UNIVERSITY OF MUMBAI

PROJECT REPORT ON

OVERVIEW ON KOTAK LIFE INSURANCE

IN PARTIAL FULLFILMENT FOR BACHELORS OF MANAGEMENT

STUDIES

2011-12

PROJECT GUIDE

PROF. PRERNA SHARMA

SUBMITTED BY: SHRUTI PUJARI

Roll No: 3499

SPECIALISATION IN

FINANCE

MAHATMA EDUCATION SOCIETY’S

PILLAI’S COLLEGE OF ARTS, COMMERCE & SCIENCE

NEW PANVEL
OVERVIEW ON KOTAK LIFE
INSURANCE
 ACKNOWLEDGEMENT

At this gratifying moment of completion of my research project I feel obliged

to record my gratitude to those who have helped me in carrying out this herculean
task of completing this project at the best possible level.

I am sincerely thankful to all the faculty member of BMS department who

directly or indirectly supported me during the project. We take this opportunity to
express our deep sense of gratitude to all those who have contributed significantly
by sharing their knowledge and experience in the completion of this project work.

Last but not the least, our wholehearted thanks goes to the employees whom
we interacted and all those people who indirectly or directly helped us.

SHRUTI PUJARI.
 DECLARATION

I, SHRUTI PUJARI student of TYBMS, MAHATAMA EDUCATION

SOCIETY’S PILLAI’S COLLEGE OF ARTS, COMMERCE & SCIENCE, hereby
declare that I have completed the project report on Overview on Kotak Life
Insurance in the academic year 2011-12. The information submitted by me is true &
original to the best of my knowledge.

_______________

Signature
 CERTIFICATE

To whom so ever it may concern

This is to certify that the work entered in this journal is the work of Shruti pujari
T.Y.BMS, 3499 have successfully completed a project report on the OVERVIEW
OF KOTAK LIFE INSURANCE.

Topic terms of the year 2011-12 in the college as laid down by the college authority

Professor/Guide BMS Co-ordinator

FARHAT SHAIKH Prof. PRERNA SHARMA

Date: __________ External Examiner

_______________
 INDEX

SR.NO. CONTENTS. PG.NO.

Executive summary.
List of tables.
List of graphs.
1. Introduction.
2. Research methodology.
3. Conceptual framework.
4. Company profile.
5. Data collection and analysis.
6. Conclusion.
7. Suggestions and recommendations.
8. Appendices.
9. Bibliography & Wibliography.

INDEX
 SR.NO. CONTENTS. PG.NO.
List of tables
1. Age
2. Qualification
3. Annual income
4. Family size
5. Investment
6. Benefits
7. Have you taken Life Insurance policies
8. Expectations
9. Investment plan
10. Rate the Insurance companies
11. Awareness
List of Graphs
1. Age
2. Qualification
3. Annual income
4. Family size
5. Investment
6. Benefits
7. Have you taken Life Insurance policies
8. Expectations
9. Investment plan
10. Rate the Insurance companies
11. Awareness

EXECUTIVE SUMMARY:
Insurance, in law and economics, is a form of risk management primarily used to hedge
against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk
of a loss, from one entity to another, in exchange for a premium, and can be thought of as a
guaranteed small loss to prevent a large, possibly devastating loss. An insurer is a company
selling the insurance; an insured is the person or entity buying the insurance.

The insurance rate is a factor used to determine the amount to be charged for a certain
amount of insurance coverage, called the premium. Risk management, the practice of
appraising and controlling risk, has evolved as a discrete field of study and practice.

A promise of compensation for specific potential future losses in exchange for a periodic
payments. Insurance is designed to protect the financial well-being of an individual, company
or other entity in the case of unexpected loss. Some forms of insurance are required by low,
while others are optional. Agreeing to the terms of an insurance policy creates a contract
between the insured and the insurer. In exchange for payments from the insured(called
premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence
of a specific event. In most cases, the policy holder pays part of the loss (called the
deductible), and the insurer pays the rest. Example includes car insurance, health insurance,
disability insurance, life insurance and business insurance.

Kotak life insurance is one of the fastest growing life insurance companies in India. It
is a 76:24 joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual Plc.
Kotak Mahindra Group is one of India’s leading bank and financial service organisations,
with offering range of services like personal finance, life insurance, corporate and
investment banking, commercial banking, stock broking, asset management, etc. Old Mutual
Plc is an international savings and wealth management company based in the UK.

The project is based on Kotak life insurance as an insurance company. In this project
detailed information is given about the company, how it works, how the company gives
policy to policy holders etc.
 CHAPTER 1:-

INTRODUCTION:-

Insurance is a form of risk management in which the insured transfers the cost of potential
loss to another entity in exchange for monetary compensation known as the premium.
Insurance allows individuals, businesses and other entities to protect themselves against
significant potential losses and financial hardship at a reasonably affordable rate. We say
"significant" because if the potential loss is small, then it doesn't make sense to pay a
premium to protect against the loss. After all, you would not pay a monthly premium to
protect against a $50 loss because this would not be considered a financial hardship for most.

Insurance is appropriate when you want to protect against a significant monetary loss. Take
Life Insurance as an example. If you are the primary breadwinner in your home, the loss of
income that your family would experience as a result of our premature death is considered a
significant loss and hardship that you should protect them against. It would be very difficult
for your family to replace your income, so the monthly premiums ensure that if you die, your
income will be replaced by the insured amount. The same principle applies to many other
forms of insurance. If the potential loss will have a detrimental effect on the person or entity
insurance makes sense.

None of us know what is going to happen to us in the future but what we do know is that
accidents happen. This is the simple idea that the insurance industry is founded on. You never
know when you might crash your car or come home to find someone has broken into your
home. But what you can do is protect yourself financially against something going wrong at
some point in the future. This protection is what we call insurance.

Insurance can seem complicated but the basic principles are really quite straightforward.

 An insurance company works out how likely it is that an accident or event will
happen and what it would cost to put it right.

 Based on this, the insurance company sets what is know as a premium. This is the
amount it asks you to pay in order to protect yourself against the accident or event.
The cost of the premium is often spread so you pay it on a monthly basis.
  If whatever it is you have insured yourself against happens, you then make a claim to
your insurance company and it pays out the agreed amount.

Insurance premiums:-

By entering into a new contract, the Insurance Company agrees to pay the policy holder or
his family members a predetermined sum of money in case of any unfortunate event to the
policy holder at a predetermined fixed sum payable which is, in normal terms, called
Insurance Premiums.

Insured:-

A person who seeks protection against such loss is termed as insured.

Insurer:-

The company that promises to honour the claim, in case such loss, is termed as insurer.

DEFINITION:

Protection against loss for which you pay a certain sum periodically in exchange for a
guarantee that you'll be compensated under stipulated conditions for any specified loss by
fire, accident, death, etc
Principles of Insurance:-

1. Principle of Co-operation:-
 Co-operation is based on the co –operative principle ‘one for all, and all
for one’.
 E.g.: Diabetic with a higher risk pays more to nullify the impact on the
pool in case of death earlier than assumed.

2. Principle of Probability/Risk:-
 Subject matter should be exposed to the contingency of loss or risk.
 E.g.: Marine Insurance-Ship >> Loss by perils of the sea.
 Fire Insurance-Property >> Loss by Fire
3. Principle of Utmost Good faith:-
 Disclosure of material facts important
 Accuracy of information in the proposal form.
 Non-disclosure / Mis-match of information >> Claim rejection in future.
 E.g.: Health Insurance Policies
4. Principle of Insurable Interest:-
 Insurable interest asks the question-

“what financial loss would you suffer upon the death of the insured/ or
on the destruction of the property insured or upon the happening of the peril
against which the insurance has been taken?”

 Who has Insurable interest?

o Self
o Blood or Marriage
o Business relationships
o Property and liability insurance
 Essentials of a valid insurable interest:-
o There must be subject matter to be insured.
 o The insured should have a monetary relationship with the
subject matter.
o The financial relationship between the insured and the subject
matter should be such that the insured is financially benefited
by its existence or death of the subject matter.
o The relationship between the insured and the subject matter
should be recognised by law i.e. there should not be any illegal
relationship between the insured and the subject matter.

5. Principle of Indemnity:-
 Insured – fully indemnified ,but , never more than fully indemnified.
 Loss compensated = Actual loss or Sum assured, whichever is lower*
 Loss compensated in proportion to the insurance cover in relation to value of
total assets.
 E.g.: Total value of asset is 100,000/-

Insurance taken for Rs 80,000/-

In case of destruction of asset , if the loss is Rs.60,00;

Claim = 80% of Rs. 60,000/- i.e. Rs 48,000/-

6. Principle of Subrogation:-
 A corollary to the principle of indemnity applicable only to fire and marine
insurance.
 Post loss indemnification, all rights and remedies that insured has against third
person, in relation to the subject matter insured, passes to the insurer.
 After claim settlement, if insured recovers the loss (in part or in full) from a
third party, insurer entitled to receive the amount.
 E.g.: A house is insured for Rs.2 lakhs against fire

The house is damaged by fire

The insurer pays the full value of Rs.2 lakhs to the insured
 Later, the damaged house is sold for Rs.20,000

The insurer is entitled to receive the sum ofnRs.20,000

7. Principle of Causa Proxima:-

 Insured perils, Excluded perils/Unmentioned perils
 Loss to be proximately caused by an insured peril without any break in the
chain of causation
 In case of loss due to a remote cause not insured against; no claim payable by
insurer.
8. Principle of Contribution:-
 Arises when
o There are different policies which relate to the same subject
matter
o The policies cover the sameperil which caused the loss
o All the policies are in force at the time of the loss
o One of the insurers paid to the insured more than his share of
the loss.
9. Principle of Mitigation of Loss:-
 In the event of some mishapthe insured property. The insured needs to take
necessary step to mitigate or minimise the losses.
 Reasonable efforts need to be taken to save the insured property.
10. Principle of Warranties:-
 Condition and promises in an insurance contract.
 A warranty is that by which the assured undertakes that
o Some particular thing shall or shall not be done
o Or that some condition shall be fulfilled
o Or whereby he affirms or negative the existence of a particular
state of affairs
 Expresws warranties
o Those stated in the contract
o Eg.: No goods of dangerous nature, to maintain proper
electrical fittings, in case of fire insurance.
 Implied warranties
o Those that are assumed by the parties to the contract.
o Eg.: Sea-worthiness of ship, leagality of voyage etc. In case of
marine insurance.
Functions of insurance:

1] Provide protection:

The primary function of insurance is to Provide protection against future risk,

accidents and uncertainty. Insurance cannot check the happening of risk, but can
certainly provide for the losses of risk. Insurance is actually a protection against
economic loss, by sharing the risk with others.

2] Collective bearing of risk:

Insurance is an instrument to share the financial loss of few among many others.
Insurance is a mean by which few losses are shared among larger number of people.
All the insured contribute the premiums towards a fund and out of which the persons
exposed to a particular risk is paid.

3] Assessment of risk:
Insurance determines the probable volume of risk by evaluating various factors
that give rise to risk. Risk is the basis for determining the premium rate also.

4] Provide certainty:
Insurance is a device, which helps to change from uncertainty to
certainty. Insurance is device whereby the uncertain risks may be made more
certain.
Small capital to cover larger risk: Insurance relives the businessmen from security
investments, by paying small amount of premium against larger risks and uncertainty.
5] Contributes towards the development of industries:-
Insurance provides development opportunity to those larger industries having
more risk in their setting. Even the financial institutions may be prepared to give
credit to sick industrial units which have insured their assets including plant and
machinery.
6] Means of savings and investment:
Insurance serves as savings and investment, insurance is a compulsory way of
savings and it restricts the unnecessary expenses by the insured’s for the purpose of
availing income-tax exemptions also, people invest in insurance.
7] Source of earning foreign exchange:
Insurance is an international business. The country can earn foreign exchange by
way of issue of marine insurance policies and various other ways.

8] Risk free trade:

Insurance promotes exports insurance, which makes the foreign trade free with
the help of different types of policies under marine insurance cover.
Insurance is divided into two basic zones:
• General Insurance
• Life insurance

GENERAL INSURANCE

Insurance of the non life assets are called general insurance, this includes loss of asset against
water, fire, earthquake etc. With the opening up of the Indian Market Insurance sector for
private players, in General Insurance the monopoly of the general Insurance public sector’s
companies has been broken. With the entrance of the new private players market innovative
technique has been introduced to captured the market. In general Insurance around 17% of
the market has been captured by the private players.

General Insurance is a sector which alone has many types of insurance coverage in it like Fire
Insurance, Marine Insurance, Motor Insurance, Liability Insurance, Engineering Insurance
etc.

The Non Life Insurers:

• National Insurance Co. Ltd
• New Indian Assurance Co. Ltd
• Oriental Insurance Co. Ltd
• United India Insurance Co. Ltd
• Tata AIG General Insurance Co. Ltd
• Bajaj Allianz General Insurance Co. Ltd
• IFFCO Tokio General Insurance Co. Ltd
• ICICI Lombard General Insurance Co. Ltd
• Reliance General Insurance Co. Ltd
• Royal Sundaram Alliance Insurance Co. Ltd
• Bharti Axa General Insurance
• HDFC Chub
LIFE INSURANCE

Life insurance is a contract under which the (Insurance Company) in Consideration of a

premium paid undertakes to pay a fixed sum of money on the death of the insured or on the
expiry of a specified period of time, whichever is earlier. In case of life insurance, the
payment for life insurance policy is certain. The Event insured against is sure to happen only
the time of its happening is not known. So life insurance is known as ’Life Insurance’. The
subject matter of insurance is life of human being. Life insurance provides risk coverage to
the life of the person. On death of the person insurance offer protection against loss of
income and compensate the titleholders of the policy.

Roles of Life Insurance

 Life Insurance as an investment: Insurance product yield more than any other
investment instruments and it also provides added incentives or bonus offered by
insurance companies.
 Life Insurance as risk cover: Insurance is all about risk cover and protection of life.
Insurance provides a unique sense of security that no other form of invest can provide.
 Life insurance as tax planning: Insurance serves as an excellent tax saving
mechanism too.
Features & Benefits of Life Insurance:-

1. Death Benefit:

Firstly the life insurance provides benefit against the risks of your life & provides
your family or nominee the insured amount or coverage in case of your unfortunate demise.

2. Survival/Maturity Benefit:

Apart from the simple death benefit you also get the maturity benefits or survival
benefits wherein you get the sum assured plus the returns at the time of maturity, there is also
an option of periodic withdrawals of your invested amount.

3. Investment & savings:

Apart from the life cover, the life insurance also has prospects of providing a vehicle
for investments & saving for your future needs. With different insurance plans like simple
endowment plans, whole life plans, ULIPs, you have the option of saving for your
retirements through pension plans or saving for your children future needs by investing in
Insurance child plans wherein you can invest your money depending on your risk profile.

4. Tax benefit:

You can save tax up to Rs. 1 lakh on Premiums paid for Life Insurance Plans under
Section 80C.

5. Riders:

The riders are special benefits given to the policy holders in addition to the life
insurance cover wherein you are charged with some extra premium e.g. Accelerated death
benefit rider, waiver of premium rider, disability income rider, accidental death rider etc.

6. Premium payment option:

You have the option of paying premium yearly, quarterly, monthly & you also have
the option of single time premium payments where you have to pay one time.
7. Plans as per needs:

You can avail Insurance plans as per your needs & requirements, if you want to save
for your child you can go for children insurance plans providing you with returns at certain
important milestones of your children’s life like their education, wedding etc. If you want to
save for your retirement you can invest in Pension plans either in ULIPS or in simple
Endowment plans depending upon your risk appetite.

8. Loan option:

In some life insurance policies you can also take loan against the life insurance policy your
eligibility for the loan amount depends on the type of policy, the premium amount, the term
of the policy and the number of years you have paid premium for.
Advantages of Life Insurance:-

 Risk Cover - Life today is full of uncertainties; in this scenario Life Insurance
ensures that your loved ones continue to enjoy a good quality of life against any
unforeseen event.

 Planning for life stage needs - Life Insurance not only provides for financial support
in the event of untimely death but also acts as a long term investment. You can meet
your goals, be it your children's education, their marriage, building your dream home
or planning a relaxed retired life, according to your life stage and risk appetite.
Traditional life insurance policies i.e. traditional endowment plans, offer in-built
guarantees and defined maturity benefits through variety of product options such as
Money Back, Guaranteed Cash Values, Guaranteed Maturity Values.

 Protection against rising health expenses - Life Insurers through riders or stand
alone health insurance plans offer the benefits of protection against critical diseases
and hospitalization expenses. This benefit has assumed critical importance given the
increasing incidence of lifestyle diseases and escalating medical costs.

 Builds the habit of thrift - Life Insurance is a long-term contract where as

policyholder, you have to pay a fixed amount at a defined periodicity. This builds the
habit of long-term savings. Regular savings over a long period ensures that a decent
corpus is built to meet financial needs at various life stages.

 Safe and profitable long-term investment - Life Insurance is a highly regulated

sector. IRDA, the regulatory body, through various rules and regulations ensures that
the safety of the policyholder's money is the primary responsibility of all stakeholders.
Life Insurance being a long-term savings instrument, also ensures that the life insurers
focus on returns over a long-term and do not take risky investment decisions for short
term gains.

 Assured income through annuities - Life Insurance is one of the best instruments
for retirement planning. The money saved during the earning life span is utilized to
provide a steady source of income during the retired phase of life.
  Protection plus savings over a long term - Since traditional policies are viewed both
by the distributors as well as the customers as a long term commitment; these policies
help the policyholders meet the dual need of protection and long term wealth creation
efficiently.

 Growth through dividends - Traditional policies offer an opportunity to participate

in the economic growth without taking the investment risk. The investment income is
distributed among the policyholders through annual announcement of
dividends/bonus.

 Facility of loans without affecting the policy benefits - Policyholders have the
option of taking loan against the policy. This helps you meet your unplanned life
stage needs without adversely affecting the benefits of the policy they have bought.

 Tax Benefits-Insurance plans provide attractive tax-benefits for both at the time of
entry and exit under most of the plans.

Mortgage Redemption- Insurance acts as an effective tool to cover mortgages and loans
taken by the policyholders so that, in case of any unforeseen event, the burden of repayment
does not fall on the bereaved family
Life Insurance Policies:

1. Term Policy:

Term life insurance is called "term" because it provides coverage for a specific period or
term, it is that Policy which provides life coverage only. On the death of the insured it pays
the face amount of the policy to the named beneficiary within the Term. However, once the
term is over and if the policy is not renewed, the coverage ceases & if death occurs after that,
you don’t receive any Cash benefits.

It is the most straightforward type of Life Insurance, It is also called Pure Insurance since the
policy has no financial investment value & most of your premium goes to pay for coverage.

2. Children Insurance Plans:

The Children Plans are designed to secure your child's future by giving your child (the
beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early
in the policy term. There are two types of Children’s Policy, under the first Plan; the child
himself is insured although the premium is paid by the parents. In the second Plan, it is the
parent who is insured but in case of his untimely death, or at time of the maturity of the
policy, the child gets the benefit.

3. Annuities and Pension:

There is an increased need for Retirement Plan due to Increase in Life Expectancy &
Increase in the Cost of Living (Medical Expenditure). In an annuity, the insurer agrees to pay
the insured a stipulated sum of money periodically. The main purpose of an annuity is to
protect against risk as well as provide money in the form of pension at regular intervals.

There are two kinds of Pension policies: - The Immediate Annuity and the Deferred
Annuity. In the former, you have to invest a lump sum and start receiving pensions
immediately. In the latter, you start building a corpus at a young age & on retirement; you
receive annuities out of this corpus.
 4. Whole Life Policy:

It is probably the simplest policy to understand. Every year you pay a fixed premium based
on your age and other such factors. And then, as the years go by, you earn a certain interest
on your policy's cash value. The policy continues into your old age for the same premium you
started out with. This policy provides protection that is permanent and also accumulates
handsome returns. Whole Life Policy is an insurance cover against death, irrespective of
when it happens.

This policy, however, fails to address the additional needs of the insured during the post-
retirement years. It doesn't consider a person's increasing financial needs either. While the
insured buys the policy at a young age, his/her needs typically increase over time. By the time
he/she dies, the value of the sum assured might be too low to meet his/her family's needs. As
a result of these drawbacks, insurance firms now offer either a modified Whole Life Policy or
combine in with another type of policy.

5. Endowment policy:

Endowment policy is the most popular policy in the world of life insurance as it is the
combination of risk cover with financial savings. An Endowment Life Insurance Policy
provides more of an investment. One can earn more capital for specific purposes and is also
protected against the insured's premature death. If the insured dies during the tenure of the
policy, the insurance firm has to pay the sum assured just as any other pure risk cover.
Endowment Life insurance is mostly used by many for anticipated financial needs, like
children's education or ones' retirement. Premium for an Endowment Life policy is much
higher compared to a Whole Life policy. The cost of such a policy is higher but worth its
value.

6. Money Back policy:

This is more of an Endowment policy as part of the amount assured is paid at fixed periods,
before the maturity date, in the form of survival benefits. These policies are structured to
provide sums required as anticipated expenses over a stipulated period of time. The premium
is payable for a particular period of time. If the insured survives till the expiry of maturity
date of the policy, the survival benefits are deducted from the maturity value.
Life insurance in india:-

Life Insurance is the fastest growing sector in India since 2000 as Government allowed
Private players and FDI up to 26%. Life Insurance in India was nationalized by incorporating
Life Insurance Corporation (LIC) in 1956. All private life insurance companies at that time
were taken over by LIC.

In 1993 the Government of Republic of India appointed RN Malhotra Committee to lay down
a road map for privatization of the life insurance sector.

While the committee submitted its report in 1994, it took another six years before the
enabling legislation was passed in the year 2000, legislation amending the Insurance Act of
1938 and legislating the Insurance Regulatory and Development Authority Act of 2000. The
same year that the newly appointed insurance regulator - Insurance Regulatory and
Development Authority IRDA --started issuing licenses to private life insurers.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(IRDA).

In 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April,2000. The key objective of the IRDA include
promotion of competition so as to enhance customer satisfaction through increased consumer
choice and lower premiums, while ensuring the financial security of the insuranc market. The
IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has
the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from
2000 onwards framed various regulations ranging from registration of companies for carrying
on insurance business to protection of policyholders’ interest.

Role of IRDA:-

 Protecting the interests of policyholders.

 Establishing guidelines for the operations of insurers and brokers.
 Specifying the code of conduct, qualifications and training
for insurance intermediaries and agents.
 Promoting efficiency in the conduct of insurance business.
 Regulating the investment of funds by insurance companies.
 Specifying the percentage of busines s to be written by insurers in rural
sectors.
 Handling disputes between insurers and insurance intermediaries.
Changing face of Indian insurance industry:

After the Insurance Regulatory and Development Authority Act have been passed there has
been establishment of many private insurance companies in India. Previously there was a
monopoly business for Life Insurance Corporation of India (L.I.C.) who was the only life
insurance company for the people till 2000. L.I.C. still holds 71.4% of the market share in
2006. But after the introduction of private life insurance companies there is a great
competition in Indian market now. Everyone is trying to capture the fresh market here and
penetrate it with aggressive marketing strategies. Today life –insurance is not only limited up
to just life risk cover and maturity period bonuses but changed to greater return from the
investments. With the introduction of the unit linked insurance policies these companies are
investing the money in different investment instrument like shares, bonds, debentures,
government and other securities. People are demanding for higher returns with the life risk
cover and private companies are giving 30-40% average growth per annum. These life-
insurance companies have every kind of policies suiting every need right from financial
needs of, marriage, giving birth and rearing up a child, his education, meeting daily financial
needs of life, pension solutions after retirement. These companies have every aspect and
needs of our life covered along with the death-benefit.

In India only 25% of the population has life insurance. So Indian life- insurance
market is the target market of all the companies who either want to extend or diversify their
business. To tap the Indian market there has been tie-ups between the major Indian
companies with other International insurance companies to start up their business. The
government of India has set up rules that no foreign insurance company can set up their
business individually here and they have to tie up with an Indian company and this foreign
insurance company can have an investment of only 24% of the total start-up investment.

Indian insurance industry can be featured by:

 Low market penetration.

 Ever growing middle class component in population.
 Growth of customer’s interest with an increasing demand for better insurance
products.
 Application of information technology for business.
 Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has more than a dozen private players, each
of which are making strides in raising awareness levels, introducing innovative
products and increasing the penetration of life insurance in the vastly underinsured
country. Several of private insurers have introduced attractive products to meet the
needs of their target customers and in line with their business objectives. The success
of their effort is that they have captured over 28% of premium income in five years.

The biggest beneficiary of the competition among life insurers has been the
customer. A wide range of products, customer focused service and professional
advice has become the mainstay of the industry, and the Indian customer’s forms the
pivot of each company’s strategy. Penetation of life insurance is beginning to cut
across socio-economic classes and attract people who have never purchased insurance
before.

Life insurance is also now being regarded as a versatile financial planning

tool. Apart from the traditional term and saving insurance policies, industry has seen
the entry and growth of unit linked product. This provides market linked returns and
is among the most flexible policies available today for investment. Now product are
priced, flexible, and realistic and sustain so people in better position to understand the
risk and benefits of the product and they are accepting these innovative products.

So it is clear the face of life insurance in I ndia is changing, but with the
changes come a host of challenges and it is only the credible players with a long term
vision and a robust vbusiness strategy that will survive. Whatever the developments,
the future and the opportunities in this industry will surely be exciting.

The number of companies in Insurance particularly in life Insurance has changed

drastically now the number is in 17.
List of them are mentioned as below:-

1.Bajaj Allianz Life Insurance

2.ICICI Prudential Life Insurance

3 . T A T A A IG Li f e I n s u r a n c e

4 . M a x N e w Y o r k Li f e In s u r a n c e

5 . A V I V A Li f e In s u r a n c e

6 . B h a r t i A X A Li f e I n s u r a n c e

7.Kotak Mahindra Life Insurance

8 . R e l i a n c e Li f e In s u r a n c e

9 . S B I Li f e In s u r a n c e

10.HDFC Standard Life Insurance

11.Birla Sun Life Insurance

12.Sahara Life Insurance

13.ING Vysya Life Insurance

14. MAX bupa life insurance

And so on......
 CHAPTER 2:-

RESEARCH METHODOLOGY:

1. Primary method
2. Secondary method

Primary data:

. Primary data is the specific information collected by the person who is doing the
research. It can be obtained through clinical trials, case studies, true experiments and
randomized controlled studies. This information can be analyzed by other experts who may
decide to test the validity of the data by repeating the same experiments.

The primary data used is:

Questionnaire method:

The questionnaire (also called survey) is a set of questions given to a sample of

people. The purpose is to gather information about the people’s attitudes, thoughts,
behaviours, and so forth. The researchers compile the answers of the people in the sample in
order to know how the group as a whole thinks or behaves. Questionnaires are often used by
people who do political or market research.

Secondary data:

Secondary data is the data that have been already collected by and readily available
from other sources. Such data are cheaper and more quickly obtainable than the primary data
and also may be available when primary data cannot be obtained at all.

The secondary data collected is through company’s magazines, brochures,

publications and internet
OBJECTIVE OF THE STUDY:-

1] Proper understanding and analysis of Life Insurance industry.

2] To know about the brand awareness of Kotak life Insurance and customer’s preference
about Kotak Life Insurance.

3] Conduct market survey on a sample selected from the entire population and derived
opinion on the research.

4] According to market survey come know about how much potential of insurance market in
our city.

5] And has an analysis of result thus obtained make a report on that research.

6] To find out right candidate.

7] Finalize candidates for the IRDA training.

8] To help company in establishing a network of Life Insurance Advisors and promote the
benefits those are provided by Kotak Life Insurance to its Life Insurance Advisor.

9] To offer suggestion based upon findings.

10] Training aims at recruiting maximum number of Life Advisors and to sell the maximum
policy for the company and bring the business for the company which ever is going at the
particular point of time.
 CHAPTER 3:-

(Conceptual framework)

INTRODUCTION:-

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak
Mahindra Bank (74%) and Old Mutual Plc (26%) headquartered in London. The company
started its operations in the year 2001.

The Kotak Mahindra Group is one of India’s trusted name in financial services established in
1985 and currently caters to the entire spectrum of financial products. Kotak Mahindra Bank
is one of its flagship businesses with an established presence as a private bank in the country.
Its other established lines of businesses include asset management, broking, investment
banking and realty funds. The wide financial services experience makes it an ideal lead
partner in the life insurance business. Old Mutual, based in London, UK has a 165 year old
history and has operations in 34 different countries around the world. Its major operations are
in US and the UK. It has a portfolio of insurance, asset management, banking and long term
savings products.
Kotak Life Insurance is a fast growing life insurance company in India. The company has
more than 200 branches in India and along with the distribution reach of its group companies,
is well positioned to reach out to the length and breadth of the country. It has a large
spectrum of life insurance products catering to protection, savings and retirement solutions
Roles of Kotak life Insurance:-

1] Life Insurance as “Investment”

Insurance is an attractive option for investment. While most people recognize the risk
hedging and tax saving potential of insurance, many are not aware of its advantages as an
investment option as well. Insurance products yield more compared to regular investment
options, and this is besides the added incentives (read bonuses) offered by insurers.

You cannot compare an insurance product with other investment schemes for the simple
reason that it offers financial protection from risks, something that is missing in non-
insurance products.

In fact, the premium you pay for an insurance policy is an investment against risk. Thus,
before comparing with other schemes, you must accept that a part of the total amount
invested in life insurance goes towards providing for the risk cover, while the rest is used for
savings.

In life insurance, unlike non-life products, you get maturity benefits on survival at the end of
the term. In other words, if you take a life insurance policy for 20 years and survive the term,
the amount invested as premium in the policy will come back to you with added returns. In
the unfortunate event of death within the tenure of the policy, the family of the deceased will
receive the sum assured.

Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your
money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to
your funds will be limited. One can withdraw 50 per cent of the initial deposit only after 4
years.

The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-
12 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this
amount can become immediately available to the nominee of the policyholder on death.
2] Life Insurance as “Risk cover”:-

First and foremost, insurance is about risk cover and protection - financial protection, to be
more precise - to help outlast life's unpredictable losses. Designed to safeguard against losses
suffered on account of any unforeseen event, insurance provides you with that unique sense
of security that no other form of investment provides. By buying life insurance, you buy
peace of mind and are prepared to face any financial demand that would hit the family in case
of an untimely demise.

To provide such protection, insurance firms collect contributions from many people who face
the same risk. A loss claim is paid out of the total premium collected by the insurance
companies, who act as trustees to the monies.

Insurance also provides a safeguard in the case of accidents or a drop in income after
retirement. An accident or disability can be devastating, and an insurance policy can lend
timely support to the family in such times. It also comes as a great help when you retire, in
case no untoward incident happens during the term of the policy.

With the entry of private sector players in insurance, you have a wide range of products and
services to choose from. Further, many of these can be further customized to fit
individual/group specific needs. Considering the amount you have to pay now, it's worth
buying some extra sleep.

3] Life Insurance as “Tax Planning”:-

Insurance serves as an excellent tax saving mechanism too. The Government of India
has offered tax incentives to life insurance products in order to facilitate the flow of funds
into productive assets. Under Section 88 of Income Tax Act 1961, an individual is entitled to
a rebate of 20 per cent on the annual premium payable on his/her life and life of his/her
children or adult children. The rebate is deductible from tax payable by the individual or a
Hindu Undivided Family. This rebate is can be availed up to a maximum of Rs 12,000 on
payment of yearly premium of Rs 60,000. By paying Rs 60,000 a year, you can buy anything
upwards of Rs 10 lakh in sum assured. (Depending upon the age of the insured and term of
the policy) This means that you get a Rs 12,000 tax benefit. The rebate is deductible from the
tax payable by an individual or a Hindu Undivided Family.
 Kotak Life becomes first Life Insurance Company in

India to train Advisors to become Certified PFAs

Mumbai, May 2, 2011: In a first of its kind initiative by a Life Insurance company in
India, Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance) today
launched a programme to enable life advisors and employees in advisory roles become
Certified Personal Financial Advisors (CPFAs). National Institute of Securities Markets
(NISM), an educational initiative by the Securities and Exchange Board of India (SEBI) will
provide curriculum and knowledge support to Kotak Life Insurance.

Certified Personal Financial Advisor (CPFA) examination has been jointly created by
NISM and Financial Planning Corporation of India Ltd (FPCIL). It covers holistic knowledge
on various Investment Products, Asset Alloca

Platform will also be used to help investors locate Certified Personal Financial
Advisors in their city or town.

The programme will help Kotak’s Life advisors significantly enhance their capacity to
help customers realize and prioritize their needs and make informed investment choices.
Kotak Life Insurance has chosen 450 of its top life advisors and 350 Kotak employees from
across the country to participate in the first phase of the programme. The programme will
eventually cover all Kotak life advisors and employees in advisory roles at Kotak Life
Insurance. Commenting on the tie-up, Anand Dewan, Senior Vice President, Business
Impact Group, Kotak Mahindra Old Mutual Life Insurance said “Professional investment
advice is clearly the need of the hour, and given the complexity of financial markets, we
realize the crucial role of the intermediary in helping the investor in making an informed
choice. Equipping our Life Advisors with knowledge and skills to be able to provide value
advice is critical. This highly credible industry vetted certification will go a long way in
addressing that need and customers will benefit immensely from need based, high quality
advice”.

Prof. G Sethu, OSD In-Charge of National Institute of Securities Markets (NISM)

said “A personal financial advisor who can understand an individual’s overall financial needs
and then offer comprehensive financial planning solution can provide more value as opposed
to offering only a particular investment or insurance product. We are glad to support Kotak
Life Insurance in this training initiative to help their life advisors become holistic financial
planners.”

“Our aim is to partner with various industry players in making the CPFA examination a
minimum knowledge benchmark for personal financial advisors in India.” added Mr. M L
Soneji, Registrar at National Institute of Securities Markets.
Product:-

1]Term Plans:

 Kotak Term Assurance Plan

 Kotak preferred Term Plan

2]Endowment Plans:

 Kotak Endowment Plan

 Kotak Monet Back Plan
 Kotak Child Advantage Plan
 Kotak Capital Multiplier Plan
 Kotak Retirement Income Plan
 Kotak Premium Return Plan

3]Unit Linked Plans:

 Kotak Retirement Income Plans(Unit Linked)
 Kotak Safe Investment Plan II
 Kotak Flexi Plan
 Kotak Easy Growth Plan
 Kotak Privilege Assurance Plan

4]Group:
 Employee Benefits
 Kotak Term Group Plan
 Kotak Credit-Term Group Plan
 Kotak Complete Cover Group Plan
 Kotak Gratuity Group Plan
 Kotak Superannuation Group Plan

5]Rural:
 Kotak Gramin Bima Yojna
If we look at the status of Kotak Life Insurance’s market share in comparison of other private
company in comparison of premium earned:-

No. INSURER Market Share

(%)

1 Bajaj Allianz 7.56

2 ICICI Prudential 7.35

3 HDFC Standard Life 2.87

4 SBI Life 2.31

5 Birla Sun Life 1.89

6 Tata AIG 1.29

7 Max New York 1.23

8 Aviva 1.14

9 Kotak Mahindra Old Mutual 1.11

10 ING Vysya 0.79

11 Reliance Life 0.54

12 Met Life 0.40

13 Sahara Life 0.06

14 Shriram Life 0.03

STUDY OF MAKETING DEPARTMENTS:_

Marketing practice tends to be seen as a creative industry, which include advertising,

distribution and selling. It is also concerned with anticipating the customers’ future needs and
wants, which are often discovered through market research. Seen from a systems point of
view, sales process engineering views marketing as a set of processes that are interconnected
and interdependent with other functions, whose methods can be improved using a variety of
relatively new approaches.
PROMOTERS:-

1] Kotak Mahindra Private Ltd.

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

As on March 31,2005 KMP has a retail distribution network comprising of 54

branches (including representative offices) covering about 100 locations in 17 states in the
country and has a wide network of Direct Marketing Associates, brokers and agencies
supporting the distribution network and servicing around 113,000 customers.

2] Kotak Mahindra Bank Ltd.

Kotak Mahindra Bank Limited(KMBL) is the holding company and the flagship of the Kotak
Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited
on November 2, 1958 and obtained is ‘Certificate of Commencement of Business on
February 11, 1986.

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

3] Old Mutual Plc:

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

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

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

Operations in the United Kingdom are focused on wealth management, through

Gerrard as one of the leading private client stock broking businesses in the UK.
Distribution:

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

SALES DISTRIBUTION:-

1] Tied Agency:

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

2] Bank assurance and Alliances:

Kotak life was a pioneer in offering life insurance solutions through banks and alliances.
Within a short span of two years, and with nearly a large number of partners, B & A has
emerged as a vital component of the company’s sales and distribution strategy, contributing
to approximately one third of company’s total business. The business philosophy at B&A is
to leverage distribution synergies with our partners and add value to its customers as well as
he partners. Flexibility, adaptation and experimenting with new ideas are the hallmark of this
channel.
 CHAPTER 4:-

COMPANY PROFILE

(About Kotak Life Insurance)

Mr. Uday Kotak (Founder of the kotak group)

Introduction:

Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank
Ltd., its affiliates and Old Mutual plc. The company is one of the fastest growing insurance
companies in India and has shown remarkable growth since its inception in 2001. KLI, as it is
popularly known, offers life insurance to retail customers and also to group business.

Kotak Mahindra group is one of India’s leading banking and financial services organizations,
with offerings across personal financial services; commercial banking; corporate and
investment banking and markets; stock broking; asset management and life insurance. The
Kotak Group employs around 20,000 people and has over 1,350 offices across 370 cities and
towns in India. Kotak also has offices in London, New York, San Francisco, Singapore,
Dubai and Mauritius.

Old Mutual plc is an international savings and wealth management company based in the
UK. Originating in South Africa in 1845, it is among the top 50 largest companies in the
FTSE100. The group has a balanced portfolio of businesses offering Asset Management, Life
Assurance, Banking and General Insurance Services in over 40 countries, with a focus on
South Africa, Europe and the United States, and a growing presence in Asia Pacific. Old
Mutual plc employs approximately 53,000 employees worldwide and is listed on the London
and Johannesburg stock exchanges.
History of KLI:-

Kotak and company started with the business of Agriculture Commodities in the year1927.
Kotak Mahindra is one of India’s leading financial institutions was born in 1984 as kotak
Capital Management Finance Limited. This company was promoted by Mr. Uday Kotak, Mr
Sidney, A.A.Pinto and Kotak group.

Industrial Mr.Harish Mahindra and Mr. Anand Mahindra took a stake in 1986, and that’s
when the company changed its name to “KOTAK MAHINDRA FINANCE LIMITED”.

Kotak Mahindra is one of India’s leading financial institutions, offering complete financial
solution that encompass every sphere of life. From commercial banking, to stock broking, to
mutual funds, to life insurance, to invest banking, the group caters to the financial needs of
individual’s and corporate.

The group has a net worth of around Rs. 2500 crores, employs around 6700 people in its
various businesses and has distribution network of branches, franchisees, representative
offices and satellite offices across 250 cities and towns in india and offices in New York,
London, Dubai and Mauritius. The group services over 1.6 million customer accounts.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the world’s
largest investment bank and brokerage firms). Ford Credit (one of the world’s largest
dedicated automobile financiers) and Old mutual (a lrgest insurance, banking and asset
management conglomerate).

Kotak Mahindra is one of India’s leading financial institutions offering complete financial
solutions that encompass every sphere of life. From commercial banking, to stock banking, to
mutual funds, to life insurance, to investment banking , the group caters to the financial needs
of individuals and corporate.

The kotak Mahindra group’s flagship company, kotak Mahindra finance Ltd which was
established in 1985, was converted into bank- kotak Mahindra Bank Ltd in March 2003
becoming the first Indian company to convert into bank.
STRUCTURE OF KOTAK LIFE INSURANCE:-

 Managing Director- Gaurang shah

 CFO- G.Muralidhar
 Vice president (Trainig and management Development) – Auran patil
 Vice president(Distribution development and planning) – Kamlesh vora
 Appointed Actuary – John Bryce.
HIERARCHY OF KOTAK LIFE INSURANCE.

MANAGING DIRECTOR..

CFO.

SALES HEAD MARKETING HR & APPPOINTED CIO. TRAINING

HEAD. ADMIN. ACTUARY. HEAD.
STRATEGIES:

SALES STRATEGY

Kotak life insurance has a great strategy for sales department.

Company has a three type of strategy for sales and that are as follow:

COMPANY STRATEGY:

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

Like:-

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

Agent income 5 lakhs

Agent stay in city belong > years

Family back ground strong.

Either 2 years experience or post graduate refresher.

EXTERNAL STRATEGY:

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

INTERNAL STRATEGY:

Kotak Life Insurance Company has internal strategy like,

Rewards and Recognition:

LEVEL 1 2 Reebok Travel Bag Combo

LEVEL 2 4 Cordless Phone
LEVEL 3 6 Vacuum Cleaner
LEVEL 4 10 Oven Toaster Grill
LEVEL 5 15 Nokia Xpress Music Mobile
phone
LEVEL 6 20 Philips Home Theatre with
DVD player
MISSION AND VISSION:

MISSION:

 To consistently provide a full spectrum of intelligent financial choice .

 Be a preferred provide of the highest quality service in our chosen business
area.

VISSION:

 Global Indian Financial Service Brand

 Most Preferred Employers/Business partners
 Most Trusted Financial Service Company
 Value and not just size
 Buiness driven with both Value and Growth in mind.
 CHAPTER 5:-

QUESTIONNAIRES:
(from customers)

(The data collected form 20 respondents)

1] Age:-

PERCENTAGE
%
A) Less than 25 35%
B)25-35 45%
C) 35-45 15%
D)More than 45 5%

Graph:-

Percentage

5%
15% 35%
Less than 25
25-35

45% 35-45
More than 45

INTERPRETATION:

The age of customer is Less than 25 is 35%, 25-35 is 45%, 35-45 is 15%, and more than 45 is
5
2] Qualification:-

PERCENTAGE
%
A) Graduate 50%
B) Post Graduate 35%
C) Diploma 5%
D) Other 10%

Graph:-

Percentage

5%
10%

Graduate
50%
Post graduate
35%
Diploma
Other

INTERPRETATION:

The customers qualified in graduate is 50%, Post graduate is 35%,

Diploma is 5%, and others is 10%

3] What is your average annual income?

PERCENTAGE
%
A) Upto 2 lakhs 33%
B) 2-4 lakhs 49%
C) 4-5 lakhs 14%
D)More than 5 lakhs 4%

Graph:-

percentage

14% 4%
33%
2 lakhs
2-4 lakhs
4-5 lakhs
49%
above 5 lakhs

INTERPRETATION:

The annual income of the people having 2 lakhs is 33%, 2-4 lakhs is 49%, 4-5 lakhs is 14%,
and above 5 lakhs is 4%
4] Your family size?

PERCENTAGE
%
A)Below 5 members 70%
B)5-10 members 21%
C)More than 10 members 9%

Graph:-

Percentage

9%
Below 5 members
21%

5-10 members
70%

More than 10
mambers

INTERPRETATION:

The family size of the people below 5 members is 70%, 5-10 members is 21% and more than
10 members is 9%
5] Where you want to invest your surplus amount?

PERCENTAGE
%
A) Fixed deposit 53%
B) Mutual fund 24%
C) Stock 16%
D) Real Estate 7%

Graph:-

Percentage

7%
16%
Fixed deposit
53% Mutual fund
24%
Stock
Real Estate

INTERPRETATION:

The customer want to invest their surplus amount in fixed deposit is 53%, Mutual fund is
24%, Stock is 16% and Real estate is7%.
6] What a benefit you are looking at your policy?

PERCENTAGE
%
A) Saving 40%
B) High returns 9%
C) Tax benefit 30%
D) Sum assured 21%

Graph:-

percentage

21%
40%
Saving
High returns
30% Tax benefit
9%
Sum assured

INTERPRETATION:

The people looking benefit towards their policy in saving is 40%, High returns is 9%, Tax
benefit is 21% and Sum assured is 21%.
7] Have you taken any life insurance policy in kotak?

PERCENTAGE
%
A) Yes 78%
B) No 22%

Graph:-

Percentage

22%

Yes

78% No

INTERPRETATION:

78% of the people taken insurance policy in kotak and 22% of the people not taken any
insurance policy in kotak.
8] Any expectation from kotak?

PERCENTAGE
%
A) Higher returns 20%
B) More security 12%
C) More liquidity 53%
D) Low premium 15%

Graph:

Percentage

15% 20%

Higher returns
12%
More security
More liquidity
53%
Low premium

INTERPRETATION:

People expected higher returns is 20%, More security is 12%, More liquidity is 53% and Low
premium is 15% form KLI.
9] In which of the following would you like to invest?

PERCENTAGE
%
A) Term cover 17%
B) Endowment 24%
C) Child advantage 21%
D) Pension plan 16%
E)Unit Linked plan 22%

Graph:

Percentage

22% 17% Term cover

Endowment
16% 24%
Child advantage
21% Pension plan
Unit Linked plan

INTERPRETATION:

17% of the people want to invest in Term cover, 24% in Endowment, 21% in Child
advantage, 16% in Pension plan and 22% in Unit Linked Plan.
10] How you rate this insurance company and their financial products?

PERCENTAGE
%
A) Life 34%
B)ICICI 3%
C)Tata AIG 17%
D)Birla 16%
E)Kotak 7%
F)SBI life 23%

Graph:

Percentage

23%
34% Life
ICICI
7%
Tata AIG
16% Birla
17%
Kotak
3%
SBI life

INTERPRETATION:

People rate Life to 34%, ICICI to 3%, Tata AIG to 17%, Birla to 16%, Kotak to 7% and SBI
life to 23%.
11] How do you come to know about Kotak life Insurance?

PERCENTAGE
%
A) Insurance agent 12%
B) Relatives 25%
C) Advertisement 42%
D) Other sources 21%

Graph:

Percentage

21% 12%
Insurance agent
25%
Relatives
42% Advertisement
Other sources

INTERPRETATION:

12% of the people come to about KLI through Insurance agent, 25% through Relatives, 42%
through Advertisement and 21% through some other sources.
FINDINGS:-

1. The age of the customers buying insurance was between 25-35.

2. 50% of the customers are Graduate.
3. 49% of the customers annual income is 2-4 lakhs.
4. 70% of the customers size of the family is below 5 members.
5. 53% of the people invested in fixed deposit.
6. 40% of the people were looking to invest in savings
7. 78% of the people have taken life insurance policy in kotak.
8. 53% of the people said that they wanted more liquidity.
9. 24% of the people would like to invest in Endowment plan.
10. 34% of the people said that they would to rate the company on basis of life
insurance products.
11. 42% of the customers became aware about KLI through advertisement
SUGGESTIONS:-

 Marketing in terms of the media via advertisements on Television to small

commercials on FM, hoardings and signage etc. Has to be made because there where
respondents who haven’t even heard Kotak Life Insurance.
 Awareness camp for sub-urban area should focused.
 State and Central Government employees should be targeted because of reasons like:-
 They don’t have Life Insurance cover other than that provided by their respective
employers and LIC.
 Most of them are underinsured.
 They have a stable source of income and social security.
CONCLUSION:-
Insurance is an integral part of any personal financial plan. The type of insurance and the
amount of coverage you obtain all depends on your unique financial and family
circumstances, and must be evaluated carefully. When considering purchasing coverage, you
should review all the potential risks and the financial impact of these risks on your financial
health. This will help you determine what options to look for and what questions to ask. What
you need to keep in mind is that you do not want to be underinsured or over insured, which
means you have to do your homework before you buy. And as with any type of financial
product, you must read the fine print and consult with a competent advisor.
APPENDICES:

Questionnaires:-

1] Age:-

2] Qualification:

3] What is your average annual income?

4] Your family size?

5] Where you want to invest your surplus amount?

6] What a benefit you are looking at your policy?

7] Have you taken any life insurance policy in kotak life insurance?

8] Any expectation from kotak life Insurance?

9] In which of the following would you like to invest?

10] How you rate this insurance company and their financial products?

11] How do you come to know about Kotak life Insurance?

BIBLIOGRAPHY:-

 Life and health insurance – Harold skipper

 Dictionary of insurance – carol pennett
 Banking and Insurance – Vipul Prakashan

WIBLIOGRAPHY:-

 www.kotaklifeinsurance.com
 www.lifeinsurance.com
 www.irda.com
 www.google.com