A

Project Study Report

On

KOTAK LIFE INSURANCE COMPANY

TITLED

Submitted in partial fulfillment for the

Award of degree of

Master of Business Administration

Submitted By:- Submitted To:-

 2009-2011
Acknowledgment

I express my sincere thanks to my projects gudie,………………………,

Designation,…………………., Deptt………., for guiding me right form the inception
till the successful completion of the project. I sincerely acknowledge him for
extending their valuable guidance, support for literature, critical reviews of
project and the report and above all the moral support he/she/they had provided
to me with all stages of this projects

I would also like to thank the supporting staff ………………………………………..

Department, for their help and cooperation throughout our project ,

(Singnature of Student)

Name of the Student

PREFACE
Executive Summary
 TABLE OF CONTENTS
1. INTRODUCTION TO THE INDUSTRY

2. INTRODUCTION TO THE ORGANISATION

3. RESEARCH METHODOLOGY

 TITLE OF THE STUDY

 DURATION OF THE STUDY

 OBJECTIVE OF THE STUDY

 TYPE OF STUDY

 SCOPE OF STUDY

 SAMPLE SIZE & METHOD OF SELECTING SAMPLE

 DATA COLLECTION

 LIMITATION OF THE STUDY

4. DATA ANALYSIS AND INTREPRETATION

5. FACTS AND FINDINGS

6. CONCLUSION

7. RECOMMENDATIONS AND SUGGESTIONS

8. ANNEXURE: QUESTIONNAIRE

9. BIBLIOGRAPHY
 Chapter-1

INTRODUCTION TO THE INDUSTRY

 INTRODUCTION
Life Insurance

Life insurance is the only tool to secure our life in future. It also provides a safe guard to the

uncertainty of our life. Life insurance is the cheapest investment tool in which we can earn more in a

short period of time.

In the words of D S Hansell “Insurance may be defined as a social device providing financial

compensation for the effects of misfortune, the payment being made from the accumulated

contributions of all the parties participating in the scheme”

The function of insurance is to protect you against losses you can’t afford. Insurance reduces

anxiety over a possible loss and absorbs the financial brunt of its consequences.

India has traditionally been a high savings oriented country being on par with the thrifty Japan.
Insurance sector in the United States of America is as big in size as the banking industry there. This
gives us an idea of how important the sector is. Insurance sector canalizes the savings of the
people to long- term investments. In India where infrastructure is said to be of critical importance,
this sector will bring the nations own money for the nation

The global life insurance market stands at $1,521.2 billion while the non-life insurance market is

placed at $922.4 billion.

India takes the 23rd position with US $9.933 billion annual premium collections and a meager

0.41% share.

Out of one billion people in India, only 25 million people are covered by insurance.

Indian insurance market is set to touch $25 billion by 2010, on the assumption of a 7 per cent real

annual growth in GDP.

In 3 years time we would expect the 10% of the population to be under some sort of an insurance

cover. This assuming a premium of Rs. 5000 on an average, amounts to 100 million x Rs. 5000=

Rs. 500 bn.

This has made the sector the hottest one in India after IT. With social security and security to the

public at large being the agenda for opening the sector, the role of the regulator becomes all the

more serious and one that would be carefully watched at every step.
History of Insurance

Historians believe that insurance first developed in Summer & Babylonia. The merchants & traders

of these societies transferred & pooled their money to protect themselves from pirates.

In the 18th century BC, Babylonian king, hammurabi developed a code of law known as the code of

specific rules governing the practices of early risk-sharing activities.

Insurance developed during the 1700’s in the North American colonies. In 1730, Benjamin Frank

contributed for the Insurance of Houses from Loss by Fire. The company collected contributions&

this money went into an investment fund. Interest on this fund went towards paying claims

dividends to those who contributed money.

The Industrial Revolution in the US, in the early & mid 1800’s prompted dramatic group. During this

time, many companies were establishes to sell life insurance policies & annuities. Several shared

profits among policyholders, also developed. In addition, some life insurance companies charged

premiums according to age of people & health.

Life insurance, in its present form, came to India from the United Kingdom with the establishment of

a British firm came to India from the United Kingdom with the establishment of a British firm,

Oriental Life Insurance company in Calcutta in 1818, followed by Bombay Life Insurance Assurance
Company in 1823, the Madras Equitable Life Insurance Society in 1829, & the Oriental Government

Security Life Assurance Company in 1874. Prior to 1871, Indian lives were treated as sub-standard

& charged extra premium of 15% to 20%. Bombay Mutual Life Assurance Society, an Indian insurer

which came into existence in 1871, was the first to cover Indian lives at normal rates.

The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life

insurance business. Later in 1928, the Indian Insurance Companies Act was enacted, to enable the

govt. To collect statistical information about both life & non-life insurance business transacted in

India by Indian & foreign insurers, including the provident insurance society. Comprehensive

arrangements were, however, brought into effect with the enactment of the Insurance Act, 1938.

Efforts in this direction continued progressively & the Act was amended in 1950, making far

reaching changes, such as requirement of equity capital for companies carrying on life insurance

business, stricter controls on investment of life insurance companies, ceiling on the expenses of

management & agency commission etc.

By 1956, 154 insurers, 16 non-Indian insurers & 75 provident societies were carrying on life

insurance business in India. On 19th January 1956, the management of the entire life insurance

business of 229 Indian insurers & provident insurance societies & the Indian life insurance business

of 16 non-Indian life insurance companies then operating in India, was taken over by the central

govt. & then nationalized on 1st September 1956 when Life Insurance Corporation came into

existence.
An ordinance was passed in 1968 to amend the Insurance Act to regulate/control non-life.

The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed
over a period of almost 190 years.

The business of life insurance in India in its existing form started in India in the year 1818 with
the establishment of the Oriental Life Insurance Company in Calcutta.

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 enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
 1938 - Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
 1956 - 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.

The General 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.

Some of the important milestones in the general insurance business in India are:

 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
 1957 - General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
  1968 - The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general

insurance business in
India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United

Insurance resulting in set up of GIC

India Insurance Company Ltd. GIC incorporated as a company.

in 1973. Malhotra committee submitted its report in 1994 & recommended means to reintroduce an

element of competition by withdrawing the exclusivity of LIC & GIC. In 1997, Insurance Regulatory

Authority (IRA) was established which was later re-styled as IRDA in 1999.

Malhotra Committee

In 1993, Malhotra Committee- headed by former Finance Secretary and 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 and
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. In
1994, the committee submitted the report and some of the key recommendations included:

i) Structure
Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries
can act as independent corporations. All the insurance companies should be given greater
freedom to operate.

ii) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the
sector. No Company should deal in both Life and General Insurance through a single entity.
Foreign companies may be allowed to enter the industry in collaboration with the domestic
companies.

Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life
Insurance Company should be allowed to operate in each state.

iii) Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up.
Controller of Insurance- a part of the Finance Ministry- should be made independent

iv) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to
50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current
holdings to be brought down to this level over a period of time)

v) Customer Service

LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be
encouraged to set up unit linked pension plans. Computerization of operations and updating of
technology to be carried out in the insurance industry

The committee emphasized that in order to improve the customer services and increase the
coverage of insurance policies, 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.

The 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. For this purpose, it had proposed setting up an independent regulatory body- The
Insurance Regulatory and 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 schedule of framing regulations and 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. The other decision taken simultaneously to
provide the supporting systems to the insurance sector and in particular the life insurance
companies was the launch of the IRDA online service for issue and renewal of licenses to
agents. The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell their
products.

Major Players

LIFE INSURANCE BUSNIESS NON-LIFE INSURANCE BUSNIESS

Life Insurance Corporation General insurance Corporation

HDFC Standard Life Insurance The New India Assurance Company

ICICI Prudential Life Insurance National Insurance Company

Max New York Life Insurance The Oriental Insurance Company

Birla Sun Life Insurance United India Insurance Company

OM Kotak Mahindra Life Insurance Reliance General Insurance

Reliance Life Insurance TATA-AIG Insurance

Allianz Bajaj Life Insurance Royal Sundaram Alliance General Ins.

Dabur CGU Life Insurance Bajaj Allianz General Insurance

ING Vyasa Life Insurance ICICI Lombard Insurance

SBI Life Insurance

What is Insurance?

Insurance is a legal contract that protects people from the financial costs those results from loss of

life, loss of health, lawsuits, or property damage. Insurance provides a means for individuals &

society to cope up with some of the risks faced in everyday life by everybody. People purchase

contracts of insurance, called a Policy, from various insurance companies. Almost every person

existing in this world is associated with insurance, directly or indirectly. Directly, in the sense that

he/she has insured his/her life by some kind of insurance policy from any company. Indirectly, in the

sense they must have insured the assets of their own for example their house, car, or anything else.

Insurance can be divided into three categories

Life Insurance
1.

General Insurance
2.

Health Insurance.
3.

Life insurance is a contract for payment of a sum of money to the person assured (or failing

him/her, to the person entitled to receive the same) on the happening of the event insured against.

Usually the contract provides for the payment of an amount on the date of maturity or at specified

intervals or at unfortunate death. The contract also provides for payment of premium periodically to

the corporation by the assured.

General insurance includes many areas of insurance like marine, motor, engineering, health, fire,

etc. The contract provides for the payment of an amount on the happening of some contingency.

These types of contracts are annual in nature.

Why Insurance?

In life, losses are sometimes unavoidable. People may fall seriously sick or lose income or savings

to pay off medical bills. Individuals or their relatives may come across untimely death, whatsoever

the reason may be. The assets of people may get damaged due to some heavenly act or by some

nuisance creator.

No one knows in advance when a loss will occur or how serious that loss will be. The uncertainty

surrounding potential losses is known as Risk. Insurance offers a way for people to replace risk with

known costs-the costs of buying & maintaining insurance policies.

Insurance pools risks shared by many people, thereby, reducing the risks faced by a group. People

pay to buy insurance coverage (protection from risk). In exchange, all policy holders (people who

won insurance policies) receive a promise that the group of policyholders as represented by the

insurance organization will pay when any policyholder experience any kind of loss.

Importance of Insurance
Insurance benefits society by allowing individuals to share the risks faced by many people. But it

also serves many other important economic & societal functions. Insurance provides the capital that

communities need to quickly rebuild & recover economically from natural disasters. Insurance itself

has become a significant economic force in most of the industrialized countries. Businessmen buy

insurance to cover their employees against work related injuries & health problems. They also

insure their assets against any kind of wear and tear by natural forces & forcibly.

Insurance companies perform a type of monetary redistribution- they collect premiums & eventually

redistribute that money as payments. Depending on the type of insurance, redistribution can take

place anywhere from a month to many decades. Because of this delay between collecting & paying

out funds, insurance companies invest their funds to bring extra revenue.

Such investments help business & government finance their operations, & few profits from these

investments support the operations of insurance companies. With these investment earnings,

insurance companies can keep rates much lower than would otherwise be possible.

Advantages of Life Insurance

1. It is superior to an ordinary saving plan: Unlike other saving plans, it affords full protection against

risk of death. In case of death, In case of death, the full sum assured is made available under a life

assurance policy; whereas under saving scheme the total accumulated saving alone will be
available. The later will be considerably less than the sum assured, if death occurs during early

years.

2. Easy settlement & protection against creditors: The life assured can name persons(s) called

Nominee to whom the policy money would be payable in the event of his death. The proceeds of a

life policy can be protected against the claim of the creditors of the life assured by effecting a valid

assignment of the policy.

3. Ready marketability & suitability for quick borrowing: After an initial period, if the policyholder

finds him unable to continue payment of premiums, he can surrender the policy for a cash sum.

Alternatively, he can tide over a temporary difficulty by taking loan on the sole security of the policy

without delay. Further, a life insurance policy is sometimes acceptable as security for a commercial

loan.

Tax Relief: The Indian Income- Tax Act allows deduction of certain portion of the taxable

income, which is diverted to payment of life insurance premiums from the total income tax

liability. When this tax relief is taken into account, it will be found that the assured is in effect

paying a lower premium for his insurance.

Insurance is something that almost all of us will need sometime, and it is worth
understanding it before buying it.
Various types of insurance include motor insurance, which includes automobile, motorcycle,
and boat insurance, health insurance, life insurance, home insurance, travel insurance,
personal property insurance, key man insurance, dental insurance, rental insurance, and
more.

Often, insurance is required - especially in the cases of motor insurance. Other times, it is a
safeguard.

Insurance is a form of risk-management which spreads risk of many people in exchange for
small payments from each. Specifically, insurance transfers some type of risk (accident, theft,
natural disaster, illness, etc) from one person or group to a more financially-sound entity in
exchange for a payment (also known as a premium). Premiums are often annual or monthly, but
depending on the type of insurance they can be at other intervals.

For example, a consumer can pay a certain amount to an insurer each year to insure that
person's car. This sum represents the insurance company's assessment of the likelihood that
the car will be damaged or wrecked. These data are normally taken from historical figures
relating to the age, sex, profession, driving record, and accident history of the insured, as well
as statistics concerning make and model of the car and its accident record, as well as the
engine size, number of passengers, and even color of the vehicle.
 Chapter-2

INTRODUCTION TO THE ORGANIZATION

About Kotak Life Insurance:

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
services 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 30 th June 2006. For
customers, this joint venture translates into a company that combines international expertise
with the understanding of the local market.
Old Mutual was established more than 150 years ago and offers a diverse range of financial
services in South Africa, the United States, and the United Kingdom. The company is listed on
the London Stock Exchange with a market capitalization and has its headquarters in London.

INTRODUCTION
 About Kotak Life Insurance Ltd:

Kotak life Insurance is a joint venture between Old Mutual plc and Kotak Mahindra.

Old Mutual plc is a London-listed fortune 500 international financial services group focusing on
asset management. At 31 December 2005, Old Mutual had more than 7 million life assurance
policies, 3.6 million banking customers and over 550,000 general insurance policies. Its funds
under management exceeded $310 billion. The group has a substantial presence in the UK, US
and South African Market. It further expanded its European presence through the acquisition of
Scandia in early 2006.

Established in 1984, the Kotak Mahindra group has long been one of India’s most reputed
financial organizations. Kotak Mahindra today is one of the India’s leading financial solutions,
offering complete financial solutions that encompass every sphere of life. The group has a net
worth of over 2,840 core, employs around 7,800 people in its various business and has a
distribution network of branches, franchisees, representative offices and satellite offices across
264 cities and towns in India and offices in New York, London, Dubai, and Mauritius. The group
services over 1.6 million customer accounts.
For our customers, this joint venture translates into a company, which combines international
expertise in insurance, advice and fund management with an understanding of the local market.

Mission

We focus on the needs of our customers and create confidence, trust and loyalty by offering a
wide range of innovative insurance solutions.
Strengthened by our commitment to professional management, we ensure the continued growth
and advancement of our employees.

Vision

Kotak Life Insurance has a deep rooted commitment to improve the quality of life of its
customers, employees and stakeholders. We aim at improving the long term value in our
relationship by continuous innovation and improvements.We do this by our three-prong effort
which strives to make Kotak Life Insurance a corporate with values.

Increase Customer Value

Kotak Life Insurance has gone to the heart of its customer's requirements and developed
products which are unique and serve the customer needs perfectly. We built a relationship of
mutual trust and benefit to serve the Indian customer. At Kotak Life Insurance the customer
always comes first.

Cohesive Work Environment

We form long-term partnership with our employees by offering them an invigorating work
experience. We not only demand loyalty, sincerity and values but also give it back in equal
measures. Kotak Life Insurance will like to offer its employees space to grow, innovate and build
a long-term career.

Work With Honour

Kotak Life Insurance delivers everyday services in the marketplace with the high sense of duty
and commitment. Our employees strive to build the long-term value for all those come in contact
with Kotak Life Insurance. Our consumers, distributors, employees, shareholders and the nation
have our commitment that we will uphold the values of trust, integrity and a Sense of Honour in
every thought, act and deed in order to positively contribute to individual, society and nation
growth.
Our Strenghts

 Financial Acumen - Holds a stable and diversified portfolio and has received
some of the highest ratings in financial strength from industry’s
independent rating agencies.
 Disciplined fund management - Years of experience in asset management,
and a strong track record in managing funds - backed by the acclaimed expertise
of Old Mutual plc
 Innovativeness - Known for being an innovator in providing world-class
pragmatic financial solutions, with a constant focus on customization and
flexibility
 Unrelenting Customer Focus - A highly committed sales force, with customer
satisfaction as the key driving force - a major differentiator
 Transparency in Services - Daily declaration of fund performances, regular
performance benchmarking, well regulated asset management, and monthly
newsletter on market updates

PRODUCTS AND SERVICES OF KOTAK LIFE INSURANCE:-

Products offered by the KOTAK LIFE INSURANCE

PRODUCTS
 rs
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Kotak Headstart Child Plans

Kotak Sukhi Jeevan Plan

Kotak Privileged Assurance Plan

Kotak Term Plan

Kotak Preferred Term Plan

Kotak Money Back Plan

Kotak Child Advantage Plan

Kotak Endowment Plan

Kotak Capital Multiplier Plan

Kotak Retirement Income Plan

Kotak Retirement Income Plan

Kotak Safe Investment Plan II

Kotak Flexi Plan

Kotak Easy Growth Plan

Kotak Premium Return Plan

Riders

Some Important Products

Employee Benefits

Kotak Term Grouplan

Kotak Credit-Term Grouplan

Kotak Complete Cover Grouplan

Kotak Gratuity Grouplan

Kotal Retirement investment plan

"In this policy, the investment risk in the investment portfolio is borne by the policyholder."

With the cost of living constantly on the rise, even the most basic commodities are likely to
become costlier by the day. By the time you retire, the costs of essentials like milk and
vegetables would probably be five fold and Medical costs would have doubled or more.

There’s no better time than now to plan for what should be the best years of life - your
retirement!

An ideal retirement solution is one that gives you complete flexibility and peace of mind, not only
while you save for your retirement but also after you retire. To help you plan better towards the
golden years of your life, we present to you the Kotak Retirement Investment Plan.

An investment plan designed to ensure that your hard earned money is safe from the vagaries
of the capital markets, Kotak Retirement Investment Plan comes with Guaranteed Maturity
Value. A spectrum of fund options makes sure that your investments grow over the years,
fetching handsome returns.

Guaranteed Maturity Value is equal to the total amount of premium paid by you over the policy
term, provided, all your premiums have been paid in full and on time.

Kotak Long Life Secure Plan

An Investment for a life time

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak Long Life Secure Plus is a unit-linked plan that ensures your investment gives maximum
protection to secure your family's future and their financial independence. It gives you the dual-
benefit of wealth creation in the long term and timely protection for your loved ones.

Advantages
  Secure the future for your loved ones with comprehensive protection

 Avail of timely assistance in case of sudden accidental disability

 cx with a wide range of funds

 Enjoy a boost in your fund value by Guaranteed Loyalty Units

Kotak Sukhi Jeevan Plan

Life is unpredictable, but the earlier you start planning for your future, the more likely are you
and your family to reap the rewards.

Sukhi Jeevan is a long-term savings and protection plan that keeps pace with your changing
needs at every step of life - be it saving for your kids’ future, or your retirement. This plan helps
you prepare for important milestones in your life. And, most importantly, it ensures your family is
secure when life dishes up harsh misfortunes.

Advantages

 Fulfill your children’s dreams or plan your retirement

 Small savings to meet your varying needs

 Regular bonuses

 Easy application:

 Simple documentation

 No medical tests*

 Hassle–free sign-up

 Premium payment options: yearly, half-yearly or monthly (through ECS only)

Kotak Gramin Bima Yojana

A fixed deposit that covers your life.

The Kotak Gramin Bima Yojana is an insurance plan that not only covers your life but also
ensures that your money works hard for you and generates returns. The plan lets you pay a
one-time premium so you are saved the bother of remembering to make annual payments.

1. Advantages
The Kotak Gramin Bima Yojana combines the benefits of a fixed deposit and an
insurance plan.

2. Easy one-time premium payments.

3. Guaranteed returns on maturity of the plan.

4. Increasing death benefit cover.

5. No medical tests required.

6. 15 day free-look period.

Kotak Term Group Plan

To keep your employees satisfied and secure, there is a growing need to provide them with
improved benefits that translate to long term value additions for them.

The Kotak Term Grouplan is a good way to show your employees you care. Not only does it
provide a life cover for your employees, it also takes care of their family’s needs and protects
them against life’s uncertainties.

Advantages of person as an Employeer

1. Provide welfare benefits and a sense of security to the employees and their families
 2. Simple administrative procedures

3. High degree of customization and flexibility

4. Option to choose from flat or graded cover, multiple of salary or banded to

length of service

5. Provision for additional benefit riders at nominal costs

6. The premium paid by the employer is deductible as business expense under section 37
of the Income Tax Act, 1961

7. Contributions other than statutorily required under any law in force may be liable for
Fringe Benefit Tax1.

Advantages of organization employees

1. Insurance protection at a relatively low cost.

2. Hassle free and convenient process.

3. Cover is available 24 hours a day, 7 days a week, anywhere in the world.

4. Conversion option- Option to convert to an individual policy from Kotak Life Insurance.

5. All claim payments may be considered as non-taxable receipts and could consequently
be considered as tax exempt under Section 10(10D) of the Income Tax Act, 1961.

6. If the employee pays part or whole of the premium, he/she may be able to claim a
deduction under Section 80(C) of the Income Tax Act, 1961.
MOST INDIVIDUAL PLANS

Accidental death benefit

This benefit provides an additional amount (over and above the death benefit) to the

beneficiary in the event of accidental death of the life insured. Accident is defined as that

which causes death by violent, accidental, external and visible means and independent of

any physical or mental illness.

The maximum cover available under this benefit is equal to the basic sum assured (subject

to a maximum of Rs 10 lakes.

Critical Illness Benefit (CIB)

This benefit can be added to the basic life insurance plan to provide financial support in the
event of medical emergencies. On the first occurrence of critical illness during the term of
the plan, you would receive a portion of the sum assured to help you reduce your financial
burden in this emergency.
The maximum Critical Illness Benefit that you can avail of is equal to half of the basic sum
assured (subject to a maximum of Rs 20 lakh
The list of critical illnesses is:
Heart Attack (MI)
Cancer
Stroke
Coronary artery by-pass graft surgery (CABG)
Kidney failure
Major organ transplants
Paralysis

Market Share
 Mkt Share

ICICI Pru Birla Sun HDFC MAX New SBI Life TATA AIG Alli bajaj Om Kotak ING Aviva Oths
Kotak Mahindra Company Locations

Need for Life Insurance

Risks and uncertainties are part of life's great adventure -- accident, illness, theft, natural
disaster - they are all built into the working of the Universe, waiting to happen.
Insurance then is man's answer to the vagaries of life. If you cannot beat man-made and
natural calamities, well, at least be prepared for them and their aftermath.
Insurance is a contract between two parties - the insurer (the insurance company) and the
insured (the person or entity seeking the cover) - wherein the insurer agrees to pay the
insured for financial losses arising out of any unforeseen events in return for a regular
payment of "premium".
These unforeseen events are defined as "risk" and that is why insurance is called a risk
cover.
Hence, insurance is essentially the means to financially compensate for losses that life
throws at people - corporate and otherwise.
The Customer:-

1. High-class Businessman
2. Middle class employees
3. Upper Middle class Businessman