Kotak Mahindra Finance Ltd (KMFL) has approached the registrar of companies (RoC) to change the name of one of its associate group companies, Komal Finance Ltd, to Komal Life Distribution Services Ltd.
The move is aimed at facilitating Om Kotak Mahindra Life Insurance Company to tap the 5 lakh customer base of Kotak Mahindra Finance. Komal, the proposed distribution arm, will then act as a corporate agent for Om Kotak. Komal has a net worth of Rs 1 crore.
Om Kotak Mahindra has till date sold Rs 80 crore of insurance policies, and expects to close the fiscal with a total premium income of Rs 15 crore against the present Rs 5 crore. According to the company's managing director Shivaji Dam: "Growth is taking place very fast among the new players". He estimated that the total sum assured of all new life players combined in the current fiscal would be around Rs 1,000 to 2,000 crore.
Meanwhile, OM Kotak Mahindra launched its group insurance products as well as its term risk plans today. Dam said that thus far as its term products are concerned, "we are targeting the younger generation, though we offer the product up to the age of 60 plus".
The group is keen to tap corporate entities with a minimum employee strength of 200. Its credit term group scheme would also give credit institutions such as banks, financial institutions and non-banking finance companies, cover against the possibility of non-performing assets arising out of retail lending.
The group plan provides life cover for a group of borrowers within the same credit institution by paying a lump sum premium towards the repayment of the loan amount on the death of a borrower.
Said Dam: "In a competitive market, this credit shield could serve as a differentiator from the competition, and help retain customers".
The group plans offer a wide array of riders along with unique benefits including family benefit rider, that covers the life of the spouse and the three eldest children of the employee. It also offers critical illness cover on 12 major illnesses. In the age of job-hopping, an employee would have the option to convert into an individual plan should he choose to leave the organisation.
