CHAPTER 1

1.1: INTRODUCTION TO INTERNSHIP:

The objective of doing this “Organisational Study” for an MBA student is to
given exposure to observe, how an organisation functions and how its
managed throughout the given time frame, which would help the student to see
all the concepts that he/she had learnt throughout the course in practice.
The internship as prescribed by the university is scheduled from 8thjuly, 2019
and is extended for a period pf four weeks lasting till 8th august 2019.
This would facilitate a student in gaining experience and exposure him/her to
the organisation structure and to the corporate policies, ethics, culture
practices, procedure and facts about the working environment of an
organisation.

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%.

1.5: INSURANCE INDUSTRY IN INDIA:

Post-liberalisation, the insurance industry in India has recorded significant growth. The
Indian insurance industry is expected to grow to US$ 280 billion by FY2020, owing to the
solid economic growth and higher personal disposable incomes in the country. Overall
insurance penetration in India reached 3.69% in 2017 from 2.71% in 2001. Gross premiums
written in India reached Rs 5.78 trillion (US$ 82.8 billion) in FY19, with Rs 4.08 trillion
(US$ 58.5 billion) from life insurance and Rs 1.69 trillion (US$ 24.3 billion) from non-life
insurance.
Over FY12-18, premium from new business of life insurance companies in India have
increased at a 14.44% CACR to reach Rs 1.94 trillion (US$ 30.1 Billion) and non-life
insurance premium (in Rs) increased at a CAGR of 16.65%. In FY19, premium from new life
insurance business increased 10.73% year-on-year to Rs 2.15 trillion (US$ 30.7 billion).
Life insurance industry in the country in expected grow 12-15% annually for next three to
five years.
There are 24 life insurance and 33 non-life insurance companies in the Indian market who
compete on price and services to attract customers. There are two reinsurance companies.
 1.5.1: CONTRIBUTION TO GDP:
Gross Value Added (GVA) from Services sector is estimated at 92.26 lakh crore INR in
2018-19. Services sector accounts for 54.40% of total India’s GVA of 169.61 lakh crore
Indian rupees. The Insurance industry’s value added to GDP stood to 3.1%.

1.6: MAJOR PLAYERS:

 Aditya Birla Health Insurance CO. Ltd.
 Bajaj Allianz General Insurance Co. Ltd
 Bharti AXA General Insurance Co. Ltd
 Future General Insurance Co. Ltd
 HDFC ERGO General India Insurance Co. Ltd
 ICICI Lombard General Insurance Co. Ltd
 Kotak General Insurance Co. Ltd
 L&T General Insurance Co. Ltd
 Reliance General Insurance Co. Ltd
 SBI General Insurance Co. Ltd

1.7: CONTRIBUTION TOWARDS THE ECONOMY:

Insurance has had a very positive impact on India’s economic development. The sector is
gradually increasing its contribution to the country’s GDP. In addition, insurance is driving
the infrastructure sector by increasing investments each year. Further , insurance has boosted
the employment scenario in India by providing direct as well as indirect employment
opportunities.
Due to the healthy performance of the Indian economy, the share of life insurance premiums
in the gross domestic savings (GDS) of the households sector has increased. The increased
contribution of the insurance industry from the household GDS has been ploughed back into
the economy, generating higher growth.

1.8: MARKET SHARE:

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.

2.2: VISSION, MISSION AND VALUES:

2.2.1: VISSION STATEMENT:

To be the industry leader by building customer satisfaction through fairness, transparency and
quick response.

2.2.2: MISSION STATEMENT:

To win the trust of individuals, trade, industry and commerce and protect citizens, corporate,
cooperatives and international investors in India.
 2.2.3: VALUES STATEMENT:
IFFCO Tokio believes that healthy competition is the inherent basis for providing true value
to consumers and is committed to the growth and development of the Non Life insurance
sector via best practice and bench mark initiatives that enhance the consumer’s quality of life.

2.3: LAWS FOLLOWED:

 Insurance Act, 1938

 Insurance Regulatory and Development Authority (IRDA) Act, 1999 and the IRDA Rules &
Regulations
 The Motor Vehicle Act, 1988
 The Insurance Rules, 1939
 The Redressal of Public Grievances Rules, 1998
 The General Insurance Business (Nationalisation) Act, 1972
 Foreign Exchange Management (Insurance) Regulations, 2000
 The Insurance Laws (Amendment) Act, 2015

2.4: PRODUCT/SERVICE PROFILE:

IFFCO-Tokio offers a comprehensive products in all lines of business such as:

 Motor insurance
 Health insurance
 Travel insurance
 Home insurance
 Trade insurance
 Business insurance
 Micro & Rural insurance
 Specialty insurance

2.4.1: MOTOR INSURANCE:

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:

 Car insurance policy:

IFFCO-Tokio provide car insurance policy with benefits like zero depreciation cover,
coverage against natural causes.

 Commercial vehicle insurance:

Commercial vehicle insurance is an insurance policy which covers commercial vehicle
against different types of external damages, along with personal and third party liabilities.

 Two Wheeler insurance:

It provide financial cover against theft, physical damage and third party liability. The
company offers ‘No Claims Bonus’ up to two-wheeler.

 IFFCO-Tokio’s 24*7 On-Road Assistance:

It aadditional benefit that offered by a company as emergency services when the vehicle is
immobilized.

 Value Auto Coverage:

It a insurance avail for 360 degree protection when driving on the road.

2.4.2: HEALTH INSURANCE:

IFFCO-Tokio believes in providing the best health insurance plans to its customers. Be it a
serious illness, casualty, emergency, critical illness or hospitalization, with IFFCO-Tokioone
can be sure that it would stand by you through all tough time. The claim settlement ratio is
around 92% and there is a customer service portal that is available 24*7 for all days around
the year which boost of 99.93% of complaint resolution with a shorter turn-around time.

Types of Health insurance are:

 Senior Citizen Health insurance
 Family Health Plan
 Individual Health Insurance Plan
 Critical Illness Insurance
 Personal Accident Insurance
 Preventive Healthcare
 Covering Pre-Existing Diseases

The policy offered by IFFCO-Tokio company are:

 Family Health Protector Policy:

 IFFCO-Tokio provides coverage for whole family at an affordable premium. It is a
safeguarding the whole family from the financial burden in times of medical exigencies.

 Individual Health Protector Policy:

This policy provides a health protection cover for insuree and his/her family. It provides
coverage for ambulance charges, coverage for critical illness and emergency assistance
service.

 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..

 Individual Medishield Policy:

IFFCO-Tokio provides a coverage for nursing expenses and other related fees and also the
coverage for hospitalization expenses of anybody donation an organ to the insured person.

 Individual Personal Accident Policy:

The company provide a coverage for uncertain times with individual personal accident.

 Critical Illness Insurance Policy:

IFFCO-Tokio provides a coverage for the critical diseases like cancer, kidney failure, coma,
stroke etc.

 Health Protector Plus Policy:

The policy covers hospitalization expenditures, and offers coverage to the insuree and his/her
family against high medical costs.

2.4.3: TRAVEL INSURANCE:

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.

Policy offered by the company:

 Overseas Travel Insurance Policy:
 PravasiBhartiyaBimaYojna

IFFCO-Tokio provide coverage in travel insurance policies:

 Complete Protection
 Personal Accidents
 Loss of Baggage
 Passport Loss
 Health Cover
 Dental Treatment
 Hospital Daily Allowance
 Baggage Issues
 Hijack Distress Allowance
 Financial Emergencies

2.4.4: HOME INSURANCE:

Home insurance is an insurance product that helps protect your house and property. IFFCO-
Tokio house insurance policy protect house as well as the belongings that are kept inside.

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.

The policy offered by company:

 All In One Home Protector Policy:

The policy offers protection to insure home and households assets.

 Home Suvidha Policy:

It is a policy to insure the safety of insuree home and belongings. It provide a coverage
against natural calamities like fire, explosion, earthquake, flood and coverage against
manmade calamities like robbery, dacoity, riots, strike etc.

 Home Family Protector Policy:

It a comprehensive home protector insurance policy that provides a numerous benefits under
a single insurance plan. This policy is design to protect the home and belongings from any
crime, natural disaster or manmade disaster.

2.4.5: TRADE INSURANCE ( TRADE SUVIDHA POLICY ):

This policy helps to safeguard office and helps financial bear any damages caused to it. The
policy will reimburse the damage happen to the office.
Policy offered by company:

 Bank Locker Policy:

 The policy offers seven options of sum insured ranging from Rs 3-40 lakhs. It provide a
coverage for jewellery and other valuables kept in a bank locker.

 Trade Suvidha Policy:

It is insurance plan that offers extensive coverage against a vast array of perils that may affect
the business.
The features of this policy are:
o Fire and Allied perils
o Burglary and Allied perils
o Money related perils
o Personal Accident
o Fidelity Guarantee
o Electronic Equipment

 Trade Protector Policy:

This policy helps the business tides over such risks and unexpected events.

2.4.6: BUSINESS PRODUCTS:

IFFCO-Tokio provides the policy that protect Business and Employees from all the risk with
Business Insurance solutions.

 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.

 Marine Cargo Insurance:

It deals with insurance of goods in transit through following modes of transport are sea, rail,
road, air, inland waterways and post parcels.
 SagarBandhuBima Insurance:
The Indian market currently provides cover for Hull and Machinery of inland/coastal vessels
as per institute time clause hulls 01.10.1983. It is covering the H&M this clauses also
provides cover for 3/4th collision liability.

 PROPERTY ( FIRE & ENGINEERING ) INSURANCE:

 Boiler and Pressure Plant Insurance:

The policy that covers physical loss or damage to all types of boilers and other pressure
plants where steam is being generated.

 Consequential Loss (Fire) Insurance:

The consequential loss (fire) policy covers Loss of Gross Profit and/or increase in cost of
working due to reduction in turnover/output due to operation of peril covered in the Standard
Fire & Special Perils Policy.

 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.

 Electronic Equipment Insurance:

This policy is designed for computers, medical, biomedical, microprocessor and audio/visual
equipment including the value of system software.

 Industrial All Risk Insurance:

It covers for the industrial risk having overall sum insured of Rs 100 crores and above in one
or more locations in India. It not only covers the physical losses but also consequential losses.

 Machinery Breakdown Insurance:

The policy covers unforeseen and sudden physical damage to any mechanical and electrical
machinery and/or equipment by any cause necessitating repair and or replacement.

 Machinery Loss of Profit Insurance:

Machinery loss of profit covers consequential loss suffered by insured as an inevitable
consequence of accidental breakdown of any machinery.

 Standard Fire & Special Perils Insurance:

Fire insurance policy is suitable for the owner of property, one who holds property in trust or
in commission individuals/financial institutions who have financial interest in the property.
All immovable and movable property located at a particular premises such as buildings, plant
and machinery, furniture, fixtures, fittings and other contents, stocks and stock in process
 along with goods held in trust or in commission including stocks at suppliers/ customer's
premises, machinery temporarily removed from the premises for repairs can be insured.

 OTHERS BUSSINESS PRODUCTS INSURANCE:

The business products is designed to meet the business needs across the commercial
spectrum.

 Bankers Blanket Insurance:

IFFCO-Tokio’sbankers indemnity policy is available to protect bankers against loss.
Financial institutes and other organizations may opt for bankers indemnity insurance to
safeguard like money or securities belongings or held in trust etc.

 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.

 Industry Protector Insurance:

This policy gives a complete protection to the industrial units against a wide range of risks
and perils.

 Jewellers Block Insurance:

The policy protects against the stock, property in custody of insured, partners, employees,
directors etc.

 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.

 Office & Professional Establishment Protector Insurance:

Policy gives complete protection to the business against a wide range of risks and perils. By
opting for this single package Policy will be covered against almost all risks that may
normally encounter while carrying out the business or profession.

 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.

 Group Mediclaim Insurance:

IFFCO Tokio’s group mediclaim policy provides coverage for a group of people, and helps
them minimalize their costs for safeguarding their health.

 Group Personal Accident Insurance:

This policy is designed to offer compensation to the insured person who suffers bodily injury
in an accident which is external, violent and visible.

2.4.7: MICRO & RURAL INSURANCE:

IFFCO-Tokio offers various types of insurance policy for the betterment of the peoples living
in villages and rural areas.
Policy available are:

 Janata Suraksha BimaYojna:

It provide the insurance to farmers, rural households and small and marginal labours involved
in agriculture and allied activities or engaged in the unorganised sectors of the urban
economy.
 Jan SewaBimaYojna:
The aim of Jan SewaBimaYojna is to offer a single fixed cover and fixed price package
insurance primarily to rural and semi-urban householders. It protect for entire assets,
interests, liability and self.

 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.

 Pradhan MantriFasalBimaYojana (PMFBY):

Provide financial support for the farmers suffering crop loss, stabilizing the income of
farmers to ensure their continuance in farming and encourage the famers to adopt innovation
and modern agricultural practices.
 Unified Package Insurance Scheme (UPIS):
Its aims at providing financial protection to citizens associated in agriculture sector, thereby
ensuring food security, crop diversification and enhancing growth and competitiveness of
agriculture sector besides protecting farmers from financial risks.

 Jan Suraksha Bima Policy/ Mahila Suraksha BimaYojna:

It has been drafted for the economically weaker sections of the society as the permissible
maximum sum insured is Rs. 1,00,000/- only. It covers against rail, road air accident, injury
due to any collision, snake bite.

2.4.8: SPECIAL INSURANCE:

 Comprehensive General Liability (CGL):

Policy issued shall cover all the sums which the insured shall become legally liable to pay as
damages in consequence of accidental death/bodily injury or disease to third parties and/or
loss of or damage to third party property.

 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.

 Errors and Omissions (Technology) Insurance:

This policy has designed to safeguard the interests of IT/ITeS suppliers, consultants and
vendors operating in India against potential litigation due to failure of standard packaged
software, deficiency in consultancy services.
 Fine Arts Insurance – Private collectors, Dealers and Gallery owners:
The property described in the schedule is insured against physical loss or physical damage
occurring during the period of insurance while at the named location(s) or within the
territorial limits specified in the Schedule, subject to the following exclusions, basis of
valuation and conditions

Art Warehousing activities

The trade in fakes

 Multi Modal Transport (MTO) Insurance:

An insurance policy to meet the needs of the modern freight forwarder. The policy can be
issued to the players in the field of freight services in India.
2.5: SERVICES:

2.5.1: DOWNLOAD FORMS:

IFFCO-Tokio provide one stop section for all the information/Forms which is in
downloadable form.

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?

2.5.3: GRIEVANCE REDRESSAL:

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.

2.5.4: CUSTOMER APP:

In this services the customer canto download the app and from that app the customer can buy
the policy, renewal the policy, get the policy copy downloaded, download health Ecard and
have search facility where the customer can locate network hospital and garages.
 2.5.5: PREMIUM PAYMENT MODE:

 ONLINE PREMIUM PAYMENT:

The policy can be renewal through online

 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

2.6: OWNERSHIP PATTERN:

The company is a joint venture between two major companies Indian Farmers Fertilizer Co-
operative (IFFCO) and Tokio Marine Group and their share holdings pattern are as follows:
 Indian Farmers Fertilizer Co-operative – 51%
 Tokio Marine Group – 49%

2.7: AWARDS AND RECOGNITION:

AWARDS WON IN 2012-2013

 IFFCO-Tokio Wins the CIO100 Super achiever Awards
 IFFCO-Tokio Conferred "Best Employer Brand " at IPE BFSI Awards
 AITA E-commerce Award for IFFCO-Tokio

AWARDS WON IN 2013-2014

 IFFCO-Tokio wins National Award for the successful implementation of RSBY by Ministry
of Labour, Government of India.

AWARDS WON IN 2018-2019

 IFFCO Tokio has won the ‘2018 Asian Awards for Best Company Initiative ' by Tokio
Marine Insurance Group.
 “Women Achiever of the Year 2018” for Ms. Anamika Roy Rashtrawar by Insurance Alerts
International Women’s Day Confluence.
 IFFCO Tokio won a total of six awards at the ‘Global Leaders Awards for Various Individual
and org Categories in Insurance Sector’. IFFCO Tokio was declared winner in the following
categories:
 "Most Admired Company of the Year" for IFFCO Tokio General Insurance Company
Limited
 "MD of the Year" for Mr.Warendra Sinha, MD & CEO
 "Enterprise Women of the Year" for Ms. Anamika Roy Rashtrawar, Wholetime Director
 "Chief Human Resources Officer (CHRO) of the Year" for Mr.Ramesh Kumar, ED (HR,
Training, Admin and CSR)
 "Chief Financial Officer of the Year" for Mr. Sanjeev Chopra, CFO and ED (Finance)
 "Chief Information Officer" for Ms. Seema Gaur, EVP and Head (IT)
 IFFCO Tokio won the P & C Insurer of the Year Award by Insurance Asia News Awards.

2.8: FUTURE GROWTH AND PROSPECT:

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

Mc-Kensy’s 7S Framework is a management model developed by well-known Business

consultants Mr. Robert H Waterman, Jr. and Tom Peters is 1980s. This model provides an
effective way of analysing the organisations, to assess and monitor changes in the internal
situation of the company.

The main objectives of this model are to analyse how well an organisation is positioned to
achieve its intended objective.

Mc-Kensy’s 7S model comprises of 3 hard S’s and 4 S’s namely:

HARD S’s SOFT S’S

STRUCTURE SHARED VALUE

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.

Description Managerial Analytical Technical Communication Negotiation

skills skill skills skills

Manager     

Agency vertical in-     

charge
Agency     
development
manager
DEO 

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.

 Employee performance improvement:

The employee has used Empxtrack for more than two years saw a significant jump in their
appraisal scores. The average appraisal score as jumped from 4.3 to 4.7.

 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.

3.6: SHARED VALUE:

These are the core values of the organisation, as shown in its corporate culture and general
work ethic. They were called “superordinate goals” when the model was first developed.
 Provide a advice and guidelines for the customers
 Develop a relationship of trust with customers
 Make the claim as transparent
 Meet the expectation of the customer
 Engage with the customer in the long term
 Follow the rules and regulation applicable
 Cross sell – Proposing to the customers to buy 2 policy
Ex: If the customer having motor vehicle policy proposing them to buy home insurance,
critical illness etc.

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.

Threats from substitutes:

 The threats of substitutes is high for IFFCO-TOKIO.
 The others insurance companies provide similarity in services makes switchover a potent
threat.
 Securities oriented customers have switched to other avenues.

Bargaining power of suppliers:

 The bargaining power of the suppliers is a high force. ( like discount, coverage,
remuneration)
 The supplier being the distributor or agent have high bargaining power because they have
customer database and can influence customers in making choice.
 It will impact the potential of IFFCO-TOKIO general insurance company limited to maintain
above average profits in insurance industry.

Bargaining power of buyers:

 The bargaining power of customers is moderate-high.
 The bargaining power of customers especially corporate is very high because the pay huge
amount of premium.

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:

 IFFCO-Tokio often slow to respond to changing needs

 There is an increasing trend of financial weakness

4.3:OPPORTUNITIES:

 Ability to cross sell financial services barely being tapped.

 Improved technology available paperless transactions available.
 Reaching the tier 2 and tier cities like (Taluks)
 IFFCO-Tokio is planning to open 50 more branches in India.
 Bimakendras which are in the small units would be the growth engines.
 IFFCO-Tokio launches new product according to the changing times and the effort would be
develop simple and easy to buy products which would be app enable for the customer.
 IFFCO extensive cooperative network benefits IFFCO-Tokio not only in terms of low cost of
operations but also greater opportunities for entering highly under-penetrated rural markets.

4.4: THREATS:

 HDFC acquiring Apollo Munich Health insurance

 New dynamic pricing like profile based discount in premium
 Inflation cost directly impact on Health premium
 Bancassurance tie up
 4 public sector becoming one general insurance
 Web aggregates (Mintpro insurance, Policy Bazaar, Acko general)

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

5.1: CURRENT RATIO:

CURRENT RATIO = CURRENT ASSET/ CURRENT LIABILITY

YEAR CURRENT ASSET CURRENT CURRENT RATIO

LIABILITY

2017 5957102 40629014 0.1466

2018 13768732 48199784 0.2856

2019 10669733 57789148 0.1846

The current ratio of IFFCO-Tokio have a decrease in the year 2017 & 2019 but there is a
increase in the year of 2018. In the year 2017 & 2019 there is a increase in short-term debt or
decrease in current asset or both. If there is decrease in ratio means decrease in the cash
generation.

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

5.2: QUICK RATIO:

LIQUID RATIO/QUICK RATIO = LIQUID ASSET/ CURRENT LIABILITY

Liquid asset = current asset – stock and prepaid expenses

YEAR LIQUID ASSET CURRENT QUICK RATIO

LIABILITUY

2017 5652696 40481829 0.1396

2018 13002280 48029944 0.2707

2019 10199195 57787711 0.1764

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

5.3: ABSOLUTE LIQUID RATIO:

ABSOLUTE LIQUIDE RATIO = CASH / CURRENT LIABILITY

YEAR CASH CURRENT ABSOLUTE

LIABILITY LIQUID RATIO
2017 1292778 40481829 0.0319

2018 1893591 48029944 0.0394

2019 729312 57787711 0.0126

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

ABSOLUTE LIQUID RATIO

5.4: PROPRIETARY RATIO:

PROPRIETARY RATIO = SHAREHOLDERS FUND/TOTAL ASSETS

YEAR SHAREHOLDES TOTAL ASSETS PROPRIETARY

FUND’S RATIO

2017 16856465 6106612 2.7603

2018 18749355 13923897 1.3465

2019 22535574 11218410 2.0088

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

5.5:PRICE EARNING RATIO:

PRICE EARNING RATIO = MARKET PRICE PER SHARE \ EARNING PER SHARE

YEAR MARKET PRICE EARNING PER PRICE EARNING

PER SHARE SHARE RATIO
2017 62.59 15.85 3.9488

2018 69.62 7.03 9.9032

2019 82.18 6.54 12.565

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

PRICE EARNING RATIO

 CHAPTER 6

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:

 Information regarding industry

http://www.ibef.org/industry/services.aspx

 Information regarding the organisation

www.iffcotokio.co.in
http://www.ssrana.in
www.irda.com
 ANNEXURE:

ANNEXURE 5.1: BALANCE SHEET

ANNEXURE 5.2: Financial Statement