The insurer said this marks its 25th consecutive year of bonus declarations for eligible policyholders.
Bonuses under participating, or with-profit, policies are generally not paid immediately and are typically payable at maturity, surrender, death claim settlement, or as specified under the product terms.
Participating policies offer policyholders a share in the surplus generated by the insurer’s participating fund, in addition to guaranteed benefits.
The company also reported an individual claim settlement ratio of 99.5% and a group claim settlement ratio of 99.8% for the financial year ended March 2026.
According to the insurer, it settled a total of 1,52,860 claims during FY26, paying out ₹2,009 crore across individual and group business segments.
Kotak Life said 84% of eligible claims were settled within one working day after receiving all the required documents, as part of its efforts to reduce claim processing times.
The announcement comes amid a series of bonus declarations by life insurers.
Mahesh Balasubramanian, Managing Director and CEO of Kotak Life, said the company’s focus remains on timely claim settlements and delivering value to policyholders through regular bonus payouts.
Separately, the insurer said it ranked second in the Hansa Research Life Insurance Customer Experience Study (CuES) 2026 and reported a Net Promoter Score (NPS) of 60%.
Kotak Life is a wholly owned subsidiary of Kotak Mahindra Bank. As of March 31, 2026, the insurer had 372 branches across 163 cities and said it had provided coverage to more than 5 crore lives.
Last month, Generali Central Life Insurance announced a bonus of ₹102.54 crore for more than 95,000 policyholders for FY26, while Bharti AXA Life Insurance declared a bonus payout of ₹205 crore for policyholders holding participating policies.
Bajaj Life Insurance announced its highest-ever bonus of ₹1,939 crore for the financial year 2025–26 (FY26) for participating policyholders, marking a 5.8% increase over ₹1,833 crore declared in FY25.
