Mukesh singh kotak life summer internship report a critical study on using digital platformby agents of insurance companies in kanpur

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SUMMER INTERNSHIP REPORT
On
“A CRITICAL STUDY ON USING DIGITAL PLATFORMBY
AGENTS OF INSURANCE COMPANIES IN KANPUR”
SUBMITTED TO:
STEP- HBTI Kanpur
For the partial fulfillment of the Requirement of
Master of Business Administration
(MBA: - 2018-20)
UNDER THE SUPERVISION OF:
Mrs. Reetu Singh
(STEP- HBTI Kanpur)
SUBMITTED BY:
MUKESH SINGH
MBA IInd
Year
SCIENCE AND TECHNOLOGY ENTREPRENEURS'
PARK
HARCOURT BUTLER TECHNOLOGICAL
INSTITUTE,
NAWABGANJ Kanpur- 208002

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TO WHOMSOEVER IT MAY CONCERN
This is to certify that MUKESH SINGH is bonafide students of Masters in Business Administration,
(2018-2020) in Science and Technology Entrepreneurs Park -Harcourt Butler Technological Institute,
Kanpur with dual specialization in MARKETING & FINANCE affiliated to Dr. A.P.J. Abdul Kalam
Technical University has successfully completed the SUMMER INTERNSHIP PROJECT WORK
entitled as “A CRITICAL STUDY ON USING DIGITAL PLATFORM BY AGENTS OF
INSURANCE COMPANIES IN KANPUR”.
This study is done under the guidance of the undersigned for the partial fulfillment of the requirement of
Master of Business Administration.
I hereby certify his work excellent/good/satisfactory to the best of my knowledge. I wish all the best
future ahead.
Mentor: Mrs. Reetu Singh Academic Incharge: Dr. Satish Chandra Ojha
(Assistant Professor) (Assistant Professor)

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ACKNOWLEDGEMENT
First of all, I thank "Almighty God" for giving me strength and ability to complete the
study successfully and make this report on time.
I am especially grateful to Mrs. Reetu Singh for her valuable guidance given throughout
this project.
I would like to express my special thanks to my parents, friends and all other well- wishers
who have helped me a lot in the preparation of this report.
Thanking You
Mukesh Singh

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DECLARATION CERTIFICATE BY
STUDENT
I Mukesh Singh, hereby declare that the summer internship project work titled “A Critical
Study on using digital platform by agents of insurance companies in Kanpur”, is
original to the best of my knowledge and has not been published elsewhere. This is for the
purpose of partial fulfillment of STEP - HBTI requirements for the award of the title of
MASTER OF BUSINESS ADMINISTRATION, only.
PLACE: KANPUR SIGNATURE OF STUDENT
DATE : 10- SEPTEMBER-2019 _______________________

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PREFACE
A professional course in (Master of Business Administration) is incomplete unless
the theoretical knowledge acquired in the classroom is backed up by practical
exposure, as theories alone do not give the perfection to any discipline. The gap
between theory & practiced bridged by the research report, which has been an
integral part of the syllabus.
I was assigned a project “A Critical Study on using digital platform by agents
of insurance companies in Kanpur” this report is the result of the work done
during the training period.
I have tried my level best to be as a systematic as possible and to avoid any sort of
biases.

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TABLE OF CONTENTS
1. Summary 8
2. Objectives 10
3. Introduction 12
i. Introduction of study 19
ii. Industry Profile 20
iii. Structure of Mutual Fund 26
iv. Classification of Insurance 42
4. Company Profile 51
i. Milestones 55
ii. Vision and Mission 56
5. Discussion of Training 63
6. Research Methodology 67
i. Research Design 68
ii. Data Sources 72
7. Data Analysis & Interpretation 75
8. Findings 87
9. Summary and Conclusion 89
10. Recommendations 92
11. Annexure 94
12. Bibliography 99

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EXECUTIVE SUMMARY
Insurances pool money from different investors and invest in different investment sources
like stocks, shares, bonds etc. A professional fund manager manages these and returns are
paid in form of dividends. Some schemes assured fixed returns that are less in risk and
some offer dividends based on the market fluctuations and prices. Insurances have to be
subscribed in units and the purchase or sale is dependent on NAV (Net Asset Value), taking
into consideration the exit and entry load factors into account.
This project undertaken deals with customer perception with regard to Insurances that is
the schemes they prefer, the plans they are opting, the reasons behind such selections and
also this project dealt with different investment options, which people prefer along with
and apart from Insurances. Like postal saving schemes, recurring deposits, bonds, and
shares. The findings from this project is that most of the people are hesitant in going for
new age investments like Insurances and prefer to avert risks by investing in less riskier
investment options like recurring deposits and so. Also people going for investment in
Insurances are not going for high-risk portfolios and schemes but want to go for medium
risk elements. And another finding is that most of the workingwomen does not prefer this
type of investments.

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OBJECTIVES
Objectives -:
1. To evaluate the agent perception and expectation towards the digitalization of insurance.
2. To identify the adoption and agent engagement of digital platforms.
3. To evaluate the awareness and satisfaction towards KOTAK MAHINDRA INSURANCE.
This study will help to evaluate the present position of digital engagement of users in
Insurance company services. The study eventually helps to identify the vital reason why agents
moving towards digital platforms, in which way consumers will satisfied.

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CHAPTER 1
INTRODUCTION

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Insurance: In the digital world
The insurance industry has undergone a series of transformations in the year 2017.
Be it the implementation of GST, listing of insurance companies, rapid use of
digital advancements or the regulatory changes, it is making the industry more
customer-centric, lucrative and transparent.
Increasing customer awareness is leading to change in customer behavior which in
turn is challenging the conventional business models. The customer is more aware
of his needs, he wants to understand what he is buying and due to this awareness
and past experiences his decision is now a more involved decision. With change in
customer behavior the process of buying has undergone a change and digital now
plays a significant part in his decision making.
According to the IRDAI (Insurance Regulatory and Development Authority of
India) Annual Report 2017, the insurance industry witnessed tremendous growth in
direct selling. It has taken a leap of 4.15 percent in 2016-17 compared to 0.4 percent
in 2006-07. Though the number in absolute term is still small its growth is indicative
of changing customer preferences.
Being close to the customer these days is more significant than ever before. With
their genuine feedback, companies innovate, improve and reinvent. This explains
the need for agility to adapt to the rapidly changing preferences of the customers
today. Going digital has been a key priority and focus for insurers. Growth in digital
is also being enabled by the governments digital push, electronic know- your-
customer (e-KYC) are few of the game changing enablers.

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While there are several factors to be considered for success, there are some key
challenges which need to be addressed:
1) Adapting new technologies
Technology advances are transforming different industries and sectors. Disruptions
of these advances have already entered the insurance space. These will have
widespread implications across insurance business including underwriting, sales,
customer service, claims etc. To adapt to the changing technology, insurers have
been investing in digital platforms that strengthen relationships with its
stakeholders, mainly the customers. All the efforts taken are only to empower
customers to buy insurance online, make products more transparent and simpler to
understand.
Various technologies like chatbots, machine learning, artificial intelligence and
Internet of Things (IoT) are helping in understanding the customer better and
making the buying process smooth and hassle-free.
2) Customer centricity
In this digital age, customers prefer insurance companies to match the same
standards set by digital e-commerce giants in terms of customer service. They
require shorter response times; seamless interaction; simple, understandable, and
personalized products and service; the best possible quality; and more transparency.
This is a real challenge for the insurance companies. Nonetheless, they are making
constant efforts to provide need and value based insurance solutions by ensuring
they receive swift and efficient services. Be it the on-boarding processes, claim
settlements, renewals and underwriting, insurers have taken necessary steps in
accelerating and making processes simpler with improved customer experiences,
thanks to technology and digitalization.

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3) Improving data and security systems
Digital buying is picking up at a slow pace due to fear. Even today, online
transactions leave some customers apprehensive. But with technological
advancements and more secure methods, insurers have taken steps to ensure the
buying process is safe and secured. Reliable cloud systems and data security
applications have ensured a total protection of data, hence maintaining privacy and
safety.
4) Embedding a culture of innovation
Innovation is crucial for an organization’s success. It takes two factors to make
innovation real at any organization: concepts and culture. These are the elements
that will assure positive outcomes. To understand the customer’s ever evolving
mindset and serve them better, an innovative culture in an organization is the need
of the hour. One way to stay relevant in customer’s mind is through constant
innovation and continuous improvement. Organizations have slowly reformed
workplaces and fostered imaginations which have helped solve numerous customer
issues.
Customers along with insurers have now stepped on to the digital drive. Insurance
companies do understand the need to embrace digitalisation and have taken the
initiative to nurture their transformation roadmap for the welfare of their customers.
Whether it is buying insurance or choosing your pair of glasses, digital is taking
customers by storm. The fear of buying a financial product online should be a long-
gone statement in the coming years.
Digital Insurer
Two decades ago, when private insurance companies made their entry into India's
then under-penetrated insurance sector, there were many apprehensions as state-

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owned companies like Life Insurance Corporation of India (LIC), New India
Assurance, Oriental Insurance and others ruled for decades. They were all big
companies, backed by the government and were trusted brands in the market. "Who
will trust private insurance players?" people would ask.
Today, things are different. ICICI Pru, ICICI Lombard, HDFC Standard Life,
HDFC Ergo, Max, Max Bupa and Apollo Munich are big names in life, general and
health insurance. However, they cannot rest on their laurels as the insurance
industry is facing yet another disruption, from fully-digital insurers.
Mumbai-based Acko General Insurance, founded by Varun Dua, is running a totally
digital platform based on risk-based pricing for retail covers such as motor and
health. "As the sector evolves, you will find more niche companies coming up
in terms of product and business models," says Dua who earlier co-founded
insurance broker Coverfox. He switched to manufacturing insurance than becoming
a mere broker because of the huge potential in the digital space. In the US, for
instance, there are many fully digital insurance players doing underwriting, two big
names being Lemonade and Root Car.
India is no exception as there are over 63 million digitally native millennials driving
the Indian economy. Be it e-commerce retail, food or hiring a taxi, digitally savvy
customers are creating a large industry for players who are willing to offer a
transparent platform.
What brings confidence to the platform is the presence of investors such as
Amazon, Narayana Murthy's Catamaran Ventures, DSP's Hemendra Kothari, and a
few others who have invested in the capital.
This young company plans to make general insurance (car and health) transparent
and simple for consumers and minimize their dependency on others for advice.
Consumers will be able to access low prices in one click, based on their risk profile

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and also get claims in the fastest possible time.
Dua believes that the low general insurance penetration, at 0.8 per cent of GDP, is
actually constrained by the complexity of products, cumbersome paper-based
offline process, varied pricing, lack of innovation and ambiguous terms and
conditions. "Acko is addressing each of these in every product being introduced in
the market," says Dua. Acko has innovated products like insuring Ola rides for
accidents or gadget protection through Amazon.
However, existing private insurance companies are changing and may catch up
soon with digital players like Acko. Dua counters saying that not everyone
(physical players) can replicate the success of Flipkart or Amazon. "Our DNA is
digital. We are doing only digital. We are not a broker driven organization," asserts
Dua.
Why Digital Tech is the way forward insurance Companies
It’s not just banking. Other financial services segments such as insurance are also
taking to digital technology.
With insurance penetration in India among the lowest in the world at an estimated
3.49 per cent in 2016-17, insurers are using digital platforms to expand their reach
beyond metros.
For instance, Reliance Nippon Life Insurance partly credits its turnaround over the
last two years to digital.
Its initiatives include a digital platform, Super Express, which issues policies in a
30-minute process and provides instant customized illustration.

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“Super Express enhances sales performance by tracking sales activity, generating
real-time customer propositions and facilitating instant issuance,” said Ashish
Vohra, CEO and Executive Director, Reliance Nippon.
According to Tarun Mathur, Chief Business Officer at PolicyBazaar, about 7 per
cent of all insurance policies sold in the country are via online channels; the ease,
convenience and reach are the major attractions.
AI, chatbots
Most insurers have now also adopted technologies such as artificial intelligence
(AI) and chatbots to provide a better interface to customers.
“In today’s world, people don’t have the time to wait for an agent. They want to
log on, explore and understand products on their own and even buy policies on their
own,” noted an executive with a general insurer, adding that this has reduced mis
selling.
From comparing policies for health and motor insurance, people also tend to go
digital when buying small-ticket products such as travel insurance or home
insurance.
Insurers are also embracing digital technology in Tier 2 and 3 cities for training
agents and helping customers understand policies.

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INTRODUCTION OF STUDY
In today’s scenario, there has been a major change in economic prosperity all over.
Higher income levels and booming stock markets have led to more and more numbers of
high net worth investors. This means the availability of huge invisible surplus. The
investors with higher risk appetite want to experiment try new and exotic products in the
name of diversification. This has resulted in emergence of new options within the same or
fresh asset classes. There are more products available within each asset class be it Equity,
Insurance, Gold, Real Estate.
An investor has many options for making his investments. However, all of them do not
give optimum returns at little or no risk. An investment in Insurance is an investment that
gives results comparable to trading in shares, and the risk are reduced quit a lot. Almost all
Insurance houses have started Systematic Investment plans (SIP) over a last couple of
years. They harp upon the minds of investors to invest in the SIPs to minimize the market
risks.
During the training period and interaction with people it was found that awareness of
Insurance among (Individual Financial Agentss) IFA’s was there to a limited extent but
there was lot of misconceptions among them about Insurance as we had meet few who had
lost their money in UTI scam and others though where aware of Insurance where not
suggesting this to their clients as they thought it as to be too risky for their clients and those
who were aware where really aggressive to take the opportunity offered by Insurance to
earn a high return. On the whole if we have to conclude our survey we would like to say
that if we have to create awareness about diversified portfolio, professional management
and SEBI Regulations and benefits it offers to IFA’s and their
clients and also we have to clear few perception which IFA’s have, to tap the huge potential
which Insurance market has to offer.

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INDUSTRY PROFILE
A. Introduction
Investment is referred to a concept of rendered consumption, which could be in the form
of an asset, rendering a loan, keeping the saved funds in a bank account such that it might
generate lucrative returns in the future etc. The options of investments are huge, all of them
having different risk-reward trade off.
This concludes that the investment industry in India is really broad and that is why
understanding the core concepts of investment and accordingly analyzing them is essential.
Only after thorough understanding of the investment industry, can an investor create and
manage his own investment portfolio such that returns are maximized with the minimum
level of risk.
The Investment Options
In India the investor has wide variety of investment options available to him. Economic wellbeing
in the long run depends significantly on how wisely he invests. Every investment option have
two main aspects i.e. risk and return. The investor has the choice of investment in capital markets
of the country and also in financial institution of the country like Banks and Insurance companies.
The various tools of investment available to investor are as follows -:
• Equity Shares
• Bank Deposits
• Investment in Debt Market
• Post Office Savings
• Government Securities
• Life Insurance
• Real Estate

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B. INTRODUCTION OF INSURANCE
A Insurance is a pool of money that is invested in various securities and professionally
managed by an investment manager. The money thus collected is invested by the fund
manager in different types of securities depending upon the objectives of the scheme. These
could range from equity to debentures to money market instruments. The income earned
through these investments and the capital appreciation realized by the scheme is shared by
its unit holder. Thus a Insurance is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified.
Insurance is also called unit trust or open ended trust a company that invests the funds of
its clients in diversified securities and in turn represent those holding. They make
continuous offering of new shares at NAV (Net Asset Value) determined daily by the
market values of the securities they hold.
The flow chart below describes broadly the working of a Insurance.
Source:www.indiamart.com
Insurance is the pooling of Money from the retail investors to the corporate
investor’s for Sustainable growth of the investments ……
The securities & exchange Board of India (Insurance) Regulation, 1993 defines a Insurance
as “a fund established in the form of a trust by a sponsor to raise money by the trustees
through the sale of units to the public, under one or more schemes, for investing in
securities in accordance with these regulations”.

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C. Concept of Insurance
• Many investors with common financial objectives pool their
money
• Investors, on a proportionate basis, get Insurance units for the
sum contributed to the pool
• The money collected from investors is invested into shares,
debentures and other securities by the fund manager
• The fund manager realizes gains or losses, and collects dividend
or interest income
• Any capital gains or losses from such investments are passed on
the investors in proportion of the number of units held by them
When an investor subscribes for the units of a Insurance, he becomes part owners of the
assets of the fund in the same proportion as his contribution amount put up with the corpus
(the total amount of the fund). Insurance investor is also known as Insurance shareholder
of units holders.
For Example:
1- If the market value of the assets of a fund is Rs. 100,000. The total number of units
issued to the investors is equal to 10,000.
Ans- Then the NAV of this scheme= (A)/(B),i.e. 100,000/10,000 or 10.00
Now if An Investors 'X' owns 5 units of this schemes. Then his total Contribution to
the fund is Rs.50 (i.e., Numbers of the units held multiplied by the NAV of the Scheme)

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D.HISTORY OF INSURANCE – INDIA
The Insurance industry in India started in 1963 with the formation of Unit Trust of India
from the initiative of the government of India and Reserve Bank. The history of Insurance
in India can be broadly classified into four phases
Phase 1: July 1964 – November 1987
The Unit Trust of India was the sole player in the industry. It was created by an Act of
Parliament in 1963; UTI launched its first product, the Unit Scheme 1964, which even
today is the single largest Insurance scheme. UTI created a number of products such as
monthly income plan, children’s plan, equity oriented schemes and offshore funds during
this period. UTI managed assets of 6710 Cr RS.
Phase 2: 1987-1993 (Entry of Public Sector Funds)
In 1987 public sector banks and financial institutions entered the Insurance industry. SBI
Insurance was the first non – UTI fund to be set up in 1987. Significant shift of investors
from deposits to Insurance industry happened during this period. Most funds were growth
– oriented closed- ended funds. By
the end of this period, assets under UTI’s management grew to RS. 38,247 Cr and public
sector funds managed Rs. 8750 Cr.

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Phase 3 - 1993-1996: Emergence of Private Funds
In 1993, Insurance industry was open to private sector players, both Indian and foreign.
SEBIs first set of regulations for the industry were formulated in 1993, and substantially
revised in 1996. Significant innovations in servicing, product design and information
disclosure happened in this phase, mostly initiated by private sector players.
Phase 4 - 1996-99: Growth and SEBI Regulation
The implementations of the new SEBI regulations and the restructuring of the Insurance
industry led to rapid assed growth. Bank Insurances were re-cast according to the SEBI
recommendation structure, and UTI came under voluntary SEBI supervision.
Phase 5 - 1999 - 2004: Emergence of a large and uniform industry
This phase was marked by very rapid growth in industry, and significant increase in
market shares of private sector players. Assets crossed RS. 1,00, 000 Cr. The tax break
offered to Insurances in 1999 created arbitrage opportunities for a number of
institutional players. Bond funds and liquid funds registered the highest growth in this
period, accounting for nearly 60% of the assets. UTI’s share of the industry dropped
50%.
Phase 6 - from 2004 onwards: Consolidation and Growth
The industry has lately witnessed a spate of mergers and acquisitions, most recent ones
being the acquisition of schemes of Alliance Insurance by Birla Sun Life, Sun F&C
Insurance by Principal and PNB Insurance by Principal. At the same time, more
international players continue to enter India, including Fidelity, one of the largest funds
in the world. The stage is set now for growth through consolidation and entry of new
international and private sector players. As at the end of March 2006, there were 29 funds

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E. STRUCTURE OF INDIAN MUTUALFUND
Custodian
Agent
The Mutual
Fund
Trustees
SEBI
AMC
Sponsors
Unit Holders

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STRUCTURE OF MUTUAL FUND
The Structure Consists:
The structure of Insurances in India is governed by the SEBI Regulations, 1996. These
regulations make it mandatory for Insurances to have a 3-tier structure of Sponsors-
Trustee-AMC (Asset Management Company).
The Sponsor is the promoter of Insurance, and appoints the Trustee. The Trustees are
responsible to the investors in the Insurances, and appoint the AMC for managing the
investment portfolio. The AMC is the business face of the Insurances, as it manages all the
affairs of Insurances. The Insurances and AMC have to be registered by the SEBI.

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Sponsor:
Sponsor is the person who acting alone or in combination with another body corporate
establishes a Insurance. Sponsor must contribute at least 40% of the net worth of the
Investment Managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Insurances) Regulations, 1996.The Sponsor is not responsible
or liable for any loss or shortfall resulting from the operation of the Schemes beyond the
initial contribution made by it towards setting up of the Insurance
Trust:
The Insurance is constituted as a trust in accordance with the provisions of the Indian Trusts
Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act,
1908.
Trustee:
Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals).
The main responsibility of the Trustee is to safeguard the interest of the unit holders and
inter-alias ensure that the AMC functions in the interest of investors and in accordance with
the Securities and Exchange Board of India (Insurances) Regulations, 1996, the provisions
of the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd
directors of the Trustee are independent directors who are not associated with the Sponsor
in any manner.

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Asset Management Company (AMC):
The AMC is appointed by the Trustee as the Investment Manager of the Insurance. The
AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to
act as an asset management company of the Insurance. At least 50% of the directors of the
AMC are independent directors who are not associated with the Sponsor in any manner.
The AMC must have a net worth of at least 10 Cr. at all times.
Registrar and Transfer Agent:
The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to
the Insurance. The Registrar processes the application form; redemption requests and
dispatches account statements to the unit holders.
Depository:
Indian capital markets are moving away from having physical certificates for securities, to
ownership of these securities in ‘dematerialized’ form with a Depository.
Unit Holders:
Unit Holders are those investing in Insurance.

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Custodian:
Custodian is the agency, which will have the legal possession of all the securities Purchased
by the Insurance. Insurances run by the subsidiaries of the nationalized banks had their
respective sponsor banks as custodians like Canada bank, SBI, PNB, etc. Foreign banks
with higher degree of automation in handling the securities have assumed the role of
custodians for Insurances. With the establishment of stock Holding Corporation of India
the work of custodian for Insurances is now being handled by it for various Insurances.
SEBI:
The Stock Exchange Board of India (SEBI) is regulatory authority of the Insurances

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F. PLANS THAT INSURANCE OFFERS:
Insurances in order to cater to a range of investors have various investment plans. Some
of the important investment plans include the following:
Growth Plan
Under the Growth Plan, the investor realizes only the capital appreciation on the investment
(by an increase in NAV) and does not get any income in the form of dividend.
Income Plan
Under the Income Plan, the investor realizes income in the form of dividend. However,
his NAV will fall to the dividend.
Dividend Re-investment Plan
Here the dividend accrued on Insurances is automatically re-invested in purchasing
additional units in open-ended funds. In most cases Insurances offer the investor the
investor an option of collecting dividends or re-investing the same.

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Systematic Investment Plan (SIP)
SIP is similar to a Recurring Deposit. Every month an amount the investor chooses, is
invested in a Insurance scheme of his/her choice. Under this plan Investors invest a specific
amount for a continuous period, at regular intervals. By doing this the investor get the
advantages of rupee cost averaging. Which means that by investing the same amount at
regular intervals, the average cost per unit remains lower than average market price,
irrespective of how the market is- arising, falling or fluctuating with every fluctuation in
the market the units are purchased systematically, thus resulting in averaging the purchase
price? This is the reason why a sip investor gets phenomenal rate of return compared to a
one time investor.
Systematic withdrawal plan
As opposed to the Systematic Investment Plan, the Systematic Withdrawal Plan allows the
investor the facility to withdraw pre-determined amount/units from his fund at pre-
determined interval. The investors units will be redeemed at the existing NAV as on that
day.
Retirement Pension plan
Some schemes are linked with retirement pension. Individuals participate in these plans for
themselves, and corporate for their employees.
Insurance Plan
Some schemes launched by UTI and LIC offer insurance cover to investors.

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Significance of Various Types of Funds
In this section, we have developed an understanding of various
Insurance classifications and types. It must be appreciated that no
specific class or type is universally accepted as the best option. Each
type of funds comes with its pros and cons and a unique risk-
Return relationship. It is up to the investor to
Decide the type that best suits his requirements and matches his
objectives

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G. Advantages of Insurances:
Insurance is emerging as favorite investment vehicle because of it has many advantages
over other forms and avenues of investing, particularly for the investor who has limited
resources available in terms of capital and ability to carry out detailed research and market
monitoring. The following are the major advantages offered by Insurance to all investors.
• Portfolio diversification:
Insurances normally invest in a well-diversified portfolio of securities. Each investor in a
fund is a part owner of all of the fund’s assets. This enables him to hold a diversified
investment portfolio even with a small amount of investment.
• Professional management:
Even if an investor has a big amount of capital available to him, he benefits from the
professional management skill brought in by the fund in the management of the investor’s
portfolio. The investment management skills, along with the needed research into available
investment options, ensure a much better return than what an investor can manage on his
own. Few investors have the skills and resources of their own to succeed in today’s fast
moving, global and sophisticated markets.
• Reduction of transaction cost:
What is true of risk is also true of transaction cost. A direct investor bears all the cost of
investing such as brokerage or custody of securities. When going through a fund he has the
benefit of economies of scale; the funds pay lesser costs because of larger volumes, a
benefit passed on to his investors.

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• Reduction / Diversification of risk:
An investor in a Insurance acquires a diversified portfolio; no matter how small is his
investment. Diversification reduces the risk of loss, as compared to investing directly in
one or two shares or debentures or other instruments. When an investor invests directly,
all the risk of potential loss is his own. While investing in the pool of funds with other
investors, any loss on one or two securities is also shared with other investors. This risk
reduction is one of the most important benefits of a collective investment vehicle like the
Insurance.
• Liquidity:
Often investors hold shares or bonds they cannot directly, easily and quickly sell.
Investment in a Insurance, on the other hand, is more liquid. An investor can liquidate the
investment by selling the units to the fund if it is open end fund, or by selling the units in
the stock market if the fund is a close end fund, since closed ends funds have to be listed
on a stock exchange. In any case, the investor in a closed end fund receives the sale
proceeds at the end of a period specified by the Insurance or stock exchange.
• Convenience and flexibility:
Insurance management companies offer many investor services that a direct market
investor cannot get. Within the same fund family, investors can easily transfer/ switch their
holding from one scheme to another. They can also invest or withdraw their money at
regular in most open-end schemes. Insurance investment process has been made further
more convenient with the facility offered by funds for investors to buy or sell their units
through the internet or email or using other communication means. The investors also get
updated market information from the funds. The information about the schemes is also
shared by the fund’s managers in a transparent manner, with all material facts required by
regulators to be disclosed to the investors.

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• Safety:
Insurance industry is well-regulated; all funds are registered with SEBI which lays down
rules to protect the investors. Thus, investors also benefit from the safety of regulated
investment environment.
• Transparency:
Funds provide investors with updates information pertaining to the markets and the
schemes. All material facts are disclosed to investors as requires by the regulator.

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G. Disadvantages of Insurance:
1. Management risk
When you invest in a Insurance, you depend on the fund's manager to make the
right decisions regarding the fund's portfolio. Fluctuating Returns Unlike fixed-income
product as bonds and Treasury bills, Insurances experience price fluctuations along with
the stocks that make up the fund.
2. No Guarantees
No investment is risk free. If the entire stock market declines in value, the value of
Insurance shares will go down as well, no matter how balanced the portfolio. Fluctuating
Returns Unlike fixed-income products, such as bonds and Treasury bills, Insurances
experience price fluctuations along with the stocks that make up the fund.
3. Fees and commissions
All funds charge administrative fees to cover their day-to-day expenses. Some funds also
charge sales commissions or “loads” to compensate brokers, financial consultants, or
financial planners. Even if you don't use a broker or other financial adviser, you will pay a
sales commission if you buy shares in a Load Fund.
4. Taxes
During a typical year, most actively managed Insurance sell anywhere from 20 to 70
percent of the securities in their portfolios. If your fund makes a profit on its sales, you will
pay taxes on the income you receive, even if you reinvest the money you made

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5. Delay in redemption
The redemption of the funds though has liquidity in 24-hours to 3 days takes formal
application as well as needs time for redemption. this becomes cumbersome for the
investors.
6. Non-availability loans
Insurances are not accepted as security against loan. The investor cannot deposit the
Insurances against talking any kind of bank loans though they may be his assets.

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H. Types of Insurances
1. General classification of Insurances
• Open-end funds
Funds that can sell and purchase units at any point in time are classified as open-end funds.
The fund size (corpus) of an open-end fund is variable (keeps changing) because of
continuous selling (to investors) and repurchases (from the investors) by thefund.
• Closed-end funds
Funds that can sell a fixed number of units only during the new fund offer (NFO) period
are known as closed-end funds. The corpus of a closed-end fund remains unchanged at all
times. After the closure of the offer, buying and redemption of the units by the investors
directly from the funds is not allowed. However, to protect the interests of the investors,
SEBI provides investors with two avenues to liquidate their positions.
1-closed-end funds are listed on the stock exchanges where investors can buy/sell units
from/ to each other. The trading is generally done at a discount to the NAV of the scheme.
The NAV of a closed-end fund is computed on a weekly basis (updated every Thursday)
2-Closed-end funds may also offer "but-back of units" to the unit holders. In this case, the
corpus of the fund and its outstanding units do get changed.

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• Interval funds
It combines features of both open-ended & close-ended schemes. They are largely close-
ended, but become open-ended at pre-specified intervals. The benefits of investors are
that, unlikely in a purely close-ended scheme, they are not completely dependent on the
stock exchange to be able to buy or sell units of the interval funds.
• Actively managed funds & passive
Active managed funds-
Are those funds where the fund manager has flexibility to choose the investment portfolio,
within the broad parameters of the investment objectives of the scheme.
Passive funds-
Invest on the basis of the specified index, whose performance it seeks to track. The
performance of these funds tends to mirror the concerned index. They are not designed to
perform better than market. Such schemes are called index schemes.

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I. Risk associated with Insurances
Investing in Insurances as with any security does not come without risk.
One of the most basic economic principles is that risk and reward are directly correlated.
In other words, "the greater the potential risk, the greater the potential return".
The types of risk commonly associated with Insurances are:
1-Market Risk-
Market risk relates to market value of a security in the future. Market prices fluctuated
and are susceptible to economic and financial trends, supply, demand and many other
factors that cannot be precisely predicted or controlled. Because of the type of securities
commonly found in the Insurances: common stock, preferred stock, corporate bonds,
government bonds, and so on is subjected to market risk.
2- Political Risk-The political landscape has a tendency to change frequently,
affecting the value and/or performance of investments. There is no greatest single factor
related to political risk. Manipulation of minimum wage levels, government regulation,
changes in tax code, and philosophical differences regarding foreign trade are all just a few
of the many factors that combine to create the political risk. Collectively, as citizens we
have indirect control through the power of our vote. Individually, investors have virtually
no control.

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3-Inflation risk- Inflation or purchasing power risk reflects to the uncertainty of the
future purchasing power of invested dollars. The risk is the increase in the cost of goods
and services as measured by consumer price index that will erode the purchasing power of
fixed investments.
4-Currency Risk-The risk is that fluctuations in the exchange rate between the US
dollars & foreign currency may decrease the value of security, that is either invested or
whose value is derived upon that currency. Global & international investments are more
subject to this type of risk.
The risk that Insurance underlying securities cannot be sold at a fair price within a
reasonable period of time. Share in largely Blue-chip stocks are considered liquid because
these are large no. of outstanding shares that are actively traded. As result their stock prices
are not dramatically affected by day-to-day buying and selling. Conversely since a few big
orders currently influence the share price.

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I. Broad classification of Insurances
1. Equity funds
Equity funds are considered to be the riskier funds as compared to other funds types,
but they also provide higher returns than other funds. It is advisable that an investor
looking to invest in an equity fund should invest for long term i.e. for 3 years or more.
There are different types of equity funds each falling into different risk
bracket. In the order of decreasing risk level, there are following types of equity funds:
A. Aggressive growth funds-
In Aggressive Growth funds, fund’s managers aspire for maximum capital appreciation
and investor in less researched shares of speculative nature. Because of these

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speculative investments Aggressive growth funds becomes more volatile and thus, are
prone to higher risk than other equity funds.
B. Growth funds-
Growth funds also invest for capital appreciation (with time horizon of 3 to 5 years)
but they are different from Aggressive growth funds in the sense that they invest in
companies that are expected to outperform the market in the future.
C. Specialty funds-
Specialty funds have started criteria for investments and their portfolio comprises of
only those companies that meet their criteria. Criteria for some specialty funds could
be to invest/ not to invest in particular regions / companies. Specialty funds
concentrated and thus, are comparatively riskier than diversified fund. There are
following types of specialty funds:
1- Sector funds:
Equity funds that invest in a particular sector/industry of the market are
known as sector funds. The exposure of these funds is limited to a
particular sector (say Information Technology, auto banking,
pharmaceuticals or fast-moving consumer Goods) which is why they are
riskier than equity funds that invest in multiple sectors.
2- Foreign securities funds:
Foreign securities Equities funds have the option to invest in one or more
foreign companies. Foreign securities funds achieve international

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diversification and hence they are less risky than sector funds.
3- Hybrid funds:
As the name suggests, hybrid funds are those funds whose portfolio
includes a blend of equities, debts and money market securities. Hybrid
funds have an equal proportion of debt and equity in their portfolio.
There are two types of funds in India
i) Monthly income plan
ii) Capital protected schemes
D. Debt/ income funds
Funds that invest in medium to long-term debt instrument issued by private
companies, banks, financial institutions, government and other entries
belonging to various sectors (like infrastructure companies etc.) are known
as debt/ income funds. Based on different investment objectives, there can
be following types of debt funds
a) Diversified debt funds-
Debt funds that invest in all securities issued by entities belonging to all
sectors of the market are known as diversified debt funds. The best feature
of diversified debt funds is that investments are properly diversified into all
sectors which results in risk reduction.
b) Gilt funds-
Junk bonds schemes-
Are also called high-yield bond schemes invest in companies that are of poor

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credit quality.
c) Fixed maturity plan-
Is a kind of debt fund where the investment portfolio is closely aligned to
the maturity of the scheme.
d) Floating rate funds- Invest largely in floating rate debt securities i.e., debt
securities where the interest rate payable by the issuer changes in the line
with the market.
e) Liquidity schemes- Or money market schemes are a variant of debt schemes
that invest only in the moneys will be repaid within 91-days.
E. Gilt funds-
Also known as government securities in India, Gilt funds invest in government
papers (named dated securities) having medium to long term maturity period.
Issued by the government of India, these investments have little credit risk (risk of
default) and provide safety of principal to the investor.
F. Other funds-
i) Commodity funds
ii) Real state funds
iii) Exchange trade funds

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Factors Affecting Insurance: -
• Governmental Influences: -
Insurance business is a highly regulated business throughout the world as it
ensures that quality and fairly prices schemes are available. Governmental
Inventions thus is Insurance market usually is most needed to ensure that insures
are reliable. And in the developing countries the additional goal may be promotion
of domestic Insurance industry and ensuring the national Insurance industry
contributes the overall economic development. In a non-technical sense Insurance
industry is to ensure that this principle of Insurance is never defeated. The ideology
of government plays an important role in Insurance industry also. For example, in
the past during 1991, the P. V. Liberalized the Insurance sector which help to allow
private players in the industry from 1993 and enhancing joint ventures with foreign
companies. The present government with more focuses on foreign direct
investments has declared to favor the rise FDI in Insurance to 49% which further
enhances competition in the industry.
• Taxation Policy: -
Social equity being one of the motives behind Tax collections, government
gives certain exemptions form such levying. One such exemption is deduction
incurred by taxpayers towards investment in Insurance coverage. Similarly, capital
invested in infrastructure bonds etc. is offered with certain concession under Tax
laws. The central idea behind such exemptions is that the capital so allocated by
individual reduces the ultimate burden on the public
infrastructure facilities. The Income TAX rule related to the Insurance transaction
can be classified as under;
• Exemption available to companies or business
• Exemption available to ensure individuals

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Exemption available to companies;
1. Expenses deductible from commission earned by the distributer, banker, national
distributer.
2. Tax concession under risk management practices of an enterprise
3. In growth option equity scheme, there no long-term capital gain by company.
4. In dividend option equity schemes, there no tax.
5. Return received by charitable trust ins total exempted from tax.
6. Else schemes give to advantage of tax saving, growth potential and return.
Tax rules governing investment by individuals-
Deduction in respect of ELSS schemes (sec80c);
Investment in this fund would enable you to avail the benefits under clause (XIII)
of the section 80c of the Income Tax Act investment made in the schemes up to 1
Lac by the eligible investor for deduction under this section of the Act. Section it
will be an income deduction an investment of Rs. 1 Lac in this fund can save of Rs.
33600 from your tax payable liability (assuming you are in the highest tax bracket)
investor will receive tax free dividend in above case. Investor will also receive tax
free dividend by investing equity schemes in dividend option investor
also receive tax free return by investing equity scheme in growth option for long
term capital gain.
Tax Planning
An Individual can think of health ELSS schemes purchase as a tool of tax planning
exercise. For example, people who are marginally affected by tax liability can be
as well purchase a ELSS fund get benefits of Rs. 33600 from tax. In this way tax
burden to individual/companies by way of exemptions/deductions of expenditure

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incurred towards purchase of Insurance various scheme coverage from total
income.
• Foreign Trade Regulations:
With the vast potential for Insurance in India due its large population in the
country many foreign companies are ready to enter into the Indian Market. But
companies can be permitted in India through joint ventures with an Indian partner
as well as come separately and the foreign equity shall be restricted to only 25%.
Another statement also tells that Indian subsidiaries of foreign companies shall not
be allowed to participate in the banking sector unless they entered in to joint
ventures with the Indian Partners. But at present the Insurance regulator is in favor
of hike in FDI Capital from 25% to 49%, and is finalizing a report that will be
submitted to the government for a comprehensive legislation for the industry. The
Security and Exchange Board of India (SEBI) and Association of Insurance India
(AMFI) have been advocating a hike in FDI limit for Insurance companies so that
the foreign partners can infuse additional funds in these companies to sustain their
growth. The government will need to amend the separate Insurance Act for FDI
capital as well as domestic company as this is the statutory provision
unlike sectors like civil aviation and telecom, which have come through
notification.
• National Income:
The relative importance of Insurance Market within a country will also be
dependent upon economic development. With greater rate of economic growth,
consumption of investment should increase as a result of increased income, and an
increased stock of assets requiring Insurance. Furthermore, the development of
Insurance is likely to facilitate greater economic growth, implying that economic
growth may be endogenous. Consistent with these arguments, studie3d find that the
level of financial development and economic development are positively related to
the level of Insurance across emerging markets.

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• Employment:
The effect of employment on Insurance is as direst as that on economic
development of ant country. With the raising level of employment, the effect on
Insurance industry is positive because employment acts to the insured properties
and assets from every prospective be it due to organized or unorganized.
• Inflation:
The midterm policy review the strong macroeconomic indicators and RBI has
revised its GDP growth estimates to the upper limit of the earlier protection range
8% inflation (WPI) has been steadily moving up in recent times and RBI has
highlighted that primary articles prices have been one of the key contributors. How
one need to keep in mind that recent increase in global oil prices.
• Money Supply:
The central banks has indicated that credit growth and money supply number are
likely to be above its prosecution for the current fiscal year, the statement “to
consider promptly ball possible measures as appropriate to the evolving global and
domestic situation” is indicative and phased increase in FII limits for gilt
investment could help in developing the securities market and is part of the road
map toward fuller convertibility.
• Interest:
Interest is the major factor of investment when a person find less return from
investment tool then people move towards the higher returns tool of investment.

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• Risk Factor:
All investment in Insurance and securities are subject to market risks and the NAV
of the fund may go up or down depending on the factors and forces affecting the
securities market. There can be no assurance of the future results. The name of t6he
schemes does not in any manner indicate their quality, their future prospects or
returns. Their specific risk would be credit, market, illiquidity, judgment error,
interest rate, swaps and forward rates.
• Demographic Environment:
The demographic environments significantly affect the demand for the
Insurance industry. Factors like the average age of the population, level of
education, household structures income distribution, life style and the extent of
industrialization as well as urbanization terribly influence the demand of the
Insurance schemes. In India the average age of population is at an increasing trend
following the improved medical technology and better awareness of health care
requirement.

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CHAPTER 2
COMPANY
PROFILE

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COMPANY PROFILE
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.
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
retire children s future needs. Today, the market offers insurance plans that not just
cover your same time grow your wealth too. If you have dependents and financial
responsibilities toward them, then you Certainly need.
Having a family means dependent, 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 ensuring your earning

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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 element. Kotak preferred Retirement
Plans meet your dual financial goals of life cover and savings for the future
Collateral security.
Life was t 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.
About Kotak Mahindra Old Mutual Life Insurance Ltd
Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between
Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. The company
started operations in 2001, and strives to offer its customers outstanding value
through high customer empathy, consistent and benchmarked service and a suite
of products that leverage the combined prowess of protection and long-term

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savings. The company covers over 4 million lives and is one of the fastest
growing insurance companies in India.
About Kotak Mahindra Group
Established in 1985, the Kotak Mahindra group is one of India's leading financial
services conglomerates. In February 2003, Kotak Mahindra Finance Ltd.
(KMFL), the Group's flagship company, received a banking license from the
Reserve Bank of India (RBI). With this, KMFL became the first non-
banking finance company in India to become a bank – Kotak Mahindra Bank
Limited.
The consolidated balance sheet of Kotak Mahindra group is over Rs. 1.17 lakh
crore and the consolidated net worth of the Group stands at Rs. 17,228 crore
(approx. US$ 2.9 billion) as on June 30, 2013. The Group offers a wide range of
financial services that encompass every sphere of life. From commercial banking,
to stock broking, mutual funds, life insurance and investment banking, the Group
caters to the diverse financial needs of individuals and the corporate sector. The
Group has a wide distribution network through branches and franchisees across
India, and international offices in London, New York, Dubai, Abu Dhabi,
Mauritius and Singapore.
Old Mutual
Old Mutual provides life assurance, asset management, banking and general
insurance to more than 14 million customers in Africa, the Americas, Asia and
Europe. Originating in South Africa in 1845, Old Mutual has been listed on the
London and Johannesburg Stock Exchanges, among others, since 1999.
In the year ended 31 December 2012, the Group reported adjusted operating
profit before tax of £1.6 billion (on an IFRS basis) and had £262 billion of funds
under management from core operations.

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MILE STONES
1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting
1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market
1990 The Auto Finance division is started
1991 The Investment Banking Division is started. Takes over FICOM, one of India’s
largest financial retail marketing networks
1992 Enters the Funds Syndication sector
1995 Brokerage and Distribution businesses 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 Primus Limited. Kotak Mahindra takes a 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.
Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.
2000 Kotak Securities launches kotakstreet.com ‐ its 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 Ltd. converts to bank

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VISION AND MISSION STATEMENT
An uncommon bond. Strengthened by a common vision.
Apart from common beliefs, values and objectives we believe in the vision of a better
tomorrow. It is this deep veneer of faith that has brought us together and fortified our
bond.
The global Indian financial services brand
Our customers will eKotakoy the benefits of dealing with a global Indian brand that
best understands their needs and delivers customized pragmatic solutions across
multiple platforms. We will be a world-class Indian financial services group. Our
technology and best practices will be benchmarked along international lines while
our understanding of customers will be uniquely Indian. We will be more than a
repository of our customers' savings. We, the group, will be a single window to every
financial service in a customer's universe.
The most preferred employer in financial services
A culture of empowerment coupled with a spirit of enterprise, attracts bright minds
with an entrepreneurial streak to join us and stay with us. Working with a home-
grown, professionally-managed company, which has partnerships with international
leaders, gives our people a perspective that is universal as well as unique.
The most trusted financial services company
We will create an ethos of trust across all our constituents. Adhering to high
standards of compliance and corporate governance will be an integral part of
building trust.
Value creation
Value creation rather than size alone will be our business driver.

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Why Kotak Life Insurance
Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing
insurance companies in India, trusted by over 4 million policyholders nationwide.
The company is differentiated because of its proven ability to deliver outstanding
value to its customers through high customer empathy and understanding,
lifetime of exceptional service and suite of products that best leverage the
combined prowess of Protection and Long term Savings - the two key elements
that determine any winning life insurance product. The company also has among
the best claim ratios in the industry, a solemn testimony to its business practices.
Strengths
Financial Acumen - Holds a stable and diversified portfolio and has received
some of the highest ratings in financial strength from industry’s independent
rating agencies.
Disciplined fund management - Years of experience in asset management,
and a strong track record in managing funds - backed by the acclaimed
expertise of Old Mutual plc.
Innovativeness - Innovator in providing pragmatic and need based life
insurance solutions, with consistent emphasis on leveraging the combined
prowess of protection and long-term savings to the customer’s best
advantage.

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Unrelenting Customer Focus - A highly committed sales force, with
customer satisfaction as the key driving force
Transparency in Services - Daily declaration of fund performances, regular
performance benchmarking, well-regulated asset management, and monthly
newsletter on market updates
PRODUCT
a) Kotak Flexi plan
Advantages:
1. Choice of 5 professionally managed funds included Gilt Fund, Floating Rate
Fund, Bond Fund, Balanced Fund, Growth Fund.
2. Add lump sum iKotakections as and when suitable
3. Premium holiday facilities
4. Riders options for enhanced protection
5. Loan facilities in case of emergencies
6. Simplified documentation and procedures

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b) Kotak Retirement Income Plan
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 iKotakections 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
iKotakections, if the need arises.

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c) Kotak Endowment Plan
An 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 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.

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d) Kotak 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.
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 iKotakection 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.

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e) Kotak 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 realize his/her dreams. This is an endowment
plan where the life insured is the child. This is a participating plan.
Advantages:
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 forat least three years.
3 You have the option of paying premiums quarterly, half yearly or yearly.
5 You have the benefit of a 15-day free look period.

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CHAPTER 3
DISCUSSION OF
TRAINING

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Taking follow up
• Work profile :
Work as an assistant of unit sale manager
Work steps
Decide location with the help unit sale manger
Take feedbacks from insurance agent and financial Agents
Resolve the queries of prospective partner
Entries made of visited prospective partner
Invite prospective partner on BOP
If ready to being our partner my work is done if they have any confusion, we meet thempersonally
and convincing them for been our partner

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Roles & Responsibility:
 My role is to gather information of financial Agents and insurance agents
 Make entries of financial Agents and insurance agent on trainee disk
 Resolve all queries of prospective partner
 Convincing them for been our partner
 Resolve paper works problems of partners
 Taking follow up from prospective partner

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• Key learning:
 Insurances is better option to invest our money
 Insurances is not as risky as people perceive
 How to communicate with people
 How to Work in a team
 How to convince
 Select right time and right place for work

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CHAPTER 4
RESEARCH
METHODOLOGY

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RESEARCH METHODOLOGY
4.1) Research Problem
Awareness about Insurance among the IFA (Individual Financial Agents) of Kanpur
4.2) Research Objective:
Primary Objective:
• To study the awareness about Insurance among IFA (Individual Financial Agents) of Kanpur city
Secondary Objective:
• To study the awareness of revenue/commissions in Insurance
• To know whether Financial Agents are interested in Insurance or not.
• To know whether Financial Agents are aware about Insurance Business.
4.3) Research Design:
Descriptive research design is a scientific method which involves observing and describing the behavior
of a subject without influencing it in any way.

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Descriptive Research Design had used for the purpose of survey as it had enabled us to describe the
characteristics of a particular group of insurance agent and their tendency towards Insurances.
Why Insurance agents should sell Insurances?
Ans:-
Reason 1: Easy to make more clients
1-The penetration of Insurances is very low.
2-The penetration of Insurance is very high.
3- Opportunity for you to acquire more clients.
4-Now no call of yours should get waste.
Reason 2: Less Competition in the market
1-Nationally these are 20 lacks Insurance agents huge competition even in small villages/towns
2- There are only 1 lack AMFI certified Insurance agents all over India (25 thousand are partner of
KOTAK)

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3-A huge DEMAND of quality Insurance Agents
Reason 3: More satisfaction to your clients
1 -If you are not selling Insurances then you must not be aware of what they truly are and the possibilities
that they offer in providing solutions that meet the diverse needs of different clients.
2-With Insurances in your offering, you are in a much better position to fully meet the client'sfinancial
and investment and investor’s needs.
3-Yours clients would ideally like you to do that and will be happy once him multiple solutions.
Reason 4: Additional source of income
1. Insurance is one product today that potentially has no limits to the volumes that you can generate.
2- The important differentiation here with insurance is that your income is not based on premium you
collect but on the entire AUM (assets under management) that you have mobilized to counter the low rates.
3- An agent's AUM running into crore in quite common in the industry. The income from Insurances can
complement your earnings from insurance and may even substitute them, in future.

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Reason 5: Leveraging existing clientele base
1- How to get more out of what you already have?
2-Well, Insurance is just the perfect answer to that question.
3-The truth is that there is a lot of potential to generate further income from your existing clientelebase.
4-Much of the investment needs of clients are unexplored and unfulfilled that you can satisfy.
Reason 6: Retention and loyalty of clients
1- The underlying logic can be found in the growth of multiplexes, shopping malls, after all thehuman
nature is basically the same.
2-People today look for easy, fast, and simple service point that provides them with solutions that meets
their multiple needs.
3- Yours clients would probably invest in Insurances some day or later
4-Why not you do the same before anyone else gets to your client

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4.4) Source of data
There are mainly two sources for collection of data is used that is primary as well as secondary sources.
Primary Source Information
• Obtaining data by Financial Agents
Secondary Source Information
• Internal: Companies internal information & Database
• External: Books, Magazine, journals.
2.5) Sampling Method:
For this research Convenience sampling had used for data collection purpose.
2.6) Sample Size:
For this survey 80 Financial Agents of Kanpur city to have better idea and representative of the
population being surveyed.

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2.7) Research Instrument:
A detailed questionnaire had used for purpose of survey
2.8) Data analysis tool:
• Microsoft Excel for the data analysis.
• Tables and Charts for Graphical Representation.

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2.9) Limitation of the study
Every research has its own limitation and present research work is no exception to this general rule the inherent
limitation of the study is as under.
• Personal approach, which was followed in the present research work, is relatively more time
consuming. In addition to this is a very expensive method, especially when spread geographically
sample is taken
• We have address of so many people but because of their personal work we can’t meet.
• It is very time-consuming process few agents refused to give answers

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CHAPTER 5
DATA ANALYSIS

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5.1 DATA ANALYSIS AND INTERPRETATION
Que1. How many years of experience do you have in financial Agents business?
0-5 Years 15%
5-10 Years 20%
10-15 Years 35%
More than 15 Years 30%
Interpretation: most highly experience in financial Agents business 35% 10-15 years and 30% more
the years.
10-15 Years
35%
5-10 Years
20%
0-5 Years
15%More than 15
Years
30%

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Que2. Which product does you deal with?
Life Insurance 25%
Insurances 20%
General Insurance 20%
Stock Broking
Health Insurance
5%
27%
Postal Service 3%
-
Interpretation: mostly deal with health insurance and life insurance.
Life Insurance25%, Insurances 20%, General Insurance20%, Health Insurance27%, Stock Broking5%,
Postal Service 3
General
20%
Mutual Funds
20%
Stock Broking 5%
Health
27%
Life Insurance
25%
Postal Service 3%

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Que3. How many clients do you cater to?
0-100 Clients
100-200 Clients 35%
20%
300-400 Clients 30%
400-500 Clients 15%
Interpretation: mostly 35% clients and 30% clients.
100-200 Clients
35%
300-400 Clients
30%
0-100 Clients
20%
400-500 Clients
15%

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Que4. Are you aware of types of Insurances?
Yes 80%
No 20%
Interpretation: 80% Aware the types of Insurances and 20% are not aware.
20%
80%
yes
no

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Que5. If your answer to previous question is yes, which one is preferred by clients most?
Debt 30%
Equity 55%
Hybrid 15%
Interpretation: - we observe that with the help of Agents response from 30%Debt is preferred by Clients
most,55%Equity is preferred by Clients most,15%Hybrid is preferred by Clients most in financial Agents
business.
15%
30%
55%
Debt
Equity
Hybrid

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Que6. How long does your clients invest core?
Long term (more than 1 year) …………………………..45%
Medium term (more than 6 months and less than 1 year) 35%
Short term (less than 6 months) 30
Interpretation: - we observe that with the help of Agents response from 30%Debt is preferred by Clients
most,55%Equity is preferred by Clients most,15%Hybrid is preferred by Clients most in financial Agents
business.
6 months)than 6 months and
less than 1 year)
1 year)
Long term (more than Mediumterm (more Short term (less than
45
40
35
30
25
20
15
10
5
0
Chart Title

82 | P a g e
Que7. Are you aware about the different ways of investing in Insurance?
Yes 70%
No 30%
Interpretation: aware about the different ways of investing in Insurance 70% ask yes and 30% no.
yes no
30%
70%

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Que8. If your answer to previous question is yes, then which of these your investor prefers most?
Lump Sum 35%
SIP 45%
Can’t say 20%
Interpretation: - we observe that with the help of Agents response from 35%Lump sum is preferred by Clients
most,45%SIP is preferred by Clients most,20%Cannot Say in financial Agents business.
Can’t say
20%
Lum Sum
35%
SIP
45%
Lum Sum SIP Can’t say

84 | P a g e
Que9. Do you know debt Insurance can give better fixed returns on saving account money or Bank
fixed deposit?
Yes 85%
No 15%
Interpretation: 85% asked yes on debt Insurance can give better fixed returns on saving account money or
Bank fixed deposit and 15% asked no.
15%
85%
yes no

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Que10. Are you aware about commission structure of Insurance schemes?
Yes 70%
No 30%
Interpretation: 70% people aware about commission structure of Insurance schemes, 30% are not aware about
commission structure of Insurance scheme.
Yes
No

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Que11. Are you aware about Kotak Mahindra Insurance network?
Yes 90%
No 10%
Interpretation: 90% aware about Kotak Mahindra Insurance network and 10% no aware.
Yes
No

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FINDINGS
• Most of the respondents have more than 5 years of experience as a financial Agents.
• Majority of the financial Agents are selling insurance to their Friends and relative members.
• Male financial Agents are more interested in Insurance Business rather than Female financial
Agents.
• Most of financial Agents have 0 to 100 client bases.
• 36 % financial Agents are believing that Insurance is risky product
• Only 11 % financial Agents are aware about return of Insurance.
• Only 18% financial Agents are aware about commission of Insurance.
• Many financial Agents are connected with insurance sector
• There is lack of interest in Young financial Agents to become an Insurance Agents

89 | P a g e
CHAPTER 6
SUMMARY AND
CONCLUSION

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CONCLUSION
The Company has good reputation in the market; however, it requires some efforts to increase the level of
awareness in the market. If company gives the continuous advertisement about the benefits and advantages
of Insurance in local TV channel and newspapers then it can be a popular tool for the customer and if the
customer are aware about the Insurance and they demand for it the general Agents have no choice other
than that.
Due to lack of awareness about Insurances they are not investing in it. Hence, it is necessary to educate
them by arranging some educational seminar to show them how to invest in Insurances? What is the
liquidity? What is the risk covered in Insurances?
Many of the people don’t know the different schemes available at market for investing their money into the
different Insurances.
Approximately all types of funds give desired return if investment is done with a long-term commitment.
People have suffered a lot from past bitter experience, so KOTAK tries to remove these from the mind of
people and Agents.
Overall, we can say that there is a large potential market for Company. Only what the Company is
required to do is to build trust & confidence of customer.
Lastly, we can say that KOTAK MAHINDRA INSURANCE has bright future for the coming years and
we hope this project report will help them to knowing various perceptions regarding various customers and
fulfill their demand.

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LEARNING FROM SIP
Working on the project at KOTAK MAHINDRA INSURANCE PVT LTD, Kanpur has benefited us as
follows
APPLICATION OF THEORY ASPECTS: -
After completing our second semester of M.B.A. having gain basic knowledge in the field of research, this
is a great opportunity for us to apply the learning of the two semesters. Up to till now whatever we have
learnt at the institute has come really versatile. Further came to learn new dimensions in these fields while
working on the project with our guide.
EXPERIENCE OF PRACTICAL WORKINGS: -
There is a wide gap between the theoretical world and practical life and after 45 days of working at the
project, we have really come to understand the difference Further we have really sharpened our skill to
think practically & judge what can be the practical problem faced by various institution of finance. Also
came to know that how various types of daily works are conducted. So we got such a great experience
which we never felt earlier.
CORPORATE EXPERIENCE: -
During this time period of 45 days, we have got sample work exposure to co-operate work environment.
Moreover, this has enhanced our confidence to handle situation in co-operative work environment. Also
came to know that how various decision are taken out & how various activities are conducted for marketing
point of views.
IMPROVING OUR COMMUNICATION SKILLS: -
We meet customers and spend around 5-10 minutes with them & it is a great experience to talk & interact
with them because of their knowledge sharing on the subject. While some are willing to give the required
information. This process has really given a chance to improve our oral communication skills.

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RECOMMENDATIONS
• In Kanpur branch, some of the partners are not satisfied with the service provided by the Kotak
Mahindra Insurance. So it should provide their best service to the KOTAK partner for growth of
the business.
• MFs cannot simply attract savings by mere small investors who have become very discerning in
selecting Insurances.
• Kotak Mahindra Insurance. Should give safety attributes because insurance agents are more
concerned about safety of the investment of their client.
• Find new Young financial Agents in this segment because they easy to accept new technology and
change.

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F
QUESTIONNAIRE
--------------------------------------------------------------------------------
NAME
MOBILE NO.
GENDER: MALE EMALE
ADDRESS: -
Que1. How many years of experience do you have in financial Agentsy business?
0-5 Years ( )
5-10 Years ( )
10-15 Years ( )
More than 15 Years ( )
Que2. Which product does you deal with?
Life Insurance ( )
Insurances ( )
General Insurance ( )
Stock Broking ( )
Health Insurance ( )
Postal Service ( )

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Que3. How many clients do you cater to?
0-100 Clients ( )
100-200 Clients ( )
300-400 Clients ( )
400-500 Clients ( )
Que4. Are you aware of types of Insurances?
Yes ( )
No ( )
Que5. If your answer to previous question is yes, which one is preferred by clients most?
Debt ( )
Equity ( )
Hybrid ( )
Que6. How long does your clients invest core?
Long term (more than 1 year) ( )
Medium term (more than 6 months and less than 1 year) ( )
Short term (less than 6 months) ( )

97 | P a g e
Que7. Are you aware about the different ways of investing in Insurance?
Yes ( )
No ( )
Que8. If your answer to previous question is yes, then which of these your investor prefers most?
Lump Sum ( )
SIP ( )
Can’t say ( )
9. Do you know debt Insurance can give better fixed returns on saving account money or Bank
fixed deposit?
Yes ( )
No ( )
10. Are you aware about commission structure of Insurance schemes?
Yes ( )
No ( )

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11. Are you aware about Kotak Mahindra Insurance network?
Yes ( )
No ( )
Que12. Are you satisfied with Kotak Mahindra Insurance?
Yes ( )
No ( )
Que13. Are you satisfied with Agents behavior?
Yes ( )
No ( )
Que14. Are you satisfied with Agentss advise?
Yes ( )
No ( )

100 | P a g e
BIBLIOGRAPHY
RM
Hand Book of Modern Marketing by V. P. Buell
FM
Making decisions by Robert Heller
WEBLIOGRAPHY
http://www.value research .com
http://www.amfiindia.com
http://www.sebi.com
http://www.KOTAKfundz.com
http://www.sKOTAKgroup.in/index.php

Mukesh singh kotak life summer internship report a critical study on using digital platformby agents of insurance companies in kanpur

Mukesh singh kotak life summer internship report a critical study on using digital platformby agents of insurance companies in kanpur

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Mukesh singh kotak life summer internship report a critical study on using digital platformby agents of insurance companies in kanpur