Nikhil 2

SUMMER TRAINING PROJECT REPORT ON

“Mediclaim Insurance(group health insurance) AT IFFCO TOKIO General Insurance Dehradun”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE POST GRADUATION DIPLOMA IN MANAGEMENT OF

INSTITUTE OF MANAGEMENT STUDIES, DEHRADUN SUBMITTED TO: INTERNAL GUIDE Dr. SHRUTI NAGAR Sr.lecturer IMS Dehradun

EXTERNAL GUIDE Mr.AMRISH SINGH Area manager IFFCO TOKIO Dehradun SUBMITTED BY:

INSTITUTE OF MANAGEMENT STUDIES-DEHRADUN BATCH 2008-2010

ACKNOWLEDGEMENT This project is an acknowledgement to the intensity, drive and competence of several individuals who have contributed immensely to the completion of this project The making of any project calls or contribution and cooperation of inputs by many. It is the result of meticulous effort put in by one with contribution of inputs by many that led to the formation of the final report. Before I go into a deep insight of my project, I would like to add few heartfelt words for the people who were a part of the project in many ways, who gave me support right from the beginning till the end. I duly acknowledge my sincere gratitude to each of them. This project report could not have been completed without the guidance of our Programme Coordinator, my faculty guide Mr. AMRISH KUMAR SINGH. Lastly, I sincerely thank all others who have supported and helped me directly or indirectly in making this project successful and meaningful.

CERTIFICATE

I have the pleasure in certifying that Mr./Ms. ...…………..…………………………..is a bonafide student of IInd Semester of the Post Graduate Diploma in Management (Batch 2008-2010), of Institute of Management Studies, Dehradun under Institute Roll No. ………..……. . He/She has completed his/her project work entitled ………………………………… … …………………………………………………………….. under my guidance. I certify that this is his/her original effort & has not been copied from any other source. This project has also not been submitted in any other Institute / University for the purpose of award of any Diploma. This project fulfils the requirement of the curriculum prescribed by this Institute for the said course. I recommend this project work for evaluation & consideration for the award of Diploma to the student.

Signature

: ……………………………………

Name of the Guide : …………………………………… Designation

:…………………………………….

Date

: ……………………………………

(To be made on Company Letter Head)

CERTIFICATE This is to certify that Mr. / Ms. ________________________ (Institute ID No.), S/o. / D/o. Shri ______________________________, student of Post Graduate Diploma in Management (Batch 2008 – 2010), at Institute of Management Studies, Dehradun has successfully completed his / her compulsory Summer Training with us, as part of his / her Course Curriculum. The duration of his / her training was from _____________ to _____________ on

the

project

_______________________________________________________ ______________________________________________________________ __ *under the supervision of Mr. / Ms.………………………, Designation ………… …. During the training we found him / her quite sincere, hard working and his / her conduct & behavior was good. We wish him / her all success in his / her academic endeavours and in life.

Signature : ____________________ ** (HR Manager) Name

: __________________

Designation : __________________

*, **

: To be used only when the certificate is given by HR Department.

TABLE OF CONTENTS 1. TITLE PAGE. 2. ACKNOWLEDGEMENT. 3. INTERNAL GUIDE CERTIFICATE. 4. COMPANY TRAINING CERTIFICATE.( Scanned /photocopy) 5. EXECUTIVE SUMMARY. 6. LIST OF CONTENTS.(mentioning page numbers) 7. LIST OF TABLES AND FIGURES. (mentioning page numbers) 8. OBJECTIVE OF THE STUDY. 9. INTRODUCTION. 10.METHODOLOGY. 11.FINDINGS. 12.ANALYSIS OF FINDINGS. 13.CONCLUSION. 14. RECOMMENDATIONS. 15.BIBLIOGRAPHY OR REFERENCES. 16. ANNEXURES.( Eg.Questionnaire , Addresses of contacted

persons, Company literature , Product literature etc. )

OBJECTIVE OF THE STUDY The project deals with the customer survey on medical insurance, detailed study of the general insurance industry, evaluating prospects of cross sales & selling health insurance & issues regarding rollover business. It also studies the individual Health Insurance.

The study was to determine present scenario regarding •

The awareness about the basic IRDA laid guidelines for medical insurance. For individual as well as groups.

•

To design a questionnaire to assess customer behavior.

•

To have a brief idea about the general insurance.

INTRODUCTION Insurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata.

History of Insurance in India can be broadly bifurcated into three eras: a) Pre Nationalization b) Nationalization and c) Post Nationalization. Life Insurance Corporation of India was formed by consolidating the operations of various insurance companies.

General Insurance followed suit and was nationalized in 1973. General Insurance Corporation of India was set up as the controlling body with New India, United India, National and Oriental as its subsidiaries. The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced from 1991. For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001.

INDUSTRY PRODUCT COMPOSITION

PREMIUM (100 % = USD 4.2 BILLION ) 8% 21%

4%

FIRE

20%

40% 4% 3%

40 % MOTOR 21 % MISC 20 % FIRE 8 % HEALTH 4 % ENGG 4 % MARINE CARGO 3 % MARINE HULL

MISC ENGG MARINE HULL MOTOR MARINE CARGO HEALTH

INSURANCE MARKET – PRESENT The insurance sector was opened up for private participation few years ago. For years now, the private players are active in the liberalized environment. The insurance markets have witnessed dynamic changes which includes presence of a fairly large number of insurers both life and non-life segment. Most of the private insurance companies have formed joint venture partnering well recognized foreign players across the globe.

CAPITAL REQUIREMENTS & FOREIGN PARTICIPATION Minimum capital requirement for direct life and Non-life Insurance company is INR1000 million and that for reinsurance company is INR2000 million. A maximum 26% foreign equity stake is allowed in direct insurance and reinsurance companies. In the 2004-05 budgets, the Government proposed for increasing the foreign equity stake to 49%, this is yet to be effected. There are currently twenty one non-life insurance companies, out of which two are specialized Insurance companies viz. Agricultural Insurance Co, who handles Crop Insurance business and Export Credit Guarantee Corporation, which only transacts export Credit Insurance.

SPECIAL PROVISIONS

PAYMENT OF PREMIUM BY INSURED Section 64 VB of the Insurance Act 1938 prohibits insurance companies from extending credit so that in effect all insurance in India is on a “cash before cover” basis.

INSURANCE DISTRIBUTION CHANNELS AGENTS Agency has been the traditional way in which insurance was transacted in the Indian market. Agents act as the representatives of insurance companies. In the nationalized era, agents were a very important source of business for the Public Sector Insurance Companies, as broking was not allowed. Agents still hold a very large book of insurance business mainly in the personal lines.

CORPORATE AGENTS Corporate Agents are corporate entities who acted as representative of insurance companies and procured business on their behalf. However this concept of corporate agency was done away with by the IRDA after broking was introduced in the market

INSURANCE BROKERS Brokers have been allowed to operate in the market from April 2003. To ensure presence of serious players in the market, IRDA has stipulated a capital requirement of INR 5 million for direct insurance brokers, INR 20million for reinsurance brokers and INR 25 million for composite brokers. The rule for foreign equity participation is applied similarly as for insurance companies. Broking was relatively a late entrant in the market in 2002 when IRDA allowed insurance broking in India. In a very short span of few years, broking has gained good momentum. This is evident from the fact that the number of brokers has increased to 163 within this short span. Prominent Insurance brokers have widened the typical role of an insurance broker, offering various value added services such as Risk Management and Performance manuals.

BANKASSURANCE Bank assurance as well is gaining momentum in the Indian market. Insurance companies are increasingly using the banking network to improve their distribution system.

INSURANCE ANCILLARY SERVICES A) SURVEYORS & LOSS ADJUSTERS Several steps were initiated by IRDA to ensure improved services by Surveyors and Loss Adjusters. IRDA took upon themselves the task of categorizing them on the basis of a minimum qualification, practical training and past experience to be eligible to take up Surveyors/Loss Assessors work besides ensuring their adherence to a course of conduct. The authority categorized the surveyors into three categories- “A”

“B” and ”C” and had indicated the monetary limits up to which each individual category surveyor would carry out a survey.

B) THIRD PARTY ADMINISTRATORS This provision of cashless health service to the clients is another introduction in the Indian market. As on date 25 intermediaries have been registered by the IRDA. The idea is to propagate the health insurance in the country. The Third Party Administrator ideally takes over the payment of the medical charges on behalf of the insured who in turn is then reimbursed by the insurer. The minimum capital requirement for a TPA is INR 10 million.

TARIFF ADVISOR COMMITEE (TAC) Tariff Advisory Committee, Statutory Body under Insurance Act 1938, controls and regulates the rates, advantages, terms and conditions that may be offered by insurers in respect of General Insurance Business relating to Fire, Marine (Hull), Motor, Engg. and Workmen Compensation.

LOSS PREVENTION ASSOCIATION OF INDIA (LPA) LPA is promoted by GIC and other Public Sector companies whose aim is to spread risk management awareness amongst the masses.

INSURANCE OMBUDSMAN The institute of Insurance Ombudsman was created in 1988 with the purpose of quick disposal of the grievances of the insured customers and to mitigate their problems. The insurance ombudsman is empowered to consider the complaint relate to any

grievances against insurer i.e.(a) repudiation of Claim (b) dispute with regard to premium to be paid or payable in terms of the policy, (c)dispute on policy wording (d)delay in settlement of claims (e)non-issuance of insurance document. Indian insurance industry has Ombudsmen in 12 cities empowered to reduce customer's grievances in respect of insurance contracts on personal lives where the insured amount is less than INR 2 million.

INSURANCE ASSOCIATION OF INDIA Insurance Association of India was established according to the provision of Insurance Act and all insurers incorporated or domiciled in India are the members of the Association. After formation of IRDA, it has established two councils of the Insurance Association of India. (1) The Life Insurance Council consisting of all members of the IAI, who carry on life insurance business in India. (2) The General Insurance Council consisting of all members of the IAI, who carry on general insurance business in India. IRDA nominates members and chairmen to Executive Committee of both the councils. The functions of the Executive Committee of the Council are: (a) To advise and assist insurers in setting up standards of conduct and sound practice and in the matter of rendering efficient service to policy holders (b) To advice the Authority in the matter of controlling the expenses of insurers (c) To inform the Authority of any insurer acting in a manner prejudicial to the interests of policy holders

COMPANY PROFILE

IFFCO-Tokio General Insurance (ITGI) was incorporated on 4th December 2000 with a vision of being industry leader by building customer satisfaction through fairness, transparency, and quick response. It is a joint venture between the Indian Farmers Fertilizer Co-operative (IFFCO) and its associate and Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan. ITGI has Pan India presence with 51 ‘Strategic Business Units’ and a wide network of over 110 offices. It offers a wide range of uniquely customized policies covering a wide range of customers, from farmers to some of India's largest automobile manufacturers. From a modest Rs 2130 Million of GWP (Gross Written Premium) in 2001-02 it has achieved an impressive Rs 12350 Million in 2007-08, thereby becoming one of India’s leading private players. ITGI has got the Technical Support for underwriting and reinsurance from Tokio Marine and on Risk Management from Tokio Risk Consulting (TRC). It is the first company in India to underwrite mega policies for a fertilizer and an automobile company. This comprehensive policy is based on international rates and optimizes the premium outflow for clients even as it offers a one-stop, all-risk cover. Other than the conventional products, it has been able to come out niche products like Credit Insurance, Fine Arts Insurance, P & I Insurance, Errors & Omissions Policy for the IT Sector etc. At the same time it has steadfastly carried out its rural centric initiatives by

launching products like Sankat Haran Bima Yojana, Mausam Bima Yojana, Mahila Suraksha Bima Yojana and Janata Bima Yojana for the masses. It is also the only insurance company in the country to have a 100%-owned distribution channel to service its retail customers called IFFCO-TOKIO Insurance Services Ltd (ITIS). Today, ITIS has a highly motivated workforce of over a 1000 employees in over 200 towns. As a customer focused company, it conducts bi-annual customer satisfaction surveys through independent agencies to gauge its operational efficiencies. This is backed by a robust IT infrastructure, which has enabled, among other things, speedy settlement of claims.

IFFCO TOKIO is one of the leading insurance companies of India. It offers products and services to the individuals to make their life simplified and easy. IFFCO TOKIO General Insurance is a joint undertaking between Tokio Marine and Nichido Fire Group and The Indian Farmers Fertilizer Co-operative (IFFCO). IFFCO TOKIO was established on December 4, 2000. It has its head office at Gurgaon, Haryana. It is counted amongst the three leading private insurance companies. There are almost 100 branch offices that are spread all over the country. This General Insurance company offers a range of 40 policies that are made keeping in mind the requirements of all types of customers. IFFCO TOKIO is basically a people’s company. It offers simplified services to help even a layman with best quality insurance products.

IFFCO TOKIO General Insurance maintains the financial principles of the Millea Group. Efficient financial management accounts for the rapid growth of this insurance company. It is the only insurance company that made profit for five consecutive years. Customer satisfaction is the main aim of IFFCO TOKIO. To satisfy the retail customers, this company has 100%-owned distribution channel. IFFCO-TOKIO has over 700 employees working at different branches. This company offers a wide range of products and policies. The products can be categorized under three broad heads: Specialty, Retail and Commercial. Some of the policies that are included among the Specialty products are credit insurance, jeweler’s block, Sagar Bandhu Bima Policy, Multi Modal transport, aviation insurance policy and many others. Retail line products include motor private car, office professional establishment, Home Suvidha, Trade suvidha, industry protector, group personal accident, surgery protector, travel protector and all risk insurance. The policies of the Commercial products are consequential loss, marine cargo, burglary insurance, bankers blanket, fidelity guarantee, industrial all risk, money insurance and workmen’s compensation. Operating offices of IFFCO TOKIO are spread all over the country. Some of the places, where it is located are Ahmadabad, Aurangabad, Agra, Allahabad, Akola, Belapur, Bhopal, Bhuvaneshwar, Bangalore, Bellary, Coimbatore, Chennai, Chandigarh, Dehradun, Delhi, Faridabad, Maninagar, Nasik, Faizabad, Vadodara, Khandwa, , Kochi, Gurgaon, Kolkata, Lucknow, Hyderabad, Indore, Mumbai, Nagpur, Noida, Pune, Surat, Udaipur, Haldwani, Jalandhar, Hubli, Gwalior, Vapi, Madurai , Patiala, Varanasi, Jabalpur, Jaipur, Ludhiana, Mangalore, Goa, Rajkot, Shimla, Sambhalpur, Thiruvananthapuram and Guwahati.

IFFCO Tokio General Insurance is a customer-centric company aiming to be easily accessible and approachable to all sections of society. It offers products and services that provide quality at reasonable cost. The organization has the deep knowledge of IFFCO and thus developed a business plan that has both stability and integrity. It has set global standards for itself and is the only private general insurance company in India to make 5 consecutive years of experience. ITGI has been one of the few companies to show underwriting profits within four years of operations. The company focuses on delivering creative solutions to its customers. IFFCO Tokio General Insurance has 700 employees present in 68 cities, dedicated to give full satisfaction to the customers. It is the first company to underwrite mega policies for a fertilizer and automobile client.

IFFCO - TOKIO GENERAL INSURANCE Vision 

To be industry leader by Building customer satisfaction through fairness, transparency, and quick response

Mission



To win TRUST of individuals, trade, industry and commerce and protect citizens, corporate, and international investors in India.

26%

74%



JV between IFFCO & its associates; and Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan.



Incorporated on December 4, 2000 with its Corporate Office in Gurgaon, Haryana.



Leader in Commercial lines, trusted partner of PSU’s and large corporates



Special thrust on the Fertilizer, Power, Oil & Energy Sector

ITGI’S RURAL CENTRIC INITIATIVES

Sankat Haran Bima Yojana –Launched in October 2001 –Free PA cover of Rs 4,000/bag (Max. of Rs. 1 Lac), on purchase of fertilizer Salient Features –Largest single policy issued in the world –More than 2.5 Cr. farmers covered every year (5

th

year running)

–Over 4,500 claims settled & Rs. 27 Cr disbursed till date

Launch of Sankat Haran on 30 Sep 2001, by

Claim cheque distribution ceremony

Mr. Ajit Singh, then Minister of Agriculture at

organized by IFFCO

Khurja

ITGI’S RURAL CENTRIC INITIATIVES

Barish Bima Yojana –A weather insurance product, introduced in April 2004 –Index based product, covers anticipated deficiency in crop yield due to deficient rainfall during monsoon

–Sold as a Group policy through Co-op societies / banks / NGOs etc. Salient Features –Available in 7 states, covering 100 districts; & 16,000 farmers

ITGI’S RURAL CENTRIC INITIATIVES

Mahila Suraksha Bima Yojana –Launched on September 2005 on International Women’s Day –Through IFFCO foundation with a membership of nearly 21,000 people (mostly women)

–Coverage against all accidental occurrences, incl. death & injury –Cover of Rs. 50,000 with a premium of only Rs. 20 per annum Genhu Mausam Bima Yojana –Covers Frost Injury & Heat Stress to crops –Cover for low temp. during the flowering stage –Cover for high temp. during the grain filling stage

INDIAN PROMOTERS Indian Farmers Fertiliser Cooperative Limited (IFFCO) is the world's largest fertilizer manufacturer & marketer in cooperative sector. It was incorporated on 3rd November, 1967 and since then is committed to achieve its prime role of providing quality fertilisers and agricultural services to India's farming community. Over the years, the cooperative society has evolved into a gigantic Indian Multinational and set records for excellent and consistent performance in the filed of production, marketing and services to farmers. As a society "of the farmers, by the farmers and for the farmers", IFFCO has firmly established itself as a true Cooperative and perfect role model for others to emulate on the path of economic development. IFFCO has steadily grown from strength to strength-from a modest membership of 57 societies in 1967-68 to more than 40,000 societies at present. The initial equity capital of Rs.6 lakh contributed by cooperatives in 1967-68 has also risen to Rs. 4.23 Million in 2007-08. Having the Largest Market share of Fertilisers Production in India with 25% in Complex Fertilsers and 20% in Urea it has also become the First Cooperative in India to set-up first ever Kisan SEZ (Special Economic Zone) at Nellore, Andhra Pradesh. IFFCO holds 72.64% shareholding and its Associate M/s Indian Potash Ltd. holds 1.36% shareholding in ITGI.

FOREIGN PROMOTERS TOKIO Marine Asia Pte. Ltd holds 26% shareholding in ITGI. TOKIO Marine Asia is a subsidiary company of Millea Holding Inc Japan; a holding company for Tokio Marine & Nichido Fire (TMNF) Insurance Company. TOKIO Marine Asia has non life operations in 9 Asian countries Tokio Marine & Nichido Fire Insurance Company has over 120 years of experience in the general insurance business and is the largest and oldest general insurance company of Japan. It is a member of the highly diversified Mitsubishi group comprising over 1,500 companies. The company is rated 'AA' (indicating strong financial security characteristics) by international rating agency Standard & Poor's. Tokio Marine has been continuously serving as one of the important reinsurance companies to the nationalized Indian insurance market. TMNF has also been chosen as Asia’s General Insurance Company of the year by Asia Insurance Review in December 2008.

KEY PEOPLE S. Narayanan | MD and CEO M K Tandon | Financial Advisor N K Kedia | Director – Marketing Y. Fukuda | Director - Operations H.O.Suri | Executive Director Mr V.S.Rao | Executive Director

PRODUCTS Our product development team is constantly working to introduce products which are competent in meeting the customer needs. At IFFCO Tokio, we emphasize on understanding the need from the market and offering the best possible products across the product lines. We approach the market with products that have differentiated features / benefits / service offerings. IFFCO Tokio offers a wide range of uniquely customized policies covering a wide range of customers, from farmers to some of India's largest automobile manufacturers. Our Endeavour is to spread the benefits of insurance to the masses through our specially designed insurance products like Sankat Haran Yojana, Barish Bima Yojana, etc. The company has made a genuine attempt to understand the rural and low-income

segment of the Indian market, to tap the potential of this largely unexplored segment and make the benefits of insurance available to the masses. We are also making constant efforts to reach out the entire general insurance spectrum i.e. Commercial Lines, Retail lines and Specialty Lines. Innovations will keep on expanding to include customised offerings for various market segments and geographies.

COMMERCIAL LINES IFFCO-TOKIO provides a wide variety of policies that are customized to your needs. For your convenience, we have grouped them. To access information on any of the policies, simply click on the link you want.

1. Standard Fire & Special Perils 2. Consequential Loss 3. Contractors All Risk 4. Contractors Plnt & Machn 5. Boiler & Pressure Plant 6. Erection All Risks 7. Industrial All Risks 8. Machinery Breakdown 9. Machinery Loss of Profit 10.Product Liability 11.Public Lia Industrial 12.Public Lia Non-Industrial

13.Marine Cargo 14.Electronic Equipment 15.Bankers Blanket 16.Burglary Insurance 17.Fidelity Guarantee 18.Money Insurance 19.Workmen's Compensation

RETAIL LINES IFFCO-TOKIO provides a wide variety of policies that are customized to your needs. For your convenience, we have grouped them. To access information on any of the policies, simply click on the link you want.

SPECIALTY LINES IFFCO-TOKIO provides a wide variety of policies that are customized to your needs. For your convenience, we have grouped them. To access information on any of the policies, simply click on the link you want. 1. Credit Insurance 2. Multi Modal transport (MTO) 3. Marine Hull & Machinery 4. Jeweller's Block 5. Barish Bima Yojna (Weather Insurance) 6. Sagar Bandhu Bima Policy 7. Aviation Insurance Policy 8. Errors and Omissions (Technology) Policy 9. Fine Art Insurance – Private Collectors 10. Fine Art Insurance – Art Dealers & Gallery Owners

TARGETS •

Groups such as Employer- Employees and dependants, Members of Clubs, Holders of Credit Cards and Members, Shareholders of Banks/Public limited Cos.

•

SCOPE OF COVER

•

The policy covers Hospitalisation and /or domiciliary hospitalisation expenses viz.

•

Room rent

•

Nursing expenses

•

Surgeon,anaesthetist, consultant’s fee

•

Diagnostic,OT,blood ,oxygen, medicines,radiotherapy,chemotherapy charges

CONDITIONS 1. Hospitals/Nursing Home – Definition. 2. Minimum Hospitalisation – 24 hours. 3. Indemnity – In Indian rupee,payment for treatment in India 4. Pre-Existing disease is not covered. 5. No coverage in the first month and certain other exclusions for first year

EXCLUSIONS Treatment of preexisting diseases such as -: •

Cataract,Hysterectomy

•

Hernia Hydrocele, Cogenital Internal Diseases

•

Piles, Sinusitus

•

Circumcision

•

Vaccination or Inoculation

•

Cost of spectacles, Contact Lens,hearing Aids

•

HIV/ AIDS

•

Maternity Related Expenditure

•

Domiciliary Hospitalisation in respect of -:

•

Asthama

•

Bronchitis

•

Chronic Nephritis

•

Diarrhoea

•

Diabetes Mellitus

•

Epilepsy,POU

•

Influenza,Cough and Cold

•

Dental Treatment or Surgery

• SPECIAL - ADD-ON COVERS 1. Education Cost – School going and college going. 2. Ambulance charges 3. Cost of Travel a. For any kin – to and fro RS.15000 b. For Insured person himself return Rs.7500 4. Cost of supporting Equipments. 5. Discounts for pre and post hospitalization period. 6. Hospital daily Cash 7. Boarding & lodging Expenses

8. Family floater 9. Deletion of Domiciliary hospitalisation benefit 10. Maternity cover available for the group. 11. Organisational floater

CLAIM MANAGEMENT 1. T.P.A’s Involvement 2. Doctors Empanelment

RELAXATION FOR RURAL AREA 1. Surgical Policy 2. No criteria of hospitals to be applied for Surgery and also if the treatment at Distt. Health Centre.

EDUCATION COSTCOVERS-: TUTION FEES EXAMINATION FEES MONTHLY LODGING /BOARDING EXPENSES – 0.5 % & 1% Maximum Amount -: Rs . 60,000 – College Rs. 30,000 – Schools

AMBULANCE CHARGES Actual Charges Subject to a Maximum of Rs.1,000 / person –group –all or none

FAMILY FLOATER Available depending upon family size, Sum Insured per member , age profile and suitable loading of the premium.

CLAIM PROCEDURE GENERALCLAIMSPROCEDURE All insurance contracts are based on the information provided by the insured in the proposal form. The proposal form forms the basis of insurance contracts. Some important points, which would help you in the claims procedure. •

The loss or damage should be reported to the insurer immediately.

•

On receipt of claim intimation, the insurer will forward a claim form.

•

Submit the completed claim form along with an estimate of the loss to the insurer. It is preferable to submit an itemized estimate with separate values.

•

The insurer will arrange for inspection of the damaged items to assess the loss. In case of major losses, a specialist-licensed surveyor is deputed.

•

The insured has to provide the required documents to substantiate the extent of loss.

•

In case the cause of loss is not established, it is for the insured to prove that the loss or damage has occurred due to an insured peril.

•

On agreement of claim amount between the insured and the insurer, the claim is settled. Excess as stated as per the Policy terms and condition will be deducted from the claim payable.

In view of varied nature of policies, certain points distinct to individual policies, in addition to the above, are listed below: (Please note that the documents mentioned are indicative and based on the circumstances of the claim, insurer may request for additional documents).

MEDISHIELD (FOR NON-CASHLESS CLAIMS) •

Notice of claim should be lodged within 24 hours to the nearest Branch/concerned Branch.

•

The insured should submit 'discharge summary' of the hospital/nursing home along with original hospital/medical bills, reports of the labs and investigation reports. In other words every item in the claim bill should be supported.

•

Leave certificate from the employer, wherever needed.

•

Fitness certificate from the Doctor.

THE IFFCO TOKIO NEWS LETTER IFFCO Tokio has initiated digital adversiting of its products (Motor, Health, Travel) on various high traffic websites like Rediff, Yahoo, in.com, IBN live, cricbuzz etc. The same was done during Elections and IPL. To ensure consistency in the initiative, the ads are continously on Carewale.com, Yahoo.com and Google search. A huge hit, the website is attracting over 1,5000 visitors and generating 200 prospective leads everyday.

Renewals and new policies are also issued

directly from our website.

IFFCO Tokio launches Micro Insurance month ITGI has decided to dedicate every month to a new aspect of insurance. The first three month of the year were celebrated as micro insurance months to motivate the agents and create awareness amongst the masses about various micro insurance products. Tamil Nadu, firmly established itself as the Leader in this phase of the celebration.

BARISH BIMA YOJNA RELAUNCHED ITGI has relaunched its successful weather inslurance policy for Kharif cropsBarish Bima Yojna (BBY) to protect farmers against anticipated deficiencty in crop yield due to both deficit and excess rainfall. Previously, the product covered the risk from both deficit and excess rainfall in the six States or Orissa, West Bengal, Tamil Nadu, Gujarat, Maharashtra and Rajasthan (Kota, Jhalawar and Baran). In Punjab, UP, MP< Chhattisgarh, Andhra Pradesh and some districts of Rajasthan, BBY will cover farmers from deficit rainfall alone.

MEDICLAIM INSURANCE IN INDIA Mediclaim for family Everybody is well known the profits of having a mediclaim policy. A sudden sickness or accident can ruin your financial budget and at this stage mediclaim policy is always helpful. In the current scenario, medical expenses are very high and its increasing everyday. The latest family mediclaim insurance is ideal solution to save money and cover entire family under single sum insured. This means no more multiple premiums and no more financial strain. This policy is available in two variants - short term and long term and the coverage level is similar like other traditional mediclaim policies. It provides covers for hospitalization expenses for illness and diseases. It includes expenses for doctors fees, nursing expenses, medicines, blood, surgical appliances and other related expenses.

Mediclaim Premium Calculator Mediclaim policy is a essential for the peoples because it saves financial loss in case of hospitalization for any sickness, disease or accident. But it costs is much higher than other insurance and still it is rising. Mediclaim premium calculator is very useful tool in such a condition because it helps to calculate the your mediclaim costs. This online service is absolute free and specially designed for customer convenience. There are various mediclaim premium calculators are offered by insurance companies and private websites. You can easily determine the cost of plan that you go for by doing just simple work on such a calculator. Private websites also allows you to compare various insurance companies and their plans.

Must-know-the-types-of-coverage-mediclaim You may have come across many a time with the short forms in mediclaim articles/quotes like HMO,PPO,POS,HSA, but could not make it, what the abbreviation stands for? There are many types of health/mediclaim policy. A) HMO (Health Maintenance Organization). You go to your family doctor for any health services. If there is an urgency in going to a specialist, your family care doctor will help you in referring one. Mediclaim companies will not insure you without the referral from your family doctor and therefore, you will have to pay yourself for such specialist services B) PPO (Preferred Provider Organization Plan). Through this plan you can analysis to any primary, specialist, or medical facility without referral and get totally covered. It is the Mediclaim companies that covers you

when your child breaks a bone accidentally and you approach directly to the orthopedic doctor, without consulting your primary doctor. C) POS (Point of Service). This plan essentially includes both an HMO and a PPO plan. Mediclaim companies give you the option from the two plans for every medical case. The plan offers extra covered preventative programs, however, you may have to pay more from your pocket, if you choose a doctor outside your plan. D) HSA (Health Savings Account). This plan is much more superior than the above mentioned mediclaim plans. The plan covers eyeglasses, dental, cosmetic procedures, over-the-counter medications, etc. It is a tax-deferred savings account as long as withdrawals are concern for medical expenses. Funds outstanding at the end of the year are carried forward into an IRA account.

What does mediclaim policy cover! Day-care Treatment- The Medical disbursement through serious technologically advanced day-care surgeries with no 24 hour hospitalisation is required. Ambulance Charges for shifting the insured patient from home to hospital are been covered up to the limits mentioned in the policy. Ayurvedic / Homeopathic system of medicine are covered to the extent of 25% of Sum Insured provided the treatment is taken in the Government Hospital. Pre-existing diseases are covered only after 4 continuous and claim free renewals with our Company.

Exclusions: 1. Diseases contracted within 30 days of insurance. 2. Dental treatment except arising out of accident. 3. Debility and General Run Down Conditions. 4. Sexually transmitted diseases and HIV (AIDS). 5. Circumcision, Cosmetic surgery, Plastic surgery unless required to treat injury or illness. 6. Vaccination and Inoculation. 7. Pregnancy and child-birth. 8. War, Act of foreign enemy, ionising radiation and nuclear weapon. 9. Treatment outside India. 10. Naturopathy. 11. Domiciliary Treatment. 12. Experimental or unproven treatment. 13. All external equipments such as contact lenses, cochlear implants etc. Premium: Mediclaim Premium is based on age of the proposer and geographical area of treatment. Features: 1. Discount in premium for family cover. 2. Loyalty Discount. 3. Good Health Discount. 4. Cumulative Bonus. 5. Cost of Health Check up. 6. Income Tax Benefit under Section 80D of IT Act.

Short Term Mediclaim Policy Mediclaim insurance is a meant to covers all medical expenses in the case of hospitalization due to certain serious sickness, disease or an accident. For this reason mediclaim insurance is always advisable for yourself and your family members. But some times you can not require that the purchase of high cost mediclaim insurance policy. Short term mediclaim insurance have been formulated for such a conditions to get the considerable medical coverage. Short term mediclaim insurance policy is a temporary solution and purchased for only short period of time that is three months to one year. Generally, it covers all major health problems like other standard health plans. This gives you freedom to choose doctor or specialist you wish and the expenses are covered under this policy like doctors fees, hospital charge, surgery, medicine, diagnostic test and other emergency service. This short term plan is affordable plan and it doesn’t cover any pre-existing disease, because the premium costs are considerably ow and paid on monthly basis. It provides only cover for the conditions stands which itself within the span of the policy. Short term medical insurance cover is ideal for those under the jobs, temporary employee, college students or just graduates.

Mediclaim for senior citizens Special mediclaim policy for senior citizens is specially designed to cater the needs of senior citizens. It covers all hospitalization and domiciliary hospitalization expenses for illness and disease. It includes expenses for doctors fees, hospital charge, anesthetist, nursing expenses, blood, cost of medicine, drugs, oxygen, surgical appliances, etc.

This mediclaim policy is generally issued to peoples between the age of 60 to 80 years. It provides the benefits of cumulative bonus, no claim bonus, cashless service and also tax benefit is consider on insurance premium under section 80D of the income tax act. The four public sector general insurance companies are offering these policies1. National Insurance Company (Varishta-Mediclaim for senior citizens) 2. New India Insurance Company ( Mediclaim for senior citizens) 3. Oriental Insurance Company ( Senior Citizen Specified Disease Insurance) 4. Star Health & Allied Insurance ( Red Carpet Health Insurance) And private sector insurance company Bajaj Allianz General Insurance Company also offer ‘Silver Health’ product for senior citizens.

Mediclaim Premium Rates When you have decided to go for mediclaim policy, you will pay the premium on your mediclaim policy to continue the coverage against any untoward situation. The premium paid is annually, half annually or monthly. Generally, the premium rates are vary from company to company and also depends on various factors like age of the person, sum assured and policy coverage. The insurance companies also determine the factors like advertising, selling, paying for health care service, investment of premium payment and profit margin from the insurance policy. The premium rates are different for smokers, the insurance companies charge additional premium on their mediclaim policy. Premium charged on individual plan is much higher compared to group plans due to adverse selection. Because under group plans, company gets the more customer under

one roof and company determine the customers will generally be in good health condition.

Basic Mediclaim Policy Basic mediclaim insurance is a different comared to other traditional mediclaim policy. It is a specified mediclaim policy which provides coverage against medical expenses that are outcome of the sickness or accident. In this plan, coverage is limited and pays for only one or two expenses which are specified by the insured. This is the reason, policy is known as basic mediclaim policy. This insurance policy is different compared to other comprehensive mediclaim policy. Because1. Doesn’t covers critical illness and surgeries. 2. Low cost insurance cause less coverage. 3. Specified coverage from the list. Mediclaim protects from the monetary and financial problems when one is hospitalized by sickness. But choice is yours to choose between comprehensive health coverage and specified health coverage.

MEDICLAIM INSURANCE Mediclaim Insurance is a policy that covers hospitalisation expenses gathered in course of illness or accidental injuries. Benefits: 1. Hospitalization Cover: Overall patient hospital-care expenses for 1Day. Which Includes room rent and boarding @ 2% of sum insured. 2. Nursing disbursal. 3. Doctor’s fees 4. medicines and drugs charges. 5. Emergency ambulance charges. No-Claim Discount: 1. 5% to 25% of discount for every claim-free year. Eligibility: 1. A persons ageing 5 months and 80 years, is a resident of India,can opt this insurance. Tax Benefits: 1. Credit card or cheque pay premium for this insurance is eligible for relief under Section 80D of the Income Tax Act. Claims Procedure: 1. Inform the ID number to the insurer for easy acknowledgment. 2. In case of getting hospitalized,should inform within 24 hours before getting admitted into the hospital. 3. If the case is emergency, information to be given within 24 hours after hospitalization.

Tax benefits on your Mediclaim Policy There is no way anyone can save themselves from paying tax. But yes we can sure use various tax-saving instruments to lower down our tax payment burden and get maximum benefit from these. Mediclaim is one way of saving our huge heap of tax burden, we just need to be smart enough to grab the right opportunity. 1. Insurance premium paybale on health insurance policy is tax deductible under Section 80 (D) of the Income Tax Act 1961. 2. Rs. 15000 can be claimed to be deducted on health insurance under Section 80 (D) 3. Deduct premium paid towards a critical illness rider on your life insurance policy under Section 80 (D). Deductions under Section 80 (D) are over and above the deductions under Section 80(C) of Rs. 1 lakh.

of N e w In di a A ss ur an ce C o m pa ny on gr ou p M ed icl ai m

RESEARCH METHODOLOGY The research undertaken was that of a descriptive type. Descriptive research aims at fact finding and more often is based on surveys. Its purpose is to describe the present state of affairs of the topic of study. It is often referred to as post-facto study.

DATA COLLECTION PRIMARY DATA In case of primary sources the information was retrieved directly from the customers and sales consultants. We have done the analysis with the help of the inputs provided by the customers of the products of the insurance companies. The primary data is collected through conducting a survey with the help of a questionnaire designed by me. In the Bank, customers were approached and detailed responses were taken and their future interest in insurance and suggestions for the company were duly recorded. For the other subsidiary projects, the promotion and sales were done at the showroom itself while the interaction that took place for filling the questionnaire. The prospective customers for health insurance were contacted through Tele-calling and thereafter converting the call into sales. DATA COLLECTION TECHNIQUES SURVEY By this method of data collection more accurate and reliable information on the subject can be obtained. In order to get aware of the customer behavior, we designed a questionnaire which would help us extract maximum information so

as to analyze the factors that play a decisive role in customer’s choice of an insurance company. CALLING After getting the customer details from the questionnaires filled them, the prospective customers for health insurance were called & sales were done.

SECONDARY DATA Secondary data was collected from books and the internet.

RESEARCH APPROACH The product portfolio of IFFCO TOKIO is wide. Following are some methods, which have been taken in order to complete the project and make it successful: Understanding the basics of insurance Business and getting familiar with the product range of IFFCO TOKIO. Assessing the present situation of IFFCO TOKIO in motor insurance Business.

MAJOR COMPETITORS OF IFFCO TOKIO:  NEW INDIA  NATIONAL  UNITED INDIA  ORIENTAL  ICICI LOMBARD  BAJAJ ALLIANZ

Customer relationship management (CRM) is a customer-centric business strategy with the goal of maximizing profitability, revenue, and customer satisfaction. technologies that support this business purpose include the capture, storage and analysis of customer, vendon, partner, and internal process information. functions that support this business purpose include Sales, Marketing and Customer Service, Training Professional Development, Performance management, Human Resource Development and Compensation. Technology to support CRM initiatives must be integrated as part of an overall customer-centric strategy.

SWOT ANALYSIS OF IFFCO TOKIO G.I.C LTD. SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) is a wellestablished means of thinking critically about a business, its resources, and its environment. Doing an analysis of this type is a good way to assess a business and its markets.

STRENGTH WEAKNESS OPPORTUNITY &THREAT STRENGTH Brand Name

WEAKNESS

OPPORTUNITY

Lacking in

To reach the good

customer retention

services

THREAT Competitive Prices

to high premium Continuous

rate. Lack customer

Huge untapped

leads to higher

Innovation Wide product

orientation Lack in Follow-ups

Potential. Customers value

competition. Cut throat

quality the most.

competition with

portfolio.

Bajaj Allianz & ICICI LOMBARD.

COMPARISON OF RATES OF IFFCO TOKIO WITH OTHER COMPANIES.

CONCLUSION • Continued strength in the broader economy and gradual reform in the non life sector are expected to combine to produce strong premium growth in the Indian market over the next few years. • Whilst India currently remains a medium sized non -life market, the growth predicted over the medium to long term is attracting increasing levels of foreign investment and competition. Many of the world’s largest insurers such as AIG, IFFCO TOKIO & ALLIANZ are present in the market. The new private insurers are growing fast and have already developed a combined market share of 40 %. • As the market is liberalized and becomes more mature the private firms are considered well placed to capture an even greater share of a fast growing market. The main risk to private insurers is the high likelihood of sustained price competition as tariffs are removed from some classes of business such as fire, engineering motor etc. In the end, notions about exactly what constitutes good customer service are evolving, driven by increasingly knowledgeable customers who have become empowered by their own willingness to embrace technology and use it to their benefit. As insurers begin to demonstrate a commensurate willingness to capitalize on technological advances, advisory, transactional and informational services will be adapted to deliver service that not only offers higher levels of customer satisfaction, but delivers opportunities for insurers to grow revenue and profitability. Self-service may be expected to become the customer’s avenue of first transactional choice, as Web-based channels provide 24 X 7 availability, security

is tightened and interactions become faster, easier to initiate and more tailored to personal needs Successful insurers will define good customer service strategically, not tactically. Each customer service event will be seen as a way to increase loyalty, anticipate related client needs for the benefit of cross-selling and increase revenue. In addition, insurers will have the ability to understand a customer’s long-term value and provide personalized service to help realize it.

RECOMMENDATIONS During my course of training, I have observed few leaps at the company’s end so will like to recommend the following:  COMPETITIVE PRICING :  IFFCO TOKIO should keep its rates in accordance to the market so as to pull more customers, without compromising the quality & making the product more saleable.  In order to have a grab in market, IFFCO TOKIO should provide quick & timely service specifically to its premium customers. It can adopt the strategy of providing premium service to premium customers.

 STRATEGIES FOR IMPROVING SALES PROMOTION OF IFFCO TOKIO :  IFFCO TOKIO should air it advertisements in the prime business channels like CNBC TV 18 and NDTV PROFIT.The company instead of having a full fledged commercial can also use a running marquee on the new channels like NDTV,TIMES NOW and CNN IBN which will promote the company.  The company needs to become more buyer friendly and should revamp its customer grievances redressal system.  Work on gaining the untapped potential which is due to : • Lack of product knowledge & brand recall –the company should make the customer aware about its product portfolio by having an effective Tele calling service system.

• Absence of a customer centric approach- the company should work on being more buyer friendly.  Marketing support should be provided to distribution channels.  Strengthen Banc assurance – An integrated Banking & Insurance business.  Organize advertising campaigns emphasizing on policy features, benefits & service levels rather than price.  Improve its Process Efficiency. This can be done by shortening the policy issuance cycle.  Expanding the business through effective agents ,advertisements  Agents form a crucial link between the insurer and the insured thus, they should be given additional benefits other than commissions.  Spreading insurance knowledge among the people, focus on rural areas. There lies a huge potential in rural areas with increase in agri business and their purchasing power.  Technology can play a crucial role in delivering the highest standards set by the company an it will be imperative for any serious player to excel in all this.  Bringing new innovative product offerings in the market with good benefits and service standards.

LIMITATION OF THE STUDY As each study do we have some benefit and some scope , there is one more thing which is mostly found in any research work and that is limitation .Limitation are the restricting factor encountered during the research study , it does have some limitation , which was present during the course of study and are the following: •

Due to some of the customer was not ready to respond.

•

The degree of brand awareness is not the mark.

•

Allowances of the and the cost as well.

•

Reserve nature of customer.

•

Transparency.

•

Penetration.

BIBLIOGRAPHY: •

www.iffco-tokio.com

•

www.google.com

•

The Economic Times

•

www.gicofindia.in

•

www.irdaindia.org

•

www.insuranceage.com

•

www.itgi.in

QUESTIONNAIRE COMPANY NAMENAME ADDRESSTELEPHONE NOAGE

OCCUPATION

INCOME

15-25

student

0-5000

25-35

Employee

5000-1000

35-45

Businessmen

1000-15000

45-above

Professional

15000-above

Q.1 Have you heard the name of IFFCO TOKIO ? (a) Yes

( )

(b)

No

(

)

Q.2 Whether Insurance Taken ? (a) Yes

( )

(b)

No

(

)

Q.3 If yes who is the insurer ? (a)

ICICI

(d) IFFCO TOKIO (g)

(b) Bajaj Allianz

(c) National

(e)

(f) Any Other

New India

United Insurance

Q.4 Policies taken ? (a) Fire

( )

(c) Medisheild (e) Any Other

(b) Buglury ( ) ( ) (d) Personal Accident ( )

( )

Q.5 Have you ever had any claim ? (a) Yes

( )

(b) No

( )

…………………….. Q.6 Would you like to change your insurer ? (a)

Yes

(

)

(b) No

( )

Q.7 What is your expectation from the non-life Insurance company?

Reason……