PremiumNEW DELHI: Kotak Mahindra Life Insurance Company Limited (Kotak Life) has announced a bonus of Rs591 crore for eligible participating policyholders for FY21. This is an increase of 41% year-on-year, as per the press release issued on Thursday.
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.
Mahesh Balasubramanian, managing director, Kotak Mahindra Life Insurance, 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," he added.
Kotak Life ranks among the best in all persistency buckets for both premiums and the number of policies for FY21. It achieved a 13-month persistency ratio (that is, the first renewal premium) of 89.61% on a premium basis, which is a growth of 4.7% over FY20. On a policy basis, Kotak Life achieved a persistency ratio of 83.42% y-o-y, a growth of 2.68%.
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