Kotak draws up big life insurance plans

Kotak Mahindra Old Mutual Life Insurance Limited (KMOMLIL) is targeting 100 per cent growth in its first year premium income (FPI) in 2006-07.

"The company has posted more than 100 per cent growth in its FPI in 2005-06 at Rs 349 crore. We are expecting to maintain similar growth in 2006-07," said Subhasis Ghosh, vice-president, Kotak Mahindra Old Mutual Life Insurance Limited.

The total premium income for the year stood at Rs 640 crore, thereby registering annual growth of 40.96 per cent.

The company was expecting this figure to go upto Rs 1,100 crore in 2006-07, said Ghosh. The average premium size was around Rs 22,000, said Ghosh.

The claim ratio has remained significantly low for the company, noted Ghosh.

"There has been 650 claims made in the last five years with claim amount settled at Rs 10.34 crore," he said.

"We will be taking up our agents base to 25,000 this year from current figure of 12,000," said Ghosh.

At the same time, the company will be expanding its base to additional 24 locations, including three in the east, namely Jamshedpur, Tinsukia and Jorhat.

Currently, the company operates out of 43 cities, including two in east - Kolkata and Guwahati.

The company will be adopting 'cluster' approach for enhancing its market penetration.

"We will be adopting cluster approach and develop the market. Gujarat will be our prime focus as there are many cities in close proximity. It will be the followed by Punjab and Karnataka," he explained.

The company will also adopt the same approach in the eastern region.

"Our base in Jamshedpur will help us to develop the Ranchi and Rourkela market whereas Asansol base will help to cater to the Durgapur and Dhanbad market," Ghosh noted.

The company was expecting to launch around four to five new products with lower charges, he added.