1.

INDUSTRY PROFILE

1.1 INTRODUCTION:
The English word "health" comes from the Old English word hale, meaning "wholeness, a being whole, sound or well,. At the time of the creation of the World Health Organization (WHO), in 1948, health was defined as being "a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity" The term health insurance is generally used to describe a form of insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering disability or long term nursing or custodial care needs. It may be provided through a governmentsponsored social insurance program, or from private insurance companies. For an individual, either at a personal level or the family front, of which he or she is a part, health is an extremely important subject, which needs to be given priority. The same concept can be extended to the level of the country, where the health of the citizens, comes at the core for its long term sustainable development.

1.1.1 History of Insurance in India

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies.
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In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers. The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd.,
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the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein , among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests. In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. Today there are 14 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 14 life insurance companies operating in the country.

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The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the countrys GDP. A well developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country. The government initiative was not enough to meet the demands from a growing population be it in primary, secondary or tertiary health care. Alternate sources of finance were critical for the sustainability of the health sector.We need to understand the various methods that are used by individuals & families in financing the overall health care expenditure, before we go into further details regarding the various initiatives of state & society.There is a basic structure & process as to how Healthcare Expenditure is financed by people in India. I am providing below a flowchart, highlighting the various optionsundertaken to finance their health care expense. There are mainly 2 ways, by way of which health care expense can be tackled. It can either be done, privately(i.e. procure the money personally) or with the help pf State or Society/public.In case of Private financing, there are 3 options, available with any person, which are under-mentioned:1) Out of Pocket Self financing. I.e. the person pays from his or her own pocket & savings. 2) Private Health Insurance The expense is taken care by the health policy, which the person owns. 3) External Source By way of managing personal loans from friends & family or Banks etc In the case of Public Financing option, the person again has 3 options, undermentioned:1) State Funded The Govt. provides for the medical care or gives some subsidy. 2) Social security In developed countries by paying a small amount to the state, you are covered for medical. 3) External funded Aid or grants etc Till about 20 years back, the private sectors venture in the health care sector consisted of only solo practitioners, small hospitals and nursing homes. The quality of service provided was excellent especially in the hospitals run by charitable trusts and religious foundations.
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In 1980's realizing that the government on its own would not be able to provide for health care, the government allowed the entry of private sector to reduce the gap between supply and demand for healthcare. The private hospitals are managed by corporate, non-profit or charitable organizations. The establishment of private sector has resulted in the emergence of opportunities in terms of medical equipment, information technology in health services, BPO, Telemedicine and medical tourism.

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1.2 THE CURRENT HEALTH INSURANCE SCENARIO:

India spends about 6.5 to 7% of GDP on Health care (official estimates around 6%) out of which 1.2% is in the Govt. sector (this accounts for 22% of overall spending) and 4.7% in private sector (78% of overall spending). In India, we yet do not have any universal health insurance plan, which caters to all the citizens of our country. There are various types of health overages in India. Based on ownership the existing health insurance schemes can be broadly divided into 4 categories, such as: 1) Government or state-based systems 2) Market-based systems (private and voluntary) 3) Employer provided insurance schemes 4) Member organization (NGO or cooperative)-based systems The 3 broad institutions under which the above-mentioned 4 health Insurances schemes are offered: Government or state-based systems Government or state-based systems include Central Government Health Scheme (CGHS) and Employees State Insurance Scheme (ESIS). It is estimated that employer managed systems cover about 20-30 million of population. The schemes run by member-based organizations cover about 5 per cent of population in various ways. But there are some special insurance schemes promoted by the Government, which provide medical benefits to specific sections of our society.The under-mentioned initiatives & schemes are those which have been promoted by the Government or with the help of the Government. Central Government Health Scheme (CGHS) Started in 1954 with 16 allopathic dispensaries covering 2.3 lac beneficiaries Provides comprehensive medical care to central govt. employees Mutual advantage to both employee and employer
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Now 320 dispensaries/hospitals in various systems of medicines covering 42.76 lac beneficiaries

Since 1954, all employees of the Central Government (present and retired); some autonomous and semi-government organizations, MPs, judges, freedom fighters and journalists are covered under the Central Government Health Scheme (CGHS). This scheme was designed to replace the cumbersome and expensive system of reimbursements (GOI, 1994). It aims at providing comprehensive medical care to the Central Government employees and the benefits offered include all outpatient facilities, and preventive and promotive care in dispensaries. Inpatient facilities in government hospitals and approved private hospitals are also covered. This scheme is mainly funded throughCentral Government funds, with premiums ranging from Rs 15 to Rs 150 per month based on salary scales. The coverage of this scheme has grown substantially with provision for the nonallopathic systems of medicine as well as for allopathy. Beneficiaries at this moment are around 432 000, spread across 22 cities. The CGHS has been criticized from the point of view of quality and accessibility. Subscribers have complained of high out-of-pocket expenses due to slow reimbursement and incomplete coverage for private health care (as only 80% of cost is reimbursed if referral is made to private facility when such facilities are not available with the CGHS). Employee and State Insurance Scheme (ESIS) The enactment of the Employees State Insurance Act in 1948 led to formulation of the Employees State Insurance Scheme. This scheme provides protection toemployees against loss of wages due to inability to work due to sickness, maternity, disability and death due to employment injury. It offers medical and cash benefits, preventive and promotive care and health education. Medical care is also provided to employees and their family members without fee for service. Originally, the ESIS scheme covered all power-using non-seasonal factories employing 10 or more people. Later, it was extended to cover employees working in all non-power using factories with 20 or more persons. While persons working in mines and plantations, or an organization offering health benefits as good as or better than ESIS, are specifically excluded.
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Service establishments like shops, hotels, restaurants, cinema houses, and road transport and news papers printing are now covered. The monthly wage limit for enrolment in the ESIS is Rs. 6 500, with a prepayment contribution in the form of a payroll tax of 1.75% by employees, 4.75% of employees' wages to be paid by the employers, and 12.5% of the total expenses are borne by the state governments. The number of beneficiaries is over 33 million spread over 620 ESI centers across states. Under the ESIS, there were 125 hospitals, 42 annexes and 1 450 dispensaries with over 23 000 beds facilities. The scheme is managed and financed by the Employees State Insurance Corporation (a public undertaking) through the state governments, with total expenditure of Rs 3 300 million or Rs 400/- per capita insured person. The ESIS programme has attracted considerable criticism. A report based on patient surveys conducted in Gujarat (Shariff, 1994 as quoted in Ellis R et a,2000) found that over half of those covered did not seek care from ESIS facilities. Unsatisfactory nature of ESIS services, low quality drugs, long waiting periods, impudent behaviour of personnel, lack of interest or low interest on part of employees and low awareness of ESI procedures, were some of the reasons cited. Other Government Initiatives Apart from the government-run schemes, social security benefits for the disadvantaged groups can be availed of, under the provisions of the Maternity Benefit (Amendment) Act 1995, Workmens Compensation (Amendment) Act 1984, Plantation Labour Act 1951, Mine Mines Labour Welfare Fund Act 1946, Beedi Workers Welfare Fund Act 1976 and Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996. The Government of India has also undertaken initiatives to address issues relating to access to public health systems especially for the vulnerable sections of the society. The National Health Policy 2002 acknowledges this and aims to evolve a policy structure, which reduces such inequities and allows the disadvantaged sections of the population a fairer access to public health services. Ensuring more equitable access to health services across the social and geographical expanse of the country is the main objective of the policy. It also seeks to increase the aggregate public health investment through increased contribution from the Central as well as state governments and encourages the setting up of private insurance instruments for increasing the
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scope of coverage of the secondary and tertiary sector under private health insurance packages. The government envisages an increase in health expenditure as a % of GDP from existing 0.9% to 2.0 % by 2010 and an increase in the share of central grants from the existing 15% to constitute at least 25% of total public health spending by 2010. The State government spending for health in turn would increase from 5.5% to 7% of the budget by 2005, to be further increased to 8% by 2010.

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1.3 THE GAPS & IMPROVEMENTS AREA IN HEALTH INSURANCE:

Health insurance is an expense, to be sure, but the importance of health insurance really helps defray that expense. To save money, it is better to work with a health insurance agent who can help you compare plans and costs to find the best one for you and your family's needs. Remember, medical expenses are higher than ever, so if you have to be hospitalized for any reason, your costs are going to be a lot higher than you might have anticipated. They could be so high that you simply can't pay them, and bankruptcy is your only recourse. It doesn't make sense to go bankrupt, and ruin your financial future, just because you didn't buy affordable health insurance. Think about another importance of health insurance. Your family. your children need health care throughout their young lives, and it seems like kids are always getting into scrapes that require a trip to the emergency room. If you take care of a family, you owe it to them to get health insurance. Without it, your entire family is vulnerable, and if anything happened, would you want to live with the guilt that having no health insurance could create? The importance of health insurance cannot be overrated. Certainly, it can be difficult to come up with the money for individual health insurance. But can you afford to be without it, really? Over the last 50 years India has achieved a lot in terms of health improvement. But still India is way behind many fast developing countries such as China, Vietnam and Sri Lanka in health indicators (Satia et al 1999). In case of government funded health care system, the quality and access of services has always remained major concern. A very rapidly growing private health market has developed in India. This private sector bridges most of the gaps between what government offers and what people need. However, with proliferation of various health care technologies and general price rise, the cost of care has also become very expensive and unaffordable to large segment of population. The government and people have started exploring various health financing options to manage problems arising out of growing set of complexities of private sector growth, increasing cost of care and changing epidemiological pattern of diseases. The proportion of insurance in health care financing in India is extremely low. Public spending in health care is very low at 17% and the National Health Policy has recognized this More than 86% of healthcare financing is through unplanned or, non-contributory spending 86% from outof-pocket expenses 83% from private sector spending Health care financing in India. As per the statistics of the total health expenditure in India, worth Rs 3 lakh crore, the spending on hospitalization accounts for Rs 1 lakh crore in the country. Against this, the existing level of health insurance premium was worth only Rs 6,000 crore, which means that a majority section of the Indian populace does not have an insurance cover, hich is a great opportunity to be tapped.
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1.4 DOUBTS OF CUSTOMERS:

1. New modern private insurance companies are indulging in moneymaking businesses with little interest in insurance. 2. Insurance policies contain too many exclusion clauses. 3. Most insurance companies now use call centers and staff attempt to answer questions by reading from a script.It is difficult to speak to anybody with expert knowledge. These are some of the main short-coming which the Health Insurance companies, need to tackle to raise the confidence level of the customers and also gain positive word of mouth feedback & references. In addition, there are some inherent changes, which the industry should look at, if we want to move towards the next plat-form in Health Insurance, in India. We can call these the Pillar of Changes, necessary to evolve the Health Insurance market. These changes need to be brought about at the industry level, where all the companies should make combined efforts.

1.5 PILLARS OF CHANGE:

I am jotting down the same, with a brief description of the change that arerequired. 1. Consumer Awareness We need to create the Awareness Increase exposure through media (TV, Radio and Internet). In this case, the traditional model is more generic and there is a need to reinvent the messages based on target groups to achieve the business objectives.

2. Standardization of Health care costs and Accreditation norms Lack of standardization & accreditation, makes it difficult to judge the quality of health service being provided by health-care institutions. In addition varying treatment cost & bargaining is adding to the woes of the health industry.Worldwide, the Standardization & Accreditation of Hospitals of Healthcare Delivery System has become the focus. In India health care delivery system has remained largely fragmented and uncontrolled. The focus of accreditation is on continuous improvement in the organizational and clinical performance of health services, not just the achievement of a certificate or award or merely assuring compliance with minimum acceptable standards. 3. Healthcare Infrastructure

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Till now, in India, the health sector i.e. the primary health care system has been managed mainly by the shallow structure of government health-care facilities and other public health care systems in a traditional model of health funding and provision. But, it is unable to justify the demand for health security by over 200 million of the health insurable population in India, mainly due to service costs being out of reach of many people, absence of good and effective number of physicians, low rate of education programs, less number of hospitals, poor medical equipment and over all, the poor budget of government towards the health program. 4. Data & Information Exchange On account of insufficient & properly managed data availability on Indian customers & disease related information, is making is difficult for the Health Insurance companies to properly design & price products. Whatever data is currently available, the Govt., companies & health-care institutions need to share them among themselves.

1.5.1 By 2014, a host of factors will be responsible in driving the future of Health Insurance.
The under-mentioned factors will play important role, in driving the Health Insurance industry to the next platform. 1. Increasing awareness of Health Insurance as rising healthcare costs have increased need for health insurance 2. Supporting Demographic Profiles (Prospering Middle Class, increasing disease state, population). 3. De-tariffing of the general insurance industry (which has increased emphasis and efforts by insurance companies towards health insurance and other personal lines of business) 4. Rationalization of premium rates (e.g. trend of upward revision in respect of Group Health policies) 5. In order to encourage foreign health insurers to enter the Indian market the government has recently proposed to raise the foreign direct investment (FDI) limit in insurance from 26% to 49% , Government initiatives are always supportive to Healthcare Insurance Environment. 6. The spending on Healthcare is increasing YOY from 2005 to 2025. The prospering middle class in India supports this spending environment. The average annual household consumption in healthcare (discretionary spending ) is expected to double between 2005 and 2025. 7. There is a clear indication that seekers ( annual income between INR 2,00,000 and 04,99,999) and strivers ( annual income between INR 5,00,000 and 10,00,000) population is significantly increasing in the next future. There will be a direct proportionality of this increase to healthcare spending parity.

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8. Salient Demographic Features that support the growth of Health Insurance in India: Adult literacy rate in India is 61.3% and the youth literacy rate in India is 73.3% and is expected to increase in the future. 9. The Disease rates in India is increasing. India has one of the highest heart disease and diabetes rates in the world. 10. It is home to one-sixth of the worlds population occupying less than 3 % of the worlds area.

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2. COMPANY PROFILE

2.1 Background and Inception of the company:

Reliance Securities, A Reliance Capital Limited Company, is the financial services division of Reliance Anil Dhirubhai Ambani (ADA) Group. Reliance ADA group is among top 3 business houses in India with wide range of presence across various sectors. Group's major interests ranges from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment. Reliance Ssecurities has over 22 lakhs customers and more then 10'000 branches in around 5000 cities in India. Company is among the largest broking and distribution house of financial products and having share of more then 3% of total stock market volume at BSE & NSE. Rsec.co.in is the web based investment portal (with Online Stock Trading) from Reliance Securities. This website enables its customer to invest & manage most of the services provided by Reliance Securities including Equity (Stock) Trading, Commodity Trading, Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General insurances, Money Transfer, Currency Derivatives, Gold Coins and Credit Cards Services. Company recently entered in to Wealth Management with tools like investment in equity-linked portfolio management services, structured products, insurance and mutual funds. The Reliance Securities website uses special security features 'Security Token', which makes your online trading experience more secure without complexity.

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2.2 ABOUT THE COMPANY

Reliance Securities Ltd (Reliance Securities), a Reliance Capital company is one of the leading brokerage houses and distribution arms of the Reliance Anil Dhirubhai Ambani Group (RDAG). The firm was established in 2005 and offers comprehensive services such as trading in equity, derivatives, investment banking, portfolio management services (PMS), wealth management services (WMS), research & distribution of financial products such as mutual funds, insurance and IPOs among others. Reliance Securities is present in the currency and debt market segment as well.

2.3 MARKET & NETWORK:

Reliance Securities acquired memberships of the premium stock exchanges in India, namely BSE and NSE in 2005 and 2006 respectively. It offers trading facilities in the cash and derivatives market segment of both NSE and BSE. The company provides trading in the debt market segment as well. It also acts as a DP with CDSL. Reliance Securities website www.rsec.co.in also facilitates trading in commodities for its partner company, Reliance Commodities Ltd which,holds memberships in NCDEX, MCX and NMCE. Reliance Securities is headquartered in Mumbai with operations across all major Indian cities. Majority of the companys terminals are located in Mumbai. It has a vast network spread across 3,393 cities, with 116 offices, and 2,822 equity broking terminals allocated to 2,943 registered sub-brokers As on Dec 31, 2009, Reliance Securities had 73 NEAT terminals, 40 BOLT terminals and 2,709 CTCL licenses. During the same period, the company added 1,84,550 client accounts of which 1,82,720 were e-broking accounts.
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2.4 PRODUCTS AND SERVICES:

Trading: Reliance Securities facilitates trading activities in all the major market segments including, cash, derivatives, debt and currency futures.The company offers online trading facility through its website, www.rsec.co.in. Reliance Securities has recently migrated all its customers to its new trading platform, Insta Plus and Insta Express.Apart from internet trading, customers are also provided with the option of trading through the Call & Trade facility and through RSec.mobi, a personal mobile phone service. Clients can place and track their orders on BSE and NSE on a real time basis with access to RSec.mobi. This facility is available to Reliance Securities trading account holders across all mobile platforms independent of device, operator and the underlying carrier technology. Investment Banking: Reliance Securities also offers Investment Banking services. Distribution of Financial Products: Reliance Securities is involved in the distribution of financial products such as mutual funds, insurance and IPOs. DEMAT Services: The company offers DEMAT services through Reliance Capital and is a registered member with NSDL and CDSL. PMS: Reliance Securities is a SEBI registered portfolio manager and offers customised services to their client which is designed to meet their investment objectives. These services cover all administrative aspects while providing periodic reporting to clients. WMS: The Company makes available Wealth Management Solutions to its

customersResearch: Reliance Securities offers research based services to its clients. Its research wing encompasses 100 companies across 20 sectors. This division offers complete research solutions on IPOs, mutual funds, economic research and other special reports and newsletters. Insurance: Reliance Securities also provides a range of insurance products including life insurance and general insurance through Reliance Composite Insurance Broking
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NRI Services: NRI clients can place orders using the new their trading platform such as Insta plus and Insta Express. NRIs can execute their securities transactions under the provisions of the RBI guidelines for NRI Portfolio Investment Scheme (PIS). Future Plans Reliance Securities plans for CY10 include offering new products to its clients. In the near future, the company also plans to raise additional capital through the private placement route. During the above period, it plans to add 100 terminals, open 20 new branches apart from adding 100,000 new E-broking accounts. Additionally, it intends to recruit 250 more employees.

2.5 INVESTMENT OPTIONS:

The investment options available with Reliance Securities are as below: 1. Equities Trading - Delivery, Intraday, leveraged trading based on Cash+Collaterals, Cover order along with stop loss, After market Hours Orders, Regular Stock Purchase Plans, R-Mobile Trading 2. Equities Derivatives Trading 3. Currency Derivatives Trading 4. IPO Investment 5. Commodity Trading (Gold, Silver, Crude etc....) at MCX, NCDEX and NMCE 6. Mutual Fund, Liquid funds, Bonds, FD's Investment, Structured Products, Wealth Management and Portfolio Management Services, Premium Research 7. Life & General Insurance 8. My Gold Plan, Gold ETF's, NRI Investment Services, QFI Investment Services

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2.6 RELIANCE SECURITIES TRADING PLATFORMS:

Reliance Securities provides different platforms for trading: 1. Easy Trade Easy Trade ia a browser based platform for first time investors. 2. Insta Plus Insta Plus is a web browser based trading system which helps you to directly place orders through market watch and helps to apply online in various products such as MF, FD, Bonds, IPO, OFS, AMO orders, Stop loss cover order, Systematic equity plans, etc. 3. Insta Xpress - Live streaming quotes InstaXpress is an EXE based, high speed trading tool that allows you to monitor what is happening in the market at real time speed. It provides an investor with Live streaming quotes & Research Calls, integrated fund transfer system along with multiple watch list facility. Investor can also do technical analysis with the help advance charting tools. 4. R Mobile Xpress (Mobile Trading) RMobile Xpress is a smart mobile trading application that allows you to be in touch with market anytime and anywhere during market hours at your finger tips.

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2.7 RELIANCE SECURITIES RESEARCH:

Reliance Securities Research Desk provides independent Equity Research to Retail Clients. It has a strong and highly experienced team of Analysts enjoying a rich blend of youth and experience. In terms of sector coverage we cover sectors like Automotives, Auto Components, Capital Goods, Engineering, Cement, Infrastructure, Banking, Software, Pharma, Telecom, FMCG, Media and Oil. The Fundamental Research is broadly idea based and gives a mix of large-cap and mid-cap ideas. actively providing more comprehensive financial solutions to optimize all business units through sustainably human resource quality improvement, integrated branch offices and financial galleries, and implementing latest technology of financial service facilities, we secure our position in continuation of building a strong platform to enhance a sustainable growth in coming years by consistently provide a high integrity value

of quality service standards to its customer. Meanwhile, we strive to improve the monitoring mechanism to prepare defences of the risks likely to arise.

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2.8 VISION & MISSION:

2.8.1 VISION

To become a world class diversified financial services company through excellent quality services with the highest value of integrity (reliable).

2.8.2 MISSION

To broaden its ability to deliver comprehensive financial solutions.To focus in developing human resources competency.To develop an integrated infrastructure services.

2.8.3 CORPORATE OBJECTIVE

At Reliance Life Insurance, we strongly believe that as life is different at every stage, life insurance must offer flexibility and choice to go with that stage. We are fully prepared and committed to guide you on insurance products and services through our well-trained advisors, backed by competent marketing and customer services, in the best possible way.

It is our aim to become one of the top private life insurance companies in India and to become a cornerstone of RLI integrated financial services business in India.

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2.9 MANAGEMENT PROFILE:

Anton Budidjaja - Presiden Komisaris

Founder and President Commissioner since 2003, 44 years old, previously worked for Victoria Investindo Advisory as Managing Partner and Panin Group (1993- 2000). Began his career in some local banks since 1992, and received Bachelor of Science in Business Administration from California State University, United States.

Idrus Hermawan Widjajakusuma - Komisaris Independen

Indonesia citizen, born in Malang on June 10, 1969. Held the position as Company Commissioner since 2003. Previously worked for Victoria Investindo Advisory as Senior Manager, Group Head Corporate Finance Division of PT Panin Overseas Finance Tbk (19962001). Began his career in PT Bank Danamon Indonesia Tbk as a manager in Commercial Bank Division in 1995. Received Bachelor of Science in Business Administration from Ohio State Universities Columbus, Ohio, United States in year of 1992.

Nicky Hogan - Presiden Direktur Born in Sambas on October 14th 1968, and received his Bachelor Degree in Accounting from Tarumanagara University. Nicky joined in Reliance as Vice President Director since 2007, previously worked for PT Valbury Asia Securities as a Managing Director (20012007). Since 2010 Nicky hold position as President Director. Nicky began his career in Dharmala Group as an Auditor in 1990 and as a Finance and Administration Manager in a subsidiary of Sampoerna Group. His debut in capital market was started in 1998 at PT Sarijaya Permana Sekuritas with last position as Operational Director.

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Herry Harto Direktur Born in Jakarta on June 23rd,1974. Held the position as Company Director since 2004. He previously worked for PT Valbury Asia Securities (2001-2004), PT United Capital Indonesia (2000-2001), PT Sarijaya Permana Sekuritas (1997-2000). Received his Bachelor of Economics Degree in Accounting from Tarumanagara University in 1997. Herry is a Broker Dealer professional certificate holder.

Anak Agung Gde Arinta Kameswara - Direktur Born in Gianyar, August 6, 1972, Agung is Computer Engineering Bachelor from Gunadharma University, Jakarta. Started his career in 1996 at PT Peregrine Sewu Securities as Database Supervisor at Research Department, his career in brokerage industry moved higher to Database Manager at Research Department at PT ABN Amro Securities (2000), Operational Manager at PT Mahastra Capital (2001), and as Head of Operational at PT Reliance Securities Tbk (2006-2008). Prior to rejoining PT Reliance Securities, Tbk, Agung is Vice President of Operational Division at PT Batavia Prosperindo Securities and Vice President for Online Trading Division at PT Erdhika Elit Securities. Agung is a Broker Dealer professional certificate holder

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3. SWOT Analysis

3.1 STRENGTH:
India is now the second fastest growing major economy in the world. Third largest economy in the world Indian healthcare has emerged as one of the largest service sectors in India. Healthcare spending in India is expected to rise by 15% per annum. Healthcare spending could contribute 6.1% of GDP in 2012 and employ around 9 million people.

3.2 WEAKNESS:
Inadequate healthcare infrastructure Limited reach Significant underwriting losses for Health Insurance business in India Lack of standardization and Accreditation norms in healthcare industry in India Insufficient data on Indian consumers & disease patterns resulting in difficulty in product development and pricing.

3.3 OPPORTUNITIES:
Increasing awareness of Health Insurance as rising healthcare costs have increased need for health insurance Supporting Demographic Profiles (Prospering Middle Class, increasing disease state, population). There is a clear indication that seekers ( annual income between INR 2,00,000 and 04,99,999) and strivers ( annual income between INR 5,00,000 and 10,00,000) population is significantly increasing in the next future. There will be a direct proportionality of this increase to healthcare spending parity. The Disease rates in India are increasing. India has one of the highest heart disease and diabetes rates in the world. Shift to lifestyle-related diseases

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3.4 THREATS:

New modern private insurance companies are indulging in money-making businesses with little interest in insurance. Insurance policies contain too many exclusion clauses. Most insurance companies now use call centers and staff attempt to answer questions by reading from a script. It is difficult to speak to anybody with expert knowledge.

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4. McKinseys 7S FRAMEWORK

Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful. The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you: Improve the performance of a company. Examine the likely effects of future changes within a company. Align departments and processes during a merger or acquisition. Determine how best to implement a proposed strategy.

The McKinsey 7S model can be applied to elements of a team or a project as well. The alignment issues apply, regardless of how you decide to define the scope of the areas you study. The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements: Hard Elements Soft Elements

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4.1 APPLICATION OF Mckinsey 7S FRAMEWORK: 1. Structure:

It is basic organization of the company, its departments, and reporting lines, areas of expertise and responsibility (and how they inter-relate). Vikrant Gugnani - Executive Director Sanjay Wadhwa - Chief Operating Officer Ganesh Pai - Head Risk & Compliance Rajeev Srivastava - Business Head - Retail Equity Broking Hitesh Agrawal - Head Research

2. Strategy:
Strategy of the organization depiction is not clear as the organization has to be the leading amongst all the brands, its a large firm with the belieg of competing ina manner which would inturn give profit to the economy of the country.

3. Systems:
Formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer (Market making, buyer acquisition, online bidding, etc.) The company follows a systematic procedure at all the levels. The company has very good performance appraisal system, training and development system and customer relationship management. The instruction flows from the top management to the lower levels of management.

4. Skills:
the capabilities and competencies that exist within the company. What it does best highly skilled candidates are recruited at various levels across the organization. Skills can be classified broadly into highly skilled and semi skilled routine work. Various training program are organized regularly to impart training needs of the employees.

5. Style:
The dominant values and beliefs, and norms, which develop over time and become relatively enduring features of organization life.

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Reliance Securities performance management process will be supported by a robust rewards and recognition strategy for each business and a market based compensation structure that is flexible, responsive and helps retention through asset building and wealth creation for top performers.

6. Staff:
The company's people resources and how they are developed, trained and motivated. The human resources management processes used to develop managers, socialization processes, ways of shaping basic values of management cadre, ways of introducing young recruits to the company, ways of helping to manage the careers of employees.

Recruitment process at Reliance Securities: 1. Potential candidates apply for the vacancy 2. Personal Interview is conducted 3. Offer of appointment is sent to the shortlisted candidates and they are asked to join on a specific date.

7. Shared Values:
The values and beliefs of the company, ultimately they guide employees towards 'valued' behavior. The push for a performance culture at Reliance Securities came right from the top. Reliance Securities has planned to steadily increase its presence in insurance salvage business. Earlier company has purposely maintained a medium-key presence in the salvage market, now is planning to increase exposure in this segment.

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5. GENERAL INTRODUCTION:
Insured, are you? The functions of Insurance will give you an idea on how to go ahead with the approach of insurance and what type of insurance to choose. In a layman's words, insurance means, a guard against pecuniary loss arising on the happening of an unforeseen event. In developing economies, the insurance sector still holds a lot of potential which can be tapped. Majority of the people in the developing countries remains unaware of the functions and benefits of insurance and it is for this reason that the insurance sector is still to grow. Tangible or intangible an individual can insure anything! Be it a house, car, factory, or the voice of a singer, leg of a footballer, and the hand of an author.....etc. It is possible to insure all these as they have the possibility of becoming non functional by any disaster or an accident.

BASIC FUNCTIONS OF INSURANCE:

1) Primary Functions 2) Secondary Functions 3) Other Functions Primary functions of insurance

Providing protection The elementary purpose of insurance is to allow security against future risk, accidents and uncertainty. Insurance cannot arrest the risk from taking place, but can for sure allow for the losses arising with the risk. Insurance is in reality a protective cover against economic loss, by apportioning the risk with others.

Collective risk bearing Insurance is an instrument to share the financial loss. It is a medium through which few losses are divided among larger number of people. All the insured add the premiums towards a fund and out of which the persons facing a specific risk is paid.

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Evaluating risk Insurance fixes the likely volume of risk by assessing diverse factors that give rise to risk. Risk is the basis for ascertaining the premium rate as well.

Provide Certainty Insurance is a device, which assists in changing uncertainty to certainty.

Secondary functions of insurance

Preventing losses Insurance warns individuals and businessmen to embrace appropriate device to prevent unfortunate aftermaths of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc.

Covering larger risks with small capital Insurance assuages the businessmen from security investments. This is done by paying small amount of premium against larger risks and dubiety.

Helps in the development of larger industries Insurance provides an opportunity to develop to those larger industries which have more risks in their setting up.

Other functions of insurance

Is a savings and investment tool Insurance is the best savings and investment option, restricting unnecessary expenses by the insured. Also to take the benefit of income tax exemptions, people take up insurance as a good investment option.

Medium of earning foreign exchange Being an international business, any country can earn foreign exchange by way of issue of marine insurance policies and a different other ways.

Risk Free trade Insurance boosts exports insurance, making foreign trade risk free with the help of different types of policies under marine insurance cover.

Insurance provides indemnity, or reimbursement, in the event of an unanticipated loss or disaster. There are different types of insurance policies under the sun cover almost anything that one might think of. There are loads of companies who are providing such customized insurance policies.

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CHALLENGES FACING INSURANCE INDUSTRY:

Threat of New Entrants: The insurance industry has been budding with new entrants every other day. Therefore the companies should carve out niche areas such that the threat of new entrants might not be a hindrance. There is also a chance that the big players might squeeze the small new entrants.

Power of Suppliers: Those who are supplying the capital are not that big a threat. For instance, if someone as a very talented insurance underwriter is presently working for a small insurance company, there exists a chance that any big player willing to enter the insurance industry might entice that person off.

Power of Buyers: No individual is a big threat to the insurance industry and big corporate houses have a lot more negotiating capability with the insurance companies. Big corporate clients like airlines and pharmaceutical companies pay millions of dollars every year in premiums.

Availability of Substitutes: There exist a lot of substitutes in the insurance industry. Majorly, the large insurance companies provide similar kinds of services be it auto, home, commercial, health or life insurance.

How to choose an insurance company?

There are many factors to probe into when an investor chose an insurance company.

The consumers as well as the investors should only focus on the insurer's financial strength and capability to meet ongoing responsibilities to its policyholders.

The fundamentals of the insurance company should be strong and should not indicate a poor investment opportunity as this might also deter growth.

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TOP INSURANCE COMPANIES IN INDIA:

Life Insurance Corporation of India: The Life Insurance Corporation of India (LIC) is undoubtedly India's largest life insurance company. Fully owned by government, LIC is also the largest investor of the country. LIC has an estimated asset of Rs. 8 Trillion. It also funds almost 24.6% of the expenses of Government of India.

Established in 1956 and headquartered in Mumbai, Life Insurance Corporation of India has 8 zonal offices, 100 divisional offices, 2,048 branch offices and a vast network of 10,02,149 agents spread across the country.

Tata AIG Insurance Solutions: Tata AIG Insurance Solutions, one of the leading insurance providers in India, started its operation on April 1, 2001. A joint venture between Tata Group (74% stake) and American International Group, Inc. (AIG) (26% stake), Tata AIG Insurance Solutions has two different units for life insurance and general insurance. The life insurance unit is known as Tata AIG Life Insurance Company Limited, whereas the general insurance unit is known as Tata AIG General Insurance Company Limited. AVIVA Life Insurance: AVIVA Life Insurance, one of the popular insurance companies in India, is a joint venture between the renowned business group, Dabur and the largest insurance group in the UK, Aviva plc. AVIVA Life Insurance has an extensive network of 208 branches and about 40

Bancassurance partnerships, spread across 3,000 cities and towns across the country. There are more than 30,000 Financial Planning Advisers (FPAs) working for AVIAV Life
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Insurance. It offers various plans like Child, Retirement, Health, Savings, Protection and Rural.

MetLife Insurance: MetLife India Insurance Company Limited is another popular player in Indian insurance sector. A joint venture between the Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors and MetLife International Holdings, Inc., MetLife Insurance offers a wide range of financial solutions to its customers including Met Suraksha, Met Suraksha TROP, Met Mortgage Protector and Met Suraksha Plus etc. It has its branches situated over 600 locations across the country. More than 50,000 Financial Advisors work for MetLife.

ING Vysya Life Insurance: ING Vysya Life Insurance entered into the Indian insurance industry in September 2001. A joint venture between ING Group, Ambuja Cements, Exide Industries and Enam Group, ING Vysya Life Insurance uses its two channels, viz. the Alternate Channel and the Tied Agency Force to distribute its products. The first channel has branches in 234 cities across the country and has got 366 sales teams. On the other hand, the later one has more than 60,000 advisors. Currently, ING Vysya Life Insurance has tie ups with more than 200 cooperative banks.

Birla Sun Life Financial Services: Birla Sun Life Financial Services is a joint venture between Aditya Birla Group and Sun Life Financial Inc, Canada. It has got an extensive network of more than 600 branches. More than 1,75,000 empanelled advisors work for Birla Sun Life, which currently covers over 2 million lives.

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MAX New York Life: Max New York Life Insurance Company Ltd. is one of the top insurance companies in India. A joint venture between Max India Limited and New York Life International (a part of the Fortune 100 company - New York Life), Max New York Life Insurance Company Ltd. started its operation in April 2001. It currently has around 715 offices located in 389 cities across the country. It also has around 75,832 agent advisors. Max New York Life offers 39 products, which cover both, life and health insurance.

Bajaj Allianz: Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE, where Bajaj Finserv Limited holds 74% of the stake, whereas Allianz SE holds the rest 26% stake. Bajaj Allianz has been rated iAAA by ICRA for its ability to pay claims. The company also achieved a growth of 11% with a premium income of Rs. 2866 crore as on March 31, 2009.
Bharti AXA Life Insurance:

Bharti AXA Life Insurance, one of the top insurance companies in India, is a joint venture between Bharti group and world leader AXA. Bharti holds 74% stakes, whereas AXA holds the rest of 26%. Bharti AXA has its branches located in 12 states across the country. It offers a range of individual, group and health plans for its customers

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5.1 STATEMENT OF THE PROBLEM:

With growing population grows the needs, wants and many other aspect like uncertainity. This project is on the issues and challenges faced by the indian health insurance companies while promoting their health insurance special reference to reliance securities ltd. This also deals with health insurance. The project tries to focus on the aspect of customers need. There by the

customers responses need to be obtained that why they turn reluctant while purchasing a health insurance policy even when it is as important.

5.2 OBJECTIVES OF THE STUDY:

The main objective of the study is to analyze customer needs so that major strategies regarding promotion of health insurance can be brought into focus. . The objectives are as follows: 1) To understand customers needs regarding health policy they want to purchase. 2) To list out the shortcomings being faced by the customer while investing in health insurance. 3) To know if people are aware of the health insurance provided by reliance securities. 4) To anlayse on which promotional factor company has to focus more.

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5.3 SCOPE OF THE STUDY:

This project has been a great insight for me as I came to know about the relevance and importance of health insurance in different aspect of insurance industry in India and about the negative effects if a person does not possesses a health insurance. My study just not helped me learning about the insurance but also helped me knowing people perception regarding investment in health insurance. It helped me carving out the facts which could help in promotion of health insurance. The project is aimed to cover maximum factors affecting the customers needs and demand drivers and competitiveness. With a great team of highly motivated staff at reliance securities. Similarly, we have come to believe that business firm is not the center of economic universe but revolves around the customer.

5.4 RESEARCH METHODOLOGY:

To be able to estimate the reliability of a report, the methods which it is based upon have to be considered. Hence, this third chapter, methodology, will give the reader an insight into my research process, selection and data collection.

5.4.1 Introduction
The search for knowledge through objective and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of a theory is also research. As such the term research refers to the sys tematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solutions towards the concerned problem or in certain generalizations for some theoretical formulation.

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5.4.2 Types of data collected

1. Primary data: First hand information was received from the Clients through questionnaires.
2. Secondary data: The data from internet as well as books and magazines available.

Information from journals and from official websites were collected to get a better insight of the company. .As it is really a very difficult task to take views of higher
authorities of any company in such a less time and analyse their reponses.

5.4.3 sampling
Sample is the small group taken under consideration from the total group. This small group represents the total group. In the project, research, which was ask to be studied was people capable of possessing Insurance in India but as it was not possible to approach all the respondents in the country, hence a sample was Selected which represents the whole population. The area selected for the sample is Dehradun. Sample size of Client list was taken from reliance securities.

Type of Sampling: We used Convenience sampling type in which the researcher selects
the easiest population members from which to obtain information.

Sample size: The sample size of the project is 100.

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5.5 LIMITATIONS OF THE STUDY:

1. Lack of awareness of policies in customers while dealing with them. 2. High risk and uncertainty in negotiating for the information required. 3. The study is confined to limited period. 4. Accuracy of the study is purely based on the secondary data. 5. The analysis and conclusion made by me as per my limited understanding and there may be something variation in the actual situation. 6. Rejections Occurs because of lack of time.

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6. PROJECT RATIONALE:

This dissertation presents review of health insurance situation in India - the opportunities it provides, the challenges it faces and the concerns it raises. A discussion of the implications of privatization of insurance on health sector from various perspectives and how it will shape the character of our health care system is also attempted. The paper following areas:

1) 2) 3) 4) 5) 6) 7)

Economic policy context Health financing in India Health insurance scenario in India Health insurance for the poor Consumer perspective on health insurance Models of health insurance in other countries Competitive analysis of health insurance sector in India

Over the last 50 years India has achieved a lot in terms of health improvement. But still India is way behind many fast developing countries such as China, Vietnam and Sri Lanka in health indicators (Satia et al 1999). In case of government funded health care system, the quality and access of services has always remained major concern. A very rapidly growing private health market has developed in India. This private sector bridges most of the gaps between what government offers and what people need. However, with proliferation of various health care technologies and general price rise, the cost of care has also become very expensive and unaffordable to large segment of population. The government and people have started exploring various health financing options to manage problems arising out of growing set of complexities of private sector growth, increasing cost of care and changing epidemiological pattern of diseases. The new economic policy and liberalization process followed by the Government of India since 1991 paved the way for privatization of insurance sector in the country. Health insurance, which remained highly underdeveloped and a less significant segment of the product portfolios of the nationalized insurance companies in India, is now poised for a fundamental change in its approach and management. The Insurance Regulatory and Development Authority (IRDA) Bill, recently passed in the Indian Parliament, is important beginning of changes having significant implications for the health sector.

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The privatization of insurance and constitution IRDA envisage to improve the performance of the state insurance sector in the country by increasing benefits from competition in terms of lowered costs and increased level of consumer satisfaction. However, the implications of the entry of private insurance companies in health sector are not very clear. The recent policy changes will have been far reaching and would have major implications for the growth and development of the health sector. There are several contentious issues pertaining to development in this sector and these need critical examination. These also highlight the critical need for policy formulation and assessment. Unless privatization and development of health insurance is managed well it may have negative impact of health care especially to a large segment of population in the country. If it is well managed then it can improve access to care and health status in the country very rapidly.

Health insurance as it is different from other segments of insurance business is more complex because of serious conflicts arising out of adverse selection, moral hazard, and information gap problems. For example, experiences from other countries suggest that the entry of private firms into the health insurance sector, if not properly regulated, does have adverse consequences for the costs of care, equity, consumer satisfaction, fraud and ethical standards. The IRDA would have a significant role in the regulation of this sector and responsibility to minimise the unintended consequences of this change.

Health sector policy formulation, assessment and implementation is an extremely complex task especially in a changing epidemiological, institutional, technological, and political scenario. Further, given the institutional complexity of our health sector programmes and the pluralistic character of health care providers, health sector reform strategies in the context of health insurance that have evolved elsewhere may have very little suitability to our country situation. Proper understanding of the Indian health situation and application of the principles of insurance keeping in view the social realities and national objective are important.

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Purpose of the project:

The major purpose of the project is leaning about the health insurance and analyzing pros and cons, before and after effects of thesituation under which the industry prevails, this industry faces a stiff competition as people are reluctant purchasing the policy or else are not interested, hence to analyse those strategies which would helppromoting health insurance which can be done only by analyzing customers needs.

Loopholes of the project:

a) Time period was too short to analyse such issue. b) Couldnt get the guidance of the key people of the organization. c) Accuracy of the project is completely based on secondary data. d) The analysis and conclusion made by me as per my limited understanding and there may be something variation in the actual situation.

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7. INTERPRETATION OF THE RESULT

7.1 OBSERVATIONS:
Health insurance is like a knife. In the surgeons hand it can save the patient, while in the hands of the quack, it can kill. Health insurance is going to develop rapidly in future. The main challenge is to see that it benefits the poor and the weak in terms of better coverage and health services at lower costs without negative aspects of cost increase and overuse of procedures and technology in provision of health care.

In India has limited experience of health insurance. Given that government has liberalized the insurance industry, health insurance is going to develop rapidly in future. The challenge is to see

that it benefits the poor and the weak in terms of better coverage and health services at lower costs without the negative aspects of cost increase and over use of procedures and technology in provision of health care. The experience from other places suggest that ifhealth insurance is left to the private market it will only cover those which have substantial ability to pay leaving out the poor and making them more vulnerable. Hence India should proactively make efforts to develop Social Health Insurance patterned after the German model where there is universal coverage, equal access to all and cost controlling measures such as prospective per capita payment to providers. Given that India does not have large organized sector employment the only option for such social health insurance is to develop it through co-operatives, associations and unions. The existing health insurance programmes such as ESIS and Mediclaim also need substantial reforms to make them more efficient and socially useful. Government should catalyze and guide development of such social health insurance in India. Researchers and donors should support such development.

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7.2 SUGGESTIONS:
After working as a summer trainee in reliance securities my study and observation had left me with following suggestions for the company: a) people are eager to invest in health insurance hence giving them a simplified version of policies would help b) the mode of payment should be more of online so that it does not consume much time. c) The most demanded factors that needs to be included in the policies launched is on the spot benefits. d) Reliance securities should emphasis more on promotional campaign as far as its health insurance facility is concerned. e) More advanced policies should be brought in the market.

7.3 FINDINGS:
a) b) c) d) e) f) g) Majority of people have invested there money somewhere or the other. Majority of people possess health insurance. Mostly people dont posses helth insurance because of lack of awareness. LIC is the company whose health insurance policy is mostly possessed by people. Less premium is the factor that customer wants in his policy. Majority of people are aware of the reliance health insurance. Advertisement is the major reason of awareness of people regarding reliance health insurance. h) Customers expect on the spot benefits from their policies. i) Reliance could be their preffered brand if it comes up with provided expectations. j) Online payment is a preferred means of payment of premium due to lack of time and involvement.

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8. CONCLUSION:
The preceding sections of this paper present the health insurance scenario in India. Given the situation, there are few issues of concern or barriers towards implementing a social health insurance scheme in India. These are enumerated below along with the possible way ahead.

India is a low-income country with 26% population living below the poverty line, and 35% illiterate population with skewed health risks. Insurance is limited to only a small proportion of people in the organized sector covering less than 10% of the total population. Currently, there no mechanism or infrastructure for collecting mandatory premium among the large informal sector. Even in terms of the existing schemes, there is insufficient and inadequate information about the various schemes. Data gaps also prevail. Much of the focus of the existing schemes is on hospital expenses. There continues to be lack of awareness among people about health insurance. In spite of existing regulation in some States, the private sector continues to operate in an almost unhindered manner. The growth of health insurance increases the need for licensing and

regulating private health providers and developing specific criteria to decide upon appropriate services and fees.Health insurance per se, suffers from problems like adverse selection, moral hazard, cream-skimming and high administrative costs. This is coupled with the fact that in the absence of any costing mechanisms, there is difficulty in calculating the premium. There is also a need to evolve criteria to be used for deciding upon target groups, who would avail of the SHI scheme/s and also to address issues relating to whether indirect costs would be included in health insurance. Health insurance can improve access to good quality health care only if it is able to provide for health care institutions with adequate facilities and skilled personnel at affordable cost.

Given this scenario, the challenge, then, for Indian policy-makers is to find ways to improve upon the existing situation in the health sector and to make equitable, affordable and quality
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health care accessible to the population, especially the poor and the vulnerable sections of the society. It is in a way inevitable that the state reforms its public health delivery system and explores other social security options like health insurance. Implementing regulations would be one, but by no means the best mechanism to contain provider behaviour and costs. This can only be done by developing mechanisms where government and households can together pool their funds. This could be one way of controlling provider behaviour.

There is an urgent need to document global and Indian experiences in social health insurance. Different financing options would need to be developed for different target groups. The wide differentials in the demographic, epidemiological status and the delivery capacity of health systems are a serious constraint to a nationally mandated health insurance system. Given the heterogeneity of different regions in India and the regional specifications, one would need to undertake pilot projects to gather more information about the population to be targeted under an insurance scheme and develop options for different population groups. Health policymakers and health systems research institutions, in collaboration with economic policy study institutes, need

to gather information about the prevailing disease burden at various geographical regions; to develop standard treatment guidelines, to undertake costing of health services for evolving benefit packages to determine the premium to be levied and subsidies to be given; and to map health care facilities available and the institutional mechanisms which need to be in place, for implementing health insurance schemes. Skill- building for the personnel involved, and capacity-building of all the stakeholders involved, would be a critical component for ensuring the success of any health insurance programme.

The success of any social insurance scheme would depend on its design,the implementation and monitoring mechanisms which would be set in place and it would also call for restructuring and reforming the health system, and developing the necessary prerequisites to ensure its success.

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9. DATA ANALYSIS AND INTERPRETATION

1)
Category

Have you invested your money so far ?

No. of Respondents 56 44 100

Yes No Total

60 50 40 30 20 10 0 Yes No

Conclusion
Out of 100 Respondents, majority of respondents i.e. 56 said they have invested their money and remaining 44 have not invested their money so far.

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2) In which tool do you mostly invest ?

Category

No. of Respondents 19 31 22 15 13 100

Securities Life Insurance Mutual Fund Health Insurance Bonds Total

35 30 25 20 15 10 5 0 Securities life insurance Mutual Fund Health Insurance Bonds

Conclusion
Out of 100 Respondents, majority of respondents i.e. 31 said they have invested in life insurance, 22 in mutual fund, 19 in securities, 15 in health insurance and remaining 13 have invested in bonds.

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3) Do you any Health Insurance Policy ?

Category

Yes No Total

No. of Respondents 59 41 100

60 50 40 30 20 10 0 Yes No

Conclusion
Out of 100 Respondents, majority of respondents i.e. 59 said they have health insurance and remaining 41 have not insured themselves.

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4) If no, why not?

Category

No. of Respondents 55 28 17 100

Lack of awareness Never gave a thought to it Other tools available for investment Total

60 50 40 30 20 10 0 Lack of awareness Never gave a thought to it Other tools available for investment

Conclusion
Out of 100 Respondents, majority of respondents i.e. 55 have not invested in health insurance due to lack of awareness, 28 said they never gave a thought to it and remaining 17have not invested in health insurance due to other better options available for parking their funds.

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5) If yes,which companys health insurance do you possess?

Category No. of Respondents 37 8 16 15 14 11 9 100

LIC HDFC BAJAJ Alliance Metlife TATA AIG ICICI prudential Bharti Axa Total

40 35 30 25 20 15 10 5 0 LIC HDFC BAJAJ Alliance Metlife TATA AIG ICICI Bharti Axa prudential

Conclusion
Out of 100 Respondents, majority of respondents i.e. 37 possess insurance of LIC, 16 OF Bajaj Allianz, 15 MetLife health insurance, 14 of TATA AIG, 11 of ICICI Prudential and remaining 9 possess health insurance of bharti AXA.

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6) Which favorable factors do you like in your possessed health insurance policy?

Category

No. of Respondents 35 45 20 100

Lesspremium maximum health benefits hospital tie-ups Total

45 40 35 30 25 20 15 10 5 0 Lesspremium maximum health benefits hospital tie-ups

Conclusion
Out of 100 Respondents, majority of respondents i.e. 45 like maximum health benefit provided by their possessed insurance, 35 like low premiums and remaining 20 like hospital tie-ups in their possessed health insurance.

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7) Have you heard about reliance health insurance?

Category

No. of Respondents 87 13 100

Yes No Total

90 80 70 60 50 40 30 20 10 0 Yes No

Conclusion
Out of 100 Respondents, majority of respondents i.e. 87 said they have heard about reliance health insurance and remaining 13 said they have not heard about reliance health insurance.

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8) If yes, how did you come to know about it?

Category No. of Respondents

Advertising Friend Agent Internet Total

46
14 10 30 100

50 45 40 35 30 25 20 15 10 5 0 Advertising Friend Agent Internet

Conclusion
Out of 100 Respondents, majority of respondents i.e. 46 said they have heard about reliance health insurance via advertisement, 30 via internet, 14 through friends remaining 10 said they have heard about reliance health insurance via Agents. and

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9) Which factors do you expect to be included in reliance health insurance?

Category No. of Respondents

More hospitals to be tied up Higher Benefits/Returns on the spot benefits Total

35
25 40 100

40 35 30 25 20 15 10 5 0 More hospitals to be tied Higher Benefits/Returns up on the spot benefits

Conclusion
Out of 100 Respondents, majority of respondents i.e. 35 expect more hospitals to be tied up, 40 expect on the spot benifits and remaining 25 said they expect higher benefits.

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10) If Reliance comes up with all these benefits as per you expectations, would you like to purchase our policy?

Category

No. of Respondents 64 36 100

Yes No Total

70 60 50 40 30 20 10 0 Yes No

Conclusion
Out of 100 Respondents, majority of respondents i.e. 64 said they would go for reliance if expected factors are included and remaining 36 said they would not go for reliance if expected factors are included.

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11) What will be the preferred means of transaction for premium payment?

Category

No. of Respondents 56 12 10 22 100

Executive Online Office Dealer/Agency. Total

60 50 40 30 20 10 0 Executive Online Office Dealer/Agency.

Conclusion
Out of 100 Respondents, majority of respondents i.e. 56 said they would pay premiums via executives, 22 via dealers, 12 want it to be paid online and remaining 10 would personal pay it at office.
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QUESTIONNAIRE:

Personal profile:
Name Gender Contact number E-mail id ::- (a) Male (b) Female ::-___________________________________

Respondents Investment Details: 1) Have you invested your money so far? (a) yes (b) No 2) In which tool do you mostly invest? (a) Securities (b) Life Insurance (c) Mutual Fund (d) Health Insurance (e) FDs (f) Bonds 3) Do you have any Health Insurance Policy? (a) Yes (b) No 4) If No, why not? ____________________________________________________________________ 5) If yes, which companys health Insurance do you possess? ____________________________________________________________________ 6) Which favorable factors do you like in your possessed health insurance policy? (a) Less premium (b) maximum health benefits (c) hospital tie-ups Details ___________________________________________________________________ 7) Have you heard about reliance health insurance? (a) Yes (b) No 8) If yes, how did you come to know about it? (a) Advertising (b) Friend (c) Agent (d) Internet 9) Which factors do you expect to be included in reliance health insurance? (a) More hospitals to be tied up (b) Higher Benefits/ Returns (c) on the spot benefits 10) If Reliance comes up with all these benefits as per you expectations, would you like to purchase our policy? (a) Yes (b) No 11) What will be the preferred means of transaction for premium payment? (a) Executive (b) online (c) Office (d) Dealer/ Agency. 12) Any suggestion would you like to give to serve us better? Key Marketing Strategies on Promoting Health Insurance Page 56

BIBLIOGRAPHY

Books Referred:
Agarwal, J.D. "Security Analysis & Portfolio Management: A Review, Finance India, Vol. II No. 1, March 1989.

Kothari,

Research

Methodology,1st

edition,

New

Age

International Publishers, ISBN: 978-81-224-1522-3

Malhotra, Naresh "Marketing Research and Applied Orientation" IV Ed., 2005, Pearson

Websites: www.angelbroking.com www.bseindia.com www.karvy.com www.moneycontrol.com www.nsdl.co.in www.nseindia.com www.reliancemoney.com www.religare.in

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Key Marketing Strategies on Promoting Health Insurance

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