New Edited Project
New Edited Project
New Edited Project
1.2:INDUSTRY PROFILE:
Service industry is an industry made up of companies that primarily earn
revenue through providing intangible product and services.
Service industry are involved in retail, transport, communication, finance,
public administration.
IFFCO-TOKIO GENERAL INSURANCE COMPANY LIMITED related to
the “SERVICE INDUSTRY”.
1.3:TYPE OF SERVICE:
The financial service industry manages money for individuals and
corporations. It comprises such organisations as commercial and investment
banks, insurance companies, consumer finance firm’s and brokerage firm’s.
Insurance industry in India is at the crossroads of development. Insurance
industry comprises of 57 insurance companies of which 24 are in life
insurance business and 33 are non-life insurers.
IFFCO-TOKIO GENERAL INSURANCE COMPANY LIMITED comes
under “FINANCIAL SERVICE” in which it belong to “INSURANCE
INDUSTRY” of “NON-LIFE INSURANCE BUSINESS”.
1.4: FINANCIAL SECTOR IN INDIA:
Gross premiums written in India reached Rs 5.53 trillion (US$ 94.48 billion)
in FY18, with Rs 4.58 trillion (US$ 71.1 billion) from life insurance and Rs
1.51 trillion (US$ 23.38 billion) from non-life insurance.
In FY19 (up to Jan 2019), premium from new life insurance business increased 3.91 %. In
FY19 (up to Jan 2019), gross direct premium of non-premium of non-life insurance reached
Rs 1.39 trillion showing year-on-year growth rate of 12.65%.
The insurance industry of India consists of 57 insurance companies of which 24 are in life
insurance business and 33 are non-life insurers. Among the life insurers, Life Insurance
corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers. In addition to these, there is sole national re-
insurer, namely, General Insurance Corporation of India (GIC Re). Other stakeholders in
Indian Insurance market include agents (individual and corporate), brokers, surveyors and
third party administrators servicing health insurance claims.
CHAPTER 2
ORGANISATION PROFILE
2.1: BACKGROUND:
IFFCO-TOKIO General Insurance was incorporated in 2000, as a joint venture between the
Indian Farmers Fertilizer co-operation (IFFCO), which is one of the world’s biggest
cooperative society, and Tokio Marine Group, which is also the largest listed insurance group
in Japan. IFFCO holds 51% in the company and remaining held 49% held by Tokio Marine
group.
The company offers comprehensive product bouquet of all lines of business such as Car
insurance, Two-Wheeler Insurance, Health Insurance, Travel Insurance and Home Insurance,
including corporate policies such as property insurance and liability insurance. It was the first
company in India to underwrite mega policies for fertilizers and an automobile company. It
offers niche products such as Cyber Insurance, Credit Insurance, Fine Arts Insurance, P & I
Insurance, Error and Omission Policy for the IT sector etc. It has steadfastly carried out its
rural centric initiatives by launching products like Sankat Haran BimaYojana, Mahila
Suraksha BimaYojana and BimaYojana for the masses.
IFFCO Tokio has wide presence in rural area and Tier B & C cities. It was the first insurer to
establish BimaKendras, which are single person operated centres, to increase insurance
penetration in rural area.
IFFCO-Tokio is one of the leading insurance policy companies in India. IFFCO-Tokio offers
the best motor vehicle insurance policy to protect vehicles from every possible risk. To
protect you from any unforeseen situations that can occur at any time, IFFCO-Tokio as a
wide range of motor insurance policies that will not only protect your tangible asset, but will
safeguard it throughout from unexpected occasions as well.
Policy offered by IFFCO-Tokio:
SwasthyaKavach Policy:
IFFCO-Tokio provides a coverage for Per Hospitalization and Post Hospitalization medical
express and also coverage on room rent expense including hospital registration/service
charges, etc..
Travel insurance is a type of insurance policy that covers the costs related to a single trip or
multiple ones. IFFCO-Tokio provide less premium to everyone which is affordable plan.
They have quick processing time to claim the insurance. The company offers instant digital
plan signed documents which is at IFFCO-Tokio company office, website and POS centres.
The basic things that the best home insurance plans cover are:
Covers the property in case it gets damaged in the event of a theft or a fire.
Covers any liability exposure, like a third party getting injured on the property.
LIABILITY INSURANCE:
IFFCO-Tokio offers wide range of liability products- Public Liability (third party injury or
property damage) from industrial and non-industrial operations, product liability, professional
indemnity and D&O liability.
Directors & Officers Liability Insurance
Product Liability Insurance
Professional Indemnity Insurance
Public Liability Insurance
Public Liability Industrial & Storage Insurance
Public Liability Non-Industrial Insurance
MARINE INSURANCE:
IFFCO-Tokio provides with indemnity and financial protection for loss of or damage to your
cargo during transit. Cargo may be carried by Sea, Air, Rail and Land.
Contractors All Risk Insurance & Contractors Plant and Machinery Insurance:
It is designed to protect the interest of the contractors against the damage to or destruction of
the various civil engineering project like dwellings, office, hospitals, tunnels, cannels and
also accidents damage to civil construction works, contractors plants and machinery at the
construction site.
The business products is designed to meet the business needs across the commercial
spectrum.
Burglary Insurance:
This policy covers the risk at factories, offices, warehouse, shops and occurrence like
housebreaking, dacaity, robbery etc. which can bring a huge financial loss to business.
Money Insurance:
Money in Transit whilst being carried by an authorized representative by robbery, hold up or
any other fortuitous cause. Its also covers Loss of or damage to your Safe, Strong room or
Cash boxes or franking machines or cash bag or waist coat when such are used for the
'carriage of Money subject to a maximum of Rs. 10,000.
Workmen's Compensation:
The workmen’s compensation insurance is the primary method by which an employer can
demonstrate the ability to satisfy the obligations imposed by the worker’s compensation
statutes.
CORPORATE HEALTH:
IFFCO-Tokio offers covers for employees and their family members from hospital and
medical expenditure that accompany an illness or accident.
Tractor Insurance:
Safeguarding of farming tractor against all possible damages and provides all around
protection.
PashuDhanBimaYojna:
This online rural insurance policy is designed to offer insurance cover to indigenous cattle
owned by farmers, cooperative societies, dairy farms.
Credit Insurance:
Credit insurance protects the companies against customer defaults. It covers the sales of the
companies to its buyers on credit against the risk of loss due to the insolvency of their
customers.
2.5.2: FAQs-GENERAL:
In this the customers can ask the question which the customers wanted to ask to the company
like
Where is IFFCO-Tokio corporate office located?
What is the meaning of insurer?
What is the meaning of insured?
ESCALATION LEVEL 1:
If the customer is not satisfy by the services of the company, the customer can lodge the
complaint against the company by email to the designated Grievance redressal office (GRO)
which is located in the area of the customer.
ESCALATION LEVEL 2:
If there is lack of response or if the resolution still as not met the expectation of the customer,
they can write to the Chief Grievance Officer.
ESCALATION LEVEL 3:
Within 28 days of lodging the complaint if the customer has not got the satisfactory response
from the company, the customer can approach the Insurance Regulatory & Development
Authority of India or the Insurance Ombudsman.
MOBILE PORTAL:
Motor policy can be renewal through mobile phone
AT A BRANCH:
Customer can visit the branch to pay the premium of their policy
BY POST
The customer can mail the cheque or draft to the branch address and the can pay through
paytm, google pay and bhima app
IFFCO-Tokio is at fourth-largest private general insurer in India and aims to maintain their
position among the top five private insurers. IFFCO-Tokio is aiming for 9,000 crores Gross
Written Premium (GWP) in the current year.
IFFCO-Tokio have an omni-channel distribution network to reach and cater to the customer’s
preferred options. With the new bancassurance guidelines, the company is exploring major
banks for a tie-up linked to the company need-based products and the wide presence. IFFCO-
Tokio have 200 co-operative banks as its partner.
Digital platform(sales): Were the customer by using the digital platform they can renewal
their different kinds of policies.
Quick claim settlement: IFFCO-Tokio is using AI chat bots to improve the overall customer
experience and enhance the customer journey. The chat bot Ira live in the website to
download the motor insurance policy. The customer can renew motor policy through chat
bot. The company also use AI tools to improve the turnaround time of claims by automated
assessment of claims. They use machine learning tools to ensure paperless claims for motor
and health claims and pre-authorisation approvals.
IFFCO-Tokio is aiming to reach the Tier 2 & 3 cities in India like taluks. The company is
also planning to open their branches more then50.
2.9: CORPORATIVE SOCIAL RESPONSIBILITY:
IFFCO Tokio believes in Creating Shared Value, or CSV which is based on the idea that
corporate success and social welfare are interdependent.
We are committed to the growth and development of the rural and social sector, fulfilling its
social responsibilities above and beyond the prescribed regulatory obligations. We have a
fully dedicated rural team working to overcome challenges like low awareness, general
apathy towards insurance, high distribution and development costs and low profitability. Our
innovation goes beyond product development to the real task of effectively delivering the
product to its target population. This is done through the following means:
Cooperative societies
Micro- insurance agents
Cooperative banks
BimaKendras
To make our customers also part of the CSR initiative we are offering Pollution Check
reminder service and Health Tips. Their welfare is of outmost importance to IFFCO Tokio.
CHAPTER 3
Mc-KENSY’S 7S FRAMEWORK
The main objectives of this model are to analyse how well an organisation is positioned to
achieve its intended objective.
SYSTEM STYLES
STRATEGY STAFF
SKILLS
3.1: STRATEGY:
Strategy are the plan devised to maintain and build competitive advantage over its
competitors.
IFFCO-Tokio invested in futuristic technologies is akin to investing in the future business.
IFFCO-Tokio is the first company to use the technology in terms of claims like AI (Artificial
intelligence), ML (Machine Learning), RPA (Robotic process automation) and block chain
over its competitor.
IFFCO-Tokio provides insurance ranging from office, motor, health, home, accident and
travel then of its competitors. Experts in Marine, Bank locker, Megha risk, Liability line of
business.
IFFCO-Tokio uses quick claim settlement, were they tie up agents and the agent tie-up with
motor garages. The customer can click the photograph from the spot directly from mobile
app. Upon receiving the photographs the garage provided the repair estimate, which helps the
company to get more numbers of customers then its competitors.
It even use the strategy by handling 1500 claim invoice on a daily basis.
The main strategy of IFFCO-Tokio is to tie-up with the banks to drive the competitors from
the competition.
They even launched protect bank locker policy.
IFFCO-Tokio uses prosperity matrices which help the management in opening more offices
in those area where affluence levels are higher.
3.2: STAFF:
This presents a brief about the employees and their general capabilities.
The staff within the organisation are highly equipped and with rich experience in this field of
insurance, the senior employees are given the major roles and responsibility. Every branches
has been allotted with the managers who guides and instructs his/her branch.
Directors – 2
DGM – 1 in marketing department.
ED – 1 in underwriting department.
EVP – 4 in marketing department, 5 in state head, 2 in claim department, 1 in underwriting
department
VP – 5 in marketing department, 6 in state head, 1 in claim department, 9 in CSC, 1 in
underwriting department.
DGM – 3 in underwriting department
GM – 2 in marketing department, 2 in state head, 4 in claim department, 2 in CSC head, 2 in
underwriting department.
No of employee working in IFFCO-Tokio is 1001-5000
3.3: STYLE:
The leadership style adopted by the company.
IFFCO-Tokio follows democratic style of leadership, where the growth and marketing related
decision are all made based on the opinions and suggestions from theco-employees.
The leaders of the company gives the freedom of expressing the opinions to the employees
and take the valuable suggestion into consideration before decision making.
IFFCO-Tokio also follows autocratic style of leadership, where the company makes decision
without the input of the employees related to the finance, authority and risk acceptance
authority.
In autocratic leadership the employees are neither considered nor consulted in decision
making in related to these.
3.4: SKILLS:
Skills are the actual skills and competencies of the employees working for the company.
Manager
IHS
Renewal in-charge
Customer service and client relationship skills are equal important. The graduates with
logical, methodical approach and the potential to understand the vital elements of risk.
3.5: SYSTEM:
System are the daily activities and the procedures that staff members engage in to get the job
done.
IFFCO-Tokio is an organisation with a qualified team of professionals working together,
sharing views and ideas with passion to accomplish a common goal “ To be an industry
leader in India”. The business environment they work in is dynamic with a high degree of
competition. To achieve the goal in such a situation, they must constantly challenge
themselves to higher levels of individual and group performance and thus, performance
management becomes a key organisational priority.
The management can get a clear insight on organisational talent by some of the key results:
Goal setting process completion:
IFFCO-Tokio complete the goal setting process for all employees across the country within
15 days. The average time taken by the employee and manager to complete the process is
now reduced to 3 hours. Earlier the time was more than 2 days. The jump in time is attributed
to the huge repository of the smart goals available within Empxtrack.
Employees are given their target at the beginning of the financial year in their respected
employee portal. The employees are required to update the work done by them in the same
portal everyday, on that data their performance are analysed and given performance appraisal.
MIS report:
The management report is created in a 1 day with the 100% of accuracy and premium collect
will be entered into the system.
3.7: STRUCTURE:
Structure defines the division of activities, integration and the co-ordination mechanisms that
exist within an organisation.
The organisation is subdivided into 3 department, namely Marketing department, Claim
department & Underwriting department/operation.
MARKETING DEPARTMENT
STATE HEAD
CLAIMS DEPARTMENT
CSC HEAD
UDERWRITING DEPARTMENT
PORTERS FIVE FORCE MODEL:
Porter’s 5 force is a model that identifies and analyses five competitive forces that shapes
every industry, and helps determines an industry’s weaknesses and strengths, the Porter’s five
forces model for IFFCO-TOKIO GENERAL INSURANCE COMPANY LIMITED is as
follows.
Power of
Customers
Threats
Intensity
from
suppliers
of Powers of
Suppliers
Rivalry
Threats of
Market
Entry
Threat from New Entrants:
The threat of new entrants is Low Moderate (medium) force to financial companies.
Other insurance companies can enter the industry.
Overall threat is medium given that entry is subject to license and regulations. As the license
and regulations are strictly enforced by IRDA making it a not-so-easily-accessible market for
private players to enter.
An organisation with enough financial banking and a brand name can establish.
As IFFCO-TOKIO being the most trusted and go-to-brand.
Degree of rivalry:
With 52 players in the area, the competition has heated up.
The consumer having multiple choices to choose from the competitors.
It difficult for the IFFCO-TOKIO general insurance company limited to earn sustainable
profits and retain the customer, capturing the new customers.
The company is competing on price and using moderate price and high returns strategy for
customers to lure them.
CHAPTER 4
SWOT ANALYSIS
The process of corporation diagnostic usually beings with SWOT Analysis. The SWOT
analysis assists the top management in integrating the organisation with its environment.
SWOT is a tool for analysis of a company’s or any organisations internal and external
environment where the internal analysis is done keeping in view the Strength and Weakness
and the external analysis is done through the Opportunity and Threats of the concerned
Organisation. This analysis of SWOT helps the marketer to focus on main key drives and
issues in any market.
Strength Weakness
SWOT
Opportunities Threats
4.1: STRENGTHS:
Strength describe the positive attributes, tangible and intangible, internal to the company.
IFFCO-Tokio drives strong managerial, operational and funding support from parent
companies.
IFFCO-Tokio has established tie-ups with most large automobile manufactures, which
support its motor insurance business.
IFFCO-Tokio has a comprehensive risk management policy and framework to ensure all
material risks that may affect the company are identified, assessed and monitored periodically
and reported to the management in a structured manner.
The company has also laid down adequate controls to mitigate business risks such as the risk
of loss due to inadequate pricing, reserving or reinsurance protection.
IFFCO-Tokio uses the technology like AI (Artificial intelligence), ML (Machine Learning),
RPA (Robotic process automation) and black chain.
IFFCO-Tokio uses quick claim settlement where the claim by the customer is more easy.
IFFCO-Tokio has tie-up with 50 banks
Digital sales is one of the strength of the company.
99.8% of the debt investments are in government securities.
4.2:WEAKNESS:
4.3:OPPORTUNITIES:
4.4: THREATS:
CHAPTER 5
ANALYSIS OF FINANCIAL STATEMENTS
The objective of financial statements is to provide information about the financial position,
performance and changes in financial position of an enterprise that is useful to a wide range
of users in making economic decision.
The financial statement analysis is done in reference with the Balance sheet and as provided.
The analysis is made using the following ratio:
Current ratio
Liquid/Quick ratio
Absolute liquid ratio
Proprietary ratio
Price earning ratio
CURRENT RATIO
0.3
0.2856
0.25
0.2
0.1846
0.15
0.1466
0.1
0.05
0
2017 2018 2019
CURRENT RATIO
The quick ratio shows a great in 2018 however there a drop over in the year 2017 & 2019. A higher
quick ratio means a more liquid current position.
QUICK RATIO
0.3
0.25 0.2707
0.2
0.15 0.1764
0.1396
0.1
0.05
0
2017 2018 2019
QUICK RATIO
Absolute liquid ratio represent the company’s day-to-day cash management. In the year 2018 the
cash management of the company is comparatively high then 2017 & 2019. It shows that the cash in
the company is low.
ABSOLUTE LIQUID RATIO
0.045
0.04
0.0394
0.035
0.03 0.0319
0.025
0.02
0.015
0.01 0.0126
0.005
0
2017 2018 2019
Proprietary ratio tells the proportion of equity share is invested in the total asset. In the year 2017 &
2019 there was a high investment make in to the total asset. But in the year 2018 there was a less
investment made in the total asset.
PROPRIETORY RATIO
3
2.5 2.7603
2
2.0088
1.5
1.3465
1
0.5
0
2017 2018 2019
PROPRIETORY RATIO
PRICE EARNING RATIO = MARKET PRICE PER SHARE \ EARNING PER SHARE
The price earning ratio of IFFCO-Tokio has increased each year since 2017 as can be seen from the
following. A increase in the ratio are often considered as the growth of the company growth and have
a positive performance in the future.
PRICE EARNING RATIO
14
12 12.565
10
9.9032
8
4
3.9488
2
0
2017 2018 2019
LEARNING EXPERIENCRE
Four weeks of internship training at IFFCO-Tokio general insurance company ltd, Bangalore was an
enriching experience. The project work gave me an industrial exposure as to see how an organisation
function.
IFFCO-Tokio is gave a clear picture how an insurance company work. It helps me to understand how
to treat the customer, agents.
In IFFCO-Tokio company there was a trainingsession to the agents for claiming insurance through
online which gave me a lot of input regarding claiming the insurance in a easy way.
By analysing the financial statement it helps me to know that the company is tremendously growing
the insurance industry.
It also helps me to know the laws followed by the company, CSR activity done by the company,
SWOT analysis in practical and the awards they won for their work.
IFFCO-Tokio gave me an opportunity to learn the work in practical.
BIBLIOGRAPHY & ANNEXURE
BIBLIOGRAPHY: