A REPORT On

Potential of Life insurance Industry in Surat Market

Under the Guidance of

COMPANY GUIDE

Mr. Jignesh Madhwani

TABLE OF CONTENTS
Contents Acknowledgements List of Tables List of Illustrations/Diagrams Executive Summary Chapter 1: introduction Objective Limitation Research Mythology Data Collection Chapter 2: Life Insurance Industry Industry profile important milestones in the life insurance business Insurance sector reforms IRDA Chapter 3: Contribution of Life Insurance Industry Contribution of Life Insurance in the Economy Flow of Insurance Industry in India Structure of life Insurance Industry Life Insurance industry Aggregation of Long Term Savings Spread of financial services in rural Areas Long term funds for infrastructure Development of Capital Markets/Economic Growth Employment generation Special Features Growth Potential Phase of transition Chapter 4:Company Profile Management Area of Business KMOM progress till date KMOM-the partnership and Lineage Products Hierarchy of KMOM of Surat branch Chapter 5: Survey Data interpretation , editing and coding Graph analysis Chapter 6: Finding and Suggestion Chapter 7: Conclusion Chapter 8: References Page No. 5 6 7 9 10 15 17 19 22 23 24 29 31 32 36 36 37 40 41 42 43 44 45 46 47 47 49 51 56 65 66 69 71 72 73 73 83 84 85

Chapter 9: Annexure

86

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Acknowledgement
In preparation of this report by me, I feel great pleasure because it gives me extensive practical knowledge in my career. I get idea about Indian Life Insurance Industry by this project.

I express my deep sense of gratitude to My Company Guide Mr. Jignesh Madhavani for his valuable guidance during my project work. I

also like to all staff of Kotak Life Insurance who guide me in project work.

I am thankful to Mr. Vikas Singh (Faculty Guide) for valuable inspiration and guidance provided me through out the course of this project. They have patient and critically gone the subject matter.

I would like to take opportunity to express my gratitude towards all of them who have contributed directly or indirectly in my project work.

Chirag Patel List of Tables

Name of Tables Page no 38 Potential of Life Insurance sector 38 Market share of LIC and all private player 39 Individual Market share of Insurance company 41 Total asset of Life Insurance companies 41 Total premium generated

 The future premium income Generated will be Untimely death benefit to policy holder in the past Age vise classification Gender wise classification Income wise classification No of member having insurance How many person having insurance in family Different policy bought by customers Fully insured and under insured persons Market share of different life insurance policy

41 44 73 74 75 76 77 78 79 80

List of Illustrations/Diagrams Name of Illustrations/Diagrams

Kotak : Area of Business Age vise classification Gender wise classification Income wise classification No of member having insurance

Page No
57 73 74 75 76

 How many person having insurance in family Different policy bought by customers Fully insured and under insured persons Market share of different life insurance

77 78 79 80

Chapter 1:

Introduction

Executive Summary
The service industry is one of the fastest growing sectors in India today. The upcoming sectors which are really showing the graph 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 Insurance is only for classes not for masses but now the picture is vice-versa.

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 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 United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. 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.

The formation of IRDA, entrance of private life insurance companies into India with one foreign partner, compulsory training of Insurance agents etc. developments started to take place. And this was the time

when these companies started searching for proper channel partners who can help the organization in 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. 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 of people, their problem handling ability, convincing power and lot many things. 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 above profile is strong client network which is really very important for an insurance company. The project title is Potential of Life Insurance Industry in Surat Market. 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 innovative approaches 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, Birla Sun life, and TATA AIG. It also includes the leading competitors in the life insurance and general insurance segments along with their market shares.

Chapter 2

Objective Limitation Methodology Data collection

1. Objective:
The main of the present study of is accomplish the following objective.

Proper understanding and analysis of life insurance industry.

To know about brand awareness of Kotak Life Insurance and customers preference about Kotak Life Insurance.

Conduct market survey on a sample selected from the entire

population and derived opinion on that research.

According the market survey come know about how much

potential of insurance market in our city.

And

base on analysis of the result thus obtained make a

report on that research. Training aims at recruiting maximum number of Life Advisors and to Sell the maximum policies for the company and bring the business for the company which ever is going at the particular point of time. Along with it I will be gaining the thorough knowledge of insurance sector. This will give me in more confidence in marketing products given to me. As the Kotak Life Insurance well reputed company in India its great chance for me to observed different products launch

by other competitor companies like ICICI prudential, Bajaj alliance ,LIC, Max New York life etc. In all, it is to understand the overall working of the Life insurance sector. The objective behind the project is as follows: To find the right candidate. To about their family background, occupation, social relation, Qualification, Age. Finalize candidates for the IRDA training

5: Limitation:

Some of the difficulties and limitations faced by me during my training are as follows:
Lack of awareness among the people This is the biggest

limitation found in this sector. Most of the people are not aware about the importance and the necessity of the insurance in their life. They are not aware how useful life insurance can be for their family members if something happens to them.
Perception of the people towards Insurance sector People still consider insurance just as a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the end of the financial year like January, February and March making the other 9 months dry for this business. Insurance does not give good returns Still today people think that Insurance does not give good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by most of the Private sector players. They are still under the perception that if they take Insurance they will get only 5-6% returns which is not true nowadays. Nowadays most of the modern Unit Linked Insurance Plans gives returns which are many times more than that of bank Fixed deposits, National saving certificate, Post office deposits and Public provident fund.

 Lack of awareness about the earning opportunity in the

Insurance sector People still today are not aware about the earning
opportunity that the Insurance sector gives. After the privatization of the insurance sector many private giants have entered the insurance sector. These private companies in order to beat the competition and to increase their Insurance Advisors to increase their reach to the customers are giving very high commission rates but people are not aware of that. Increased competition Today the competition in the Insurance sector has became very stiff. Currently there are 14 Life Insurance companies working in India including the LIC (life insurance Corporation of India). Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market. This situation has created a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy has became very very difficult.

RESEARCH METODOLOGY

Research always starts with a question or a problem. Its purpose is to question through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Marketing research is the function which links the consumer, customer and public to the marketer through information- information used to identify and define marketing opportunities and problems generate, refine, and evaluate marketing actions, monitor marketing actions, monitor marketing performance and improve understanding of market as a process.

Marketing research specifies the information required to address these issues, designs, and the method for collecting information, manage and implemented the data collection process, analyses the results and communicate the findings and their implication.

I have prepared our project as descriptive type, as the objective of the study demands the answers of the question related to find the potentiality of life insurance in Surat: How much potential is there in Surat?

The Marketing Research Process

As marketing research is a systemic and formalized process, it follows a certain sequence of research action. The marketing process has the following steps: Formulating the problems Developing objectives of the research Designing an effective research plan Data collection techniques Evaluating the data and preparing a research report

There are two types of data collection method use in my project report. Primary data Secondary data.

For my project, I decided on primary data collection method for observing the managers of the insurance company to know how the process work is done and also make questionnaire for creating database of the keyman insurance business.

I decided on Secondary data collection method was used by referring to various websites, books, magazines, journals and daily newspapers for collecting information regarding project under study.

DATA COLLECTION
After the research methodology, research problem in marketing has been identified and selected; the next step is together the requisite data. There are two types of data collection method primary data and secondary data.

In our live project, we decided primary data collection method because our study nature does not permit to apply observational method. In survey approach we had selected a questionnaire method for taking a customer view because it is feasible from the point of view of our subject & survey purpose. We conducted 200 sample of survey in our project.

Chapter: 3

Industry profile: important milestones in the life insurance business

Insurance sector reforms The Insurance Regulatory and Development Authority (IRDA)

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 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.

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 the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate 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. Reorganization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It

worked wonders with the performance of the corporation. It may be seen that from about 200.00 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.

Some of the important milestones in the life insurance business in India are:

1850Non 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 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, 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 all classes of general insurance business.

transact 1957

General Insurance Council, a wing of the Insurance Association

of India, frames a code of conduct for ensuring fair conduct and sound business 1968 practices.

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.

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 2000

Insurance

regulator

IRDA

set

up

IRDA starts giving licenses to private insurers: Kotak Life

Insurance ICICI prudential and HDFC Standard Life insurance first 2001 private insurers to sell a policy

Royal Sundaram Alliance first non life insurer to sell a

policy 2002 Banks allowed to sell insurance plans.

Chapter: 4
Contribution of Life Insurance Sector in the Economy FLOW OF Insurance Industry in India STRUCTURE OF INSURANCE INDUSTRY: Snap Shot Industry Aggregation of Long Term Savings Spread of financial services in rural Areas Long term funds for infrastructure

Development of Capital Markets/ Economic Growth Employment generation Special Futures Growth Potential Phase of transition

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 (ii) 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) 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 (iii) 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 millions

Total population insured

88.5 millions

Source: Financial Express-Delhi.

Market share:

2001-02 2002-03 LIC 98% Private 94%

2003-04

2004-05

200506 72%

87%

78%

Players 2%

6%

13%

22%

28%

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

Market Share
Company Indian Promoter/ Partner Market share based on premium Dabur Aviva, UK 1.12 Bajaj Auto Allianz, 6.12 Germany Aditya Sun Life, 1.84 Birla Canada group HDFC Standard 2.96 Life, UK ICICI Prudential, 7.11 Bank UK Vysya ING 0.63 Bank Insurance, Netherlands Kotak Old Mutual 0.71 Mahindra South Bank Africa New York 1.32 Foreign Insurance

Aviva life Bajaj Allianz Birla sun life HDFC Standard ICICI Prudential ING Vysya

Kotak Mahindra, Old Mutual Max New Max India

York MetLife

Sahara Life Insurance SBI Life Tata AIG

Jammu & Kashmir Bank Sahara India SBI Tata Group

Life, US MetLife, US None

0.40

0.80

Cardiff, France AIG, US

1.52 1.78

CONTRIBUTION TO INDIAN ECONOMY

(i) Life Insurance is the only sector which garners long term savings (ii) Spread of financial services in rural areas and amongst socially less privileged (iii) Long term funds for infrastructure (iv) Strong positive correlation between development of capital markets and insurance/ pension sector (v) Employment generation

Aggregation of Long Term Savings

(i) Total Assets of Life Insurance Companies

2002-2003 2,80,450Cr 2003-2004 3,52,608Cr 2004-2005 4,23,000 Cr

(ii) Total Premium generated

2002-2003 57,708 Cr 2003-2004 66,278 Cr 2004-2005 79,000 Cr

(iii) Industry is growing @ 19 p.a.

(iv) At this growth rate, the future premium income generated will be
2005-2006 94,000 Cr 2006-2007 1,12000 Cr 2007-2008 1,33,000 Cr

(v) Life Insurance funds account for 15% of household savings. (vi)The industry has the potential to increase the share to 20%.

Spread of financial services in rural areas and amongst socially underprivileged

IRDA Regulations provide certain minimum business to be done (i) In rural areas (ii) In the socially weaker sections Life Insurance offices are spread over nearly 1400 centers. Presence of representative in every tensile deeper penetration in rural areas. Insurance agents numbering over 6.24 lakhs in rural areas. Policies sold in rural areas (2004-05) - No. of policies - 55 lakhs Sum assured 46,000 cr Social security - No. of lives covered 2003-04 17.4 lakhs 2004-05 42.1 lakhs

Long term funds for infrastructure

For GDP to grow at 8 to 10%, qualitative improvement in infrastructure is essential. Estimates of funds required for development of infrastructure vary widely. An investment of 6, 19,600 crore is anticipated in the next 5 years (Source : SSKI India) Tenure of funding required for infrastructure normally ranges from 10 to 20 years. Major portion of these funds are routed through debt/private equity participation

Development of Capital Markets/ Economic Growth

Industry also contributes in economic development through investments in capital market. Present level of investments is over Rs. 40,000 crore. (Mark to Market basis around 80,000 Crores). Annual Investment of around 9000 Crores in capital markets. Contribution to Five Year Plans9th Plan 2, 30,900 Crores Last Two Years 1, 70,900 Crores Helps inculcate a sense of security by protecting earning of people in case of untimely death. Benefits to Policy Holders 2002-2003 20,800 Cr 2003-2004 24,200 Cr 2004-2005 28,700 Cr

EMPLOYMENT GENERATION
Life insurance industry provides increased employment opportunities. Employees in insurance sector as on 31st March, 2005 is around 2 lakhs. Many agents depend on insurance for their LivelihoodNo. of agents on 31st March 2004 15.59 lakhs Brokers, corporate agents, training establishments provide extra employment opportunities. Many of these openings are in rural sectors.

SPECIAL FEATURES
Tax clubbing of various savings short term and long term into same bracket have a bias towards short term savings. Distinction between the short term savings and long term savings is critical from investors point of view. More prone to inflationary pressures Clearly, long term savings more than 10 years deserve special consideration under tax regime.

GROWTH POTENTIAL
At present insurance penetration in India is quite low 2.26% of GDP.

PHASE OF TRANSITION
Life Insurance industry is under the phase of infancy after 50 years of monopoly Competition from within and other sectors of financial market Needs environmental support till it reaches a comfort zone

Chapter: 5
Company profile Management Areas of Business KMOM- Progress till date KMOM- the Partnership and Lineage Products Hierarchy of KMOM Life Insurance Ltd. (Surat Branch)

COMPANY PROFILE
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.

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.

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 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 Vice-President 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.

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.

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