The Hindu Business Line : Kotak Mahindra OM Life sees bounce back in Q4

About 60 per cent of the company's business would come from the fourth quarter of the fiscal since high net worth individuals constitute the bulk of its customers, said Mr Gaurang Shah, Managing Director.

The life insurance company has been lagging behind others in terms of overall growth. However, the company has registered a growth of 113 per cent in terms of individual regular premium policies during the first half of the fiscal. Kotak Mahindra raked in Rs 70.25 crore for the half-year period this fiscal, up from Rs 32.9 crore in the corresponding period in this segment.

Mr Shah said the reason for the slower growth this fiscal was the drop in single premium as well as group business. In April, the Insurance Regulatory and Development Authority (IRDA) had taken a decision to restrict the selling of keyman insurance only as term insurance.

"Since most of our single premium policies were for keymen, we saw a drop in this line of business. In the case of group business, fringe benefit tax (FBT) on group super-annuation has taken its toll," said Mr Shah.

Group business in the half year period has seen a 52 per cent drop to Rs 3.2 crore from Rs 6.7 crore. "Group credit term has become very popular and we will be looking at more tie-ups in this area. But group gratuity will be the line of business we will try to generate premium from between February and June," he said.

Going forward, the company will introduce two unit-linked insurance plans with capital guarantee and a participating plan for retirement.