insurance policy can lend timely support to the family in such times. By buying life insurance. to be more precise . in case no untoward incident happens during the term of the policy. you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise.B.

making one wonder if the tax-saving purpose of life insurance has not overshadowed its other roles. (Depending upon the age of the insured and term of the policy) This means that you get an Rs 12. But these don't offer you security.LIFE INSURANCE .B.I.000. as do small saving schemes like post office deposits and national savings certificates. SEMESTER VI 14 .000 on payment of yearly premium of Rs 60. And there are other investment options that give you higher returns than insurance. The rebate is deductible from the tax payable by an individual or a Hindu Undivided Family. MYTH BUSTERS what you should know about life insurance Myth 1: Insurance is for tax saving There‘s always this rush to buy insurance policies towards the end of the financial year. By paying Rs 60. This rebate is can be availed up to a maximum of Rs 12. you can buy anything upwards of Rs 10 lakhs in sum assured. You may also avail of Tax benefits under section 80CCC with certain plans. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family. The Public Provident Fund also offers the 20% tax rebate under section 88 of the Income Tax Act. the risk cover that helps you overcome the uncertainties of life.000 a year. 1961. the tax benefits associated with life insurance policies do help make the investment more attractive.Y. The primary function of life insurance is to cover you T.B.KOTAK MAHINDRA payable on his/her life and life of his/her children or adult children.000 tax benefit. Yes.

I. A fixed deposit or even a National Savings Certificate may apparently fetch more returns than a life insurance policy.KOTAK MAHINDRA against financial losses arising out of sudden death or disability. SEMESTER VI 15 . your nominee can claim only the amount of the FD. a fixed deposit (FD) offering 9. returns and tax benefits.B. Look at security for instance.B. Myth 2: Insurance does not give good returns Insurance is different from routine investment options. If monetary returns are evaluated in isolation. is hence a good marriage of risk cover. But that's not a fair straight-line comparison.LIFE INSURANCE . But insurance offers other benefits along with returns. as an instrument. If you invest in an FD and happen to die.5% might look very good in this depressed market. you will get back the sum of the FD with the desired interest. LIFE INSURANCE – DO’S AND DON’TS DO Do find out if you have death-in-service benefits T. It also offers returns and tax savings. Life insurance. If you live.Y.

or in some cases two. even though You are a bit older.Y. T. Do remember that (with some exceptions) you have a’ cooling-off’ period of 30 days during Which you can cancel a policy. Do shop around.I. costs can vary widely For the same level of cover. After one Year. This Could cut your premium by half. many insurance Companies will give you non-smoker races. Do review your life insurance regularly.B. if any.B. Particularly when your circumstances change.KOTAK MAHINDRA Through your job and what the level of cover is. Do decide what. SEMESTER VI 16 . extra cover you need And get information on the type of policies that Meet your needs. Do consider giving up smoking.LIFE INSURANCE . DON’T Don’t cash in an existing policy in order to take Out a new one unless you have a good reason.

US and South African markets. The group has a substantial presence in the UK. You might also not be able to get new Cover if your occupation or health has changed In the meantime.B. Old mutual plc is a London-listed fortune 500 international financial services group focusing on asset gathering and asset management.B.000 general insurance policies. Its funds under management exceeded $310 billion. Established in 1984. Kotak mahindra today is one of India‘s T. SEMESTER VI 17 .LIFE INSURANCE .I. old mutual had more than 7 million life assurance policies.6 million banking customers and over 550. Don’t buy insurance that you don’t need or Already have.Y. 3. the Kotak mahindra group has long been one of India‘s most reputed financial organizations.KOTAK MAHINDRA The cost of any new cover may be higher than The policy you already have because you are Older. At 31 December 2005. it further expanded its European presence through the acquisition of skandia in early 2006. Kotak Mahindra Old Mutual Life Insurance Ltd.

For customers. and Old Mutual plc.I. this joint venture translates into a company that combines international expertise with the understanding of the local market. a company with 160 years experience in life insurance. Kotak Mahindra Old Mutual Life Insurance is a 76:24 joint venture between Kotak Mahindra Bank Ltd.6 million customer accounts.800 people in its various business and has a distribution network of branches. employs around 7. T.B. with assets under management worth $ 400 Billion as on 30th June. representative offices and satellite offices across 264 cities and towns in India and offices in New York. Old Mutual. which combines international expertise in insurance. franchisees. London. offering complete financial solutions that encompass every sphere of life. The joint venture translates into a company. 2006.LIFE INSURANCE . 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. The group services over 1. 2. advice and fund management with an understanding of the local markets.840 crore. At Kotak Life Insurance. SEMESTER VI 18 .Y.KOTAK MAHINDRA leading financial solutions. is an international financial services group listed on the London Stock Exchange and included in the FTSE 100 list of companies. Dubai and Mauritius.B. we aim to help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products. to make them financially independent. The group has a net worth of over Rs.

there are no maturity benefits payables on survival.Y. This is a non-participating plan. Since this is a pure risk cover product. a home loan etc.I.2000 Rs. WHO CAN AVAIL OF THIS PLAN? How old do you have to be to avail of Minimum age .KOTAK MAHINDRA KOTAK TERM PLAN Smart Protection for Your Family MEANING Kotak Term Plan is a pure risk product that aims to cover your life at a nominal cost.B.18 years this plan? For what term can I avail of this plan? Maximum age .10000 T.LIFE INSURANCE .30 years for regular premium 5 .B.60 years 10 . SEMESTER VI 19 . You may want to take this plan to cover your outstanding debts like a mortgage.1055 Rs.540 Rs.30 years for single premium What is the minimum premium that I Mode need to pay and at what intervals can I pay them? Quarterly Half Yearly Annually Single Premium What is the maximum age that the plan 70 years can cover you till? Amount Rs.

B. SEMESTER VI 20 . 䄒逗 ࡁࡁࡁࡁĀĀ頝鈀蒏֠萑‫ﺘ‬蘕ࡁꀋ ‫م‬Vච 虨‫ﺘ‬䩏ࡁ詑脃 Critical Illness Benefit This benefit can be added to your basic life insurance policy to provide financial support in the event of a medical emergency.) 䄒逗 ࡁࡁࡁࡁĀĀ頝鈀蒏֠萑‫ﺘ‬蘕ࡁꀋ ‫م‬Vච 虨‫ﺘ‬䩏ࡁ詑脃 Permanent Disability Benefit This benefit can be added to your basic life insurance policy to provide financial support in case of disability due to an accident. The maximum permanent disability benefit that you can avail of is equal to the basic sum assured (subject to maximum of Rs. On the first occurrence of critical illness during the term of the policy. The amount payable under this benefit would be paid out as an annuity.I.Y.KOTAK MAHINDRA KEY FEATURES 䄒逗 ࡁࡁࡁࡁĀĀ頝鈀蒏֠萑‫ﺘ‬蘕ࡁꀋ ‫م‬Vච 虨‫ﺘ‬䩏ࡁ詑脃 Accidental Death Benefit This benefit provides an additional amount (over and above the basic sum assured) to the beneficiary in the event of the accidental death of the life insured. The maximum cover available under this rider is equal to the basic Sum assured (subject to a maximum of Rs.10 lakhs. you would receive a portion of the sum assured to reduce your financial burden in this emergency.10 lakhs).B. T.LIFE INSURANCE .

you have the option to surrender the policy provided you have taken the single premium payment option.I. you are entitled to a grace period of 30 days from the date of unpaid premiums.B.  In case you forget to pay your premium by the due date.  Your Kotak Term Plan can be converted into any other plan offered by Kotak Life Insurance (except for another Term plan) provided there are at least 5 years before cover ceases. TAX BENEFITS T. you may pay your premiums either annually.Y. In case you opt for the regular premium payment option.B.KOTAK MAHINDRA ADVANTAGES  It is a low-cost insurance plan. or in half yearly or quarterly installments.  In case of a financial emergency. SEMESTER VI 21 .  You can choose between a regular premium payment option and a single premium payment option.LIFE INSURANCE .

3. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back . EXCLUSIONS In case the life insured commits suicide within 1 (one) year of the plan. 747 annually. how this plan works…Mr. Premiums paid for Critical Illness Benefit qualify for benefits under Section 80D.LIFE INSURANCE .The actual return may be different depending on a number of factors including future investment performance ON MATURITY OF THE POLICY Since this is a pure risk cover plan.B.KOTAK MAHINDRA Section 80C. his family would receive Rs. HOW DOES THIS PLAN WORK? To explain. Guaranteed Returns are marked "guaranteed" in the illustration.B.I. In the illustration. decides to buy the Kotak Term Plan for a sum assured of Rs.Y.000 for a 10 year term. SEMESTER VI 22 . T. 00.000. 10(10D) of Income Tax Act would apply. 00. Variable returns are shown at two different rates of assumed future returns. some benefits are guaranteed and some are variable.10. The annual premium that Mr. no benefits outlined in the plan would be payable. Sanjay Gupta. there are no maturity benefits. a 30-year-old male. These benefits are as per the currently prevailing tax regulations and it is advised to consult your tax advisor for details. In the event of his unfortunate death during the next ten years.10.Gupta‘s pays is Rs.

LIFE INSURANCE - KOTAK MAHINDRA The Accidental Death Benefit, Permanent Disability Benefit & Critical Illness Benefit would not be paid out in the following circumstances: Self inflicted injuries, suicide, insanity, immorality, committing any breach of law or being under the influence of drugs, liquor etc. When the life insured is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route. Due to injuries from war (whether war is declared or not), invasion, hunting, other dangerous hobbies or activities, or having been on duty in military, Para-military, security or police organization.
PROHIBITION OF REBATES

Section 41 of the

Insurance act 1938, states... (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.

(2) Any person making default in complying with the provision of this section shall be punishable with fine, which may extend to five hundred rupees.

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LIFE INSURANCE - KOTAK MAHINDRA

KOTAK MONEY BACK PLAN Live For Today and Plan for Tomorrow MEANING The Kotak Money Back Plan not only covers your life, it also assures you a certain percent of the sum assured as cash payment at regular intervals of every 5 years. It is a savings plan with the added advantage of life cover and regular cash inflow. This plan is ideal for planning special moments like a wedding, your child's education or purchase of an asset etc. This is a participating plan with profits.

WHO CAN AVAIL OF THIS PLAN? How old do you have to be to avail of this Minimum age- 18 years plan? Maximum age- 60 years

For what term can I avail of this plan?

15, 20 & 25 years

What is the maximum age that the plan can cover you till?

75 years

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LIFE INSURANCE - KOTAK MAHINDRA

KEY FEATURES
Term Benefit/ Preferred Term Benefit

In the event of death during the term of this benefit, the beneficiary would receive an additional death benefit amount, which is over and above the sum assured. The maximum Term Benefit you can avail of is equal to the basic sum assured. Where the term benefit cover applied for is more than Rs 10 lakhs, better rates may apply, subject to meeting eligibility requirements.
Accidental Death Benefit

This benefit provides an additional amount (over and above the sum assured) to the beneficiary in the event accidental death of the life insured. The maximum cover available under this benefit is equal to the basic sum assured (subject to a maximum of Rs. 10 lakhs).
Permanent Disability Benefit

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SEMESTER VI 26 . this benefit keeps the policy alive by waiving all future premiums on the policy. ADVANTAGES The plan not only covers your life but also provides you with a survival benefit payout every 5 years. T. Life Guardian Benefit This benefit can be availed of.I.B.KOTAK MAHINDRA This benefit can be added to the basic life insurance plan to provide financial support in case of permanent disability due to an accident.B.LIFE INSURANCE .10 lakhs).Y. In case of the unfortunate death of the proposer. this benefit keeps the policy alive by waiving all future premiums on the policy. you would receive a portion of the sum assured to reduce your financial burden in this emergency. only in case where the life insured and the proposer are two different individuals. Critical Illness Benefit This benefit can be added to the basic life insurance plan to provide financial support in the event of medical emergencies. Accidental Disability Guardian Benefit In case the proposer is permanently disabled as a result of an accident. The amount payable under this benefit would be paid out as an annuity. On the first occurrence of critical illness during the term of the policy. The maximum permanent disability benefit that you can avail of is equal to the basic sum assured (subject to a maximum of Rs.

You have the option of paying premiums quarterly. These benefits are as per the currently prevailing tax regulations and you are advised to consult your tax advisor for details.LIFE INSURANCE .Y. you would receive the sum of the Survival Benefit.B. Premiums paid for Critical Illness Benefit qualify for benefits under Section 80D. the beneficiary would receive the death benefit. On maturity. 10(10D) of Income Tax Act would apply. You have the benefit of a 15-day free look period. This facility is available after the first three years of the term. SEMESTER VI 27 .B. The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. T. half yearly or yearly. The death benefit keeps increases by 7% of the sum assured every year. TAX BENEFITS Section 80C. Bonus addition and guaranteed addition. The amount available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works hard for you.KOTAK MAHINDRA In the unfortunate event of death of life insured.I.

KOTAK MAHINDRA HOW DOES THIS PLAN WORK? Mr.000 Bonus Addition Variable T.150. Sanjay Gupta.B.100.34.Y.124 Survival Benefit: After 5 years Rs.100. 30 years old.000 Guaranteed addition Rs. 00. Annual Premium Rs.000 At the end of the 20 years Balance Sum Assured Rs.I.000 After 10 years Rs.200.B.5.000 After 15 years Rs. decides to buy a Kotak Money Back Plan for a sum assured of Rs. His annual premium and the payouts are outlined below.100. SEMESTER VI 28 .000 and for a term of 20 years.LIFE INSURANCE .

@6% Balance Sum Assured Rs. the maturity amount payable would be Rs.150. 10 and 15 as mentioned above. guaranteed addition and Bonus addition.I.872.000 Bonus Addition Rs.KOTAK MAHINDRA What would Mr.000 Final payout at the end of 20 years ON MATURITY OF THE PLAN Rs.200. SEMESTER VI 29 . the payout on maturity would be Rs. The table below shows the details of the payout. 900.200.510. The Accidental Death Benefit. you would receive the sum of the Survival benefit.B. Assuming that the Accumulation Account grows at a rate of 6%. 600.600 On maturity.900 Rs.510.900 Rs.522.160.872. Permanent Disability Benefit & Critical illness Benefit would not be paid out in the following circumstances: T.150. At a growth rate of 10%.Gupta receive on maturity of the plans? Mr.000 Guaranteed addition Rs. EXCLUSIONS In case the life insured commits suicide within 1 (one) year of the plan.000 @10% Rs.B. no benefits outlined in the plan would be payable.000 Rs.Y.LIFE INSURANCE .Gupta would get cash flows in year 5.

(2) Any person making default in complying with the provision of this section shall be punishable with fine. When the life insured is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route. Due to injuries from war (whether war is declared or not). which may extend to five hundred rupees. 1938 states: (1) No person shall allow or offer to allow.B. invasion.KOTAK MAHINDRA Self inflicted injuries.Y. PROHIBITION OF REBATES Section 41 of the Insurance Act. immorality. suicide. KOTAK ENDOWMENT PLAN Savings cum Protection Plan to Ensure an Independent Future T.LIFE INSURANCE . hunting. any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy.I. security or police organization. insanity. as an induce men to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India. or having been on duty in military. Para-military. nor shall any person taking out or renewing or continuing a policy accept any rebate. SEMESTER VI 30 . other dangerous hobbies or activities. except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. either directly or indirectly. liquor etc. committing any breach of law or being under the influence of drugs.B.

65 years 10-30 years 75 years T.KOTAK MAHINDRA MEANING Kotak Endowment Plan is a protection plan that covers your life and at the same time ensures that your money does not lie idle.18 years this plan? For what term can I avail of this plan? What is the maximum age that the plan can cover you till? Maximum age .B. This is a participating plan (with profits).I.Y.B. It invests a portion of your premium in financial instruments and ensures a considerable growth in savings. SEMESTER VI 31 . WHO CAN AVAIL OF THIS PLAN? How old do you have to be to avail of Minimum age .LIFE INSURANCE .

The maximum cover available under this benefit is equal to the basic sum assured (subject to a maximum of Rs. The maximum Permanent Disability Benefit that you can avail of is equal to the basic sum assured (subject to a maximum of Rs.Y.KOTAK MAHINDRA KEY FEATURES Term Benefit / Preferred Term Benefit In the event of death during the term of this benefit.10 lakhs). The maximum term benefit you can avail of is equal to the basic sum assured. subject to meeting eligibility requirements. which is over and above the sum assured. Critical Illness Benefit This benefit can be taken with the basic life insurance policy to provide financial support in the event of medical emergencies. you would receive a portion of the sum assured to reduce your financial burden in this emergency.I.LIFE INSURANCE . Where the Term Benefit cover applied for is more than Rs.B. the beneficiary would receive an additional death benefit amount. Permanent Disability Benefit This benefit provides financial support in case of your permanent disability due to an accident. Accidental Death Benefit This benefit provides an additional amount (over and above the basic sum assured) to the beneficiary in the event of the accidental death of the life insured.10 lakhs).10 lakhs. On the first occurrence of critical illness during the term of the policy. T. The amount payable is over and above the basic sum assured and would be paid out as an annuity. better rates may apply.B. SEMESTER VI 32 .

in excess of the sum assured. The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. Accidental Disability Guardian Benefit In case the proposer is permanently disabled as a result of an accident. you would receive the sum assured plus the bonus addition. you would receive the sum assured plus the bonus addition. only in a case where the life insured and the proposer are two different individuals. The amount available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works harder for you.I.B. SEMESTER VI 33 . On maturity. T. this benefit keeps the policy alive by waiving all future premiums on the policy. Bonus addition is the amount in the Accumulation Account. This facility is available after the first three years of the term.B.Y.LIFE INSURANCE .KOTAK MAHINDRA Life Guardian Benefit This benefit can be availed of. ADVANTAGES On maturity. The amount available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works harder for you. In case of the unfortunate death of the proposer. This benefit is available also where the life insured is the proposer. this benefit keeps the policy alive by waiving all future premiums on the policy.

You have the benefit of a 15-day free look period.B. 10(10D) of Income Tax Act would apply. Gupta decides to take the Life Guardian Benefit as a rider to the plan. after the policy has been in force for at least three years. who is aged 28.KOTAK MAHINDRA The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. HOW DOES THIS PLAN WORK? Mr. 10 or 15 years. 5. 7.LIFE INSURANCE . SEMESTER VI 34 .Y. The annual premiums paid by Mr. 00.B. Mr. You can take a loan against your policy. Premiums paid for Critical Illness Benefit qualify for benefits under Section 80D. who is 30 years old. These benefits are as per the currently prevailing tax regulations and you are advised to consult your tax advisor for details.I. half yearly or yearly. decides to buy a Kotak Endowment Plan for a sum assured of Rs. He does this to provide enhanced security and protection to his wife. Sanjay Gupta. Gupta are as follows T. This facility is available after the first three years of the term.000 for a 20-year term for his wife. TAX BENEFITS Section 80C. 5. You also have the flexibility to pay premiums through the full term of the policy or pay it for a fixed term of 3. You have the option of paying premiums quarterly.

whichever is higher. At the same time does not burden you with the liability to pay premiums for that entire term. but also.106 23.Y. you may not be sure about your future incomes.KOTAK MAHINDRA Amount (Rs.) Kotak Endowment Plan Premium Life Guardian Benefit Premium Total Annual Premium Paid ON MATURITY OF THE POLICY On maturity Sanjay Gupta would receive the sum assured or Accumulation Account.B.658 You to Bonus Addition for the entire term of the plan.LIFE INSURANCE .552 1. LIMITED PREMIUM PAYMENT OPTION Your life is uncertain and with rising costs and economic instability.I.  22. SEMESTER VI 35 .B. FOR WHAT TERM CAN I AVAIL OF THE PLAN T. at the same time gives you the flexibility to choose a premium term such that you pay premiums during the period that you are certain of a secure income. The Limited Premium Payment (LPP) option in the Kotak Endowment Plan: Covers you for a term (years) of your choice. You need a product that not only offers you a cover for the term that you want.

HOW DOES LPP OPTION WORK? Jiten is a TV actor. Thus he pays premium for 3 years and gets protection and Bonus Addition for a Period of 15 years. Jiten/ his beneficiaries would receive the sum Assured plus the bonus addition (if any).1crore for 15 years.I.B. while enjoying the life cover for the entire policy term. In the event of maturity/death. he can choose to limit the premium paying term on his policy to 3 years. He wants to buy the Kotak Endowment Plan of Rs. However. SEMESTER VI 36 . to be able to afford the premiums. BENEFITS OF LPP OPTION You can pay off all premiums over a short period of time and be free from paying premiums for the rest of the policy term. T. 10. 7.LIFE INSURANCE .KOTAK MAHINDRA You may take a policy of term raging from 10 to 30 years. However. But Jiten is not worried because with the Kotak Endowment Plan. aged 30 years. 5. you may opt for a limited premium payment term of 3.B. The Premium payment term must be less than the policy term.Y. he is not too sure if his income would remain the same for 15 years. or 15 years.

KOTAK MAHINDRA Enjoy the benefits of bonus additions for the entire term of the policy. nor shall any person taking out or renewing or continuing T. no benefit outlined in the plan would be payable. When the life insured is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route. liquor etc. either directly or indirectly. Due to injuries from war (whether war is declared or not). SEMESTER VI 37 . EXCLUSION In case the life insured commits suicide within 1 (one) year of the plan.I. 1938 states:No person shall allow or offer to allow. invasion. other dangerous hobbies or activities. Permanent Disability Benefit & Critical Illness Benefit would not be paid out in the following circumstances: Self-inflicted injuries. PROHIBITION OF REBATES Section 41 of the Insurance act. as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India. insanity. Para-military. immorality of the proposer.B. or having been on duty in military.Y. or his committing any breach of law or being under the influence of drugs.B. security or police organization. any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy.LIFE INSURANCE . The Accidental Death Benefit. hunting. suicide.

Y. Any person making default in complying with the provision of this section shall be punishable with fine. which may extend to five hundred rupees.LIFE INSURANCE . T. except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.B.I. SEMESTER VI 38 .B.KOTAK MAHINDRA a policy accept any rebate.

60 years 5 yrs . It gives you the choice to remain independent even after retirement.KOTAK MAHINDRA KOTAK RETIREMENT INCOME PLAN So you‘re Tomorrow Is Better Than Your Today. It is a plan that gives you "Jeene ki azaadi".B.30 yrs How old do you have to be to receive Minimum Age . MEANING The Kotak Retirement Income Plan is a savings plan designed to meet your post-retirement needs.B.I. The plan comes in two forms: (I) With Cover (II) Without Cover.45 yrs your annuity? At what intervals can you pay the premium? Maximum Age – 65 yrs Quarterly Half Yearly Annually T. The Kotak Retirement Income Plan is a participating plan. WHO CAN AVAIL OF THIS PLAN? How old do you have to be to avail of Minimum age .LIFE INSURANCE .18 years this plan? For what term can you choose to pay the premiums? Maximum age .Y. SEMESTER VI 39 .

subject to meeting eligibility requirements. Critical Illness Benefit T. which is over and above the Basic Sum Assured.I. SEMESTER VI 40 . your beneficiary will receive an additional benefit.B. the beneficiary would receive an additional Death Benefit amount.LIFE INSURANCE .Y.KOTAK MAHINDRA KEY FEATURES Term/ Preferred Term Benefit In the event of death during the term of this benefit. The maximum amount of benefit you can avail of is equal to the Basic Sum Assured.10 lakhs. 10 lakhs). The maximum Accidental Death Benefit you can avail of is equal to the Basic Sum Assured (subject to a maximum of Rs. Where the Term Benefit cover applied for is more than Rs. which is over and above the Sum Assured.B. Accidental Death Benefit In the event of death as a result of an accident during the term of this benefit. better rates may apply.

. The maximum benefit available under this plan is equal to the Basic Sum Assured (subject to a maximum of Rs.LIFE INSURANCE .B. This is available only where the proposer and the life insured are two different individuals Accidental Disability Guardian Benefit T.B. the Basic Accumulation Account would reduce in the same proportion and future premiums for the plan would be recalculated based on the reduced Sum Assured. SEMESTER VI 41 . and are permanently disabled. The maximum Critical Illness Benefit Sum Assured you can avail of is equal to the Basic Sum Assured (subject to a limit of Rs. Permanent Disability Benefit If you meet with an accident during the term of this benefit.20 lakhs). Once the addition is made to the Supplementary Accumulation Account.I.Y. This amount will be added to the Supplementary Accumulation Account and will be available on retirement. you would be entitled to an additional amount. the Critical Illness Benefit Sum Assured will be added to the Supplementary Accumulation Account. Life Guardian Benefit In case of the unfortunate death of the proposer.KOTAK MAHINDRA In case of the first occurrence of a critical illness during the term of this benefit. the Basic Sum Assured would reduce by the Critical Illness Benefit Sum Assured. this benefit keeps the policy alive by waiving all future premiums on the policy. which is over and above the Basic Sum Assured.10 lakhs).

whichever is higher. SEMESTER VI 42 . created for "lump-sum injections".B. For a "With Cover" plan.I. Annuity Options: You may buy an annuity either from Kotak Life Insurance (subject to the choice and rates available at that time).LIFE INSURANCE .B. and the balance of the benefit you are eligible for will be used to buy an annuity of your choice. On Retirement: You may take a lump sum in cash of up to a third Basic Sum Assured or Accumulation Account. This facility is available after the first three years of the term. A Supplementary Accumulation Account will be created for this.Y. which ensures that the cover remains in force even when you miss the premium payments. if the need arises. You can make lump-sum injections into your policy at any time before retirement (such lump-sum injections during a year may not exceed 25% of the Basic Sum Assured).KOTAK MAHINDRA In case the proposer is permanently disabled as a result of an accident. this benefit keeps the policy alive by waiving all future premiums on the policy. You have the option of paying premiums in quarterly. This is available only when the proposer and the life insured are two different individuals ADVANTAGES You can choose to retire at any age between 45 yrs and 65 yrs. or from any other insurer. you have the facility of Automatic Cover Maintenance. T. and will be paid out in the same manner as other benefits. You may exercise the option of paying premiums from the Supplementary Accumulation Account. half-yearly or yearly installments.

Premiums paid for Critical Illness Benefit qualify for benefits under Section 80D.KOTAK MAHINDRA You have the facility of a 15-day free look period TAX BENEFITS Section 80C. and (b) Accumulation Account. in accordance with the beneficiary's choice. and provide commutation benefit. and provide commutation benefit.B.I. This is used to buy an annuity.LIFE INSURANCE . For the "Without Cover" Plan: The benefits to the beneficiary will be. and (b) Accumulation Account. 10(10D) of Income Tax Act would apply. greater of: (a) Return of premiums (without interest). (a)What Happens In The Event Of The Death Of The Life Insured Before Retirement? For the "With Cover" Plan: The benefits to the beneficiary will be. greater of: (a) Sum Assured less all the premiums due but not paid. in accordance with the beneficiary's choice.Y. SEMESTER VI 43 .B. This will be used to buy an annuity. HOW DOES THIS PLAN WORK? T.

Y.500. He takes the Kotak Retirement Income Plan with a Basic Sum Assured of Rs. then the fund available to him will be Rs. Under Option B.600. Assuming that Mr. Assuming that it grows at 10%.325 (a) What is the benefit available to Mr. Mehta's Accumulation Account grows at 6% p.KOTAK MAHINDRA Mr.B. Assuming that it grows at 10%. 8.a.Option B.000. 70.a.818 cover) Accidental Death Benefit premium Rs 265 Option B Rs 9. the fund available to him will be Rs.750 Term Benefit premium (3 lakhs of Rs 1. 8. He considers the following two options.Mr. SEMESTER VI 44 . who wishes to retire at age 60.I.000. 4. and "Without Cover" . Mehta's Accumulation Account grows at 6% p. 63. 67. then the fund available to him will be Rs.568 Rs 9. Mehta is a 35-year-old man.060 (3 lakhs of cover) Total Annual Premium Paid Rs 11.LIFE INSURANCE . 56. 3 lakhs. Assuming that Mr. "With Cover" . T.Option A. and buy an annuity with the remaining benefit. Mehta on retirement? Under Option A. Mehta may commute up to a third in cash immediately.4.B. Option A Kotak Retirement Income Plan premium Rs 9. the fund available to him will be Rs.

3 lakhs or the balance in the Accumulation Account. Mr. and buy an annuity with the remaining benefit. 75. and buy an annuity with the remaining benefit. and Rs. Mehta after 15 years? Under Option A.KOTAK MAHINDRA Mr. Mr. Mehta may commute up to a third in cash immediately. as Mr. Mehta's beneficiary will be eligible for the greater of Rs. for it. and buy an annuity from the remaining benefit. then his beneficiary will receive an additional Rs. Mehta's death has been due to an accident. The beneficiary may commute up to a third in cash immediately. Mehta's beneficiary will be eligible for Rs. Under Option B.a. SEMESTER VI 45 . 95. The beneficiary may commute up to a third in cash immediately. Mehta availed of this value-add by paying a nominal premium of Rs. He/she will also receive an additional Rs. 818 p. The balance in the Accumulation Account will be less than Rs.1.I.400 if his Accumulation Account grows at 6% per annum.3 lakhs under the "Term Benefit" as Mr.265 p. (b) What is the benefit available in the event of the unfortunate death of Mr.600 if his Accumulation Account grows at 10% per annum.a.B. 2.Y.B. In the event that Mr. EXCLUSION T.3 lakhs under the "Accidental Death Benefit". 1. 3 lakhs even if the accumulation account grows at 10% per annum.LIFE INSURANCE . Mehta availed of this value-add by paying a minimal premium of Rs. for it.

either directly or indirectly.LIFE INSURANCE .B. Para-military. immorality. as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India.B. 1938 states: (1) No person shall allow or offer to allow. The Accidental Death Benefit.I. committing any breach of law or being under the influence of drugs. suicide. no benefits outlined in the plan would be payable. Permanent Disability Benefit. (b) When the life insured is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route. hunting.KOTAK MAHINDRA In case the life insured commits suicide within 1 (one) year of the plan. mountaineering. PROHIBITION OF REBATES Section 41 of the Insurance Act. liquor etc. invasion. or having been on duty in military. motor racing of any kind.Y. other dangerous hobbies or activities. security etc. T. Critical Illness Benefit & Kotak Accidental Disability Guardian Benefit would not be paid out in the following circumstances: (a) Self inflicted injuries. except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. nor shall any person taking out or renewing or continuing a policy accept any rebate. (c) Due to injuries from war (whether war is declared or not). insanity. SEMESTER VI 46 . any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy.

which may extend to five hundred rupees. T. SEMESTER VI 47 .I.Y.KOTAK MAHINDRA (2) Any person making default in complying with the provision of this section shall be punishable with fine.B.B.LIFE INSURANCE .

Y. get in touch with a Life Advisor at any of the Kotak Life Insurance branch offices.KOTAK MAHINDRA 5 EASY STEPS TO BUYING A POLICY Initially. T. Once you have decided on all the above parameters.LIFE INSURANCE . SEMESTER VI 48 .I. calculate the exact amount of insurance that you need. Calculate the premium that you need to pay on the basis of the product that you have decided to buy. The Life Advisor will notify the list of financial documents required for the same. In addition to a proposal form. you need to submit some financial documents that are required in order to buy a policy.B. The Life Advisor will assist you in filling up a proposal form.B. Decide which product suits you best based on your life stage and need.

I.5 bn (excluding riders).7 1.6 1.000 individual policies on books representing a basic sum assured of around Rs.047.4) 2.209.5) (169. Q3FY07 (3M) Q3FY06 (3M) Q2FY07 (3M) YTDFY07 (9M) YTDFY0 6 (9M) FY06 (12M) Gross premium income Loss (175.MILLION.7) (120. SEMESTER VI 49 .3) (420.6 mn in Q3FY07 from Rs.2bn. Additionally.B.1) (432.5 5.209.Y. 2006 KLI had over 248. T. 1.678.132.132.5 Kotak Life Insurance (KLI) premium income grew 76% to Rs 2. KLI had around 198 group policies covering over 324000 lives with an aggregate sum assured of around Rs 91.218.KOTAK MAHINDRA Q3 RESULT Kotak Mahindra Old Mutual Life Insurance – Life Insurance RS. 103.LIFE INSURANCE .7 2. KLI has a network of 65 branches in 44 cities (44 branches as on March 06).0) (482.4 6.578. As on December 31.7 mn in Q3FY06.B.

LIFE INSURANCE .I.500 branches across the country. Along with its 7 Associate Banks. SBI Life Insurance is registered with an authorized capital of Rs 500 crore and a paid up capital of Rs 500 crores. the largest in the world.Y.B. Cardif is a wholly owned subsidiary of BNP Paribas.B. BNP T. SEMESTER VI 50 . SBI owns 74% of the total capital and Cardiff the remaining 26%.KOTAK MAHINDRA SBI LIFE INSURANCE SBI Life Insurance is a joint venture between the State Bank of India and Cardiff SA of France. State Bank of India enjoys the largest banking franchise in India. SBI Group has the unrivalled strength of over 14. which is The Euro Zone‘s leading Bank.

Cardif is ranked 2nd worldwide in creditor‘s insurance offering protection to over 35 million policyholders and net income in excess of Euro 1 billion mark.LIFE INSURANCE . Cardif has also been a pioneer in the art of selling insurance products through commercial banks in France and 34 more countries. SEMESTER VI 51 . SBI Life Insurance‘s mission is to emerge as the leading company offering a comprehensive range of Life Insurance and pension products at competitive prices.B. SBI‘s access to over 100 million accounts provides a vibrant base to build insurance selling across every region and economic strata in the country The Entire Life Insurance Product Offered By Insurance Companies Are Different From Other Company.I. ensuring high standards of customer service and world class operating efficiency. SBI Money Back Plan Different period 3 or 4 years guaranteed survival Kotak T. Money Back Plan Vs SBI Money Back Plan Points Guarantee Kotak Money Back Plan 5 years guaranteed survival benefit is payable. SBI Life Insurance is uniquely placed as a pioneer to usher Bancassurance into India. Let Us See How the Kotak‘s Life Insurance Product Differ from SBI‘s Life Insurance Product.Y. The company hopes to extensively utilise the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans.B.KOTAK MAHINDRA Paribas is one of the oldest foreign banks with a presence in India dating back to 1860.

—18yrs Min.12.15% .—65 yrs Max. Age Entry Premium Min. 55 yrs.40% Minimum age Maximum age Minimum age of entry – 18 yrs. 000 Max. Min. years. 10th year 15th year .Rs.15% 20th year . No limit T.B.pension cum life cover. Regular premium payment & single premium payment. 60yrs. Min.with cover. 50% to next 15th year.15% 25th year th 10% at 3rdyear 20% at 9thyear. I:-pure option.25% .—30 yrs SBI ENDOWMENT PLAN Min.--30 yrs Sum + all bonuses. assured In event of death nominee will receive basic sum assured or accumulated assured which ever is higher Premium Payment Regular premium payment.10% .15% . Maximum age of entry – 60 years.10. option: - without cover. Rs.B. Min 18 yrs. SEMESTER VI 52 .—65 yrs Max.KOTAK MAHINDRA benefit. 000 annually.Y. 15 year plan 25% of basic sum assured payable at 5 years.I.LIFE INSURANCE .—8yrs Max. KOTAK PENSION PLAN VS SBI PENSION PLAN POINTS Plan Option KOTAK PENSION PLAN SBI PENSION PLAN Kotak pension plan offers us in SBI pension plan offer in two three versions: . Max.55% + bonus 15 years (same for all the plan) Option 1-60 years.15% 20th year . 5th year . 15% at 6thyear 25% at 45% at 15th year. single premium.—12yrs Min. Same it to next 10th year. 12thyear 5th year . II: . 18 yrs. Max.20% 25th year 25 year plan Option 2-55 Maximum maturity age Kotak Endowment Plan Vs SBI Endowment Plan POINTS Age Entry Term Death Benefit 70 years 75 years KOTAK ENDOWMENT PLAN Min. 10th year 15th year .—10yrs Max.

Of 10yrs. Rs.:-45 yrs. Maturity Age Min.000/.10.B. SEMESTER VI 53 . Of 10 yrs.000 Min. Of 52 yrs.1. Cumulative top up premium(s) in a policy yrs is limited to twice the annualized premium during that policy yr. Max.Rs. Top-UpPremium Min. Min.in multiple of Rs. Max.KOTAK MAHINDRA Term Plan Min.Y. Max:-70 yrs. Of 30 yrs. T.LIFE INSURANCE .B.100/Max. (single premium-5yrs. Min.I.:.:-50 yrs.75 yrs.) Max.

SEMESTER VI 54 .I. At What Age you‘ll prefer to take life Insurance Plan? _____________________________ T.Y. Grade the Above Policy According To Your Needs from 1-10? Term Plan Pension Plan Money Back Plan Endowment Plan 6.KOTAK MAHINDRA SURVEY FORM SHRI CHINAI COLLEGE OF COMMERCE & ECONOMICS Questionnaire for Survey of Kotak Mahindra – Life Insurance Name: Designation: 1.B. Do You Have Any Kotak Life Insurance Plan? ____________________________________ 5.LIFE INSURANCE .:-__________ 3.______________________ 4. Are You Aware Of Insurance? Yes 2. Do You Have Life Insurance Plan Of Any Company? If Yes Than Which Co. Which Company Do You Prefer? Private Public No Contact No.B.

95 0.81 1.KOTAK MAHINDRA 7.Y.02 0.I.B.89 1. Give Your Comments On Kotak Mahindra Life Insurance? _______________________________________ Project Guide Prof.Nishikant Jha (Co-ordinator) SURVEY RESULT Market share of life Insurance company Market Share of Life Insurance Market Share (%) Company LIC ICICI Prudential Bajaj Allianz SBI Life HDFC Standard Birla SunLife Tata AIG Max New York Aviva Kotak Mahindra ING Vysya Reliance Life MetLife 79.LIFE INSURANCE .Y.I) T.57 0.19 2.05 0.B.77 0.32 Prepared By Amit Panwar (T. SEMESTER VI 55 .65 5.24 1.B.73 4.B.59 0.

KOTAK MAHINDRA Sahara Life 0. SEMESTER VI 56 .I.Y.LIFE INSURANCE .03 LIC ICICI Prudential Bajaj Allianz SBI Life HDFC Standard Birla SunLife Tata AIG Max New York Aviva Kotak Mahindra ING Vysya Reliance Life MetLife Sahara Life Market Share (%) Are You Aware Of Insurance? 78% YES OUT OF WHICH 70% ARE INSURED 22% NO YES Aware and having insurance NO T.B.B.

B. Grade the Above Policy According To Your Needs from 1-10? Term Plan Money Back Pension Plan Endowment Plan T. SEMESTER VI 57 .LIFE INSURANCE .63% Private ---.37% 70 60 50 40 30 20 10 0 Public private Series1 Do You Have Life Insurance Plan Of Any Company? 80 Lic 60 40 20 0 1 Lic Others icici predential Sbi Kotak Others 5.I.B.Y.KOTAK MAHINDRA Which Company Do You Prefer? Public ---.

At What Age you‘ll prefer to take life Insurance Plan? 20-30 ---.63% 40-50 ---.5% 30-40 ---.30% 50 & Above ---.Y.B.I.LIFE INSURANCE .2% Pension Plan 20-30 30-40 40-50 50-above T.B. SEMESTER VI 58 .KOTAK MAHINDRA 5 4 3 2 1 0 Series1 Series2 Series3 Endowment Plan Term Plan Money Back Plan 6.

) (fig.3.6) FAQ’S frequently asked questions? "Is there any policy where I can receive money during the tenure of the policy?" T. Almost 63% are to be insured at the age of between 20-30 years.4.NO.1.no.KOTAK MAHINDRA SURVEY REPORT I have conducted survey for the project which will give me a practical knowledge about insurance amongst general public.73% business in India. SEMESTER VI 59 . Because the company has not advertise themselves properly in the market which is the key for the success among its competitors. While doing survey I have also noticed some of the point which is very important for the kotak mahindra as well as for all the insurance companies conducting their business in India. (fig.) The second largest market share is of ICICI Predential having market share of around 5.I. (fig. It will take time for the kotak mahindra to establish fully in India to compete with all other insurance companies.) Amongst the entire insurance product offered by kotak mahindra or by some other companies‘ people are interested to take money back plan as its give guarantee of return of money in its maturity or death . 9% are insured with ICICI Predential that of 3% are insured with kotak mahindra. (fig.e.5.(FIG.63% which is the highest among all the insurance company in India.LIFE INSURANCE . (fig. In the third figure we can see that almost 63% like to be insured with the public company.) I have noticed that 78% are insured with LIC. I have also noticed that customer is not much aware about kotak mahindra as insurance company.) Whereas. 22% are not aware of insurance. Whereas kotak mahindra share the 10th position of market share i.B.2. In the second figure we can see that almost 78% people are aware of insurance & out of which 70% are insured with some of the insurance company in India. its business in amongst all 14th insurance companies in India. Whereas 37% like to be insured with the private company. I have noticed that around 80% of the general public has been insured by LIC the basic reason behind this is that LIC is the public company and policy holders have faith in public company.Y.B. The LIC is the most leading companies in insurance sector having market share of around 79.no.

"How safe is my investment with Kotak Life Insurance? OR how are the premiums collected invested by Kotak Life Insurance?" Kotak Life Insurance's investment portfolio has been created in accordance with the IRDA guidelines on investment by a Life Insurance Company.B. This option is suitable for people who are sure of secured income only for a specified period of their earning life during which they want to pay off all their premiums T. there is a Limited Premium Payment (LPP) option. SEMESTER VI 60 . Kotak Money Back Plan.LIFE INSURANCE . a Money Back Policy. 10 or 15 years after which premium payment ceases but the cover continues for the entire tenure of the policy.KOTAK MAHINDRA Yes. If you outlive the policy. the balance sum assured along with accumulated bonus is paid back to you. an overseas holiday.I. children's educational needs. "Is there any option where I can restrict my premium payment for a lesser number of years than the duration of the policy?" Yes. The risk cover continues for the entire sum assured in spite of the installments already paid. 5. 7. marriage expenses.B. Under this option you can take a policy for 10 to 30 years and opt for paying premiums for 3. With the Kotak Endowment Plan. etc. This is an anticipated endowment policy with an additional feature of receiving a benefit at regular intervals during the tenure of the policy.Y. This is suitable for you if… You plan to coincide the funds received from the policy with your future anticipated needs like a car. For example.

B. This premium will get credited to an Accumulation Account. The premium that you pay on your insurance policy is mainly dependant upon two things . Let‘s understand how these work… Every year you will pay premium on your policy. which helps you to regularly invest your savings during your earning life in order to build up a retirement corpus to take care of your post retirement needs. SEMESTER VI 61 . you can buy an annuity. At younger age. you would be physically sound and may not be suffering from illnesses/ medical. Kotak Retirement Income Plan. "What will I receive on maturity of my policy?" On maturity. This is a pension plan. Further you may be eligible for a tax deduction on the premiums paid up to Rs 10.your age and the tenure of the policy.LIFE INSURANCE . "Are there any advantages in buying insurance at an early age?" Yes. This would entitle you to a lower premium on the policy. you will receive the sum assured or the Accumulation Account whichever is higher. which is tax-free and for the balance amount.Y. T. Therefore it is advisable to buy insurance at an early age to reduce the cost of insurance.000 (as per current tax provisions) per financial year under section 80CCC of the Income tax Act. The younger you are.B. On retirement you can withdraw up to one-third of the Accumulated Account. the lower is your insurance premium amount.KOTAK MAHINDRA "Is there any policy with which I can plan for my retirement?" Yes. .I.

The balance will be invested in sound financial securities (as per IRDA regulations) on your behalf.LIFE INSURANCE . At the end of the policy tenure. If you fail to pay the premium on your policy within this grace period your policy will lapse. then shall entail submission of proof of good health and your premiums will be recalculated. T. every year the value in your Accumulation Account will get compounded. you can still revive the policy within 5 years from the date of issue of policy.KOTAK MAHINDRA The amount required towards your life cover expenses and any other expense would be deducted from this Account. This facility is available for six months. you would receive the amount in the Accumulation Account or the sum assured. Thus. However.B. "What will happen to my policy if I miss a premium Payment due date?” Kotak Life Insurance offers a grace period of 30 days after the premium payment due date for paying the outstanding premium. But if you are applying for revival of your policy in this period. The bonuses declared each year by the company would be added to the Accumulation Account.Y.B. SEMESTER VI 62 . whichever is higher.I. You can revive your lapsed policy by paying your outstanding premium and 6% handling charges.

Y.B. then your policy will get serviced out of your balance in your Accumulation Account.I. 10. "How else does life insurance help?" The primary need is buying financial security for your family. you must pay premiums to the life insurance company. You could pay these premiums monthly/ half-yearly/ annually/ or as a single premiums.B. (Available with Kotak Retirement Income Plan only) As a tool of financial planning T. Premiums paid towards pension policies get a 100% tax rebate under section 80CCC up to Rs.000 per annum get a tax rebate (subject to certain conditions) under Section 88. Every year the amount in this Accumulation Account will be used to covering your life (mortality charges and other expenses) will be deducted from your accumulated fund. sum assured and your age. "How much does life insurance cost?" In order to buy a life insurance policy.LIFE INSURANCE . SEMESTER VI 63 . This will continue till this fund has sufficient balance after which your policy will be terminated. 70. if your policy has been in force (in existence with all premiums paid on time) for three years and after that you fail to pay the premium.000 per year. Other aspects that insurance helps fulfill are: Tax benefits Life Insurance premiums paid up to Rs. The amount of premiums payable depends upon the type of policy.KOTAK MAHINDRA However. term of policy contract.

5. coronary bypass. etc. vital organ transplants.I. Insurance provides you the option of covering yourself towards any critical illnesses that can become extremely costly. Kotak Child Advantage Plan. Choosing this facility pays you a lump sum upon diagnosis of certain diseases like cancer. stroke. In case of your unfortunate death the loans may be repaid from the proceeds of the life insurance policy. 10 or 15 years after which premium payment T.LIFE INSURANCE . Without insurance. paralysis. there is a Limited Premium Payment (LPP) option. "Is there any option where I can restrict my premium payment for a lesser number of years than the duration of the policy?" Yes. Kotak Preferred Retirement Plans. kidney failure. Under this option you can take a policy for 10 to 30 years and opt for paying premiums for 3. Kotak Money back Plan.Y.B. This can be provided with our Critical Illness Benefit. 7. Alzheimer's disease. With the Kotak Endowment Plan. you can actually face a situation where you have withdrawn all your money and borrowed to pay the medical bills. Savings Insurance promotes compulsory savings with regular premium payments and helps build up a corpus of funds along with financial security for the dependants in case of premature death. Plans like the Kotak Endowment Plan. SEMESTER VI 64 . Collateral security for loans You may avail of a loan from the insurance company against certain plans. etc allow you to meet your dual financial goals of life cover and Savings for the future.KOTAK MAHINDRA Most insurance plans available today have a built in savings element. Your policy could also be pledged as collateral to raise funds from banks and other financial institutions.B. heart attack. For your medical needs and that of your family Hospitalization costs and quality healthcare is becoming increasingly expensive.

" he said. The company already had tie-ups with 24 urban co-operative banks to distribute its products.Y." he said.I.B.KOTAK MAHINDRA ceases but the cover continues for the entire tenure of the policy. "We are planning to have rural tie-ups for distributing our policies. said. primary agricultural co-operative societies (PACS). he said the company found non-governmental organisations as the right channels. "We do have credible intermediaries in such NGOs. Addressing a press conference here on Friday. NGOs and self-help groups to sell its products in the rural areas. Dec. T. This option is suitable for people who are sure of secured income only for a specified period of their earning life during which they want to pay off all their premiums NEWS ARTICLES KOTAK LIFE LOOKING FOR RURAL TIE-UPS Our Bureau Hyderabad.LIFE INSURANCE . 15 Kotak Life Insurance is looking at roping in co-operative banks.B. "We are going to open branches in Vijayawada and Visakhapatnam in the next few months." Mr Gaurang Shah. SEMESTER VI 65 . Mr Shah was here in connection with the launch of company's 63rd branch and the third in Hyderabad at Himayatnagar. Managing Director.

" Mr Shah added.B. KOTAK LIFE POSTS 122-PC GROWTH IN H1 Our Bureau Mumbai. according to a company press release. Oct. as the latter has a strong base of share trading clients.2 million. The tie-up would enhance Kotak's presence.B.000 life advisors. SEMESTER VI 66 . It would focus on consolidating Kotak's presence in the region. It has 55 branches with a team of about 14. KOTAK LIFE ENTERS VIZIANAGARAM Our Bureau Hyderabad. With a population of 2. The first T. the release said.LIFE INSURANCE . 27 Kotak Life Insurance has made a foray into Vizianagaram district of Andhra Pradesh through a tie-up with Sakshi Investments. the district is fast becoming a commercial hub. Oct. Sakshi Investments would offer a wider array of products including insurance. Kotak Life is focused on the top 30-40 cities.KOTAK MAHINDRA "We are going to infuse Rs 20 crore to raise the capital to Rs 360 crore by the end of the fiscal.I.Y. 23 Kotak Mahindra Old Mutual Life Insurance has registered a 122 per cent growth in first year premium for the half year ended September 30.

"The infused capital would be used as per the prudent capital adequacy norms towards augmenting Kotak Life Insurance's business volumes and its network. SEMESTER VI 67 .B. "Kotak Life Insurance manages Rs 1. and Kotak Life Insurance." said Mr Gaurang Shah. against Rs 70. The Adjusted Premium Equivalent method. 2006 rose to Rs 142.Kotak Life Insurance is present in 35 cities with 12." the company said in a release.335 crore in assets of which.B.LIFE INSURANCE .70 crore.Y. approximately 40 per cent is in equity.133 employees T. Kotak Mahindra Bank and Old Mutual. June 26 Kotak Life Insurance has increased its share capital by Rs 20 crore to Rs 317 crore. takes into account only 10 per cent of single premium. Regular premium during April-September. have infused additional funds as per their shareholding in the joint venture. We will continue to build on our distribution strengths to improve profitability and deliver long-term value. increased to Rs 163.78 crore (Rs 73.The promoters.KOTAK MAHINDRA year premium calculated by the Adjusted Premium Equivalent Method.500 life advisors and 2.83 crore). MD.26 crore in the corresponding period last year.I. KOTAK LIFE RAISES CAPITAL BASE Our Bureau Mumbai.

Y. However. T." said a release from the company." he said.I." he said. This product alone has raked in Rs 112 crore in premium. has grown from Rs 209 crore in 2004-05 to Rs 366 crore in 2005-06.KOTAK MAHINDRA KOTAK LIFE POSTS 100% PREMIUM INCOME GROWTH Our Bureau Mumbai. we are riding on the infrastructure to penetrate deeper to semi-urban areas. SEMESTER VI 68 . April 15 Kotak Mahindra Old Mutual Life Insurance (Kotak Life) has registered a 100 per cent growth in its regular premium income at Rs 349 crore in 2005-06. Kotak Life. from Rs 174 crore in 2004-05. has seen tremendous success in the last quarter.B. said that around 60 per cent of the company's business came in the last quarter buoyed by the success of its newly introduced capital guarantee product. single premium income fell to Rs 33 crore from Rs 180 crore in the same period. Bancassurance tie-ups with Kotak and other banks added Rs 150 crore to the new business. Adjusted premium equivalent "The adjusted premium equivalent. Mr Gaurang Shah. Managing Director. Kotak Privilege.LIFE INSURANCE . a growth of 76 per cent. "Our capital guarantee product. a standard measure in the industry that takes single premium income at 10 per cent. "With Kotak Bank expanding to more locations and increasing its retail base.B.

500.B. Mr Shah said the focus of the life insurer would continue to be the mass affluent and high net-worth individuals. growth in the group business was flat. the company will introduce two more capital guarantee policies — a children's plan and a retirement product. SEMESTER VI 69 .LIFE INSURANCE .B. New products In terms of new products.Y.KOTAK MAHINDRA Group business However.000. Kotak Life will focus on group credit term and superannuation to grow its business in the current fiscal. T. with only Rs 16 crore coming from the portfolio. Kotak Life will strengthen its distribution network this fiscal by opening 24 more branches and increasing its agency force to 25.I. unchanged from the previous year. Mr Shah said that fringe benefit tax on group superannuation had a negative impact on the company's group business.000 from the current 12. The company will have to alter three of its Unit Linked Insurance Plans to conform with the guidelines effective July 1. Mr Shah said the modification would mainly consist of introducing a lock-in period. The average premium per policy of the company is Rs 36.

KOTAK MAHINDRA CONCLUSION From the above project report on ―Kotak Mahindra . I conclude that the products offered by kotak mahindra to its customers are enough to satisfy their needs but.B. they are not aware of the company and its T.B.Life Insurance‖. SEMESTER VI 70 .LIFE INSURANCE .Y.I.

SEMESTER VI 71 . T.LIFE INSURANCE .B. Kotak mahindra should advertise them internationally so that the customer will be aware of such company. The detail given in this project report is true to the best of my knowledge & the information made to me during my project tenure.KOTAK MAHINDRA product in the market. This will be helpful for the company to compete with other insurance companies.Y.B.I.

KOTAK MAHINDRA BIBLIOGRAPHY Book referred:-Insurance Institute of India IC-33 Life Insurance ---------.sbilifeinsurance.I.S. Websites:-www.kotaklifeinsurance.Y.Balachandran. SEMESTER VI 72 .com www.B.B.LIFE INSURANCE .com T.