PROJECT REPORT

KOTAK LIFE INSURANCE

Market research on kotak life advisors with respect to

their recruitment, selection, motivation and their scope in
insurance market.

NAKUL SINGH
08 BSDDU 0151
[email protected]

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Table of content

The report contains:

Page

 Acknowledgement 3
 Abstract. 4
 Brief history of insurance. 5
 IRDA 7
 Introduction of Kotak. 8
Kotak Mahindra and old mutual. 10
Kotak Mahindra group 11
 Vision. 13
 The project. 15
 Life Advisor. 16
Eligibility 19
Methods of recruitment. 20
Support by kotak. 21
Support by seniors. 25
 Prospect customers. 27
 Research methods. 27
Questionnaire. 32
 How do a life advisor work. 34
Sales process. 35
Problem faced. 36
 Motivation factors. 41
Major. 42
Other. 44

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 ACKNOWLEDGEMENTS

If words are considered to be signs of gratitude then let these

words convey the very same.

My sincere gratitude to Kotak Life for providing me with an

opportunity to work with Kotak Life and giving necessary
directions on doing this project to the best of my abilities.

I am highly indebted to Mr. Raman Dhawan Branch manager

and company project guide, who has provided me with the
necessary information and also for the support extended out to
me in the completion of this report and his valuable suggestion
and comments on bringing out this report in the best way
possible.

I also thank Mrs. Preeti Raj Trainer who has sincerely supported
me with the valuable insights into the completion of this
project.

I am grateful to our faculty guide Mr. Suresh Malodia of ICFAI,

Dehradun and my friends who have helped me in the successful
completion of this project.

I extend my heartfelt thanks to Mr. Ankur ABM to help me

during this project.

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 ABSTRACT
As we are in a competitive environment, a clear and detailed

understanding of consumer needs is vital to the development of strong

product positioning; our unique cultural mindset can often result in a set

of consumer needs that are quite different from those common in other

competitor products. Whether or not there are variations in insurance

products is purely of academic concern but what is of greater importance

to marketers is the issue of how to deal with people, for which

understanding the need of associates (Life Advisors) is vital.

It has been found from experience that the Life Advisors performance and

motivation are affected by factors such as commission, recommendation

of others, recognition program such as MDRT, COT etc, apart from other

qualitative variables.

The research project will focus on those factors which seem important

from the Life Advisors perspective. It will also, aim to formulate a

marketing strategy which the company can use to its advantage.

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 BRIEF HISTORY OF INSURANCE

The early history of insurance in India can be traced back to the Vedas. The
Sanskrit term ‘Yogakshema’ (meaning well being), the name of Life Insurance
Corporation of India’s corporate headquarters, is found in the Rig Veda. Some
form of ‘community insurance’ was practiced by the Aryans around 1000 BC. The
joint family system prevalent in India was an important form of social
cooperation.

Life insurance in its modem form came to India from England in 1818. The
Oriental Life Insurance Company was the first insurance company to be set up in
India to help the widows of European community. The insurance companies,
which came into existence between 1818 and 1869, treated Indian lives as sub-
normal and charged an extra premium of 15 to 20 per cent. The first Indian
insurance company, the Bombay Mutual Life Assurance Society, came into
existence in 1870 to cover Indian lives at normal rates. Moreover, in 1870, the
British Government enacted for the first time the Insurance Act, 1570. Other
companies, such as the Oriental Government Security Life Assurance Company,
the Bharat Insurance Company, and the Empire of India Life Insurance Company
Limited, were set up between 1870 and 1900.

The Swadeshi movement of 1905-07, the non-cooperation movement of 1919,

and Civil Disobedience Movement of 1929 led to an increase in number of
insurance companies. In 1912, the first legislation regulat-ing insurance, the Life
Insurance Companies Act, 1912, was promulgated. The growth of life insurance
was witnessed during the first two decades of the

twentieth century not only in terms of number of companies but also in terms of
number of policies and sum assured. Indian Insurance Year Book was published
for the first time in 1914.

The Insurance Act, 1938, the first comprehensive legislation governing both life
and non-life branches of insurance was enacted to provide strict state control
over insurance business. This amended insurance Act looked into investments,
expenditure, and management of these companies. An office of the Controller of
Insurance came into existence. The Controller of Insurance had wide-ranging
powers, which included directing, cautioning, advising, prohibiting, inspecting,
investigating, searching, seizing, prosecuting, penalizing, authorizing, registering,
amalgamating, and liquidating insurance companies.

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By the mid-1950s, there were 154 Indian insurers, 16 foreign insurers, and 75
provident societies carrying on life insurance business in India. Insurance
business flourished and so did scams, irregularities, and dubious investment
practices by scores of companies. As a result, the government decided to
nationalize the life assurance business in India. The Life Insurance Corporation of
India (LIC) was set up in 1956 to take over 245 life companies. The
nationalization of life insurance was followed by general insurance in 1972. The
General Insurance Corporation of India and its subsidiaries were set up in 1973.
Most of the powers of the Controller of

Insurance were taken away and vested in state-owned LIC and GIC for
operational convenience. These nationalized companies enjoyed monopoly for
decades. They did a commendable job in extend-ing the distribution network and
successfully handled a large volume of business. But with only 20 per cent of the
population insured there was a vast potential untapped. Besides, as a sequel to
the reform process and to tap the insurance sector as a source of long-term
funds, the government decided to introduce reforms in the insurance sector.

The Government set up, in 1993, a committee under the chairmanship of R N

Malhotra, the former insurance secretary and RBI governor to evaluate the
Indian insurance industry and recommend its future direction. This committee
submitted its report in 1994 and suggested the re-opening up

of the insurance sector to private players. This sector was finally thrown open to
the private sector in 2000. The Insurance Regulatory and Development Authority
(IRDA) was set up in 2000 as an autonomous insurance regulator. The
government has entrusted IRDA with the responsibility for carrying out the
reforms in this sector.

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 INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY

The Insurance Regulatory and Development Authority (IRDA) was constituted as

an autonomous body to regulate and develop the business of insurance and re-
insurance in India. The Authority was constituted on April 19, 2000, vide
Government of India’s notification No. 277.

The Insurance Regulatory and Development Authority Act, 1999, was enacted by
Parliament in the fifti-eth year of the Republic of India 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. The Act was
approved in the Parliament in December 1999 and the insurance sector was
thrown open for private licensees on August 15, 2000. IRDA was constituted in
terms of the Insurance Regulatory and Development Authority Act, 1999, as the
regulator of the Indian Insurance industry.

IRDA was set up in 1996 but it was formally constituted as a regulator of the
insurance industry in April 2000. The regulator was initially known as the
Insurance Regulatory Authority but was subsequently rechristened as Insurance
Regulatory and Development Authority as it was provided that it had a broader
role to perform in the Indian insurance market. It has not only to frame and
issue statutory and regulatory stipulations, guidelines, and clarification but it has
also to perform a developmental and promotional role. The developmental and
promotional role of the regulator include facilitating the growth of the market by
attracting large number of players, integrating of the insurance market with the
domestic financial services

Market, and synchronizing the Indian Insurance market with that of global
insurance market. Thus, the objectives of IRDA are twofold: policyholder
protection and healthy growth of the insurance market.
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KOTAK
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.

Kotak Mahindra Old Mutual Life Insurance

Kotak Mahindra Old Mutual Life Insurance Kotak Mahindra Old Mutual Life
Insurance is a joint venture between Kotak Mahindra Bank Ltd., its affiliates and
Old Mutual plc. The company is one of the fastest growing insurance companies
in India and has shown remarkable growth since its inception in 2001.

A 26%-74% JOINT VENTURE BETWEEN

KOTAK MAHINDRA AND OLD MUTUAL

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About Kotak Mahindra Group
Kotak Mahindra group is one of India’s leading banking and financial services
organizations, first NBFC to become a bank , offerings across personal financial
services, commercial banking, corporate and investment banking and markets,
stock broking; asset management and life insurance. The Kotak Group employs
around 20,000 people and has over 1,350 offices across 370 cities and towns in
India. Kotak have 150 branches in 84 cities, Kotak also has offices in London,
New York, San Francisco, Singapore, Dubai and Mauritius.

About Old Mutual Plc

Old Mutual plc is an international savings and wealth management company
based in the UK. Originating in South Africa in 1845, it is among the top 50
largest companies in the FTSE100. The group has a balanced portfolio of
businesses offering Asset Management, Life Assurance, Banking and General
Insurance Services in over 40 countries, with a focus on South Africa, Europe and
the United States, and a growing presence in Asia Pacific. Old Mutual plc employs
approximately 53,000 employees worldwide and is listed on the London and
Johannesburg stock exchanges.

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About Kotak Mahindra Old Mutual Life Insurance
Kotak Mahindra is in business since 1985, and insurance part of their business
came into existence in the year 2001.

Evolution of Insurance business in Kotak Mahindra business is like this:-

As stated above Kotak Mahindra Life Insurance has Joint venture with Old Mutual
plc. Old Mutual Plc is the 12th largest Insurance Company in the world. It has its
base of over 4 million life assurance policyholders. It has one of the best
“Payouts” among insurers in the world. It has one of the best “Solvency Ratios”
among insurers in the world. A FTSE
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100 financial services group and ranks as a Fortune Global 500 company. The Old
Mutual group manages in excess of 239 billion pounds in funds (Dec’06). The
company is 160 years old and has prominent presence in the United States and
the United Kingdom.

Kotak Mahindra Group

Kotak Group and Mahindra Group had their partnership 1985 between Uday
Kotak and Mr. Mahindra.
Now the question arises that why for the business in India of life insurance Kotak
Mahindra chose Old Mutual plc and vice versa.

Features of Kotak Mahindra and Old Mutual plc at a glance

Structure of Kotak Life Insurance:-

MANAGING DIRECTOR MR. GAURANG SHAH

CFO G. MURALIDHAR
V.P TRAINING AND MANAGEMENT DEVELOPMENT MR. ARUN PATIL
V.P HR MR. SUGATA DUTTA
V.P DISTRIBUTION DEVELOPMENT AND PLANNINGMR.-KAMLESH VORA
APPOINTED ACTUARY JOHN BRYCE

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Its hierarchy in Kotak Life Insurance is like this

MARKETING TEAM STRUCTURE

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VISION
Kotak Life Insurance has a deep rooted commitment to improve he
quality of life of its customers, employees and stakeholders. We aim at
improving the long term value in our relationship by continuous
innovation and improvements.

 Global Indian Financial Services Brand.

 Indian Understanding: Global Standards of Delivery.

 Most Preferred Employer/Business Partner.

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 Home for Bright Minds and entrepreneurial skills.

 Most trusted financial services company.

 High standard of compliance corporate governance.

 Value & not just size.

 Business driven with both value and growth in mind.

Increase Customer Value

Kotak Life Insurance has gone to the heart of its customer's requirements and
developed products which are unique and serve the customer needs perfectly.
We built a relationship of mutual trust and benefit to serve the Indian customer.
At Kotak Life Insurance the customer always comes first.

 Cohesive Work Environment

We form long-term partnership with our employees by offering them an
invigorating work experience. We not only demand loyalty, sincerity and values
but also give it back in equal measures. Kotak Life Insurance will like to offer its
employees space to grow, innovate and build a long-term career.

 Work with Honor

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Kotak Life Insurance delivers everyday services in the marketplace with the
high sense of duty and commitment. Our employees strive to build the long-term
value for all those come in contact with Kotak Life Insurance. Our consumers,
distributors, employees, shareholders and the nation have our commitment that
we will uphold the values of trust, integrity and a Sense of h honor in every
thought, act and deed I n order to positively contribute to individual, society
and nation growth.

THE PROJECT
The project will include study of complete functionality of the life advisors at
kotak the research will include…

 How they market to create the life advisors in kotak?

 What is the eligibility to be a life advisor?

 Training given to them, how they earn.

 What motivates them?

 Who are the prospects of becoming a life advisors.

 How the company generates business through them.

The life advisors are at lowest hierarchy in the system and are key to the success
of the company as they are the one who bring business. The main motive of the
company is to increase the numbers of life advisors in the company for that the
company must have policies which attracts the people to take life advisor as a
profession.
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OBJECTIVES

1. The project will focus on the study the methods of recruitment, selection
and motivation of the advisors.
2. To find possible flaws in the system which are hindering the smooth
functionality of the life advisors and their problems.
3. To study the awareness in public for this job.

LIFE ADVISOR

Life Advisor is a person in commercial law who has the authorization to act for
the principal to make a relationship legally with those who want to insure
themselves through life insurance policies. A Life Insurance Policy allows a
certain amount of money as the insurance payment to the family members of the
person who has died. Normally in a life insurance deal there are three parties
who remain involved; the insurer, the policy holder and the insured. Normally the
insured and the policy holder are the same . People who are interested in making
Life Insurance policies generally contact Life Insurance Agents to get hold of all
the relevant information about the respective Life Insurance Company he wants
to take cover under.

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A life advisor in short is:

 A business man making others financially and emotionally secure

 A licensed representative providing need based advice and services to
customer
 An entrepreneur supported by a company through product, training and
services

LIFE INSURANCE COMPANY AGENT'S DUTIES

The Life Insurance Agent normally has some specific duties to go through. This
duty includes assembling with new people, getting information about their likes
and dislikes and their present status and providing them with adequate
information about their life insurance policies and products. The main aim of a
Life Insurance Agent is to sell his company's life insurance policies. The Life
Insurance Agents also alerts the insurance holders about the premium payment
dates. It also updates the policy holders about changes in rates and polices of the
companies.

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The duties of life advisor in short are:

 Creates a network of customers relationship through own contacts and

referrals.

 Achieves the above through.

 Meeting prospective customers.

 Understanding their needs- insurance &investments.

 Providing suitable solutions and products.

 Handling their questions and objections.

 Closing the sale.

 Providing continuous services.

 Generating referrals.

One can find two types of Life Insurance Agents Such as

 Independent Life Insurance Agent

Independent Life Insurance Agents help the potential Life Insurance Holder by
exploring the most suitable Life Insurance Policy in terms of money and facilities.
He can work for more than a single life insurance company and gets his benefit
by means of the commission from the premium and also the monthly salary that

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the life insurance company provides.

 Direct Life Insurance Agent

Direct Life Insurance Agents can serve for a single company at a time and is
allowed to sell the respective company's policies only. They are also paid through
fees from the company and the commissions depending on the number of
policies they have succeeded in selling.

Not everybody can become a Life Insurance Agent as one needs to pass in the
insurance examination and acquire a license from the state to get the eligibility
to sell life insurance policies. A good Life Insurance Agent is someone who keeps
record of everything and his client as much as he can in the days of need.

ELIGIBILITY
Life advisors are those sources of a company who have their own relations and
personal contacts among common public that they use to generate business
through.
Company has certain criteria to recruit these Life advisors. The requirements are
as follows.

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1. He should be a graduate.

2. He should complete IRDA training.

3. He should clear the IRDA exam.

4. He should through successfully the exam and training.

Some other criteria

1. He should have good personal contacts.
2. He should have convincing power.
3. A wide social network.
4. Good interpersonal skills.
5. Desire to meet people.

Once he through all these steps of recruitment, he becomes the legal Life
advisors of the company and reserve the right to sale the policy to any prospect
client also he is paid the commission a certain percentage. There are some
reward and tour package also.

METHODS OF RECRUITMENT

 The main method of recruitment in kotak as a life advisor is through

referrals, the existing life advisors search for the people in their circle and guide
them to be life advisors.

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 The sales managers source their primary market for their recruitment.
 Similarly agents also source their primary market.
 Canopies are placed for awareness and recruitment.
 Corporate presentations are arranged for different employees for extra
income benefits.
 Pitch those who are already in multilevel marketing.

When a person who is interested in becoming a insurance agent then he/she

needs to go through the process.
The process include
1. The training for the IRDA examination.
2. The IRDA examination.
3. Training.

Job Profile of life agent

As a Life Advisor ones role would go beyond selling policies. our role would be to
explain life insurance and its benefits to potential customers and help them
decide which plan suits them best after analyzing their financial needs. Hence,
life insurance offers you with an opportunity for:
• An exciting / challenging career.

• Flexible work hours.

• Unlimited income.

• Regular incomes for years till the policies sold by you are in force.

SUPPORT AND BENEFIT PROVIDED BY KOTAK.

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 Enriching training program: An intensive training program before you
commence your new career. This would equip you with all the information and
knowledge about life insurance, its benefits and our products. This would help
you perform your job better and meet your goals. You would also enjoy the
benefits of continuous training and mentoring programs that are designed to
update you, apart from enhancing your selling skills.

Kotak provides a well planned learning cycle shown below

THE LEARNING CYCLE

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PRE LICENSING

The pre licensing is sub divided into following phases.

LEARNING PHASE

The learning phase include.

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SKILLS

The skill training phase

Leading phase

This phase helps the advisor to plan and lead himself that what he/she wants to
achieve in future.

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 Mentoring: Training and support from the Company to meet your goals.
Opportunity to learn from industry professionals.

 Flexibility: Decide you own working hours and earning goals.

 Satisfaction: You will help people manage their assets and plan their
financial security, and experience deep satisfaction from making a positive
difference in others lives. You act as a strategist in annuities, business insurance,
estate planning and personal investment, providing both short and long term
solutions to financial risks.

 Freedom: Continue with your present job occupation if you so desire and
treat this as a parallel source of income. This allows you time to decide if you
want to take the job of a Life Advisor as a full time activity.

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 Earnings: Entitlement to a percentage of the premium as commission till
the time the policies sold by you are in force.

 Attractive additional benefits for high-performers: Palmtops, Planners,

Leather portfolio C Offsite conferences, Foreign trips and Sales promotional
schemes.

 The career: the life advisor can go for career advancement for many posts
like SM, BM, Regional V.P, National V.P, Trainer, Chief manager (training), Head
training etc.

SUPPORT BY THE SENIORS

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27
WHO CAN BE THE PROSPECT CUSTOMERS

To find the exact data about the peoples who can be the potential customers I
have prepared a questionnaire which will focus on the people who want to earn
extra money by becoming an insurance agent. A well-structured questionnaire is
prepared and personal interviews will be conducted to collect the customer`s
perception of insurance as business, through this questionnaire.

The details of resource of the data are:

Sampling Unit:
The respondents who will be asked to fill out questionnaires are the sampling
units. These comprise of employees of MNCs, Govt. Employees, Self Employed
etc.

Sample size:
The sample size is restricted to only 100, which comprised of mainly peoples
from different regions of Delhi due to time constraints.

Sampling Area :
The area of the research is New Delhi, India.

LIMITATIONS

1. The research is confined to a certain parts of Delhi and does not necessarily
shows a pattern applicable to all of Country.
2. Some respondents were reluctant to divulge personal information which can
affect the validity of all responses.
3. In a rapidly changing industry, analysis on one day or in one segment can
change very quickly. The environmental changes are vital to be considered in
order to assimilate the findings.

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RESEARCH METHODOLOGY HAS FOLLOWING STEPS:

Step: 1 To decide the objective of the study.

Step: 2 To decide research design.
Step: 3 To determine the source of data.
Step: 4 To design data collection form.
Step: 5 To determine sample size and sample design.
Step: 6 To organize and conduct fieldwork.
Step: 7 To process and analyze the collected data.

Step 1

OBJECTIVES OF RESEARCH PROJECT:

Primary Objectives

 To recruit more and more Life advisors and to promote the benefits those
are
provided by Kotak life to its Life advisors
 To find the different way of recruiting and selecting the Life advisors who
can produce more and fruitful results.
 To study awareness of the Kotak life insurance

Secondary Objectives:

 To determine the need and purpose of Life advisors

 To understand the deciding criteria for people to become Life advisors
 To collect and analysis the information of prospect candidates in order to
make them appear in front of management so that they can be selected as Life
advisors
 To offer suggestions based upon the findings.

Step 2

TO DECIDED THE RESEARCH DESIGN.

What is research design?
Research design is a plan, structure, strategy of investigation conceived so as to
obtain answer to research question and control variance. There are three types of
research design system.
 Explanatory Research.
 Descriptive Research

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 Casual Research.

Among the above mentioned types descriptive research design has been chosen.
Descriptive research is to find ad efficient sales force, of LA. In order the study
the characteristics and variables, cross sectional analysis was conducted by
using field survey method . In the process of field survey, a questionnaire was
developed and circulated to the respondents, which formed the basis for entire
research.

Step3
These comprise of employees of MNCs, Govt. Employees, Self Employed etc.

Step4

To design data collection.

There are two types of mode to collect the data:-
• Observation method.
• Survey method.
As for as the data collection method for this project is concerned, designing the
data collection forms or survey forms is applicable to the project. The method
selected survey method.
A survey can be conducted by:-
• Personal interview.
• Telephonic interview.
Amongst the above method personal interview method was conducted to gather
information in detail. This method was chosen because along with the study of
projects primary objective i.e. study of people and convince them to join as life
advisors for kotak life .

Step5
The adequate sample size would be 100

Step6
The data is collected.
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Step7
1. Age wise distribution

2. Gender wise classification

3. Members in family

1. Income wise classification

2. Number of members having insurance.

3. Number of people who already holds license.

4. The people who want to be an agent.

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Findings

 According the survey only 59 % people are insured in Delhi so reaming

other part is potential for insurances sector.

 Out of the 84 people who do not have license 25 would like to be a life
advisor.

QUESTIONNARE

Dear Sir/Madam,
I am a student of IBS DEHRADUN and presently doing a market survey. I request you
to kindly fill the questionnaire below and I assure you that the data generated shall be
kept confidential.

1. Your Age: ____________________

2. Education Qualification.
· Undergraduate □
· Graduate □
· Post graduate □

3. Marital Status.
· Married □
· Single □
If married no. of Children: __________

4. Number Of members in family.

· 2-4
· 5-8
·8+

5. Occupation.
· Business □
· Profession □
· Service □
(Please mention below the type of business/profession you are in incase of service
please mention your organization name and designation)

6.Your annual household income.

· <than 2 lack □
· Between 2 to 5 lack □
· Between 5 to 8 lack □
· >than 8 lack □

7.Are you a member of a club/gymkhana?

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· Yes □
· No □
If yes, Name of the club /gymkhana_______________________________________

8. What is your perception about insurance sector?

· Hard &lucrative □
· Hard but not rewarding □
· Smooth &rewarding □
· No idea □

9. Do you know about KOTAK LIFE?

· Yes □
· No □

10. Do you have any insurance policy?

· Yes □
· No □

11. If yes name insurance company?

Which is it?
Company’s Term Endowment Whole Money Retirement Child ULIP
name plan life back Plan
LIC
ICICI Prudential
Birla Sunlife
SBI Life
HDFC Standard
Life
Bajaj Alliance
TATA AIG
Kotak Mahindra
ING Vysya
Max Newyork
Met Life
Reliance
Shri Ram
Sahara

12. Do you hold any license of any insurance company?

· Yes □
· No □
If yes, please specify which company________________________________________
Reason______________________________________________________________

13. Are you satisfied with the company?

· Yes □
· No □
Reason specify_________________________________________________________

14. Do you know about KOTAK LIFE INSURANCE recruitment policies related to financial
consultant?
33
· Yes □
· No □

15. Will you be interested to become Life advisor?

· Yes □
· No □

16. Would you like to earn an additional income through a business opportunity with
KOTAK LIFE?
· YES □
· NO □

17. If yes, how many hours in a week can you commit for this business opportunity?
_____________________

Date: Signature
Thank You

HOW DO LIFE ADVISORS START WORK

The work of the life advisor

As a life advisor to start finding the suspect customer is the main part advisors
need to focus on the people who they know to get the credibility for this job.
These people are called prospects.
For this they follow a step by step procedure as follows:
 Making a list of names without any thought as to whether the person will
buy the policy or not.
 How many people can you remember and list down?
 How are they related to you?
 Friends
 Relatives
 Brother / Sisters
 Cousins
 Uncle
 Aunts
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 Colleagues
 Neighbors
 Clients of last company
 Write Down the professions they belong to.
 Classify them on basis of
 Just retired
 Divorced
 Had a Child
 Engaged / just married
 New Home
 Graduated

Now they have a list of prospect customers and can start working.

SALES PROCESS

The sales process of the life advisor, a life advisor have the following questions
and the one which have the best answer to these question has the potential to
win the race.

35
PROBLEMS FACED BY THE LIFE ADVISORS

These are some of the objections faced by the life advisors in handling the
clients.
The advisors needs to do a lot of homework before the approach which will be
explained later.

36
The common approaches to handle the objections

37
38
Critical steps to be taken
This approach will definitely help to reduce the objections made by the clients.

39
Closing the meeting

This is the crucial part of the meeting where the result of the meeting will be out.

40
MOTIVATION FACTORS

Kotak Life Insurance has made this program and designed various stages in it for
different levels of Life Advisors.

The whole Reward and recognition program of Kotak is known to Kotak Life
Advisors is “MY KOTAK LIFE”

Rewards and recognition has 5 levels

It has been found from experience that the Life Advisors performance and
motivation are affected by factors such as commission, recommendation of
others, recognition program such as MDRT, COT etc, apart from other qualitative
variables.

41
Major motivation factors:

Major motivational factors are those for which a life advisor works. These are.
1. Commission.
2. Fascination by the recognition program such a MDRT, TOT, 51 club & COT etc.
3. Career growth.

Commission formula

My Kotak life is the theme that is opted by the KOTAK for its employee
CPI = FOS*% active * Average case size * Average case rate
CPI: Cash Premium Income

FYP: i.e. First Year Premium excluding the renewal premium is CPI of the
company.

FOS: Feet on Street. Sales are source of it and source of sales is Life
Advisors.

% active: It is that how many policies the life Advisors have sold or in a
better manner we can say that active is the one who sells at least one
policy in a year.
Average Case Size: TOTAL PREMIUM / no. of policies
(Focus of Kotak Life much lies on this only)
Average Case Rate: Total policies/ No. of Active Life Advisor

AVERAGE CASE SIZE is the one on which whole reward and recognition
program is actually designed, whether it is MDRT, TOT, COT or 51 club.

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Recognition programs
MDRT (Million dollar round table), COT, Club51, TOT these are some of the world
renowned recognition programs by which many of the insurance agents gets
fascinated.

Career growth
The life advisor can go for career progression. the image below shows the career
the life advisor can get into.

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A life advisor can choose the track to any of the fields shown above.

Other motivational factors

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1. Contests – company organizes different contest for the life advisors as the
reward and recognition programs these contests gets them recognition in the
workplace and motivates them to do more.

1. Rewards – the rewards are given to the advisors on the basis of the
business they get into the company the prize list is shown.

3. Appreciation - The star of the month is selected in every branch of the

company and posters are made to appreciate the advisor.

4. Success stories - success stories are published in the vouchers and booklets to
motivate people to do more and achieve what others have done.

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 REFERENCES

 Normal course of working

 Internet web site- www.kotaklifeinsurance.com

 Internet website- www.censusofindia.org

 Internet website- www.irdaindia.com

 Training sessions conducted for Company Product

Training.

 Survey Conducted on Life Advisors

 Business India

 KOTAK BROUCHERS

 KOTAK REPORTS

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