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Offline Term Plan

Product Name: Term & Preferred Term Plan

Insurer’s Name : Kotak Mahindra Old Mutual Life Insurance Ltd

IRDA Registration No: 107
UIN No: 107N009V04 Preferred Term plan 107N005V04 Term plan

Score Term Plans Category Average

Price Score: 9.0/10 5.1/10

Features Score: 7.0/10 5.7/10
Performance Score: 7.4/10 7.5/10

Copyright @2013 Welcon Consulting LLP. This Report have been prepared by Welcon Consulting (the “Company”), have been prepared solely
for information purposes and use for its members and do not constitute any offer, recommendation or invitation to purchase or subscribe,
and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever.
 Policy Characteristics: Term & Preferred
Term
Category View: Offline Term Insurance Eligibility :
Term Insurance is the simplest form of
Life insurance plan. It pays Sum Assured Minimum Age at Entry 18Years
(the coverage amount) as the death Maximum Age at Entry 65 Years
benefit to the nominee or the legal
successors as and when the insured Minimum SA 3,00,000
person dies during the policy tenure. As No Limit, Subject to
Maximum SA underwriting
there is no savings element attached
with it, it gives no returns on maturity. For SA less than 25 Lakh,
Now term insurance plans are available Term plan is used
Category
online directly from the insurer, or otherwise Proffered
through the common distributors term
channel. The second category is called as
offline term plan. Key Features :

There are some term plans available Min: 5 years

where the insurer pays back the Max: 30 years, subject to
premium given in case of no death claim Policy term
maximum age on maturity
happened during the tenure. Those plans of 70 years
are not considered here.
Maximum age at policy 70 years (Age completed
Generally the coverage amount remains expiry birthday)
same throughout the term, but some Can be converted to
insurer offers increasing or decreasing another plan offered by
Sum insured throughout the tenure at a Kotak Life Insurance
Plan conversion Option
pre defined rate. (except for another term
Available
plan) provided there are at
least 5 years remaining
before the cover ceases.
Preferential Rate for Non
Available
Tobacco Users
Premium payment term Single/Regular pay
Mode of premium
Yearly, Half Yearly,
payment(For regular
Quarterly, Monthly
Premium)
Under Section 80C &
Tax benefit Section 10 (10D) of the
Income Tax Act, 1961
Death Benefit SA
 Kotak Accidental
Death Benefit
 Kotak Permanent
Riders Available
Disability Benefit
 Kotak Critical Illness
Benefit
The Price -Yield Structure
For SA less than Rs. 25 Lakh Product will be considered as Term, otherwise Preferred Tem

Year of Entry Age 25

Policy Term 10 15 20 25 30
SA 10,00,000 10,00,000 10,00,000 10,00,000 10,00,000
Premium(Y) NA NA NA NA NA
SA 25,00,000 25,00,000 25,00,000 25,00,000 25,00,000
Premium(Y) 3,483 3,483 3,483 3,596 3,849
SA 50,00,000 50,00,000 50,00,000 50,00,000 50,00,000
Premium(Y) 5,858 5,858 5,846 6,094 6,563
SA 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000
Premium(Y) 10,616 10,616 10,699 11,223 12,133
Year of Entry Age 35
Policy Term 10 15 20 25 30
SA 10,00,000 10,00,000 10,00,000 10,00,000 10,00,000
Premium(Y) 2,349 2,466 2,705 3,016 3,390
SA 25,00,000 25,00,000 25,00,000 25,00,000 25,00,000
Premium(Y) 4,157 4,382 4,859 5,506 6,377
SA 50,00,000 50,00,000 50,00,000 50,00,000 50,00,000
Premium(Y) 7,275 7,781 8,764 10,084 11,826
SA 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000
Premium(Y) 13,512 14,578 16,573 19,242 22,725
Year of Entry Age 45
Policy Term 10 15 20 25 30
SA 10,00,000 10,00,000 10,00,000 10,00,000 10,00,000
Premium(Y) 4,734 5,265 6,043 6,924 NA
SA 25,00,000 25,00,000 25,00,000 25,00,000 25,00,000
Premium(Y) 7,865 8,877 10,477 12,500 NA
SA 50,00,000 50,00,000 50,00,000 50,00,000 50,00,000
Premium(Y) 14,522 16,686 19,972 24,073 NA
SA 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000
Premium(Y) 27,837 32,303 38,961 47,220 NA
(Illustrative Premium are given for basic Plan considering a Healthy Non Smoker Male profile)

Since the product if a pure term plan without return of Premium, thus there
will be no maturity or periodical returns . So the yield is not considered as a
variable.
 Company Performance: Kotak Life*

Performance Ratio Kotak Life Industry Average

Grievances Resolved Ratio 99.93% 99.96%
Individual death Claim Settlement Ratio 92.10% 82.68%
Solvency Ratio 3.06 3.78
Lapse Ratio in Non linked Business 16.0% 21.21%

Duration of Claim settlement (No of Policies)

7% 0% 1%

16% Within 30 days

31 - 90 Days Insurer’s Background:
91 - 180 days Kotak Mahindra Old Mutual Life Insurance
76%
181 - 365 days Ltd is a 74:26 joint venture between Kotak
More than 365 days
Mahindra Bank Ltd., its affiliates and Old
Mutual plc. A Company that combines its
international strengths and local
Duration wise Claim settlement ratio advantages to offer its customers a wide
range of innovative life insurance
400 products, helping them take important
350 financial decisions at every stage in life and
300 stay financially independent. The company
250 covers over 3 million lives and is one of the
200 fastest growing insurance companies in
150 India.
100
Regd. Office :
50
Kotak Mahindra Old Mutual Life Insurance
0
Ltd.
Within 30 31 - 90 Days 91 - 180 181 - 365 More than 4th Floor, Vinay Bhavya Complex,159
days days days 365 days A, C.S.T. Road, Kalina, Santacruz (East),
Mumbai - 400 098
Persistency ratio For details visit http://insurance.kotak.com
80
70
60
50
40
30
20
10
0
13th 25th 37th 49th 61th
Month Month Month Month Month

*Source: IRDA Annual Report: 2011-2012

Documentations

Policy Proposal:#

1. Recent passport size colour photo(1)

2. Valid photo ID Proof
3. Age proof
4. Recent Address Proof
5. Last 3 year income Proof( IT return, form 16 or equivalents)
6. Medical & Financial questionnaire if required
7. Duly Filled & Signed proposal form

#any other documents may required as per underwriting proceedings of the insurer. Documents
should be self attested

Policy Death Claim:

1. Copy of Death certificate duly attested by the authorized person in the Branch
2. Original Policy document / Indemnity Bond in case of Loss of Policy Document
3. Claimant’s Statement Legal requirements (in case where title to policy monies is not clear)
4. Death Abroad Questionnaire (if death has taken place outside India in a foreign country)
5. Medical Attendant’s Certificate Employer’s Certificate, if applicable
6. Copies of Medical Reports of last and previous hospitalizations, if any
7. Other requirement as warranted by the facts of the Claim

*The list is indicative only; additional documents may be needed depending on the terms & conditions.

Death Claim Procedure

The four step claim process is as follow: Claim Intimation:

•Step 1: Intimate the claim to the insurer & •Email at: kli.claimshelpdesk@kotak.com
collect the claim form. •Call at: 022-66215170 and 022-66215171
•Step 2: Arrange for appropriate document.
•Step 3: Submit required documents along
with the claim form
•Step 4: Insurer will settle the claim within
reasonable time.
How to Read the Research Report I*
Welcon Research Scores a product from the viewpoint of the product
users and assigns relative scores related to the particular product
depending on three primary characteristics: Price, Features & Company
Performance ; and Rate the products based on their combined weighted Score Rating Score Rating
score. The weights of three characteristics in the combined Score for Term 7.5 or above A++ 6.0-6.24 B
Insurance are: 7.25 - 7.49 A+ 5.75-5.99 B-
Price Score : 40%, Feature Score: 30%, Performance Score: 30%. 7.0 - 7.24 A 5.5 - 5.74 C++
The weight may vary depending on product class
For scoring in each characteristics the analyst judges each components of 6.75 - 6.99 A- 5.25 - 5.49 C+
that particular characteristic and assign a judgemental characteristic score 6.5 - 6.74 B++ 5.0-5.24 C
between 1 to 10 compared with the other members of the product set 6.25 - 6.49 B+ Less Than 5 D
considering that the distribution of the relative scores of all the members
in the product set should more or less aligned with a standard normal
distribution.
The Name of the Insurance Plan

The name of the Insurance Company, along with

IRDA registration no & Product Unique
Identification Number
The individual Ratings are motioned for three
category- price, Feature & Performance. Price &
feature are related to the particular product &
Performance is related to the insurer
The three dimensional Scatter graph represents
the Graphical Position of that particular product
in three axis: Price (X Axis), Feature (Y Axis) &
Performance (Z Axis)

Welcon Rating represents the Overall rating of

that insurance product depending on the
composite Score of the product derived from
Price, Feature & Performance Scores

In category view the particular category or

product class is discussed briefly in which the
product belongs to.

Eligibility of the proposer is briefly mentioned for

applying the product. It is a part of product
feature.

Other feature & Product specifications are

considered here. To assign a particular score the
following points are taken care of:
Flexibility, versatility, extra benefits, Discounts
etc.

*Name/Information/Scores mentioned here is indicative in nature shown for illustration purpose only
How to Read the Research Report II

Indicative premium table is given for an easy

reference of premiums for different age, term
& Sum Assured. Particular Score is given
depending on the Sum assured Multiplier &
Sum Assured/Total Premium ratio

Indicative Yield structure is given depending

on the return of the product, both
Guaranteed & Non Guaranteed. To find out
the yield respective cash flows are consider
which is derived from the Benefit illustration.
To calculate the non guaranteed
benefit, current declared bonus rates are
considered for participating plans. If
respective bonus rate is not declared/not
available then the bonus rate of similar types
of products are considered. Respective Score
is assigned on the Yield.

Deferent financial and actuarial

ratios are consider to grade the
performance of the insurer.

The duration of the claim

settlement is consider as a
performance measurement.

Insurer’s Brief history

Duration of claim settlement as

per Rs. Million.

Average Persistence ratio of

the insurer on first Five
Completed Year is consider as a
parameter to measure for the
insurer’s after sales service.

*Name/Information/Scores mentioned here is indicative in nature shown for illustration purpose only
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