Key aspects of IFFCO Tokio General Insurance include a wide product range encompassing car, two-wheeler, health, travel, home, and commercial insurance, with specialized covers like liability and property insurance also available. The company emphasizes customer-centricity by offering innovative and customized insurance solutions and maintains a wide network of garages and hospitals for cashless claim settlements. IFFCO Tokio claims to have a quick claim disbursal process and a decent claim settlement ratio, offering features like quick claim settlement for minor claims in health insurance and a QCS (Quick Claim Settlement) process for motor insurance at network garages. They have a user-friendly online presence through their website and mobile apps for policy purchase, renewal, and claim registration, aiming to make insurance accessible and convenient. Their significant network comprises over 4300 garages and 7000+ hospitals across India for providing cashless services. Financially, IFFCO Tokio is considered a strong and reliable insurer committed to ethical business practices.
In summary, IFFCO Tokio General Insurance is a well-established player in the Indian general insurance market, offering a diverse range of products with a focus on customer service and efficient claim settlement, leveraging technology to provide convenient access to their services.
Latest News on IFFCO TOKIO
IFFCO-Tokio General Insurance launches surety bond insurance
IFFCO-Tokio General Insurance has introduced a new insurance product called Surety Bond Insurance, which aims to provide a risk mitigation solution for the infrastructure sector. This launch comes after the Insurance Regulatory and Development Authority of India (IRDAI) permitted general insurers to issue surety insurance bonds in April 2022. The Surety Bond Insurance is a legally enforceable tripartite contract that provides a hedge against the risks involved in infrastructure projects.
In the past decade, India has initiated over 9,000 Public-Private Partnership (PPP) infrastructure projects worth Rs 68.13 lakh crore. However, many contractors face financial constraints, particularly with regard to the limits required under India’s bidding and other processes. This is where Surety Bond Insurance comes in, providing relief to contractors and freeing up their financial burden.
The Surety Bond works as a risk transfer mechanism, where the insurer provides a guarantee to the beneficiary or obligee that the principal or contractor will meet their contractual obligations. If the principal fails to deliver, the insurer pays a monetary compensation to the obligee. To provide this guarantee, the insurer assesses various factors, including the project type, revenue, past records, and financial health of the contractor.
The construction industry has already provided bank guarantees worth Rs 1.70 lakh crore, and this figure is expected to grow to Rs 3 lakh crore by 2030. The introduction of Surety Bond Insurance is expected to support this growth by providing an alternative to traditional bank guarantees. According to Subrata Mondal, MD and CEO of IFFCO-Tokio General Insurance, this product will help widen the pool of contractors and make it easier for them to participate in infrastructure projects.
Overall, the launch of Surety Bond Insurance by IFFCO-Tokio General Insurance is a significant development in the insurance industry, and it is expected to play a crucial role in supporting the growth of the infrastructure sector in India. The product is designed to provide a risk mitigation solution for contractors and help them overcome financial constraints, making it easier for them to participate in infrastructure projects and contribute to the country’s economic growth.
At 80, IFFCO MD Awasthi retires after serving company for over 49 years
U.S. Awasthi, the longest-serving CEO of a fertilizer company, has retired as the Managing Director of Indian Farmers Fertiliser Cooperative Limited (Iffco) after a three-decade stint. Awasthi, who turned 80, has been succeeded by K.J. Patel, who has taken charge as the new MD. Awasthi joined Iffco in 1976 as a chemical engineer and rose through the ranks to become the MD in 1993. During his tenure, he played a crucial role in shaping the company’s trajectory and elevating it to global prominence.
Under Awasthi’s leadership, Iffco expanded its global footprint through strategic investments in countries such as Senegal, Oman, Jordan, and the UAE. He also initiated diversification initiatives, including joint ventures like IFFCO-Tokio General Insurance Company, a collaboration with Japan’s Tokio Marine Group. Awasthi’s contributions to the company have been widely recognized, and he is credited with transforming Iffco into one of the largest fertilizer cooperatives in the world.
K.J. Patel, the new MD, has over 32 years of experience in the maintenance of nitrogenous and phosphatic fertilizer plants. He was previously the director-technical at Iffco and was heading the Iffco Paradeep Plant, the largest complex fertilizer plant in India. Patel’s appointment is seen as a significant development in the Indian fertilizer industry, which is highly controlled and regulated.
Awasthi’s retirement marks the end of an era at Iffco, and his legacy is expected to continue under the leadership of Patel. The company has expressed its gratitude to Awasthi for his contributions and wishes him well in his post-retirement life. As Iffco looks to the future, it is expected to continue its growth trajectory and expand its operations under the leadership of Patel. With its strong foundation and experienced leadership, Iffco is poised to remain a major player in the global fertilizer industry.
Shiv Sena leaders vandalise IFFCO Tokio Insurance Company’s office in Pune
Shiv Sena party workers and leaders vandalized the office of insurance company IFFCO Tokio in Pune on Wednesday, protesting the delay in disbursement of insurance amounts to farmers affected by unseasonal rains. The farmers in several parts of Maharashtra have suffered significant losses due to the heavy rains that have damaged their Kharif crops, including soybean, jowar, maize, and cotton. The protesters, numbering around 35, stormed into the IFFCO Tokio office, located in Koregaon Park, and ransacked the premises, damaging nearly 45 laptops and desktops, 10 printers, and injuring a watchman.
The Shiv Sena party has been actively involved in supporting the affected farmers, with its chief Uddhav Thackeray and Yuva Sena chief Aaditya Thackeray visiting the rain-affected regions to assess the situation. The state government has announced a relief package of Rs 10,000 crore for the affected farmers, but the opposition party, NCP, has deemed it insufficient and is demanding a relief package of at least Rs 25,000 crore.
IFFCO Tokio released a statement clarifying that it has not participated in the crop insurance scheme in Maharashtra for the current year and has already paid all eligible claims for the previous season. The company expressed surprise at the vandalism, stating that the protesters did not discuss their grievances or issues before resorting to violence.
The incident highlights the growing desperation and frustration among farmers in Maharashtra, who are struggling to cope with the losses caused by the unseasonal rains. In the past four days, at least ten cases of farmer suicides have been reported from the Marathwada region, underscoring the need for urgent action to address the crisis. Maharashtra Governor Bhagat Singh Koshyari has directed the state government to convene a meeting with insurance companies to expedite the disbursal of claims for crop damage, in an effort to provide relief to the affected farmers.
IFFCO-Tokio ventures into Surety Bonds sector
IFFCO-Tokio General Insurance has introduced its surety bonds business, a move aimed at supporting India’s growing infrastructure sector. Surety bonds are legally binding contracts that serve as a risk-mitigation tool for projects, providing an alternative to traditional bank guarantees. By launching this product, IFFCO-Tokio seeks to increase access to surety bonds for contractors, particularly small and medium-sized firms, and foster trust among stakeholders.
The construction sector in India has already issued a significant amount of bank guarantees, valued at Rs 1.7 trillion, and this number is expected to rise to Rs 3 trillion by 2030. However, the adoption of surety bonds has been slow due to regulatory and operational challenges. Despite these hurdles, the industry is working to address them and expand the market.
The introduction of surety bonds by IFFCO-Tokio is a significant development, as few insurers currently offer this product in India. By providing an alternative to traditional bank guarantees, surety bonds can help contractors and project developers manage risk more effectively. This, in turn, can lead to increased investment in infrastructure projects, driving growth and development in the sector.
The benefits of surety bonds are numerous. They can help reduce the financial burden on contractors, who often have to provide bank guarantees to secure projects. Surety bonds can also provide a more efficient and cost-effective way to manage risk, as they can be tailored to specific project requirements. Furthermore, surety bonds can help increase transparency and accountability in the construction sector, as they provide a clear and legally binding contract between parties.
Overall, the launch of IFFCO-Tokio’s surety bonds business is a positive development for India’s infrastructure sector. By increasing access to surety bonds and providing a more effective risk-mitigation tool, IFFCO-Tokio can help support the growth of small and medium-sized firms and promote trust among stakeholders. As the industry continues to address regulatory and operational challenges, the adoption of surety bonds is likely to increase, driving growth and development in the construction sector.
Dr. Awasthi has bid farewell following 40 years of providing visionary leadership.
Dr. Udai Shanker Awasthi, the Managing Director of the Indian Farmers Fertiliser Cooperative Limited (IFFCO), will retire on July 31, 2025, after a distinguished career spanning over four decades. During his tenure, Dr. Awasthi has played a pivotal role in transforming IFFCO into a world-renowned cooperative conglomerate, elevating it to unparalleled global prominence. As a chemical engineer from Banaras Hindu University, Dr. Awasthi joined IFFCO in 1976 and rose through the ranks to become Managing Director in 1993.
Under his leadership, IFFCO has achieved significant milestones, including diversification into various ventures that have empowered farmers across India. Dr. Awasthi’s visionary approach has led to strategic investments in countries such as Senegal, Oman, Jordan, and the UAE, as well as the establishment of joint ventures like IFFCO-Tokio General Insurance Company and IFFCO-Mitsubishi Corporation. He has also pioneered the use of nanotechnology in agriculture, leading to the development of innovative products like Nano Urea Plus and Nano DAP.
Dr. Awasthi’s contributions have earned him numerous accolades, including the global Rochdale Pioneers Award and the title of “Fertiliser Man of India.” He has also held leadership positions in the International Fertiliser Association and the Fertiliser Association of India. As he prepares to retire, Dr. Awasthi expressed his gratitude to the entire IFFCO family, including subsidiaries, joint ventures, and affiliates, as well as esteemed institutions and individuals who have supported him throughout his journey.
The Chairman of IFFCO, Dileep Sanghani, praised Dr. Awasthi’s selfless commitment to the organization, stating that he has been “profoundly immersed in the affairs of IFFCO” and has made significant sacrifices for the benefit of the organization. As Dr. Awasthi steps into retirement, IFFCO honors his legacy of innovation, integrity, and service, which will continue to guide the organization’s future endeavors. IFFCO is currently ranked as the world’s number one cooperative in terms of its contribution to GDP, according to the World Cooperative Monitor Report.
Dr. Awasthi’s retirement marks the end of an era, but his impact on the cooperative and fertilizer domains will be felt for generations to come. His dedication to the welfare of farmers and cooperatives has inspired countless individuals, and his pioneering work in nanotechnology has opened up new avenues for innovation in agriculture. As IFFCO looks to the future, it is clear that Dr. Awasthi’s legacy will continue to shape the organization’s trajectory and inspire new leaders to follow in his footsteps.
Recent Updates
Court Overturns Insurer’s Definition of ‘Accident’
The Uttarakhand State Consumer Disputes Redressal Commission recently ruled in favor of a complainant, Smt. Meera Srivastava, in a case against IFFCO Tokio General Insurance Co. Ltd. The insurance company had denied a personal accident insurance claim made by Srivastava after her husband’s death due to complications from rabies. The policy had been taken out as part of a personal loan agreement, and the husband had been covered from July 2010 to July 2011.
The insurer repudiated the claim, stating that the cause of death did not fall under the definition of “accidental bodily injury” as provided in the policy. However, the Commission rejected this contention, noting that the policy did not contain any express exclusion for rabies or related infections. The Commission observed that the general exclusions section did not reference deaths from viral infections or animal bites.
The Commission also examined the definition of “injury” under the policy, which was defined as an accidental bodily injury caused by external, violent, and visible means. The Commission held that if the rabies infection had resulted from a dog bite or similar external incident, it would fall within this definition. This interpretation is supported by judicial precedents, such as a Supreme Court ruling that death due to a snakebite qualifies as an accident under a personal accident policy.
The Commission applied the principle of “contra proferentem,” which holds that ambiguity in an insurance contract must be interpreted in favor of the policyholder. The Commission ultimately held that the insurer’s decision to repudiate the claim lacked justification and amounted to a deficiency in service under the Consumer Protection Act. The Commission directed the insurer to compensate the complainant with the sum assured under the policy, as well as additional amounts for mental agony and litigation costs.
This decision highlights the importance of clarity and consistency in how insurers handle claim repudiations. The Commission made it clear that exclusions must be expressly stated in the policy document and that insurers cannot rely on vague language or internal interpretations to avoid liability. The ruling sends a strong message that unjustified repudiations, particularly in cases involving personal loss or death, will not be upheld by consumer forums. The decision emphasizes the need for insurers to treat policyholders fairly and transparently and to honor claims when all policy conditions have been met and no clear exclusion applies.
Bhutani reviews IFFCO-TOKIO onboarding of cooperatives
The Union Ministry of Cooperation held a high-level review meeting on Tuesday at Atal Akshay Urja Bhawan in New Delhi. The meeting, chaired by Secretary Dr. Ashish Kumar Bhutani, aimed to assess the progress of IFFCO-TOKIO in onboarding cooperatives and outlining its business expansion strategies. The discussions focused on key areas such as strengthening cooperative outreach, widening insurance coverage, and aligning the company’s growth plans with the Ministry’s objectives.
Dr. Bhutani emphasized the importance of leveraging insurance solutions to protect cooperative members and enhance financial resilience at the grassroots level. He highlighted the need for IFFCO-TOKIO to expand its insurance coverage to more cooperatives, thereby providing financial security to its members. The meeting also explored ways to strengthen the cooperative sector through innovative insurance products and services.
The meeting was attended by senior officials from the Ministry of Cooperation, including Pankaj Kumar Bansal, Additional Secretary, and Raman Kumar, Joint Secretary. Representatives from IFFCO, including Managing Director K.J. Patel and Joint Managing Director & Chief Financial Officer Rakesh Kapur, were also present. Other key stakeholders from the cooperative sector attended the meeting, providing valuable insights and suggestions.
The review meeting marked an important step towards strengthening the cooperative sector through insurance solutions. By onboarding more cooperatives and expanding its insurance coverage, IFFCO-TOKIO can play a vital role in enhancing financial resilience and promoting economic growth at the grassroots level. The Ministry of Cooperation’s efforts to leverage insurance solutions for the cooperative sector are expected to have a positive impact on the lives of millions of cooperative members across the country.
Overall, the meeting underscored the importance of collaboration between the government, cooperative sector, and insurance companies to promote economic growth and financial inclusion. The outcomes of the meeting are expected to guide IFFCO-TOKIO’s future growth plans and strategies, ensuring that they align with the broader objectives of the Ministry of Cooperation. With a focus on strengthening cooperative outreach and widening insurance coverage, the meeting marked a significant step towards promoting the growth and development of the cooperative sector in India.
March 3 – March 9, 2025
The Karnataka High Court has made several significant rulings in recent cases. In the case of Bhagavant Alagur vs. State of Karnataka, the court directed the state government to implement a satellite-based imagery system to monitor changes to river banks and sand bars, in order to prevent indiscriminate river sand mining that affects drinking water supply.
The court also dismissed two public interest litigations seeking an enquiry into the Public Works Department and Karnataka Rural Infrastructure Department over alleged irregularities in issuing tenders. The court held that the petitions were based on general assertions and that the petitioners had alternative remedies available.
In another case, the court rejected the Bengaluru Metropolitan Transport Corporation’s (BMTC) claim that it lost 13 days of revenue due to a bus being in repair after an accident. The court held that there was no evidence to support the claim and dismissed the appeal.
The court also ruled in favor of Vijaya Bank, allowing it to retain an indemnity bond amount collected from a former employee who left the bank’s services before completing the mandatory service period.
In a case related to the Negotiable Instruments Act, the court held that a complainant can prefer an appeal against an acquittal order before the Sessions Court, rather than approaching the High Court.
The court also debunked the contradictory actions of the Road Transport Corporation (RTC) in defending a bus driver before the Motor Accidents Claim Tribunal, while taking disciplinary action against the driver for the same incident.
In a case related to a dispute between two religious institutions, the court directed the Police Commissioner to initiate a departmental inquiry against a police inspector for allegedly interfering with the functioning of one of the institutions.
The court also held that an arbitration clause cannot be invoked again over matters that have already been adjudicated upon and concluded by both the Arbitral Tribunal and competent courts.
In a high-profile case, the court quashed summons issued by the Enforcement Directorate to Chief Minister Siddaramaiah’s wife and Minister BS Suresh in the Mysore Urban Development Authority (MUDA) case.
The court also ruled that the imprisonment of a husband cannot exceed one month in a single application claiming arrears of maintenance. In another case, the court held that a beneficiary nomination under the Insurance Act cannot override succession law, and suggested "better practices" to follow while enacting or amending laws. Overall, the Karnataka High Court has made several significant rulings that have implications for various aspects of law and governance in the state.
The eleven cases are:
- Bhagavant Alagur vs. State of Karnataka: The court directed the state government to implement a satellite-based imagery system to monitor changes to river banks and sand bars.
- Gurunath Vadde vs. State of Karnataka: The court dismissed two public interest litigations seeking an enquiry into the Public Works Department and Karnataka Rural Infrastructure Department.
- BMTC vs. IFFCO TOKIO GENERAL INSURANCE CO. LTD & ANR: The court rejected BMTC’s claim that it lost 13 days of revenue due to a bus being in repair after an accident.
- Vijaya Bank vs. Abhimanyu Kumar: The court ruled in favor of Vijaya Bank, allowing it to retain an indemnity bond amount collected from a former employee.
- Thomas Mani vs. G Shankar: The court held that a complainant can prefer an appeal against an acquittal order before the Sessions Court.
- The Divisional Controller vs. Hussainsab: The court debunked the contradictory actions of the Road Transport Corporation (RTC) in defending a bus driver.
- Uttaradi Mutt vs. State of Karnataka: The court directed the Police Commissioner to initiate a departmental inquiry against a police inspector.
- Starlog Enterprises Limited vs. Board of Trustees of New Mangalore Port Trust: The court held that an arbitration clause cannot be invoked again over matters that have already been adjudicated upon.
- Parvathi vs. Directorate of Enforcement: The court quashed summons issued by the Enforcement Directorate to Chief Minister Siddaramaiah’s wife and Minister BS Suresh.
- ABC vs. XYZ: The court ruled that the imprisonment of a husband cannot exceed one month in a single application claiming arrears of maintenance.
- Neelavva @Neelamma vs. Chandravva & Others: The court held that a beneficiary nomination under the Insurance Act cannot override succession law.
IFFCO becomes first Co-operative to host AGM in Bharat Mandapam
The Indian Farmers Fertiliser Cooperative Limited (IFFCO) is set to make history by hosting its 54th Annual General Meeting (AGM) at the prestigious Bharat Mandapam, Pragati Maidan, New Delhi on May 29, 2025. This marks the first time a cooperative has held its AGM at this iconic venue, reflecting the growing strength and visibility of rural India and the cooperative movement. The event is expected to draw around 1,500 delegates from across the country, including over 1,000 elected representatives from IFFCO’s member cooperative societies.
According to Santosh Shukla, IFFCO’s General Manager (Cooperative Development), the choice of venue is significant, as it showcases the cooperative movement’s growing influence and reach. The AGM will feature a multi-purpose exhibition showcasing IFFCO’s subsidiaries and joint ventures, as well as national-level multi-state cooperatives such as Bharatiya Beej Sahakari Limited (BBSL) and National Cooperative Export Limited (NCEL). The event will also be broadcast live, allowing IFFCO’s 35,600 member societies to witness the proceedings and connect with the broader cooperative vision.
The AGM will be a celebration of the rural cooperative spirit, with a focus on strengthening ties between cooperatives and the government. Safety protocols and official training sessions will be in place to ensure a smooth and secure conduct of the event. IFFCO will also distribute the Sahakarita Ratna Award and the Sahakarita Bandhu Award to recipients during the AGM. With this historic event, IFFCO reaffirms its commitment to cooperative values while embracing innovation, inclusivity, and national pride.
The preparations for the event are in full swing, with IFFCO booking a main hall with a seating capacity of 1,000, along with additional multi-purpose halls to manage the crowd effectively. The event is expected to be a landmark moment in the history of the cooperative movement in India, showcasing the growth and influence of rural cooperatives. As Shukla noted, “This is not just an AGM, it’s a celebration of the rural cooperative spirit and a step toward strengthening the ties between cooperatives and the government.” With its commitment to cooperative values and innovative approaches, IFFCO is poised to make a significant impact on the rural cooperative landscape in India.
IFFCO Tokio Introduces Comprehensive Home Insurance Policy for Homeowners and Tenants Alike.
IFFCO-Tokio, a leading general insurer, has launched a new home insurance product called “Comprehensive Home Protector”. This policy is designed to cover the risk of loss or damage to physical assets, interests, and liabilities of the insured and their family, leaving no insurance gap. The policy is guided by the Insurance Regulatory and Development Authority of India (IRDAI) and offers de-bundled fire coverage, allowing policyholders to choose “Basic Fire Cover” and opt for additional coverage for natural and human-made disasters.
The policy also covers personal money and important documents lost outside the insured’s home, and provides for the cost of reproducing lost or damaged documents and items. Additionally, it covers damages to contents when changing homes from one geographic location to another, including damages due to fire, lightning, and robbery.
Other standout features of the policy include coverage for loss of jewelry and valuable items, damages to fine arts, and breakdown of domestic appliances. The policy also provides loan payment protection in case of death or disablement, and personal liability insurance. Furthermore, it takes care of tenant’s liability towards home owners against damages to buildings and contents.
To celebrate the launch, IFFCO-Tokio is offering a 10% early bird discount on policy premiums to those who buy the policy directly from the company. According to Ms. Niharika Singh, Executive Director of Marketing at IFFCO-Tokio, the launch of Comprehensive Home Protector marks a significant milestone in the company’s journey. The policy is designed to provide peace of mind to policyholders by covering a wide range of risks associated with home ownership.
IFFCO-Tokio General Insurance Company Limited is a joint venture between Indian Farmers Fertilizer Co-operative (IFFCO) and Tokio Marine Group, one of the world’s largest insurance companies. The company offers a range of retail and corporate insurance products through its wide distribution network, including motor, health, travel, and personal accident insurance. With the launch of Comprehensive Home Protector, IFFCO-Tokio aims to provide comprehensive protection to home owners and tenants, and promote peace of mind among its policyholders.
Ahmedabad District Commission Holds Iffco Tokio General Insurance Co. Liable For Wrongful Repudiation Of Valid Claim
The Additional District Consumer Disputes Redressal Commission in Ahmedabad, Gujarat, has held Iffco Tokio General Insurance Co. Ltd. liable for wrongly repudiating a valid claim made by a policyholder, Mr. Amrutlal Thakkar. The policy in question was a ‘Corona Kavach’ policy with a sum assured of Rs. 5 Lakh. Mr. Thakkar had undergone treatment for COVID-19 at Aartham Hospital, incurring an expenditure of Rs. 2,01,512/-. However, when he submitted a claim to the insurance company, they only disbursed Rs. 1,55,378/-, deducting the remaining amount without a valid cause.
The insurance company justified the deduction by citing the ‘Ayushman Maharashtra’ circulars, which they claimed allowed them to limit the payment to the approved package rates. However, the commission disagreed with this interpretation, stating that the circulars were not intended to override the terms of the policy. Instead, they were meant to ensure affordable treatment for the economically weaker sections who did not have insurance coverage.
The commission observed that the insurance company had arbitrarily deducted part of the claim, which was unjustified. They directed the insurance company to pay the remaining Rs. 46,134/-, along with Rs. 3,000/- as compensation and Rs. 2,000/- as legal costs to the complainant. The complaint against the hospital was dismissed, as the contractual obligation was solely with the insurance company.
The commission’s decision emphasizes that insurance companies cannot use government guidelines as an excuse to deny legitimate claims of policyholders. The ‘Ayushman Maharashtra’ circulars are intended to provide affordable treatment to those who cannot afford it, not to limit the payments to insured individuals. The case highlights the importance of insurance companies adhering to the terms of their policies and not misinterpreting government guidelines to their advantage.
The case, Amrutlal T. Thakkar vs Iffco Tokio General Insurance Co. Ltd. and Anr., is a significant precedent for consumers who have been wrongfully denied claims by insurance companies. It emphasizes the need for insurance companies to act in good faith and honor their contractual obligations. The decision also underscores the role of consumer courts in protecting the rights of policyholders and ensuring that insurance companies are held accountable for their actions.
According to a report by the brokers association, the Indian insurance companies that reject claims the least are revealed, providing insight into the claims settlement records of various insurers.
A recent report by the Insurance Brokers Association of India (IBAI) has revealed that the claim-to-settlement ratio for general insurance in India has decreased to 86% in 2022-23, down from 87% in the previous fiscal year. This means that 14% of claims were rejected by insurance companies. The report also found that the claims repudiation ratio, which is the proportion of claims rejected by insurers, rose to 6% for general insurance, including motor, health, fire, and marine cargo.
The report analyzed data from various insurance companies and found that public sector insurer New India Assurance had the lowest claims repudiation ratio of 0.2%. Other private insurers with lower rates of claims rejection include HDFC Ergo, Future Generali, Aditya Birla Health, and Shriram. The Insurance Regulatory and Development Authority of India (IRDAI) makes it mandatory for insurance companies to publish settlement and rejection data on their websites, which helps policyholders make informed choices.
The report categorized general insurers into four categories: public sector general insurers, large private sector general insurers, other private sector insurers, and standalone health insurers. In the health insurance category, New India Assurance had a claim-settlement ratio of 95%, followed by Aditya Birla Health with a ratio of 95%. Iffco Tokio and Bajaj Allianz were among the top large private sector general insurers with a claims-to-settlement ratio of 90% or more.
However, experts point out that the data is combined for group and individual policies, and claim-rejection rates are historically lower for corporate policies. They argue that separate claim-settlement data for individual health insurance policies is needed to get a true picture. Incomplete or false disclosure at the time of policy purchase also contributes to claim rejections.
The report also highlighted the low insurance penetration in India, which is at 30%, compared to developed countries like the US, where it is over 90%. The high 18% tax on insurance premiums is also a concern, as it makes insurance unaffordable for many people. Experts suggest that reform measures are needed to reduce taxes and provide segregated data on claim-settlement ratios to help people make informed choices. Additionally, there is a need for better infrastructure and social security nets to support the growth of the insurance industry and provide relief to policyholders.
IFFCO-Tokio General Insurance Marks Quarter Century Milestone, Reinforces Pledge to Achieve IRDAI’s Ambitious Goal of Insurance Penetration for All by 2047.
IFFCO-Tokio General Insurance is celebrating its 25th year of operations, marking a significant milestone in its journey to provide customer-centric insurance solutions. The company was founded in 2000 as a joint venture between IFFCO and Tokio Marine Group, with the goal of making insurance accessible to every individual, household, and business. Since its inception, the company has grown rapidly, with a GWP of ₹6 crore in 2000 expanding to ₹10,000 crore in 2024, serving millions of customers across India, including in rural areas and smaller towns.
As the company marks its Silver Jubilee year, it reaffirms its commitment to achieving the Insurance Regulatory and Development Authority of India’s (IRDAI) goal of “Insurance for All by 2047.” The company has been working towards this goal through its customer-centric approach, corporate social responsibility initiatives, and commitment to innovation.
Mr. Subrata Mondal, Managing Director and CEO of IFFCO Tokio, emphasized the company’s focus on education and skill development, as well as healthcare and sustainable practices, to empower rural communities. The company has trained over 5,000 women agents and has a network of over 34,000 agents, enabling it to reach a wider audience.
The company has received several awards and recognition for its exceptional leadership, innovation, and commitment to the insurance industry. IFFCO Tokio has been awarded the “Healthcare Insurance Company” award, the “Best Use of AI in Insurance” award, and the “Smart CISO” award, among others.
As the company looks to the future, it is committed to continuing its mission of making insurance accessible to all, with a focus on rural development, education, and corporate social responsibility.