Kotak Life launches 'Headstart' Child Plans

New Delhi, November 21, 2006: Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance), one of the fastest growing insurance companies in India, today announced the launch of 'Headstart' Child Plans, a first-of-its-kind product in the Indian life insurance industry. Headstart Child Plans are specially tailored, cost effective dual benefit investment-cum-insurance unit-linked plans that aim to give children the financial means to pursue their dreams irrespective of the uncertainties of life.

Headstart Child Plans is a power-packed and innovative ULIP product, designed to cater to the two basic needs of customers - maximum protection and maximum wealth. This makes sure that while the customer stays focused on savings, he is fully protected from the uncertainties of life. The plan primarily targeted at parents in the age group of 30-45 years, living in metros and mini metros, is uniquely packaged in two variants and is tailored to suit individual needs.

Future Protect maximizes protection, a comprehensive investment and risk protection package. Assure Wealth maximizes wealth, a plan to help build substantial corpus for the future of the child.

Speaking at the launch, Mr. Gaurang Shah, Managing Director, Kotak Life Insurance, said, "In line with our company's product philosophy to provide innovative and pragmatic solutions to our customers, we have consistently enhanced our product range to meet the varying needs of our customers. This new plan is the best way to secure a child's future and fulfill his ambitions. Headstart Child Plans is an important milestone for us in our portfolio of products, which not only builds wealth for our customers but also enables them to stay a step ahead in their lives".

An innovative offering in the product and a first-of-its-kind in the Indian Life Insurance Industry is the Dynamic Floor Fund (DFF), which offers embedded investment advice in one single fund. The fund strives for long term capital growth while providing capital protection in cases of volatile market behavior. Through the use of a quantitative risk model, the fund aims to profit from a rising share market and protect against capital losses in a weak market. The fund invests across shares, bonds and cash "� moving from shares into fixed interest investments when the fund's value drops below a predetermined "floor". When markets start to move up, the fund increases its holdings in shares, tapping into these growth opportunities. The fund aims to protect at least 90% of the net investment over a 12-month period.

Dynamic Floor Fund (DFF) is ideally suited to the more risk-averse investor whose priority is capital preservation, but who still wants to participate in an actively managed upside market growth. It suits investors who want:

"� Protection of invested capital

"� The level of capital protection to follow markets upwards, and

"� Active equity management

"The dynamic floor fund is the ideal market entry fund for investors, who are looking for a fund which is hassle-free and provides them market returns with adequate amount of protection" added Mr. Gaurang Shah.

Headstart Child Plans also includes many other innovative features, such as the Joint Life Option (pay for only as much protection as one needs), Loyalty Units (reward for long term savings) and an option of saving for 2 children with one plan. In the Joint Life option, the sum assured is given to the beneficiary in case of death of both the lives insured and is meant for parents who either have existing insurance cover or access to other financial provisions specially families with double income sources. In Headstart, the facility to make more than one child the beneficiary reduces paperwork, buying two policies and administrative fee. It is hassle free and convenient. Headstart also allocates additional loyalty units at the end of 10th, 15th and 20th policy year to boost the corpus for the child by an additional investment.

Headstart Child Plans will be supported by an integrated marketing and communication plan, which will begin with launch of an Outdoor Campaign in December across all metros and mini-metros. The ad has an emotional appeal encouraging the parent to get alive to their child's dreams and plan for their financially secure & comfortable future "� 'Bring alive your child' dreams. Start Preparing'.

Kotak Life Insurance with its rapidly increasing distribution network of 60 branches and presence across 41 cities is committed to anticipating consumer needs and delivering innovative solutions through a team of over 18,000 well-trained Life Advisors, to address the varied needs of the Indian consumers.

About Kotak Mahindra Old Mutual Life Insurance

Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001. Kotak Mahindra believes in offering its customers a lifetime of value. A commitment that has made it a leading financial services group with a net worth of over Rs. 2,900 crores as well as a market leader in the areas of investment banking and distribution of financial products.

Old Mutual, a company with 160 years experience in life insurance, is an international financial services group listed on the London Stock Exchange and included in the FTSE 100 list of companies, with assets under management worth $ 400 Billion as on 30th June, 2006. For customers, this joint venture translates into a company that combines international expertise with the understanding of the local market.