Kotak Mahindra Life Insurance Company Limited (Kotak Life) has announced a bonus of Rs 591 crore to eligible participating policyholders for FY 2020-21. This is an increase of 41percent over the bonus declared for FY 2019-20.
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.
Kotak Life has achieved 13th month persistency ratio (i.e. the first renewal premium) of 89.61 percent on a premium basis, which is a growth of 4.70 percent over FY2019-20. On number of policy basis, Kotak Life achieved a persistency ratio of 83.42 percent, a y-o-y growth of 2.68 percent, the company said in a press release.
Mahesh Balasubramanian, Managing Director, Kotak Mahindra Life Insurance Company Ltd. said, "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 and easy renewal solutions for customers.”
