Consumer Behaviour Towards Health Insurance With Special Reference To Up

Health Insurance Needs, Awareness and Assessment in the
Bahraich District, Uttar Pradesh
JANUARY 2008
This publication was produced for review by the United States Agency for International
Development. It was prepared by Constella Futures, New Delhi
ITAP is a three-year project funded by United States Agency for International Development
under Contract No. GPO-1-01-0400015-00 beginning April 1, 2005_ The project is being
implemented by Constella Futures in partnership with Bearing Point, Sibley International, Johns
Hopkins University, QED, Urban Institute and Association of Reproductive Health Professionals
(ARHP).
For further information contact:
Constella Futures
1 D-11, Parkwood Estates
Rao Tula RamMarg
New Delhi 1100 022
Health Insurance Needs, Awareness and Assessment in the

Bahraich District, Uttar Pradesh
JANUARY 2008
The authors' views expreseed in this publication do not necessarily reflect the views of the
United States Agency for International Development or the United States Government
Contents
List of Tables
List of Figures
List of Abbreviations
Executive Summary
Chapter 1: Background and Methodology ..........................................................
1.1 Introduction...
1.2 Objectives of the Study .................................
1.3 Study Design and Methodology .......................................................................
1.3.1 Sampling and Sample
1.3.2 Study techniques .................................................................................
1.3.3 Development of the Brief Field Guide/Manual for Data Collection ...................
1.3.4 Pre-testing .....................................................
1.4 Research Team Composition .........................................................................
1.5 Training of Field Teams..
1.5.1 Training for household listing ...................................................................
1.5.2 Training for household
1.5.3 Training for facility mapping ....................................................................
1.6 Field Work: Quality Control Mechanism ............................................................
1.7 Data Processing and Entry ............................................................................
1.8 Analysis and Report Writing.
1.4
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
Chapter 2: Household Characteristics ................................................................

2.1 Socio-economic Profile of the Household...2. 1.1 Type of Dwelling . ..............................................................................
2.1.2 Access to Household Amenities
2.1.3 Household Asset Ownership ...................................................................
2.1.4 Ownership of Agricultural Land and Livestock
2.2. Occupation/Main Source of Income .................................................................
2.3 Incomes and Expenditures .............................................................................
2.3.1 Income ....................................... ...................... ...............................
2.3.2 Expenditure Pattern ..............................................................................
2.4 Savings and Debts . . . ....................................................................... 0 ..........
2.4.1 Saving Pattern .......................................................................................
2.4.2 Debts ......................................................................................................
5-16
5
6
6
8
9
10
11
11
14
15
15
16
Chapter 3: Health Insurance .............................................................................

3.1 Knowledge about Health Insurance and its
3.2 Awareness about insurance.-............
3.3 Awareness about types of insurance products ...................................
3.4 Knowledge and familiarization about formal and informal social security mechanism.
3.5 Health Insurance .
17-25
17
18
18
19
20
3.6 Willingness to pay

............................................................
3.7 Preferences for Type of Policy ...............
.................
3.8 Preferences for Payment of
21
23
24
Chapter 4: Morbidity ............................................ ....... ............................

4.1 Illness without Hospitalization ...................................................................
4.1.1 Types of Illnesses.............
4.1.2 Treatment Preferences ....................................................................
4.2 Illness with Hospitalization .......................................................................
4.2.1 Types of Illnesses...
4.3 Chronic Illnesses
4.3.1 Types of Illnesses
4.4 Opinion about Evening OPID Services .......................................................
26-39
26
26
27
30
30
31
35
35
37
38
Chapter 5: Social Capital ............................................................................

5.1 Groups and Networks..................._
5.2 Trust and Solidarity ................................................................................
5.3 Collective Action and Cooperation ........................................................... ..
5.4 Information and Communication ................................................................
5.5 Social Cohesion and Inclusion......__-
40-46
40
40
42
43
44
Chapter 6: Further Analysis on Health Insurance and Health Seeking Behaviour
47-49
Annexure I - Fact Sheet .............................................................................

Annexure 2 - Further Analysis - Tables
Annexure 3 - Household Survey Schedule .................. !, .................................
50-52
63-90
Acknowledgement
ITAP would like to acknowledge with sincere thanks the contribution made by Sambodhi in
producing this resort
List of Abbreviations
BPL
Below Poverty Line
CHC
MPCE
Community Health Center HH Household

Monthly per capita expenditure
MPCI
Monthly per capita income
OBC
Other Backward Caste
OPD
Out-Patient Department
PHC
Primary Health Center
PRI
Panchayati Raj Institution
SC
Schedule Caste
SHG
Self-Help Group
ST
Schedule Tribe
UPHSDP
Uttar Pradesh Health Systems Development Project
ZP
Zila Panchayat
'
List of Tables
Table 2.1: Socio-demographic profile of respondents

Table 2.2: Type of dwelling owned
_
Table 2.3: Access to basic household amenities
Table 2.4: Ownership of household assets
Table 2.5: Ownership of agriculture land
Table 2.6: Ownership of Livestock
Table 2.7: Occupation and Source of Income
Table 2.8: Average monthly income and expenditure by land holding pattern
Table 2.9: Average monthly expenditure (in Rs.)
Table 2.10: Ownership of ration card
Table 2.11: Savings account
Table 2.12: Debt details
Table 3.1: Awareness and Perception regarding "BIMA
Table 3.2: Perception about Insurance
Table 3.3 Knowledge of products provided by government or available in market
Table 3.4: Familiarization with Social Security Measures/ Means of Insurance
Table 3.5: Awareness / Participation in Social Security/ Means of Insurance
Table 3.6: Willingness to pay - Amount & Periodicity of Premium
Table 3.7: Insurance Products - Preferred Features
Table 3.8: Preference for Type of Insurance Products
Table 3.9: Preference for Type of Insurance Products
Table 4.1: Morbidity Pattern due to illness in last 2 months
Table 4.2: Extent of Severity of Disease
.
Table 4.3: Type of Health Facility Visited
Table 4.4: Type of facility visited vis-a-vis type of illness
Table 4.5: Self treatment seeking behaviour
Table 4.6: Means of payment for treatment
Table 4.7: Reason for not seeking care Table 4.8: Morbidity pattern
due to illness with hospitalization
Table 4.10: Type of Health Facility Visited
Table 4.11: Type of facility visited for hospitalization vis-vis type of illness
Table 4.12: Preference for another health facility consulted
Table 4.13: Type of alternate facility visited for hospitalization vis-a-vis type of illness
Table 4.14: Preference for other health facility visited
Table 4.16: Means of payment for hospitalization vis-a-vis type of illness Table
4.17: Morbidity pattern due to chronic illness
Table 4.18: Treatment seeking behaviour
Table 4.19: Treatment vis-a-vis type of chronic illness
Table 4.20: Nearest Health Facility for treatment of chronic illness
Table 4.21: Average distance of Nearest Health Facility for treatment of chronic illness
Table 4.22: Opinion about evening OPD services

Table 5.1: Similarities within groups Table 5.2: Trust and Solidarity .
Table 5.3: Trust on institutions
Table 5.4: Community participation and cooperation
Table 5.5: Contribution in terms of time and money
Table 5.6: Source of information about health insurance
Table 5.7: Existence of social or economic differences
Table 5.8: Difference within the community
List of Figures
Figure 2.1: Sample size distribution by caste
Figure 2.2: Type of dwelling
Figure 2.3: Basic household amenities
Figure 2.4: Ownership of household assets
Figure 2.5: Amount of agricultural land
Figure 2.6: Main source of income
Figure 2.7: Reasons for debt
Figure 3.1: Awareness and Perception regarding "BIMA"
Figure 3.2: Knowledge of products provided by government or available in market
Figure 3.3: Familiarization with Social Security Measures/ Means of Insurance
Figure 3.4: Willingness to pay - Periodicity of Premium
Figure 3.5: Willingness to pay -Amount of Premium (in Rs.)
Figure 3.6: Preferred features in insurance products
Figure 3.7: Willingness to pay - Amount of Premium (in Rs.)
Figure 3.8: Preference for Type of Insurance Products
Figure 3.9: Preference to pay the premium
Figure 4.1: Morbidity Pattern due to illness
Figure 4.2: Type of Health Facility Visited
Figure 4.3: Type of Health Facility Visited
'
Figure 4.4: Reasons for not taking treatment

Figure 4.5: Nearest Health Facility for treatment of chronic illness
Figure 4.6: Opinion about evening OPD service
Figure 5.1: Community cooperation to solve the problem
Figure 5.2: Source of information about health insurance
Figure 5.3: Existence of social and economic differences
Figure 5.4: Differences that cause problem within the community
Executive Summ ar y
Health insurance is an emerging social security instrument for the rural poor, for whom, chronic
health problems, arising due to prevalence of diseases and inaccessibility to an affordable
health care system, is a major threat to their income earning capacity. In order to finance the
health care provisions of rural poor, the Uttar Pradesh Health Systems Development Project
(UPHSDP), funded by World Bank, is planning to provide health insurance coverage to about
8.3 takh population living below the poverty line (BPL) in Bahraich. Preparatory to the exercise,
a Health Insurance Need, Awareness and Assessment survey was conducted in Bahraich
district of U.P. The specific objective of the survey was to assess the experience of households
with illness and health care utilization and the associated financial risks, including informal risk
sharing mechanisms, perceptions about financial risks, demand for protection from these risks,
and knowledge of health insurance and risk pooling mechanisms. The study also made an
attempt to analyze social capital in the target populations, especially levels of institutional trust.
The study followed a two stage cluster design wherein at the first stage around 280 villages
were selected from total list of villages in the district using scheduled caste/scheduled tribe
as criteria. At the second stage, 4 households from the hospitalization category and 6
households from the non-hospitalization category were taken from selected villages. Thus in
all 2800 household were covered for the survey, out of which around 2662 interviews were
completed for the assignment.
Socio-Economic Profile
Most of the respondents (69l) interviewed were Hindus and around one-third (30%) were
Muslims_ The caste desegregated data showed that around 53% of the respondents were from
OBC category and around 27% belonged to General category. Around 91 % of the interviewed
respondents were living in their own houses; the majority of whom (59%) were residing in
Kuccha houses.
The major sour ce of bathing water is a hand pump inside the house, which is ithe key source
of drinking water too. The main source of lighting was kerosene (96l0) and the majority of
households reported using firewood (88%) for cooking.
The occupation profile of the households suggested that around 77% of the households have
land, out of which, almost 44% own less than 1 acre of land More than threefourths of the
surveyed households reported ownership of livestock. Around 44% of the respondents reported
agriculture as the primary source of occupation followed by 36% of who reported being involved
in wage labour (non-farm). Agriculture also featured as a secondary source of income in around
29% of cases,
Income, Expenditure and Debt Pattern
The average monthly household income among sarripled households is Rs 2,827. Thus the
monthly per capita income (MPCI) as whole is Rs. 579.4, considering an average
family size of 4.88 persons. The average monthly household expenditure is Rs 2,229 or monthly
per capita expenditure (MPCE) works out to be Rs. 456.76 cqnsidering a family size of 4.88
persons, which signifies expenditure to income ratio of 79 percent.
Analysis of the expenditure pattern clearly signifies expenditure on food items to be almost 57
per cent of the total expenditure among sample households. Out of non-food items, Medical
expenses formed around eight percent of total expenditure whereas educational expenses
constituted around four percent of total consumer expenditure among sampled households.
Analysis of financial inclusion data reveal that only around one-third (30%) of the household
have a savings account, out of which majority i.e. 93 percent have an account in the bank.
Need, Awareness and Preference for Health Insurance
Around 38 percent of the respondents reported that they have ever heard of "BIMA" (Insurance)
and have seen someone buying or taking some kind of insurance instrument, highlighting the
first level of awareness about the "BIMA". The study further tried to deconstruct the notion
respondents have about insurance and found out that around 29 percent of the respondents
reported insurance as the payout which is received by the family after the death of the insured.
The study at next stage made an attempt to assess the awareness about different kinds of
insurance products. Out of all types of insurance, awareness for Life insurance (38 percent) is
by far, the highest followed by vehicle insurance (15%) and property insurance (10%).
An attempt was made to ascertain the willingness to pay for health insurance which covers
health expenditure up to Rs. 75,000 per year. Findings reveal that fifty six percent of the
respondents are willing to pay a premium of Rs.100-250 a year and another 23 percent reported
a premium of Rs. 250-500 a year, significantly highlighting the comparatively low ability to pay
and hence the need of an appropriately crafted/subsidised policy. When probed about the timing
of premium instalment payments, around 42 percent reported the half year cycle as preferred
timing and a similar percentage reported to be comfortable with an annual payment cycle.
The study further tried to seek preference among term policy and endowment policy. In an
endowment policy, the sum assured is payable even if the insured survives the policy term.
Combining risk cover with financial savings, the endowment policy has emerged as the most
popular policy. Findings indicate that around 91 percent of the respondents preferred health
insurance with partial money back even though it is at a higher cost than normal health policy
which is at a lower cost.
The study further tried to identify whether there was preference for a policy which covers all
expenses over a policy which covers the big expenses. Around 90 percent of the
respondents specified clearly that they would rather prefer a policy of Rs. 300 that covers all
expenses than a Rs. 200 policy which covers only big experises.
.
Besides analyzing preference for policy type and the premium amount to be paid, the study
also sought to find out the preferred place for depositing the premium. Bank (39%), Post office
(27%) and insurance agent (23%) were named as most convenient places to deposit the
premium_ Besides being convenient places to deposit the premium, Bank (40%), Post office
(28%) and insurance agent (22%) were also considered the most trusted place for depositing
the premium payment.
Morbidity Trend
One of the key objectives of the study is to ascertain the morbidity pattern at the household level
and its burden on the household in terms of expense and opportunity lost. Findings reveal that
as many as 89 percent of the HH surveyed were affected by morbidity due to illness during two
months preceding the survey. The key reason was cold/fever which accounted for 57 percent of
the morbidity at the household level. Other ailments mentioned were cold/cough (10%) and
stomach ache (6%)
Looking at the treatment seeking behaviour, it was evident that in around forty six percent of the
cases, treatment was sought from an unqualified doctor. Drug store (18%) and Private DoctorMBBS (14%) were other key facilities visited for treatment. The accessibility analysis clearly
showed that they had gone to facility they desired and only in five percent of the cases they
suggested that they would have preferred some other facility.
One of the key objectives of the study is to examine the burden of treatment on the household
and mode of payment for this. Findings reveal that in majority of the cases the household paid
from its own money and in only around ten percent of the cases the households reported
borrowing from a friend to pay for the illness
Morbidity with Hospitalization
In order to assess the morbidity pattern with hospitalization in households, responses were
sought about any hospitalized case during last one year. Findings reveal that on an average
around nine percent of the HH surveyed were affected by illness/injury with hospitalization.
Further, in around sixteen percent of the cases the household reported that the member was
hospitalized for delivery. Japanese Encephalitis, Cholera (6 % each), Ulcer and stone
operations (5% each) were the major causes for hospitalization.
Looking at the treatment seeking behaviour, it was evident that in around one-third of the cases,
the patient was admitted to district government hospitaIs/CHCs followed by private nursing
homes. Government medical college (18%) and Government PHC/Sub centre (14%) were other
facilities used for hospitalization.
1n more three-fourth of the cases, the household didn't consult any other facility. In only in 5-6
percent of cases, private practioners, both allopathic and Ayurvedic, were consulted for a
second opinion.
Chronic illness
In order to assess the morbidity pattern due to chronic illnesses in the household, responses
were sought about any chronic illness that developed during the last one year.. Findings reveal
that as high a number as 29 percent of the HH surveyed were affected by chronic illnesses
requiring hospitalization.
In order to ascertain accessibility and availability of the treatment facility, the study probed about
the nearest health facility available for treatment. Government PHC or Sub centre was reported
as the nearest health facility in around forty seven percent of the cases. District Hospital was
reported as the nearest health facility in around 18 percent of the cases.
The Government PHC or Sub centre was an average distance of 6km away signifying that in
almost half the cases, one has to travel a minimum of six km to avail of the health facility for
treatment. The average distance for second nearest health facility i.e. District government
hospital, was observed to be around 16 km.
Social Capital: Construct and Dimension
One of the key objectives of the study was to examine the associations of various dimensions
of social capital with each other and with contextual and individual determinants.
On analyzing opinions on trust and solidarity, around 66 percent of the respondent were of the
opinion that one has to be careful while dealing with people, thereby highlighting the status of
trust between community members. When asked about the helpful attitude of neighbours, nearly
three fourth (75%) of the respondents were in complete agreement of the fact that most people
in the neighbourhood are willing to help in times of need. This clearly highlights that though trust
may be low in case of stranger in case of neighbour the trust is there.
,
The present study also tries to ascertain the trust community members have in institutions.
Around 61 percent of the community members showed strong trust in Panchayati Raj officials
while nearly 65 percent of the respondents confirmed having strong trust in local ZP/State
government officials.
Chapter I
Background and Research Methodology

1.1 Introduction
Health insurance is an emerging social security instrument for the rural poor, for whom a
multitude of health problems, and inaccessibility to an affordable health care system,
constitute a major threat to their income earning capacity. In order to finance the health care
provisions of rural poor, the Uttar Pradesh Health Systems Development Project (UPHSDP),
funded by World Bank, is going to implement a pilot community health insurance scheme in
the Bahraich district of Uttar Pradesh. The project aims to provide health insurance coverage
to about 8.3 lakh population living below the poverty tine (BPL).
The health insurance scheme will be designed based on information collected from the study.
The study intends to conduct a survey of households in the Bahraich district to examine the
level of awareness of insurance, prior experiences with health insurance, health expenditures,
preferences and needs as well as social networks and institutional trust. The study also
proposes to compile demographic as well as disease profile data on the districts and collect
information on health care institutions in the Bahraich district.
1.2 Objective of the Study
The objective of this study is to inform the process of benefit design and operations design for
the community health Insurance program in Bahraich district. The specific objectives of the
study include assessing:
The experience of households with illness and health care utilization and the associated
financial risks including informal risk sharing mechanisms,
The perceptions about financial risks and demand for protection from these risks,
Knowledge of health insurance and risk pooling mechanisms,
Social capital in the target populations, especially levels of institutional trust, and Health
service provider mapping (both government and private) and collecting details from all the
facilities (both in-patient and out-patient)
1.3 Study Design and Methodology
One of the key objectives of the study is to examine the prevailing health scenario and assess
awareness about health insurance at the community level and health care facilities provided
by the organized sector. In order to access information a household survey has been
conducted at the village level in Bahraich district of U.P. and facility mapping carried out for all
health care providers in rural as well as urban areas in the district.
1.3.1 Sampling and Sample Size
House listing information laid the basis for the sampling frame. A two stage stratified sampling
design has been followed for the present study. At first stage the villages were selected using
the probability proportionate to size (PPS) methodology. At the second
stage, a required number of households were selected after a complete listing of households
in the village.
The process of listing began at the northwest corner of a segment and all residential
addresses encountered were recorded while traveling in a clockwise direction around the
segment. After complete listing of households in the village, 20 households were selected for
the survey. Information about morbidity pattern was collected at the time of listing and
households were stratified on the basis of that information. Based on house listing
information, all households were grouped into two strata i.e. hospitalization stratum and nonhospitalization stratum based on hospitalization of any household member during one year
preceding the survey.
For the household survey, at the first stage 280 villages were selected from the total list of
villages in the district using the PPS methodology. At second stage 4 households from the
hospitalization stratum and 6 households from the non-hospitalization stratum were taken
from selected villages. Thus in all 2800 household were selected for the survey.
Stratum
I
11
Sample
Total Number of Villages selected
Total number of households selected
280
2800
1.3.2 Study techniques

Keeping in mind the qualitative nature of the study a semi-structured interview schedule was
used for collecting the household data. The interview schedule consisted of both open and
closed ended questions.
1n addition to this separate schedules were used for fisting of households and mapping of
health facilities.
1.3.3 Development of the Brief Field Guide/Manual for Data Collection
Development of the field guide/manual for data collection was essential for ensuring smooth
functioning of field operations. A brief note sheet and field guide/manual were made for the
main survey and facility mapping before initiation of field briefing.
1.3.4 Pre-testing
In order to determine the suitability of the interview schedule, it was subjected to pre-testing
before administering it for actual data collection. The semi-structured interview schedule
developed for the household survey was thoroughly tested to ascertain the suitability of
questions in actual field conditions.
1.4 Research team composition
The project was headed by Project Coordinator who was the chief functionary throughout the
assignment. The Project coordinator was supported by an Advisor, Project Manager and one
research executive.
There were two separate teams for Listing/ Facility Mapping and Survey. Each field team was
coordinated by one Field Manager along with requisite field supervisors. Fieid manager was
responsible for overall coordination, planning and quality of survey.
Household Survey: Team composition
Field Manger was the overall manager for the field operations and was responsible for
coordination, planning and execution of main survey. Field Manger consistently reported to
team leaders. The field supervisor was the senior member of the field team and was
responsible for the completion of the assigned workload and the maintenance of data
quality.
1.5 Training of field teams
The training of field teams is carried out in three phases.
1.5.1 Training for household listing
The training of investigators on the household listing exercise was conducted for 4 days,
which included two days of theoretical sessions and two days of field practise. During the
course of training due focus was laid on basics of household listing and.ways to collect
hospitalization and illness information during the last year.
1.5.2 Training for household survey
Training for the survey team consisting of investigators, supervisors and field executive on
the survey objective, survey tools, sampling design and on expected data quality was
scheduled for 4 days. First two days of the training comprised of theoretical sessions, which
focused on training investigators on household schedule containing details related to health
insurance and other information through lectures and mock and demonstration interviews.
The subsequent two days were utilized for field based training to the investigators to
familiarize them with the questions. Field practise included mock interviews in actual field
situations, which was carried out in the selected non-sampled sites at the district level, to
make the investigators comfortable and adapt to the field conditions. Further the training was
extended for one day, which was again spent in the field. This one-day extension helped
investigators to overcome their hesitations and become fluent in administering the
interviews.
Things ensured during training:
Investigators were recruited based on their educational qualification, maturity, their
ability to spend a long duration in the field, and their prior experience with similar kind
of surveys.
To account for dropouts, 15-20 percent extra investigators attended the training.
During training investigators were screened out/ graded based on performance/skill shown
during training.
1.6 Field Work: Quality Control Mechanism

Controlling the quality of the data collection is the most important function of the research
professionals/field executive/supervisors. Throughout the fieldwork, they were responsible for
observing interviews and carrying out field editing.
To ensure the quality of data collection the field supervisor observed interviewers throughout
the course of fieldwork. Following quality control measures were taken care of during the
fieldwork
Spot check and observation

Back check
Re-interviews
Re-visits to minimize non-response
1.7 Data Processing and Data Entry

The data entry and validation work of the survey was handled in-house using the most
advanced data analysis package namely CS Pro. The project coordinators along with the
research team members have provided inputs at various stages of data processing. After field
editing, questionnaires were returned to the main survey office for data processing. The
processing operation consisted of office editing, coding of others category - open-ended
questions, data entry, and editing inconsistencies found by the computer programs.
As with the coding, the process of verification of office data entry involved double data entry
i.e. two persons independently entered the data, and used a computer program which can
check for any differences in the two data sets by generating error list. The errors were then
resolved and corrected by a member of the research team.
The data was edited before using it as information. This action ensured that the information
provided is accurate, complete and consistent. During data editing three types of checks are
applied i.e.
Validity check
Range checks
Consistency checks
1.8 Analysis and Report Writing
After data processing, that includes data editing, recoding of new variables and data entry,
data analysis was conducted. Analysis of the data was carried out using the most advanced
data analysis package namely SPSS.
The analysis of the survey is guided by the specified research objectives. The core team
members under the guidance of project coordinator and system analyst prepared the analysis/
tabulation plan. The required tables were then generated using latest version of analysis
software SPSS/STATA.
Chapter II
Household Characteristics
2.1 Socio-economic Profile of the Household
A total of 2800 households across 280 villages were sampled for the Household Insurance
Survey, out of which around 2662 interviews were completed. The household level
questionnaire was administered mostly to the "head of the household". This section of the
chapter will briefly discuss the profile of the respondents sampled for the survey.
The distribution of the sample shows that most of the households (69%) interviewed were
Hindus and around one-third (30%) were Muslims. The caste desegregated profile of the
sample reveals that around 53 percent were from OBC category and around 27 percent
belonged to General category. Around 19 percent were from SC category.
Figure 2.1 Sample Size distribution by Caste
Particular
Religion
Hindu
Muslim
Christian
Sikh
Table 2.1: Socio-demographic profile of households

Percent
69.4
30.2
0.1
0.3
Caste
Other Backward Caste (OBC)
General
Schedule Caste (SC)
Schedule Tribe (ST)
53.4
26.6
19.1
0.9
Number of households
2662
2.1.1 Type of Dwelling

Study also tried to ascertain the type of dwelling in which the household lives and its
ownership. It is found that 91 percent of the households were living in their own house. In
terms of type of house, around 59 percent were found to be residing in Kuccha houses
whereas almost 35 percent were living in Semi-Pucca houses.
Table 2.2: Type of dwelling owned
Particular
Percent
Ownership of house
Yes
91.0
No
9.0
Type of house
Kuchha
Semi-Pucca
Pucca
58.6
34.9
6.5
2662
Figure 2.2: Type of dwelling

Pucca, 6.5
Kuchha, 58.6
SemiPucca, 34.9
2.1.2 Access to Household Amenities
Access to basic household amenities is one of the key determinants of the living conditions of
the household. The study made an attempt to assess the access to basic amenities at
household level.
The major source of bathing water is hand pump in the residence or yard or compound, cited
by around 66 percent of the households, followed by public hand pump cited by around 17
percent of the households.. The key source of drinking water was also found to be almost
similar. The main source of lighting was kerosene as reported in around 96% of the cases.
Respondents were also asked about the fuel they use for cooking, and as can be seen in the
table below, nearly 88 percent of the respondents use firewood. Around eight percent of
respondents also reported using crop residue. In 18 percent of the cases households have a
separate room for use as a kitchen. Sanitation facilities at household level are found to be
poor as almost 93 percent of the households don't have any toilet facility.
Particuiars
Percent
Main source of bathing water

Hand pump in residence/yard/plot
Public Hand pump
Public tap
Public well
Piped water in residence/yard/plot
Well water in residence/yard/plot
Other sources
66.7
16.7
8.6
2.6
2.5
2.1
0.9
Main source of drinking water

Hand pump in residence/yard/plot
Public Hand pump
Public tap
Public well
Piped water in residencelyard/plot
Well water in residence/yard/plot
Other sources
66.2
17.1
8.7
2.5
2.4
2.2
0.8
Kind of toilet facility

No facility/ Bush/ Field
Own flush toilet
Own pit toilet
Public/ Shared Pit toilet
Public/ Shared flush toilet
Other
92.8
1 3.7
2.4
0.7
0.2
0.2
Main source of lighting

Kerosene
Electricity
Gas
Other
Oil
95.6
3.9
0.2
0.2
0.1
Separate room for kitchen

No
Yes
81.1
18.9
Type of fuel used for cooking

Wood
Crop Residues
Dung Cakes
Liquid Petroleum Gas
Bio-Gas
Kerosene
88.1
7.6
2.0
1.9
0.3
0.0
Total
2662
Table 2.3. Access to

basic household
amenities
Figure 2.3: Basic household amenities
Piped water
Public tap
in residence
Hard pump
Public Hand Well water in
in residence
pump
Bathing
2.1.3 Household Asset Ownership
Public well
residence
Other
sources
: Drinking
In order to assess the living standard of the community at household level, information was
sought about the ownership of household assets. The study shows that 98 percent of the
households own Cots/beds and around 63 percent own mattresses.
Table 2.4: Ownership of household assets
Assets
Cot/Bed
Bicycle
Mattresses
Clock/VVatch
RadiolTransistor
Chair
Table
Mobile
Pressure Cooker
Electric Fan
Sewing Machine
Television (B&W)
Moped/Scooter/Motorcycle
Bullock Cart
Water Pump
Colour Television
Telephone
Tractor
Thresher
Refrigerator
Car/Jeep
Total
Percent
97.7
73.4
62.9
55.9
27.0
18.5
12.7
10.9
8.7
7.6
5.5
4.8
4.5
3.3
3.0
2.5
2.0
1.5
1.3
0.7
0.7
2662
Analysis of-findings reveals that nearly 13 percent have a table and around nine percent
have their own pressure cooker. The study also tries to assess access to entertainment
sources and it is found that around 27 percent of the household own a radio, while only 3-5
percent household own a television. Around 70 percent own a bicycle, and only five percent,
have a scooter/motorcycle.
Figure 2.4: Ownership of household assests
2.1.4 Ownership of Agricultural Land and Livestock

The Indian rural economy is agrarian, which shapes the majority of livelihood opportunities
in rural India. Findings corroborate this as around 77 percent of the households reported
ownership of land, out of which, almost 44 percent of the households own less than 1 acre
of land, and another 29 percent own land in the range of 1-5 acre.
Table 2.5: Ownership of agricultural land
Particular
Percent
Ownership of agricultural land
Yes
77.2
No
22.8
Total
2662
Land Holding Pattern
< 1 Acre
43.6
1-5 Acre
29.0
5-10 Acre
4.3
10+ Acre
0.9
Total
2070
Figure 2.5: Amount of agricultural land
5-10 Acre, 4.3
10+ Acre, 0.9
1-5 Acre, 29.0
A significant proportion of the rural populace is dependent on livestock for a supplementary

livelihood option. More than three-fourths of the surveyed households reported ownership of
livestock.
2.2. Occupation/Main Source of Income

The study attempts to explore the occupational pattern of the respondents. In order to
get data on the occupation of the respondent questions were asked to probe the main
source of income. Around 44 percent of the respondents reported agriculture as their
primary occupation followed by 36 percent of the respondents who work as wage
labourers (nonfarm). Nearly six percent respondents earn their living by working as
wage labourers on agriculture land and in addition doing small trade.
Analysis of secondary source of income reveals that for almost 29 percent of the
respondents agriculture is the secondary source of income, followed by around 17
percent respondents who reported wage labour as the key alternate source of income.
Figure 2.6: Main source of income
Agriculture (own Agriculture (wage

land)
labour)
Wage labor
(Non-farm)
Main Source
Small trade
Salary in public/
Other
private company
Secondary Source
2.3 Incomes and Expenditures

2.3.1 Income
The average monthly household income among sampled households is found to be Rs
2,827. The monthly per capita income (MPCI) thus as whole was 579.4 considering a family
size of 4.88 persons.
In order to further desegregate the average income, the study makes an attempt to analyze
the average income by land holding category for households whose primary source of
income is Agriculture. As can be seen from the table the average monthly income for
household owning less than 1 Acre is found to be Rs. 2129 per month which is substantially
lower than the average income of households owning between 5-10 Acres or more than 10
Acres of land, highlighting the inequality.
Construction of Standard of Living Index (SLI):

Since the household income reported in the household surveys is, often times, unreliable, the
proxy variables will be used to assess economic status of the households. The computation of
standard of living index was done using appropriate scores for housing and housing quality,
civic amenities (possession of sanitary latrine facility and source of lighting), household assets
possessed by the households, land holding, etc..The composite score a n e w thus obtained by
adding the scores for different household assets/possessions was used to arrange the
households in ascending order of the composite score. The lowest one-third of the
households in terms of the composite score were classified as households with low level - of
SltI, the households with middle one-third were grouped into medium SLI and remaining HHs
as high SLI.
List of variables and corresponding s c o r e s used in the construction of SLI
2.3.2 Expenditure Pattern
Among the sampled households, the average monthly household expenditure was Rs 2,229
and monthly per capita expenditure (MPCE) as whole was 456.76 considering a family of
4.88 people.
Analysis of the expenditure pattern shows that food items constituted almost 57 per cent of
the total expenditure among sample households. Out of non-food items, Medical expenses
formed around 8 % of total expenditure whereas educational expenses constituted around
4% of total consumer expenditure.
Travelling expense constituted around 6% of total consumer expenditure and recreation
(including alcohol and tobacco) formed around 4% of total expenditure.
Table 2.9: Average monthly expenditure (in Rs.)
2.3.2.1 Ownership of Rotation card

Around 70 percent of the respondents confirmed ownership of ration cards in the household.
Study further probed about the type of colour of card owned and as can be seen from the
data around 42 percent of the households reported owning white ration card and 33 percent
reported having Pink/Red ration card.
Table 2.10: Ownership of ration card
Item
Percent
Household with Ration Card
Yes
70.0
No
30.0
2662
2.4 Savings and Debts

2.4.1 Saving Pattern
It is well known that a country's financial assets remain heavily skewed in favour of the
urban middle and upper class. It's high time to recognize the financial dream of the rural
class for financial inclusion. The present study tries to gauge the financial inclusion status
of the respondents. As can be seen from the data, around one-third (30%) of the
respondents have savings account out of which the majority i.e. 93 percent have the
account in the bank.
In order to assess the self-help group movement in the district, the study tried to ascertain
the contribution from community. As can be inferred from the data, contributory saving at
the local self help group (SHG) is negligible.
2.4.2 Debts
Around 41 percent households reported having debts. Around one-third (34%) of the
respondents reported having borrowed money for health expenditures,. Another 28 percent
reported taking money for living expenses followed by 18 percent of the respondents who
borrowed money for a wedding.
Table 2.12: Debt details
Household having debts
Yes
No
40.6
59.4
2662
Reasons to borrow money

Health expenditures
Needed money for living expenses
Wedding in family
Other
Buying land / house
33.7
27.1
17.6
12.1
9.6
1370
Figure 2.7: Reasons for debt
Buying land /
expenses
Health
Wedding in
Needed money
Other house
expenditures
family
for living
Chapter III
Health Insurance
3.1 Knowledge about Insurance and its Availability
The village populace, and especially vulnerable population, not only vary across place and
time, they also vary by the type of risks they face such as death, illness, injury and accident.
T h o u g h the risks are no different from those faced by others, they are more vulnerable to
such risks because of their social and economic situation. Thus it is more so important that
some social security mechanism is provided to the village populace especially to vulnerable
population. Insurance is one such instrument which has been widely used as an effective
social security mechanism, although the insurance sector for low-income families especially
in the rural population remains at a very nascent stage in India.
The study tried to understand the awareness of respondents on the very basic construct of
insurance i.e. whether they have seen someone buying or selling a type of instrument such
as Life insurance, vehicle insurance or Health Insurance. Around 38 percent of the
respondents reported that they have ever heard of "BIMA and have seen someone buying
or taking any kind of insurance instrument.
The study further tried to deconstruct the notion they had about insurance and around 29
percent of the respondents reported insurance as payout which is received by the family
after the death of the insured. Another 24 percent were of the opinion that insurance returns
the money after the duration for which the insurance is held, and a similar percentage
reported money back in case of the sudden death of the insured person_
Table 3.1: Awareness and Perception regarding "BIMA" (insurance)
Item
Percent
Ever hear of insurance (BIMA)
Yes
37.9
No
62.1
Total
2662
Understanding about insurance

Payout received by the family after death of the insured
Money back after complete duration of insurance
Money back at sudden death of insured person
Insurance provides more money when required
Have heard about insurance but don't know what i t i s
Money return w i t h interest when premium paid
No response
Insurance for health, refund of cost of drugs during illness
Provide compensation if something bad happens
Insurance makes life easier
28.9
24.4
24.3
8.4
2.8
2.0
1.7
1.6
1.6
1.1
Total
1010
3.2 Awareness about insurance

It is widely believed that there exists a vast potential in the rural areas for insurance
products and services. However, insurance as not been able to make inroads in the rural
areas because of key reasons such as high cost of delivery and low awareness among the
rural population about insurance products.
Figure 3.1: Awareness and Perception regarding "BIMA"
In a bid to further understand the awareness and perception on insurance, the study probed
respondents about insurance products and similarity to other prevalent products. As can be
seen from the table, only around thirty two percent reported that insurance is the amount
one pays to get some compensation if something bad happens. Around thirty one percent
believed that insurance is similar to monthly thrift/savings.
The perception of respondents clearly highlights that respondent's perception towards
insurance and savings and their understanding of the benefits of these products are still
nascent.
_
Table 3.2: Perception about Insurance
Item
Believe that insurance is similar to monthly thrift/savings
Yes
No
Don't know
Think Insurance is an amount you pay to get some compensation if
something bad happens Yes
No
Don't know
Percent
30.5
20.2
49.2
31.9
18.2
49.9
2662
3.3 Awareness about types of insurance products
The study makes an attempt to analyze the awareness levels of the different types of
insurance and as can be seen from the findings awareness for Life insurance (38.3%), is by
far the highest, f ollowed by vehicle insurance (15%) and property insurance (10%). The
study also showed the awareness level to be the lowest in respect of health insurance.
3.4 Knowledge and familiarization about formal and informal social security
mechanism
The study also tried to ascertain the familiarization of respondents with the various kind of
formal and informal social security mechanisms. The majority- of the respondents were
aware about some kind of insurance wherein payout is received by family after the death of
the insured. Around thirteen percent of respondents also confirmed that they are aware of
the community collecting money from people and redistributing during need. Respondents
also reported that they are aware that emergency funds can be borrowed from SHG.
The study makes an attempt to explore the usage of formal and informal social security
mechanisms Only three percent of the household confirmed that they borrowed some kind
of emergency funds from a self-help group.
3.5 Health Insurance

Health insurance is an instrument wherein `an individual or group purchase health care
coverage in advance by paying a fee called premium.' In other words, it's an instrument
which helps to defer, delay, reduce or altogether avoid payment for health care incurred by
individuals and households. The insurance remains in force only for an agreed period in
return for the purchaser paying an agreed premium. Policies can cover only the policy
holder or the policy holder and immediate family members. The particular hospitals and
medical services covered are clearly defined in the insurance policy.
Respondents were probed about awareness about various probable social security/health
insurance schemes currently being offered Around forty eight percent of the respondents
were aware of Janani Suraksha Yojna. The awareness of other schemes such as Jana
Raksha Scheme, Aarogya Raksha and Aarogya Bhagya scheme was found to be very low.
An attempt was also made to see whether a household has ever availed of benefits of such
schemes. Findings clearly indicate usage to be negligible, in line with awareness level which
was found to be very low.
Aarogya Raksha
0.1
99.9
Aarogya Bhagya
Other health insurance scheme
0.1
0:8
99.9
99.2
,
0.1
0.0
0.0
0.7
99.9
100
100
99.3
Household or anyone in household a member of

Jana Raksha Scheme (Univ. Health Insurance)
Raksha
, Aarogya
Aarogya Bhagya
Other health insurance scheme
Used services or benefits available as part of

0.5
99.5
health insurance during the last year
3.6 Willingness to pay
Secondary data on micro-insurance has established the need of flexibility in terms' of
premium amount, collection and mode of payment. In particular, the premium collection
schedule should match with the cash flows. The cash flow varies for different categories of
occupation groups in the village populace. For example, the cash flows in case of farmers
would depend on the number of crop cycles in a year as well as on the timings of harvest,
whereas for wage laborer it depends on the working and lean season..
The study made an attempt to explore the amount the community is willing to pay as
premium for a policy which covers health expenditure up to Rs. 75,000 per year_ Findings
reveal that fifty six percent of the respondent said that they are willing to pay a premium of
Rs. 100-250 a year and another 23 percent reported a premium of Rs. 250-500 a year_
Table 3.6: Willingness to pay - Amount & Periodicity of Premium
Item
Percent
Amount willing to pay for scheme
Rs 1500 or more a year
2.9
Rs 1000-1500 a year
3.4
Rs 500-1000 a year
8.2
Rs.250-500 a year
22.6
Rs.100-250 a year
56.0
Cannot pay anything
6.9
Choice of instalments to pay the premium
Monthly
Three monthly
Half yearly
Once a year
5.8
11.0
41.9
41.4
Numebr of households
2662
- - - - - -When probed about the choice of timing of instalment to pay the premium, around 42
percent reported half year cycle as preferred mode of premium and similar percentage
reported a yearly cycle.
Figure 3.4: Willingness to pay - Periodicity of Premium
Monthly, 5.8
Once a year,
41.4
Thus, flexibility in premium collection needs to be appropriate from the viewpoint of both the
insurer and the insured and it can help in extending the micro-insurance net far and wide.
Figure 3.5: Willingness to pay - Amount of Premium (in Rs.)
Rs 1500 or Rs 1000-1500
Rs 500-1000 a
Rs.250-500 a
Rs.100-250 a
Cannot pay
more a year a year
year.
year
year
anything
Table 3.7: Insurance Products - Preferred Features
Insurance services
Percent
Primary care (for normal cold cough fever etc)
Want included in insurance
26.0
Would be willing to pay
74.0
Hospital (large) expenses
85.7
14.3
Maternal care & delivery

( 53.9
46.1
3.8 Preferences for Payment of Premium

It's not only the amount and timing of premium payment but also the place of payment which
is key determinant in determining the success of any insurance policy. Bank (39%), Post
office (27%) and insurance agent (23%) were termed as most convenient places to deposit
the premium.
Besides being convenient places to deposit premium, Bank (40%), Post office (28l) and
insurance agent (22%) were also featured as the most trusted places for depositing
premium payments.
Chapter IV
Morbidity
In a country where only about 3 per cent of the population has health insurance, most
Indians must pay the vast majority of their health care costs out of pocket. This burden is
particularly high for those who are poor and prone to ill health. This chapter explores the
morbidity pattern at the household level, and tries to map the access, availability and
affordability of the health care facilities and the burden of morbidity at the household level.
4.1 Illness without Hospitalization
One of the key objectives of the study is to understand the morbidity pattern at the
household level and to map the availability, accessibility and affordability of the health care
facilities. In order to assess the household morbidity pattern responses were sought about
the any illness in last two month at household level. Findings reveal that as many as 89
percent of the HH surveyed were affected by illnesses in the 2 months preceding the survey.
Further in a HH the average number of members suffering from illness was observed to be
1.76 i.e. in a household on an average around two members were suffering from illness.
Household/Members with illness
Total number of households showing illness
Total number of persons showing illness
Weighted
Unweighted
2379
4188
2342
4139

Morbidity Pattern
In order to ascertain the morbidity pattern, the study probed about the type of illness at the
household level. As can be seen from the data, cold/fever accounted for the 57 percent of
the morbidity at the household level, followed by cold/cough (10%) and stomach ache (6l0).
Table 4.1: Morbidity pattern in last 2 months
Disease
Percent
Cold/fever
56.8
Cold/cough
9.7
Others
7.2
Stomach ache/ other related problem
5.7
Cholera
4.0
Wound/ boils
3.8
Malaria
2.6
Typhoid
1.7
Headache
1.7
Diarrhoea
1.4
Pneumonia
1.2
Body ache/ backache
1.0
Gastric problem/ acidity
0.9
Breathing problem
0.8
The study also made an attempt to ascertain the severity of disease. In around fifty five percent of the
cases, the disease was perceived as not serious and only in around forty percent of the cases was it
termed as serious.
4.1.2 Treatment Preferences

In order to map the availability, accessibility and affordability of health care facilities, an attempt was
made to map the type of health care facility the household has visited for treatment of illness. In about
forty six percent of the cases, treatment was sought from an unqualified doctor. Drug store (18%) and
Private Doctor-MBBS (14%) were other key facilities visited for treatment of illness.
Further analysis was carried out to identify the type of doctor/ facility visited with respect to the most
frequently mentioned illnesses. It can be seen from the table below that for illnesses like cold fever,
stomach related problems, wounds, cold/cough, malaria and cholera, unqualified doctors/ quacks are
mostly preferred.
Amongst the rural populace a common practice is to self treat using traditional means or local
herbs/booti. The survey showed that in 13 percent of the cases self treatment was used for the illness.
In order to further probe the preference for a health facility, the respondents were asked whether they
would have preferred to go to some other facility but couldn't go due to some reasons. Analysis clearly
showed that they had gone for facilitythat they desired as in only five percent of the cases did they
suggest that they would have preferred some other other facility.
One of the key objectives of the study is to examine the financial burden of treatment on the household
and mode of payment. Findings reveal that in the majority of the cases the household paid from its own
money and only in around ten percent of the cases did the household report borrowing from a friend to
pay for the illness.
Support from friends and relatives
2.2
Sold Jewellery, belongings and goods

Did not have to pay
0.4
2.5
.
Number of sick persons

4188
The study further probed about the risk for not seeking care, it can be seen from the table
that this happened in about forty five percent of the cases as the households did not have
the money for treatment. Non-availability of doctor/health facility was also cited as one of
the key reasons.
Table 4.7: Reason for not seeking care
Could not get away due to work
Did not have money
No doctor/health facility nearby
Was not serious
Others
1.0
45.2
11.3
41.2
8.8
123
4.2 Illness with Hospitalization

Illness with hospitalization results in a serious burden both in terms of cost and also in
opportunity lost due to work. One of the key objectives of the study is to understand the
morbidity pattern at the household level and to map the availability, accessibility and
affordability of the health care facilities.
In order to assess the morbidity pattern due to illness with hospitalization at household
level, responses were sought about any hospitalized case during last one year at the
household ' level. Findings reveal that on an average around nine percent of the HH
surveyed were affected by morbidity due to illness/injury with hospitalization.
Household/Members hospitalized during last one year Weighted
Unweighted
Total number of households showing hospitalization

Total number of persons hospitalized
1010
1067
227
240

In order to ascertain the morbidity pattern due to illness with hospitalization, the study
probed about hospitalization at the household level. As can be seen from the data, in around
sixteen percent of the cases households reported that a member was hospitalized for
delivery. Japanese Encephalitis, Cholera (6 ! each), Ulcer and stone operation (5% each)
account for the major illnesses treated with hospitalization at the household level:
Table 4.8: Morbidity pattern due to illness with hospitalisation
Defiv&ry
16.4
Others
Japanese Encephalitis
Cholera
Ulcer
Stone operation
Stomach ache
Tuberculosis
Fractured leg
Head wound
Eye operation
Jaundice
Fractured hand
Dehydration
Pneumonia
Asthma
Minor wounds
Hydrocil operation
Urinary operation
Heart attack
High blood pressure
Malaria
Body ache
16.3
6.2
5.9 .
5.2
4.9
4.7
4.6
3.9
3.7
3.3
2.9
2.8
2.7
2.7 2.4
2.3
1.9
1.7
1.6
1.6
1.1
1.1
Number of hospitalized cases

240
The study also tried to ascertain the extent of the severity of the disease for which the
household member has to be hospitalized. In around fifty six -percent of the cases the disease
was perceived as quite serious and further in around thirty eight percent of the cases the
disease was perceived as very serious.
Extent of severity of disease
Not serious
Quite serious
Very serious
Percent
6.5
56.2
37.5

240
In order to map the availability, accessibility and affordability of health care facilities, an
attempt was made to map the type of health care facilities the household has been referred to
for hospitalization. In around one-third of the cases, respondents were admitted to district
government hospital/CHC followed by private nursing homes. Government medical college
(18%) and Government PHC/Sub centre (14%) were other facilities referred for
hospitalization.
Type of facility visited with respect to most frequently occuring illness is indicated in the table below. The
findings indicate that majority of the delivery cases visited district government hospital/ CHC (33%),
followed by private nursing home (29%) and government PHC or sub centre (25%). Similarly for other
illnesses government health facilities are the most frequently visited.
.
Number of
Weighted
39
Is
14
13
12
11
hospitalized
Un-weighted
cases
The study also made an attempt to analyze whether patients have tried consulting another
facility, for a second opinion or whether they have been referred to some other health facility.
In more than three-fourths of the cases, the household didn't consult any other facility. Only in
5-6 percent of cases, Private practioners (MBBS) and Private practioners (Ayurvedic) were
consulted for a second opinion.
The majority of the individuals suffereing from the most frequently mentioned illnesses have
not opted for any alternate facility for treatment. Some have visited either a government health
facility or a private practitioner-MBBS.
t
a
11
Unani
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Drug store/ pharmacy

Other
0.0
0.0
0.0
6.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Number of
Weighted
39
15
14
13
12
11
11
hospitalized
cases
Un-weighted
In order to further probe the preference about a health facility, the study asked whether they
would have preferred to go to any other facility but could not do so due to some reason.
Analysis clearly showed that they had gone for facility they desired as only in eight percent
suggested that they would have preferred some other facility.
Table 4.14: Preference for other health facility visited
Want to be admitted to other facility
Percent
Yes
7.9
92.1
240 (Weighted)
Total
1067 (Unweighted)
Other preferred facility
Government PHC or sub centre
3.3
District government hospital/ CHC
19.9
Government medical college hospital or
40.2
similar tertiary care facility
Private nursing home
20.9
Private hospital (large hospital such as
10.2
medical college hospital)
Other (Ayurvedic/ homeopathic hospital)
5.6
19 (Weighted)
74 (Unweighted)
One of the key objectives of the study is to examine the financial burden of treatment on
household and the mode of payment. In contrast to outpatient treatment of illnesses, in the
case of hospitalization in around forty two percent of the cases the household reported
borrowing from a friend to pay for the treatment. Further in around twenty percent of the
cases, the household has to borrow money from a moneylender to meet the hospitalization
expense.
Means of payment for treatment
Own money
Borrowed money from employer
Borrowed money from money lender
Borrowed money from friends & relatives
Support from friends & relatives
Sold jewellery, belongings or goods
Sold property (land, house)
Percent
49.2
5.1
19.6
41.8
2.6
3.5
1.9
The following table shows that in a majority of the cases payment for the tratment of illness has been
made from own money, followed by money borrowed from friends & relatives.
4.3 Chronic Illness
In order to assess the morbidity pattern due to chronic illness in the

household, responses were
sought about any chronic illness being diagnosed during last one year at the household level. Findings
reveal that as many as 29I of the HH surveyed were affected by chronic illnesses.

In order to ascertain the morbidity pattern due to chronic illness, the study probed about the chronic
illnesses at the household level. As can be seen from the data, in around 17I of the cases a household
member suffered from arthritis and in 11 % of the cases members reported suffering from chronic
asthma. In addition to this other kind of chronic illnesses like gastric problem (7%), breathing trouble
(6%), piles (5%), liver problem (3:5%) are frequently mentioned in the `others' category.
The study also made an attempt to find out whether household members have sought any
treatment for the chronic illness. As can be seen from the data, almost three-fourths of the
household members are seeking treatment for chronic illness and rest who are not taking
any treatment cited non-availability and affordability as the key reasons.
Figure 4.4: Reasons for not taking treatment

Too inconvenient,
The following table reveals that all individuals suffering from chronic arthritis, diabetes, and
cataract are availing of treatment for these chronic diseases.
Table 4.19: Treatment vis-a-vis type of chronic illness
Name of the chronic 'illness

In order to ascertain accessibility and availability of the treatment facility, the study probed
about the nearest health facility available for treatment. Government PHC or Sub centre was
reported as the nearest health facility in around 47 percent of the cases. District Hospital
was reported as the nearest health facility in around 18 percent of the cases.
Table 4.20: Nearest Health Facility for treatment of chronic
illness
Nearest Health Facility for treatment
Percent
of chronic illness
Government PHC or Sub Centre
47.1
District Government Hospital
18.2
Government Medical College
1.9
Private Nursing Home
7.5
Private Hospital
9.7
Ayurvedic Hospital
3.3
Others
12.4
Total
786 (Weighted)
816 (Unweighted)
The Government PHC or Sub centre was reported as the nearest health facility in around 47
percent of the cases and average distance was reported as 6km signifying that in a11
probability in almost half the cases, one has to travel a minimum of six km to avail of a
health facility for treatment. The average distance for second most nearest health facility i.e.
District government hospital was observed to be around 16 km
4.4 Opinion about Evening OPD Services

In order to gauge the interest in having an evening OPD facility the study probed
households about the need and willingness to pay for OPD services. Almost all the
respondents reported the need for having an evening OPD service and around three fifths
were also in agreement that an extra charge couldl be levied for such a service
Around 23 percent of the respondents reported that Rs. 2 should be levied as the evening
OPD charge, another 22 percent reported amount of Rs. 5. A significant proportion also mentioned Rs. 10 (25%) and Rs. 20 or more (18%) as evening OPD charge.
Chapter V
Social Capital
One of the key objectives of the study is to examine the associations of various dimensions
of social capital with each other and with contextual and individual determinants.The study
tried to ascertain the status of social capital by deconstructing the perception respondents
have about trust.
5.1 Groups and Networks
The study probed about the association of individuals/ households with groups or
organizations which could be formally organized or non-formally organized. It is found that
only three percent of the total interviewed households/ individuals have any association with
groups or networks. The analysis shows that there are certain kind of similariies within the
groups pertaining to gender (71%), religion (61%), occupation (42l), caste (26%) and
educational background (15%).
5.2 Trust and Solidarity

On analyzing opinions on trust and solidarity around 66% of the respondents stated that one
has to be careful while dealing with people, thereby highlighting the status of trust between
community members_ When asked about the helpful attitude of neighbours, nearly threefourths (75%) of the respondents were in complete agreement with the fact that most people
in the neighbourhood are willing to help in need. Further when probed about the trust,
around 69 percent of the respondents completely agreed that in the village one has to be
alert otherwise someone else can take advantage of the situation.
Trust in Institutions
Increasing evidence shows that social cohesion is critical for societies to prosper
economically and for development to be sustainable. Social capital is not just the sum of the
institutions, which underpin a society - it is the glue that holds them together.
When we talk of forma! institutions, Panchayat Raj Institutions (PRI)' is one such institution,
which can make an immense contribution in lending voice to poor and disadvantaged
people. Further, PRl, which have been the basic conduit for funds for rural development and
rural poverty alleviation, should have served as ideal platform for the participation of the
poor.
The present study tries to ascertain the trust community members have in institutions.
Around 61% of the community members showed strong trust in Panchayati Raj officials
while nearly 65% of the respondents confirmed strong trust in local ZP/State government
officials. More than three fourths (76%) of the survey respondents have shown complete
faith in central government officials thus highlighting the perception about and extent of
social capital invested in the central government employees.
Decentralisation process was given a boost by the 73rd and 74th Amendments to the Constitution in 1992
Strongly Disagree
7.5
Local ZP/State Government Officials

Strongly Agree
Somewhat Agree
Neither Agree nor Disagree
Somewhat Disagree
Strongly Disagree
65.0
24.'I
5.6
1.4
3.9
Central Government Officials

Strongly Agree
Somewhat Agree
Neither Agree nor Disagree
Somewhat Disagree
Strongly Disagree
76.0
14.7
5.5
0.7
3.1
Total
2662
5.3 Collective Action and Cooperation
Collective group action is one step that can help millions to work in cohesive manner to
solve problems at the local level. In order to gauge the status of collective group action and
community participation, respondents were probed about their participation in any
community activity in the last 12 months. As can be seen from the data below, only 21
percent of the survey respondents confirmed their involvement in any community activity.
However, in the majority of the cases the participation was limited to only one or two
instances.
In order to probe further about the level of likely cooperation, respondents were questioned
about a situation such as water supply, or some other problem affecting the whole
community. In response to the given situation 46% of the respondents mentioned that that it
is `very likely' that community people will get together and cooperate to solve the problem.
On the other hand nearly 31 percent respondents said it was `somewhat likely'.
Table 5.4: Community participation and coo eration

Item
Participated in an community activity in last 12 months
Yes
No
Percent
Total
2662
Number of times participated

1
2
3
4
5+
35.6
43.5
10.6
4.3
6.0
Total
545
20.5
79.5
Figure 5.1: Community cooperation to solve the problem
When respondents were asked that if a community project does not benefit them directly
would they be willing to contribute their time and money to that project, almost 70% of the
survey respondents responded in the affirmative with regard to spending time, while nearly
40 percent showed their willingness to contribute in terms of money.
5.4 Information and Communication

Relatives, friends and neighbours are found to be the main source of information about
health insurance (71%) followed by local markets and the radio around 54 percent each.
5.5 Social Cohesion and Inclusion

The study also tries to determine the effect of differences in terms of societal parameters or
economic wealth existing within the village or neighbourhood. As reported by nearly 27 percent of the
respondents the effect of these differences in the village or neighbourhood were very small, and 23
percent said that the effect was small.. However, nearly 17 percent and 12 percent of the
respondents felt that social and economic differences within the village or neighbourhood affects to a
`very great extent' and to a `great extent', respectively. On the other hand almost 20 percent of the
survey respondents mentioned absence of any such societal differences in or around the villages.
Table 5.7: Existence of social or economic differences

Existence of differences
To a very great extent
To a great extent
Neither great nor small extent
To a small extent
To a very small extent
Percent :
12.4
17.5
20.4
23.1
26.6
Chapter VI
Further Analysis on Understanding / knowledge of health

insurance, willingness to pay and health seeking behaviour
In order to examine the relationship of the background characteristics (social caste groups,
education of head of households, and standard of living) versus awareness and knowledge of
health insurance; availability of health insurance cover; willingness to pay for health
insurance; health seeking behaviour, amount of money spent for healthcare, etc., crosstabulations of select variables were generated (See Annexure-2).
Background characteristics Vs understanding/knowledge of health insurance
The understanding about insurance as `payout received by family after death of the insured'
was almost negligible among households in low and medium SLI category, while this
percentage was slightly higher (7.4%) among the households in high SLI. As the literacy of
the head of the household increases, understanding about insurance also increased from 2%
among illiterates as compared 11% among households whose heads had higher secondary
education or above. When we tried to see how the understanding about insurance was among
different social cast / groups, it was very minimal (3-8%) across social groups.
A minute proportion of households in !ow and medium SLI and one-tenth of high SLI category
knew about availability of health insurance products. It was interesting to note that knowledge
about availability of health insurance products was better (21.2%) among households whose
heads had secondary education or above. A small percentage (4-5I) of households
belonging to SC, ST and OBC category and nearly one-tenth of the general category had
knowledge about health insurance products.
Higher percentage (54.1 %) of the respondents belonging to high- SLI category said that they
heard about health insurance products like Arogya Raksha, Arogya Bhagya, etc. compared to
their counterparts in low and medium SLI (44-46%). Percentage of respondents heard about
health insurance products was lower among households whose heads had secondary
education or more and this percentage increased as education of heads of households
increased. When we tried to see whether any member(s) of households covered by health
insurance product, a very negligible percentage of respondents across different SLI, caste
groups education levels of households was enrolled in one or the other health insurance
scheme.
Background characteristics Vs choice of health insurance product
Given a choice between insurance schemes with large coverage with a premium of Rs 200/and complete coverage with a premium of Rs. 300/-, a vast majority of the respondents in
different SLt, education levels of households and social caste/tribe preferred to have a
complete cover with a premium of Rs 300/-.
When asked to give th6ir preference to have either individual policy or family/ household
floater policy, almost all respondents from households in different SLI categories,- literacy
levels, social castes preferred to have family/household floater policy. A very high percentage
of respondents across all SLI categories, literacy levels and castes preferred to have high cost
health insurance with partial money back policy to low cost normal health insurance.
Background characteristics Vs willingness to pay

In order to assess the willingness to pay for health insurance, information was collected to
know how much premium they would like to pay. Only 7% respondents were not willing to pay
any premium for health insurance. Among those who preferred not-to pay any premium,
majority belonged to either lower/medium SLI or households with lower education levels or
scheduled caste. Majority of respondents in lower socio-economic strata expressed their
willingness to pay Rs. 100-249 towards premium, while a substantial percentage of
respondents belonging higher SLI, secondary education or above were willing to pay a
premium of Rs. 250 or more.
Majority of respondents wanted to have a half-yearly or yearly installments for health
insurance premium irrespective of the social caste/tribe, literacy of heads of households or
SLI.
Background characteristics Vs Health status I Illness episodes
More than half of households (54.1%) reported that at least one member in the HH suffered
from an episode of illness in the last two months belonged to other backward castes (OBC),
while more than one-fourth and nearly two-fifths HHs, whose members suffered from illness
were general and SC/ST categories respectively.
About 50% hospitalizations were among persons from OBC and a little less than a third from
general category and one in every six persons hospitalized belonged to SC/ST. More or less
the similar pattern was observed in case of persons suffering from chronic illnesses.
The prevalence of illness episode leading to out-patient care (61.0%), hospitalizations (55.1%)
and chronic illness (56_9%) was higher among HHs whose heads of household were illiterate.
However, a small percentage of households whose members fell sick reported that their
heads of HH had a minimum of higher secondary education or above.
Background Characteristics Vs Health seeking behaviour
In order to understand the health seeking behaviour of the respondents and to assess cost of
availing out-patient care, information was collected on health facilities visited for seeking care,
money spent on hospital/health center fee, consultation, lab investigations, medicines and
travel.
On the whole, two-thirds of the respondents visited public health facilities for in-patient care
while the remaining visited private health facilities/providers. Majority of the respondents (6070%) across different castes/tribes availed in-patient care from government health facilities
followed by 29-38% from private health facilities. The same trend was observed across
different education (of the heads of households) and SLI categories.
Since there was lot of variation in the amount of money spent on different aspects, the median
cost of care incurred for the last episode of illness (in-patient) was preferred to have a
meaningful estimate_ The median cost of availing in-patient care was worked out to be Rs.
52811- for the last 6pisode of hospitalization. When analysed the cost incurred for in-patient
care versus background characteristics, it was found that the median cost of care was found
to be Rs_ 305E/- among respondents belonging to SC/ST, while this was higher for OBC
(Rs.57241-) and general castes (Rs. 6247/-). It is interesting to note that respondents in the
lower Sl.l category incurred more (Rs. 6429/-) compared to their counterparts in .medium
(Rs.4754/-) and high SLI categories (Rs. 6103/-).
Irrespective of the social caste / tribe, more than two-thirds of the respondents said that they
either borrowed money or received support from relatives to pay for inpatient care. Nearly
one-tenth of the SC/ST respondents and 5l belonging to OBC and general category sold
household assets as they had to pay for inpatient care.
,
Majority of the respondents from households whose heads of households were illiterate or had
primary / secondary education, either borrowed money or availed relatives support in
mobilizing money for paying the (in-patient) healthcare expenses incurred during the last
episode of illness. However, less than half of the respondents hailing from households whose
head had higher secondary education or above did borrow money to pay for inpatient care.
One-third of the respondents from low SL1 category had own money to meet in-patient
healthcare costs and this percentage had increased in case of respondents from medium and
high SLt categories. Higher percentage of respondents in !ow and medium SLI categories
borrowed money to pay for in-patient care compared to their counterparts in high SLI
category. This indicates the strong need for introducing financial protection scheme covering
the healthcare costs.
Sizeable proportion (46.3%) of respondents availed out-patient care from unqualified doctors
followed private qualified health providers (2'1 %). More or less an equal percentage (17%) of
respondents sought treatment either from government health facilities or from pharmacy / drug
store.
Across all social castes/tribes, about 80-87% respondents paid for availing out-patient care
from their own savings/money, while the rest had either borrowed money or sold household
assets for meeting healthcare expenses. Irrespective of the level of education of the head of
the households, majority of the respondents had their own money to pay for out-patient care.
However, nearly one-sixth of the illiterates and those with primary education had borrowed
money for availing out-patient care and this percentage is -lower (10.9%) for respondents with
higher secondary education and above. More than one-fifth of the respondents (22.3%) in low
SLI category borrowed money to pay for health care cost and this percentage was decreased
as we move to medium and high SLI categories.
A N N EXUCRE 1
FACT SHEET
Socio-Economic Profile
Total number of completed households - 2662
69.4I of the surveyed respondents are Hindus and 30.2% are Muslims
53.4l0 of the respondents belong to OBC and 26.6% are from genera! category
Only 19.1% of the respondents are scheduled caste while 0.9% are scheduled tribe
91 % of the interviewed respondents own house
58.6% of the respondents are residing in Kuccha house whereas 39.4l0 of the
respondents have Semi-Pucca house
Hand pump inside the house is the main source of bathing (66.7l0) and drinking water
(66.2%)
Only 3.7% and 2.4% of the respondents have their own flush toilet and pit toilet,
respectively white a majority i.e. 92.8l of respondents do not have access to toilet
facility
Kerosene is used by 95.6% of respondents as main source of lighting
Firewood is most commonly used fuel for cooking by 88.1 % of the respondents
Only 18.9% of respondents have a separate kitchen while 81.1% do not have separate
kitchen in household
Majority of the households possesses household assets like cot/bed (97.7%), followed by
bicycle (73.4%), mattresses (62.9%) and clock/watch (55.9)
77.2% of the households own agricultural land
Majority i.e. 43_6% own less than i acre of land
76_7% of the households own livestock among which Milch Cattle (cow & buffalo) is
most commonly owned (72.6%)
Agriculture is the primary source of income (for 43.8%) as well as secondary source of
income (for 29.3%) of the households followed by non-farm wage labour
Income, Expenditure and Debt Pattern
Average monthly household income is Rs 2,827 and monthly per capita income (MPC!) is
579.4
Average monthly household expenditure is Rs 2,229 and monthly per capita expenditure
(MPCE) is 456.76
Monthly expenditure on food is 57% of the total expenditure
Among non-food items, medical expenses form 8.4 % of total expenditure, educational
expenses constituted 3.6% of total consumer expenditure, travelling expenses
constituted 6.1%, white recreation (including alcohol and tobacco) formed around 3.9%
of the total expenditure
70% of the households have ownership of ration card.
Majority i_e. 41.9% of the households own white ration card while 33.3% have Pink/Red
ration card
29.5% of the respondents have savings account in the household *out of which
majority i_e. 93.1 % have their account in the bank
40.6% households are under debt, 33_7% of the households have borrowed money for
health expenditures while 27.1 % have taken money to meet their living expenses
Need, Awareness and Preference of Health Insurance

37.9% of the respondents have ever heard of 4BiMA" and have seen someone buying or
taking any kind of insurance
Around 28.9% of the respondents understand insurance as payput which is received by the
family after the death of the insured
Majority of the respondents are aware about life insurance (38.3%) followed by vehicle
insurance (15.4%) and property insurance (10.4%)
56% of the respondents are willing to pay a premium of Rs.100-250 a year and another 23%
can pay a premium of Rs. 250-500 a year
41.9% respondents preferred half year cycle mode of premium while a similar"
percentage of respondents (41.4%) are found to be comfortable with annual payment
cycle
91% of the respondents preferred health insurance with partial money back even though if it is
at higher cost over normal health policy at lower cost
90.2% respondents prefer a policy of Rs. 300 that covers all expenses than a Rs. 200 policy
which covers only big expenses
To deposit the premium Bank (39.2%), Post office (26.7%) and Insurance agent (22.7%) are
mentioned as most convenient places
Besides being the convenient place to deposit premium, Bank (40%), Post office
(27.5%) and Insurance agent (21.6%) are also the most trusted for depositing
payment of premium
Morbidity Trend
Household members in 89% of the surveyed households are affected by morbidity

Members in the majority of the households (56.8%) are suffering from cold/fever as
well as cold/cough (10%) and stomach ache (6l0)
In the majority of the cases (45.6%) treatment is taken from an unqualified doctor.
However, Drug store (18%) and Private Doctor-MBBS (14%) are also visited for
treatment
Only 5% of the respondents would have preferred to visit any other facility but couldn't
go due to reasons like distance or money
In 85.3l0 of cases households paid the expenses of treatment from their own money
while in 9.8% of cases the household borrowed money from friends to pay for the
treatment
Morbidity due to Injury with Hospitalisation
In 16.4% of the cases household members are hospitalized for delivery. Japanese
Encephalitis (6.2%), Cholera (5.9%), Ulcer (5.2%) and stone operation (4.9%)
account for other major reasons for hospitalization at the household level
Regarding treatment seeking behaviour, in 33.4l of cases respondents are admitted

to district government hospital/CHC, followed by private nursing home (21.7%).
Government medical college (17.9%) and Government PHClSub centre (14%) were
other facilities referred for hospitalization
In 75.3% of the cases the household didn't consult any other facility. Only in 5-6
percent of cases, Private practioners (MBBS) and Private practioners (Ayurvedic) were
consulted for a second opinion
Morbidity due to chronic illness

Government PHC or Sub centre is reported as the nearest health facility in 47% of the
cases and the average distance to reach it is 6km. On the other hand District Hospital
was reported as the nearest health facility in 18% qf the cases and the average
distance was 16km
Social Capital: Construct and Dimension
66.6% of the respondents are of the view that one has to be careful while dealing with
people, thereby highlighting the status of trust between community members
Regarding helpful attitude of neighbours, 75.3% of the respondents completely agree
that most people in the neighborhood are willing to help in need
61% of the community members show strong trust in Panchayati Raj officials while 65%
of the respondents revealed great trust on local ZP/State government officials. _ Only
21% of the survey respondents have participated in any community activity in the last 12
months
30.3lo and 60.5% of respondents mentioned that if a community project does not benefit
them directly they will not contribute their time and money, respectively, for the project
Relatives, friends and neighbours have emerged as the main source of information
about health insurance (in 71% of cases) followed by local markets (54%)
26.6% of the respondents revealed that social and economic differences within the
community create problems within the village or in the neighbourhood to a `very small
extent', while 23.1% of the respondents labeled it to a `small extent'
According to 64% of the respondents, most of the time the differences in landholding
pattern is the cause of troubles within the community, followed by differences in wealth/
material possessions (59%)_
ANNEXURE3
Household Survey schedule
Health Insurance Needs, Awareness and Preferences Survey
INDIVIDUAL CONSENT FORM
(To be read aloud by interviewer if participant unable to read this form).
Dear Participant,
and I am here on behalf of the
to help the
Hello, my name is
U.P. Health Systems Development Project. We are conducting a survey to learn about the
health and experiences of households such as yours to enable the UPHSDP to develop an
insurance system that would address your needs and preferences. You have been chosen to
participate in the study.
This survey is currently taking place in Bahraich districts in Uttar Pradesh. The interview will
take approximately 20 minutes. I will ask you questions about:
Details about members of your household
Household expenditures on health and other items, and your views on insurance
The information you provide will only be used to understand the main things that affect
households such as yours when faced with difficult circumstances. The information you provide
is totally confidential and will not be disclosed to anyone. It will only be used for research
purposes and to help the UPHSDP with its efforts to develop a health insurance scheme in your
district_ Your name, address, and other personal information will be removed from the
questionnaire, and only a code will be used to connect your name and your answers without
identifying you. The survey team may contact you again only if it is necessary to complete the
information at a later point in time. You can also stop the interview at any time i f you wish, or
skip any questions that you don't want to answer. There are no right or wrong answers. We only
want to know what your experiences with health care and your opinions are. Your participation
is completely voluntary but telling about your experiences as part of this survey could be very
helpful to the State department's efforts to develop solutions to improve the health system in
your state.
If you have any questions about this survey you may ask me or contact (name of institution and
contact details).
Signing this consent indicates that you understand what will be expected of you and are willing
to participate in this survey.
Read by Respondent ...................... [
]
Read by Interviewer ..................... [
]
Agreed and Signed ..................... [
]
Refused ..................... [
Respondent:
Interviewer:
Date:

Consumer Behaviour Towards Health Insurance With Special Reference To Up

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Health Insurance Needs, Awareness and Assessment in the

Bahraich District, Uttar Pradesh

For further information contact:

Health Insurance Needs, Awareness and Assessment in the

Chapter 2: Household Characteristics ................................................................

Chapter 3: Health Insurance .............................................................................

3.6 Willingness to pay

Chapter 4: Morbidity ............................................ ....... ............................

Chapter 5: Social Capital ............................................................................

Chapter 6: Further Analysis on Health Insurance and Health Seeking Behaviour

Annexure I - Fact Sheet .............................................................................

Below Poverty Line

Community Health Center HH Household

Monthly per capita income

Other Backward Caste

Primary Health Center

Panchayati Raj Institution

Uttar Pradesh Health Systems Development Project

Table 2.1: Socio-demographic profile of respondents

Table 4.22: Opinion about evening OPD services

Figure 4.4: Reasons for not taking treatment

Background and Research Methodology

1.3.2 Study techniques

1.6 Field Work: Quality Control Mechanism

Spot check and observation

1.7 Data Processing and Data Entry

Table 2.1: Socio-demographic profile of households

2.1.1 Type of Dwelling

Figure 2.2: Type of dwelling

Main source of bathing water

Main source of drinking water

Kind of toilet facility

Main source of lighting

Separate room for kitchen

Type of fuel used for cooking

Table 2.3. Access to

Figure 2.3: Basic household amenities

Public Hand Well water in

2.1.4 Ownership of Agricultural Land and Livestock

1-5 Acre, 29.0

A significant proportion of the rural populace is dependent on livestock for a supplementary

2.2. Occupation/Main Source of Income

Figure 2.6: Main source of income

Agriculture (own Agriculture (wage

2.3 Incomes and Expenditures

Construction of Standard of Living Index (SLI):

2.3.2 Expenditure Pattern

2.3.2.1 Ownership of Rotation card

2.4 Savings and Debts

Reasons to borrow money

Understanding about insurance

3.2 Awareness about insurance

3.5 Health Insurance

Household or anyone in household a member of

Used services or benefits available as part of

Maternal care & delivery

3.8 Preferences for Payment of Premium

4.1.1 Types of Illnesses

4.1.2 Treatment Preferences

Support from friends and relatives

Sold Jewellery, belongings and goods

Number of sick persons

4.2 Illness with Hospitalization