Professional Documents
Culture Documents
CONTENTS
Sr.No.
PARTICULARS
1.
SUMMARY
Page
No.
1.
2.
INTRODUCTION
2.
3.
LIFE INSURANCE
5.
4.
KOTAK MAHINDRA
12.
5.
PRODUCT
13.
6.
Q3 RESULT
35.
7.
36.
8.
SURVEY FORM
39.
9.
SURVEY RESULT
40.
10.
SURVEY REPORT
43.
11.
FAQS
44.
12.
ARTICLES
48.
13.
CONCLUSION
52.
14.
BIBLIOGRAPHY
53.
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UMMARY
Insurance is a tool or device through which some risks can be reduced,
eliminated or transferred. Every individual and business face some uncertainties
(i.e. possibility of encountering loss due to certain events) and these can be to a
certain extent removed through insurance.
Insurance is thus, a tool by which the loss likely to be caused by an
uncertain event is spread amongst a number of people who face similar risks.
Insurance is a cooperative way of bearing risks. Insurance provides certainty
(i.e. protection by way of compensation) for some uncertainty (i.e. possibility of
loss due to an unforeseen event.)
This project titled KOTAK MAHINDRA - LIFE INSURANCE it is an
attempt to bring out the overview features and product offered by the kotak
mahindra. This project tries to give the brief history, mission and objectives of
the company and its product.
This project would discuss the key features, benefits and how the plan works
which can suits to the policy holders. The project also discuss the financial
position of kotak mahindra its last year profits, it will also try to bring the
difference between SBIs life insurance.
In this project I have tried to bring out some of the important product offered by
the kotak mahindra.
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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 lifetime for a machine in a factory or a cow or a motor car. None of them
will last for ever. The owner is aware of this and he can so manage his
affairs that by the end of that period or life-time, a substitute is made
available. Thus, he makes sure that the value or income is not lost.
However, the asset may get lost earlier. An accident or some other
unfortunate event may destroy it or make it non-functional. In that case,
the owner and those deriving benefits and the planned substitute would
not have been ready. There is an adverse or unpleasant situation.
Insurance is a mechanism that helps to reduce the effect of such adverse
situations.
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LIFE INSURANCE
MEANING
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FEAT
URES OF LIFE INSURANCE
1. Almost all life policies are long term. Most of them are for a term of 15
years or more.
2. Sum of compensation is fixed. Unlike general insurance, compensation
does not depend on damage caused to the subject matter. Compensation,
which is an assured, has to be paid either on death of assured or after
maturity, whichever is earlier.
3. At times, amount of policy may be collected by the survivors of the
assured in case of his death.
4. Life insurance policy may be surrendered by the assured before its
maturity.
5. A person can take any number of life insurance policies and each and
every policy is liable to pay compensation, provided the other conditions
are met.
6. Nomination: in life insurance, the assured can nominate another person
who is entitled to receive the sum assured on his death.
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MYTH BUSTERS
what you should know about life insurance
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DONT
Dont cash in an existing policy in order to take
Out a new one unless you have a good reason.
The cost of any new cover may be higher than
The policy you already have because you are
Older. You might also not be able to get new
Cover if your occupation or health has changed
In the meantime.
Dont buy insurance that you dont need or
Already have.
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Amount
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pay them?
Quarterly
Rs.540
Half Yearly
Rs.1055
Annually
Rs.2000
Single
Premium
Rs.10000
KEY FEATURES
Accidental Death Benefit
This benefit provides an additional amount (over and above the basic
sum assured) to the beneficiary in the event of the accidental death of the life
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ADV
ANTAGES
It is a low-cost insurance plan.
You can choose between a regular premium payment option and a single
premium payment option. In case you opt for the regular premium
payment option, you may pay your premiums either annually, or in half
yearly or quarterly installments.
Your Kotak Term Plan can be converted into any other plan offered by
Kotak Life Insurance (except for another Term plan) provided there are at
least 5 years before cover ceases.
In case you forget to pay your premium by the due date, you are entitled
to a grace period of 30 days from the date of unpaid premiums.
In case of a financial emergency, you have the option to surrender the
policy provided you have taken the single premium payment option.
TAX BENEFITS
Section 80C, 10(10D) of Income Tax Act would apply. Premiums paid for
Critical Illness Benefit qualify for benefits under Section 80D. These benefits
are as per the currently prevailing tax regulations and it is advised to consult
your tax advisor for details.
HOW DOES THIS PLAN WORK?
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(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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75 years
24
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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assured
of
Rs.5,
00,000
and
for
term
of
20
years.
Annual Premium
Rs.34,124
Survival Benefit:
After 5 years
Rs.100,000
After 10 years
Rs.100,000
After 15 years
Rs.100,000
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Rs.200,000
Guaranteed addition
Rs.150,000
Bonus Addition
Variable
@6%
@10%
Rs.200,000
Rs.200,000
Guaranteed addition
Rs.150,000
Rs.150,000
Bonus Addition
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Rs.160,900
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Rs.522,000
29
Rs.510,900
Rs.872,600
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
induce men to any person to take out or renew or continue an insurance in
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10-30 years
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75 years
KEY FEATURES
Term Benefit / Preferred Term Benefit
In the event of death during the term of this benefit, the beneficiary would
receive an additional death benefit amount, which is over and above the sum
assured. The maximum term benefit you can avail of is equal to the basic sum
assured. Where the Term Benefit cover applied for is more than Rs.10 lakhs,
better rates may apply, subject to meeting eligibility requirements.
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Amount (Rs.)
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22,552
1,106
23,658
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You can pay off all premiums over a short period of time and be free
from paying premiums for the rest of the policy term, while enjoying the
life cover for the entire policy term.
Enjoy the benefits of bonus additions for the entire term of the policy.
EXCLUSION
In case the life insured commits suicide within 1 (one) year of the plan, no
benefit outlined in the plan would be payable.
The Accidental Death Benefit, Permanent Disability Benefit & Critical
Illness Benefit would not be paid out in the following circumstances:
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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.
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5 yrs - 30 yrs
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Quarterly
Half Yearly
Annually
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KEY FEATURES
Term/ 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 amount of benefit you can avail of is equal to the Basic
Sum Assured. Where the Term Benefit cover applied for is more than Rs.10
lakhs, better rates may apply, subject to meeting eligibility requirements.
Accidental Death Benefit
In the event of death as a result of an accident during the term of this benefit,
your beneficiary will receive an additional benefit, which is over and above the
Basic Sum Assured. The maximum Accidental Death Benefit you can avail of is
equal to the Basic Sum Assured (subject to a maximum of Rs. 10 lakhs).
Critical Illness Benefit
In case of the first occurrence of a critical illness during the term of this benefit,
the Critical Illness Benefit Sum Assured will be added to the Supplementary
Accumulation Account. Once the addition is made to the Supplementary
Accumulation Account, the Basic Sum Assured would reduce by the Critical
Illness Benefit Sum Assured, the Basic Accumulation Account would reduce in
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Accumulation
Account,
created
for
"lump-sum
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TAX BENEFITS
Section 80C, 10(10D) of Income Tax Act would apply. Premiums paid for
Critical Illness Benefit qualify for benefits under Section 80D.
(a)What Happens In The Event Of The Death Of The Life Insured Before
Retirement?
For the "With Cover" Plan:
The benefits to the beneficiary will be, greater of:
(a) Sum Assured less all the premiums due but not paid, and
(b) Accumulation Account.
This is used to buy an annuity, and provide commutation benefit, in accordance
with the beneficiary's choice.
For the "Without Cover" Plan:
The benefits to the beneficiary will be, greater of:
(a) Return of premiums (without interest), and
(b) Accumulation Account.
This will be used to buy an annuity, and provide commutation benefit, in
accordance with the beneficiary's choice.
HOW DOES THIS PLAN WORK?
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Option A
Option B
Rs 9,060
Death
Benefit
premium
Rs 265
(3 lakhs of cover)
Total Annual Premium Paid
Rs 11,568
Rs 9,325
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EXCLUSION
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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.
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Q3 RESULT
Kotak Mahindra Old Mutual Life Insurance Life Insurance
RS.MILLION.
Q3FY07
Q3FY06
Q2FY07
YTDFY07
YTDFY0
FY06
(3M)
(3M)
(3M)
(9M)
6 (9M)
(12M)
2,132.
Gross
premium
1,
1,6
5,04
6,2
209.7
78.5
7.7
2,578.4
18.5
(175.7)
(120.5)
(169.0)
(482.3)
(420.1)
(432.4)
income
Loss
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Points
benefit is payable.
10% at 3rdyear
15 year
15% at 6thyear
plan
20% at 9thyear.
year.
25% at 12thyear
45% at 15th year.
25 year
plan
Minimum
age
age
years.
70 years
75 years
Maximum
maturity
age
Kotak Endowment Plan Vs SBI Endowment Plan
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POINTS
KOTAK ENDOWMENT
PLAN
Age Entry Min.18yrs
Max. Min.12yrs
65 yrs
Term
Max.
65 yrs
Min.10yrs
Max. Min.8yrs
30 yrs
Max.--30 yrs
Death
Benefit
assured
which
ever is higher
Premium
Payment
POINTS
Plan
Option
option: -
I:-pure option.
II: - pension cum life cover.
Age
Min. 18 yrs.
Min 18 yrs.
Entry
Max. 55 yrs.
Max. 60yrs.
Premium
Min.Rs.12, 000
Max. No limit
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Term
Min. Of 10yrs.
Plan
premium-5yrs.)
Max. Of 52 yrs.
Max. Of 30 yrs.
Top-Up-
Min. Rs.10,000
Min.Rs.1,000/- in multiple of
Premium
Maturity
Min.:-45 yrs.
Min.:-50 yrs.
Age
Max.:- 75 yrs.
Max:-70 yrs.
SURVEY FORM
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Contact No.:-__________
No
Public
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Project Guide
Prepared By
Prof.Nishikant Jha
Amit Panwar
(Co-ordinator)
(T.Y.B.B.I)
SURVEY RESULT
79.65
ICICI Prudential
5.73
Bajaj Allianz
4.19
SBI Life
2.24
HDFC Standard
1.81
Birla SunLife
1.05
Tata AIG
0.89
1.02
Aviva
0.95
Kotak Mahindra
0.59
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ING Vysya
0.57
Reliance Life
0.77
MetLife
0.32
Sahara Life
0.03
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Money Back
Pension Plan
Endowment Plan
40-50 ---- 5%
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SURVEY REPORT
I have conducted survey for the project which will give me a practical
knowledge about insurance amongst general public. I have noticed that around
80% of the general public has been insured by LIC the basic reason behind this
is that LIC is the public company and policy holders have faith in public
company.
I have also noticed that customer is not much aware about kotak mahindra as
insurance company. Because the company has not advertise themselves
properly in the market which is the key for the success among its competitors.
While doing survey I have also noticed some of the point which is very
important for the kotak mahindra as well as for all the insurance companies
conducting their business in India.
The LIC is the most leading companies in insurance sector having market
share of around 79.63% which is the highest among all the insurance
company in India. (fig.1.)
Whereas kotak mahindra share the 10th position of market share i.e. its
business in amongst all 14th insurance companies in India.
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It will take time for the kotak mahindra to establish fully in India to
compete with all other insurance companies.
In the second figure we can see that almost 78% people are aware of
insurance & out of which 70% are insured with some of the insurance
company in India. (fig.2.)
In the third figure we can see that almost 63% like to be insured with the
public company. Whereas 37% like to be insured with the private
company. (fig.3.)
I have noticed that 78% are insured with LIC, 9% are insured with ICICI
Predential that of 3% are insured with kotak mahindra. (fig.no.4.)
FAQS
frequently asked questions?
"Is there any policy where I can receive money during the tenure of the
policy?"
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You plan to coincide the funds received from the policy with your future
anticipated needs like a car, an overseas holiday, children's educational
needs, marriage expenses, etc.
"How safe is my investment with Kotak Life Insurance? OR how are the
premiums collected invested by Kotak Life Insurance?"
Kotak Life Insurance's investment portfolio has been created in accordance
with the IRDA guidelines on investment by a Life Insurance Company.
"Is there any option where I can restrict my premium payment for a lesser
number of years than the duration of the policy?"
Yes. With the Kotak Endowment Plan, there is a Limited Premium Payment
(LPP) option. Under this option you can take a policy for 10 to 30 years and opt
for paying premiums for 3, 5, 7, 10 or 15 years after which premium payment
ceases but the cover continues for the entire tenure of the policy. This option is
suitable for people who are sure of secured income only for a specified period
of their earning life during which they want to pay off all their premiums
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"Is there any policy with which I can plan for my retirement?"
Yes. Kotak Retirement Income Plan. This is a pension plan, which helps you to
regularly invest your savings during your earning life in order to build up a
retirement corpus to take care of your post retirement needs. Further you may
be eligible for a tax deduction on the premiums paid up to Rs 10,000 (as per
current tax provisions) per financial year under section 80CCC of the Income
tax Act. On retirement you can withdraw up to one-third of the Accumulated
Account, which is tax-free and for the balance amount, you can buy an annuity.
"Are there any advantages in buying insurance at an early age?"
Yes. The premium that you pay on your insurance policy is mainly dependant
upon two things - your age and the tenure of the policy. The younger you are,
the lower is your insurance premium amount. . At younger age, you would be
physically sound and may not be suffering from illnesses/ medical. This would
entitle you to a lower premium on the policy. Therefore it is advisable to buy
insurance at an early age to reduce the cost of insurance.
"What will I receive on maturity of my policy?"
On maturity, you will receive the sum assured or the Accumulation Account
whichever is higher. Lets understand how these work
1. Every year you will pay premium on your policy.
2. This premium will get credited to an Accumulation Account.
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You
Life Insurance premiums paid up to Rs. 70,000 per annum get a tax
rebate (subject to certain conditions) under Section 88.
Premiums paid towards pension policies get a 100% tax rebate under
section 80CCC up to Rs. 10,000 per year. (Available with Kotak
Retirement Income Plan only)
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NEWS ARTICLES
KOTAK LIFE LOOKING FOR RURAL TIE-UPS
Our Bureau
Hyderabad, Dec. 15
Kotak Life Insurance is looking at roping in co-operative banks, primary
agricultural co-operative societies (PACS), NGOs and self-help groups to sell
its products in the rural areas. "We are planning to have rural tie-ups for
distributing our policies," Mr Gaurang Shah, Managing Director, said.
The company already had tie-ups with 24 urban co-operative banks to distribute
its products. Addressing a press conference here on Friday, he said the company
found non-governmental organisations as the right channels. "We do have
credible intermediaries in such NGOs," he said. Mr Shah was here in
connection with the launch of company's 63rd branch and the third in
Hyderabad at Himayatnagar. "We are going to open branches in Vijayawada and
Visakhapatnam in the next few months," he said.
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New products
In terms of new products, the company will introduce two more capital
guarantee policies a children's plan and a retirement product.
The company will have to alter three of its Unit Linked Insurance Plans to
conform with the guidelines effective July 1. Mr Shah said the modification
would mainly consist of introducing a lock-in period.
Kotak Life will strengthen its distribution network this fiscal by opening 24
more branches and increasing its agency force to 25,000 from the current
12,500.
Mr Shah said the focus of the life insurer would continue to be the mass affluent
and high net-worth individuals. The average premium per policy of the
company is Rs 36,000.
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CO
NCLUSION
From the above project report on Kotak Mahindra - Life Insurance. I
conclude that the products offered by kotak mahindra to its customers are
enough to satisfy their needs but, they are not aware of the company and its
product in the market. Kotak mahindra should advertise them internationally so
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BIBLIO
GRAPHY
Book referred:-Insurance Institute of India IC-33 Life Insurance ---------- S.Balachandran.
Websites:- www.kotaklifeinsurance.com
www.sbilifeinsurance.com
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