Final Report Sip

Final Report on Summer Internship Training

(Kotak Life Insurance)

Submitted in Partial Fulfillment of Post Graduation Course In Master of Business Administration

Submitted to:

Submitted by:

Ms. Neha Mehra

Rakhi R Pillai

(Faculty Guide)

(8NBJD017)

INC Ajmer

INC Jodhpur

Final Report on Summer Internship Training

(Kotak Life Insurance)

Submitted in Partial Fulfillment of Post Graduation Course In Master of Business Administration

Submitted to:

Submitted by:

Ms. Neha Mehra

Gourishankar

(Faculty Guide)

(8NBJD022)

INC Ajmer

INC Jodhpur

Final Report on Summer Internship Training

(Kotak Life Insurance)

Submitted in Partial Fulfillment of Post Graduation Course In Master of Business Administration

Submitted to:

Submitted by:

Ms. Neha Mehra

Guddi Devi

(Faculty Guide)

(8NBJD021)

INC Ajmer

INC Jodhpur

Final Report on Summer Internship Training

(Kotak Life Insurance)

Submitted in Partial Fulfillment of Post Graduation Course In Master of Business Administration

Submitted to:

Submitted by:

Ms. Neha Mehra

Divyaprakash

(Faculty Guide)

(8NBJD010)

INC Ajmer

INC Jodhpur

Acknowledgement I would like to give sincere thanks to all those who have helped me in some or other way for preparation of my report.

Ms. NEHA MEHRA my faculty guide INC Ajmer is always there for the assistance and directs me whenever I was in need of it. I am happy to get her guidance and her sharp supervision on my Summer Internship report. I would also appreciate the esteem guidance & supervision provided by Mr. Deepak Tanwar (Marketing Head Kotak Life Insurance Jodhpur) my company guide and also Mr. Prashant Pidhwa, Sales Manager Kotak Life Insurance, Jodhpur by way of their valuable suggestion provided during the course of my project

I am sincerely thankful to all those who directly or indirectly helped me in completion of this assignment report.

Table of content



Acknowledgement



Objective



Company Profile



Introduction



Recruitment of Advisor



Target & Task



Strategy Adopted



Analysis of Variance



Problem and Limitations



Learning from Executive Training



Awards and Rewards



Suggestion



Conclusion



Bibliography

Objective 1)

Proper understanding and analysis of life insurance industry.

2)

Training aims at recruiting maximum number of Life Advisors and to bring the business for the company whichever is going at the particular point of time. 1. To understand the insurance business and products of Kotak life insurance.

2. 3. 4. 5. 6. 7.

To find out the people’s perception about life insurance. To find out whether people were really aware of life insurance. To find out how people think about private life insurance. To find out what respondents expect from life insurance To understand Consumer buying behavior To come out with conclusion and suggestions based on the analysis and the Interpretation of data.

COMPANY PROFILE:-

Kotak Mahindra Life Insurance Established in 1985 as Kotak Capital Management Finance promoted by Uday Kotak the company has come a long way since its entry into corporate finance. It has dabbled in leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc. The company got its name Kotak Mahindra as industrialists Harish Mahindra and Anand Mahindra picked a stake in the company. Kotak Mahindra is today one of India's leading Financial Institutions. Old Mutual Old Mutual plc is an international financial services group based in London with expanding operations in life assurance, asset management, banking and general insurance. Old Mutual is listed on the London Stock Exchange (where it is included on the FTSE 100 Index) and also on the South African, Namibian, Malawi and Zimbabwe stock exchanges. It has 158 years of experience in the life insurance business. OM Kotak Mahindra OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd., and Old Mutual plc to enter the Indian insurance arena to offer a wide range of innovative life insurance products. Kotak Mahindra Old Mutual Life Insurance is a 74:26 joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001. KMOM is the coming together of Kotak Mahindra Finance Ltd., and Old Mutual plc to enter the Indian insurance arena to offer a wide range of innovative life insurance products. Established in 1985 as Kotak Capital Management Finance promoted by Uday Kotak the company has come a long way since its entry into corporate finance. It has dabbled in leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc. The company got its name Kotak Mahindra as industrialists Harish Mahindra and Anand Mahindra picked a stake in the company. Kotak Mahindra is today one of India’s leading Financial Institutions. Old Mutual plc is an international financial services group based in London with expanding operations in life assurance, asset management, banking and general insurance. Old Mutual is listed on the London Stock Exchange (where it is included on the FTSE 100 Index) and also on the South African, Namibian, Malawi and Zimbabwe stock exchanges, with assets under management worth $ 400 Billion as on 30th June, 2006. For customers, this joint venture translates into a company that combines international expertise with the understanding of the local market.

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 company’s US Life business recorded sales of $4 billion at the end of 2002. Operations in the United Kingdom are focused on wealth management, through Gerrard as one 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. Arun patil is the Vice President – Sales & Management Development with Kotak Life Insurance. A post graduate with Law qualification, he has over 25 years’ of experience in life insurance industry. He joined as a direct Recruit Officer in L.I.C and worked in various department such as sales, marketing, I.T, publicity and housing and Branch Administration all across the country. On foreign deputation to fuji islands for 5 yrs, Mra. Patil substantially increased the market share of L.I.C in competitive environment. After heading LIC’s premier Mumbai division, he then joined ICICI ltd as a member of insurance venture team and later worked for ICICI prudential Life Insurance as Head of Sales Development. Mr. Patil presently has responsibilities of the sales force, with special emphasis on developing all managers to enhance their competencies, capabilities & managerial effectiveness.

INTRODUCTION

Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current. With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. Together with banking services, it adds about 7 percent to the countries GDP. In spite of all this growth statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation “Malhotra Committee” was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many changes. The liberalization of the industry the insurance industry has never looked back and today stand as one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run. Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management –which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction.

Insurance is the method of spreading and transfer of risk. The fortunate many who are exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the assets but only

compensates the economic or financial loss. In insurance the insured makes payment called “premiums” to an insurer, and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is usually drawn up in a formal legal contract. Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful they may earn large profits, even if the insurance company pays out in claims every penny received as premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their cost of float. An insurance contract or policy will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums. Classification of insurance The insurance industry in India can broadly classified in two parts. They are. 1) Life insurance. 2) Non-life (general) insurance.

1) Life insurance: Life insurance can be defined as “life insurance provides a sum of money if the person who is insured dies while the policy is in effect”. In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated and amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened the insurance sector for private participation in 1999, also allowing the private companies to have foreign equity up to 26%. Following the

opening up of the insurance sector, 12 private sector companies have entered the life insurance business. Benefits of life insurance Life insurance encourages saving and forces thrift. It is superior to a traditional savings vehicle. It helps to achieve the purpose of life assured. It can be enchased and facilitates quick borrowing. It provides valuable tax relief. Thus insurance is found to be very useful in the lives of the person both in short term and long term. Fundamental principles of life insurance contract; 1) Principle of almost good faith: “A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk being proposed whether requested or not”. 2) Principle of insurable interest: “Relationships with the subject matter (a person) which is recognized in law and gives legal right to insure that person”.

2) Non-life (general) Insurance: Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907 . there emerged many a player on the Indian scene thereafter. The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance business.

The Insurance Regulatory and Development Authority (IRDA):

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDA’s online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.With the demographic changes and changing life styles, the demand for insurance cover has also evolved taking into consideration the needs of prospective policyholder for packaged products. There have been innovations in the types of products developed by the insurers, which are relevant to the people of different age groups, and suit their requirements. Continued innovations in product development has resulted in a wide range of flexible products to meet the requirements for cover at different stages of life -today a variety of products are available ranging from traditional to Unit linked providing protection towards child, endowment, capital guarantee, pension and group solutions. A number of new products have been introduced in the life segment with guaranteed additions, which were subsequently withdrawn/toned down; single premium mode has been popularized; unit linked products; and add-on/riders including accidental death; dismemberment, critical illness, fixed term assurance risk cover, group hospital and surgical treatment, hospital cash benefits, etc. Comprehensive packaged products have been popularized with features of endowment, money back, whole life, single premium, regular premium, rebate in premium for higher sum assured, premium mode rebate, etc., together with riders to the base products.

“RECRUITMENT OF ADVISOR”

OBJECTIVES To recruit the Advisor from different localities of jodhpur. Profiles involved knowing: Demographic background, Educational background, Experience background, and Industry background. To identify successful Advisor and study their success patterns.

Identifying involved: Setting Success Parameters of Advisors. Measuring the Business Performance with Business Parameters.

Recruitment:Recruitment is carried out through screening interview, where the candidate’s qualitative aspects like experience in the insurance sector, team management skills, socializing qualities, influencing capabilities are considered and rated according to one’s personally and communication skills. On induction in to the company as Advisor, Candidates have to pass through three stages a brief description is given below:

TRAINEE STAGE:Advisors who are at this level are undergoes in training for a period of 15 days, as follows: -

General Training

:

7 days

Product Training

:

7 days

Total Training Period

:

15 days

Duties and Obligations:Advisors shall Life Insurance business in a planned manner through Unit Manager under Supervision by the company, and in consonance with the objectives of the company. Advisors shall render policy to the customer to their Satisfaction. Advisors shall ensure that they conduct their work/business in accordance with the provision of the code of conduct laid down by the IRDA and in accordance with the rules and regulations that may be laid down by the company and the IRDA time. The minimum business targets, which ADVISORS are required to achieve during 1 year is 12 Policies on different lives.

Target or Tasks Assigned During Executive Training

 To recruit 18 PHF within 13 weeks and making a calls daily to convince unknown customers and to meet 5 peoples daily.

Strategies Adopted I have adopted a multi dimensional strategy for achieving my targets. The strategy revolved around various activities like telecalling, Direct questionnaires, market research/surveys , field work etc. Prior to adopting these strategies I have prepared a database of different clients through personal references and also databse of unknown clients provided by company. I called up different persons and invited them to become the client of my company Kotak Life Insurance by selling policy with me.

Schedule Contact the customer

Through telecalling

Through personal calling Convincing the customer about the services

Following the customer

Convincing to become an Advisor

Providing complete information regarding benefits

Questionnaires method: helped me a great deal in expanding and strengthening customer relations database , thus speeding my effects towards achieving my targets. The sample

questionnaire is given on next page which I and my co- management trainees have used in canopy session.

QUESTIONNAIRE

Dear Sir/Madam, I am a student of ICFAI National College Jodhpur, conducting a marketing survey. I request you to fill this questionnaire & I assure that this data will be used only for study purpose & it will be kept confidential. 1.

Name

2. Address 3.

_________________________________ _________________________________ ________________________________

Age a. Less than 25 b. 25 – 35

c. 35-45 d. 45 and above

4. Qualification a. Graduate b. Postgraduate 5. Occupation a. Business b. Professional

c. Diploma d. Other discipline

c. Job holder d. Other

6. What is your average annual income? a. Up to 1 lakh b. 1 lakh to 3 lakhs c. 3 lakhs to 5 lakhs d. 5 lakhs and more 7. Your family size a. Below 5 members b. 5 – 10 members c. Above 10 members

8. According to you life insurance is, e. A tax saving plan f. A saving scheme with good return g. A financial security for the family h. Risk coverage i. All the above 9. Have you taken any life insurance product of ICICI Prudential Life insurance? YES NO If yes 10. Which are in these? j. Unit gain plan k. Invest gain plan l. Whole life plan m. Children plan n. Pension plan o. Others __________________ 10. Are you aware of the benefits in your policy? Yes

No

If yes what are they?    

Sum assured Additional benefits Maturity date Risk coverage

11. According to you what are the disadvantages in an insurance plan?       

Lapsation Liquidity Fixed term Unable to decide your premium Unable to decide the sum assured High risk coverage at high premiums Other disadvantages

12. In which of the following would you like to invest?

     

Equity fund Debt fund Balanced fund Cash fund Mutual fund Recurring deposits

13. Any suggestion for ICICI Prudential Life Insurance ______________________________________________________ ______________________________________________________

Thank you for sparing your valuable time

Operational Design In order to record the responces of the respondents a questionnaire was constructed and they were approached during the “Canopy Session” and “Market Survey” in various locations of jodhpur. The Canopy Session were undertaken for the following reason: •

Brand recognition

•

Wide public awareness

•

Furnishing a rich database to tap the market potentials

•

Direct interaction with the masses who could be the propects for the companies’ product and services.

•

To target basically the middle and lower income groups

•

Knowing the worth of a particular location in terms of business generation.

•

Beating the time constraint.

While canopy session supported the above mentioned objectives, “Market Survey” was done to cover the that segments of market which could not be covered during the canopy session; the upper-middle and the higher end of the market. During this course a personal interactiob facilitated data-collection and the views of people were known. Following locations were selected for canopy session in Jodhpur: •

Sardarpura

•

Shastri Nagar

•

Housing Board

All these locations proved to be in tapping prospects from both the business and salaried class also including the students, housewives and unorganized sectors.

Analysis of Variance There is no change in my given target. It’s the same target to recruit 18 in 3 months i.e. from 27th March to 27th June .

Problem and Limitations Problem: During this whole training period in this 3 months I have faced problem in convincing a customer , its too hard to convince them to become an advisor. At the month of June company have given the strict instruction that now customer should be 30 and above in age less then that it would not be login as advisor so, this was the another problem I have faced

Limitations:

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.

Learning from Executive Training

Through this Executive training I have learnt many things like: Interpersonal skills: The main objective but important is to cultivate the interpersonal skills of student engaged in summer internship program. The training is given by the company guide to the SIP interns. In this I have learnt about corporate etiquettes and developed faith in organization Learnt corporate environment practically: The most important thing in executive training is to learn practical corporate environment so that the intern can aware of the practical look in the company. For example in industries we learn its working culture, environment, and to satisfy the customer Telephone etiquettes: during this training I have learnt telephone etiquettes that is how to make a call , how to talk to customer, time limit as there is a time limit for each and everty call that is 1 or 1 and half minute. Have to be carefull regarding voice modulation it should not be too high nor too low etc etc And many more things I have learnt from this executive training like: •

I properly understood the working environment

•

Got aware of marketing process like telecalling. Online and personal marketing

•

Properly understood the complete insurance industry

•

Learnt about IRDA its process.

•

Learnt about recruitment process in Kotak Life Insurance

In short I have get the real life experience of the corporate world.

SUGGESTIONS

Based on the Research findings following suggestions can be made. Advisor should be in regular touch with his /her Unit Manager. Advisor should be attending the meeting regularly. Advisor should visit office regularly and update the knowledge. A structure layout for growth opportunities for Advisors should be developed within the organization. The Advisors who achieve the targets should be rewarded with additional monetary and non-monetary benefits. Promote and motivate the inactive Advisors. Do work in challenging form. Provide the technique how to work in the field. Brochures and Product Plans required in Hindi Version. Advisors also allowed to office in absence of Unit Manager. Branch Manager also takes direct feed back from the advisors. Advisors Party should be quaterly and Gift distribution in that seminar. Mobile Phone should be in vibration mode in office time.

Conclusion •

One of the good company in Insurance sector.

•

Company products are very good and better then competitors

•

Focusing in product and services

•

Comfortable environment while working here specially who working here as management trainees like me

•

For development of employees there are many plans like 51 club memberships, achiever of the month and many plans.

•

This organization provides many facilities to their employees as well as management trainees

•

The employees in this organization is adequately qualified and motivational level is high