Registered Office IFCI Tower, 61, Nehru Place, New Delhi 110019 Corporate Office Continental Chambers, 3 rd Floor, 142, M.G. Road, Numgambakkam, Chennai 600034 Regional Office West Mafatlal Chambers B, Wing C, Ground Floor, N.M.Joshi Marg, Lower Parel (E) Mumbai 400013 Website: www.ifinonline.com Dated 02 nd August 2016 Request for Proposal (RFP) for Corporate Agency Arrangement for Life Insurance, General Insurance & Standalone Health Insurance Business 1
Index Sr. No Particulars Page No. Bid details & Important dates for Bidders 3 A General Information 3 B About IFIN Corporation of India Ltd 4 C Objectives 4 D Bidders Eligibility Criteria 5 E Clarification and Amendment of RFP Documents 5 F Rejection of Bids 6 G Proposal Validity 6 H Short listing & Selection of Insurance Partner 6 I Preparation of Proposals 7 J Submission, Receipt, and Opening of Proposal 7 Form 1 Covering Letter for Proposal submission 8 Form 2 Organisation snapshot 10 Form 3 Organisation Details 11 Form 4 Products & Commission 11 Form 5 Channel wise Business break-up of Business 12 Form 6 Segment Wise Business (for Life Insurance companies) 12 Form 7 Segment Wise Business (for General Insurance companies) 13 Form 8 Segment Wise Business (for Standalone Health Insurance 13 companies) Form 9 Claim Settlement 13 Form 10 IRDAI Penalty & Warnings 14 Form 11 Grievance Redressed 14 Form 12 Distribution Parameters 15 Form 13 Business & Revenue Estimate 16 Form 14 Support (Other than Technical) 17 Form 15 Support (Technical) 18 Form 16 Hospital Network(For General & Standalone Health Insurers 19 only) Form 17 Third Party Administrator(For General & Standalone Health Insurers only) 20 Schedule 1 Form of Board Resolution 21 2
Request for Proposal (RFP) for strategic tie-ups with Life, General & Standalone Health Insurers to promote Insurance Products vide Corporate Agency Arrangement Bid details & Important dates for Bidders Sr. No. Subject Date/ Time 1 Date of RFP 02 Aug 2016 2 Objective Selection of Life Insurance, General Insurance & Standalone Health Insurance Companies for corporate agency tie up under IRDAI Open Architecture Policy. 3 Date and Time for seeking written 10 Aug 2016 by 5.00 PM clarification to RFP 4 Date and Time by when IFIN will 16 Aug 2016 respond to the clarifications sought by Bidders 5 Date and Time for Bidders to response 24 Aug 2016 by 5.00 PM to RFP 6 Date of Opening of Bid 26 Aug 2016 7 Presentation by Qualifying Bidders Shall be intimated by IFIN 8 Address for Submission of Bid & Place of Opening of Bids Shri. Santanu T. Ray Vice President FPD & Regional Head West- Broking IFCI Financial Services Limited Mafatlal Chambers B, Wing C, Ground Floor, N.M. Joshi Marg, Lower Parel (E) Mumbai 400013 Tele: 022-43335111/ 43335181 Fax: 022-43335110 9 Email address santanutray@ifinltd.in 10 Website www.ifinonline.com 11 Total No. of Pages of RFP document 21 A. General Information: IFCI Financial Services Limited (hereinafter called as IFIN ) is exploring the possibility of entering into a distribution partnership of Life, General & Standalone Health insurance companies by way of corporate agency arrangement, for which IFIN invites proposals from existing insurance companies in India ( Bidder ). Bidders are hereby advised to carefully review and submit all relevant information as sought in the RFP. Details of the objectives, eligibility and qualification criteria, data & documents required to be submitted along with RFP, criteria that would be adopted for evaluation of the responses for short listing and other information is contained in the RFP document. The RFP document can be downloaded from our website www.ifinonline.com 3
B. About IFCI Financial Services Limited IFCI Financial Services Ltd (IFIN) was promoted in 1995, by IFCI Ltd., to provide a wide range of financial products and services to investors, institutional and retail. IFIN is primarily involved in Stock Broking, Investment Banking, Mutual Fund Distribution & Advisory Services, Depository Participant Services, Insurance Products Distribution and the like. Our bouquet of products and services are focused towards creating wealth for Client s through their exposure in Equity, Commodities and Currencies. We actively consider Margin funding / Lending. Other value added services include Depository Participant, Investment Banking, Mutual Funds and Insurance Products. It offers these services through its own and subsidiary s branches in major cities all over India. IFIN has Pan India network of close to 32 branches spread across the country. IFIN enjoys the trust of lakhs of customers given its institutional status and has a proven track record of Process, Operational and Service capabilities. IFIN was an existing corporate agent promoting Insurance products of one Life Insurance Company and one Non Life Insurance Company prior to April 1 st, 2016. IFIN intends to tie up with Multiple Insurance Partners to act as a Corporate Agent (composite) as per the latest IRDAI guidelines. Keeping in view the earlier experience, exposure and or business continuity relations will continue with the earlier strategic alliances. With regards to further tie ups, IFIN hereby invites new Insurers from the respective segments. C. Objectives I. In view of the new Corporate Agency guidelines notified by IRDAI, IFIN has decided to go for multiple tie up for one &/or more Life, General & Standalone Health Insurance Business. II. With a view to provide full range of financial products to its customers and to realize full value of its reach and customer base, IFIN has taken a view to evaluate and thereafter enter into Corporate Agency Arrangement for distribution of Insurance products, subject to all statutory clearances and approvals from all relevant Authorities in this behalf, under the extant laws and regulatory framework. III. IFIN would like to enter into a Corporate Agency (Composite) arrangement with shortlisted Life, General &/or Standalone Health Insurers. IV. Once the responses to the RFP are received, IFIN will start the evaluation process and finalize the most suitable Insurers. D. Bidders Eligibility Criteria: It is mandatory for the potential bidders to ensure that the following minimum eligibility criteria are met in order to participate in the process: 4
Life Insurance Companies: 1. Should have been registered with IRDAI under the Life Insurance category and poses valid IRDAI license as on date of submission of RFP response, for procuring insurance business in India. 2. More than 12 financial years of business operations as on 31 March 2016 3. Branch network in excess of 200 branches 4. Capital Base in excess of Rs.1500 Cr 5. Minimum of 900 Crores Weighted Received Premiums for Financial Year 2015-16. 6. 90% or above overall claim settlement ratio for the last three years 7. Assets under Management in excess of Rs.15,000 Cr as on 31 March 2016 8. Solvency of minimum 150% 9. Must be profitable since last three financial years General Insurance Companies: 1. Should have been registered with IRDAI under the General Insurance category, and poses valid IRDA license as on date of submission of RFP response, for procuring insurance business in India. 2. More than 12 financial years of business operations as on 31 March 2016 3. Branch network in excess of 100 branches 4. Capital Base in excess of Rs.175 Cr 5. Minimum of 2900 Crores Gross direct premium Income Underwriting as on 31 March 2016. 6. 95% or above overall claim settlement ratio for the last three years 7. Solvency of minimum 150% 8. Must be profitable since last three financial years Health Insurance Companies: 1. Should have been registered with IRDAI under the Standalone Health Insurance category, and poses valid IRDAI license as on date of submission of RFP response, for procuring insurance business in India. 2. Should have been operational for more than 2 financial years in India. 3. Capital Base in excess of Rs.170 Crores. 4. 90% or above overall claim settlement ratio. 5. Solvency of minimum 150%. E. Clarification and Amendment of RFP Documents The Bidder may request clarifications on any clause of the RFP document up to 10 Aug 2016. Any request for clarification must be sent by standard electronic means to santanutray@ifinltd.in. IFIN will respond in writing or by standard electronic means, if necessary will load the responses on its website. Should IFIN deem necessary, it may amend the RFP as a result of any clarification. At any time before the submission of Proposals, IFIN may amend the RFP by issuing an addendum and hosting it on our website. The addendum will be binding on all the bidders. To 5
give bidders reasonable time, in which to take an amendment into account in their proposals, IFIN may, if the amendment is substantial, extend the deadline for the submission of Proposals. F. Rejection of Bids IFIN reserves the right to reject the Bid if, The Bid is incomplete as per the RFP requirements Any condition stated by the Bidder is not acceptable to IFIN If the RFP and any of the terms and conditions stipulated in this document are not accepted by the authorized representatives of the Bidder Required information is not submitted as per the format given Any information submitted by the Bidder is found to be untrue / fake / false The Bidder does not provide, within the time specified by IFIN, the supplementary information / clarification sought by IFIN for evaluation of the Bid. IFIN shall be under no obligation to accept any offer received in response to this RFP and shall be entitled to reject any or all offers without assigning any reason whatsoever. IFIN may abort the entire process at any stage, thereby without incurring any liability to the affected bidder(s) or any obligation to inform the affected bidder(s) of the grounds for our action. Proposals received after the specified time on the last date shall not be eligible for consideration and shall be summarily rejected. G. Proposal Validity All Proposals shall be valid for a period of 180 days from the last date of submission mentioned. IFIN will make its best effort to complete the process within this period. However, should the need arise IFIN may request the Bidder to extend the validity period of their proposals. Bidders, who do not agree, have the right to refuse to extend the validity of their Proposals; under such circumstance, IFIN shall not consider such proposal for further evaluation. H. Short listing & Selection of Insurance Partner The RFP response may be sent or submitted at Regional Office West, Mumbai, of IFCI Financial Services Limited at the following address, complete with all the requirements as given in the RFP document latest by 5.00 PM on 24 Aug 2016 addressed to: Shri. Santanu T. Ray Vice President FPD & Regional Head West- Broking IFCI Financial Services Limited Mafatlal Chambers B, Wing C, Ground Floor, N.M. Joshi Marg, Lower Parel (E) Mumbai 400013 Tele: 022-43335111/ 43335181 Fax: 022-43335110 No proposal will be accepted after this date and time. IFIN will not be responsible for any postal delays and submission by way of e-mail is not acceptable. Bidders are to submit the RFP in hardcopy format in original along with one set of 6
photocopy and 2 soft copies by means of CD.The documents in the CD should be in no other format other than word, excel and power point Bids of only those Bidders will be evaluated, who meet the minimum eligibility criteria as specified in the RFP. Evaluation of all eligible bids will be done on basis the information sought in the RFP by IFIN officials and/or an expert. They would further evaluate the responses and may call for any additional details as required. The qualified bidders meeting the eligibility criteria will be called for a presentation and discussion. I. Preparation of Proposals In preparing their Proposal, Bidders are expected to examine in detail the documents comprising the RFP. Material deficiencies in providing the information requested may result in rejection of a Proposal. While preparing the Proposal, the Bidder must give particular attention to the following: The data should be furnished strictly in accordance with the format specified All monetary numbers should be in INR. Denomination in INR Crores is preferred for large numbers. Annual numbers for Indian operations should be for Fiscal Year ending March 31 2016 unless otherwise specified. Submission of the data in the wrong type of formats will result in the Proposal being deemed non-responsive. J. Submission, Receipt, and Opening of Proposal The original bid shall contain no interlineations or overwriting, except as necessary to correct errors made by the Bidders themselves. The person, who has signed the proposal, must initial such corrections. An authorized representative who would be signing the Submission letter shall initial all pages of the original Bid Document with company seal. The Bid documents along with the data as per the formats mentioned in the Data Sheet must be submitted at the same time but in a single sealed envelope duly super scribed as IFIN RFP for Corporate Agency (Composite) The bids would be opened on 26 Aug 2016 at the Regional Office West of IFCI Financial Services Limited, Mumbai. From the time the Proposals are opened to the time the Bidders are shortlisted, the Bidder should not contact IFIN on any matter. Any effort by Bidders to influence IFIN in the examination, evaluation, ranking of Proposals, and recommendation for award shall result in the rejection of the Bidders Proposal. IFIN reserves the right to seek clarifications from the Bidders. 7
Form-1 Covering Letter for Proposal submission (To be submitted on Company Letter head) [Location, Date] To: Shri. Santanu T. Ray Vice President FPD & Regional Head West- Broking IFCI Financial Services Limited Mafatlal Chambers B, Wing C, Ground Floor, N.M. Joshi Marg, Lower Parel (E) Mumbai 400013 Dear Sir / Madam, Sub: RFP for proposed Corporate Agency Arrangement with IFCI Financial Services Limited for Life / General / Health [insert] Insurance Business 1. We, the undersigned are duly authorized to represent and act on behalf of [insert] ( Bidder ) in terms of the enclosed Board resolution at Schedule 1. 2. Having reviewed and fully understood all information provided in the RFP Document dated (Insert) issued by IFIN, we [Bidder Name] are hereby submitting our Bid. 3. Our Bid is unconditional, valid and open for acceptance by IFIN up until 180 days from the last date of submission of the RFP. 4. We undertake that we shall make available to IFIN any additional information clarification it may find necessary or require to supplement or authenticate the Bid. 5. We hereby agree, undertake and declare as under: a. In the event that IFIN discovers anything contrary to our above declarations, it is empowered to forthwith disqualify us and our Bid. b. We undertake that in case there is any change in facts or circumstances during the Bidding process, and we are being disqualified in terms of the RFP, we shall intimate IFIN of the same immediately. c. We further declare that we have not been declared ineligible for corrupt or fraudulent practices in any bidding process in the past five years. d. We confirm that IFIN and its authorized representatives are hereby authorized to conduct any inquiry or investigation to verify the veracity of the statements, documents, and information submitted in connection with this Bid and to seek clarifications from our advisors and clients regarding any financial and technical aspects. e. We hereby irrevocably waive any right which we may have at any stage at law or howsoever otherwise arising to challenge or question any decision taken by IFIN in connection with the selection of the Bidder or in connection with the Bidding process, 8
in respect of the above mentioned Proposed Tie-up and the terms and implementation thereof. 6. We understand that: a. All information submitted under this Bid shall remain binding upon us. b. IFIN may in their absolute discretion reject or accept any Bid or cancel the Bidding Process. c. IFIN has the right to reject our Bid without assigning any reason for the Proposed Tieup and can also reject all Proposals. Otherwise and hereby we waive our right to challenge the same on any account whatsoever. d. IFIN is not bound to accept any Bid that it may receive pursuant to the RFP. 7. We acknowledge that IFIN will be relying on the information provided in the Bid and the documents accompanying such Bid for selection of the Bidders and we declare that all statements made by us and all the information pursuant to this letter are complete, true and accurate to the best of our knowledge and belief. 8. We hereby unconditionally undertake and commit to comply with the timelines as specified in terms of the RFP or as extended by IFIN from time to time at its sole discretion. 9. This Bid shall be governed by and construed in all respects according to the laws of India. Courts in Mumbai, shall have exclusive jurisdiction in relation to any dispute arising from the RFP, this Bid and the Bid process. We confirm that we are complying with the IRDAI guidelines. Name of the Bidder Signature of the Authorized Person Name of the Authorized Person Company rubber stamp/seal 9
Form -2 Organisation snapshot Name of the Applicant Firm 1 Complete address H.O. Board no. - Head Office Website Names of the JV Partners & % of stake held by each as on 31 March 2016 2 1. 2. 3. 3 Year of establishment 4 Month & Year of Commencement of Business 5 IRDAI License number 6 Number of Branches as on 31 March 2016 Financial Information 2013-14 2014-15 2015-16 Invested Capital (INR Cr) Operating Profit / (Loss) (INR Cr) 7 Profit / (Loss) after Tax (INR Cr) Accumulated profit / loss (INR Cr) Networth (INR Cr) AUM (INR Cr) Solvency Ratio Business Information 2013-14 2014-15 2015-16 8 Number of Policies (NOP s) Gross Direct Premium (INR Cr) Claims Paid (INR Cr) 9 Combined Ratio 2013-14 2014-15 2015-16 (for other than Life Insurers) 10
Form 3 Organisation Details A. Please provide the list of All Board of Directors as on Date with a brief background of each. B. Please provide the organization chart as on Date showing the structure of various departments that exist and the reporting structure of respective functional heads. C. Please provide the structure & hierarchy of Corporate Agency channel as on date. D. Please provide the list of Top Management Executives as on date with their Names, Designation & e-mail id s in the format as given below: Name Designation e-mail E. Please provide the number of branches as on March 31,2016 in each State or Union Territory as per the format given below: State / Union Territory No. of Branches Form 4 Products & Commission Name of the Product Product Category Maximum Commission approved by IRDAI Maximum Commission offered to IFIN* * Within the permissible IRDA regulations and guidelines. 11
Form 5 Channel wise Business break-up of Business Particulars Tide Agency Gross Premium 2013-14 2014-15 2015-16 Corporate Agent (Bank) Corporate Agent (Others) Brokers Web Sales Direct Sales Team Others Total Form 6 Segment Wise Business (for Life Insurance companies) Sl.No. Details 2013-14 2014-15 2015-16 1 Total new business premium 1 a Single premium 1 b Regular premium 2 Annualized New business premium 3 Renewal premium 4 Product mix 4 a ULIP 4 b Traditional 4 c Par 4 d Non Par 5 Total # of policies 6 Average premium per policy (INR lakhs ) Average sum assured per policy (INR 7 lakhs) 8 Persistency ratio (%) 8 a For 13th Month 8 b For 25th Month 8 c For 37th Month 12
Form 7 Segment Wise Business (for General Insurance companies) FY Fire Marine Motor Health Others Total 2013-14 2014-15 2015-16 Form 8 Segment Wise Business (for Standalone Health Insurance companies) FY Health Travel Personal Accident Others Total 2013-14 2014-15 2015-16 Form 9 Claim Settlement Particulars Claims pending at start of year (A) Claims intimated / booked (B) Total Claims (C=A+B) Claims paid (D) Claims repudiated (E) Claims Written Back (F) Claims pending at end of year (G=C-D-E- F) No. of Policies 2012-13 2013-14 2014-15 Amoun No. of Amoun No. of t of Policie t of Policie claim s claim s Amoun t of claim 13
Form 10 IRDAI Penalty & Warnings FY Penalty /Warnings Amount of Penalty levied Detailed Reason for Action 2015-16 2014-15 2013-14 Form 11 Grievance Redressed Financial Year Opening Balance of Grievances c/f Grievance Reported during the year No. of grievances resolved during the year No. of grievances pending at the end of the year FY 2013-14 FY 2014-15 FY 2015-16 14
Form 12 Distribution Parameters: Please provide List of Corporate Agent for the organization as on March 31, 2016. Corporate Agency Sales Force (No. of Staff) Corporate Agent Banks 1 2 3 4 5 6 Corporate Agent - Others 1 2 3 4 5 6 Name of the Bank Name of the Organization Total Premium (FY15-16) Total Premium (FY15-16) Corporate Agent of Bidder Since Corporate Agent of Bidder Since 15
Form 13 Business & Revenue Estimate 1. Please provide the Estimated Potential for Next 3 Years that IFIN holds to do Insurance Business and earn revenue from the same. NOP's Year 1 Year 2 Year 3 Gross Direct Premium Revenue to IFIN 2. Please provide a detailed Business Strategy & Road Map to achieve the same. (Contd. on next page) 16
Form 14 Support (Other than Technical) Please elaborate on the kind of support that Bidder will provide to IFIN on each of the parameters as listed below. The Bidder may feel free to add any other support that it may wish to provide to the Bank which helps in increasing the business & revenue. Kindly note that this does not refer to commercial support or payment. The support committed below should be in line with IRDA guidelines, to help IFIN increase insurance business and insurance coverage suited to customer needs. Sr. No. Support Remarks 1 Manpower 2 Training 3 Marketing 4 Operational 5 Claims 6 MIS 7 After Sales Service 8 Any Other Support (Pls specify) 17
Form 15 Support (Technical) Technology Support Tablet/mobile based technology for sales support staff and Corporate Agent System Capability 1. Content Management ( brochures, product presentation, competition benchmarking, videos etc) 2.1 Lead Management Branch employee as user 2.2 Lead management with Benefit illustration/premium calculator 3.1 Sales Process -Form Filling 3.2 Sales Process- Electronic Payment 3.3 Sales Process- Underwriting 3.4. Sales Process- e-signature 4. Pre Issuance Verification call 5. Additional requirement document upload 6. MIS Branch wise/customized & as per Regulatory Requirements 7. Tracking of Issuance & Servicing Request Available / Not Available Web Mobile/Tablet 18
Form 16 Hospital Network(For General & Standalone Health Insurers only) as on March 31, 2016 Name of State No. Of Hospitals on Panel No. Of Hospitals providing cashless facility 19
Form 17 Third Party Administrator(For General & Standalone Health Insurers only) Do you have a In house TPA or are the services out sourced? Sr. No Name of TPA No. of Hospitals at the beginning of year No. of Hospitals added to the network during the year No. of Hospitals withdrawn or removed till March 31, 2016 Total number of hospital in the network in till March 31, 2016 Declaration: All the information furnished by us here in above is correct to the best of our knowledge and belief. We have no objection if enquiries are made about the work listed by us in the accompanying sheets / annexure. We agree that the decision of IFIN in selection process will be final and binding on us. We confirm that we have not been barred / blacklisted / disqualified by any Regulators / Statutory body in India. We understand that if any false information is detected at a later date, the assignment shall be cancelled at the discretion of IFIN. Place: Signature of Applicant: Date: of Organization Name & Designation/ Seal 20
Schedule 1 Form of Board Resolution CERTIFIED TRUE COPY OF THE MEETING OF THE BOARD OF DIRECTORS OF [BIDDER] HELD ON [ ] AT [ ] RESOLVED THAT, * + and * +, Directors/Officers of [Bidder], whose specimen signatures appear below, be and are hereby jointly and severally authorized, to do all such acts, deeds and things as are necessary or required in connection with or incidental to submission of our Bid and finalization of our tie-up with IFCI Financial Services Ltd. ( IFIN ), in response to the Request For Proposal dated [insert] issued by IFIN, on behalf of the Company, including but not limited to signing and submitting all applications, Bids and other documents and writings, participating in Bidders and other conferences and providing information / responses to IFIN, representing the Company in all matters before IFIN and generally dealing with IFIN in all matters in connection with or relating to or arising out of our Bid and the Bid process and is authorized to negotiate and conclude the tie-up. Specimen signature ----------------------------- Name: Designation: Specimen signature ----------------------------- Name: Designation: Certified true copy for and on behalf of [Bidder] Signature of the Authorized Person with date Name of the Authorized Person Company rubber stamp/seal 21