Professional Documents
Culture Documents
2
health insurance. There are various plans readily available in India to cover every
aspect of a medical emergency. Some popular types of policies are explained below:
Individual Health Plan - This health insurance policy is designed to cover an
individual against various illnesses with cashless hospitalization and other add-on
features.
Family Floater Mediclaim – With this health insurance policy, you can cover all
your family members against diseases under a single cover. This cover offers a
fixed sum insured for the family members that can be availed either by an
individual member or as a sum total for treatment of one person.
Surgery & Critical Illness Policy – This is usually brought as a standalone
policy or a rider in case of treatment against serious illnesses like- cancer, kidney
failure, heart attack, paralysis etc. As the treatment of such diseases is expensive
so the premium is also on a higher side.
Pre-Existing Disease Cover - After a waiting period of 2-4 years, various
policies offer a cover against the pre-existing diseases -e.g. - diabetes,
hypertension, kidney failure, cancer etc. Pre-existing disease cover includes the
diseases or illness that the policyholder had before buying the policy.
Senior Citizen Health Plan - This offers to protect you from health issues during
your old age. According to IRDA norms, every insurer must provide cover for
people up to the age of 65 years.
Preventive Healthcare - Undoubtedly health care is expensive and who wants to
fall sick; anyways. So, now we have preventive health care that offers to take care
of you and not let your fall sick. This includes preventive care treatments like
regular checkups, consultation charges and other tests or x-ray fees concessions.
The idea is to monitor your health at timely intervals and provide overall health
care benefits.
Maternity Health Insurance - Health insurance companies today provide
coverage against maternity and additional expenses, including both pre and post
natal care, child delivery, which sometimes lead to vaccination of newborn babies.
Personal Accident Cover: These plans are frequently provided as riders to
standard health insurance plans, which provide coverage for hospitalization and
reimbursement of medical expenses, in the case of an accident.
4
So in case of a treatment, some amount is paid by the insured and rest by the
insurer.
7
• Private Health Insurance – The expense is taken care by the health policy,
which the person owns.
• 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, mentioned
below:-
• State Funded – The Government provides for the medical care or gives some
subsidy.
• Social security – In developed countries by paying a small amount to the state,
you are covered for medical.
• External funded – Aid or grants etc.
In Indian market various types of health insurance plans exist today. Many types of
Government or state based health insurance schemes are running in market like
Central Government Health Scheme (CGHS), Employees State Insurance Scheme
(ESIS), & now a day Rashtriya Swasthya Bima Yojana (RSBY) is very popular in
India. Government takes many initiatives for offering other health insurance schemes
to India, for providing better health to our nation’s population (Ramachandran 2013).
Insurance sector is fastest growing sector in India. In the Insurance sector
approximately 44 insurance companies offer health insurance products. Out of these
44, four standalone health insurance companies, 19 General insurance companies and
19 Life insurance companies play an active role in health insurance sector (Source:
http://www.healthinsuranceindia.org/).
A List of Health Insurance Companies active in Indian market:
8
• Max Bupa Health Insurance Company Limited
• Religare Health Insurance Company Limited
• Star Health and Allied Insurance Company Limited
II. General Insurance Companies
• Bajaj Allianz General Insurance Company Limited
• Bharti AXA General Insurance Company Limited
• Cholamandalam MS General Insurance Co Limited
• Future Generali India Insurance Company Limited
• HDFC Ergo General Insurance Company Limited
• ICICI Lombard General Insurance Company Limited
• IFFCO-TOKIO General Insurance Company Limited
• Magma HDI General Insurance Company Limited (Upcoming)
• National Insurance Company Limited
• Raheja QBE General Insurance Company Limited
• Reliance General Insurance Company Limited
• Royal Sundarm Alliance Insurance Company Limited
• Larson & Toubro General Insurance Company Limited
• Liberty Videocon General Insurance Company Limited (Upcoming)
• SBI General Insurance Company Limited
• Shriram General Insurance Company Limited
• Tata AIG General Insurance Company Limited
• The New India Assuance Company Limited
• The Oriental Insurance Company Limited
• United India Insurance Company Limited
• Universal Sompo General Insurance Company Limited
III. Life Insurance Companies
• Aviva Life Insurance Company India Limited
• AEGON Religare Life Insurance Company Limited
• Bajaj Allianz Life Insurance Company Limited
• Bharti AXA Life Insurance Company Limited
• Birla Sun Life Insurance Company Limited
• Future Generali India Life Insurance Company Limited
• HDFC Standard Life Insurance Company Limited
• ICICI Prudential Life Insurance Company Limited
9
• IDBI Fortis Life Insurance Company Limited
• India First Life Insurance Company Limited
• Life Insurance Corporation of India
• ING Vysya Life Insurance Company Limited
• IDBI Fortis Life Insurance Company Limited
• Max New York Life Insurance Company Limited
• PNB MetLife India Insurance Company Limited
• Reliance Life Insurance Company Limited
• SBI Life Insurance Company Limited
• Star Union Dai-ichi Life Insurance Company Limited
• Tata AIG Life Insurance Company Limited
Recent market analysis report state that the public sector undertaking (PSUs) United
India Insurance and National India Insurance registered strong market growth of 33%
and 27% respectively. Whereas new India recorded a growth of 17% compared to
previous year. Amongst the private players ICICI Lombard has retained its top
position with a market share 11% and growth of 12 Percent. With the exception of
Reliance General, IFCO Tokyo, Star Health & Allied Insurance and all the other
companies recorded a growth during the period. Standalone health insurance
companies; Apollo Munich & Max Bupa have shown significant growth during the
period. They registered the market share 3% and 1% respectively at the end of
FY2011-2012.
10
these heads. They usually do not cover pre-existing diseases or complications arising
from them for the first four years of the policy. Besides, claims for specific ailments
may not be allowed in the first or second year. For every claim-free year, most plans
add 5 per cent to the sum insured. Market-based systems (voluntary and private) have
mediclaim scheme which covers about 2.5 million of population. There are many
employers who reimburse costs of medical expenses of the employees with or without
contribution from the employee. It is estimated that about 20 million employees may
be covered by such reimbursement arrangements.
12
• IRDA issues a certificate of registration, renew, modify, withdraw, suspend or
cancel such registration to applicant.
• Protection of the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable interest,
settlement of insurance claim, surrender value of policy and other terms and
conditions of contracts of insurance;
• Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
• Specifying the code of conduct for surveyors and loss assessors;
• Promoting efficiency in the conduct of insurance business;
• Promoting and regulating professional organisations connected with the
insurance and re-insurance business;
• Levying fees and other charges for carrying out the purposes of this Act;
• Calling for information from, undertaking inspection of, conducting enquiries
and investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organisations connected with the insurance business;
• Control and regulation of the rates, advantages, terms and conditions that may
be offered by insurers in respect of general insurance business not so
controlled and regulated by the Tariff Advisory Committee under section 64U
of the Insurance Act, 1938 (4 of 1938);
• Specifying the form and manner in which books of account shall be
maintained and statement of accounts shall be rendered by insurers and other
insurance intermediaries;
• Regulating investment of funds by insurance companies;
• Regulating maintenance of margin of solvency;
• Adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
• Supervising the functioning of the Tariff Advisory Committee;
• Specifying the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organisations referred to in
clause (f);
• Specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector; and
• Exercising such other powers as may be prescribed.
13
1.2 OBJECTIVE OF THE STUDY
1. To study the perception of respondents regarding health insurance services.
2. To examine the factors that influence customers while considering purchase of
health insurance.
3. To study the importance of the following attributes in the purchase of health
insurance.
4. To study the barriers in the purchase of health insurance.
14
A questionnaire was used to study the various demographic aspects of the respondents
and various factors influencing health insurance and barriers in purchase of health
insurance.
15
was the collection of secondary data. In this project, some of the data has been
collected from Internet which is a source of Secondary data.
(b) Primary Data Primary Data was the one which is of employee's importance and
backbone of any study. In this study primary data is collected through Questionnaire.
In this structured questionnaire was used.
• The sample size taken was small and may owing to time, cost & effort constraint
may not be sufficient to predict the results accurately.
• The findings have been generalized on the basis of the behavior of 100
respondents in Jalandhar districts, results may not be applicable to other region.
• There may be some biasness in the responses of the respondents which cannot be
ruled out fully.
• The findings of today may not hold good tomorrow.
16
17
2.1 INTRODUCTION TO INSURANCE INDUSTRY
2.1.1 HISTORY OF INSURANCE SECTOR 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 (now Kolkata). This Company
however failed in 1834. In 1829, the Madras Equitable had begun transacting life
insurance business in the Madras Presidency.
Insurance in India started without any regulation in the Nineteenth Century. It was a
typical story of a colonial era: a few British insurance companies dominating the
market serving mostly large urban centres. After the independence, it took a dramatic
turn. Insurance was nationalized. First, the life insurance companies were nationalized
in 1956, and then the general insurance business was nationalized in 1972. Only in
1999 private insurance companies have been allowed back into the business of
insurance with a maximum of 26% of foreign holding. In what follows, we describe
how and why of regulation and deregulation. The entry of the State Bank of India
with its proposal of bank assurance brings a new dynamics in the game. We study the
collective experience of the other countries in Asia already deregulated their markets
and have allowed foreign companies to participate. If the experience of the other
countries is any guide, the dominance of the Life Insurance Corporation and the
General Insurance Corporation is not going to disappear any time soon.
18
achieve security. Though the concept of insurance is largely a development of the
recent past, particularly after the industrial era – past few centuries – yet its
beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian Soil. All the insurance companies established during
that period were brought up with the purpose of looking after the needs of European
community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu Muttylal Seal, the foreign life
insurance companies started insuring Indian lives. But Indian lives were being treated
as sub-standard lives and heavy extra premiums were being charged on them.
Bombay Mutual Life Assurance Society heralded the birth of first Indian life
insurance company in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance companies came
into existence to carry the message of insurance and social security through insurance
to various sectors of society. Bharat Insurance Company (1896) was also one of such
companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise
to more insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore were
established in 1906. In 1907, Hindustan Co-operative Insurance Company took its
birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath
Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life
(later Bombay Life) were some of the companies established during the same period.
Prior to 1912 India had no legislation to regulate insurance business. In the year 1912,
the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life
Insurance Companies Act, 1912 made it necessary that the premium rate tables and
periodical valuations of companies should be certified by an actuary. But the Act
discriminated between foreign and Indian companies on many accounts, putting the
Indian companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to
176 companies with total business-in-force as Rs.298 crore in 1938. During the
mushrooming of insurance companies many financially unsound concerns were also
floated which failed miserably. The Insurance Act 1938 was the first legislation
19
governing not only life insurance but also non-life insurance to provide strict state
control over insurance business. The demand for nationalization of life insurance
industry was made repeatedly in the past but it gathered momentum in 1944 when a
bill to amend the Life Insurance Act 1938 was introduced in the Legislative
Assembly. However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance companies, 16 non-
Indian companies and 75 provident were operating in India at the time of
nationalization. Nationalization was accomplished in two stages; initially the
management of the companies was taken over by means of an Ordinance, and later,
the ownership too by means of a comprehensive bill. The Parliament of India passed
the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance
Corporation of India was created on 1st September, 1956, with the objective of
spreading life insurance much more widely and in particular to the rural areas with a
view to reach all insurable persons in the country, providing them adequate financial
cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services need
was felt in the later years to expand the operations and place a branch office at each
district headquarter. Re-organization of LIC took place and large numbers of new
branch offices were opened. As a result of re-organisation servicing functions were
transferred to the branches, and branches were made accounting units. It worked
wonders with the performance of the corporation. It may be seen that from about
200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in
the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of
new business. But with re-organisation happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 113 divisional
offices, 8 Zonal offices, 1381 Satellite offices and the Corporate office. LIC's Wide
Area Network covers 113 Divisional offices and connects all the branches through a
Metro Area Network. LIC has tied up with some Banks and Service providers to offer
on-line premium collection facility in selected cities. LIC’s ECS and ATM premium
payment facility is an addition to customer convenience. Apart from on-line Kiosks
and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore,
20
Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision
of providing easy access to its policyholders, LIC has launched its SATELLITE
SAMPARK offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate anywhere
servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past
records. LIC has issued over one crore policies during the current year. It has crossed
the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives
which inspired our forefathers to bring insurance into existence in this country inspire
us at LIC to take this message of protection to light the lamps of security in as many
homes as possible and to help the people in providing security to their families.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian
soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company
started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalised. LIC formed by an Act of Parliament, viz. LIC
Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in
the year 1850 in Calcutta by the British.
21
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
22
commercial and retail property development, the DLF group has now made forays
into the infrastructure, SEZ and hotel businesses by entering into several strategic
alliances with global industry leaders like Laing O‘Rourke Plc. and Hilton Hotels
Corporation.DLF is committed to quality, trust and customer sensitivity, and to
deliver on promises with agility, financial prudence and in tune with the highest
global standards.
PFI is a U.S. based financial services leader with its headquarters in Newark, New
Jersey, with approximately US$ 638 billion of assets under management as of June
30, 2008 and operations in the United States, Asia, Europe and Latin America. PFI is
focused on helping its customers achieve financial prosperity and peace of mind.PFI
ranks among the Top 100 in the 2007 Forbes Global 2000 List, an annual tabulation
of the world's largest public companies and ranks 1st on Fortune Magazine's list of
World's Most Admired Companies in the Insurance: Life and Health Insurance
Category two years running, in 2007 and 2008. With more than 130 years in financial
services, PFI is focused on helping approximately 50 million individual and
institutional customers grow and protect their wealth. The company's well recognized
'Rock' symbol is an icon of strength, stability, expertise and innovation that has stood
the test of time. PFI's businesses offer a variety of products and services, including
life insurance, annuities, retirement-related services, mutual funds, investment
management, and real estate services. PFI's legacy is based on a long history of social
responsibility, strong leadership, sound investments, and innovative products and
services.
VISION: At DLF Pramerica, our vision is to ensure that every life we touch feels
secure and enriched.
MISSION: We shall be a guide and a mentor to people so that they are able to make
the most informed insurance decisions to meet their life goals.
VALUES:
Customer Focused- Be someone who places customers and their needs at the
forefront while developing and managing their financial solutions.
Mutual Respect- Build mutual respect by being an equal partner, who knows and
willingly shares, helping people go further rather than walking ahead and leading
them or walking behind and following.
23
Worthy of Trust- Build trust by choosing the right path rather than the easy path and
tell the truth the way it is. Be someone who keeps promises, meets commitments and
behaves with integrity at all times.
Winning- Be positive and confident; seize every moment, every day, with a winning
perspective, fearlessly facing the uncertainties of life.
Every organization requires competent employees (Sales Managers) for the successful
functioning of its various departments. To ensure that the staff works efficiently and
effectively, the organization has to continuously evaluate their performance and
bridge any performance gaps by providing appropriate training to them. For, it is the
people who “make or break” an organization. Traditionally, the training policy in an
organization focused on enhancing the productivity and effectiveness of the
employees so that the medium term and long term strategies of the organization could
be successfully fulfilled. Since upgradation of skills and knowledge has direct
relevance to performance. This necessitates huge investments in the training programs
for providing the requisite skill set to the staff.
The ultimate aim of any training program is to achieve:
- Continuous Improvement.
- Change-in-Attitude.
- Cost Saving.
- Total Productivity.
24
Today, Bajaj Allianz is one of India’s leading and fastest growing insurance
companies. Currently, it has presence in more than 550 locations with over 60,000
Insurance Consultants.
Organisational Set-Up
Organizational set-up is important for the overall efficient working of various
departments and for improved performance for an insurer. The departments have to be
set up on the basis of various activities of the company. Activities generating revenue
are given more importance. Thus, various offices, departments and sections are
created to look after the important activities of the insurance company. Important
activities of an insurance company are:
Procuring new business for insurance.
Scrutiny of proposal and giving decision of acceptance or otherwise for proposals
for insurance
Issuing policy documents. Keeping track of performance of insurance contracts by
way of receipt of premiums
Providing assistance in various matters like nominations, assignments, alterations,
payment of claims etc.
Other activities like, investment of funds maintenance of accounts, personnel
management, data processing and complying with legal and regulatory
requirements
Product Details
An insurance company offers products in the form of different insurance plans like: -
Term insurance plan
25
Loan cover term insurance plan
Single premium whole of Bajaj Allianz insurance plan
Pension plan
Endowment plan
Money back plan
Insurance Documents
The responsibility of a certified financial advisor includes proper filling of forms of
the clients. The agent/advisor forms the link between the customer and the insurance
company. In insurance business certain documents forms the basis of contract.
26
meeting all customer lifecycle needs related to – Protection, Retirement, Savings
and Investments.
With a strong sales force of over 14,000 Financial Planning Advisers (FPAs), we have
initiated and pioneered many innovative sales approaches, including the concept of
Bancassurance and Financial Health Check services. We are among the first
companies to introduce the contemporary unit-linked products.
A seasoned team of fund managers make our fund management one of the key
differentiators. In India, with a wide distribution network of 134 branches spreading
across nearly 1,000 towns and cities, we operate in partnership with the Dabur Group
through our 26% interest in Aviva Life Insurance Company India Ltd.
Keeping with our commitment of social responsibility, we have been successful in
reaching out to the underprivileged strata through our Microinsurance initiatives
27
28
DATA ANALYSIS AND INTERPRETATION
The data had been processed and analysed by tabulation interpretation so that findings
can be communicated and can be easily understood. The findings are presented in the
best possible way. Tables and graphs had been used for illustration of findings of the
research.
Table 3.1 Demographic Profile of Customers
29
Analysis and Interpretation: It was found that majority of respondents i.e.60% were
between age group of 19-30 years and majority of the persons i.e. 60% of them were
Male and only 40% of them were Female. Majority of respondents monthly income
level under between Rs 10,001 – 20,000.
30
Statement 1: Awareness about the existing health insurance policies
Table 3.2 Awareness About The Existing Health Insurance Policies
Awareness No. of Respondents Percentage
Yes 100 100
No 0 0
Total 100 100
120
100
100
80
60
40
20
0
0
Yes No
31
Statement 2: Subscribed to any health insurance plan
Table 3.3 Subscribed To Any Health Insurance Plan
Subscription No. of Respondents Percentage
Yes 100 100
No 0 0
Total 100 100
120
100
100
80
60
40
20
0
0
Yes No
32
Statement 3: Services for health insurance are availed by you at present
Table 3.4 Services For Health Insurance Are Availed By You At Present
Company Name Respondents Percentage
ICICI Lombard 2 2
Oriental Insurance 6 6
Star Health & Allied Insurance 1 1
Apollo Munich 2 2
Bajaj Allianz Insurance 17 17
LIC 19 19
CHOLA MS. General 3 3
Others 13 13
Total 100 100
Figure 3.3 Services For Health Insurance Are Availed By You At Present
20 19
18 17
16 15
14 13
12
12 10
10
8 6
6
4 3
2 2
2 1
0
33
Analysis and Interpretation
From the above table, we can interpret that maximum number of the respondents have
subscribed Company’s Lic health insurance policies 19% subscribed and 17% by
Bajaj Allianz. On the other hand, less number of respondents has subscribed Public
Limited company’s 15% by National Insurance policies and 10% by New India
Insurance policies. 12% by united India insurance, and 13% of respondent are
subscribed by other companies.
34
Statement 4: Sources of information which influence you in purchase of health
insurance.
35
29
30
25 22
20
16
14
15
10
10 8
5
1
0
Internet Doctor & Newspaper Radio Insurance Friends & Any Others
Consultant Agents Relatives
35
Analysis and Interpretation
From the above table, we can interpret that maximum number of the respondents are
influenced with the information of insurance agent 29%, followed by Friend &
relative 22%. After that 16% of respondent get information from internet, 14% of
respondent are get information from doctor & consultant, 8% and 1% get information
from Newspaper and Radio respectively. As the health insurance company’s focuses
on providing information related to their products on their websites, social media sites
and other useful sites. They are also providing complete information to their insurance
agents and it creates the more influence consumers for purchasing health insurance
policies.
36
Statement 5: Presently insurance plan subscribed by respondent
60
50 48
40
30 25
20 17
10
10
0
Individual Family Floater Critical Illness Any Others
Health
Insurance
37
Statement 6: Your Annual Premium
Below 5000 48 48
5000-10000 25 25
10000-25000 17 17
Above 25000 10 10
Total 100 100
60
50 48
40
30
25
20 17
10
10
0
Below 5000 5000-10000 10000-25000 Above 25000
38
Statement 7: Important factor that motivates you for purchasing health
insurance.
Table 3.8 Factor That Motivates You For Purchasing Health Insurance
Motives No. of Respondents Percentage
Reduction in Out of Pocket Expenditure 30 30
Better safety for health 50 50
Emergency Health Care 5 5
Tax Benefit 5 5
Better health care facility 10 10
Total 100 100
Table 3.7 Factor That Motivates You For Purchasing Health Insurance
60
50
50
40
30
30
20
10
10 5 5
0
Reduction in Better safety for Emergency Tax Benefit Better health
Out of Pocket health Health Care care facility
Expenditure
39
Statement 8: Importance of the following attributes in the purchase of health
insurance.
Table 3.9 Importance of the Following Attributes In The Purchase of Health
Insurance
40
Statement 9: The following barriers in the purchase of health insurance.
Table 3.10 The following barriers in the purchase of health insurance.
41
42
FINDING OF THE STUDY
The purpose of the research was to find out the factors that influence the purchase of
health insurance. The study was focused on purchase motivation factors, importance
and barriers in purchase of health insurance
• Reduction in Out of Pocket Expenditure and Better safety for health were the most
preferred motivation factors in the purchase of the health insurance policy.
• Emergency Health Care and Tax Benefit were the least preferred motivation
factors when it came to purchase health insurance.
• The tax benefit has somewhat little effect in motivation to purchase of health
insurance policy.
• Most of the respondents have subscribed Limited Company’s LIC health
insurance followed by Bajaj Allianz.
• Less number of respondents has subscribed Public Limited company’s New India
Insurance policies followed by Oriental Insurance policies.
• Insurance agents and relatives are most influencing factors to customers in health
insurance purchase.
• Maximum number of the respondents i.e. 48% below 5000 followed 25% between
5000-10000. 17% respondents pay between 10000-25000 and remaining 10% pay
above 25000 rs.
• Most of the respondents have Individual health insurance plan followed by Family
floater health insurance plan.
• Less number of respondents have Critical Illness health insurance plan.
• No return on investment is the major barrier in the purchase of health insurance
followed by low income/non availability of funds, lack of adequate guidance, lack
of comprehensive coverage and better investment options are the main barriers in
the purchase of health insurance.
43
44
5.1 CONCLUSION OF THE STUDY
From detailed analysis, major barriers identified in health insurance purchase are
“Lack of Intermediaries, Outreach and incompetence, Lack of availability and
accessibility of hospital Services, Lack of Guidance and Awareness, Preference to
other mode of Investment”. Internet and Insurance agents are the most influencing
sources for customers to purchase health insurance policy. Emergency health care and
better safety for health were the most preferred motivation factor for purchase the
health insurance policy. All the attributes such as Tax Rebate, Risk Coverage, Health
Care Expense, Incentives, Compensation, and Cashless Policy are important for
purchase of health insurance. Most of the respondents are willing to join health
insurance, if Comprehensive coverage provided with least cost and low premium
costs conditions are fulfilled. The marketers in health insurance industry need to focus
on the major barriers in health insurance industry and try to adopt societal marketing
philosophy along with holistic vision as it will go a long way in brand building apart
from assured success in penetration. The companies should motivate their sales force
to broaden their horizon by aligning their sales efforts to the useful dimensions of
strategies selling model as well as through application of service quality models.
Besides, the appropriate connect with reputed health care agencies of Central
Government; State Government and Non-Government Organizations will go a long
way in serving the needs of destitutes and aspirants. These initiatives may result in
sustainable success of marketers eyeing to capitalize the opportunity prevailing in
Indian health insurance sector.
45
46
6.1 RECOMMENDATIONS OF THE STUDY
After concluding the results of the data, the following recommendations are:
1. From the above study, we found that the Reduction in Out of Pocket Expenditure
and better safety for health were the most preferred motivation factors for
purchase of the policy. The companies should focus on the promotion of health
insurance with emphasis on better safety for health and Reduction in Out of
Pocket Expenditure.
2. Tax Rebate, Risk Coverage, Health Care Expense are important in purchase of
health insurance. While purchasing the health insurance, people should consider
these attributes. Hence companies should focus on these attributes so that they
influence customers with these benefits of health insurance scheme in the Indian
market
3. Incentives, Compensation are the important attributes for purchase of health
insurance. Companies should provide more promotional discounts they can easily
influence the customers with promotional incentive schemes for purchase of
health insurance policy
4. Cashless Policy is also the important attribute in purchase of health insurance.
Companies should more focus on cashless policy. It will be more beneficial to
attract the customers from the market, because every person is busy towards
their jobs they have no time for reimbursement. Generally People have no faith on
insurance company’s claim. So with cashless policy client pay hospital bill or
medical expenses on the spot
5. Insurance agents and relatives are influencing customers to purchase health
insurance policy. Health insurance Company’s focuses on providing information
related to their products on their websites, social media sites and other useful sites.
As well as providing complete information to their insurance agents. Hence they
influence consumers to purchase health insurance policies.
6. Most of the respondents have individual health insurance plan followed by family
floater plan. The companies need to focus on individual and family floater plans to
target the audience.
7. Lack of availability and accessibility of hospital Services are most important
barriers in purchase of health insurance. Companies need to tie up with better
services provider hospitals.
47
48
REFERENCES
49
11. Valentin .(2013) . "A Comparative Study of Promotional Strategies Adopted by
Public and Private Sector Insurance Companies in India", Shiv Shakti
International Journal in Multidisciplinary and Academic Research, Vol. 1, No. 4.
50
51
QUESTIONNAIRE
52
Q.1 Are you aware about the existing health insurance policies?
Yes No inter.
Q.2 Have you subscribed to any health insurance plan?
Yes No inter.
Q.3 Which company’s services for health insurance are availed by you at
present?
Q.4 Please tick the sources of information which influence you in purchase of
health insurance.
1. Internet 2. Doctor & consultant
3. Newspaper 4. Radio
5. Insurance agents 7. Friends and relatives
8.Any other
53
Q.7 What is the important factor that motivates the subscription of health
insurance purchase?
Q.8 Rate the importance of the following attributes in the purchase of health
insurance.
Q.9 According to you rate the following barriers in the purchase of health
insurance.
54