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Tuesday, Oct 01, 2002

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OM Kotak relaunches insurance bond plan

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MUMBAI, Sept. 30

OM Kotak Mahindra has relaunched its Kotak Insurance Bond (KIB) plan after realigning interest rates to keep in sync with the current market scenario.

The returns have been aligned to keep pace with changing market interest rates which have decreased by an overall figure of approximately one per cent since the time of the introduction of the plan in March 2002, OM Kotak said a statement.

"We have now adjusted our returns to a level more in line with declining interest rates in order to keep our commitment to our customers'' said the statement quoting Mr Treman Ahluwalia, Chief Marketing Officer.

"Apart from being a lucrative investment tool, KIB also offers the added advantage of tax benefits and risk cover. One of the features that sets this plan apart from others is the enhanced benefit it offers in the case of accidental death in the initial years," he said.

Kotak Insurance Bond is a single premium plan that acts like a fixed deposit that grows money on maturity. In its new form, returns can be as high as 7.33 per cent and are guaranteed, the statement said.

The bond is now being introduced with a 15 year term, in addition to the seven and 10 year periods available earlier. This has been done in order to allow customers the advantage of locking in their money for a longer period in a declining interest rate scenario.

The minimum and maximum age eligible for this plan continue to be 18 and 60 years respectively. The maximum age that the plan can provide cover for is 75 years. The remaining features of the product remain as before.

OM Kotak Mahindra Life Insurance Company is a joint venture between Kotak Mahindra Finance Ltd and Old Mutual plc.

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