Beruflich Dokumente
Kultur Dokumente
“KOTAK
LIFE
INSURANCE”
Of
“MASTER OF BUSINESS ADMINISTRATION”
Session 2009-1011
APOLLO INSTITUTE OF
TECHONOLOGY
KANPUR
Declaration
2
Certificate of the Organisation
3
APOLLO INSTITUTE OF
TECHNOLOGY
(Approved by AICTE, New Delhi & Affiliated to G.B.T.U., Lucknow)
Village- Sundhela, Block- Sarsaul, Kanpur Allahabad Highway, Kanpur
Phone: 0512-2752111, 2752113, Fax No: 0512-2752114
I have the pleasure to certify that Mr. Anjani Dayal Srivastava, a student of
2nd year (Full-Time) Master of Business Administration program of Gautam
Budha Technical University, Lucknow, is bonafide student of our Institute.
The dissertation titled/project report “Consumer Investment &
Buying Behaviour at Kotak Life Insurance” is a record of
original research work carried out by Mr. Anjani Dayal Srivastava under my
supervision and guidance of Mr.Ravindra bhatiya and no part of this report
has been submitted for the award of any other degree, diploma, fellowship or
any other similar title or prize.
4
Acknowledgement
In preparation of this report by me, I feel great pleasure because it gives me extensive
practical knowledge in my career. I get idea about Indian Life Insurance Industry by this
project.
(ABM), Mr. Surabh mahana (SM) for his valuable guidance during my project work. I also
like to all staff of Kotak Life Insurance who guide me in project work directly or indirectly to
I am thankful to Mr. Ravindra Bhatia (Faculty Guide) for valuable inspiration and
guidance provided me throughout the course of this project. They have patient and critically
I would like to take opportunity to express my gratitude towards all of them who have
and each individual who directly or indirectly help me during the project work.
5
Table of Contents :-
1. Executive summary……………….………………….. 8
2. Company Profile……………………..………………..11
7. Finane………………………………………………….55
B}Ratio analysis……………………………………..59
8. Limitations…………………………………………...74
9. Bibliography / References…………….....................76
10.Appendices…………………………...……………..77
6
Executive Summary
Executive Summary :-
7
I was given the opportunity to pursue my training in KOTAK LIFE INSURANCE for a
✔ Comparison of ULIPs.
✔ To discuss various new avenues in insurance and find the Market potential of
Trust needs to be developed among the customers both as far as the ULIP
as
a product is concerned
it
because they were not too confident about their knowledge. This very fact
in ULIP (which is done by most of the companies). The reason is that very
and then the product and special emphasis among the female chunk of the population.
8
Adequate advertisement via appropriate media should be done by the
various
The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a
strong and powerful supervisory and regulatory authority for insurance. Post nationalization,
But the scenario changed with the private and foreign companies
foraying in to the insurance sector. This necessitated the need for a strong, independent and
autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would
have taken time, the then Government constituted through a Government resolution an
legislation.
act to provide for the establishment of an Authority to protect the interests of holders of
insurance policies, to regulate, promote and ensure orderly growth of the insurance industry
and for matters connected therewith or incidental thereto and further to amend the Insurance
Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business
(Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India
(for life insurance business) and General Insurance Corporation and its subsidiaries (for
The act extends to the whole of India and will come into force on such date
as the Central Government may, by notification in the Official Gazette specify. Different
9
The Act has defined certain terms; some of the most important ones are as
follows: Appointed day means the date on which the Authority is established under the act.
Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up by
the Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd January,
1996.
Words and expressions used and not defined in this Act but defined in the
Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or the General Insurance
Business (Nationalization) Act, 1972 shall have the meanings respectively assigned to them
in those Acts
(a) Which is formed and registered under the Companies Act, 1956
(b) in which the aggregate holdings of equity shares by a foreign company, either by itself or
through its subsidiary companies or its nominees, do not exceed twenty-six percent, Paid up
10
Company Profile
11
Stock broking businesses in the UK. Kotak Group was established in 1985.Kotak
Mahindra Bank is the parent company of the group. Kotak Group entered into the life
insurance business in 2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture
between Kotak Mahindra Bank Ltd. (74%) and Old Mutual plc. (26%) Old Mutual plc is a
OLD MUTUAL is the largest financial services business in South Africa, through its
life insurance, asset management, banking and general insurance operations. The company
serves 4 million life insurance policyholders and employs over 13 000 South Africans in its
local operations.
In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an
array of specialist asset management skills through its 23 asset management businesses. The
Operations in the United Kingdom are focused on wealth management, through Gerrard
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.
12
The main motto of the present study accomplishes the following objectives :-
● To know about brand awareness of Kotak Life Insurance and potential customer’s
perception for investment in ULIP.
Life insurance plans are eligible for deduction under Sec. 80C ,
Health insurance plans and critical illness riders are eligible for deduction under Sec. 80D ,
The maturity proceeds or withdrawals of life insurance policies are exempt under Sec
10(10D).
●To identify the qualities for a good financial Advisor to enhance the business, of the
company at the particular duration of time.
Literature Review
13
Overview of LIFE INSURANCE:-
Life insurance is a form of insurance that pays monetary proceeds upon the death of the
insured covered in the policy. Essentially, a life insurance policy is a contract between the
named insured and the insurance company wherein the insurance company agrees to pay an
agreed upon sum of money to the insured's named beneficiary so long as the insured's
With a large population and the untapped market area of this population
growing at the rate of 15-20% annually. Together with banking services, it adds about 7
percent to the country’s GDP. In spite of all this growth statistics of the penetration of the
insurance in the country is very poor. Nearly 80% of Indian populations are without life
insurance cover and the health insurance. This is an indicator that growth potential for the
It was due to this immense growth that the regulations were introduced in
the insurance sector and in continuation “Malhotra Committee” was constituted by the
government in 1993 to examine the various aspects of the industry. The key element of the
reform process was participation of overseas insurance companies with 26% capital. Creating
a more competitive financial system suitable for the requirements of the economy was the
Since then the insurance industry has gone through many changes. The
liberalization of the industry the insurance industry has never looked back and today stand as
one of the most competitive and exploring industry in India. The entry of the private players
and the increased use of the new distribution are in the limelight today. The use of new
14
distribution techniques and the IT tools has increased the scope of the industry in the longer
run.
Insurance is the business of providing protection against financial aspects of risk, such as
those to property, life health and legal liability. It is one method of a greater concept known
as risk management –which is the need to mange uncertainty on account of exposure to loss,
values of assets. Every asset has a value. The asset would have been created through the
efforts of the owner. The asset is valuable to the owner, because he expects to get some
benefit from it. The benefit may be an income or in some other form.
English company. The first insurance company was the Bombay mutual assurance society ltd,
formed in 1870 in Mumbai. Insurance helps to reduce the consequences of adverse situation.
Insurance is the method of spreading and transfer of risk. The fortunate many who are
exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the
and in return is able to claim a payment from the insurer if the insured suffers a defined type
Insurance companies also earn investment profits, because they have the
use of the premium money from the time they receive it until the time they need it to pay
claims. This money is called the float. When the investments of float are successful they may
earn large profits, even if the insurance company pays out in claims every penny received as
premiums. In fact, most insurance companies pay out more money than they receive in
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premiums. The excess amount that they pay to policyholders is the cost of float. An insurance
company will profit if they invest the money at a greater return than their cost of float.
circumstances under which a benefit payment will be made and the amount of the premiums.
Marine insurance is the oldest type of insurance and one of the earliest
records of a marine policy relates to a Mediterranean voyage in 1347. This was followed by
life insurance some 300 years later. Fire insurance, however, did not begin until after the
Great fire of London in 1666. In India all the three insurance developed as under:
uncertainty of the financial loss .we don’t have any command on uncertainties. This makes it
is essential that we think in favor of advice that becomes instrumental in spreading the loss. It
is in this context that we think about Insurance, which is considered to be a social device to
The insurance industry in India can broadly classify in two parts. They are.
1) Life insurance.
2) Non-life (general) insurance.
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1. Life Insurance:-
In 1818 British introduced to India, with the establishment of the oriental life
insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay
mutual life assurance society was set up in 1870. The life insurance act, 1912 was the first
statuary measure to regulate the life insurance business in India. In 1983, the earlier
legislation was consolidated and amended by the insurance act, 1938, with comprehensive
provisions for detailed effective control over insurance. The union government had opened
the insurance sector for private participation in 1999, also allowing the private
insurance sector, 12 private sector companies have entered the life insurance business.
Benefits:-
Thus insurance is found to be very useful in the lives of the person both in short
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A. Principle of good faith:
“A positive duty to voluntary disclose, accurately and fully, all facts,
company to be established in India in 1850, whose shares were mainly held by the British.
The first general insurance company to be set up by an Indian was Indian mercantile
insurance co. Ltd., which was stabilized in 1907. There emerged many a player on the Indian
scene thereafter.
The general insurance business was nationalized after the promulgation of General
business.
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.
The story of insurance is probably as old as the story of mankind. The same instinct
that prompts modern businessmen today to secure themselves against loss and disaster
18
existed in primitive men also. They too sought to avert the evil consequences of fire and
flood and loss of life and were willing to make some sort of sacrifice in order to achieve
security. Though the concept of insurance is largely a development of the recent past,
particularly after the industrial era – past few centuries – yet its beginnings date back almost
6000 years.
Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance
company on Indian Soil. All the insurance companies established during that period were
brought up with the purpose of looking after the needs of European community and these
companies were not insuring Indian natives. However, later with the efforts of eminent
people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian
lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums
were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of
first Indian life insurance company in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through insurance to various
sectors of society. Bharat Insurance Company (1896) was also one of such companies
inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance
companies. The United India in Madras, National Indian and National Insurance in Calcutta
and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-
operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the
great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and
Swadeshi Life (later Bombay Life) were some of the companies established during the same
period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912,
the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life
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Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated between
foreign and Indian companies on many accounts, putting the Indian companies at a
disadvantage.
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 Crore, it rose to 176
companies with total business-in-force as Rs.298 Crore in 1938. During the mushrooming of
insurance companies many financially unsound concerns were also floated which failed
miserably. The Insurance Act 1938 was the first legislation governing not only life insurance
but also non-life insurance to provide strict state control over insurance business. The demand
for nationalization of life insurance industry was made repeatedly in the past but it gathered
momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the
Legislative Assembly. However, it was much later on the 19th of January 1956 that life
insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian
Nationalization was accomplished in two stages; initially the management of the companies
was taken over by means of an Ordinance, and later, the ownership too by means of a
comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the
19th of June 1956, and the Life Insurance Corporation of India was created on 1st September,
1956, with the objective of spreading life insurance much more widely and in particular to the
rural areas with a view to reach all insurable persons in the country, providing them adequate
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long-term contracts and
during the currency of the policy it requires a variety of services need was felt in the later
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years to expand the operations and place a branch office at each district headquarter. Re-
organization of LIC took place and large numbers of new branch offices were opened. As a
result of re-organization servicing functions were transferred to the branches, and branches
were made accounting units. It worked wonders with the performance of the corporation. It
may be seen that from about 200.00 Crore of New Business in 1957 the corporation crossed
1000.00 Crore only in the year 1969-70, and it took another 10 years for LIC to cross
2000.00 Crore mark of new business. But with re-organization happening in the early
eighties, by 1985-86 LIC had already crossed 7000.00 Crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional
offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers 100
divisional offices and connects all the branches through a Metro Area Network. LIC has tied
up with some Banks and Service providers to offer on-line premium collection facility in
selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at
Mumbai, Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many
other cities. With a vision of providing easy access to its policyholders, LIC has launched its
SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate anywhere servicing and
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives which
inspired our forefathers to bring insurance into existence in this country inspire us at LIC to
take this message of protection to light the lamps of security in as many homes as possible
21
Some of the important milestones in the life insurance business in India
are:-
• 1850 Non life insurance debuts with triton insurance company. 1870 Bombay mutual
• 1912 The Indian Life Assurance Companies Act enacted as the first statute to
• 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
• 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,
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
• 1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all
• 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.
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• 1968 The Insurance Act amended to regulate investments and set minimum solvency
• 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
and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and
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.
2000 IRDA starts giving licenses to private insurers: Kotak Life Insurance, ICICI
prudential and HDFC Standard Life insurance first private insurers to sell a policy
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2001 Royal Sundaram Alliance first non life insurer to sell a policy 2002 Banks
24
25
Research Methodology:-
Research always starts with a question or a problem. Its purpose is to question through the
application of the scientific method. It is a systematic and intensive study directed towards a
more complete knowledge of the subject studied. Marketing research is the function which
links the consumer, customer and public to the marketer through information- information
used to identify and define marketing opportunities and problems generate, refine, and
evaluate marketing actions, monitor marketing actions, monitor marketing performance and
Marketing research specifies the information required to address these issues, designs, and
the method for collecting information, manage and implemented the data collection process,
analyses the results and communicate the findings and their implication.
of the study demands the answers of the question related to find the potentiality of life
26
1. Formulating the problems
There are two types of data collection method use in my project report:-
RESEARCH
EXPLORATORY RESEARCH
As there was a need to know the best possible practices regarding customer’s perception and
mere description of the situation will not be sufficient, exploratory research has been used.
2. Various Websites
4. News-papers, etc.
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QUANTITATIVE RESEARCH
To give numerical evidence to the research, Survey Method has been adopted.
Questionnaires have been used to collect Primary data for the research. Questionnaire help
in easy quantification and this is a quick and cheaper method, since time and financial
constraints were there. This way, larger sample size could be used from sources situated at
other cities as well. A Five point Graphic Rating Scale or Likert Scale has been used in this
research to find out the degree of agreement of respondents with given statements relating to
subject.
Research Design
In our live project, we decided primary data collection method because our study nature does
not permit to apply observational method. In survey approach we had selected a questionnaire
method for taking a customer view because it is feasible from the point of view of our subject
& survey purpose. We conducted 50 sample of survey in our project in Delhi region.
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Data Analysis and Interpretation:-
In it through the help of questionnaires we conducted the research and these are as below:-
8% 30%
12%
< 2 Lac
2 - 4 Lac
4 - 5 Lac
5> Lac
50%
29
Statement 2 :- People want to Invest their surplus Money.
F ix e d D e p o s it (5 0 % )
M u t u a l F u n d s (2 0 % )
S t o c k s (1 5 % )
R e a l E s t a t e (1 5 % )
30
Statement 3 :- Benefits required by the people regarding their
Investments.
S aving (28% )
H igh R eturns (40% )
Tax -rebates (12% )
R is k -c over (30% )
31
Statement 4:- Expectations from the Life Insurance Companies
.
60
50
40
30
20
10
0
High-rtrn Liquidity Security Lower
(20%) (13%) (52%) Premium
(15%)
32
Statement 5:- Preference among various Insurance Plans
35
30
25
20
15
10
0
Term Endo Child Pension Unit link
-cover -wment
advantage scheme (22%)
(18%) (33%)
(21%) (6%)
33
Statement 6:- Customer’s awareness about the Product
100%
90%
80%
70% LIC
60% ICICI
TATA AIG
50%
BIRLA
40% KLI
30% HDFC
20% Bajaj Allianz
10%
0%
34
Statement 7:- At an age point people have taken Insurance-policy
35
35
30
25
20
15
10
0
20 - 30 41 - 50 Above 50
Yr. (33%)Yr. (31%)Yr. (22%) Yr. (14%)
36
G o vt .
E m p lo y e e (1 5 % )
P riva t e
E m p . (5 2 % )
B us.
P ro fe s s io n a l(2 1 % )
O t h e rs (1 2 % )
37
70
60
50
40
30
20
10
0
Yes (30%) No (70%)
38
60
50
40
30
20
10
0
HDFC KLI Others (18%)
Prudential (17%)
Standard
(50%)
ICICI (15%)
39
Statement 11:- People’s interest of investing in KLI
60
50
40
30
20
10
0
Intd. (15%) Semi-intd. Not Interested
(30%) (55%)
40
Statement 12:- Medium to select KLI.
In s u ra n c e C o n s u lt a n t s
(1 2 % )
R e la t ive s (2 5 % )
A d ve rt is e m e n t (4 2 % )
O t h e r S o u rc e s (2 1 % )
41
42
KOTAK MAHINDRA OLD MUTAL PLC KOTAK LIFE
BANK INSURANCE
( 74% ) ( 26% ) ( 100% )
43
Old Mutual Plc:-
Old Mutual was established more than 150 years ago. Old mutual plc, Is a
world-class international financial service company. It owns the largest companies in the
They are:
3. Bank
It has been developed into an International financial services group whose activities
are focused on asset gathering and asset management. The Old Mutual Group offers a diverse
range of financial 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 and is a member of the elite FTSE 100 index. In the
2003 rankings of the World's 500 largest corporations by Fortune magazine, Old Mutual
climbed 87 places to position number 366 and was also listed as the 14th largest insurance
Old Mutual is the largest financial services business in South Africa, through its life
insurance, asset management, banking and general insurance operations. The company serves
4 million life insurance policyholders and employs over 13 000 South Africans in its local
operations.
44
In the USA, Old Mutual is one of the top ten fixed annuity businesses
offering an array of specialist asset management skills through its 23 asset management
businesses. The company’s US Life business recorded sales of $4 billion at the end of 2002.
Gerrard as one of the leading private client stock broking businesses in the UK.
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.
• A 26%-74% Joint venture between Old Mutual plc and KotaK Mahindra Bank Ltd.
44 branches in 31 cities.
45
2001-02: 7Crores
2002-03: 35Crores
2003-04: 125Crores
2005-06: 373Crores
2006-07: 396Crores
2007-08: 614Crores
2008-09: 947Crores
AWARDS
2004
Best equity House in India by Euro Money
2005
2006
46
2007
Ranked no.1 in six categories in the Annual Euro money Private Banking
Ranked #1 in the league table for Book runner/Lead Manager in public equity
Topped the best Mutual Fund House in the NDTV Business Leadership
Awards2006
Best Bond Fund Group Over Three Years by Lipper Fund Awards India
Ranked the best debt fund over 5 years by lipper for the Kotak Bond Regular
Plan
Ranked ICRA- MFRI and was the recipient of the Silver Awards by ICRA for the
2008
Most Popular Inventor Relation Website for the Asia/Pacific Region Conducted by IR
Global Rankings
Problem Identification:
47
The basic step of any research is to find out the problem of the company, the problem
may be inside in the company or outside of the company. “Well Defined problem is half
solved”. The researcher has defined the problem of the organization which is converted in to
“To study the organizational activities of all the department with the help of
Promoters:
Mahindra Group (Kotak Group) formed to finance all passenger vehicles. The company is
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
54 branches (including representative offices) covering about 100 locations in 17 states in the
country and has a wide network of Direct Marketing Associates, brokers and agencies
48
℘ Kotak Mahindra Bank Ltd.
Kotak Mahindra Bank Limited (KMBL) is the holding company and the
flagship of the Kotak Mahindra Group. It was actually incorporated as Kotak Capital
It commenced operations with Bill Discounting and soon started other fund-
based activities like corporate leasing & hire purchase, automobile finance and money market
operations. Subsequently, it also entered the funds syndication and the Investment banking
business.
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 and is a member of the elite FTSE 100
index. In the 2003 rankings of the World's 500 largest corporations by Fortune magazine, Old
49
Mutual climbed 87 places to position number 366 and was also listed as the 14th largest
Old Mutual is the largest financial services business in South Africa, through
its life insurance, asset management, banking and general insurance operations. The company
serves 4 million life insurance policyholders and employs over 13 000 South Africans in its
local operations.
In the USA, Old Mutual is one of the top ten fixed annuity businesses offering an array
of specialist asset management skills through its 23 asset management businesses. The
through Gerrard as one of the leading private client stock broking businesses in the UK.
Distribution
Kotak life has one of the largest distribution networks amongst private life
insurers in India. It has a strong presence across India with over 2000 branches (including
1,095 micro-offices) and an advisor base of over 261,000 (as on August 31, 2008).
The company has 24 bank assurance partners having tie-ups with ICICI
Bank, Bank of India, South Indian Bank, Shamrao Vitthal Co-Op Bank, Jalgaon Peoples Co-
op Bank, Ernakulam District Co-op Bank, Idukki District Co-op Bank, Ratnagiri Sindhudurg
Gramin Bank, Solapur Gramin Bank, Wainganga Kshetriya Gramin Bank, Aryawart Gramin
Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank, Baitarani Gramya Bank,
Ratnagiri District Central Co-op Bank, Seva Vikas Co-op Bank, Sangli Urban Co-Operative
Bank, Baramati Co-operative Bank, Ballia Kshetriya Co-Operative Bank, The Haryana State
50
Co-Operative Bank, Renuka Nagrik Sahakari Bank, Amanath Co-Operative Bank, Arvind
SALES DISTRIBUTION:
Tied Agency:
large advisor force that targets various customer segments. The strength of tied agency lies in
an aggressive strategy of expanding and procuring quality business. With focus on sales &
people development, tied agency has emerged as a robust, predictable and sustainable
business model.
Kotak life was a pioneer in offering life insurance solutions through banks and
alliances. Within a short span of two years, and with nearly a large number of partners, B &
A has emerged as a vital component of the company’s sales and distribution strategy,
contributing to approximately one third of company’s total business. The business philosophy
at B&A is to leverage distribution synergies with our partners and add value to its customers
as well as the partners. Flexibility, adaptation and experimenting with new ideas are the
51
Market Share:-
Industry growth rate at 31% (2008-09) with premium income From new Business.
Customer satisfaction refers to how satisfied customers are with the products or services they
receive from a particular agency. The level of satisfaction is determined not only by the
quality and type of customer experience but also by the customer’s expectations.
52
• has a direct relationship with, or is directly affected by your agency and
An organization with a strong customer service culture places the customer at the centre of
service design, planning and service delivery. Customer centric organizations will:
Why is it important?
There are a number of reasons why customer satisfaction is important in Insurance Sector:
• Meeting the needs of the customer is the underlying rationale for the existence of
deliver outcomes.
• Organizations that strive beyond minimum standards and exceed the expectations of
53
The process for measuring customer satisfaction and obtaining feedback on organizational
performance are valuable tools for quality and continuous service improvement.
Kotak Life Insurance offers a range of innovative, customer-centric products that meet the
needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to
Retirement Child
easy child.
54
55
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Finance
The field of finance refers to the concepts of time, money and risk and how they are
interrelated. Banks are the main facilitators of funding through the provision of credit,
although private equity, mutual funds, hedge funds, and other organizations have become
important. Financial assets, known as investments, are financially managed with careful
attention to financial risk management to control financial risk. Financial instruments allow
schools and non-profit organizations. In general, the goals of each of the above activities are
achieved through the use of appropriate financial instruments and methodologies, with
Corporate finance
corporation's activities. For small business, this is referred to as SME finance. It generally
involves balancing risk and profitability, while attempting to maximize an entity's wealth and
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Long term funds are provided by ownership equity and long-term credit, often in
the form of bonds. The balance between these forms the company's capital structure. Short-
term funding or working capital is mostly provided by banks extending a line of credit.
increase its value. In investment management – in choosing a portfolio – one has to decide
Accounting profession. However, financial accounting is more concerned with the reporting
of historical financial information, while the financial decision is directed toward the future
of the firm.
The Accounts of the Authority for the financial year 2007-08 have been audited
by the Comptroller and Auditor General of India (C&AG). C&AG, in their draft separate
audit report, has advised revision in the accounts due to some wrong classifications. The
same has been carried out. A copy of revised accounts for the year 2007-08 is placed at
Annexure. X. The revised accounts are under submission to C&AG and final report on the
same is awaited.
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A) WORKING CAPITAL MANAGEMENT
Working capital refers to that part of the firm’s capital which is required for
financing short-term or current assets, such as, cash, marketable securities, debtors,
inventories, bills receivable etc. the assets of this type are relatively temporary in nature.
capital. Working capital can be derived by the deference between current assets and current
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Particular 2009 2008
Current Assets
Cash and Bank Balances 1,24,86,44 57,09,840
0
Advances and Other Assets 44,41,630 34,32,250
Sub-Total (A) 1,69,28,07 91,42,090
0
Current Liabilities 1,55,17,19 81,89,430
0
Provisions 7,09,690 2,67,290
Sub-Total (B) 1,62,26,88 84,56,720
0
= 77,85,980
= 91,42,090 – 84,56,720
= 6, 85,370
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B)- RATIO ANALYSIS:
Ratio analysis isn't just comparing different numbers from the balance sheet,
income statement, and cash flow statement. It's comparing the number against previous years,
other companies, the industry, or even the economy in general. Ratios look at the
relationships between individual values and relate them to how a company has performed in
Ratio analysis is the method or process by which the relationship of items or group
CURRENT RATIO:
Meaning:
This ratio compares the current assets with the current liabilities. It is also known as ‘working
E.g. 2:1
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Sub-Total (A) 1,69,28,07 91,42,090
0
Current Liabilities 1,55,17,19 81,89,430
0
Provisions 7,09,690 2,67,290
Sub-Total (B) 1,62,26,88 84,56,720
0
= 1,69,28,070 / 1,62,26,880
= 1.04
= 91,42,090 / 84,56,720
= 1.08
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INTERPRETATION
The current ratio in the year 2009 has decrease the current ratio as compare
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Less
Interest 96,3730 65,6440
Profit before interest & tax 999,9840 3703070
= 999,9840 / 96,3730
= 10.38%
= 370,3070 / 65,6440
=5.64
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℘ INTERPRETATION:
The current ratio in the year 2009 has decrease the current ratio as compare the year
2008 it mean that company has done less investment in interest coverage ratio or turnover
ratio.
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STRENGTHS:
I. Financial Acumen - Holds a stable and diversified portfolio and has received some
agencies.
strong track record in managing funds - backed by the acclaimed expertise of Old
Mutual plc
IV. Unrelenting Customer Focus - A highly committed sales force, with customer
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WEAKNESSES:
Lack of credibility among the people because Kotak being a private player.
Products:
» The policy doesn’t have the surrender option before third year.
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OPPORTUNITIES:
The whole private sector is opened to be trapped even though the competition is fierce
It’s a volume business that is even if the company has few good corporate the
Products:
» Preserver funds look good due to comfortable liquidity in the economy and
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THREATS
The government players will become aggressive thus growth is going to be tough.
We expect the industry to rationalize in future that is mergers and acquisitions will
happen, which will impact the industry and Kotak life fortunes.
Products:
the plan.
» The sum invested in the funds is subject to market risks and there can be no
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» All benefits payable under the policy are subject to tax laws and other
CONCLUSION
● The important facts which we could conclude from our data regarding the buying
behavior of individuals are that people give maximum importance to the tax benefit that
that though a lot of our sample population was aware about it and had invested in it but
still a lot of them (including Females) wanted to invest in it but were confused regarding
other options like mutual funds. So a lack of public awareness was encountered.
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● Almost all the companies offer similar features and facilities, therefore for impressing
a customers to invest in ULIP of there company is a very difficult task. Credit goes to
ICICI prudential for their aggressive marketing tactics with the help of which they have
been able to gather maximum number of investors both male and female. Aggressive
Marketing is the key to increasing the market share in this area, since the market has a lot
of potential both in terms of untapped market. This is the main reason why ICICI is
● The level of service in terms of delivering whatever is promised, fast response in case
of problems, is the most important benefit that the customers seek from the company in
which they are investing their money as savings as well as they are getting life cover so it
becomes very important for the companies that what they are promising to there
● Most of the customers are not aware about the ULIP and also the Product as such which
companies are providing to them. So it is very important for the companies that they should
convince their customers that they are getting something out of there money that they are
• There are very tough competitions among the private insurance companies on the
• The entry of more Pvt. Players in the Insurance Sector has expanded the product
segment to meet the different level of the requirement of the customers. It has brought
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• Kotak has vast market and very firm grip on its traditional customers and monopoly
IRDA is also playing very comprehensive role by regulating norms mandating to private
players in this sector, that increases the confidence level of the customers to the private
players.
Suggestions or Recommendations
The study has provided with the useful data from the respondents. There has a lot to be
• There is a need for better promotion for the investment products & services. The
bank should advertise its products through television because it will reach to the
masses.
• As the bank provides the Insurance facility to its customers. It should provide this
facility by tie up with the other Insurance organizations as well. The main reason is
that, the entire customers do not want Insurance of only one company. They should
have choice while selecting a suitable Insurance plans. This will definitely add to the
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• Discount charges should be made available because of the severe competition within
the private players as well as the biggest threat posed by LIC and SBI.
• Most of the customers as per our sample are inclined towards ICICI Prudential
because of the strong policy base and easy accessibility. So other competitors really
Findings
• Talking of its the market share of the leading players it was found that
LIC rules when it comes to an age group of 50 plus due to the credibility
and trust it has gained in all past years. Where the other age groups prefer
to explore the leading private players where in our sample KLI and
ICICI prudential make a clean sweep. Other banks like HDFC were found
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• How to handle the pressure of targets
Limitations:
Some of the difficulties and limitations faced by me during my training are as follows:
found in this sector. Most of the people are not aware about the importance and the
necessity of the insurance in their life. They are not aware how useful life insurance
consider insurance just as a Tax saving device. So today also there is always a rush to
buy an Insurance Policy only at the end of the financial year like January, February
and March making the other 9 months dry for this business.
Insurance does not give good returns – Still today people think that
Insurance does not give good returns. They are not aware of the modern Unit Linked
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Insurance Plans which are offered by most of the Private sector players. They are still
under the perception that if they take Insurance they will get only 5-6% returns which
is not true nowadays. Nowadays most of the modern Unit Linked Insurance Plans
gives returns which are many times more than that of bank Fixed deposits, National
sector – People still today are not aware about the earning opportunity that the
Insurance sector gives. After the privatization of the insurance sector many private
giants have entered the insurance sector. These private companies in order to beat the
competition and to increase their Insurance Advisors to increase their reach to the
customers are giving very high commission rates but people are not aware of that.
has became very stiff. Currently there are 14 Life Insurance companies working in
India including the LIC (life insurance Corporation of India). Today each and every
company is trying to increase their Insurance Advisors so that they can increase their
reach in the market. This situation has created a scenario in which to recruit Life
insurance Advisors and to sell life Insurance Policy has became very very difficult.
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• BIBLIOGRAPHY / REFERENCES:-
Web sites:-
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www.kotak.com
www.licindia.com
www.irda.org
www.lifeinsure.com
www.kotakdirect.in
www.financeindiamart.com
www.google.com
www.businesstoday.com
APPENDICES
Appendix-I
NEED ANALYSER
PERSONAL DETAIL
Name: _____________________________________
Age: ______________________________________
Address: __________________________________
__________________________________
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Mobile/Phone No: __________________________
Children: ____________
DETAIL
Saving: Yes No
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If Bank Deposit Why:
________________________________________________________________
_________________________________________________________
_______
Why not:
_______________________________________________________________
________________________________________________________
________
________________________________________________________________
_______________________________________________________
_________
Other Investment:
________________________________________________________________
___________________________________________________________
_____
Rs._________________
Do you like the KOTAK Life advisor to serve you a beneficial plan?
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Yes No
Appendix-II
QUESTIONNAIRE:-
(1) <2
(2) 2-4
(3) 4-5
(4) > 5
(3) Stocks
(4 Real Estate
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Q3. What benefits do you want from your Investments?
(1) Savings
(2) Liquidity
(3) Security
Q5. At this point of time if you were taking a life insurance plan you would like to take which
scheme?
(1) Endowment
(1) LIC
(2) ICICI
(4) BIRLA
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(5) OMKM
(6) HDFC
Q7. At what age have have you taken Life Insurance Policy?
(1) 20 – 30
(2) 31 – 40
(3) 41 – 50
(4) Above 50
(4) Others
(1) Yes
(2) No
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(2) HDFC Standard Life
(3) KLI
(4) Others
(1) Interested
(2) Semi-interested
(3) Not-interested
(2) Relatives
(3) Advertisements
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