The rate reduction is partly as a result of the reduced solvency margin requirements laid down by the IRDA, a press release issued in Mumbai said.
"We are delighted to re-launch Kotak Term and Kotak Preferred Term with reduced rates. We believe that for an under-insured country like India, cheaper term plans will help increase penetration of insurance products," the company's Managing Director, Gaurang Shah, said.
With these reduced rates, for a 30-year-old healthy male, a cover of Rs 10 lakh for a term of 10 years, the Kotak Term Plan costs as little as Rs 182 per month (excluding service tax).
Kotak Life Insurance is a joint venture between Kotak Mahindra Bank, its affiliates and Old Mutual plc.