Kotak Mahindra Mutual Fund has introduced Insurance Cover Benefit for investors under K Bond Deposit Plan. This insurance benefit i.e. Life Insurance (Group Term) Policy of OM Kotak Mahindra Life Insurance Co. would be provided from December 23, 2002. The period of insurance benefit would be three years from the date of purchase of units and the value of the insurance cover would be value of the units held on that day at applicable NAV, subject to a maximum of Rs 15 lakhs.
Those who invest into the scheme between December 23, 2002 and March 31, 2003 can avail this benefit. However, one needs to maintain a minimum balance of Rs 20,000. The premium for the insurance cover would be borne by the AMC. The insurance cover would be terminated if the investor redeems his investment in the plan or the AMC discontinues the benefit by giving a one-month notice to the unitholders.