“SIMPLE” should be the keyword for “RETAIL”
9^th September 2009

Talking of individual line here - Auto insurance segment is already developed as it is mandatory. Please comment.

 

It will not be true to say that auto industry with respect to insurance is developed in India. The add ons and the service standards offered world over just do not exist here. Now some of those have started coming in like we have come out with on road protector with the motor where lots of facilities are being offered. Our on road protector gives major coverage, and if car meets an accident, the customer gets claim within stipulated time besides free of cost towing facility and medical assistance. If there is an instance that it is not possible for him to bring in by road then we airlift him which are substantial costs but also the substantial benefit. This way Indian market in the insurance industry is likely to see many innovations.
Motor insurance is going to remain major insurance product in the market.

 

Now coming to health insurance, we see that there is a big disconnect between health care providers and health insurance providers. How does a consumer decide which policy to go in for?

Health insurance is likely to multiply manifold in the coming 5-10 years but there is a need to understand the health insurance industry of India to understand its issues. The industry rests on four pillars – Government, healthcare providers, Service providers and Insurance companies. Government’s expenditure in the health is too low as compared to the western countries. Good health care hospitals are available only in Metros. In rural areas any critical illness treatment is just not available. Ideally, a health insurance policy should be a mix of reimbursement and fixed benefits to meet both direct and indirect costs due to illness. It may also be a good idea to supplement the health plan with a critical illness plan. Our Swasthya Kavach Policy (family floater policy) is a perfect example of this. In addition a health policy should provide adequate sum assured in line with the hospitals and rooms he/she prefers. Last but not the least, one should look for an insurance company with a good claims servicing track record.

 

In India consumers have not taken to critical illness that seriously, moreover the product itself is not readily available. Please comment.

 

Any good product development has a cycle of three-four years and critical illness is passing through that phase. Gradually things are developing and may take some more time. As far as individual health lines are concerned, we are very bullish on that, we are the only company to have launched family floater with critical illness add on with total value of Rs. 10 lacs, which is not a small amount.

 

Commendable work is being done by your organization, what are your plans to take them forward with the consumers in terms of brand building, marketing and advertising?

 

Building a brand is a science and arts both. I firmly believe word of mouth is best source of branding, at the same time we cannot forget the modern means being deployed for branding.

Yes, in India there is a need for consumers to know that this kind of product is available. For achieving that we advertise innovatively by way of month long road shows. Also IFFCO is doing 4-5 programs in the villages of India, so people are getting knowledge of product and distribution channels. Our Bima Kendras and cooperative societies are highlighting our Sankat Haran and Janta Bima yojana through popular means in villages. Above all we believe in providing good service by heart and we are integrating our brand with this service.

 

Recently IRDA has attempted several measures to impart transparency in the health insurance segment. What impact it will have on the customers and on functioning of insurance companies? Will this move lead to rise in the premiums?

 

We welcome the recent initiatives taken by IRDA as these are quite customer centric. Health insurance in our country is likely to grow exponentially in the next few years and due to competition premiums may not increase substantially.

These are the right steps in the right direction. Today insurance companies may face difficulty but in the long run every company has to go on the path of ethics.

To move on the path of transparency, it is important that products are simple. Simple is the word to go by be it wording, coverage or delivery. Simple is the key word for retail.

 

What is your message to our readers?

 

Every Indian national should contribute in creating awareness towards insurance.

One should take insurance and encourage others to take. You should never let go your genuine claim at the same time should never attempt to make illegal claim.

 

About IFFCO TOKIO »

 

IFFCO-Tokio General Insurance (ITGI) incorporated on 4th December 2000 is a joint venture between the Indian Farmers Fertilizer Co-operative (IFFCO) and its associate and Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan.

 

ITGI has Pan India presence with 51 ‘Strategic Business Units’ and a wide network of over 110 offices. It offers a wide range of uniquely customized policies covering a wide range of customers, from farmers to some of India's largest automobile manufacturers. From a modest Rs. 2130 Million of GWP (Gross Written Premium) in 2001-02 it has achieved an impressive Rs 12350 Million in 2007-08, thereby becoming one of India’s leading private players.

 

ITGI has got the Technical Support for underwriting and reinsurance from Tokio Marine and on Risk Management from Tokio Risk Consulting (TRC). It is the first company in India to underwrite mega policies for a fertilizer and an automobile company. (ITIS). Today, ITIS has a highly motivated workforce of over a 1000 employees in over 200 towns.