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Kotak Life Insurance

Index

Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Particulars Insurance History of Insurance Insurance sector reform IRDA Present forms of Insurance Life Insurance Life Insurance companies operating in India Need for privatization of Insurance sector Kotak Mahindra Group Companies Kotak Life Insurance Companys vision Management Products Kotak Life Insurance Ahmedabad Sales Procedure in Kotak Life Insurance Recruitment of Advisors Survey Report Questionnaire Findings and Analysis of Questionnaire Recommendation Bibliography

Page Numbers 4 6 7 8 9 10 11 12 13 14 17 20 22 23 27 28 29 33 35 39 55 56

GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi

Nakul M Bhatt

Kotak Life Insurance

ACKNOWLEDGEMENT
Every person to get successful in his/her life needs someone who can give him or her proper guidance to achieve their goals and help them to move on a right track towards their goal. None other than our teachers does this job from several years. They are the ones who taught us from the very beginning how to tackle difficult situation. I feel myself lucky to have such helpful teachers; it is because of their help that I was able to do my project work. I have completed my project with the objective to To study the buying behavior of Kotak life Insurance customers of Ahmedabad City. I have successfully completed my project with the help of guidance and encouragement of many people. First I would like to express my deep sense of gratitude to the lecturer Mr. Pankaj Patel, my project guide, without whose help I could not have done my work. He was always there to provide me with all kinds of help I needed in doing my project. It is because of his deep knowledge in marketing field that idea turns into reality. His intelligent & knowledge in marketing was really a great help for making my project. In Kotak, I am especially thankful to Mr. Vikas Sahajwani (Assistance Branch Manager of Kotak Life Insurance Maninagar Ahmedabad), who has provided me all the necessary information and details of their company. I would like to thank Mr. Manoj Bhatt, & Mr. Brijesh Singh though they are not my project guides they helped me a lot in doing my project. I am thankful to my respondents for their cooperation & kind behavior to me as without their willingness & support, my project would not have been completed and also thank all of them for sparing their valuable time for giving response. Nakul M Bhatt

GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi

Nakul M Bhatt

Kotak Life Insurance

DECLARATION
I, the undersigned, Mr. Nakul M Bhatt, declare that project report entitled To study the buying behavior of Kotak life Insurance customers of Ahmedabad city is the result of my own research work carried out during May to July 2007 and has not been previously submitted to any other University or Institution for any other examination, for any other purpose, by any other purpose. I may use this project report in future to use as submission to any other University, institution, without the written permission of my college guide or college director. I also surely promise not to allow or permit any other student to copy from my own project report in any form. Moreover, if I am found or caught as a defaulter of above declaration then I know that my future or present submission will not be permitted and I may not be allowed for the final exams.

With regards, Nakul M Bhatt

GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi

Nakul M Bhatt

Kotak Life Insurance

Insurance
Insurance Business is related with securities of monetary value of assets. Every asset has a value for its owner because its owner earns something by using it. This earning may be in monetary terms or may not be. For example a factory owner or a cow owner can earn money by selling their respective production. And a car owner gets facility of easy travelling, the car using cannot return into monetary term. But if a car owner using his car as a taxi then he can earn in monetary term. Every asset has a fix time period in which only they can be productive. After end of their fixed age they will get expire and they will not be productive. The owners of assets know about that thing and therefore he arranges things by which he can earn after expiry of his current assets. But there are chances that the assets can expire before their respective age. This can be happen by accidents or any natural calamities. If assets expire before their life end time than it can be inversely affect their owner and other persons also who are the beneficial of these assets. Insurance is such a system by which the bad results of such type of accidents and natural calamities can be reduced. Insurance is not securing the assets and also it cannot stop any kind of natural calamities or accidents. It only can reduce the burden of loss on their owners and other beneficially. Logically the Insurance procedure is easy. The people who have the same type of risk are get together and decide among themselves that if any one member get loss than all the other member will divide it equally. For example the all persons who transport goods by ship has the risk related to marine like pirates and bad weather etc. But the persons who are the owner of factories they are not having any risk from the marine but they are having different risk like fire earthquake theft etc

GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi

Nakul M Bhatt

Kotak Life Insurance

General definition: In the words of John Magee, "Insurance is a plan by which large number of people associate and transfer to the shoulders of all risks that attach to individuals." Fundamental definition: In the words of D.S. Hansell, "Insurance is accumulated contributions of all parties participating in the scheme. " Contractual definition: In the words of justice Tindall, "Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer's incurring the risk of paying a large sum upon a given contingency. Why do you need Insurance cover? Insurance will help provide protection to investors from certain or uncertain risks. Certain risk includes events like death, retirement, pension, education, marriage, etc. Uncertain risk includes events like theft A human life is also an income-generating asset. This asset also can be lost through unexpectedly early death or made non-functional through sickness and disability caused by accident. Accident may or may not happen. Death will happen, but the timing is uncertain. If it happens around the time of retirement, when it could be expected that the income will normally cease or the person could have made some other arrangement to meet the continuing needs. But if it happens much earlier when the alternative arrangements are not in place, insurance is necessary to help those dependent on income. In case of a human being, he may have made arrangements for his need after his retirement. These would have been made on the basis of some expectations like he may live for another 15 years or that his children will look after him. If any of these expectations would become inadequate and there could be difficulties. Living too long can be as much a problem as dying too young. These are risks, which need to be safeguard against thorough insurance.

GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi

Nakul M Bhatt

Kotak Life Insurance

History of Insurance
Insurance business is started by marine business. All businessmen were gathered at Liadus House of London and decided that if their goods, which were transported by ship, will damage, than all member will equally divide this loss. This loss can be happen by many reasons like by pirates, bad weather etc The first insurance policy was issued in the year 1583 in England. In India an English European Company and Albert Company started the insurance business. These companies were doing Life Insurance. The Bombay Mutual Assurance Society LTD was the first Indian Insurance Company, which was established in 1870. Then in 1874 the Oriental Life Assurance Company, in 1896 The Bharat, in 1897 The Empire of India came into existence. In 1956 Life Insurance was nationalized and Life Insurance Corporation of India came into existence. At that time 170 companies and 75 provident fund society were running business of Life Insurance in India. Some of the important milestones in the Life Insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act to enable the government to collect statistical information about both life & non-life insurance business. 1938: Earlier legislation consolidation & amended to buy the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indians & foreign insurers and Provident Societies taken over by the Central Government nationalized. LIC formed by the act of Parliament viz. LIC Act, 1956 with a capital contribution of Rs. 5 crore from the Government of India. The Government Insurance Business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd, the first general insurance company established in the year 1850 in Calcutta by the British.

GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi

Nakul M Bhatt

Kotak Life Insurance

Insurance Sector Reforms

In the year 1993, Malhotra Committee, headed by the former Finance Secretary & RBI Governor, R.N. Malhotra, was formed to evaluate the Indian Insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient & competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. Industry should be opened up to competition, but at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. committee felt the need to provide greater autonomy to insurance. Companies in order to improve their performance and enable them to act as independent companies with economic motives. purpose, it had proposed setting up of an independent body. For this The

GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi

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Kotak Life Insurance

The Insurance Regulatory & Development Authority

Reforms in the insurance sector were initiated with the passage of the IRDA bill in Parliament in December, 1999, the IRDA since its incorporation as a statutory body in April, 2000 has fastidiously stuck to its incorporation of framing regulations & registering the private sector insurance companies since being set up as an independent statutory body, the IRDA has put in a framework of globally compatible regulations in the private sector & life insurance and 6 general companies have been registered. There are two types of insurance as from 1-4-2000 i.e. 1) 2) Life insurance General insurance

LIC and GIC with 9 new companies have entered into insurance sector from December 2000. GIC has 4 subsidiary companies. These subsidiaries have been delinked from the parent company. They are: 1) 2) 3) 4) The Oriental Insurance Ltd. The New India Insurance Ltd. The National Insurance Ltd. The United India Insurance Ltd.

The Insurance Regulatory and Development Authority (IRDA) issued the first batches of licenses in the year 2001.

GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi

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Kotak Life Insurance

Present forms of insurance

The business of insurance is divided into four main branches: 1. Marine insurance 2. Fire insurance 3. Life insurance 4. Casualty insurance The first three state the form of disaster against which insurance is provided. The fourth-originally accident insurance-includes all forms not embraced in the other three. An idea of the variety of events against which insurance is offered. Marine insurance antedates every other form, its history dating back over seven centuries. It appears to have been practiced in the Mediterranean, and at least one old policy has come down from the thirteenth century, proving that marine insurance was an established practice among the commercial countries of that time. Fire insurance, the second oldest form to become permanently established, dates from the great London fire of 1666. Life insurance followed a little later, although not until 1760 was a company founded on a modern basis. Casualty insurance owes its origin to the application of steam to railway travel; its more common name of accident insurance was due to the fact that the first events to be insured against were those of accidents to the person on a railway journey. It originated in England in the first half of the nineteenth century.

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Life Insurance
Life Insurance or Life Assurance is a contract between the policy owner and insurer, where the insurer agrees to pay a sum of money upon the occurrence of the policy owners death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals. As with most insurance policies, Life Assurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated beneficiary (or beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people named in the policy. Insured events that may be covered include: Death Accidental Death Permanent Disability Illness Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer, for example claims relating to suicide, fraud, war, riot and civil commotion. Life based contracts tend to fall into two major categories: Protection policies: Designed to provide a benefit in the event of specified event, typically a lump sum payment. Investment policies: Where the main objective is to facilitate the growth of capital by regular or single premium.

**

Sixteen life insurers, a variety of traditional and unbundled product options, emerging challenges, greater convergence of financial services and insurance products the insurance sector needs today a forum that will help development, coordinate and be a face of the life insurance industry; that will communicate on behalf of the life insurance sector, to the Government, Regulator and the public.

Life Insurance Companies operating in India

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Kotak Life Insurance

1) Public Sector LIC (Life Insurance Corporation of India) It was established in 1956 to takeover 250 unorganized insurance companies. 2) Private Sector The market for Private life Insurance Companies in India opened from 2001. From 2001 to till date many new Insurance Companies entered in this market. Some of them are given in the table below.
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13

Date of Reg. 23.10.2000 15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 03.01.2002 14.05.2002 06.02.2004

Name of the Company HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited . ING Vysya Life Insurance Company Private Limited Bajaj Allianz Life Insurance Company Limited Metlife India Insurance Company Pvt. Ltd. AMP Sanmar Life Insurance Company Limited. Aviva Life Insurance Sahara India Insurance Company Ltd.

NEED FOR PRIVATIZATION OF INSURANCE SECTOR

Liberalization and reforms have the potential to change the complexion of an industry. The Indian insurance is no exception. In bid to make it more effective, the government has opened up insurance sector for private players. Let us see rationale for opening up an insurance sector in India.

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Kotak Life Insurance

Life Insurance: India has an amorphous middle-class of about 300 million people who can afford to buy life, health, and disability and pension plan products. Out of this only 20% have insurance -and that too covers only 25% of their needs and financial capacity. The remaining 80% have no insurance cover. The life insurance market of India, therefore, is practically untapped. The low level of penetration of life insurance in India compared to other developed nations can be judged by a comparison of per capita life premium.

Country Japan UK USA India

Life Premium Per Capita US $ in 1994 3,817 1,280 964 4

Clearly, there is considerable scope to raise per capita life premium if the market is effectively tapped. With an insurable population of 300 million, per capita life premium can be raised to a level of US $ 200 $300 and hence the market can expand by 50 to 75 times over the existing size through the extensive and efficient reach to this untapped area by private players. The insurance business in India is pegged at $6.6 billion whereas industry leaders feel privatization would open up as much as $26 billion.

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Kotak Life Insurance

Introduction The Kotak Mahindra Group, established in 1986, is one of India's leading financial institutions. The group has a net worth of around Rs.20 billion and employs 6,000 people in its various businesses. In 2005 the Kotak Mahindra Group realigned a joint venture in Ford Credit; bought Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus limited), sold Ford Credit Kotak Mahindra and launched a real estate fund. Business Kotak Mahindra offers financial solutions ranging from commercial banking to stock broking, mutual funds, life insurance and investment banking. It is also involved in car finance, securities and investment banking. Brands Some of the well-known brands from the group are:

Insurance (Kotak Flexi Plan, Kotak Premium Return Plan) Mutual funds (Kotak Twin Advantage, Kotak Floater)

Location Kotak Mahindra has main offices in Mumbai and New Delhi and has a distribution network of branches, franchisees, representative offices and satellite offices across 216 cities and towns in India. It also has offices in New York, London, Dubai and Mauritius.

Group Companies:
1. Kotak Mahindra Bank Ltd. The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd. that was established in 1985, was converted into a bank Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi
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Company to convert into a Bank. It's banking operations offers a central platform for customer relationships across the group's various businesses. The bank has a presence in the Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance. 2. Kotak Mahindra Capital Company Ltd. Kotak Investment Banking* (KIB) is and Kotak Institutional Equities represent the securities business of the Kotak Mahindra Group **(KI), Kotak Investment Bank is a full service Investment Bank bringing to its clients the global reach and the local knowledge and skills of Kotak Mahindra. As a full service Investment Bank, Kotak Investment Backings core business areas include Equity Issuance, Mergers & Acquisitions, Advisory Services and Fixed Income Securities and Principal Business. Its strength lies in understanding the clients' businesses backed by a strong research team and an extensive distribution network, which spans a wide variety of investors across the country. It is also the first Indian Investment Bank to be registered with the Securities & Futures Authority in the UK (through our wholly owned subsidiary) and the National Association of Securities and Dealers in the USA. Its the first Indian Investment Bank to be appointed by the Government of India as a Co-lead Manager in their international divestment of Gas Authority of India LTD through a GDR offering. Kotak Investment Bank today well positioned in an increasing globalised environment to provide full service to its clients based either in India or overseas. Indias premier Investment Bank

3. International Subsidiaries Kotak Mahindra International Limited (KMIL) is the international arm of the Kotak Mahindra Group and was incorporated in 1994 in Mauritius, with a branch in Dubai. Today the international operations also cover the United Kingdom, through Kotak Mahindra U.K. Limited and in the USA, through Kotak Mahindra Inc. USA. These companies are subsidiaries of Kotak Mahindra Capital Company (KMCC) the Investment Banking Division of the Group. Services offered include GDR and ADR trading and broking, debt syndication, placement of GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi
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Indian securities and advisory services. Kotak Mahindra was the first Indian group to be registered with the Securities and Futures Authority, U.K. Also, Kotak Mahindra is the first Indian group registered in the US providing service to both institutional investors and High Net worth Clients in the US for their investments into Indian markets. 4. Kotak Mahindra Prime 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, 2006, KMP has a retail distribution network comprising of 52 branches (including representative offices) covering about 100 locations in 16 states in the country and has a wide network of Direct Marketing Associates, brokers and agencies supporting the distribution network and servicing around 139202 contracts.

5. Kotak Securities Kotak Securities Ltd., subsidiary of Kotak Mahindra Bank Ltd., is one of India's largest brokerage and distribution houses with a market share of around 8.5 % as on 31st March. Kotak Securities Ltd. has been the largest in IPO distribution. Kotak Securities has been graced with various accolades the latest being Finance Asia Award (2006) - Best Broker In India and Euro money Award (2006) - Best Provider of Portfolio Management: Equities Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), providing dual benefit services wherein the investors GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi
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Kotak Life Insurance

can use the brokerage services of the company for executing the transactions and the depository services for settling them. Kotak Securities has 195 branches servicing more than 2,20,000 customers and a coverage of 231 Cities. Kotaksecurities.com, the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over 2500 crores of Assets Under Management (AUM) .The portfolios Management Services provide top class service, catering to the high end of the market. Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert. 6. Kotak Mahindra Asset Management Company Kotak Mahindra Mutual Fund (KMMF) is managed by Kotak Mahindra Asset Management Company Ltd. a wholly owned subsidiary of Kotak Mahindra Bank Ltd. Kotak Mahindra Mutual Fund launched its Schemes in December 1998 and today manages over Rs.13,635.83 crores of assets from close to 4,34,622 investors in various schemes.

Kotak Mahindra

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Kotak Life Insurance

Kotak Mahindra one of India's leading financial institutions was born in 1985 as Kotak Capital Management Finance Limited. Mr. Uday Kotak, Mr. Sidney A. A. Pinto and Kotak & Company promoted this company. Industrialists 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 solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of over Rs. 2,900 crore, employs around 8,800 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 282 cities and towns in India and offices in New York, London, Dubai and Mauritius. The Group services around 2 million customer accounts.

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Kotak Life Insurance

Old Mutual
**It is the foreign partner of Kotak as per Govt. Law. Old Mutual was established more than 150 years ago and has developed into an International financial services group whose activities are focused on asset gathering and asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion. 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 13000 South Africans in its local operations. In the USA, Old Mutual is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The companys US Life business recorded sales of $4 billion at the end of 2002. The Old Mutual Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups.

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Kotak Life Insurance

Kotak Mahindra Old Mutual Life Insurance Ltd.

Kotak Mahindra Old Mutual Life Insurance is a 76:24 joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001.

Old Mutual, a company with 160 years experience in life insurance, is an international financial service group listed on the London Stock Exchange and included in the FTSE 100 list of companies, with assets under management worth $ 400 Billion as on 30th June 2006. For customers, this joint venture translates into a company that combines international expertise with the understanding of the local market.

Company's vision:
To make Kotak Old Mutual the dominant Life and Pensions player built on trust by world-class people and service. This they hope to achieve by: Understanding the needs of customers and offering them superior products and service Leveraging technology to quickly, efficiently superior risk management and investment service strategies customers to offer and conveniently Developing and implementing

sustainable and stable returns to their policyholders Providing an GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi
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Kotak Life Insurance

enabling environment to foster growth and learning for their employees And above all, building transparency in all their dealings. The success of the company will be founded in its unflinching commitment to 5 core values ~ Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describe what the company stands for, the qualities of their people and the wa\ they work. They do believe that they are on the threshold of an exciting new opportunity, where they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of their team, there are no limits to their growth. Kotak Old Mutual is the leading private sector life insurer in India. In December 2003, it crossed the Rs 1000 crore total premium mark, the first private life insurer to do so. It has over 550,000 policies and a sum assured in excess of Rs 13,000 crore. In line with its strategy to expand distribution, the company has grown to 54 locations today, the most recent branches being opened in Allahabad, Bhatinda and Kota.

The head office of Kotak Old Mutual Life Insurance Co. is located at Raghuvanshi Mills Compound, Tower Mumbai. From there the management team handles the critical organization wide activities. Kotak Old Mutual works on the principle of going as close to its customer as possible hence it has set up a huge network reaching to as many cities as possible. Overall there are 69 branches through out India, covering all the regions. They are as follows: Agra Ahmedabad Ajmer Allahabad Amritsar Hyderabad Hubli Indore Jaipur Jalandhar Nasik Noida New Delhi Patiala Pune

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Kotak Life Insurance Jamnagar Jamshedpur Jodhpur Kanpur Karnal Kochi Kolkata Kolhapur Kota Kottayam Lucknow Ludhiana Madurai Mangalore Meerut Mumbai Mysore Nagpur Raipur Rajkot Ranchi Rourkela Salem Siliguri Surat Thane Thrissur Trichy Trivandrum Udaipur Vadodara Vapi Varanasi Vashi Vijayawada Vizag.

Aurangabad Bangalore Bareilly Bhatinda Bhopal Bhubhaneshwar Calicut Chandigarh Chennai Coimbatore Dehradun Durgapur Faridabad Goa Guntur Gurgaon Guwahati Gwalior

Each branch has the basic responsibilities of Recruitment of New Insurance Advisors Logging in new policies Providing services to current customers Each of these branches has a structure and responsibilities according to the size of business, level of competition, expansion stage of business etc. The structure at the Ahmedabad Main branch where I carried out my training is attached on next page.

Management

Mr. Gaurang Shah (Managing Director) Mr. Gaurang Shah is the Managing Director of Kotak Mahindra Old Mutual Life Insurance Limited. He is Chartered Accountant and a Cost and Works Accountant. GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi
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Kotak Life Insurance

Mr. G Murlidhar (Chief Financial Officer) Mr. Murlidhar is a Chief Financial Officer and Company Secretary of Kotak Life Insurance. As Chief Financial Officer at Kotak Life Insurance, he oversees all aspects of Finance including Operations, Regulatory, Internal Control, Finance, Accounts and Treasury.

Mr. Arun Patil Development)

(Vice

President

Sales

&

Management

Mr. Arun Patil is the Vice President - Sales & Management Development with Kotak Life Insurance. He is post- graduate with Law qualifications.

Products
Kotak Life Insurance has two types of products. 1. Traditional Products. 2. ULIP Products. The premium of traditional products is invested in Government Bonds. Here policyholders are getting return up to 7 to 8 percent. The premium of ULIP products i.e. Unit Linked Insurance Products is invested in the share market. The investment is done after the consent of policyholder. Here policyholders are getting return more than 15 percentage. It is risky also because if the value of share gets down

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than policyholder will not get return. In this case Kotak Life Insurance gives guarantee of capital return.

Kotak Term Plan is a pure risk product that aims to cover your life at a nominal cost. You may want to take this plan to cover your outstanding debts like a mortgage, a home loan etc. Since this is a pure risk cover product, there is no maturity benefits payable on survival. This is a non-participating plan.

The Kotak Preferred Term Plan is designed to provide you with reduced premium rates for a sum assured of Rs.10 lakhs and above. Eligibility for this product: 1) Males over the age of 18 years, who do not use tobacco in any form. 2) Females over the age of 18 years.

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).

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Kotak Life Insurance

The Kotak Child Advantage Plan is an investment plan designed to meet your child's future financial needs. It's a plan that gives your child the "azaadi" to realize his dreams. The plan is a participating plan with a 15-day free look period.

Kotak Endowment Plan is a protection plan that covers your life and at the same time ensures that your money does not lie idle. It invests a portion of your premium in financial instruments and ensures a considerable growth in savings. This is a participating plan (with profits).

The Kotak Capital Multiplier Plan is a participating plan that is built in such a way that it allows your money to multiply, and gives you the flexibility of using this money the way you need it, in regular withdrawals. This is an endowment plan, which is very flexible, and has a lot of other in-built benefits.

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Kotak Life Insurance

The Kotak Retirement Income Plan is a savings plan designed to meet your post-retirement needs. It is a plan that gives you "Jeene ki azaadi". It gives you the choice to remain independent even after retirement. The Kotak Retirement Income Plan is a participating plan. The plan comes in two forms: (i) With Cover (ii) Without Cover.

Kotak Easy Growth Plans are single premium; market linked insurance plans that keep pace with your ever-growing success. It not only helps you save for the future but also lets you reap rich benefits from the investments of your choice. The undisputed advantage of these plans, is its simplicity. This simplicity stems from our clear understanding of what would appeal to a customer who is looking for a hassle free investment option.

Kotak Safe Investment Plan is an investment cum insurance plan, where we invest your money in capital markets and you get marketlinked returns. All gains from the markets are yours to take and in case the markets do not perform well, you would still get back the guaranteed Sum Assured. Sounds interesting. Read on.

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Kotak Life Insurance

Kotak Flexi Plan

The Kotak Flexi Plan is an investment cum insurance plan that can be customized to meet or constantly evolving needs, while on the hand if lets you decide the Amt of insurance cover that you want on the others hand it invest a portion of the Premium in the Capital market to ensure that or money works hard for you. At the same time the plan ensures that you have enough flexibility to meet you are financial objects of savings protection, both through this single plan. The plan gives you the option to add lump sum injections when you want & whats more it offers you the flexibility to withdraw you funds in part or in full.

Head start Plan

Head Start is a very new concept in Insurance Industries. If a policy holder has bought this product he will get triple benefit at the time of any accident. It is an ULIP product.

Kotak Life Insurance Maninagar Ahmedabad

Organizational Structure

Operation

Sales

Administration Hetna Umatia

Bhargav Bhatt

Rajvi Mehta

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Kotak Life Insurance

Vikas Sahajwani(ABM)

Ullas Pandya(ABM)

Sales Managers

Sales Managers

Advisors

Advisors

Operation Department: The operation department is there for login the policies and maintains the records of advisors and policyholders. Administration Department: The administration department is liable to report to the top management or Head Office of the Kotak Life Insurance about the attendance and all other related things. It is same as personnel department. Sales Department: The sales department helps the organization in achieving its goal by selling the policies to the customers who are known as policyholders. There is also a person appointed by the company to provide necessary Training to sales Managers and Advisors.

Sales Procedure in Kotak Life Insurance

For achieving the sales target an organization must have to expand its business. And also it has to have some different strategy from its competitors. Kotak Life Insurance has 6 branches in Ahmedabad at different areas for cover the market. Kotak Life Insurance has the following Unique Selling Proposition: New concepts in products. Capital guarantee for ULIP products. (KSIP, FLEXI) Tax benefit in retirement plan. (KCMP) GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi
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Kotak Life Insurance Triple benefits i.e. sum assured + fund value + future premium. (Head start) It is only a company, which got CRISIL AAA+ Rating.

For success every company has to set a target, which have to achieve within the specified period. In Kotak Life Insurance also the sales department is given the target and they have to achieve this target within the specified period. For achieving the target a company have to expand the awareness of product among various type of persons. And for that they have to expand their market channel. It can be possible through advertising, personally meet etc. Advertising is possible for any company. But in city like Ahmedabad personal meeting to each people is very hard to attain. And thats why recruitment of Advisors is necessary. Advisors are doing work on commission base and they are main link to approach people at different places. Thats why advisors are appointed from every community, as they are link to their respective community. Advisors have to report their respective sales managers and sales managers have to report their respective Assistance Branch Manager, and ABM has to report to the Branch Manager.

Recruitment of Advisors (My Work At Kotak Life Insurance)

It is very hard to meet 50 lakh people in city like Ahmedabad by 10 to 20 sales managers. Thats why Kotak Life Insurance has open 5 to 6 branches in all over Ahmedabad. But this also cannot solve this problem because it will give total 50 to 60 sales managers. More recruitment of sales manager is also not affordable for the company because they have to pay salary to them. For this reason sales manager recruit advisors. If one sales manager recruits 20 advisors from different area and of different occupation like doctor, teacher, businessman, union leader etc. than he alone will join GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi
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Kotak Life Insurance

to 20 different communities. These advisors will sale policy to their respective society and it will be very helpful in achieving target of sale. I was assigned the same task that is recruitment of Advisors. The following is the criteria for a person to recruit as an Advisor: 25 years old. Married. In the city for past 5 years. Income more than 1 lakh. 12th pass.

Advisors are entitled to get commission according to their sale of policy. They get different commission on each different product. The commission is varies between 8% to 40%. This commission is paid to the advisors of the first premium paid by the policyholder. It is only one time commission. From next year they are getting upto 5% commission of the premium paid. This 5% commission is continued till the policyholder pays premium or the maturity period of that policy. The advisors are getting commission on 7th and 22nd of every month. The commission on each product is shown on the next page.

Name of the product

Commission first premium

of

Commission from the next month 5% 5% 5% 5% 5% 5% 2.5% 2.5% 7%, 5%, 1% 2.5%

Traditional Products
Endowment KCMP Money Back Child Plan Term plan Retirement Plan 40% 32% 32% 40% 24% 24% 35% 8% 16% 2% 24%

ULIP Products
Flexi KSIP Head Start (child plan) Easy Growth (single premium) Retirement Plan

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Kotak Life Insurance

For recruit as an Advisor a person must have to pass an exam taken by IRDA. This exam is held regularly at 15 days intervals. For this exam he is given a six days training before the exam at the branch of Kotak Life Insurance. Here he is provided knowledge about Insurance and other important information. After exam also Advisor provided training for three days because of make aware them about various products of the industry and other formalities. An Advisor also has to submit following documents as proof that he is satisfying all criteria of an Advisor: Detail in form and exam form. Training certificate (date & time). Date of birth proof. (Pan Card, license, passport etc) Residential proof. (Electricity bill, telephone bill etc) Education proof (12th pass) + Fees Rs. 1000 for IRDA and Rs. 400 for training. If An Advisor sale 3 policies within a month than he will paid Rs. 1600 extra than commission as money for appreciation. And if he sale 7 policies within 2 months than he will get extra Rs. 2000 other than commission. So if he sale total 10 policies within 3 months than he will get Rs. 3600 other than their commission. In Kotak Life Insurance the Advisors and Sales Managers are following the golden steps to fulfill their target these are: 60 Phone Calls per week 18 appointments per week 10 Need analysis per week 5 Commitments per week 2 policies per week

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Kotak Life Insurance

The above stated points are the references, which are adopted by the advisors. For selling of policies, Advisors and Sales managers have to follow the following procedures: [ Prospecting and qualifying ] [ Preapproach ] [ Approach ] [ Presentation and demonstration ] [ Overcoming objectives ] [ Closing ] [ Follow-up and maintenance ]

Prospecting and qualifying: Here sales Managers and Advisors identify the persons who are strong enough to buy the policy. Preapproach: Here sales Managers and Advisors found the contact numbers and addresses of prospects. And call him and get appointments. Approach: Here Sales Managers and Advisors personally meet with the prospects as per appointment given to them.

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Kotak Life Insurance

Presentation and demonstration: Here Sales Manager and Advisors tell the all features of product to the prospects. And try to convince them that how the product will be beneficial to him. Overcoming objectives: Here Sales Manager and Advisors clear the all doubts of prospects about the product. And gives guarantee that if there will occur any problem than they will always be there to solve it. Closing: Here Sales Manager and Advisors closing the sales. Here prospects have to fulfill all the formalities like he has to submit all the documents as proof. So here that prospects converted into customer of Kotak Life Insurance. Follow-up and maintenance: After closing of sales it is duty of Sales Managers and Advisors that they must maintain relation with the customer. Than only customer will pay regular premium. And if that customer dies before the maturity period than Sales Manager or Advisor has to help his or her nominee in getting the claims.

Survey Report Objectives:

The objective of my project is divided into primary & secondary. The primary Objective: To study the Buying Behavior of Life Insurance customers of the Ahmedabad City. The Secondary Objectives :

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Kotak Life Insurance To study the reasons as to why the general people purchase the life insurance policies of any kind To study the influencing factors behind the peoples decisions on the basis of which they purchase life insurance policies. Which kind of option they look in policy why purchasing plan.

Methodology:
Marketing research is the systematic design, collection, analysis & reporting of data and findings relevant to specific marketing situations facing the company.

The marketing research process deals with inter-related activities, which overlap and do not follow the particular sequence. The research work done in this project for Kotak Life Insurance it is explained in terms of the various steps of research process along with the explanation of particular steps & choosing the particular alternatives in the research process. The major steps involved in the marketing research process:

Research Procedure:

Formulation of Research problem

Choice of Research design

Selection of sources of data

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Kotak Life Insurance

Designing data collection technique

Sampling design

Field survey

Editing, tabulating & analysis of data

Preparing Research report

To study the Buying behavior of Kotak Life Insurance customers of the Ahmedabad city
Name: Occupation:

Questionnaire
1. Do you have the Kotak Life Insurance policy? [ ] Yes [ ] No

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Kotak Life Insurance

2. Which product of Kotak Life Insurance you have? [ ] Flexible plan [ ] Endowment plan [ ] Safe Investment [ ] others

3. Do you have Life Insurance policy with any other company? [ ] Yes [ ] No

4. If yes, Please choose your option. [ ] LIC [ ] ICICI Prudential [ ] Birla [ ] Max [ ] Bajaj

5. Which extra rider you prefer in purchasing a policy? [ ] Health related benefit [ ] Disability benefit [ ] Accident benefit 6. What do you think about your extra premium payment for extra riders? Is it: [ ] Very high [ ] Low [ ] High [ ] Very low

7. Do you want any extra rider more than what company is providing currently? [ ] Yes 8. If yes, please specify .. .. 9. What amount you pay for premium per year? [ ] 5,000-10,000 [ ] 20,000-30,000 [ ] 10,000-20,000 [ ] 30,000 & above [ ] No

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Kotak Life Insurance

10. In which time period you prefer most to buy insurance policy? [ ] Jan. Mar. [ ] Jul. sep. 11. [ ] Apr. Jun. [ ] Oct. Dec.

Which premium policy you prefer most? [ ] Single premium policy [ ] Annuity policy

12. Which is your preferred mode or time period for paying premium amount? [ ] Monthly [ ] Half-yearly 13. [ ] Quarterly [ ] Yearly

On whose name you prefer to take your insurance policy? [ ] Yourself [ ] Children [ ] Spouse [ ] Parents

14. What is your objective behind purchasing this Insurance policy [ [ [ [ ] ] ] ] Tax benefit Provision for higher Investment Repayment of loan [ ] Saving studies [ ] Protection for future [ ] Protection for marriage expenses

15. Which reference group affects your decision in buying insurance policy? [ ] Friends [ ] Relatives [ ] Insurance agents [ ] office group

16. From which source you come to know about Kotaks Insurance policy? [ ] Newspaper [ ] Trade fair 17. [ ] Magazines [ ] Television

What do you think, is your money secured in Kotak?

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Kotak Life Insurance [ ] Very secured [ ] Unsecured [ ] Secured [ ] Very unsecured

18. Are you getting timely reminder of your premium paying from your agents? [ ] Yes [ ] No

19. Are you interested to buy another product from the company? [ ] Yes 20. Why Kotak? [ ] Reputation of the company [ ] Knowledge and behavior of the representatives [ ] Benefit of the company [ ] No

21. At all describe categories.

Highly Satisfied After sales Service

your

satisfying

level

in

following

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

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Kotak Life Insurance

Regularity in receiving policy related documents

Finding and Analysis of Research

Q.1) Kotak Life Insurance Purpose: To know that how many customers having the policy of Kotak. GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi
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Kotak Life Insurance

Findings:
Having the policy of Kotak Yes No

Percentage 100 % 0%

Analysis: In my survey I only emphasize for customers of Kotak Life Insurance Company i.e. why my findings is 100%.

Q.2) Type of policy Plan. Purpose: To know as which type of Kotak life insurance policy the customers are willing to take out of various policies offered by the company. Findings:

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Kotak Life Insurance

Type of policy Plan Kotak Flaxied Plan Kotak Investment Kotak Endowment Others

No. Of respondent 22 14 12 2

25

20

15

10

0 Kotak Flaxied Plan Kotak Kotk Investm ent Endow m ent other

Analysis: From the above graph we can see that most of the customers are prefer Kotak flexi plan because as it name suggests that the plan is very flexible by all parameters. The customer can choose any term, as he likes. He can stop the policy again and revive again and it also offers the market-related gain. Endowment and investment as a whole regular plan which now a day not preferable by customers. As far as protection plan is concern many people are not aware about of it.

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Kotak Life Insurance

Q.3) To have life insurance policy of another company. Purpose: To know whether the present customers have life insurance policy of another company or not. Finding: Yes No 43 7

Q.4) If yes specify: Purpose: To know major competitors of Kotak. Finding:

Company LIC ICICI Max Bajaj Birla No. Of respondent 33 12 7 3 2

35 30 25 20 15 10 5 0 No. of respondent LIC ICICI Max Bajaj Birla

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Kotak Life Insurance Analysis: From above graph hence it appears that till today most people prefer LIC Company compare to newly arrive private company. Because LIC is establish under the Indian government, and thats why people trust more on government making company. In private company ICICI is one of the lending company in comparing to other private company. So, it is a main competitor of Kotak Company.

Q.5) Extra riders: Purpose: To Know which are the other extra writers prefer by the customers while purchasing the their life insurance policy. Finding:
Riders Health Related Disability benefit Accident Benefit
20 15 10 5 0 No of respondent Health Related Disability benefit Accident Benefit

No of respondent 16 20 14

Analysis: The graph itself shows that public takes almost all rides equally. So, there is no much different in between but people prefer most Disability benefit riders.

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Kotak Life Insurance

Q.6) Extra Premium Purpose: To know that whichever the extra premium to be pay for riders are proper or not.

Findings:
Premium High Very High Low Very Low No of respondent 24 12 9 5

25 20 15 10 5 0 No of respondent High Very High Low Very Low

Analysis: Majority of people thinks that to take a policy along with riders its costly affair.

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Kotak Life Insurance

Q.7) Other Riders: Purpose: To Know That which are the other riders that customers are prefer but still not provide by company. Findings:
Other Riders Yes No No. Of responde nt 8 42

Q.8) If Yes Specify: Findings:

Other Riders Critical illness Hospitality Benefit No. Of respondent 5 3

Analysis: It is seen that critical illness is one of the most important riders which Kotak does not providing, So, Kotak should add this riders in his policy. And remaining customers are not known about the riders.

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Kotak Life Insurance

Q.9) Amount of Premium Purpose: To know what amount of premium customers are bills to pay every year for the policy. Finding:

Amount of Premium (In Thousand ) 5000 10000 10000 20 000 20 000 30 000 30 000 above

No. Of respondent 12 8 11 19

20 5000 10000 15 10000 20 000 10 20 000 30 000 5 0 No. of respondent 30 000 above

Analysis: It seen from the table that maximum people are paying premium more than Rs. 30,000. Premium is depended upon age of policyholder and also upon their income.

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Kotak Life Insurance

Q.10) Period of buying life insurance policy. Purpose: To know during which time period the customers purchasing life insurance policy. Finding:
Period Jan to March Aug to June July to Sep Oct to Dec No. Of respondent 22 7 8 12

25 20 15 10 5 0 No. of respondent Jan to March Aug to June July to Sep Oct to Dec

Analysis: It is vary clear that 50%of the respondents are takes a policy in the month of January to march because this period is crucial for tax payers as far as their investment regarding income tax purpose is concerned and 25% of the respondents rare willing to take a policy in October to December. That means3/4 of the people is choosing to take policy during 2nd half of the year. So we can analysis that company should focus to sell their product in 2nd half of the year.

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Kotak Life Insurance

Q.11) Type of premium policy. Purpose: To know that which policy customers are prefer most. Findings:
Policy Single Premium Policy Annuity Policy Percentage 9 41

Analysis: People take insurance policy for the benefit of their family in future. So for that person wants to save fixed amount annually. So thats its quite obvious that most of the customers are prefer to take annuity policy in compare to singer premium policy.

Q.12) Time duration for premium payment Purpose: To know which is the most preferred mode or time period for paying the premium amount. Finding:
Time duration Monthly Quarterly Half-Yearly Yearly No. Of respondent 6 11 15 18

Analysis: From the above graph we can see that mode of paying premium is almost same in the entire category. Those who have preferred paying premium monthly and quarterly considered as systematic investment plan. Those who have preferred paying premium half yearly and yearly consider paying premium once or twice in a year. GIDC Rajju Shroff Rofel Institute of Management Studies - Vapi
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Kotak Life Insurance

Q.13) Preferred name for taking life insurance policy. Purpose: To know on whose name the customers prefer to take their life insurance policy. Findings:
Factor Your Self Spouse Children Parents No. Of respondent 24 12 8 6

25 20 15 10 5 0 No. of respondent Your Self Spouse Children Parents

Analysis: From the above graph we analysis that earning person should take policy on his name followed by his spouse, children that means show something happens to earning person his family is protected. Those who are taking policy for their children and spouse are higher income group.

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Kotak Life Insurance

Q.14) Various reason of buying policy. Purpose: To know the intention or objective behind customers preference for purchasing life insurance policy. Findings:
Objectives Tax benefit Provision for higher studies Investment Repayment of loan Saving Protection for future Protection for marriage expenses No. Of respondent 37 22 17 14 18 33 8

40 35 30

Tax benefit

Provision for higher studies Investment

25 20 15 10 5 0 No. of respondent Protection for future Protection for marriage expenses Repayment of loan Saving

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Kotak Life Insurance Analysis: The above chart states that maximum people are taking policies for tax benefit and for future protection. It is also seen that people are investing money in insurance because they want to secure money to meet higher education expenses.

Q.15) Reference groups affecting: Purpose: To know which are the people, a reference group members affecting the customers in their buying behavior while purchasing life insurance policy. Findings:
Factors Friends Insurance Agents Relatives No. Of respondent 12 26 7

30 25 20 15 10 5 0 No. of respondent Friends Insurance Agents Relatives Office group

Office group

Analysis: Insurance agents are the key people for selling product or policy. If they are competent enough, company can collect good business. People can also think of taking policy from the experience of other person like friends, relatives and office group.

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Kotak Life Insurance

Q.16) Awareness of Kotaks policy Purpose: To know from which sources customers came to know about its various policies. Findings:
Sources of awareness Newspapers Magazines Trade fair Television No. Of respondent 17 10 4 19

20 New spapers 15 Magazines 10 Trade fair 5 0 No. of respondent Television

Analysis: The above graph shows that majority of the people came to know about this companys policy through mass channel of communication i.e. Television and newspaper.

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Kotak Life Insurance

Q.17) Money is secure in Kotak. Purpose: To know the customers thinking power when they investing their money or paying a premium. Findings:
Money Very Secured Secured Unsecured Very Unsecured No. Of respondent 11 29 7 3

Analysis: With the help of the above chart we can see that most of the customers consider Kotak as safe insurance company.

Q.18) Timely Reminder for Premium paying. Purpose: To study that they get the timely reminder of premium paying from their agents Finding:
Answer Yes No No. Of respondent 39 11

Analysis: From the above graph we can notice that companys after sales service is good.

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Kotak Life Insurance

Q.19) Other product of company Purpose: After taking one policy the customers are willing or interested to buy other product from the company. Finding:
Answer Yes No No. Of respondent 37 13

Analysis: We can see that majority of the customers are willing to buy others product of company because their first experience in company is satisfactory.

Q.20) Why Kotak? Purpose: To know that what people like in Kotak and why they want to invest in Kotak Life Insurance. Findings:
Reason Reputation of the company Knowledge and behavior of the representatives Benefit of the company No. Of respondent 16 18 16

Analysis: The above chart shows that all the three factors are having same vote. Thats why company has to maintain all three factors in it for further growing.
Q.21) Satisfaction level of the customers

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Kotak Life Insurance

Purpose: To know that how much customers are satisfy with the company. Findings:

Factors After sales service

Highly Satisfied 18

Satisfied 22

Neutral 7

Dissatisfied 3

Highly dissatisfied Nil

Handsome return on investment Regularity in receiving policy related documents

23

14

12

Nil

12

22

25 20 15 10 5 dssatisfied highly dissatisfied highly satisfied satisfied neutral 0 After sales service Handsome return on investment Regularity in receiving policy related documents

Analysis:
It seen from the above stated chart that mostly customers are satisfied with Kotak Life Insurance. But Kotak has to improve in the method of sending important documents to the customers. Because Customers has complaint that they have to wait for a long time in receiving their policies etc

Recommendations
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Kotak Life Insurance

Kotaks marketing strategy is good but many people are not aware about Kotak Life Insurance. So first it should make people aware about it. Insurance agents should make aware people about its various schemes and benefits from these schemes. Televisions and newspaper are the most important media channel because they cover mass population. So Kotak should concentrate on this two. The mailing system of Kotak is not so good. People are complaining that they are not getting documents and other necessary information on regular time. The current customers are satisfied with the company so Kotak should maintain good relation with them because their reference will bring more customers to Kotak. Kotak should include more riders to its policies like critical illness benefit and hospitality benefit. Most of the customers are taking policies for some benefits. Kotak should add some more benefits by which customers will attract. The advisors should also given commission on time because all the sales are dependent upon them. If they are happy than they will definitely help in raising the sales. In the month of January to March people are more attracting towards investment where they can save their tax. So in this time period Kotak should provide more schemes to the people by which they will attract towards Kotak.

Bibliography

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Kotak Life Insurance

IC 33 Life Insurance (Published by LIC of India) www.kotaklifeinsurance.com www.mykotaklife.com Marketing Management by Kotler and Keller

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