Mumbai: Om Kotak Mahindra Life Insurance Company has announced the launch of its latest product Kotak Preferred Term Plan (KPTP). The plan is a one-of-a-kind pure risk product that aims to cover preferred lives at a nominal cost.

The plan offers special benefits of lower premium rates to people who meet the ''preferred lives'' criteria - non-tobacco-consuming men over the age of 25 and women over the age of 25. This plan is also ideal for covering outstanding debts like mortgages, home loans due to its low-premium rates.

''This is the first product of its kind in the Indian insurance industry that rewards consumers for not consuming tobacco,'' says Om Kotak Mahindra Life Insurance Company chief marketing officer Treman Ahluwalia. ''Apart from the affordability of the product as demonstrated by the low premium applicable to preferred lives, this product also reinforces the OMKM philosophy of jeene ki azaadi by helping consumers maximise their life cover.''

''The plan will help working women over the age of 25 who have financial responsibilities to cover themselves at a lower cost. We hope that women in India benefit from this plan especially since we have designed the plan to be affordable as well as flexible for our consumers,'' says Om Kotak Mahindra Life Insurance Company managing director Shivaji Dam.

The plan, besides offering a lower premium to preferred lives, also differs from the existing Kotak Term Assurance Plan with respect to the maximum term, which has been increased from 20 to 30 years. It is also ideally suited for those wanting to take a sum assured of greater than 10 lakh, as there is no restriction on the amount of sum assured in Kotak Preferred Term Plan.

The plan is available with options for regular premium payment or single premium payment. In the case of the regular premium payment option, premiums may be paid in either annual, half yearly or quarterly instalments.

The term for regular premium ranges from 10 to 30 years and five to 30 years for single premium. The minimum age eligible for this plan is 18 years and the maximum age is 60 years. The maximum age that the plan can provide cover for is 70 years.

The plan can be converted into any other plan offered by OMKM (except for another term plan) provided at least five years remain before the cover ceases. In case of a missed premium by the due date, the customer is entitled to a grace period of 30 days from the date of unpaid premiums. In a financial emergency, the policy may be surrendered in the case of the single premium payment option.

The plan also offers riders like the accidental death benefit, permanent disability benefit and critical illness benefit for a nominal premium. OMKM, launched in Mumbai in May 2001 with three products, now offers a total of nine products, including six individual plans, two group insurance products and one product aimed at the rural market. These products are available with combinations of six attractive riders.

OMKM is currently operational from 27 cities across India, with a strong distribution force of over 2,200 life advisors and over 25 corporate agents to distribute its policies. The company has its own state-of-the-art training centre at Mumbai and has also received accreditation from Insurance Regulatory Development Authority to conduct its own training for its life advisors. An ORG-Marg survey named Om Kotak Mahindra Life Insurance Company the third most recognised private life insurance brand in India.

Om Kotak Mahindra is a joint venture between Kotak Mahindra Finance Ltd (KMFL) and Old Mutual plc. KMFL is one of India's leading diversified financial services companies, with operations covering auto and consumer finance, asset management, investment banking, securities trading and research and has group net worth of over Rs 900 crore.

Old Mutual plc is an international financial services group based in London with 157 years' experience in life insurance, asset management and banking. It has a total asset under management to US $208 billion as on 31 December 2001.