A PROJECT REPORT ON

IFFCO TOKIO GENERAL INSURANCE CO. LTD.

"Brand Awareness in General Insurance" FOR UNDER THE GUIDANCE OF:

CORPORATE GUIDANCE: Mr. Gaurav Mahajan (Executive Sales Manager, IFFCO Tokio, Jaipur)

FACULTY GUIDE: Mrs. Rubina Sajid Faculty of Marketing MAISM Jaipur

SUBMITTED BY:

Mishu Agrawal

Maharishi Arvind Institute of Science & Management

Ambabari Circle, Bharti Path, Ambabari, Jaipur-302 023 INDIA. Tel: +91-141-2335487, 2234216 - Telefax: +91-141-2335120 E-mail: maism@datainfosys.net ; maism@maism.com

ACKNOWLEDGEME NT

ACKOWLEDGEMNT
It is a great pleasure and privilege for me to present this Summer Training Project titled To BRAND AWARENESS. I would like to express my gratitude to Mr. Gaurav Mahajan for having given me an opportunity to do a project in IFFCO-TOKIO GENERAL INSURANCE CO. LTD. A sincere thanks to Mr. K.V.Singh without whose guidance the project would not have possible. My silent applause for all the sales Team Managers, without whose support and active guidance this project would not have been possible.I also thank all the employees of IFFCO-TOKIO GENERAL INSURANCE CO. LTD. for their Kind cooperation. Last but now the least I would also like to thank Ms.Rubina Sajid who encouraged me throughout my project.

S.NO 1. 2. 3. 4.

NAME OF THE TOPIC EXECUTIVE SUMMARY SECTOR INTRODUCTION PROJECT TOPIC PROJECT PROFILE OBJECTIVES RESEARCH METHODOLOGY DATA & DATA ANALYSIS SUGGESTIONS ANNEXURE BIBLIOGRAPHY

PAGE NO.

5. 6. 7. 8.

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
I found myself highly praised by working in a renowned insurance company named IFFCO Tokio. My selection in IFFCO Tokio was just a coincident in which I would like to thank my seniors, who make me aware about this company. When, I got enter in this group as a summer trainee then first two three days. I found myself in a very alien environment but slowly & gradually all the staff members keep friendly relationship with me. First 5 to 15 we were busy in getting familiar to the products & insurance training. All the training is waste without practical implementation. So, they sent me in market for showing the real cutthroat world of selling. In the market first time I realized that selling is not a cup of tea for every person. But fortunately, despite selling was melt a favourite stream for me, I enjoyed selling. For IFFCO Tokio, I would say that every employee working in it is a very hardcore dedicated person. The co-ordination between all the employees is simply great, first time. I have seen that one bottom management employee can talk to Regional Head very frequently. For upcoming trainees. I would say that: Don't escape from handwork Never give excuses for your fault Show your best of the best in training period Always keep in mind the BOSS is always right.

If you have it in you, than IFFCO - TOKIO will always lays Red Carpet for you.

INTRODUCTION
INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open competitive market to Nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.

A brief history of the insurance sector

The business of life insurance in India in its existing from started in India in the year 1818 with the establishment of the oriental life insurance company in Calcutta. Some of the important milestones in the insurance business in India are: 1818: the British introduce life insurance to India, with the establishment of the oriental life insurance company in Calcutta. 1850: non life insurance debuts with triton insurance company. 1870: Bombay mutual life assurance society is the first Indian-owned life insurer. 1912: the Indian life assurances companies act enacted as the first statute to regulate the life insurance business. 1928: the Indian insurance companies act enabled to enable the government to collect statical information about both life and Non-life insurance business. 1938: earlier legislation consolidated and amended to by the insurance act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an act of parliament, via. LIC act,1956. with the capital contribution of rs.5 crore from the government of India. The general insurance business in India, on the other hand, can trace its roots to the triton insurance company Ltd, the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance in India are: 1907: the Indian mercantile insurance ltd. set up, the first company to transact all classes of general insurance business. 1957: general insurance council, a wing of the insurance association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: the insurance act amended to regulate investment and set minimum solvency margins and the tariff advisory committee set up. 1972: the general insurance business (nationalized) act1972 nationalized the amalgamated and grouped into four companies viz., the national insurance company ltd. and the united India insurance company ltd., the oriental GIC incorporated as a company. 1993: Malhotra committee, headed by former RBI Governor R.N.Malhotra, set up to draw up a blue print for insurance sector reforms.

1994: malhotra Committee recommends re-entry of private players, autonomy to PSU insurers. 1997: Insurance regulator IRDA (Insurance Regulator and Developmentary Authority) Set up. 2000: IRDA starts giving licenses to private insurers; ICICI Prudential and HDFC standard Life first private life insurers to sell a policy. 2001: Royal Sundaram Alliance first non-life insurer to sell a policy. 2002: Banks allowed to sell insurance plans; as TPAs enter the scene, insurers start setting non-life claims in the cashless mode.

Insurance Sector Reforms

In 1993, Malhotra committee, headed by former Finance Secretary and RBI Governor R.N.Malhotra, was formed to evaluate the Indian Insurance Industry and recommended its future direction. The Malhotra Committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the company keeping in mind the structural change currently underway and recognizing that insurance as an important part of the overall financial system where it was necessary to address the need for similar reforms In 1994, the committee submitted the report and some of the key recommendations included:

I) Structure
. Government stake in the insurance companies to be brought down to 50% . Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. . All the insurance companies should be given greater freedom to operate.

II) Competition
. Private Companies with a minimum paid up capital of Rs.1 bn should be allowed to enter the industry. . No Company should deal in both Life and General Insurance through a single entity. . Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. . Postal Life Insurance should be allowed to operate in the rural market. . Only on State Level Life Insurance Company should be allowed to operate in each state.

III) Regulatory Body

. The Insurance Act should be changed. . An insurance Regulatory body should be set up. . Controller of Insurance (Currently a part from the Finance Ministry)shouldbe be made independent.

IV) Investments:
. Mandatory Investments of LIC life Fund in government securities to be reduced from 75% to 50% . GIC and its subsidiaries are not to hold more than 5% in any company (There current holding to be brought down to this level over a period of time)

V) Customer Service:
. LIC should pay interest on delays in payment beyond 30 days. . Insurance companies must be encouraged to set up unit linked Pension plans. . Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of news players could ruin the public confidence in the industry. Hence, it was decides to allow competition in a limited way by stipulating the minimum capital reauirement of Rs.100crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

The Insurance regulatory and development authority

Reforms in the insurance sector were initiated with the passage of IRDA bill in parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to the schedule of training regulation and registering the private sector insurance companies. The other decision takes simultaneously to provide the supporting systems to the insurance sector and in particular in life insurance companies was the launch of the IRDAs on line service for issue and renewal of license to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as independent statutory body the IRDA has put in framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

Duties, Powers and Functions of IRDA: Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA. 1. 2. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; Specifying requisite qualifications, code of conduct and partial training for intermediary or insurance intermediaries and agents; Specifying the code of conduct for surveyors and loss assessors; Promoting efficiency in the conduct of insurance business; Promoting and regulating professional organizations connected with the insurance and re-insurance business; Levying fees and other charges for carrying out the purposes of this Act; Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business; Specifying the form and manner in which books of accounts shall be maintained and insurers and other insurance shall render statement of accounts intermediaries; Regulating investment of funds by insurance companies; Regulating maintenance of margin of solvency; Adjudication of disputes between insurers and intermediaries or insurance intermediaries; Supervising the functioning of the Tariff Advisory Committee; Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f); Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and exercising such other powers as may be prescribed.

3. 4. 5. 6. 7. 8.

9.

10. 11. 12. 13. 14.

15.

GENERAL INSURANCE
General insurance business in the country was nationalised with effect from 1st January, 1973 by the General Insurance Business (Nationalisation) Act, 1972. More than 100 non-life insurance companies including branches of foreign companies operating within the country were amalgamated and grouped into four companies, viz., the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. with head offices at Calcutta, Bombay, New Delhi and Madras, respectively. General Insurance Corporation (GIC) which was the holding company of the four public sector general insurance companies has since been delinked from the later and has been approved as the "Indian Reinsurer" since 3rd November 2000. The share capital of GIC and that of the four companies are held by the Government of India. All the five entities are Government companies registered under the Companies Act. The general insurance business has grown in spread and volume after nationalisation. The four companies have 2699 branch offices, 1360 divisional offices and 92 regional offices spread all over the country. GIC and its subsidiaries have representation either directly through branches or agencies in 16 countries and through associate/ locally incorporated subsidiary companies in 14 other countries.

General Insurance List

S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Registration Number 102 103 106 108 113 115 Date of Reg. Name of the Company

23.10.2000 Royal Sundaram Alliance Insurance Company Ltd. 23.10.2000 Reliance General Insurance Company Ltd. 04.12.2000 IFFCO Tokio Company Ltd. 22.01.2001 TATA AIG Company Ltd. 02.05.2001 Bajaj Allianz Company Ltd. 03.08.2001 ICICI Lombard Company Ltd. Cholamandalam Company Ltd. General General General General General Insurance Insurance Insurance Insurance Insurance

Export Credit Guarantee Corporation Ltd. HDFC-Chubb Company Ltd. General Insurance

INTRODUCTION TO THE COMPANY

IFFCO-TOKIO
THE LIFE YOU DESERVE
IFFCO-TOKIO GENERAL INSURANCE CO. LTD. (ITGI) is a joint venture between IFFCO and Tokio Marine and fire insurance co. ltd. Japan. After getting the licence on 4 th December 2000, we started our operation and within a short period, we have become one of the leading private General Insurance Companies in India. At ITGI, we are fully committed to providing insurance products and services to you in a convenient and satisfying manner. Our policies have been designed to provide you with more than just a healing touch in those unfortunate yet unavoidable circumstances of life. Our personalized service, customized covers and a wide array of non-life insurance products from motor to travel, from household to personal accident, will give you complete peace of mind. We have made every effort to make our policies and procedures simple, transparent and customer friendly to you THE LIFE YOU DESERVE. We see ourselves as a "people's company"; our principal aim is to provide benefits for the common man who traditionally lacks knowledge and access to quality insurance products. To achieve this, we have leveraged the deep knowledge of IFFCO by studying 600 of the country's 602 districts before drawing up our business plan. We closely follow the rigorous global financial standards of the Millea group, combining sound financial management with rapid growth. ITGI is the only private general insurance company in India to have made five consecutive years of profit. We are also one of the few to report underwriting profits within four years of operations. We also believe in focusing on creative solutions to provide optimum service to our customers. We are the only company in the country to have a 100%-owned distribution channel to service our retail customers. Called IFFCO-TOKIO Insurance Services Ltd (ITIS), this subsidiary has 273 employees and is present in 68 cities. ITIS is an example of an indigenously developed best practice that will be replicated in other Tokio Marine Asia subsidiaries. Innovation has also played a significant part in making us a dynamic industry leader both in India and globally. We are the first company in India to underwrite mega policies for a fertilizer and an automobile client. 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.

PERFORMANCE Profitable growth: Our commitment to innovation and customer service has helped us consistently raise the bar on our performance. We strongly believe in profitable growth: Our rapidly reducing Earned Income Loss Ratio (EILR) is testimony to this

ITGI's sound financial management has been achieved in a period of fastpaced growth. Our GWP has grown from Rs. 58 million in 2000-01 to Rs. 9 billion 2005-06. Policy growth has jumped more than 70 times between 2002 and 2006.

ITGI voluntarily maintains strong institutional checks and balances. An investment committee of board members and senior executives scrutinizes all major investment decisions. An in-house audit committee audits all the branches and suggests ways to improve their functioning. Finally, there is an executive committee of senior management that monitors policy decisions.

All these have ensured that ITGI has established a reputation for the highest standards of corporate governance. 'Customized' satisfaction: Our bi-annual customer satisfaction surveys another unique feature at ITGI -- indicates the speed and fairness in handling policy-holders' claims. This is backed by robust IT infrastructure that is robust enough to handle large volume of documents. All ITGI's branches and distributors are networked. This not only enables a detailed and accurate analysis of the company's performance based on specific parameters, the web-based claim response system has enabled the speedy settlement of claims, achieving a 90% claim settlement ratio.

OVERVIEW

Our Vision

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

Our Mission

Our mission is to win the trust of individuals, trade, industry and commerce and protect citizens, corporations, cooperatives and international investors in India.

BOARD OF DIRECTORS

BOARD OF DIRECTORS
K. Srinivasa Gowda Hiroshi Endo Surinder Kumar Jakhar Chandra Pal Singh U.S. Awasthi B.S.Vishwanathan Rakesh Kapur Ajit Narain Masahiro Ogawa SENIOR EXECUTIVES M.K.Tandon N.K.Kedia H.O. Suri S.Narayanan U.C. Dubey A. Sensarma COMPANY SECRETARY V.S.Rao AUDITORS S.P.Chopra & Co. Raghunath Rai & Co. BANKERS Deutsche Bank, New Delhi Indian Overseas Bank, New Delhi Chairman Vice Chairman Director Director Director Director Director Managing Director & CEO Director (Operations) Financial Advisor Executive Director Executive Vice President Executive Vice President Executive Vice President Executive Vice President (Upto 31st March,2007) Executive Vice President Chartered Accountants Chartered Accountants

IRDA Regn. NO 106 Dated 4/12/2000 REGISTERED OFFICE 34, Nehru Place, New Delhi - 110 019 Ph: 011-26296981 CORPORATE OFFICE 4th & 5th Floors, Plot No. 3, Sector-29, Gurgaon - 122 001 (Haryana) Ph: +91-124-2850100 Fax: +91-124-2577923, 2577924 Website : www.itgi.co.in

RISK MANAGEMENT SERVICES Our Growing Expertise Can Lessen Your Worries

Risks are inherent in every aspect of life. They are present in whatever we do everyday and all businesses face the threat of losses that may never occur. Worrying about these possibilities hardly makes life pleasant. Of course, it is impossible to eliminate risks - but they can be controlled, lessened or minimized. That is exactly what risk management is all about. We at ITGI have established a proficient risk management team to provide customized, need-based solutions. Armed with a high level of domain knowledge in a wide range of industry verticals, our risk management experts identify and evaluate the risk exposures of your facility or business to provide a comprehensive risk management solution based on your special needs. As a part of our value-added services, we also provide recommendations for loss reduction and risk mitigation and continuously update you about international best practices. ITGI caters to almost all areas of risk management. Below is a list of some of our mainstream services: Underwriting survey/Loss control Survey/Risk management survey Natural hazard risk evaluation Business continuity planning Business interruption and interdependency risk analysis Marine loss control surveys Safety management Risk assessment studies/Safety audits Consequence analysis studies

INTRODUCTION TO THE PROJECT TOPIC

WHAT IS BRAND
DEFINATION: A brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name. Branding can be applied to the entire corporate identity as well as to individual product and service names. Brands are usually protected from use by others by securing a trademark or service mark from an authorized agency, usually a government agency. Before applying for a trademark or service mark, you need to establish that someone else hasn't already obtained one for your name. Although you can do the searching yourself, it is common to hire a law firm that specializes in doing trademark searches and managing the application process, which, in the United States, takes about a year. Once you've learned that no one else is using it, you can begin to use your brand name as a trademark simply by stating it is a trademark (using the "TM" where it first appears in a publication or Web site). After you receive the trademark, you can use the registered (?) symbol after your trademark. Brands are often expressed in the form of logos, graphic representations of the brand. In computers, a recent example of widespread brand application was the "Intel Inside" label provided to manufacturers that use Intel's microchips. A company's brands and the public's awareness of them is often used as a factor in evaluating a company. Corporations sometimes hire market reseach firms to study public recognition of brand names as well as attitudes toward the brands. Here is the famous advertising copywriter and ad agency founder David Ogilvy's definition of a brand: The intangible sum of a product's attributes: its name, packaging, and price, its history, its reputation, and the way it's advertised.

Brand awareness :
The act of creating public awareness of a specific brand in order to maximize its recognition, successful brand awareness strategies should define a company's uniqueness and set it apart from competitors. Quite simply, if potential customers do not know about a company, they will not purchase from it. Therefore, one of the preeminent goals of any business should be to build brand awareness, albeit in as cost-effective manner as possible. Consumers tend to make purchasing decisions based on peer recommendations and direct experience, as well as traditional advertising methods. This is why it is necessary to build brand awareness strategies out by instilling trust among consumers. This trust must be achieved through credibility, rather than just a catchy advertising campaign. Promotional marketing involving a one-to-one component is proving increasingly effective at building trust and acquiring new customers. Online brand awareness strategies are used frequently, albeit with differing levels of success. These online brand awareness strategies can include the use of advertising including banners, sponsorships, and email/newsletter advertising, online PR, affiliate marketing, etc.

RESEARCH METHDOLOGY

The research is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. The first and foremost step in the research is to develop a systematic planning for future investigations. Developing this type of plan is called Research Design. Research Design comprises defining problems, formulating hypothesis, collecting, organizing and evaluating data, making deductions and reaching conclusions and at last testing the conclusion to see whether they fit the formulated hypothesis or not. Research Process includes following steps: 1. Formulating the research problem 2. Extensive literature survey 3. Developing the hypothesis 4. Determining the sample size 5. Collecting the data 6. Execution of the project 7. Analysis of the data 8. Hypothesis testing 9. Generalization and interpretations 10. Preparation of the report or presentation of the results. The research design for this particular project is given under. Objective Our objective was to study the consumer perception about wheel green washing powder.

Location We will cover selected towns and villages in Ajmer, Nagaur, Pali districts in the state of Rajasthan. Sample Size Our sample size is around 100 respondents. Data Collection Data is the building block for any statistical analysis and interpretation. Hence after determining the sample next logical step is collecting data. Data can be obtained from two sources. Primary source Secondary source

As our study was of explorative type I have no option but to go for the primary sources. We went on to design a questionnaire in consultation with our company guide.

DATA ANALYSIS

DATA ANALYSIS

HOW DID YOU CAME TO KNOW ABOUT IFFCO TOKIO?

50% 10% MAGAZINE NEWSPAPER FRIENDS INTERNET 20%

20%

Interpretation: - Maximum respondent came to know about IFFCO TOKIO through friends and relatives and minimum through Internet.

ARE YOU AWARE OF THE BRAND IFFCO TOKIO?

40

YES

60

NO

Interpretation: - maximum respondents are aware about the different types of policies of IFFCO-TOKIO.

RANKING ACCORDING TO THE COMPANY (1 FOR MOST PREFFERED AND 10 FOR LEAST)
ICICI LOMBARD 25% 25% BAJAJ ALLIANZ ORIENTAL INSURANCE IFFCO-TOKIO

20%

30%

Interpretation: -The interpretation shows that after oriental insurance they prefer ICICI LOMBARD and IFFCO-TOKIO.

ARE YOU SATISFIED WITH THE SERVICES OF IFFCO-TOKIO

fully satisfied 10% 20% 50% 20% non-satisfied partially satisfied can't say

Interpretation: - Maximum respondents are satisfied with the services of IFFCOTOKIO.

ARE YOU SATISFIED WITH THE CLAIM SETTLEMENT PROCEDURE OF THE COMPANY
20%

YES

NO

80%

Interpretation: - Maximum respondents are satisfied with the claim settlement procedure of the company.

HOW IS PERFORMANCE OF IFFCO-TOKIO

17%

7% 1%

75%

excellent good average poor

Interpretation: - The performance of IFFCO-TOKIO to the maximum respondents is good during the analysis.

SUGGESTIONS

1. Company should conduct an insurance policy awareness program in various places and small cities. 2. Company should more spend on advertisement. 3. Company should make a better and attractive premium structure. 4. IFFCO should conduct a sales promotion campaigning and better selling strategy. 5. Company should open more branches in rajasthan and across the country also. This is good for the companys goodwill and enables to strengthen its position in the tough competition practice. 6. Regularly and continuously market survey needs to be conduct to know the positioning and brand of the company.

ANNEXURE

Questionnaire

1. 2. 3. 4. 5. 6.

Name: Address: Contact No.: Age: Gender: Occupation: Male Business Student Female Service Housewife Single

7. 8.

Marital Status:

Married

How did you came to know about IFFCO Tokio? Through magazine Friends/Relatives Newspapers Internet

9.

Are you aware of the brand IFFCO Tokio? Yes No

10. Do you know the policies of IFFCO Tokio? Yes No

11. Please tick the policy, which you have taken? Medishield Home Suvidha Private Car Trade Suvidha Trade Protector

12. Please tick the company where general insurance you have taken? ICICI Lombard Oriental Insurance IFFCO Tokio New India Assurance Bajaj Allianz National Insurance Reliance General Insurance United India Insurance

13. Please rank the following company (1 for most preferred and 10 for least preferred) ICICI Lombard Oriental Insurance IFFCO Tokio New India Assurance Bajaj Allianz National Insurance Reliance General Insurance United India Insurance

14. Are you satisfied with the services of IFFCO Tokio? Fully satisfied Not-satisfied Partially satisfied Can't say

15. Are you satisfied with the claim settlement procedure of the company? Yes No

16. How is the performance of IFFCO Tokio. Excellent Good Poor Average

17. Do you find any complaints in IFFCO Tokio product? Yes 18. Suggestions .......................................................................................................... .......................................................................................................... No

BIBLIOGRAPHY
Books Marketing Management - Philip Kottler Magazines of IFFCO Tokio Research Methodology - C.R. Kothari IFFCO Tokio Insurance products brochures

Websites www.itgi.co.in www.irda.com www.google.com