Kotak Life was founded in 2001 and has since grown into one of the largest insurance companies in the nation. With an average (from 2020 to 2023) of ₹6,356 crores, the brand stands as the fifth largest general insurance company in India. It offers a diverse portfolio of financial products across the genres of term insurance, retirement plans, savings plans, ULIPs, and more.
The brand has built its credibility over great numbers across Claim Settlement Ratio, complaint volume, and Amount Settlement Ratio. The overall operational efficiency of the company, as well as its client prioritisation, has been consistently commendable.
| Pros | Cons |
|---|---|
| Excellent Claim Settlement Ratio | Very few term insurance options |
| Great Amount Settlement Ratio | |
| Low complaint volume | |
| Affordable term plans |
Metrics of Kotak Life Insurance
Term insurance policies are considered one of the most affordable financial protection tools available in the market. Such plans are crafted to act as an economic replacement for policyholders in the event of their unfortunate absence. Since these policies have no links to market fluctuations and fetch no return, they are considered 0-risk financial products and extend a minimum premium for a substantial cover amount.
In the case of Kotak Life Insurance, there are 3 options in term insurance policy - Kotak e-Term, Kotak Term plan, and Kotak Saral Jeevan Bima. Each policy extends some unique features for non-tobacco users, women and a host of riders - hence, they are considered comprehensive and value-worthy.
While these term insurance policies are a good pick (we can get into the details later), you first need to prioritise the credibility of the term insurer. As a policyholder, you will be entrusting a considerable sum assured that will act as a financial replacement in the case of your absence. This cover amount will help your family achieve your future financial goals. Thus, it’s essential that the life insurance provider you approach is credible enough to be trusted with the amount and will ensure a hassle-free claim settlement process.
Here are a few metrics to determine the credibility of Kotak Life Insurance -
Claim Settlement Ratio of Kotak Life Insurance
An insurer's Claim Settlement Ratio (CSR) is the percentage of claims settled out of the total claims raised to the insurer within a year.
This metric serves as a measure of the insurer's reliability and trustworthiness. A CSR exceeding 97% signifies a highly credible insurer. However, caution is advised when considering insurers with CSRs below 80 or exceeding 100. A CSR exceeding 100 suggests delayed claim settlements from the previous year, inflating the current year's claim count.
| Years | Kotak Life Insurance | Industry Average |
|---|---|---|
| 2020 - 2021 | 98.50% | 97.49% |
| 2021 - 2022 | 98.82% | 97.50% |
| 2022 - 2023 | 98.50% | 98.34% |
| Average (2020 - 2023) | 98.61% | 97.74% |
Insight: Kotak Life Insurance holds one of the best Claim Settlement Ratios across the industry, surpassing the industry average. While this is only one of the metrics to determine a provider’s credibility, the CSR for Kotak Life is quite promising.
Amount Settlement Ratio of Kotak Life Insurance
An insurer's Amount Settlement Ratio (ASR) gauges the proportion of total claims settled against the total amount of claims submitted to the insurer within a single year.
An ASR exceeding 90% is deemed exceptional for life insurance providers, indicating their robust claim settlement capability both presently and in the future. This high ASR is particularly reassuring for policyholders, given that life insurance plans entail long-term financial obligations. Opting for an insurer with a high ASR ensures peace of mind, safeguarding against potential financial and emotional distress in case of a family member's loss, where timely claim settlement is crucial.
| Years | Kotak Life Insurance | Industry Average |
|---|---|---|
| 2019 - 2020 | 88.2 | 90.8 |
| 2020 - 2021 | 95.5 | 91.2 |
| 2021 - 2022 | 95.5 | 90.6 |
| Average (2019 - 2022) | 93.1 | 90.9 |
Insight: Kotak Life Insurance holds excellent numbers in its Amount Settlement Ratio metrics. This signifies a credible provider with long-term claim settlement potential and the insurer’s sustainability. If you seek a life insurance provider for your term insurance plan, you are looking at a long-term financial commitment, and Kotak Life’s ASR is an excellent sign.
Complaint Volume of Kotak Life Insurance
The credibility of Kotak Life Insurance as a term insurance provider is evident from its complaint volume, which predominantly revolves around issues such as delayed claim settlement and claim rejections. Therefore, the metrics of complaint volume serve as a reflection of the insurer's overall operational efficiency.
| Years | Kotak Life Insurance | Industry Average |
|---|---|---|
| 2020 - 2021 | 4.3 | 67.6 |
| 2021 - 2022 | 5.4 | 76.5 |
| 2022 - 2023 | 7.7 | 65.3 |
| Average (2020 - 2023) | 5.8 | 72.8 |
Insight: Kotak Life has one of the lowest complaint volumes in the industry. This indicates a hassle-free claim settlement experience for its existing policyholders and is one of the most crucial metrics for potential policyholders. Since most complaints stem from issues with claim settlement (delayed/rejected), a low complaint volume indicates enhanced overall operational proficiency, which is an excellent sign for a term insurer.
Offered Riders in Kotak Life Insurance’s Term Insurance Plans
Term insurance policies from Kotak Life are comprehensive as standalone plans. However, to ensure clients can customise their plans to suit their financial goals and requirements, the insurer offers a host of riders via their plans. Here is a look at some of these riders -
| Kotak e-Term | Kotak Term plan | Kotak Saral Jeevan Bima | |
|---|---|---|---|
| Waiver of Premium | ✘ | ✘ | ✘ |
| Accidental Death Benefit | ✘ | ✔ | ✘ |
| Critical Illness Rider | ✔ | ✔ | ✘ |
| Income Benefit on Accidental Disability Rider | ✘ | ✘ | ✘ |
| Personal Accident Cover | ✘ | ✘ | ✘ |
| Cancer Cover | ✘ | ✘ | ✘ |
| Total and Permanent Disability Rider | ✔ | ✔ | ✘ |
| Hospi Care Benefit | ✘ | ✘ | ✘ |
| Top-Up | ✘ | ✘ | ✘ |
Term Insurance Plans Offered by Kotak Life Insurance
- Kotak e-Term: This basic and pure term insurance policy covers the essentials and comes with a couple of riders. Needless to say, since the plan doesn’t offer many features, the policy is one of the most affordable policies out there. The policy has 3 plan options -
- Life: Death benefit (equal to the sum assured) is paid out to the nominees in case of the policyholder’s death.
- Life Plus: Apart from the death benefit perk, under this plan option, you can also tap into the features of the Accidental Death benefit, under which the beneficiaries get an additional sum if the death is followed by an accident.
- Life Secure: This plan option offers a Death benefit and an additional perk of Waiver of Premium for Total and Permanent Disability. Under the latter, if a policyholder is left totally and permanently disabled, any premiums to be paid towards the policy are waived. Thus, considering the medical crisis creates a hurdle in the source of income, such a perk is exceptionally beneficial.
Among a couple of riders that it offers are -
- Critical Illness Plus Benefit Rider: If you are diagnosed with any of the 37 critical ailments listed under this rider, the insurer offers you an additional sum assured. This buffer amount can be used at your discretion to treat your illness, use for savings, and more.
- Permanent Disability Rider: Say you are left disabled (permanently). This means you are looking at a compromised source of income. Under such circumstances, the insurer offers you a certain sum over a monthly/lump sum basis to fund diverse monthly expenses.
The policy also has an in-built Step-Up feature that is the equivalent of life stage benefits, under which the base sum assured gets boosted in the case of significant life events like child marriage/adoption, weddings, home loans, etc.
2. Kotak Term Plan: Kotak’s Term Plan is a pure-vanilla protection tool that extends the perk of dual premium payment options—single and regular. Unfortunately, the coverage offered under this policy is a tad bit limited, ranging from ₹3 lakhs to ₹24,99,999 and having a term tenure of 5 years to 30 years.
Despite the limited features of the policy, policyholders still have 3 riders to help customise their plan -
- Critical Illness Plus Benefit Rider: If diagnosed with any of the 37 critical ailments listed under this policy, you are offered a lump sum deducted from the base sum assured. Thus, if a policyholder is diagnosed with a critical illness, they receive a sum to be used at their discretion. However, when they pass away, the beneficiary receives a reduced sum assured (base cover—critical illness amount) as a death benefit.
- Accidental Death Benefit (ADB): If the policyholder's death is caused by an accident, the insurer offers an additional lump sum over and above the base sum assured.
- Permanent Disability Rider: If you are permanently disabled, the insurer offers 120% of the base cover amount in instalments over 5 years.
3. Kotak Saral Jeevan Bima: The Saral Jeevan Bima policy from the stable of Kotak Life Insurance is quite an affordable option, offering a base sum assured ranging from ₹5 lakhs to ₹25 lakhs. The policy provides coverage until you turn 70 and extends special premium rates for women policyholders. Unfortunately, the plan has no riders to contribute, limiting your chances of customising this plan.
Conclusion
Kotak Life Insurance is an excellent pick as a life insurer, as reflected in its diverse metrics of Claim Settlement Ratio, Amount Settlement Ratio, and complaint volume. However, regarding term insurance plans from this stable, the options are too limited and are mainly without the cluster of value-worthy riders. Thus, considering the lack of comprehensiveness of the term insurance plans from Kotak Life, it would be best to shop around for insurers offering top-notch policies, extensive coverage, and a host of value-worthy riders.