SUMMER TRAINING PROJECT REPORT ON

MARKET RESEARCH AND CUSTOMER SATISFACTION

Of KOTAK LIFE INSURANCE COMPANY LIMITED KANPUR. Towards partial fulfillment of Master of Business Administration

VIDYA BHAVAN COLLEGE FOR ENGINEERING TECHNOLOGY, KANPUR

Submitted To:
Mr. SHUBHAM PANDEY (Asst. Prof. ) SESSION (2010-12)

Submitted By:
Esma Parveen Roll No. 1041870013

PREFACE
The report is hard intends to reflect some of the basic covered under the LIFE INSURANCE of KOTAK, EXTRUSIONS a first truly MNC of India. The total aspects have been formulated and presented on the basis of ideas and information gathered by this investigator during a shorter span of project training i.e. an important portion of the MBA curriculum leading to an opportunity for the participant to have a practical exposure of the contents under the topic beyond what has already been studies during the class-room interaction. This report has been written in response to a comprehensive study, conducted on the LIFE INSURANCE of KOTAK LIFE INSURANCE. After a thorough analysis of the various facts stand figures, a set of recommendations has been given at the the report. Accuracy and precision has been given the prime consideration, while compiling the report, are authoritative and authentic. We are confident that anyone who goes through the report will learn how much we have learnt & benefited during this period.

ACKNOWLEDGEMENT

It is a pleasure to record my thanks and gratitude firstly to GOD and my parents and those person of the organization whose generous help and support enabled me to complete this study within the stipulated time period. At the outset, I am grateful to KOTAK LIFE INSURANCE for giving me this opportunity. My special thanks to Mr.

SAURABH MAHANA (Sales Manager, Kotak Life Insurance) officials for their active help and cooperation at each stage of the study.

and host of other

Talented faculty of my institute deserves the praise for their role in shaping this report. Here I would like to acknowledge the help and able guidance of the

Mr.Shubham Pandey
suggestions and insight.

(Asst. Prof.) OF MBA

, DEPT V.B.C.E.T...

for their valued

A report of this nature is a product of ideas and experiences of several persons accumulate over years, though I am unable to mention them all, my debt of gratitude to them is no less. I am greatly indebted to all those individuals who have helped me even up to the slightest level in the completion of this project. However, I take the responsibility of all my shortcomings.

(Esma parveen)

DECLARATION
I hereby declare that summer training report on kotak life insurance Kanpur (up.) is a factual report of my own project work undertaken towards partial fulfillment of the degree of management. The facts and figures presented here is correct and true to best of knowledge & belief

&
I hereby declare that the project titled 'MARKET SERVEY & CUSTOMER SATISFACTION is an original piece of research work carried out by me under the guidance and supervision of Mr. SUBHAM PANDEY. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of Master of

Business Administration of G.B. T. University LUCKNOW (U P)

Place:

Date:

ESMA PARVEEN

TABLE OF CONTENT

Part -1
PREFACEII ACKNOWLEDGEMENT III 1. INTRODUCTION..7-13 2. INDUSTRIAL PROFILE..14-20 3. COMPANY PROFILE21 3.1 OUR KOTAK STORY..24 3.2 A LIFE TIME VALUE OF KOTAK34 3.3 OLD MUTUAL.35 3.4 PRODUCT OF KOTAK..36-45 4. OBJECTIVE OF STUDY..46-48

Part -2
1. RESEARCH METHODOLOGY.50-58 2. DATA INTERPREATION & ANALYSIS..59-72 3. CONCLUSION.73-74 4. SUGGESTIONS/RECOMMENDATIONS..76-80 6. APPENDIX81-85 7. BIBLIOGRAPHY.86-88

P PART-I

INTRODUCTION

INTRODUCTION ABOUT INSURANCE Wherever there is uncertainty there is risk. The risk cannot be averted. The risk is uncertainty of the financial loss. We don t have any command on uncertainties. This makes it essential that we think in favor of a device that becomes instrumental in spreading the loss. It is in this context that we think about insurance. Protection against the possible chances of generating uncertain losses. It eliminates worries and miseries of losses or destruction of property and death. Life insurance is a contract between you and a life insurance company, which provided you a death during the contract term. Buying insurance is extremely useful if you are the principal earning member in the family unfortunate premature demise, your family can remain financially secure because of the life that you have purchased.

PURPOSE
The primary purpose of life insurance is therefore protection of the family in the even insurance is also seen as a tool to plan effectively for your future years. Your retiren children s future needs. Today, the market offers insurance plans that not just cover your same time grow your wealth too. If you have dependants and financial responsibilities toward them, then you certainly need.

Having a family means dependant, which in turn means financial commitments. Finance comes in the form of loans, children s education, medical expenses etc. Imagine what would happen if you were to lose your life suddenly or become disabled being insured in a situation like this is a necessity.

When you insured your life, in effect what you are doing insuring your earning capacity that your dependents will be able to continue living without financial hardships even in case , Most insurance plans available today come with a savings element built into it. These policies not only for a financially independents future, which were have a comfortable retirement. For example. Kotak preferred Retirement plans such as income plan and Kotak Multiplier plan. Most insurance plans available today have a built in saving elements. Kotak preferred Retirement plans meet your dual financial goals of life cover and savings for the future. Collateral security.

Life was not designed to be risk free. The key is not to eliminate risk, but to estimate it Accurately and manage it wisely.

Insurance sector have characteristic that give can boost to the growth of any economy .it is due to the savings done at the individual level and at micro level it generates funds for infrastructure building as the cash flow is constant while the payout is differed, so that the insurance companies are becoming biggest investors in long gestation infrastructure development projects and hence have a great Importance to the developing economy like India. Insurance sector with an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge.

INTRODUCTION OF THE TOPIC

9

The purpose of this training was to have practical experience of working within the organization, in the filed of marketing and to have exposure to the important management practices in field of marketing. While writing this report the language has been keep simple and the entire discussion has been logical and has coherent outlines. The main motto of the project work was Market Research and customer Satisfaction of Kotak Life Insurance , Kanpur. It includes through market Research in various plans of Kotak Mahindra Life Insurance. And in detail consumer (Satisfaction) responses analysis , by surveying number of consumers. The project report is divided into two parts, first part consists market research for finding out best sold plan of Kotak Life Insurance, And second consist survey report of various consumers about there responses about satisfaction towards Kotak Life Insurance Company.

IMPORTANCE OF THE TOPIC The project report is all about market research to find out best sold plan of Kotak Life Insurance, Kanpur. And to mouser the satisfaction level of consumers of Kotak Life Insurance. Market research helps Kotak Life Insurance about the best plan purchased by its consumer satisfaction level helps to know whether the consumers are satisfied by service/Plans of Kotak Life Insurance.

10

THE

EXCLUSIVE INTODUCTION

The objective of the project was to do Market Research and customer Satisfaction for Kotak Life Insurance for that we have to understand the customer needs, Income, constraints, response and emotions. So that they can contribute their time for becoming Life advisors for the company. The objective of this study was to analyze consumer satisfaction of mechanical splicing in Kanpur city with respect to the performance, sales effort and sales service.

As the company was new and it was yet to be marketed to a large number of customers, it was essential to know the feedback of customers in order to formulate effective marketing and sales strategies in future and improve the quality of service to achieve better consumer satisfaction.

The site visits and companying made us possible to measure the satisfaction of consumer by identifying the attributes, which gave consumer-varying degrees of satisfaction.

Questionnaire based on company format some attributes like requirement of customer and sales services offered by company were identified as critical (motivational) factors for providing satisfaction to consumers, while other factors like excisable deposit center,

11

premium collocation was time to time and also intimation regaining before the collocation of premium. But absence of such hygienic factors definitely results in a dissatisfied consumer. These hygienic factors could result in selling but their absence can certainly unseal the product offering. For this a questionnaire was prepared which gave a vague idea about the people who were really interested and wanted to know about various new opportunities in the insurance sector. Go through questionnaire in different area and people in the Kanpur city. The study was undertaken for KANPUR region during two months. The researchers were given first 15 days for collection of data and scanning the data. The questionnaire contains various aspects like there. Address, their present age, profession, number of dependents, Goals and also planning for old age (Retirement) etc. The second part of the study that consists of 40 days contains scanning the questionnaire and taking appointments. After that usually meeting the persons and tell them about the company. Most important part is analyzing the information.

Group Overviews

12

The KOTAK Group is Indias first truly multinational corporation (MNC), whose over 19.40% of revenues flow from its operations across the world. Over 45 units in India and overseas as well (in Thailand, Indonesia, Malaysia, Philippines, Egypt and Canada) and international trading operations spanning several countries including Dubai, Russia, Vietnam, Myanmar and China make it Indias first truly multinational conglomerate. KOTAK Group has following achievements to credit: it is The worlds no.1 in LONE Provider The worlds largest INSURANCE provider INDIA largest integrated Agricultural tools provider in village. A globally competitive, fast growing company The kotak bank stablished in few country Among Indias most energy efficient private sector fertilizer plants. Indias second largest private sector insurance company.

For more information visit :

Groups website:

www.insurance.kotak.co

13

INDUSTRY PROFILE
The industries, businesses and individuals are considerably by the services of insurance organization. A. The oldest form of insurance (12th century) is marine insurance. After wards in 16th century fire insurance is started in Germany.

B. The first registered life office was Hand in Hand Society established in 1696.

C. In India the first life insurance was started in the Bengal Presidency in 1818 knows as oriental life insurance company.

D. Experiencing so many ups and downs the insurance business was found in changed shapes. Particularly after attaining independence and to the more specific after nationalizing in 1956.

E. There was major change in the insurance sector after globalization in 2001. The private player in the insurance industry and ends the dominance of LIC.

F. The different MNC s company of foreign country enters in the insurance industry with the joint venture with Indian companies.

Today total 11 private life insurance companies are working in insurance industry. 14

HISTORY

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 : Indian and foreign insurers and provident 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 Insurances Business (Nationalization) Act,1972 nationalized the general insurance business in India with effect from 1 January 1973. 15

INSURANCE SECTOR REFORMS:

1) Structure
Government stake in the insurance companies to be brought down to 50%.

2) Competition
Private companies with a minimum paid up capital of Rs. 1bn should be allowed to enter the industry. No company should deal in both Life and General Insurance though a single entity. Foreign companies may be allowed to enter the industry in collection with the domestic companies. Postal Life Insurance Should be allowed to operate in the rural market. Only One State Life Insurance Company should be allowed to operate in each state.

3) Regulatory Body
- The Insurance Act should be changed - An Insurance Regulatory body should be set up - Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.

4) Investments
Mandatory Investment of LIC Life Fund in government securities to be reduced from 75% to 50%. 16

5) 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 the insurance; industry should be opened up to competition.

ENTRANCE OF PRIVATE PLAYERS IN INSURANCE SECTORS

India still has low insurance penetration of 1.95 percent, 51st in the world. Despite the fact that India boosts a saving rate of around 25 percent, less than 5 percent is spent on insurance. The insurance landscape in India is undergoing major changes. Close to foreign competition since nationalization in 1956, the life insurance industry had been protected from competitive pressures. Now, with the reopening of the sector, several new players have entered the scene. The acronym for the Insurance Regulatory and Development authority of India, it overseeing the insurance business in India. It protects the interests of the policyholders received and ensures orderly growth of the insurance industry and for matters connected there thereto. Beside Kotak Mahindra Life Insurance there are other 11 private players working in life insurance sector, which are as follows.

Allianz Bajaj Life Insurance Company Ltd.

17

Allianz Bajaj Life Insurance Company Ltd. is a joint venture between Allianz AG (Largest insurer in Europe) and Bajaj Auto Ltd. incorporated on 12th march 2001.

AMP Sanmar Assurance Company Ltd.

AMP Sanmar Assurance Company Ltd. is a joint venture between AMP, largest life insurer in Australia and New Zealand, Sanmar is one of the largest industrial groups in South India dealing in chlorochemicals and shipping and Engineering.

Aviva Life Insurance Company Ltd.

Aviva Life Insurance Company Ltd. is a joint venture between Dabur India and CGU, is a wholly subsidiary of Aviva Plc (UK).

BI Life Insurance Company Ltd.

India s largest bank SBI and Cardiff S.A, a leading insurer in France came together to from SBI Life.

Tata Life Insurance Company Ltd.

Tata Life Insurance Company Ltd. is capitalized at Rs. 185 crore; of which 74% has been brought in by TATA Sons and the American partner bring the balance 26%.

ICICI Prudential Life Insurance Company Ltd.

18

ICICI Prudential equity based stands at Rs. 675 Cr. With ICICI group and Prudential Plc holding 74% and 26% stake respectively.

Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a 74:26 joint venture between Aditya Birla Group and sun life financial services of Canada.

HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. was one of the first company es to be granted license by the IRDA to operate in life insurance sector. It was incorporated on 14th august 2000. HDFC is the majority stakeholder in insurance JV with 81.4% stake and Standard life (largest mutual assurance company in Europe) has a stake of 18.6%.

ING Vysya Life Insurance Company Ltd.

ING Vysya Life Insurance Company Ltd. is expected to be first bank assurance venture in the country. Together they have roped in GMR group, which has wide-ranging interests in field such as power generation infrastructure, manufacturing, software and banking. As per JV agreement Vysya bank would hold 49% stake, ING (Europe, Dutch origin) 26% and GMR group would hold 25% of the stake.

MAX New York Life Insurance Company Ltd.

19

It s a partnership between MAX India ltd and New York life, a Fortune 100 company.

Met Life India Insurance Company Ltd.

It was incorporated in April 2001 as a joint venture between Met Life International Holding, In Jammu & Kashmir bank, and M. Pallonji and company private Ltd.

20

COMPANY PROFILE

21

THE

MAHINDRA GROUP

Kotak Mahindra is one of India s leading financial institutions, offering complete financial solutions that encompass every sphere of life. Form commercial banking of 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. 1,800 core and employs over 4,400 employees in its various business. With a presence in 82 cities I India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5,00,000. Kotak Mahindra has international partnerships with Goldman Sachs (one of the world s largest investment banks and brokerage firms) and Old Mutual (a large insurance, banking and asset management conglomerate).

Mr. Uday Kotak

(Executive Vice Chairman & Managing Director)

Mr. Shivaji Dam Mr. C. Jayaram Mr. Dipak Gupta

22

OUR MANAGEMENT FOR LIFE INSURANCE

Mr. Gaurang Shah (Managing Director)

Mr. G Murlidhar (Chief Financial Officer)

Mr. Nandip Vaidya (Vice President - Sales)

Mr. Arun Patil (Vice President - Sales & Management Development)

Mr. Eksteen De Waal (Head Sales Training)

23

OUR STORY
The Kotak Mahindra group was born in 185 as Kotak Capital Management Finance Limited. Uday Kotak, Sidne A.A. Pinto and Kotak & Company promoted this company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and that s when the company changed its name to Kotak Mahindra Finance Limited.

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discouting.

1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market.

1990 The Auto Finance division is started.

1992 The Investment Banking Division is started. Takes over FICOM, one of India s financial retail marketing networks.

1992 Enters the Funds Syndication sector.

1995 Brokerage and distribution business incorporated into a separate company Kotak Securities. Investment banking division incorporated into a separate company - Kotak Mahindra Capital Company.

1996 The Auto Finance Business is hived off into a separate company Kotak Mahindra 24

Primus Limited. Kotak Mahindra takes significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group s entry into information distribution.

1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company.

2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance Business. Kotak Securities launches kotakstreet.com it s on-line broking site. Formal commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund.

2001 Matrix sold to Friday Corporation Launches Insurance Services.

2003 Kotak Mahindra Finance Limited converts to bank.

The study of potential of insurance business is concerned with market study i.e research and fieldwork. This study is going to help the Kotak Life Insurance to find out market potential with other companies. The study will help the company to assess their performance and improve it where it is lacking.

Research work is a basic function carried out by each organization. The study of market potential of insurance is very helpful to find out who are the market leaders in private companies as well as overall analysis. 25

Availability of time was also taken into account while decid8ing the particular method to meet the objectives. The entire study programmed was for the period of two months. The subject of the study was selected by looking the necessity and importance to find the market potential and give suggestions related to the topic.

Auditors Report To the Members of Kotak Mahindra Old Mutual Life Insurance Limited

1. We have audited the attached Balance Sheet of Kotak Mahindra Old Mutual Life Insurance Limited ('the Company') as at March 31, 2010, the related Revenue Account, the Profit and Loss Account and the Receipts and Payments Account for the year ended on that date annexed thereto, which we have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance as to whether the 26

financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. The Balance Sheet, the Revenue Account, the Profit and Loss Account and the Receipts and Payments Account have been drawn up in accordance with the Insurance Act, 1938 (Act 4 of 1938), Insurance Regulatory and Development Act, 1999, Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors' Report of Insurance Companies) Regulations 2002 ('the Regulations') read with Section 211 of the Companies Act, 1956.

4. As required by the Regulations, we set out in the Annexure, a statement certifying the matters specified in paragraph 4 of Schedule C to the Regulations.

5. Further to our comments in the Annexure referred to above, we report that:

27

(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of the audit and have found them to be satisfactory; (b) In our opinion and to the best of our information and according to the explanations given to us, proper books of account as required by law have been maintained by the Company, so far as appears from our examination of those books;

(c) As the Company's financial accounting system is centralised, no returns for the purposes of our audit are prepared at the branches of the Company;

(d) The Balance Sheet, the Revenue Account, the Profit and Loss Account and the Receipts and Payments Account referred to in this report arein agreement with the books of account;

(e) The actuarial valuation of policyholders' liabilities is the responsibility of the Company's Appointed Actuary ('the Appointed Actuary'). The actuarial valuation of these liabilities as at March 31, 2010 has been duly certified by the Appointed Actuary and in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory Development Authority ('IRDA') and the Institute of Actuaries of India in concurrence with IRDA. 28

We have relied upon Appointed Actuary's certificate in this regard for forming our opinion on the financial statements of the Company;

(f) On the basis of written representations received from the Directors of the Company, as on March 31, 2010 and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2010 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

6. In our opinion and to the best of our information and according to the explanations given to us, we further report that:

(a) The investments have been valued in accordance with the provisions of the Insurance Act, 1938, the Regulations and/or orders/directions issued by IRDA in this behalf; (b) The accounting policies selected by the Company are appropriate and are in compliance with the applicable accounting standards and with the accounting principles as prescribed in the Regulations and orders/directions issued by IRDA in this behalf;

(c) The Balance Sheet, the Revenue Account, the Profit and Loss Account and the Receipts and Payments Account referred to in this report are in compliance with the applicable accounting standards referred to under sub-section(3C) of Section 211 of the Companies Act, 1956; and 29

(d) The Balance Sheet, the Revenue Account, the Profit and Loss Account and the Receipts and Payments Account together with the notes thereon and attached thereto are prepared in accordance with the requirements of the Regulations, the Insurance Act, 1938, the Insurance Regulatory and Development Authority Act, 1999 and the Companies Act, 1956, to the extent applicable and in the manner so required and give a true and fair view in conformity with applicable accounting principles generally accepted in India as applicable to insurance companies:

(i). In the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2010

(ii). In the case of Revenue Account, of the surplus for the year ended on that date;

(iii). In the case of Profit and Loss account, of the profit for the year ended on that date; and

(iv). In the case of the Receipts and Payments Account, of the receipts and payments for the year ended on that date.

Kotak Mahindra Old Mutual Life Insurance Limited 11 30

7. Further, on the basis of our examination of books and records of the Company and according to the information and explanations given to us, we certify to the best of our knowledge and belief that:

(a) We have reviewed the Management Report attached to the financial statements for the year ended March 31, 2010, and there is no apparent mistake or material inconsistencies with the financial statements; and

(b) Based on information and explanations received during the normal course of our audit, management's representations made to us and the compliance certificate submitted to the Board by the officers of the Company charged with compliance and the same being noted by the Board, nothing has come to our attention which causes us to believe that the Company has not complied with the terms and conditions of registration as per sub-section 4 of section 3 of the Insurance Act, 1938.

For S. R. Batliboi & Co. For M. P. Chitale & Co.

Firm Registration No.: 301003E Firm Registration No.: 101851W Chartered Accountants Chartered Accountants 31

per Shrawan Jalan Murtuza Vajihi

Partner Membership No. 102102 Membership No. 112555 Place : Mumbai Place : Mumbai Date : April 27, 2010 Date : April 27, 2010

12 Kotak Mahindra Old Mutual Life Insurance Limited

Annexure to the Auditors Report (Referred to in the Auditors' Report to the members of Kotak Mahindra Old Mutual Life Insurance Limited ('the Company') on the accounts for the year ended March 31, 2010)

Auditors' Certificate

To the Members of Kotak Mahindra Old Mutual Life Insurance Limited

Based on the information and explanations given to us and to the best of our knowledge and belief, we certify that:

1. We have verified the cash balances, to the extent considered necessary, and securities relating to the Company's investments as at 32

March 31 2010, by actual inspection or on the basis of certificates/confirmations received from the custodian and/or Depository Participant appointed by the Company, as the case may be. As at March 31, 2010, the Company does not have reversions and life interests;

2. The Company is not a trustee of any trust; and

3. No part of the assets of the Policyholders' Funds has been directly or indirectly applied in contravention to the provisions of the Insurance Act, 1938, relating to the application and investments of the Policyholders' Funds. This certificate is issued to comply with Schedule C of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor's Report of Insurance Companies) Regulations 2002, ('the Accounting Regulations') read with Regulation 3 of the Accounting Regulations and may not be suitable for any other purpose. For S. R. Batliboi & Co. For M. P. Chitale & Co.

Firm Registration No.: 301003E Firm Registration No.: 101851W Chartered Accountants Chartered Accountants

per Shrawan Jalan Murtuza Vajihi

Partner Membership No. 102102 Membership No. 112555 33

Place : Mumbai Place : Mumbai

KOTAK MAHINDRA A Lifetime of Value

34

Old Mutual
35

Old Mutual was established more than 150 years ago and has developed into an International services group w focused on asset gathering and asset management. The old mutual Group offers a diverse range of financial services geographics: South Africa, the United States and United Kingdom. The company is listed on the London Stock Exchange capitalization of approximately $6 billon and is member of the elite FSTS 100 index. In the 2003 rankings of the w corporations Fortune magazine, Old mutual climbed 87 places to position number 366 and was also listed 14th company in the world. Old Mutual is the largest financial services business in South Africa, through its life insurance, asset management, and insurance operations. The company serves 4 million life insurance policyholders and employs over 13 000 South Africa operations. In the USA Old Mutual is one of the top ten fixed annuity business offering an array of specialist asset management. The company s US Life business recorded sales of $4 billion at the end of 2002. Operations in the United Kingdom are focused on wealth management, through Gerrard as one the leading private business in the UK. The Old Mutual Group has the ability to cater for variety of consumer segments and offers a comprehensive and in products for all income groups.

36

PRODUCT

37

PRODUCT

INDIVIDUAL GROUP

Group
RURAL

38

INDIVIDUAL TERM PLAN PREFERRED TERM PLAN

Group MONEY BACK PLAN

CHILD ADVANTAGE ENDOWMENT PLAN CAPITAL MULTIPLIER PLAN RETIREMENT INCOME PLAN

FLEXI PLAN
EASY GROWTH PLAN RIDERS

EXCLUSIONS UNDER

Riders
39

GROUP
TERM PLAN CREDIT TERM GROUP PLAN

Group COMPLETE COVER GROUP PLAN

GRATUITY GROUP PLAN SUPERANNUATIO N Grouplan
40

RURAL

GRAMIN BIMA YOJNA

41

PRODUCT
a) Advantages:
1 Choice of 5 professionally managed funds included Gilt Fund, Floating Rate Fund, Bond Fund, Balanced Fund, Growth Fund.

Flexi plan:-

2 Add lump sum injections as and when suitable

3 Premium holiday facility

4 Riders options for enhanced protection

5 Loan facilities in case of emergencies

6 Simplified documentation and procedures

b)

Retirement Income Plan

42

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 by giving you the choice to remain independent even after retirement.

Advantages:
1 In this plan minimum age of 18 years of old and maximum age is 60 years.

2 You may buy an annuity either from Kotak Life Insurance.

3 You can make lump sum injections into your policy at any time

before retirement.

4 For a with cover plan you have the facility of Automatic cover Maintenance, which ensures that the cover remains in force even when you miss the premium payments. This facility is available after the first 3 years of the term.

5 You may exercise the option of paying premium from the Supplementary Accumulation Account, created from will be created from lump sum injections, if the need arises.

c)

Endowment PlanAn Endowment policy is a

combination of savings along with risk cover. These policies designed to accumulate wealth and at the same time cover your life. In simple words, issued for specific time periods during which you

43

pay a regular premium. If you die during policy, your beneficiaries will receive the sum assured along with the accumulated bonus a outlive the policy tenure you will receive the sum assured along with accumulated bonus.

Advantages:

1 In this plan minimum age of 18 years of old and maximum age is 65 years.

2 You can take a loan against your policy has been in force for at least three years.

3 You have the option of paying premiums quarterly, half yearly or yearly.

4 You have the benefit of a 15-day free look period.

d)

Capital Multiplier Plan

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 and irregular withdrawals.

This is an endowment plan, which is very flexible and has a lot of in-built benefits. 44

Advantages: 1 In this plan minimum age of 18 years of old and maximum age is 60 years.

2 At the start of your withdrawals period, you can draw the full proceeds or you can draw up to 50% of your basic sum assured or accumulation account, whichever is higher.

3 In addition to the regular premiums, you can make lum sum injection into your plan during the premium paying period. A Supplementary Accumulation Account will be created.

4 You have the facility of Automatic Cover Maintenance, which ensures that the policy remains in force even when you miss the premium payments. This facility is available after the first 3 years of the term.

e)

Child Advantage Plan

The Kotak Child Advantage Plan is an investment plan designed to meet your child s future needs. It is a plan that gives your child the azaadi to realise his/her dreams. This is an endowment plan where the life insured is the child. This is a participating plan.

Advantages:

45

1 In this plan minimum age of 0 years of old and maximum age is 17 years.

2 You may take a loan against this plan, after the policy has been in force for at least three years.

3 You have the option of paying premiums quarterly, half yearly or yearly.

4 You have the benefit of a 15-day free look period.

46

OBJECTIVE AND SCOPE OF STUDIES

1)To determine the present position and satisfaction of customer in Kotak Mahindra Life Insurance. 47

The main objective of the project was to analyze consumer satisfaction of Kotak Mahindra Life Insurance with other services in KANPUR. And also present position of the company.

2) To determine the market share of the Kotak life insurance.

3) Responses of customer Responses from them were collected through survey and for the questionnaire were prepared for both of them.

4) Benefits derived by assessing consumer satisfaction are:

- Feedback to organization regarding product.

- Understanding customer s requirements.

- Providing superior service to customer.

- Strengthen the relationship with customers.

- Formulating sales strategies.

5) Identify pros and cons of the Kotak life insurance:

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This was a fundamental objective of the whole research. Company wants to identify that where does the brand lack. In other words, what are the brands so that it can rectify them in order to establish the brand in the market.

The objective of the research was not only to find out the problem but also the identification of solutions or suggestions of the problems.

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P PART-II

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RESEARCH METHODOLOGY

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INTRODUCTION
Research is an art of scientific investigation through search for new facts in any branch of knowledge. It is a moment from known to unknown. Research always starts with a question or a problem. Its purpose is to find answers to questions through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. As marketing does not address itself to basic or fundamental question, it does not qualify as basic research. On the contrary, it tackles problems, which seem to have immediate commercial potential. In view of the major consideration, marketing research should be regarded as applied research. We may also say that marketing research is of both types problem solving and problem oriented. Marketing research is as systematic and objectives study of the problems pertaining to the marketing of the goods and services. It may be emphasized that it is not restricted to any particular area of marketing, but is applied to all the phases and aspects.

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METHOD OF DATA COLLECTION

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1) DATA TO BE COLLECTED.
Data includes facts and figures, which are required to be collected to achiever the objectives of the project. In order to determine the present position and satisfaction of customer of kotak Mahindra Life Insurance.

a) Primary Data
The data that is being collected for the first time or to particularly fulfill the objectives of the project is known as primary data. These types of data were,

- The market share of Kotak Mahindra Life Insurance.

- The market share of other brands available in the market.

- Responses of consumer.

- Identifying pros and cons of the brand.

The above primary data were collected through responses of consumer was conducted through questionnaires prepared for them.

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b) Secondary Data
Secondary data are that type of data, which are already assembled and need

not to collected from outside. These types of data were i) Company Profile

ii) Product Profile

iii) Competitors Profile

The aforesaid data were collected through Internet and company s financial report.

2) Data Collection Method

Data collection phase of the marketing research generally was the most time consuming period. In case of survey few problems arise likewise some respondents may not give all the detail information and might not be available and must be contacted or replaced. Others refused to co-operate and finally some respondents will be biased or dishonest to share information. For given project, the primary data, which needed to collect for the first time, were much significant. This type of information gathered through Survey technique, which is the most popular and effective technique for correct data collection. The survey was completed with the use of questionnaires .

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3) Sampling
Sample is the small group taken under consideration from the total group. This small group represents the total group. In the project the market research, which was ask to be studied was KANPUR market but as it was possible to approach all the respondent s customer of the city, hence a sample was selected which represents the whole city. The areas selected for the sample are present further in the appendix. Sample size of customer list was taken from Kotak Mahindra Life Insurance customer data basic.

4) Data Evaluation
The data so collected were not simply accepted because it contained unnecessary information and over or under emphasized facts. Therefore only relevant data were included in the report, which helped in achieving the objectives of the project.

5) Sampling Area
The first half of my project involved in Kotak is to carry the fieldwork along with campaigning in different localities in Kanpur region. Data collected from fieldwork were submitted to the company for future requirements and also to get back to the customers. The study undertaken for two months. As I have to target specifically to retailers and whole sellers who form the majority portion of the total market. 56

LOCATION OF STUDIES
We were given more than one month for the collection of data and scanning of data. This report shows detail work on following areas

- MESTON ROAD - CIVIL LINE - TILAK NAGAR - MALL ROAD - PANKI AREA - MOTI JHEEL (Nagar Nigam)

For this purpose Feedback form was prepared which gave a broader picture of the people about their existence investment segments. The form shows details regarding current savings and planning for their future events. Through this form we got to know what people think about private insurance sector and get the idea about different flaws in the insurance sector because it is seen that during interview few people had a idea about private players in the insurance sector and their developments. The questionnaire contains various aspects like profession, education, current savings, number of dependants, address etc. Second part of the study contains scanning the form/questionnaire making proper evaluation of given information and going back to them showing how they need to plan their future and the direction to achieve their desired goals. Though, many respondents did not give all the details regarding current savings. For assessing the customer response following market research process followed 57

6) SOURCES OF DATA

The Ist. step was to develop the most efficient plan for gathering the needed information.

i) Data Sources: Both primary & secondary data are taken into consideration. Primary data are data gathered from field IN KANPUR for specific research project.

ii) Research Approach: I have mainly collected the primary data through survey & few cases by observations.

iii) Research Instrument: Questionnaire is used to collect most of the primary data.

iv) Sample Plan: after deciding on the research approach the instruments I decided sampling plan this cause for three decisions.

A. SAMPLING UNIT: project was concentrated on retailers, whole sellers, real estate agents, service group & others for the sampling unit

b.Sampling Size: project consists of 50 respondents from different areas & from different professions. 58

C.Contact Method: once a sampling plan has been determined, marketing researcher need to decide how the subject should be contacted: mails,telephone, personal visit or online interview. In my project research it was mostly personal interview and in some cases telephonic interviews was held.

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DATA INTERPRETATION AND ANALYSIS

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PERSONAL DETAIL Classes (Age) 18-24 24-35 35-45 45-55 55-65 No of Respondents 4 19 16 8 0 3

No. Of Respondant 20 18 16 14 12 10 8 6 4 2 0 18-24 24-35 35-45 45-55 55-65

No. Of Respondant

ANALYSIS Above diagram consist five classes of different age groups. Here customer 19 customer biloges to 25-35 age groups, 16 customers fall in the age group 35-45 years. Other 8 customer comes are in the class 45-55 years the age group of 18-24 consists four customer reaming customer is in age group 55-65 years. Here majority of customer belong to the group 25-35 years.

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Do you think is it essential to have Life Insurance? YES NO

No. of Respondents % of Respondents

Yes 45 90

No 5 10

Total 50 100

No. of Respondents

YES NO

ANALYSIS To this question 45 consumers reported YES and 5 consumers reported NO .

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Which are the companies you invested your money for Life Insurance? Companies Kotak Mahindra Life Insurance LIC Bajaj Allianz Tata AIG Max New York Life Insurance HDFC Life Insurance ICICI Prudential Life Insurance SBI No. of Respondents 50 30 10 5 10 25 5 % of Respondents 37.04 22.22 7.41 3.70 7.41 18.52 3.70

No. of Respondents Kotak Mahindra Life Insurance LIC Bajaj Allianz Tata AIG Max New York Life Insurance HDFC Life Insurance ICICI Prudential Life Insurance SBI

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ANALYSIS From the above figure we come to know that customer are also investing money in other life insurance companies. The major player in insurance is LIC holding 22.22% of total sample. The second major player ICICI is holding 18.52%. HDFC and AIG are having equal share of 7.41% & the Max New York & SBI are having 3.70%.

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Why did you choose Kotak Life Insurance? No of Respondents 18 15 10 2 5 50 % Of Respondents 36 30 20 24 10 100

ROI Peer Pressure Tax Benefit Security /safety Low Premium TOTAL

No. of Respondents

ROI Peer Pressure Tax Benefit Security /safety Low Premium

ANALYSIS The above diagram shows 36% of respondents choose because of good returns, 30% because of peer pressure and remaining 24% opt. Because of tax benefit, safety and 100 premium respectively.
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Which of the following planed you is insured?

Kotak Flexi plan Kotak Retirement Plan Kotak Endowment Plan Kotak Capital Multiplier Plan Child Advantage Plan

No o Respondents 25 19 3 6 10

% Of Respondents 40 30 5 10 15

No. of Respondents

Kotak Flexi plan Kotak retirement Plan Kotak Endowment Plan Kotak Capital Multiplier Plan Child Advantage Plan

Note. Some of customer are having more than one plan total survey customers are 50.
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ANALYSIS From the total 63 respondents maximum i.e. 40% customers have opted for Flexi Plan, whereas 30% have gore for Retirement plans and remaining 30% have customer are having endowment, multiplier and child advantage respectively.

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What kind of services you expect from insurance provides

Easy access ability to Deposit Center Time to time premium collection Provision in case of Dues Bonus & other schemes TOTAL

No of Respondents 20 12 8 24 64

% Of Respondents 31 19 13 37 100

No. of Respondents

Easy access ability to Deposit Center Time to time premium collection Provision in case of Dues Bonus & other schemes

Note. Some of customer are expecting more than single service.

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ANALYSIS Out of total 50 respondents 37% like to have bonus and other service as a prime concern, 13% like to have provision in case of dues and remaining 31% & 12% respondents say. They need time-to-time premium collection and easy accessibility to deposit center as a concern before choosing insurance provider.

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How will you rate the services given by Kotak Mahindra Life Insurance? No of Respondents 16 28 6 50 % Of Respondents 32 56 12 100

Poor Average Good Excellent TOTAL

No. of Respondents

Poor Average Good Excellent

ANALYSIS Out of 50 respondents 57% have ratted Kotak Mahindra Life Insurance services as good and 32% have ratted as average. And remaining 12% have ratted as Excellent.

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What difference you find between Kotak & your previous Insurance provider. No of Respondents 16 12 28 22 50 % Of Respondents 21 15 36 28 100

Good Returns Effective Service/liquidity Tax Planning Security/ Safety Benefit TOTAL

No. of Respondents

Good Returns Effective Service Tax Planning Security/ Safety Benefit

Note. Some of customers are having more than one plan more Benefit are expected in one plan. Total surveys of customers are 50.

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Do have any suggestion for Kotak Mahindra Life Insurance? YES NO YES 39 78 NO 11 22 TOTAL 50 100

No of Respondents % Of Respondents

No. of Respondents

YES NO

ANALYSIS To this question 39 consumers reported YES and 11 consumers reported NO .

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In future, will you purchase policies from Kotak Mahindra Life Insurance? YES NO

No of Respondents % Of Respondents

YES 32 64

NO 18 36

TOTAL 50 100

No. of Respondents

YES NO

ANALYSIS To this question 32 consumers reported YES and 18 consumers reported NO .

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CONCLUSION

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After conducting market research for Kotak Mahindra Life Insurance Company we came to know different needs of consumers, their valuable suggestions, responses to the different questions. With this information we can conclude that there is good market awareness about Kotak Mahindra Life Insurance Company in the market.

Customer satisfaction level of most respondents is higher for Kotak Mahindra Life Insurance Company, which is provided by survey. Higher satisfaction level of Kotak Mahindra life insurance company was monthly due to Kotak provides good tax benefit for the consumers also ROI, security etc.

Kotak Mahindra Flex s plan is the best-sold plan in market by Kotak Mahindra Life Insurance. This conveys that the customer s are switching to retirement plan.

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OBSERVATIONS
Majority of the customer s belonged to age group of 25-35 years that is 19 consumers. 45 consumers think Life Insurance is essential for them. 135 respondents are investing in life insurance companies like Kotak Life Insurance, LIC, Tata Allianz, Max New York, HDFC, ICICI and SBI. 36 percentages of the total respondents invest in Kotak Mahindra Life Insurance for getting high ROI. Most of respondent s preferred kotak Flexi Plan. 37.5 percentage respondents expect bonus and other schemes from Kotak Mahindra Life Insurance. 56 percentage respondents satisfied with services given by Kotak Mahindra Life Insurance. As per 28% of despondence Kotak Mahindra Life Insurance providers good tax benefits to the Investors. 64% of respondents are willing to purchased policies from Kotak Mahindra Life Insurance in future.
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SUGGESTION AND RECOMMENDATIONS

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RECOMMENDATIONS
1) There is scope to sale insurance policy by concentrating on age group 18-24 years here potential of customers are there.(Example. Software professional, BPO employees, and professionals) Flexi plan can be sold by concentrating on age group 35-45 years. (Example. Government employees, executives and businessman)

2) As major respondents think to have life insurance policy is very essential there is lot of scope for insurance company.

3) Kotak Mahindra Life Insurance should try to build trust among the public by making people aware of their investment is safe, high return on investment, Tax Benefits.

4) As more respondents are investing in Kotak Mahindra Life Insurance for getting high return on investment the company should try to provide attractive returns on investments in future.

attractive bonus on policies to attractive more potential customers.

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5) Kotak Mahindra Life Insurance should introduce attractive policies & also

6) Approx 36% of respondents differ with there previous insurance provider, they field that Kotak Mahindra Life Insurance providing good tax benefit for there investment so Kotak Mahindra Life Insurance if possible try to provided more tax benefit customer.

7) 64% respondents are willing to purchases Kotak Mahindra Life Insurance policies in future this benefit Kotak Mahindra Life Insurance as mort potential customer in future.

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LIMITATIONS

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Limitations:

- One of the major limitations of this study was lack of sufficient time as the subject was required lot of time.

- The time limit permitted to cover the major areas of Kanpur but not all the regions of the city.

- The study limits itself only to Kotak Mahindra Life Insurance.

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APPENDIX

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QUESTIONNAIRE

1. Personal detail

Name: ----------------

Age 18-24--------- 25-35---------- 35-45-----------

45-55----------- 55 and above------------------

Phone No. -------------------------

Email .-----------------------------------------------

Office Address: ------------------------------------------------------------------

- Residential Address: ---------------------------------------------------

----------------------------

2. Do you think is it essential to have Life Insurance? YES--------------NO-------------------83

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3. Which are the companies you invested your money for Life Insurance? a) Kotak Mahindra Life Insurance b) LIC c) Bajaj Allianz d) Tata AIG e) Max New York Life Insurance f) HDFC Life Insurance g) ICICI Prudential Life Insurance h) SBI

4. Why did you choose Kotak Life Insurance? a) ROI b) Peer Pressure c) Tax Benefit d) Security /safety e) Low Premium

5. Do you think is it essential to have Life Insurance? YES -------------------- NO -------------6. Which are the companies you invested your money for Life Insurance? a) Kotak Mahindra Life Insurance b) LIC
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c) Bajaj Allianz d) Tata AIG e) Max New York Life Insurance f) HDFC Life Insurance g) ICICI Prudential Life Insurance h) SBI

4. Why did you choose Kotak Life Insurance? a) ROI b) Peer Pressure c) Tax Benefit d) Security /safety e) Low Premium

5. Which of the following planed you is insured? a) Kotak Flexi plan b) Kotak retirement Plan c) Kotak Endowment Plan d) Kotak Capital Multiplier Plan e) Kotak Child Advantage Plan
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6. What kind of services you expect from insurance provides

a) Easy access ability to Deposit Center b) Time to time premium collection c) Provision in case of Dues (Policy Lapse) d) Bonus & other schemes

7. How will you rate the services given by Kotak Mahindra Life Insurance? a) Poor b) Average c) Good d) Excellent

8. What difference you find between Kotak & your previous Insurance provider. a) Good Returns (HIGHEST) b) Effective Service/Liquidity c) Tax Planning d) Security/ Safety Benefit & Protection on your Capital

9. Do have any suggestion for Kotak Mahindra Life Insurance YES--------------------------- NO------------------------Page88 86

10. In future, will you purchase policies from Kotak Mahindra Life Insurance? YES---------------- NO-----------------------

BIBLIOGRAPHY

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REFERENCE
Bibliography
Kotler, Philip; Keller, Kevin Lane; Koshy, Abraham; & Jha, Mithileshwar. (2009). Marketing Management.: Pearson Indian Edition 13th Edition; Chapter 1: Defining Marketing for the 21st Century, pp. 22-25; & Chapter 8: Identifying Market Segments and Targets, pp. 201-220 Malhotra, Naresh K.; & Dash, Strabhushan. (2009). Market Research An Applied Orientation: Pearson Indian Edition 15th Edition; Chapter 2: Defining the Marketing research Problem and Developing an Approach, pp. 38-53; Chapter 3: Research Design, pp. 79-86; Chapter 10: Questionnaire and Form Design, pp. 300-301; Chapter 13: Fieldwork, pp. 414-416, Chapter 14: Data Preparation, 428-431; & Chapter 22: Report Preparation and Presentation, pp. 698-712. Black, Ken. (2009). Business Statistics: Wiley India Edition 4th Edition; Chapter 3: Descriptive Statistics, pp. 48-71; & Chapter 7: Sampling and sampling Distributions, pp. 223-231. George, Darren; & Mallery, Paul. (2009). SPSS for Windows Step by Step: Pearson Low Price Edition 8th Edition; Chapter 3: creating and editing a data File, pp. 32-39; Chapter 4: Managing Data, pp. 47-61; Chapter 5: Graphs, pp. 74-86; & Chapter 6: Frequencies, pp. 91-96. Mishra, Anil. (2008). Summer Internship Simplified: Biztantra 1st Edition

MAGAZINE

-Business & Economy Magazine

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COMPUTER WEBSITE

http://www.licindia.com/storagconduit.com/MarketPlace/1e/0c/1Aec55dac8dca-406b-9697-5d68893c1c0c//63a0f902-207e-4f97-b38d-e6a54c1e5aca.html

http://www.IRDA.comclkads.com/adServe/static/conintsoftctx.html? tid=CT3080215.html

http://www.hdfcinsurance.com/insurancecaca676/?kuambbs.?? reforms=43ghyii.html

http://www.businessindiaonline.com/c?????? current==ehptikajhdsssswwa???.html.//ff.hdfcins.html

www.maxnewyorklife.com/insurance321uuuu????hghgh//profilqq.html

http://www.brandonline.com/estel??gift.irda.b3367insurance???yy4r.html

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