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THE INVESTMENT FEEDBACK OF HEALTH INSURANCES


PROVIDED BY PRIVATE FIRMS

In partial fulfillment of the Dissertation
In Semester - IV of the Master of Business Administration

Prepared by
OBBILLISETTY NIKESH
Registration No:
12010221055

Under the Guidance
PROF.ARUNABHAS BOSE


Bangalore


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Master of Business Administration



Declaration

This is to declare that the report entitled OBBILLISETTY NIKESH. is prepared for the partial fulfillment of the
Dissertation course in Semester IV of the Master of Business Administration by me under the guidance of PROF
ARUNABHAS BOSE .
I confirm that this dissertation truly represents my work. This work is not a replication of work done previously by any
other person. I also confirm that the contents of the report and the views contained therein have been discussed and
deliberated with the Faculty Guide.


Signature of the Student
Name of the Student (in Capital Letters) : OBBILLISETTY NIKESH
Registration No : 12010221055



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Master of Business Administration


Certificate


This is to certify that Mr. OBBILLISETTY NIKESH Regn. No.12010221055 has completed the dissertation titled THE
INVESTMENT FEEDBACK OF HEALTH INSURANCES PROVIDED BY PRIVATE FIRMS under my
guidance for the partial fulfillment of the Dissertation course in Semester IV of the Master of Business Administration



Signature of Faculty Guide:
Name of the Faculty Guide:ARUNABHAS BOSE





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CONTENTS


Pg.No

1.EXECUTIVE SUMMARY 5

2. Introduction 6-20

3.LITERATURE REVIEW 21-22

4.RESEARCH METHODOLOGY 23-32

5.ANALYSIS 33-43

6.FINDINGS 44-45

7.RECOMENDATION AND CONCLUSION 46-48

8.REFERENCES 49-50

9.ANNEXURE 51



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EXECUTIVE SUMMARY

Market research is a cost effective way of finding out what people think, want, need or do. this is generally
followed by the companies to full fill the gap so that they can provide delighted services to the customers and
hence can improve the bottom line and can reach to the customer satisfaction level.

Hence this project mainly includes about investment feedback on health insurance provide by private firms. and
its mainly of understanding the various methods and process of acquisition of primary data. And the main object
of the project is to know the customers perception towards health insurance policies and investing on them and
in this different customers are having different perceptions towards the companies and their policies. and also
most of the people are aware of the health insurance and its importance and how to invest. and where they are
investing according to their income levels. and even more companies are concentrating on the limitations of
customer retention and designing according to their needs and wants.












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CHAPTER 1
INTRODUCTION









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INTRODUCTION
Insurance is not the sale of products, but servicing customers. It is a system, by which the losses suffered by a
few are spread over many, Exposed to similar risks. Insurance is a protection against financial loss arising on
the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A
loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees
to the amount collected. The very fundamental principle of spreading of the risk is actually practiced by the
insurance companies by reinsuring the risks that they have insured. The opening up of the Insurance Sector to
Private Companies, has made available more products and world class service to Indian Customer.

This project has been made with an objective to give an insight into various facts of General 1Insurance sector
in India. An attempt has been made to explain the apex body of General Insurance. i.e., General Insurance
Corporation of India, its structure, products and subsidiaries.

Also the review of latest entrants into insurance sector viz. private players like General Insurance Company,
TATA AIG General Insurance Company, Reliance General Insurance Company limited, IFFCO Tokyo General
Insurance Company, Royal Sundaram General Insurance Company limited and ICICI Lombard General
Insurance Company have been described in brief, Due to the growth in the technological sector of the country,
the insurance companies have started utilizing these technologies to it as optimum level.

CONCEPT OF MARKETING

"Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of
ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual
and organizational objectives."

The American Marketing Association (AMA) states, "Marketing is an organizational function and a set of
processes for creating, communicating and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders."

Marketing is an ongoing process of planning and executing the marketing mix (Product, Price, Place, and
Promotion) for products, services or ideas to create exchange between individuals and organizations. Marketing
tends to be seen as a creative process, which includes advertising, distribution and selling. It is also concerned
with anticipating the customers' future needs and wants, which are often discovered through market research.

In general, marketing activities are all those associated with identifying the particular wants and needs of a
target market of customers, and then going about satisfying those customers betterthan the competitors. This
involves doing market research on customers, analyzing their needs, and then making strategic decisions about
product design, pricing, promotion and distribution.


Essentially, marketing is the process of creating or directing an organization to be successful in selling a product
or service that people not only desire, but are willing to buy. Therefore good marketing must be able to create a
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"proposition" or set of benefits for the end customer that delivers value through products or services.A market-
focused, or customer-focused, organization first determines what its potential customer and then builds the
product or service. Marketing theory and practice is justified in the belief that customers use a product or
service because they have a need, or because it provides a perceived benefit.

Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and
expansion of relationships with existing customers (base management). Once a marketer has converted the
prospective buyer, base management marketing takes over. The process for base management shifts the
marketer to building a relationship, nurturing the links, enhancing the benefits that sold the buyer in the first
place, and improving the product/service continuously to protect the business from competitive
encroachments.For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and desires
of the consumers or Shoppers in the target market. Trying to convince a market segment to buy something they
don't want is extremely expensive and seldom successful. Marketers depend on insights from marketing
research, both formal and informal, to determine what consumers want and what they are willing to pay for.
Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is
the practical application of this process. The offer is also an important addition to the 4P's theory.

Marketing methods are informed by many of the social sciences, particularly psychology, sociology, and
economics. Anthropology is also a small, but growing influence. Market research underpins these activities.
Through advertising, it is also related to many of the creative arts. Marketing is a wide and heavily
interconnected subject with extensive publications. It is also an area of activity infamous for re-inventing itself
and its vocabulary according to the times and the culture.Marketing is an instructive business domain that
serves to inform and educate target markets about the value and competitive advantage of a company and its
products. Value is worth derived by the customer from owning and using the product. Competitive
Advantage is a depiction that the company or its products are each doing something better than their
competition in a way that could benefit the customer.

Marketing is focused on the task of conveying pertinent company and product related information to specific
customers, and there are a multitude of decisions (strategies) to be made within the marketing domain regarding
what information to deliver, how much information to deliver, to whom to deliver, how to deliver, when to
deliver, and where to deliver. Once the decisions are made, there are numerous ways (tactics) and processes that
could be employed insupport of the selected strategies.The goal of marketing is to build and maintain a
preference for a company and its products within the target markets. The goal of any business is to build
mutually profitable and sustainable relationships with its customers. While all business domains are responsible
for accomplishing this goal, the marketing domain bears a significant share of the responsibility. Within the
larger scope of its definition, marketing is performed through the actions of threecoordinated disciplines named:
Product Marketing, Corporate Marketing, and Marketing Communications.

CUSTOMER SATISFACTION
It is a term frequently used in marketing, is a measure of how products and services supplied by a company
meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or
percentage of total customers, whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goals." It is seen as a key performance indicator within business and is often part
of a Balance Scorecard. In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on
the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of
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problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has
loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective. Therefore,
it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable
and reprehensive measures of satisfaction. In researching satisfaction, firms generally ask customers whether
their product or service has met or exceeded expectations. Thus, expectations are a key factor behind
satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and
will likely rate their experience as less than satisfying.
The importance of customer satisfaction diminishes when a firm has increased bargaining power
There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.
Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. Customer
satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is
twofold
:

1. Within organizations, the collection, analysis and dissemination of these data send a message about the
importance of tending to customers and ensuring that they have a positive experience with the
companys goods and services
2. Although sales or market share can indicate how well a firm is performing currently, satisfaction is an
indicator of how likely it is that the firms customers will make further purchases in the future. Much
research has focused on the relationship between customer satisfaction and retention. Studies indicate
that the ramifications of satisfaction are most strongly realized at the extremes. Willingness to
recommend is a key metric relating to customer satisfaction.
The Following is diagrammatic representation of customer satisfaction
Table no. 1.1

HEALTH INSURANCE
The concept of Health Insurance was proposed in the year 1694 by Hugh the elder Chamberlen from Peter
Chamberlen family. In 19th Century Accident Assurance began to be available which operated much like
modern disability insurance. This payment model continued until the start of 20th century. During the middle to
late 20th century traditional disability insurance evolved in to modern health insurance programs. Today, most
comprehensive health insurance programs cover the cost of routine, preventive and emergency health care
procedures and also most prescription drugs. But this is not always the case.

Healthcare in India is in a state of enormous transition: increased income and health consciousness among the
majority of the classes, price liberalization, reduction in bureaucracy, and the introduction of private healthcare
financing drive the change. Over the last 50 years, India has achieved a lot in terms of health insurance. Before
independence, the health structure was in dismal condition i.e. high morbidity and high mortality and
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prevalence of infectious diseases. Since independence, emphasis has been put on primary health care and we
made considerable progress in improving the health status of the country. But still, India is way behind many
fast developing countries such as China, Vietnam and Sri Lanka in health indicators.

Health insurance, which remains highly underdeveloped and less significant segment of the product portfolios,
is now emerging as a tool to manage financial needs of people to seek health services. The new economic policy
and liberalization process followed by Government of India since 1991 paved the way for privatization of
insurance sector in the country. The Insurance Regulatory and Development Authority (IRDA) bill, passed in
Indian parliament, is the important beginning of changes having significant implications for the health sector.
Health Insurance is more complex than other segments of insurance business because of serious conflicts
arising out of adverse selection, moral hazard, unavailability of data and information gap problems. Health
sector policy formulation, assessment and implementation are an extremely complex task, especially, in
changing epidemiological, institutional, technological and political scenario. Proper understanding of Indian
Health situation and application of principles of insurance, keeping in view the social realities and national
objectives, are important.


HEALTH INSURANCE SCENARIO IN INDIA

Health is a human right. Its accessibility and affordability has to be ensured. The escalating cost of medical
treatment is beyond the reach of common man. While well to do segment of the population both in Rural and
Urban areas have accessibility and affordability towards medical care, the same cannot be said about the people
who belong to the poor segment of the society.

Health care has always been a problem area for India, a nation with a large population and larger
Percentage of this population living in urban slums and in rural area, below the poverty line. The
Government and people have started exploring various health financing options to manage problem arising out
of increasing cost of care and changing epidemiological pattern of diseases.


The control of government expenditure to manage fiscal deficits in early 1990s has let to severe
Resource constraints in the health sector. Under this situation, one of the ways for the government
To reduce low funding and augment the resources in the health sector was to encourage the
Development of health insurance. In the light of escalating health care costs, coupled with demand for health
care services, lack of easy access of people from low income group to quality health care, health insurance is
emerging as an alternative mechanism for financing health care.

Indian health financing scene raises number of challenges, which are:
Increase in health care costs
High financial burden on poor eroding their incomes
Need for long term and nursing care for senior citizens because of increasing nuclear family
System.
Increasing burden of new diseases and health risks
Due to low funding of government health care, preventive and primary care and public
Health functions have been neglected

In the above scenario, exploring health financing options became critical. Naturally, health
Insurance has emerged as one of the financing options to overcome some of the problems of our
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System. In simple terms, health insurance can be defined as a contract where an individual or group purchases
in advance health coverage by paying a fee called premium. Health insurance refers to a wide variety of
policies. These range from policies that cover the cost of doctors and hospitals to those that meet a specific
need, such as paying for long term care. Even disability insurance, which replaces lost income if you cannot
work because of illness or accident, is considered health insurance, even though it is not specifically for medical
expenses.

Health insurance is very well established in many countries, but in India it still remains an untapped market.
Less than 15% of Indias 1.1 billion people are covered through health insurance. And most of it covers only
government employees. At any given point of time, 40 to 50 million people are on medication for major
sickness and share of public financing in total health care is just about 1% of GDP. Over 80% of health
financing is private financing, much of which is out of pocket payments and not by any pre-payment schemes.
Given the health financing and demand scenario, health insurance has a wider scope in present day situation in
India. However, it requires careful and significant efforts to tap Indian health insurance market with proper
understanding and training.



VARIOUS HEALTH INSURANCE PRODUCTS AVAILABLE IN INDIA
The existing health insurance schemes available in India can be broadly categorized as:

1. Voluntary health insurance schemes or private-for-profit schemes
2. Mandatory health insurance schemes or government run schemes (namely ESIS, CGHS)
3. Insurance offered by NGOs/Community based health insurance
4. Employer based schemes

1. Voluntary health insurance schemes or private-for-profit schemes:

In private insurance, buyers are willing to pay premium to an insurance company that pools similar risks and
insures them for health related expenses. The main distinction is that the premiums are set at a level, which are
based on assessment of risk status of the consumer (or of the group of employees) and the level of benefits
provided, rather than as a proportion of consumers income.

In the public sector, the General Insurance Corporation (GIC) and its four subsidiary companies
(National Insurance Corporation, New India Assurance Company, Oriental Insurance Company and United
Insurance Company) provide voluntary insurance schemes.

The most popular health insurance cover offered by GIC is Mediclaim policy

Mediclaim policy: - It was introduced in 1986. It reimburses the hospitalization expenses owing to illness or
injury suffered by the insured, whether the hospitalization is domiciliary or otherwise. It does not cover
outpatient treatments. Government has exempted the premium paid by individuals from their taxable income.
Because of high premiums it has remained limited to middle class, urban tax payer segment of population.

Some of the various other voluntary health insurance schemes available in the market are :-Asha deep plan II ,
Jeevan Asha plan II, Jan Arogya policy, Raja Rajeswari policy, Overseas
Mediclaim policy, Cancer Insurance policy, Bhavishya Arogya policy, Dreaded disease policy,
Health Guard, Critical illness policy, Group Health insurance policy, Shakti Shield etc.

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At present Health insurance is provided mainly in the form of riders. There are very few pure health insurance
policies under voluntary health insurance schemes.


2. Mandatory health insurance schemes or government run schemes (namely ESIS,
CGHS)

Employer State Insurance Scheme (ESI):- Enacted in 1948, the employers state insurance
(ESI) Act was the first major legislation on social security in India. The scheme applies to power using factories
employing 10 persons or more and non-power & other specified establishments employing 20 persons or more.
It covers employees and the dependents against loss of wages due to sickness, maternity, disability and death
due to employment injury. It also covers funeral expenses and rehabilitation allowance. Medical care comprises
outpatient care, hospitalization, medicines and specialist care. These services are provided through network of
ESIS facilities, public care centers, non-governmental organizations (NGOs) and empanelled private
practitioners. The ESIS is financed by three way contributions from employers, employees and the state
government.




Even though the scheme is formulated well there are problem areas in managing this scheme. Some of the
problems are:-

Large numbers of posts of medical staff remain vacant due to high turnover and low remuneration
compared to corporate hospitals.
Rising costs and technological advancement in super specialty treatment.
Management information is not satisfactory.
The patients are not satisfied with the services they get
Low utilization of the hospitals
In rural areas, the access to services is also a problem

All these problems indicate an urgent need for reforms in the ESIS Scheme.

Central Government Health Insurance Scheme (CGHS):- Established in 1954, the CGHS covers employees
and retirees of the central government and certain autonomous and semi-autonomous and semi-government
organizations. It also covers Members of Parliament,
Governors, accredited journalists and members of general public in some specified areas.
Benefits under the scheme include medical care, home visits/care, free medicines and diagnostic services. These
services are provided through public facilities with some specialized treatment
(with reimbursement ceilings) being permissible at private facilities. Most of the expenditure is met by the
central government as only 12% is the share of contribution.
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 the cost is reimbursed if referral is made to private facility, when such facilities are not available
with the CGHS).




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Universal Health Insurance Scheme (UHIS):- For providing financial risk protection to the poor, the
government announced UHIS in 2003. Under this scheme, for a premium of Rs. 165 per year per person,
Rs.248 for a family of five and Rs.330 for a family of seven , health care for sum assured of Rs. 30000/- was
provided. This scheme has been made eligible for below poverty line families only. To make the scheme more
saleable, the insurance companies provided for a floater clause that made any member of family eligible as
against mediclaim policy which is for an individual member. In spite of all these, the scheme was not
successful.

The reasons for failing to attract rural poor are many:-
The public sector companies who where required to implement this scheme find it to be potentially loss making
and do not invest in propagating it. To meet the target, it is learnt that several field officers pay the premium
under ficitious names.
Identification of eligible families is a difficult task
Poor find it difficult to pay the entire premium at one time for future benefit, foregoing current
consumption needs.
Paper work required to settle the claims is cumbersome
Deficit in availability of service providers
back due to health insurance companies refusing to renew the previous years policies.


In 2004, the government also provided an insurance product to the Self Help Group (SHG)for a premium of
Rs.120 and sum assured of Rs.10000/-. However, the intake is negligible. The reasons for poor intake are
similar to those cited above.

3. Insurance offered by NGOs/Community based health insurance

Community based schemes are typically targeted at poorer population living in communities.
Such schemes are generally run by charitable trusts or non-governmental organizations (NGOs).
In these schemes the members prepay a set amount each year for specified services. The
premiums are usually flat rate (not income related) and therefore not progressive. The benefits offered are
mainly in terms of preventive care, though ambulatory and inpatient care is also covered. Such schemes tend to
be financed through patient collection, government grants and donations. Increasingly in India, CBHI schemes
are negotiating with for profit insurers for the purchase of custom designed group insurance policies.

CBHI schemes suffer from poor design and management. Often there is a problem of adverse selection as
premiums are not based on assessment of individual risk status. These schemes fail to include the poorest of the
poor. They have low membership and require extensive financial support. Other issues relate to sustainability
and replication of such schemes.

Some of the popular Community Based Health Insurance schemes are: - Self-Employed
Womens Association (SEWA), Tribuvandas Foundation (TF), The Mullur Milk Co-operative,
Sewagram, Action for Community Organization, Rehabilitation and Development (ACCORD),
Voluntary Health Services (VHS) etc.







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4. Employer based schemes

Employers in both public and private sector offers employer based insurance schemes through their own
employer. These facilities are by way of lump sum payments, reimbursement of employees health expenditure
for out-patient care and hospitalization, fixed medical allowance or covering them under the group health
insurance schemes.

The Railways, Defense and Security forces, Plantation sector and Mining sector run their own health services
for employees and their families.






HEALTH INSURANCE FOR SENIOR CITIZENS

Ageing health policy questions are now frequently raised in India. India has not yet found a clear, fair and
adequate system for financing the growing demand for long-term care as the population ages. The migration of
population for jobs and livelihood from rural areas to urban areas and between cities has led to the breaking
down of the age old traditional joint or extended family system in India. This system provides a good
supporting structure for the care of older persons by keeping families together, pooling financial resources and
making family members available in case of need. This weakening in the traditional support systems for older
people is expected to lead to a rapid increase in the demand for formal care provided by institutions such as
nursing and residential homes and also services provided in the community.
At present, there are no social schemes or federal or central government mechanisms for funding of health care
for the aging population. The reliance is currently on private sector, voluntary organizations and indigprograms
that deliver 80% of health care (the remainder is in the form of Government hospitals and Municipal
corporations). The medical infrastructure to handle substantial number of older adults is lacking. There is no
provision for organized long term care for chronically sick, except for the upper middle class and the rich who
can afford to provide good care at home with some professional help. Hence, there is a need for innovative, cost
effective health insurance products for senior citizens which cater effectively to their ne








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NEED OF THE STUDY
The first step towards achieving the ultimate goal of company is customer satisfaction, loyalty and retention.
They provide a foundation in which you can start building upon your customer relationships. A customer
satisfaction survey encourages your clients and customers to give your business vital feedback on issues that
can affect customer retention, including:
Overall satisfaction
Product-specific satisfaction
Brand perception
Pricing
Timeliness of delivery
Customer service satisfaction
Returns and exchange process satisfaction
Interest in new products and services
OBJECTIVES OF THE STUDY
To know whether the customers are aware of health insurance and its importance.
To identify limitations of customer retention.
To find out the strengths and weaknesses of the companys insurance schemes
To understand different schemes of health insurances according to their income levels

SCOPE OF STUDY
Is mostly to identify weather the customers are aware of insurance or not and how much they are willing
to pay for their families. and what are the different perceptions having towards insurance policies.


LIMTATIONS OF THE STUDY:

The limited period allocated for the survey is not sufficient to analyze the market.
There is possibility of collecting biased opinions from the customers.
The survey was conducted to normal set of customers.
Some respondents refused to give their information.












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GENERAL INSURANCE INDUSTRY PROFILE

Insurance in India started without any regulations 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 centers. After the
independence, the Life Insurance Company was nationalized in 1956, and then the general insurance business
was nationalized in 1972. Only in 1999 private insurance companies were allowed back into the business of
insurance with a maximum of 26 per cent of foreign holding (World Bank Economic Review 2000). The entry
of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game. On July 14,
2000 Insurance Regulatory and Development Authority bill was passed to protect the interest of the
policyholders from private and foreign players. The following companies are entitled to do insurance business
in India.

The private insurance joint ventures have collected the premium of Rs.1019.09 crores with the
investment of just Rs.3, 000 crores in three years of liberalization. The private insurance players have
significantly improving their market share when compared to 50 years Old Corporation (i.e., LIC). As per the
figures compiled by IRDA, the Life Insurance Industry recorded a total premium underwritten of Rs.16814.72
crore for the period under review. Of this, private players contributed to Rs.1, 019.09 crores, accounting for 10
percent. Life Insurance Corporation of India (LIC), the public sector giant, continued to lead with a premium
collection of Rs.9,688.87 crores, translating into a market share of 90 per cent. In terms of number of policies
and schemes sold, private sector accounted for only 3.77per cent as compared to 96.23 per cent share of LIC.

The ICICI Prudential topped among the private players in terms of premium collection. It recorded a
premium of Rs.364.9 crores and a market share of 25 per cent, followed by Birla Sun Life with a premium
under- written Rs.170 crores and a market share of 15 percent, HDFC Standard with 132.7 crore and Max New
York Life with Rs.76.8 crores with a market share of approximately 15 per cent each. Unlike their counterpart
in the life insurance business, private non-life insurance companies have not yet started addressing the retail
market. All is set to change in the coming years. Like in the banking sector, non-life insurance companies will
soon have no choice but to focus on individual buyers.

In case of private non-life insurance players that their market shares raised to 13 per cent over previous
year. Private sector grew at 12.8 per cent and public sector grew by 13.8 per cent by the end of January 2010.
Among the private non-life insurance players, ICICI Lombard topped the list with a premium collection of
Rs.4251. 87 crores in one year period with a market share of 9.98 per cent and annual rate of 10.28 percent,
followed by Bajaj Allianz with a premium of Rs.2904.74 crores and 6.82 per cent market share and annual
growth rate of 9.92 per cent and IFFCO TOKIO with a premium of Rs.18, 15.50crore and 4.26 per cent market
share and annual rate of 4.34 per cent.
Among the public sector players, New India garnered a market share of 16.66 per cent, Rs.7, 096.53
crores premium and an annual rate of 17.62 per cent, followed by United India with a market share of 14.97 per
cent with Rs.6.376.35 crores premium, National with a market share of 14.36 per cent with Rs.6115.41 crores
premium and annual rate by 13.65 per cent and Oriental with a market share of 12.77 per cent, Rs.5439.60
crores premium and an annual rate 14.74. If this trend continues, private insurer would dominate the public
sector like New India Insurance Corporation. It is obviously reflect the insurance sector has facing the
challenges with foreign counter parties as well as private counter parties and lot more opportunities are
prevailing to penetrate the insurance business among the uncovered people and area of India. Further, it leads to
economic development of the country. In this regard, it assumes greater significance to conduct debate among
the inter-disciplinary persons.


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PEST ANALYSIS:
1. POLITICAL FACTORS AFFECTING HEALTH INSURANCE INDUSTRY:
Within India governmental ambitions and development of communalism, fissiparous tendencies are on the
mount and could well uphold for quite a little period to time. Therefore, it is probable that the insurance firms
could ponder presenting governmental chance coverage also. The merely portion whereas Indian insurers
ponder providing cover is alongside stare to habits obligation change below precise conditions.
Certain kind of governmental chance at the global level has weighty implications for exporters. The word
political risk has a wider connotation than usually understood or thought. It covers events rising not just from
government, but dangers in the trail of global transactions. In this association, it could be renowned that export
trust insurance has evolved out of uncertainties associating to global transactions, generally due to setbacks
emerging out of external lawful power, governmental adjustments and currency transactions difficulties
confronted by countless growing countries.

ECONOMICAL FACTORS AFFECTING HEALTH INSURANCE
INDUSTRY:
Interest rate at bank and attention rate of P.F variation extremely far alter to existence insurance industry,
because people always appeal by higher return. Therefore, they do not favour lower revisit policy. Joblessness
additionally affects insurance industry, because the joblessness people will not have receiving, so saving
additionally alter to existence insurance sector Attendance insurance industry will undeviating altered by
Natural calamity. Because of these events turns into lots of demise, so the existence insurance firms have to
wage claim opposing policy. Infant mortality rate are additionally altering to existence insurance. Normal
Indian desire luxurious product opposing low income, so that they favor instalment or annuity (EMI), so that
they could not have supplementary saving to invest in existence insurance.




SOCIO-CULTURAL FACTORS AFFECTING HEALTH
INSURANCE INDUSTRY:

The frank communal factors that impact the existence insurance sector are as under: -
Population
Educational level
Level of earning

These are the main communal factors, that impact the existence insurance sector. We will converse concerning
all of them in brief.







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Population:
Growth in the populace is a main factor rising the demand. It is additionally going to apply a distinct impact on
the existence insurance marketplace in supplementary ways. Separately from keeping stress on demand for
goods and services, and across that, ill results of unrestrained development of populace additionally might spur
the development of demand. For example, overcrowding in area locations of entertainment, area grasp up, or
too countless vehicles on the road can consequence in hazards like stampedes and contamination, that demand
covers and yet are not vended on a colossal scale today. Therefore the affirmative as well as the negative
aspects of populace development are going to spur demand.


Level of education:
India is one of the growing countries: the level of education is extremely low here. The literacy rate is extremely
poor. Extra than 50% of the populace is yet uneducated or extra or less not educated. Therefore the people are
not able to comprehend the believed of the existence insurance. Amid the literate people the quality of the
education is yet a large question mark. Therefore the awareness is not crafted and it has come to be a big
challenge for the industry. Therefore one of the factors, that alter the existence insurance sector, is low level of
education.



Level of earning:
Another factor, that affects the existence insurance sector, is the level of earning. In India the law of 80-20 is
working. The 80% of the finished populace possesses the 20% of the wealth and the 20% of the finished
populace is possessing 80% of finished wealth. Therefore the richer are richer and poorer are poorer. Due to this
the existence insurance sector is altered extremely much.




















19 | P a g e


TECNOLOGICAL FACTORS AFFECTING HEALTH
INSURANCE INDUSTRY:

Internet as an intermediary in the Indian marketplace client is not cognizant concerning the worth of insurance.
He thinks of insurance merely as a tax saving measure. In such a scenario Internet can be an functional medium
for instruction the customers concerning insurance. It serves as a solitary window for disseminating
Product, procedure and routine data to the consumers.

Product progress and target marketing across the Internet:
With rise in the number of insurance firms there will be a demand for marketplace segmentation. In such a
scenario Internet can be a functional channel for shoving product specific data to a particular marketplace
segment. Customer feedback concerning a particular product as well as suggestions for
different kinds can be generated across Internet.

Maintaining the database:
The most vital fact that is altering the insurance industry is the maintaining the data of the customers. The
insurance industry possessing a huge catalog of the customers.
In order to uphold it in manually it is truly a dull work. The change in knowledge computers has seized the
work of maintaining it. With the progress of the knowledge it has come to be probable to uphold such huge data
extremely easily. A person can assess the computer and become the features of
the customers. Therefore maintaining the data has truly come to be facile due to the change in technology.

E-business insurance in India:
The Internet has frolicked a vital act in changing the company of the 21st century. Computers are nowadays
being utilized for storing data, data alongside the aid of convoluted and complex technical instruments in
business. This change possessing been extensively consented, the gains, such as fast processing, Efficiency,
price reduction amid countless supplementary benefits. Though, alongside every single affirmative change,
there is an evil attached and knowledge is no exception. In technical words, increased complication of
knowledge brings alongside it, an increased factor of chance involved. The chance can be of assorted qualities,
for example, the chance of data being capitulated due to a virus attack, the theft of confidential data, that
aftermath in defeats for the company firms. With this change in the company procedure, insurers have to craft
new methods for assessing, underwriting and servicing claims for the e-business insurance.
Insurers face trials to a precise chance, in order to resolve them because such dangers dont have each past data,
that creates it all the extra tough for firms.
For example, if a little hackers hack trust card data of insufficient clients, its a defeat for banks, clients and
additionally their brand. Will an insurance strategy cover all of this is question hence; the difficulty is to design
a cover early of all, that truly answers the needs of customer. But even afterward arranging and pricing such
produce, the trial to underwrite and grasp claims for such strategies stays in existence.





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21 | P a g e












CHAPTER-2
LITERATURE REVIEW











22 | P a g e

Review of Literature

Narayanan. H- Indian Insurance, A Profile, 2006: The book highlighted features of
Indian insurance markets, development of insurance sector in India, major players in insurance sector and
insurance products offered to Indian policyholders. The book also provided detail of growth of life insurance
and general insurance in India with appropriate statistics. Various phases of growth and development of
insurance sector are presented in an efficient manner. The comparison of life insurance and life insurance is also
provided in Indian and global context. The detail of LIC and private players is given in this book related to
number of life insurance policies, growth in life insurance premium, life insurance density and number of agents
in life insurance etc.

L. M. Bhole and JitendraMahakud- Fifthedition: Financial Institutions and Markets,2009:The book
focused on Financial Institutions and Markets: Structure, Growth and Innovations,the book elucidated IRDA
policy reforms, Indian Financial System since 2002 and insurance sector reforms. The aggregate view of Indian
insurance is presented is three developmental phases since 1818. Policy development, structure and various
types of insurance plans are defined with evaluation process. The growth of financial services, financial sector
reforms and role of regulators in financial reforms has been discussed in this book.

Ahuja, Insurance: Over the Transition, (2004): points out that for the continued development of the
insurance industry, there is a need to review the 26 per cent limit on foreign equity ownership. In insurance, the
extent of insurance business that an insurance company can underwrite depends on the amount of capital
available with it. This is because it has to follow the solvency norms defined by the regulator. Underwriting
higher risk thus calls for having a higher capital. Given the limited ability of the Indian partners to garner
additional capital, there is a strong case for raising the FDI limit so that the competition in insurance can
blossom fully.










23 | P a g e







CHAPTER 3

RESEARCH METHODOLOGY AND
GENERAL INSURANCE CONCEPTS
24 | P a g e

RESEARCH DESIGN
The present study includes exploratory approach to gather a huge amount of information before concluding the
study. Both descriptive and Causal approaches were adopted. an insurance sector requires a huge data
collection, wherein both primary and secondary data were used to maximum extent. The primary data collection
includes Questionnaires, Personal Interviews etc., to draw information. The main objective behind was to get a
deeper insight regarding the customers health insurance awareness, rather than a particular way of thinking. As
a result, various journals, web sites and books were collected as a part of secondary data.

SAMPLING:
It is a process of collecting useful information .The fundamental aspect of sampling is fixing of sample size i.e.,
70, how many people should be surveyed? In order to get more reliable results, large samples are used rather
than small samples.
Sample units: Sample units were the customers visiting the service center.
Sampling technique: non probability convenience sampling
Sample size: Sample size included had covered a set of 70 customers.


METHODOLOGY:

In this project the primary data is collected through a questionnaire which consists of 10 questions.
Secondary data information was collected from magazines and also with interaction with customers.


Marketing
Marketing is so basic that it cannot be considered as a separate function. It is whole business seen from the
point of view of its final result that is from the customer point of view business success is not determined by the
producers but by the customers.
The above statement by Peter.F.Drucker clearly puts forth the importance and insensibility of marketing the
overall functioning of the organization normally, marketing can be identified as a business function that
identifies unsatisfied needs and wants, defines and measures their magnitude, determines which target markets
the organization can best serve, decide as a appropriate product, services and programs to serve these markets
and calls of everyone in the organization to. Think and serve the customers.
Marketing is no longer The art of selling what you make, but what to make it has been rightly said that while
great devices have been made in the marketing department.
To achieve the desired objectives in marketing a set of marketing tool are utilized by marketers, marketing mix
is the set of marketing tools that firm uses to pursue its marketing objectives in the target markets. Marketing
mix consists of everything the form can be collected in to group of variables known as 4 p;s as proposed by
M.C.Carthy product, price, place, and promotion
According to professor Clark & Clark Marketing consists of those efforts which effects transfer in the
ownership of goods and services and which provide for their physical distribution
25 | P a g e

Production and marketing are the two pillars of an efficient economy, whereas production and consumption are
the two wheels of an economy, which are linked by the powerful belt of marketing.
Companys primary task is to create customers. But todays customers face a vast array of product and brand
choices, prices, and suppliers.
Market segmentation
A market segment is a group of people or organizations sharing one or more characteristics that cause them to
have similar product and/or service needs. A true market segment meets all of the following criteria: it is
distinct from other segments (different segments have different needs), it is homogeneous within the segment
(exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market
intervention. The term is also used when consumers with identical product and/or service needs are divided up
into groups so they can be charged different amounts. These can broadly be viewed as 'positive' and 'negative'
applications of the same idea, splitting up the market into smaller groups.
Marketing of Insurance in India
Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a sector, which
leads to benefits across the full spectrum, from the individual who now have wider choices, to the economy,
which see increased savings, to the infrastructure sector, which can look forward to long term funding being
available. In an under-insured economy, newer channels of distribution have to be utilized to intensify the reach
of insurance both in urban and rural markets. This will create huge employment opportunities not only within
insurance companies but also as agents and consultants of insurance companies.
Marketing Mix Policies
Different companies can choose to position themselves differently and hence the Marketing Mix is different.
However, there are certain common characteristics that one can cull out from the possible strategies that
companies adopt.
Product
The development of flexible products to suit individual requirements is what will differentiate the winners from
the also-rans. The key to success is in providing insurance Solutions not standardized insurance products. The
concept of riders/optional benefits has already been a huge innovation brought about by the new players, which
has led to customization of products for individual needs. However, companies may differentiate themselves on
the basis of product segments that they choose to focus on and excel in.
Place
Different companies may however choose different channels and different geographies to focus on. The channel
options are - tied agency force, corporate agents and brokers and this is an area where different companies will
make different choices. Many companies like HDFC Standard Life are focusing on all channels whereas
26 | P a g e

companies like Max New York Life are focusing on the tied agency force only. Customer interface will be a
key challenge for life insurance companies and includes every that interaction that the customer has with the
company, such as sales, new business underwriting, policy servicing, premium payments, claim processing and
so on. Technology can play a crucial role in delivering the highest standards of service set by the company and
it will be imperative for any serious player to excel in all of these.
Price
Price is a relevant differentiator only in two segments - pure term insurance and in pure annuities. Here too,
service delivery and financial strength will need to be present at a minimum acceptable level for price to be a
relevant differentiator. In case of savings oriented products, long-term returns generated are more relevant than
just the price of the product. A focus on generating good investment performance and keeping a tight control on
costs help in generating good long-term maturity value for customers. Norms have been laid down on all of
these by IRDA and adhering to these while delivering good returns will be a challenge.
Promotion and Advertising
The level of demand is latent and will have to be activated considerably. The market needs to be developed.
Greater awareness of insurance and the need to have it as a protection tool rather than as a tax planning measure
needs to be appreciated by the Indian people. Various communication tools including advertising, direct
marketing and road shows contribute to all this and different companies take different approaches on these.
Process
Cashless settlement: One of the most defining and customer-friendly changes that we have seen in recent years
relates to the way claims settlements are made. The advent of the third-party administrator (TPA) regime has
facilitated the transition to the hugely convenient era of cashless settlement of health and auto insurance claims.
TPAs are entities who process claims on behalf of insurers: the IRDA licenses them after it is satisfied that they
have the financial strength, the trained manpower, the infrastructure and the skills to undertake this activity.
Likewise, with auto insurance, the TPA ties up with garages and authorized service centres for cashless
settlement of auto insurance claims.
Lower premiums
The spirit of competition and the broadening of the risk experience of insurance companies have contributed to
a fall in premiums over the years. Thats because, other things being equal, an insurer who covers the lives just
of 10 people bears a higher risk than an insurer who covers the lives of, say, 100 people. Further, a broader base
will provide greater efficiencies on costs such as distribution, management and claims. A broad basing of the
mortality experience, therefore, gives insurers the elbowroom to compete by lowering premiums, and that trend
is expected to continue.

27 | P a g e

Premium payment flexibility
Insurers have imparted certain flexibility to premium payment options in order to address this concern. For
instance, one now have the option to pay your premiums upfront, which is then carried forward for the tenure of
the policy. The yearly premiums are drawn from the initial corpus. Insurers have also introduced the concept of
automatic cover maintenance to protect your policy from lapsing owing to your omission to pay your
premium on time.
Physical Evidence
This can play a significant role for marketing in the Indian scenario. Since Internet users are comparatively
lesser than countries such as US, the offline mode will be preferred in India.
Insurance
"Insurance is a contract between two parties whereby one party called Insurer undertakes in exchange for a
fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a
certain event."
The entire effort of human life is to proceed from uncertainty to certainty. The rigmarole of life proceeds with
first acquiring the where withal to earn a living and then Striving for its betterment and ensuring that the
comfort and pleasure derived from a physical Commodity or a human being continues. It is at the latter stage
that the mechanism of Insurance Comes in Play.
The concept of insurance is in essence related to the protection of the Economic value of assets. Every asset
whether physical or in form of a human being has a value. The asset
Is built up in the expectation that, either through the income generated there from or some other output, some
needs of the individual would be met. For example, in the case of an Industry its production is sold and income
generated. In the case of a vehicle, it provides comfort and in transportation.
However there is a normally expected life cycle for every asset during which time it is expected to perform its
assigned role. So, a prudent individual can manage his Affairs so that by the end of that life cycle, a substitute is
in place to ensure continued benefit/comfort. However, if due to an accident or other unfortunate event, the
asset gets destroyed or made non- functional, the person deriving benefits there from suffer.
Insurance is the Mechanism that helps to soften the impact of such adverse consequences by providing for some
monetary substitution to face such unforeseen circumstances.
The need of insurance arises from the chances of an accidental occurrence destroying or making an asset non-
functional. Such loss producing eventualities are called perils e.g. Fire, floods, breakdowns, lightning,
earthquakes, etc. however, it has to be remembered that what is being talked about is only a probability of a
loss. The protection of Insurance is against a contingency that may or may not happen.
Insurance can be classified into two classes
28 | P a g e

Life Insurance
General Insurance

Life Insurance
Life insurance is one financial instrument that provides economic security to an individual and/or dependents
when any of the contingencies or risks mentioned above is happened.
A contract of life insurance is defined as that contract in which one party agrees to pay a given sum on the
happening of a particular event contingent upon the duration of human life, in consideration of the immediate
payment of a smaller sum or certain equivalent periodical payments by another.
General Insurance
Every asset has a value and the business of general insurance is related to the protection of economic value of
assets. Assets would have been created through the efforts of owner, which can be in the form of building,
vehicles, machinery and other tangible properties. Since tangible property has a physical shape and consistency,
it is subject to many risks ranging from fire, allied perils to theft and robbery.
Concepts of insurance have been extended beyond the coverage of tangible asset. Now the risk of losses due to
sudden changes in currency exchange rates, political disturbance, negligence and liability for the damages can
also be covered.
But if a person judiciously invests in insurance for his property prior to any unexpected contingency then he
will be suitably compensated for his loss as soon as the extent of damage is ascertained.
Purpose and need of Insurance
Assets are insured, because they are likely to be destroyed or made non-functional, through an accidental
occurrence. Such possible occurrences are called perils. Fire, floods, breakdowns, lightening, earthquakes, etc.,
are perils. The damage that these perils may cause the asset, is the risk that the asset is exposed to.
Conceptually, the mechanism of insurance is very simple. People who are exposed to the same risks come
together and agree that, if any one of the members suffers a loss, the others will share the loss and make good
to the person who has lost. All people who send goods by ship are exposed to the same risk related to water
damage, the ship sinking, piracy, etc. Those owning factories are not exposed to these risks, but they are
exposed to different kinds of risks like, fire, hailstorms, earthquakes, lightening, burglary, etc. Like this,
different kinds of risks can be identified and separate groups can be made for those with similar risks. By this
method, the risk is spread among the community and the likely big impact on is reduced to smaller manageable
impacts on all.
The manner in which the loss is to be shared can be determined beforehand. It may be proportional to the likely
loss that each person is likely to suffer, which is indicative of the benefit he would receive if the peril befell
29 | P a g e

him. The share could be collected from the members after the loss has occurred, or the likely shares may be
collected in advance, at the time of admission to the group. Insurance companies collect in advance and create a
fund from which the losses are paid.
A human life is also an income generating asset. This asset also can be lost through unexpectedly early death or
made non-functional through sickness and disabilities caused by accidents. Accidents may or may not happen.
Death will happen, but the timing is uncertain. If it happens around the time of ones retirement, when it could
be expected that the income will normally cease, the person concerned could have made some other
arrangements to meet the continuing needs. But if it happens much earlier when the alternate arrangements are
not in place, insurance is necessary to help those dependent on the income.
In the case of a human being, he may have made arrangements for his needs after his retirement. These would
have been made on the basis of some expectations like he may live for another 15 years, or that his children will
look after him. If any of these expectations do not become true, the original arrangement would become
inadequate and there could be difficulties. Living too long can be as much a problem as dying too young. These
are risks which need to be safeguarded against. Insurance takes care.
Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril cannot be avoided
through insurance. The peril can sometimes be avoided, through better safety and damage control management.
Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that
asset. It compensates, may not be fully, the losses. Only economic or financial losses can be compensated.
The concept of insurance has been extended beyond the coverage of tangible assets. Exporters run the risk of
the importers in the other country defaulting as well as losses due to sudden changes in currency exchange rates,
economic policies or political disturbances. These risks are now insured. Doctors run the risk of being charged
with negligence and subsequent liability for damages. The amounts in question can be fairly large, beyond the
capacity of individuals to bear. These are insured. Thus, insurance is extended to intangibles. In some countries,
the voice of a singer or the legs of a dancer may be insured, even though the advantage of spread may not be
available in these cases.
Satisfaction of economic needs requires generation of income from some source. If the property, which is the
source of such income is lost fully or partially, permanently or temporarily, the income too would stop. The
purpose of insurance is to safeguard against such misfortunes by making good the losses of the unfortunate few,
through the help of the fortunate may, who were exposed to the same risk but saved from the misfortune. Thus
the essence of insurance is to share losses and substitute certainty by uncertainty.
There are certain basic principles which make it possible for insurance to remain popular and a fair
arrangement. The first is the fact that people are exposed to risks and that the consequences of such risks are
difficult for any one individual to bear. It becomes bearable when the community shares the burden. The second
30 | P a g e

is that no one person should be in a position to make the risk happen. In other words, none in the group should
set fire to his assets and ask others to share the costs of damage. This would be taking unfair advantage of an
arrangement put into place to protect people from the risks they are exposed to. The occurrence has to be
random, accidental, and not the deliberate creation of the insured person.
Spouses have insurable interest in each other. If members of families are in business together or there are some
other financial relationship, insurable interest arises as a result of such financial involvement. Partners can
insure each others lives, because they stand to lose in the event of death of any of them. a creditor may lose
financially if a debtor dies before repaying a loan. His interest would be limited to the outstanding loan with
outstanding interest.
Human Life Value
Life Insurance has long been recognized, as an essential element in an individuals personal financial planning.
A broad based and long-term financial program is necessary for providing
Adequate protection to a family and Life Insurance plays an important role in such a program. However, the
statement is just the tip of the iceberg in terms of importance of Life Insurance. The responsibility of the earning
member to provide for the wellbeing and prosperity of the family continues even after his/her death. If at all
there is any instrument that takes care of these two fundamental needs it is only Life Insurance as observed by
Late Prof .Dr. Solomon S. Huebner is the pioneer of the concept of Human Life Value (HLV) and its
preservation through Life Insurance.
It is universally accepted that human life is too precious to be valued in terms of money. Huebner, the noted
social scientist from US, published his famous treatise on this subject in 1927. He proposed that HLV concept
can provide a framework to analyse the economic risk faced by the individuals and their families. His path
breaking work enables us to answer the question How much Insurance do I need? The answer to this question
can be found out by carrying out systematic needs analysis within the framework provided by him.

Risk Sharing Peace of Mind
God helps him, who helps himself, is an established maxim. There are only 3 sources of income in a calamity
viz. savings, charity and insurance. Savings require time to build up. Charity cannot be thought of as a proper
alternative. So insurance is a farsighted proactive response. It involves a small sacrifice in terms of premium but
the wonderful thing is it creates a present as well as future estate. The risk of the family thus protected is,
shared by the community of policyholders the result is Peace of Mind!
Consumer Acceptance
Acceptance describes consumer willingness to receive and/or to tolerate. For example, a customer might accept
the occurrence of a certain number of yearly supply interruptions given a certain price. Consumer acceptance
31 | P a g e

and satisfaction are related, as the first is a precursor of the latter. However, despite the fact that satisfaction and
acceptance can be thought of as lying on a continuum, acceptance does not automatically lead to satisfaction.
Consumer Concerns
These are expressed anxieties or unease over an object broadly defined Consumer Preferences This is used
primarily to mean an option that has the greatest anticipated value among a number of options. This is an
economic definition and does not tap into wishes or dreams (for e.g. that safe drinking water was free, that
there should be world peace) but for all practical purposes is an appropriate definition. Preference and
acceptance can in certain circumstances mean the same thing but it is useful to keep the distinction in mind with
preference tending to indicate choices among neutral or more valued options with acceptance indicating a
willingness to tolerate the status quo or some less desirable option.

Consumer Expectations
The distinction between expectations and preferences is often blurred though the concepts are distinct.
Expectation is used in three slightly differing senses in the literature. One is the act of expecting or looking
forward a belief about what will happen in the future. Most consumers in Europe expect that clean and safe
water will come out of their taps the next time they turn them on. A related but more technical use of
expectation is to denote a more formal estimation of the probability of an event occurring. These first two
definitions can be distinguished from preference in that preferences refer to some desired state and, as in the
above definition, imply that more than one state is possible and that there are some options. Unfortunately
expectation is also used more loosely to mean a requirement or demand for something and in this sense is a kind
of strong preference. When reading the literature it is important to ascertain which definition is being used.
Consumer Awareness
Consumer awareness is the level of knowledge about, in this case, insurance. This includes the company,
regulatory framework, system and service. In most research the adequacy or otherwise of this awareness is
anchored against the service provider or regulators perspective on the supply. Where consumer awareness does
not equate with this industry perspective this is often termed a consumer (mis)perception However, it should be
noted that there is a distinction between holdings factually incorrect knowledge about the supply system and
differing perspectives on, say, the safety of the supply. In the latter example assessments of safety are
judgments made under uncertainty about the future and thus have a legitimately contestable truth status. What is
acceptably safe is a matter of judgment (potentially based on good science but a judgment under uncertainty
nonetheless) and may or may not be a misperception.
Risk Perception
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This is a term used rather loosely in the literature to mean the level of risk associated with exposure to a hazard.
Unfortunately a risk is often used to mean the specific hazard itself rather than a formal risk which is a
combined assessment of the likelihood and magnitude of harm that may occur as a result of exposure to the
hazard. In section 3 we discuss this concept further.
Consumer Attitudes
An attitude is a positive or negative evaluation of a social object or action. A social object in the present
context might mean the insurance company, Many theories of attitudes (e.g. the well-known theory of planned
behaviour, Ajzen, 1985) have attitude as a factor involved in determining behavioural choices however there is
considerable continuing debate about when, and in what circumstances, attitudes are important determinants of
behaviour. An attitude toward something should thus not be taken to imply that attitude-consistent behaviour
will automatically follow.
Consumers and the Public
While discussing definitional clarity it is worth acknowledging that the consumer is not a representative of a
single homogeneous group, the public. Social scientists prefer to use the term publics to reflect the idea that
not all members of the public share the same goals and values nor have the same relative power status within
any society. A crude example we will return to later is that the poor/unemployed are unable to pay for some
services and it would be a mistake to ignore the importance of this different status when studying preferences.
In the case of insurance, all members of the population have to insured from some source but some are the
direct payers, some pay indirectly. These differing groups will have differing relationships with suppliers and
may well have different preferences.












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CHAPTER-4
ANALYSIS



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Name
Contact Number:
1) Have you heard about Health Insurance?


Category No of Respondents
Yes 70
No 0





INTERPRETATION
Where most all of the respondents had earlier heard about health insurance.











0
10
20
30
40
50
60
70
Series1
Series2
35 | P a g e

2)Source of Information


Category No. of respondents
Newspaper 14
Agent 24
Insurance 6
Friends 4
Doctor 5
Family 4
TV 9
Employer 0
Others 4



INTERPRETATION
Majority of the respondents said that they knew about health insurance from their friends, newspapers, some
from their family members, and some from the agents who deal with insurance

0
5
10
15
20
25
30
Series1
36 | P a g e

3)Consider Health Insurance as Monthly Saving Scheme?

Category No. of Respondents
Yes 30
No 40




INTERPRETATION
42% of the respondents said that they consider health insurance as a monthly saving whereas 58% said that they
dont.














0
5
10
15
20
25
30
35
40
45
yes no
Series1
37 | P a g e


4) Know the difference between Health and Life Insurance?

Category No. of Respondents
Yes 55
No 15



INTERPRETATION
78% respondents said that they are aware of the difference between life and health insurance and 22% didnt
know about it.











0
10
20
30
40
50
60
yes no
Series1
38 | P a g e


5)Willing to buy health insurance for themselves?

Category No. of Respondents
Yes 15
No 55




INTERPRETATION
21% said that they are willing to buy insurance for themselves whereas 79% said that they were not interested.







0
10
20
30
40
50
60
yes no
Series1
39 | P a g e

6) Willing to buy health insurance for their family?


Category No. of Respondents
Yes 40
No 30




INTERPRETATION
58% of the respondents were not willing to buy insurance for their family members whereas 42% said that they
were willing to buy for the family.






0
5
10
15
20
25
30
35
40
45
yes no
Series1
40 | P a g e















INTERPRETATION
These are the 40 members who are willing to buy insurance for their families and want to invest in these parts
of amounts per annum.




0
2
4
6
8
10
12
14
16
upto 5000 5001-10000 10001-15000 15001-20000 20001-25000
Series1
Category(Rs) No. of Respondents
Up to 5000 4
5001-10000 15
10001-15000 7
15001-20000 10
20001-25000 4
Category(Rs) No. of Respondents
Up to 5000 4
5001-10000 15
41 | P a g e


7) Amount Willing to Pay for Insurance per Family Member per Annum


Category(Rs) No. of Respondents
Up to 5000 10
5001-10000 25
10001-15000 10
15001-20000 12
20001-25000 5
>25000 0
No response 8




INTERPRETATION
10 members said that they would spend from Rs.0-5000 P.A, 25 people said that they would spend from
Rs.5000-1000rs P.A, 10 respondents were ready to spend from Rs.10000-15000 P.A. Rest were 12 each for
Rs15000-20000,Rs20000-25000 5, > Rs.25000 0,where 8 respondents have no response.
0
5
10
15
20
25
30
Series1
42 | P a g e



8)Up to what extent people you know have benefitted from Health Insurance


Category No of respondents
Great extent 5
Moderate extent 30
Some extent 20
Little extent 5
Not at all 0
No response 10




INTERPRETATION
10 members gave no response about the benefits from health insurance,20 people said that they were benefitted
to some extent,5 members said that were benefitted to a little extent,30 members were benefitted to a moderate
extent,5 to a great extent and 0 were not benefitted at all.





0
5
10
15
20
25
30
35
To great
extent
To a
moderate
extent
To some
extent
To little
extent
Not at all No
response
Series1
43 | P a g e



9) How many people you know who hold a Health Insurance Policy


Category No. of Respondents
0-10 40
11-20 15
21-30 15




INTERPRETATION
58% respondents said that knew around 10 people using health insurance,21% of them said that they knew
around 20 people using health insurance and 21% said that he/she knew more than 20 members holding a health
insurance policy.






0
5
10
15
20
25
30
35
40
45
0-10 11-20 21-30
Series2
Series1
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CHAPTER 5
FINDINGS














45 | P a g e

FINDINGS

Where all most all of the customers are aware of health insurance and its importance.
Where the companies should mainly concentrate on exisisting customers and should avail more of the
offers then its competetors and should attract them.
Where in this more of the customers want to switch to other companies insurance schemes because
where they are getting better policies then the exisisting companies policies.
Where people are investing in different insurance schemes according to their income levels so
comparing to that companies should mainly focus on that part of policies which should mainly
attracted by the customers

















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CHAPTER 6
RECOMMENDATIONS AND CONCLUSION















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RECOMMENDATIONS
The above report or the process of feedback/survey on health insurance has been an effort to
know about the customers perception towards health insurance policies and its uses.

The interaction with the customers made us know that most of them were satisfied with the
current insurance providers, due to the facilities provided by the companies.

General Insurances health department or the industry as a whole should concentrate on the
policy terms and conditions for the senior citizens.

They being the people in need for a health insurance compared to others gave in many
complaints or grievances about the private sector companies and were willing to take a public
sector companies support. Rather than a private sector.

The companies has to make efforts to promote the health insurance products to create an
awareness amongst the public.

The promotion can include advertisements through hoardings, print and visual media.

We need to reach out to the customers to make them know about the importance of health
insurance and its use in daily life, due to unpredictable situations happening around us.









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CONCLUSION


When the survey or feedback conducted to normal set of customers , it gave an insight in to the customers
perception towards health insurance and their beliefs as to how it works.
They were not aware of its importance in their lives which was filled risk and uncertainties. They were to be
made to understand of its importance in daily life.

This feedback process helped us in interacting with the customers and to know more about their interest and
knowledge towards health insurance.
We saw as to how various customers of different age groups, occupation, and family backgrounds reacted to the
survey and gave us valuable insights into it. This survey will be helpful in developing the local health insurance
policy process in a better way and work procedure.



















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REFERENCES














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BIBLIOGRAPHY
IRDA journals

Directorate General Of Health services

Health Policy Challenges for India: Private Health Insurance and Lessons from the international
Experience by Ajay Mahal

Marketing concepts by Philip kottler

Health Insurance in India by Sujatha Rao

www.irda. gov.in,

www.irda india.org,


www.free press.in

www.bajaj Allianz.com














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ANNEXURE

QUETSIONNAIRE FOR FEEDBACK ON HEALTH INSURANCE


1. Name
Mobile no.

2. Have you heard about Health Insurance?
a) Yes b) No

3. Source of Information
a) Newspaper b)Insurance c)Agent d)Friends e)Movies f) Doctor g) Family h) TV i) Employer j) Other

4. Consider Health Insurance as Monthly Saving Scheme?
a) Yes b) No

5. Know the difference between Health and Life Insurance?
a) Yes b) No

6. Want to buy Health Insurance for themselves?
a) Yes b) No

7. Want to buy Health Insurance for family?
a) Yes b) No

8. Amount Willing to Pay for Insurance per Family Member per Annum
a) Up to Rs.5000 b)Rs.5001 1000 c) Rs.10001 15000 d) Rs.15001 - 20000 e)Rs.20001
25000 f) Above Rs.25000 g) No Response 20

9. Up to what extend people you know have benefitted from Health Insurance
a) To great extent b) To a moderate extent c) To some extent d) To little extent e) Not at all
f) No Response

10. How many people you know who hold a Health Insurance Policy
a) 0 10 b) 11 20 c) 21 30