Heena Rawal

PG-B
Roll no- 98

Kotak Mahindra Old Mutual Life

Insurance
Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between
Kotak Mahindra Bank Ltd., its affiliates and Old Mutual. A company that
combines its international strengths and local advantages to offer its
customers a wide range of innovative life insurance products, helping
them in taking important financial decisions at every stage in life and
stay financially independent. The company is one of the fastest growing
insurance companies in India and has shown remarkable growth since its
inception in 2001. Kotak Life Insurance employs around 5,565 people in
its various businesses and has 197 branches across 141 cities.
Mission:
To focus on the needs of customers and create confidence, trust and
loyalty by offering a wide range of innovative insurance solutions.
Strengthened by commitment to professional management, they ensure
the continued growth and advancement of their employees.
Vision:
Kotak Life Insurance has a deep rooted commitment to improve the
quality of life of its customers, employees and stakeholders. They aim at
improving the long term value in their relationship by continuous
innovation and improvements. They do this by their three-prong effort
which strives to make Kotak Life Insurance a corporate with values.1.
Increase Customer
Value:
Kotak Life Insurance has gone to the heart of its customers requirements
and developed products which are unique and serve the customer
needs perfectly. We built a relationship of mutual trust and benefit to
serve the Indian customer. At Kotak Life Insurance the customer always
comes first.

7 ps

Products and Services:

Individual Plans:
Protection Plans:
Kotak Loan protection Plan

Savings and Investment Plans:

Kotak
Kotak
Kotak
Kotak

Super Advantage
Platinum Edge
Endowment Plan
Money Back Plan

Child Plans:

Kotak Term / Preferred Term Plan

Kotak Eternal Life Plans

Kotak Headstart Child Plans

Kotak Child Advantage Plan

Retirement Plans:

Kotak Long Life Wealth Plus

Kotak Long Life Secure Plus
Kotak Retirement Income Plan
Kotak Second Innings Plan
Group Plans:
Kotak Group Shield
Kotak Group Assure
Kotak Gratuity Group Plan
Kotak Superannuation Group Plan
Kotak Term Group Plan

Price:

Pricing is an important element in the service sector. So Kotak Life

Insurance has maintained a good pricing mix for child plan:
The disposable income in the hands of the prospects is found low
or almost nil so Kotak has adopted his strategy that is beneficial to
the end user and also paves the ways for increasing the insurance
business.
The price mix decisions basically depend upon the premium that
they are going to charge from the endusers. As in this case the
premium charged will be low in the initial stages and will increase
with the increasing age of the child. But in case if the child is
physically disabled the premium charged will be high. The
customers can even avail for loan facility if they opt for higher
premium plan.Kotak life gives more importance to pricing strategy
because they feel that it is the only means for attracting the
customers in true sense.

Place:

Kotak Life has adopted the place strategy in such a way that a gap
between
the
services
promised
and
services
offered
is bridged over. Kotak agents, brokers, branch office, retail finance
service distributors alliances with banks etc. play an important role
in delivering their services to policy holders at the right time and at
right place. This product is promoted in places like school, colleges
and other child zone areas. This product is highly flexible as it is
present for children in urban well as rural areas and thereby it
facilitates mobility.

Promotion:

Advertisements
This
product
has
been
advertised
through
telecast
media broadcast media and print media. Since this product is for
children up to 17 years of age the focus of advertisement is on
television which is more appealing. Kotak has recognized the need
for this plan and therefore has adopted suitable marketing strategy
which involves advertisements in popular kids channel like pogo,
hungama, star plus etc.
Publicity

The PROs of Kotak Mahindra life insurance has publicized this

product taking into consideration the eligibility and features and
has thereby come with an appealing strategy emphasizing not only
on children who are main benefit holders of this product but also
the family who will actually pay the premium for this product. the
PROS of Kotak life have developed a good rapport with
Sales promotion
The promotion activities are carried out by the agents,
development officers and branch officers. Kotak life has promoted
this plan by giving calenders dairies bags which they thought
should be given as a token of gift along with the plan. Kotak life
also conducts, seminars quiz, other contest, games in various malls
and play schools. All such activities have increased the volume of
saled and has also created a medium of awareness for the
children.
Personal selling
As we know that customer is the king , Kotak gives utmost
importance to personal selling of this product. Moreover, Kotak Life
conducts special training session for its agents who will finally
approach the end customers so that they can demonstrate
effectively which will enable the end users i.e childrens to buy the
product.

People:

People are most important component of marketing mix for the

insurance industry. Sophisticated process of technological
advances makes the way for the development of personnel in such
a way that an organization succeeds in making possible a
productive utilization of technologies used or likely to be used.
Professional qualification requirements change as technology
develops and evolves. The use of computers micro-computers, fax
machines, sophisticated telephonic services, and e-mailing, internet and intra-net services have been found throwing a big impact
on the perception of quality of services. This makes it essential
that the insurance organizations also think in favor of developing
personnel in line with the development and use of information
technologies. The front line staffs as well as the branch
managers are required to be given the training facility so that they
are in position to make possible and effective use of the

technologies.
The
insurance
organization
bear
the
responsibility of the developing the credentials of their employees.
In this context, it is also significant that they think about the
behavior profile of insurance personnel. It is pertinent that the
employees are well aware of the behavioral management they
know and understand the changing level of expectations of users
and make sincere efforts to fulfill the same. In this context, it is
also significant that the senior executive while the recruiting,
training and developing the insurance personnel make it sure that
employees serving the organizations have a high behavioral
profile in which empathy has been given due place. The
psychological attributes becomes significant with the view point of
influencing the prospect a retaining the users, it is in this context
that the insurance companies need a rational plan for the
development of insurance personnel. Kotak Life provides training
to its employees for making them competitive in the insurance
market.

Process:

In the current scenario, policyholders just log on to website and call

insurance advisors to their home or office. This insurance advisors
make customers aware about the new and advantageous product
for them. Alongwith it also helps customers to ask any query
related to any insurance products. So the process of taking life
insurance is very convenient . It is due to private players entering
into the market. But still the simplest model of life insurance takes
place mostly. It is as follows:

The client approaches the insurer through an agent with a proposal

containing his personal details, income details, medical history,
products ( the product describes the features provided by the
insurer like maturity bonus, claims allowed etc. These features vary
from product to product), sum assured (the amount for which the
client is covered), term (number of years for which the client is to be
covered) and premium amount (installment amount to be paid by
the client to the insurer). The agent who brings this proposal is
termed as a base/servicing agent for the proposal.
The proposal will go through various stages of approval and risk
evaluation by the Central Processing Centre of the Insurance
Company. Upon final approval, a legal agreement, termed as policy,
between the insurer and the client is prepared whereby the insurer

covers the client for the sum assured. The client is also entitled for
some additional benefits, if any, depending on the features of the
product taken in the policy. The base agent gets a commission for
the policy.
The client pays a premium at regular intervals. These subsequent
premiums are termed as renewal premiums. The base agent gets a
commission on the renewal premium also.
The client may come back with some alterations to the policy viz.
increase/decrease in sum assured, increase/decrease of the term of
policy etc. The insurer will make the relevant changes to the policy
and will issue endorsements stating the alterations made and their
effect on the policy.
During the term of the policy, the client can submit claims. The
insurer makes payment against the claim after verification.
Depending on the type of claim the policy is either terminated or is
kept in force.
At the end of the term of the policy, the client gets the sum assured
as part of the maturity benefit under life insurance policies. In
addition to this the client will get the maturity bonus and any other
benefits depending on the product feature.

Physical Evidence:

Physical evidence includes facility design, equipment signage,

employee dress, tangibles, reports and statements.
Signage
Signage personifies the insurance company. It gives a identity by
which users recognize the company. A signage depicts the
companys philosophy and policy. Following are some of the
examples
Tangibles
Insurance companies give their customers and agents various
tangible items like pen, letter pad, calendars. Such things try to
reduce the intangibility characteristics of this industry.