INTRODUCTION TO INSURANCE

The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. The benefit may be an income or something else. It is a benefit because it meets some of his needs. In the case of a factory or a cow, the product generated by is sold and income generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income.

Every asset is expected to last for a certain period of time during which it will perform. After that, the benefit may not be available. There is a lifetime for a machine in a factory or a cow or a motorcar. Thus he makes sure that the value or income is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it non-functional. In that case, the owner and those deriving benefits there from, would be deprived of the benefit and the planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effect of such adverse situations.

Review of literature
Although it is not immediately obvious, insurance forms a critical part of your investment portfolio. It is not just important, it is necessary. Paying towards your insurance policy is a sacrifice done today to provide for needs in the future.

Insurance policies are typically long term. Premiums paid toward the insurance plan are however locked in at the outset itself. In effect, when you buy an insurance plan, you are saving for the long term paying today's rates. Whatever the economic landscape might be, once you buy an insurance plan at a particular premium rate, you are set. The premium doesn't change according to market markers or anything else.

Insurance has two major components - savings and mortality benefit - that make it a unique part of any investment portfolio. The savings component is the long-term gain where you typically get a pay off at the end of the term. The mortality component is the protector of your earning capacity i.e. it pays out the entire sum assured if you die during the term of the policy, compensating for the loss of income suffered by your family due to your demise.

OBJECTIVES OF THE PROPOSED STUDY

The purpose of this project is to know and analyze the perception and thinking of people about life insurance. A questionnaire has been formulated for this Research and surveys are done. I am continuously meeting and surveying people of different areas.

To have a comaparative study on satisfaction level of customers using life insurance policy of SBI Life Insurance & Kotak Mahindra in Delhi & NCR To know about life insurance, its benefits and need. What does the Life Insurance provide? When is the right time to buy Insurance? Why is Insurance superior to other form of saving? To know awareness about life insurance among earning public. To establish the reasons of buying life insurance To know the type of life cover most preferred by the public. To find out the various policies in life insurance.

RESEARCH METHODOLOGY
Research Methodology deals with, the procedure adopted to carry out the study. A research design is the specification of methods and procedures for acquiring the information needed. It is the overall operational pattern or framework of the project that stipulates which information is to be collected from which sources by what procedures 1. Data was collected from primary as well as secondary sources. Customer data was partly supplied by my industry mentor and was partly by my own source. 2. Data was segmented according to N.C.R areas. 3. Sometimes meeting were pre-arranged and the prospectus were somewhat known about the matter to be discussed and sometime it would be purely a cold call. 4. A different type of approach was adopted for each profile likewise:- Chartered Accountants, Servicemen, Self-employed, Housewifes and students. For conducting the study, the researcher has adopted both primary as secondary method of data collection. SECONDARY DATA It has been collected from various books and Internet sites. This method of data collection has been adopted, a plenty of material was available on the Internet sites.

SAMPLE
Due of time and resource constraints, the sample of the study is taken as one and the technique of sampling adopted is: convenient sampling. Sample size: 80

Scope and Relevance of Proposed Study

The life insurance sector of India has added up to 4.1% of the GDP in 2009, a considerable growth was recorded since the time the sector was opened for the private companies. The contribution in FDI by the life insurance segment was recorded at US $ 1.3 billion, even though the government is likely to increase the FDI cap limit from 26% to 49%, a bill of which is pending at the Rajya Sabha. The year 2009-10 also saw private sector insurance company, Aviva Life Insurance establishing nine unit-linked plans, in line with the recent IRDA guidelines featuring enhanced and higher internal rate of return (IRRs). As per the data provided by the IRDA, the businesses of the life insurance companies had a growth of 22% at US$ 12 billion in April-November 2009-10, in comparison to the US$ 9.8 billion during the same period last year. Such a huge sale of single premium policies led the industry to record a raise of 53.25% in November 2009 alone. With the registration of IndiaFirst Life Insurance Company Limited, a joint stake life insurance company encouraged by Bank of Baroda and Andhra Bank of India and Legal & General Middle East Limited, UK, the total number of of life insurers registration with the Insurance Regulatory Development Authority (IRDA) has increased to 23. According to industry body, Life Insurance Council, The life insurance industry had earlier been anticipated to grow by 15% in the year 2009 - 10 and surpass the US$ 54.1 billion mark in total premium income by March-end. This growth in premium income includes new business as well as renewals, driven by increasing awareness on the value of getting insured. The US$ 41-billion Indian insurance industry made a grand return with better performances in the April-November 2009 period. Life insurance in India recorded the first year premium (inclusive of Single Premium) segment accounting to US$ 24 billion. Major Indian Life Insurance Companies In the public sector of the India life insurance, the Life Insurance Company of India functions solely. Some of the private companies operating in the life Insurance Sector are:

ICICI Prudential Life Insurance Birla Sun Life SBI Life Tata AIG Life Aviva Life InsurancKotak Mahindra Life Insurance Bajaj Allianz Life Ing Vyasya Life Insurance
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REFERENCES
Books Referred: Zikmund G. William- Marketing Research

Rao V.S.P- Human Resource Management

Magazines Referred: Business World Websites Referred: www.insurancemagic.com www.theconomictimes.com www.bimaguru.com

www.indianexpress.com

Executive Summary
The objective of the project was to do A COMPARATIVE STUDY ON SATISFACTION LEVEL OF COSTOMER USING LIFE INSURANCE PLAN OF SBI LIFE INSURANCE & KOTAK MAHINDRA IN DELHI &NCR for that we have to understand the customer needs, Income, constraints, response and emotions so that they can contribute their time for becoming Life advisors for the company. The objective of this study was to analyze consumer satisfaction of mechanical splicing in Delhi city with respect to the performance, sales effort and sales service. As the company was new and it was yet to be marketed to a large number of customers, it was essential to know the feedback of customers in order to formulate effective marketing and sales strategies in future and improve the quality of service to achieve better consumer satisfaction.

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

Questionnaire based on company format some attributes like requirement of customer and sales services offered by company were identified as critical (motivational) factors for providing satisfaction to consumers, while other factors like excisable deposit center, premium collocation was time to time and also intimation regaining before the collocation of premium. But absence of such hygienic factors definitely results in a dissatisfied consumer. These hygienic factors could result in selling but their absence can certainly unseal the product offering.

For this a questionnaire was prepared which gave a vague idea about the people who were really interested and wanted to know about various new opportunities in the insurance sector. Go through questionnaire in different different area and people in the Pune city. The study was undertaken for pune region during two months. The researchers were given first 15 days for collection of data and scanning the data. The questionnaire contains various aspects like there. Address, their present age, profession, number of dependents, Goals and also planning for old age (Retirement) etc. The second part of the study that consists of 40 days contains scanning the questionnaire and taking appointments. After that usually meeting the persons and tell them about the company. Most important part is analyzing the information The service industry is one of the fastest growing sectors in India Towards upwards are Telecom, Banking, and Insurance. These sectors really have a lot of responsibility towards the economy. Amongst the above-mentioned areas insurance is one sector, which took a lot of time in positioning itself. The insurance business of non-life companies was not much in problems but the major problem was with life insurance. Life Insurance Corporation of India had monopoly for more than 45 years, but the picture then was completely different. Previously people felt that A COMPARATIVE STUDY ON SATISFACTION LEVEL OF COSTOMER USING LIFE INSURANCE PLAN OF SBI LIFE INSURANCE & KOTAK MAHINDRA IN DELHI &NCR but now the picture is vice-versa. The story of insurance is probably as old as the story of mankind. secure themselves against loss and disaster existed in primitive secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years Life Insurance in its modern form came to India from England in the year 1818. Oriental

Life Insurance Company started by Europeans in Calcutta was the first life insurance
company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. started to take place. And this was the time when these companies started searching for proper channel partners who can help the organization in They are the link between the customers and the management or company. These channel partners are people with different profiles. They are selected on some grounds like their network The formation of IRDA, entrance of private life insurance companies into India with one foreign partner, compulsory training of Insurance agents etc. developments expanding its network and business in India. Channel partners are those who are going to be into direct selling of companys products i.e. the insurance policies of people, their problem handling ability, convincing power and lot man things.
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The main idea behind companys Questionnaire Survey is to find out and analyze the proper profile that can be recruited by company as a channel partner. Company has been focusing on some of the profile that can be very beneficial for the company. For example Chartered Accountants, Tax Consultants, Postal agents, Banks Daily Collection Agents etc. the main idea behind targeting the ab ove profile is strong client network which is really very important for an insurance company. The project title is A COMPARATIVE STADY ON SATISFACTION LEVEL OF COSTOMER USING LIFE INSURANCE PLAN OF SBI LIFE INSURANCE & KOTAK MAHINDRA IN DELHI &NCR . This shows the scope for private insurance companies have great opportunities to cover the market and can insure the customer. With the initiation of the deregulation in the Indian insurance market, the monopoly of big public sector companies in life insurance market has been broken. New private players have entered the market and with their innovativeapproaches and better use of distribution channels and technology they are eating in to the shares of established public sector companies in Indian Insurance Market. Since the deregulation has been put in to place, the market share of LIC has come down to 71.4% in life insurance market while the private players have captured around 17% market in the general insurance segment. This report includes the key private players in the insurance market such as ICICI Prudential, Kotak Life Insurance Bajaj Allianz, Birl Sun life, and TATA AIG. It also includes the leading competitors in the life insurance and general insurance segments along with their market shares.

10

INTRODUCTION

11

INTRODUCTION
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 retiren children s future needs. Today, the market offers insurance plans that not just cover your same time grow your wealth too. If you have dependants and financial responsibilities toward them, then you certainly need. Having a family means dependant, which in turn means financial commitments. Finance comes in the form of loans, children s education, medical expenses etc. Imagine what would happen if you were to lose your life suddenly or become disabled being insured in a situation like this is anecessity. When you insured your life, in effect what you are doing insuring your earning capacity that your dependents will be able to continue living without inancial 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 and SBI preferred Retirement plans such as income plan for kotak and SBI Multiplier plan. Most insurance plans available today have a bailt in saving elements.SBI and
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Kotak preferred Retirement plans meet your dual financial goals of life cover and savings for the future Collateral security.

Life wasnt 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.

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INTRODUCTION OF THE TOPIC

The purpose of this training was to have practical experience of working within the organization, in the filed of marketing and to have exposure to the important management practices in field of marketing.

While writing this report the language has been keep simple and the entire discussion has been logical and has coherent outlines. The main motto of the project work was A COMPARATIVE STUDY ON SATISFACTION LEVEL OF COSTOMER USING LIFE INSURANCE PLAN OF SBI LIFE INSURANCE & KOTAK MAHINDRA IN DELHI &NCR. It

includes through market Research in various plans of Kotak Mahindra and SBI Life Insurance. And in detail consumer (Satisfaction) responses analysis, by surveying number of consumers. The project report is divided into two parts, first part consists market research for finding out best sold plan of Kotak Mahindra Life Insurance, And second consist survey report of various consumers about there responses about satisfaction towards SBI Life Insurance Company and Kotak Mahindra Life Insurance Company.

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IMPORTANCE OF THE TOPIC

The project report is all about market research to find out best sold plan of SBI Life Insurance Company and Kotak Mahindra Life Insurance in DELHI & NCR. And to mouser the satisfaction level of consumers of SBI Life Insurance and Kotak Mahindra Life Insurance.

Market research helps SBI Life Insurance & Kotak Mahindra Life Insurance about the best plan purchased by its consumer satisfaction level helps to know wheather the consumers are satisfied by service/Plans of SBI Life Insurance and Kotak Mahindra Life Insurance.

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INDUSTRY PROFILE

16

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

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

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

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

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

F. The different MNC s company of foreign country enters in the insurance industry with the joint venture with Indian companies. Today total 11 private life insurance companies are working in insurance industry.

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Brief History of the Insurance Sector in India

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Comp However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life any started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the
18

purpose of looking after the needs of European community and these companies were not insuring Indian natives.

Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in- force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January 1956 that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non- Indian companies and 75 provident were operating in India at thetime of nationalization. Nationalization was accomplished in twostages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long-term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization
19

servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 Crores of New Business in 1957 the corporation crossed 1000.00 Crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with reorganization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LICs Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LICs ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.

From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.

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Some of the important milestones in the life insurance business in India are:
1850 Non life insurance debuts with triton insurance company. 1870 Bombay mutual life assurance society is the first Indian owned life insurer 1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956 24Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:

1907

The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957

General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

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1968

The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972

The General Insurance Business (Nationalization) Act,

1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms In 1994, the committee submitted the report and some of the key recommendations included. 1997 Insurance regulator IRDA set up

2000 IRDA starts giving licenses to private insurers: Kotak Life Insurance ICICI prudential and HDFC Standard Life insurance first private insurers to sell a policy 2001 Royal Sundaram Alliance first non life insurer to sell a policy 2002 Banks allowed to sell insurance plans.

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The Insurance Regulatory and Development Authority (IRDA)

The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned the insurance companies.

But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the

Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business).

The act extends to the whole of India and will come into force on such date as the Central Government may, by notification in the Official Gazette specify. Different dates may be appointed for different provisions of this Act.

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The Act has defined certain terms; some of the most important ones are as follows appointed day means the date on which the Authority is established under the act. Authority means the established under this Act. Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up by the Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996.

Words and expressions used and not defined in this Act but defined in the Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or the General Insurance Business (Nationalization) Act, 1972 shall have the meanings respectively assigned to them in those Acts

A new definition of "Indian Insurance Company" has been inserted. "Indian insurance company" means any insurer being a company (a) which is formed and registered under the Companies Act, 1956 (b) in which the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed twenty-six per cent. Paid up capital in such Indian insurance company (c) whose sole purpose is to carry on life insurance business, general insurance business or re- insurance business.

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FLOW OF Insurance Industry in India

Structure of Insurance Industry: Snap Shot Contribution to Indian Economy

Special Features

STRUCTURE OF INSURANCE INDUSTRY: Snap Shot Historical Perspective

(i) Prior to 1956 242 companies operating (ii) 1956 - 2001 Nationalization LIC monopoly player Government control (iii) 2001 -- Opened up sector

Industry
Snap Shot - Contd.
(a) LIC Fully owned by Government (b) Postal Life Insurance

Private players
1. Bajaj Allianz Life Insurance Co. Ltd. 2. Birla Sun Life Insurance Co. Ltd. (BSLI) 3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE) 4. ICICI Prudential Life Insurance Co. Ltd. (ICICI PRU) 5. ING Vysya Life Insurance Co. Ltd. (ING VYSYA)
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6. Max New York Life Insurance Co. Ltd. (MNYL) 7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE) 8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd. 9. SBI Life Insurance Co. Ltd. (SBI LIFE) 10. TATA AIG Life Insurance Co. Ltd. (TATA AIG) 11. Reliance Life Insurance 12. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA) 13. Sahara India Life Insurance Co. Ltd. (SAHARA LIFE) 14. Shriram Sunlam Other likely players PNB Life Insurance, Axa Bharti Enterprises.

Potential of the Insurance sector:

Total population Total population of Insurable class 1.1 billion 253 million

Total population insured

88.5 millions

Source: Financial Express-Delhi Market share: LIC Private Players 2001-02 98% 2% 2002-03 94% 6% 2003-04 87% 13% 2004-05 78% 22% 200572% 28%

Industry growth rate at 36% (2004-05) with premium income From new business.Source: Financial Express- Delhi

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Market Share
Company Indian Promoter Partner Foreign Insurance Market share based on premium 1.12 6.12 1.84

Aviva life
Bajaj Allianz

Dabur
Bajaj Auto

Aviva, UK Allianz Germany Sun Life Canada

Birla sun life

Aditya Birla group HDFC

HDFC Standard

Standard Life, UK

2.96

ICICI Prudentia ING Vysya

ICICI Bank Vysya Bank

Prudential UK

7.11

INGInsurance Netherlands 0.63

Kotak Mahindra Old Mahindra Bank Mutual

Old Mutual South Africa

0.71

Max New York MetLife SBI Life Tata AIG Tata

Max India

New York Life, US

1.32 0.40 1.52 1.78

Jammu & MetLife US Kashmir Bank SBI Tata Group Cardiff France AIG, US

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INSURANCE SECTOR REFORMS:

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

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

3) Regulatory Body - The Insurance Act should be changed

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

4) Investments Mandatory Investment of LIC Life Fund in government securities to be reduced from 75% to 50%. 5) Customer service
LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans.

Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of the insurance; industry should be opened up to competition.

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ENTRANCE OF PRIVATE PLAYERS IN INSURANCE SECTORS

India still has low insurance penetration of 1.95 percent, 51st in the world. Despite the fact that India boosts a saving rate of around 25 percent, less than 5 percent is spent on insurance. The insurance landscape in India is undergoing major changes. Close to foreign competition since nationalization in 1956, the life insurance industry had been protected from competitive pressures. Now, with the reopening of the sector, several new players have entered the scene.

The acronym for the Insurance Regulatory and Development authority of India, it overseeing the insurance business in India. It protects the interests of the policyholders received and ensures orderly growth of the insurance industry and for matters connected there thereto.

Beside SBI Life Insurance and Kotak Mahindra Life Insurance there are other 10 private players working in life insurance sector, which are as follows. Allianz Bajaj Life Insurance Company Ltd.
Allianz Bajaj Life Insurance Company Ltd. is a joint venture between Allianz AG (Largest insurer in Europe) and Bajaj Auto Ltd. incorporated on 12th march 2001.

AMP Sanmar Assurance Company Ltd.

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

Aviva Life Insurance Company Ltd.

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

.
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Tata Life Insurance Company Ltd.

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

ICICI Prudential Life Insurance Company Ltd.

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

Birla Sun Life Insurance Company Ltd.

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

HDFC Standard Life Insurance Company Ltd.

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

ING Vysya Life Insurance Company Ltd.

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

MAX New York Life Insurance Company Ltd.

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

Met Life India Insurance Company Ltd. It was incorporated in April 2001 as a joint venture between Met Life International Holding, Inc, Jammu & Kashmir bank, and M. Pallonji and company private Ltd.
31

COMPANY PROFILE

32

About SBI Life Insurance And Kotak Mahindra Insurance

Hierarchy of SBI Life Insurance:SBI Life Insurance, one of the leading insurers in India, is a joint venture between State Bank of India and BNP Paribas Assurance. While State Bank of India (SBI) is India's largest banking franchise, on the other hand, BNP Paribas Assurance is a unit of the renowned BNP Paribas one of the leading banks in Eurozone. SBI Life Insurance follows a unique multi-distribution model that encompasses corporate msolutions distribution channels, retail agencies, institutional alliances and bancassurance. It also uses the SBI Group as a platform to cross-sell insurance as well as banking product packages like personal loans and housing loans etc. SBI Life Insurance, with an authorized capital of ` 2,000 crores and paid-up capital of ` 1,000 crores, has become a substantial player in Indian insurance sector. The access to more than 100 million accounts of SBI has also acted as the driving force behind the success of the company. SBI Life Insurance also has an extensive network of agency channel where more than 68,000 insurance advisors work towards growth of the organization, offering door-to-door insurance solutions to the customers. In SBI Life Insurance, the State Bank of India holds 74% of the capital share, while BNP Paribas Assurance holds the remaining 26%. SBI Life is a joint venture between the State Bank of India and BNP Paribas Assurance of France. SBI Life is registered with an authorized capital of Rs. 2000 cr and a paid up capital of Rs. 1000 cr. State Bank of India owns 74% of the total capital and BNP Paribas Assurance the remaining 26%.

State Bank of India Group is the largest banking group having the unrivalled strength of over 15, 000 branches across the country, arguably the largest in the world. BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zones leading Bank. BNP Paribas, part of the worlds top 10 group of banks by market value and part of Europe top 3 banking companies, is one of the oldest foreign banks with their presence in India dating back to 1860. BNP Paribas
33

Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the Bancassurance and partnership model.

MISSION:
SBI Lifes mission is to emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalization period.

OBJECTIVE:
SBI Life Insurance Company Limited, hereinafter referred to as SBI Life invites proposals from interested participant(s) of repute for providing Centralized Mail room Services for their Central Processing Center.

SCOPE: 1.1 SBI Life is looking at a service solution that encompasses the following
activities/functionalities. 1.1.1. Setup full fledged off-site mail room within Navi Mumbai preferably 1.1.2. CBD Belapur with required manpower and infrastructure for inward and outward of all kinds of documents for SBI Life Central Processing Center. 1.1.3. Inward & Outward to be done on SBI Life Portal. Necessary IT Connectivity should be established by service provider as per SBI Life requirements. Service provider should also have capability to inward/outward on their own offline software wherever required. 1.1.4. Setup in-house mail room at SBI Life, CPC for coordinating of inward/outward

between SBI Life departments and off-site mail room and also for receiving the documents delivered at SBI Life office. 1.1.5. Logistics of pickup and delivery of documents from offsite mail room to

34

SBI Life departments at regular intervals during the day as per SBI Life requirements

Inward 1.1.5. Receipt of consignments from courier/Postal agencies

1.1.6. Tally with covering sheets and putting inward date stamps on each document 1.1.7. Report discrepancies to SBI Life CPC/Branches as per SBI Life requirements 1.1.8. Inward the documents segregate department wise/category wise and hand-over the documents as per SBI Life requirement with proper sorting and stapling wherever required. 1.1.9. Hand-over processed cases directly to Record Management Company against proper acknowledgement 1.1.10.Proposal forms or any other documents with multiple pages to be properly sorted and stapled wherever required

Outward
1.1.11. Collecting of Policies, documents from various departments

against acknowledgements 1.1.12. Stuffing into envelop wherever required as per SBI Life requirement 1.1.13. Prepare outward sheets wherever required 1.1.14. Outward the documents in the module 1.1.15. Hand-over to various courier/postal agencies and take acknowledgement

General
1.1.16. Coordinate with Courier/Postal agencies for day to day activities 1.1.17. Providing additional mailroom related services as per SBI Life requirement 1.1.18. Temporary storage of proposals/documents wherever required for handing over to record Management
35

1.1.19. Provide space for pick of documents by Record Management

Company and courier agencies. 1.1.20. All Hand-over/takeover to RMS/Courier agencies should be against proper acknowledgements 1.1.21. Provide daily MIS of inward/outward department wise/category wise to respective departments or SBI Life branches as per requirement. 1.2 SBI Life expects the participant(s) to provide end to end solution for the activities covered in the scope. The solution proposed should conform to the best industry standards and practices. 1.3 It shall be the responsibility of the participant(s) to ensure that they possess necessary skills, expertise, manpower, infrastructure, licences, approvals in case of any third party patents, trademark, copyrights, and intellectual property rights. Any statutory or regulatory approvals and compliances thereof shall be the sole responsibility of the participant(s). SBI Life shall not be a party to any violation of such titles by participant(s).

ELIGIBILITY
1.4 The interested participant(s)
1.4.1 Prior experience and proven capability in providing mailroom management services 1.4.2 Continuous profitability for last three completed Financial years(to be substantiated with summary of audited balance sheets) 1.4.3 Having fully functional operational facility in Navi Mumbai preferably in CBD Belapur. 1.4.4 Should have adequate, sustainable and trained manpower with complete skills. 1.4.5 Should be providing services of similar nature to BFSI sector entities.

36

RESPONSE TO RFP
1.5 The participant(s) should submit technical and commercial proposal in response to this RFP in a sealed and separate envelopes, super scribed as Technical Proposal and Commercial Proposal. 1.6 The technical proposal should contain information necessary to establish the credentials for the solution being offered by the participant(s). The information to be covered is indicated below. Necessary documentary evidence needs to be enclosed. 1.6.1 Brief Company overview 1.6.2 Management details including ownership pattern, share holding, Whether a listed company etc 1.6.3 Business performance during last three completed years along with Brief summary of audited financial results 1.6.4 Details of industry awards, recognitions, affiliations and certifications, if any 1.6.5 Information on the industry exposure, projects executed 1.6.6 List of existing clientele with overview of support provided on Projects undertaken for them of similar nature and nature and duration of Such projects 1.6.7 References from existing clientele 1.6.8 Address of facility in Navi Mumbai 1.6.9 Name, designation and contact details of the authorized official from The participant(s). 1.7 All pages of the proposal shall be initialed by the person(s) signing the Proposal.

1.8 The commercial proposal must contain the charges proposed in the Prescribed format only. The commercial proposal format is provided as Annexure I to this RFP. 1.9 All proposals and supporting documentation shall be submitted in English.
37

1.10 The cost should be quoted in Indian Rupees only exclusive of the Applicable taxes. Relative cost, cost as a percentage to some other factor is not acceptable in the commercial format. Tax Deduction at Source (TDS), as applicable, will be deducted by SBI Life. 1.11 The Commercial proposal is required to be submitted separately in a Sealed envelope and No other document should be submitted with the Commercial proposal. 1.12 In case the technical or commercial proposal is incomplete in any respect, SBI 1.14 The proposal received through fax, email or any other electronic media shall not be considered. 1.15 SBI Life shall not be responsible for non-receipt of proposal(s) within the specified date and time, due to any reason whatsoever. Proposals received after the stipulated time or incomplete in any respect will be summarily rejected. 1.16 SBI Life reserves the right to accept or reject any proposals without assigning any reason thereof and SBI Lifes decision in this regard will be treated as final. SBI Life also reserves its right to withdraw the RFP process at any stage without assigning any reasons thereof. No communication in any form shall be entertained in this regard. 1.17 The participant(s) must organize their response in accordance with the scope as specified in the RFP and under no circumstances extraneous information should be included in the proposals.

OPENING THE TECHNICAL PROPOSAL:

1.18 The technical proposals submitted shall be opened by SBI life for Evaluation purpose. Based on evaluation, short listed participants shall be called to demonstrate the proposed solution to Scope under this RFP. The commercial proposals of only those who qualify in the technical proposals shall be opened in the presence of their authorized representatives.
38

TECHNICAL PRESENTATION
1.19 Based on the proposals submitted and initial evaluation of the technical proposals, the participant(s) will be shortlisted and such short listed participant(s) may be required to present to SBI Life officials, the proposed solution and discussion on related processes in the form of a presentation/walkthrough as demonstration of process capability and service delivery. 1.20 The schedule for technical presentation, if required, will be intimated separately

OPENING THE COMMERCIAL PROPOSAL:

1.21 The opening of commercial proposals shall take place in the presence of the authorized signatories/representatives of the finally short listed participant(s) who will be required to sign a register / document evidencing their presence.

1.22 The schedule for opening of commercial proposals will be intimated separately to the participant(s).

EVALUATION CRITERIA
1.23 Only those participant(s) who qualify in the technical evaluation will be considered for commercial evaluation. The decision of SBI Life in this regard shall be final and binding. 1.24 SBI Life reserves the right to reject the proposals of any or all short listed participant(s), without assigning any reasons whatsoever. 1.25 SBI Life reserves the right to negotiate/re-negotiate the prices

39

with the selected participant(s). No communication in this regard shall be entertained by SBI Life in any form whatsoever.

CLARIFICATIONS
1.26 To assist in the examination, evaluation and comparison of proposals SBI Life may, at its discretion, seek clarifications from \ participant(s). The response / clarifications shall be in writing and no change in the prices or substance of the proposal shall be sought, offered or permitted. 1.27 Queries, if any, may be communicated through an email to [email protected]. The subject of the mail should be Queries on RFP - Centralized Mailroom Services . No other form of communication will be entertained.

40

MODIFICATION AND/OR WITHDRAWAL OF PROPOSALS

1.28 Proposals once submitted will be treated as final and no further correspondence for modification shall be entertained.

MATERIAL ALTERATIONS & AMBIGUOUS INFORMATION

1.29 The participant(s) should ensure that there are no cuttings, erasures or overwriting, illegible or undecipherable figures in the documents submitted. The proposals may be disqualified on this score alone. The decision of SBI Life is final and binding.

CONFIDENTIALITY & NON DISCLOSURE

1.30 The participant(s) shall be under obligation and binding of the confidentiality-cumnon disclosure undertaking to be submitted along with response to this RFP. The draft of the same is attached as Annexure II. The undertaking should be notarized and stamped as per the extant regulations.

EMPANELMENT OF SERVICE PROVIDER(S) & EXIT

1.31 Upon empanelment, participant(s) shall be required to enter into service level agreement. Such Service Level Agreement shall be initially for a period of three years and may be extended thereafter at mutually agreed terms and conditions. Such decision shall be at the sole discretion of SBI Life. 1.32 SBI Life reserves its right to empanel one or more than one participant(s) for the activity/activities proposed. 1.33 Empanelled participant(s) shall be required to put in place necessary security and all possible safeguards to maintain necessary confidentiality of data and/or information received in any form from

41

SBI Life. The empanelled participant(s) shall be required to submit the details of all safeguards in place at its facility before commencement of the proposed activity. 1.34 The service level agreement shall be on Principal to Principal basis. 1.35 The detailed terms and conditions governing the contract shall be included in the service level agreement. 1.36 The selected / empanelled participant(s) should provide satisfactory indemnities to SBI Life against possible financial and / or reputational loss arising due to, including but not limited to, loss of instruments in transit, fraud or misappropriation committed and costs arising due to misconduct of / by the representatives of such selected / empanelled participant(s).

RIGHT OF VERIFICATION
1.37 SBI Life reserves the right to verify any or all statements made by the participant(s) in the proposal documents and to inspect its facility or any other client site, if necessary, to establish about the participant(s) capabilities to undertake the required tasks. SBI Life reserves the right to inspect / audit any of the participant(s) offices, locations, software, hardware, etc, through its employees or nominated agencies. The participant(s) would have to co-operate and provide access to these units, systems, software, etc. The participant(s) will need to furnish the contact details of their existing clients as stated vide Point 1.8.7.

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INDEMNITY
1.38 The participant(s) shall indemnify SBI Life and keep indemnified against any loss or damage that SBI Life may sustain on account of any violation(s)/breach/infringement of intellectual property, confidentiality, privacy, patents, trademarks, statutory/regulatory guidelines/instructions etc., by the participant(s).

DISPUTES RESOLUTION
1.39 Any dispute or differences whatsoever arising between the parties out of or in relation to the construction, meaning, interpretation and operation or effect of these Proposal Documents or breach thereof shall be decided by SBI Life. Such decision by SBI Life shall be final and binding on the participant(s).

Annexure I Commercial Proposal Format

Sr.No 1. 2. Component Inward Processing proposal/document Unit Per proposal/document Per Policy/document Charges

Note Charges proposed should be in Indian Rupees (INR) Charges proposed should be exclusive of applicable taxes SBI Life shall deduct the TDS as applicable There shall be no minimum volume commitment. Courier/postal charges for dispatch shall be borne by SBI Life

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Hierarchy of KMOM Life Insurance Ltd.

Stock broking businesses in the UK. Kotak Group was established in 1985.Kotak Mahindra Bank is the parent company of the group. Kotak Group entered into the life insurance business in 2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc. (24%) Old Mutual plc.Is a world-Class international financial services company. It was

established in South Africa before 160 years.

OLD MUTUAL is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company serves 4 million life insurance policyholders and employs over 13 000 South Africans in its local operations. In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The companys US Life business recorded sales of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth management, through Gerrard as one of the leading private client.

The OLD MUTUAL Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups.

44

Mission:
At Kotak Life Insurance, we aim to help customers take important financial decisions at every
stage in life by offering them a wide range Of innovative life insurance products, to make them financially independent.

MANAGEMENT
MR. UDAY KOTAK is the CEO of the company . Other Top Management persons are as follows:Mr. Gaurang Shah (Managing Director)
Mr. Gaurang Shah is the Managing Director of Kotak Mahindra Old Mutual Life Insurance Limited. Mr. Gaurang Shah is a Chartered Accountant and a Cost and Works Accountant. He has also done his Company Secretary ship from the Institute of Company Secretaries of India. Mr. Gaurang Shah has been with the Kotak Group for the past eight years where he has held different positions of great responsibility and juggled multiple tasks effectively. His cumulative experience, primarily in financial services, stands at over 21 years, several of those in building the retail finance business. At Kotak Life Insurance, Mr. Shah will focus on developing new lines of businesses and leveraging the company's existing competencies and network to steer Kotak Life Insurance on its ongoing growth path with even greater thrust. Mr. Shah has a commendable expertise in managing a large number of employees.

Mr. Shah has been previously associated with Kotak Mahindra Primus since its inception and has contributed towards its growth to become a Rs.2000 Cr plus business. Before coming to Kotak Life Insurance, Gaurang Shah was Group Head of Retail Assets for Kotak Mahindra Bank. The Retail Assets include commercial vehicles, personal loans, structured products, car loans and loans against shares.
45

Mr. G Murlidhar (Chief Financial Officer)

Mr. Murlidhar is a Chief Financial Officer and Company Secretary of Kotak Life Insurance. Mr. Murlidhar is an associate member of the Institute of Chartered Accountants of India, an associate member of the Institute Of Company Secretaries of India, and graduate member of the Institute of Cost & Works Accountants of India. Mr. Murlidhar possesses over 20-year work experience and has earlier worked with National Dairy Development Board (NDDB), MDS Switchgear Limited and Nicholas Piramal India Limited and Ion Exchange Ltd. Prior to Kotak Life Insurance; he held the position of VP-Finance at Gujarat Glass Ltd. As Chief Financial Officer at Kotak Life Insurance, he oversees all aspects of Finance including Operations, Regulatory, Internal Control, Finance, Accounts and Treasury.

Mr. Nandip Vaidya (Vice President - Sales)

Mr. Nandip Vaidya is the Vice President - Sales at Kotak Life Insurance. Mr. Vaidya holds a B.Tech (Mechanical) degree from IIT Mumbai and has also completed his Post Graduate Diploma in Business Management from IIM-Ahmedabad. He started his career as a Management Consultant at A.F. Fergusson. After completing 5 years there, he moved onto various positions within the Kotak Mahindra group starting from Car Financing (Kotak Mahindra Finance Ltd) to Stock broking & Distribution of investment products/ Mutual funds (Kotak Securities). Mr. Vaidya set up the private banking business and private equity fund for the Kotak group.

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

Mr. Eksteen de Waal is the Sales Training Head of Kotak Life Insurance. He joined on secondment from Old Mutual South Africa for a period of two years. Eksteen is a post- graduate in Law and practiced Law as well as lectured at South African Universities before joining the Life Insurance Industry. He has over 23 years' experience in the Life Insurance Industry. He worked for Sanlam Life in South Africa for 3 years
46

before joining Old Mutual more than 20 years ago. Eksteen started with Old Mutual as a Legal Adviser and after that held various positions. He sold life assurance for some time, served as Head of Old Mutual's Training Division, Head of Old Mutual's Trust Company, Project Leader for implementing a new Sales Process with McKinsey's, Head of Conventions and Motivation, Head of Agency Marketing and finally Head of Banc assurance with Old Mutual Bank. In addition he played a role in the wider Industry. He was Vice-President of the South African Insurance Institute for two years as well as VicePresident of the Financial Planning Institute for three years. In this time Eksteen pioneered the introduction of the CFP qualification into South Africa. He has traveled widely during his career, working in the USA and England and also implemented Training Programme in Namibia, Zimbabwe, Malawi and Kenai. His current role is to substantially upgrade the level of Training and assist in the implementation of Performance Management Systems in Kotak Life Insurance.

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AREAS OF BUSINESS
Kotak Mahindra one of India's leading financial institutions was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Mr. Uday Kotak, Mr. Sidney A. A. Pinto and Kotak & Company. Industrialists Mr. Harish Mahindra and Mr. Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. It's been a steady and confident journey to growth and success.

In October 2005, Kotak Group acquired the 40% stake in Kotak FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM) held by Kotak Group. In March 2006, Kotak Group has agreed to buy 25% stake held by Goldman Sachs in KMCC and KS subject to regulatory approvals. Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of around Rs.2,000 crore and employs aroun6,000employees across its various businesses servicing around one million four hundred thousand customer accounts through a distribution network of branches, franchisees, representative officesand satellite offices across 216 cities and towns in India and offices in New York, London, Dubai and Mauritius.
48

KOTAK GROUP IS INVOLVED IN THE FOLLOWING AREAS OF BUSINESS:Kotak Mahindra Prime Ltd.
Kotak Mahindra Prime Limited (KMPL) is a 100% subsidiary of Kotak Mahindra Group (Kotak Group) formed to finance all passenger vehicles. The company is dedicated to financing and supporting automotive and automotive related manufacturers, dealers and retail customers. The Company offers car financing in the form of loans for the entire range of passenger cars and multi utility vehicles. The Company also offers Inventory funding to car dealers and has entered into strategic arrangement with various car manufacturers in India for being their preferred financier.

As on March 31, 2005, KMP has a retail distribution network comprising of 54 branches (including representative offices) covering about 100 locations in 17 states in the country and has a wide network of Direct Marketing Associates, brokers and agencies supporting the distribution network and servicing around 113,000 customers.

Kotak Mahindra Capital Company Ltd. Kotak Investment Banking* (KIB) is India's premier Investment Bank Kotak Investment
Banking (KIB) and Kotak Institutional Equities represent the securities business of the Kotak Mahindra Group **(KI), Kotak Investment Bank is a full service Investment Bank bringing to its clients the global reach and the local knowledge and skills of Kotak Mahindra. As a full service Investment Bank, Kotak Investment Bakings core business areas include Equity Issuances, Mergers & Acquisitions, Advisory Services and Fixed Income Securities and Principal Business. Its strength lies in understanding the clients' businesses backed by a strong research team and an extensive distribution network, which spans a wide variety of investors across the country. It is also the first Indian Investment
49

Bank to be registered with the Securities & Futures Authority in the UK (through our wholly owned subsidiary) and the National Association of Securities and Dealers in the USA. Its the first Indian Investment Bank to be appointed by the Government of India as a Co-lead Manager in their international divestment of Gas Authority of India Ltd through a GDR offering. Kotak Investment Bank today well positioned in an increasing globalize environment to provide full service to its clients based either in India or overseas.

Kotak Mahindra Bank Ltd.

Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited on November 2, 1985 and obtained its Certificate of Commencement of Business on February 11, 1986. It commenced operations with Bill Discounting and soon started other fund-based activities like corporate leasing & hire purchase, automobile finance and money market operations. Subsequently, it also entered the funds syndication and the Investment banking business.

Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company (KMAMC), a wholly owned subsidiary of KMBL, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started operations in December 1998 and has over 1, 35,000 investors in various schemes. KMMF offers schemes catering to investors with varying risk- return profiles and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.

International Subsidiaries
Kotak Mahindra International Limited (KMIL) is the international arm of the Kotak Mahindra Group and was incorporated in 1994 in Mauritius, with a branch in Dubai. Today the international operations also cover the United Kingdom, through Kotak Mahindra U.K. Limited and in the USA, through Kotak Mahindra Inc. USA. These companies are subsidiaries of Kotak Mahindra Capital Company (KMCC) the Investment Banking Division of the Group. Services offered include GDR and ADR trading and broking, debt syndication, placement of Indian securities and advisory services. Kotak Mahindra was the first Indian group to be registered with the Securities
50

and Futures Authority, U.K. Also, Kotak Mahindra is the first Indian group registered in the US providing service to both Institutional investors and High Net worth Clients in the US for their investments into Indian markets.

Kotak Securities
Kotak Securities Ltd., subsidiary of Kotak Mahindra Bank Ltd., is one of Indias largest brokerage and distribution house. Over the years Kotak Securities has been one of the leading investment service providers catering to the needs of various investor categories both institutional and non-institutional. The Private client group (PCG) of the Company provides value added investment advisory services to high net worth individuals, NRI investors, trusts, corporate and Banks. The investment product range offered by PCG covers equity investment and equity trading, equity derivatives, portfolio management, IPOs and Mutual funds. The Company has a full fledged research division involved in macro economic studies, sectoral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. Kotak Securities Ltd., Depository Participant with National Securities Depository Limited (NSDL) and Central Depository Services Ltd. (CDSL) provides dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them. Under the Portfolio Investment Scheme offered by the Company, the funds of the investors are managed by a highly competent team comprising of Equity Strategist, a Portfolio Manager and a team of equity, technical and derivatives analysts. Kotak Securities Ltd., also an Approved Intermediary under the Securities Lending Scheme, 1997, facilitates clients to borrow and lend securities.

51

KMOM THE PARTNERSHIP AND LINEAGE

A 26%-74% JOINT VENTURE BETWEEN

KOTAK LIFE INSURANCE

Brand equity Entrepreneurial employees Branch network Knowledge of the Indian market Access to customer base Distribution associates OLD MUTUAL PLC Domain knowledge Technology Product innovation Training expertise Global perspective System and processes Multi channel management
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Old Mutual was established more than 150 years ago. Old mutual plc. is a world-class international financial service company. It owns the largest companies in the following areas in South Africa. They are: 1. Life Insurance Company 2. Asset Management Company 3. Bank 4. Non-life insurance company It has been developed into an International financial services group whose activities are focused on asset gathering and asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. In the 2003 rankings of the World's 500 largest corporations by Fortune magazine, Old Mutual climbed 87 places to position number 366 and was also listed as the 14th largest insurance company in the world. Old Mutual is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company serves 4 million life insurance policyholders and employs over 13 000 South Africans in its local operations. In the USA, Old Mutual is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The companys US Life business recorded sales of $4 billion at the end of 2002. Operations in the United Kingdom are focused on wealth management, through Gerrard as one of the leading private client stock broking businesses in the UK. The Old Mutual Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups.

53

PRODUCTS

54

Products OF SBI Life Insurance And Kotak Life Insurance

SBI Life Insurance Products:range of health products. SBI Life Insurance offers an extensive range of

products to its customers. It has products for individuals as well as for the groups. It also offers a

Individual Products

Unit Lined Products

o o o o o o

SBI Life - Horizon II SBI Life - Unit Plus II SBI Life - Unit Plus Child Plan SBI Life - Unit Plus Elite Plan SBI Life - Smart ULIP SBI Life - MAHA ANAND

Pension Products
o o o

SBI Life - Horizon II Pension SBI Life - Unit Plus II Pension SBI Life - Immediate Annuity

Pure Protection Products

o o

SBI Life - Swadhan SBI Life - Shield

Protection cum Savings Products

o o

SBI Life - Scholar II SBI Life - Shubh Nivesh

Money Back Scheme Products

o o

SBI Life - Money Back SBI Life - Sanjeevan Supreme

For Brokers
o

SBI Life - SARAL ULIP

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Group Products

Group Employee Benefit Products

o o o o o o o o

Retirement Solution SBI Life - CapAssure Gratuity SBI Life - CapAssure Superannuation SBI Life - CapAssure Leave Encashment SBI Life - Dhanrashi SBI Life - Swarna Jeevan SBI Life - Swarna Ganga SBI Life - Kalyan ULIP

Group Protection Plans

o o o

SBI Life - Sampoorn Suraksha SBI Life - Credit Guard SBI Life - Suraksha Plus

Specialized Term Insurance

o o o

SBI Life - Shield Group Term with ROP SBI Life - Swadhan (Group)

Group Loan Protection Products

o o

SBI Life - Dhanaraksha Plus SP SBI Life - Dhanaraksha Plus LPPT

Group Savings Protection Products

o

SBI Life - Nidhi Raksha RP

Group Micro Insurance

o o

SBI Life - Grameen Shakti SBI Life - Grameen Super Suraksha

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Health Products

SBI Life - Group Criti9

Kotak Life Insurance Products

Term Plans
o Kotak Term Assurance Plan o Kotak Preferred Term Plan

Endowment Plans
o Kotak Endowment Plan o Kotak Money Back Plan o Kotak Child Advantage Plan o Kotak Capital Multiplier Plan o Kotak Retirement Income Plan o Kotak Premium Return Plan

Unit Linked Plans

o Kotak Retirement Income Plan (Unit-linked) o Kotak Safe Investment Plan II o Kotak Flexi Plan o Kotak Easy Growth Plan o Kotak Privilege Assurance Plan

Group
o Employee Benefits o Kotak Term Grouplan o Kotak Credit-Term Grouplan

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o Kotak Complete Cover Grouplan

Kotak Gratuity Grouplan

o Kotak Superannuation Group Plan

Rural
o Kotak Gramin Bima Yojana

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SURAT BRANCH

Branch manager

Assistant BM

Branch Operations In charge (BOE)

Sales Manager

Operation Executive

Assistant SM

Operations

Life advisor

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GROWTH

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SBI Life records 33% growth in profit at Rs 366 cr in FY'11

NEW DELHI: Leading private sector insurer SBI Life Insurance today reported a 33 per cent growth in net profit at Rs 366 crore for the financial year ended March 2011 on the back of increase in renewal premium income. "We continue to be profitable from operations side as we keep our expenses low. Bancassurance (bank channels) and agency force is helping us to sustain profits," SBI Life Insurance Managing Director M N Rao told PTI.

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SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance. SBI owns 74 per cent of the total capital in the JV and BNP Paribas Assurance holds the remaining 26 per cent. The total premium income of the insurance company during the fiscal grew by 28 per cent to Rs 12,912 crore. New business premium collection stood at Rs. 7,572 crore, a rise of 7 per cent over previous financial year. "We are moving aggressively on renewal business. With 74 per cent growth, our renewal premium collection rose to Rs 5,340 crore in FY'11 from Rs 3,063 crore in FY'10," Rao added. The persistency ratio of SBI Life rose to 69 per cent in FY'11, from 58 per cent last year. Also the Asset Under Management jumped by 40 per cent to Rs 40,163 crore at the end of March 31, 2011. The company added 135 branches during the fiscal. During the current financial year (2011-12), SBI Life would focus on optimising bank channel usage for product distribution. "We will focus on the bancassurance model. We plan to open 75 new branches by middle of June this year for which we have IRDA approval," he added.
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The company is also looking at increasing the workforce by up to 15 per cent during the current fiscal. We will increase the staff strength to about 8,250 from 7,300 at present. On plans of capital infusion, Rao said SBI Life is a well capitalised company and all expansions would be funded by internal accruals. "In the current fiscal we are targeting a 35 per cent growth in total business premium from Rs 12,912 crore at present. With this we will be able to fund all the expenses," Rao added.

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Kotak Life Insurance records 63% Growth in Q3

Mumbai, January 13, 2009: Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance) today announced a growth of 63 per cent in the First Year Premium (FYP) income for the Individual Business collected in the period April to December 2008. The Adjusted Premium Equivalent (APE), a standard measure in the Industry that takes Single Premium Income at 10 per cent, has grown from Rs. 486 crores in the period Apr-Dec 2007 to Rs. 788 crores in the period Apr-Dec 2008, a growth of 62 per cent. The Company also saw its Total Received Premium Income jump from 886 in Apr-Dec 07 to Rs. 1438 crores in Apr-Dec 08, a growth of 62 per cent. Commenting on the remarkable performance of the Company, Gaurang Shah, Managing Director, Kotak Life Insurance, said, It is very encouraging to see that Kotak Life Insurance continues to show consistent value-based growth in a challenging business environment. We will continue to build our distribution strengths along with innovative and customized products that deliver long term value to our customers. As pioneers and leaders in the Capital Guarantee space, we have further strengthened the category and introduced more options and features basis our customers needs. We believe our range of Capital Guarantee products will address the consumer concerns emanating from the current market environment. Key Highlights: First Year Premium Income for Individual Business jumps to Rs. 788 crores, a growth of 62 per cent Increases branch network to 197 branches across 128 cities in India Total AUM touches to 3374 crore The Company has a total capital base of Rs. 562 Crores.

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DATA INTERPRETATION AND ANALYSIS

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Personal detail

ANALYSIS Above diagram consist five classes of different age groups. Here customer 19 customer biloges to 25-35 age groups, 16 customers fall in the age group 35-45 years.

Other 8 customer comes are in the class 45-55 years the age group of 18-24 consists four customer reaming customer is in age group 55-65 years. Here majority of customer belong to the group 25-35 years.

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

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

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Which are the companies you invested your money for Life Insurance?

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

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Why did you choose Kotak Life Insurance?

ANALYSIS The above diagram shows 36% of respondents choose because of good returns, 30% because of peer pressure and remaining 24% opt. Because of tax benefit, safety and 100 premium respectively.

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Which of the following planed you is insured?

Note.

Some of customer are having more than one plan total survey customers are 50.

ANALYSIS From the total 63 respondents maximum i.e. 40% customers have opted for Flexi Plan, whereas 30% have gore for Retirement plans and remaining 30% have customer are having endowment, multiplier and child advantage respectively.

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What kind of services you expect from insurance provides

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

ANALYSIS Out of total 50 respondents 37% like to have bonus and other service as a prime concern, 13% like to have provision in case of dues and remaining 31% & 12%

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respondents say. They need time-to-time premium collection and easy accessibility to deposit center as a concern before choosing insurance provider. How will you rate the services given by Kotak Mahindra Life Insurance?

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

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What difference you find between Kotak & your previous Insurance Provider.

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

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Do have any suggestion for Kotak Mahindra Life Insurance? YES.. NO.

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

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

ANALYSIS

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

OBSERVATION AND FINDINGS

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

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

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

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

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BIBLIOGRAPHY
REFERENCES

BOOKS MAGAZINE Business & Economy Magazine COMPUTER WEBSITE

www.IRDA.com www.licindia.com www.hdfcinsurance.com www.businessindiaonline.com www.maxnewyorklife.com www.brandonline.com www.iciciprulife.com www.sbilife.co.in

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QUESTIONNAIRE

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QUESTIONNAIRE

1. Personal detail
Name:.. Age 18-24 ..25-35 35-45.. 45-55 ..55 and above Phone No Email.. Office Address: -. Residential Address: -. 2. Do you think is it essential to have Life Insurance? YES . NO.

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

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

5. Which of the following planed you is insured? a) Kotak Flexi plan b) Kotak retirement Plan c) Kotak Endowment Plan d) Kotak Capital Multiplier Plan e) Kotak Child Advantage Plan

6. What kind of services you expect from insurance provides

a) Easy access ability to Deposit Center b) Time to time premium collection c) Provision in case of Dues (Policy Lapse) d) Bonus & other schemes 7. How will you rate the services given by Kotak Mahindra Life Insurance? a) Poor b) Average c) Good d) Excellent 8. What difference you find between Kotak & your previous Insurance provider. a) Good Returns (HIGHEST) b) Effective Service/Liquidity c) Tax Planning
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d) Security/ Safety Benefit & Protection on your Capital 9. Do have any suggestion for Kotak Mahindra Life Insurance YES .. NO. 10. In future, will you purchase policies from Kotak Mahindra Life Insurance? YES. NO

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