Kotak Mahindra Life Insurance Company Limited (Kotak Life) has announced a bonus of Rs. 591 crore to eligible participating policyholders for FY 2020-21. This is an increase of 41% over the bonus declared for FY 2019-20.
The bonus is applicable to traditional (with profit) policies and is the allocation of surplus generated under the With-Profits fund of the Company to With-Profit Policyholders. Bonuses declared in each financial year are accrued and paid out at the time of maturity or exit and cash bonus or special one off bonuses will also be paid out on specific policy events as per policy conditions.
Further, Kotak Life ranks among the best in the industry in all persistency buckets for both – premiums and the number of policies for FY 2020-21. Kotak Life has achieved 13th month persistency ratio (i.e. the first renewal premium) of 89.61% on a premium basis, which is a growth of 4.70% over FY2019-20. On number of policy basis, Kotak Life achieved a persistency ratio of 83.42%, a y-o-y growth of 2.68%.
Mahesh Balasubramanian, Managing Director, Kotak Mahindra Life Insurance Company Ltd. said, “As a life insurance company, our promise to our customers is to be there for them always. We are pleased to announce an increase in the bonus declared and help support our customers during these incredibly tough times. Our customers, in turn, have demonstrated their loyalty – which can be seen in the high persistency ratios of the company. Our persistency ratio is reflective of our regular engagements with our customers across various stages of the policy lifecycle. During the pandemic, we have strengthened our customer engagement initiatives through enhanced digital capabilities and analytics to provide convenient & easy renewal solutions for customers.”
Adding another feather to its cap, Kotak Life has won the award for “Overall Achievement” under the ‘mature life insurance companies’ category at the ASSOCHAM 13th Global Insurance e-Summit & Awards.*
*Note: “The award won by Kotak Life is based on an independent assessment by the organiser Assocham Global Insurance Summit & Awards and has been selected from multiple award entries received from various other companies. Kotak Life is not associated with the organisers in any way. The organisers are credible and legitimate entities in their field of work. The above disclosures are to the best of our information and knowledge.” For further details, visit www.assocham.org