COMPARATIVE

ANALYSIS OF
INSURANCE POLICIES
OF APOLLO MUNICH

PURVI VAISH

022161708

BBA Vth SEM.

Ansal Institute of Technology

(Guru Gobind Singh Indra Prastha University)

 CERTIFICATE

This is to certify that the project titled “Comparative Analysis of the Health
Insurance Policies of Apollo Munich” submitted by Purvi Vaish (022161708)
of BBA (Vth Sem.) of Ansal Institute of Technology affiliated to GGSIP
University, Delhi is original and authentic. This has been carried under my
supervision and guidance.

Supervisor
 EVALUATION OF THE PROJECT

This is to certify that the project “Comparative Analysis of the Health

Insurance Policies of Apollo Munich” submitted by Purvi Vaish (0221061708)
of BBA, Semester Vth of Ansal Institute of Technology affiliated to GGSIP
University, Delhi has been examined by the following examiners.

Internal Examiner External Examiner

 ACKNOWLEDGEMENT

The satisfaction of euphoria that accompany the successful completion of any task would be
incomplete without mentioning the names of people whose constant guidance and
encouragement has crowned all our efforts with success.

I take this opportunity to express my deep gratitude to “Mrs. Monika Bhatia”, Faculty
WISDOM for providing us an opportunity to carry out a project and also for his
encouragement and valuable guidance without which this report wouldn’t have been possible.

I would specially like to thank Mr.Shree Nivas, my corporate guide and mentor for helping
me with the project and providing relevant information. He spared his valuable time for
discussing and resolving various issues that came up from time to

time.

Last but not the least I am thankful to my family and friends who rendered their helpful
advice wherever required and acted like a catalyst in the moments, when I felt lost while not
getting the relevant matter for the report.
 INTRODUCTION

This Report on Apollo Munich is done to find out certain objectives regarding strategic
approach adopted by Apollo Munich to stand alone in the competitive Health Insurance market.
The study aims to analyze that with the in the competition in the Health Insurance services,
how is the company booming. Policies play a vital role in success of the any company therefore
it becomes essential for any Health Insurance company to keep a check on the profitability
given by every policy.

Further the company wants to be a hassle free and user friendly health insurance company.

 Aims to make healthcare and health insurance easy and uncomplicated

 Apollo Munich insurance co. has tied up with a network of 4000+ hospitals in India
 Customers can avail the facility of cashless hospitalization by displaying the health card
issued to the policy holder
 Easy Health Plan offers coverage for healthcare needs of insured and also keeps a check
on the health of the customer.
 3 variants of Easy Health plan: Standard Plan which has the lowest premium; then
Premium Plan and Exclusive Plan which has the highest premium.
 Their health insurance plan starts from just Rs. 3 per day and more depending upon
one’s needs
LITERARURE REVIEW
 COMPANY’S PROFILE

Apollo Apollo Munich Health Insurance is a joint venture between The

Munich Apollo Hospitals Group, its associates and Munich Health, world
leaders in health insurance, a company of the Munich Re Group. The
company operates as a standalone health insurer and offers
innovative Health, Accident and Travel insurance solutions on a PAN
India basis

Chief Mr. Antony Jacob

Executive
Officer

Staff Presently the headcount is over 600 across 39 offices.

Product As a first step towards bringing in innovative insurance solutions,

portfolio Apollo Munich has launched its first generation products such as:
Easy Health Individual and Family Health Plans (In-Patient
Hospitalization Covers)
Easy Health for Groups
Overseas Travel & Health Covers – individual, family and groups
Personal Accident Cover – Corporate and Individual
Insure Health – An over the counter health insurance
Maxima – India’s first 360 degree health insurance
Optima Cash – A daily hospital cash product with maximum
benefits.

Apollo Munich promises to constantly engage itself in developing

innovative health and travel insurance solutions catering to various
insurance needs that may exist in the market.
Distribution Network

Distribution
Network Apollo Munich uses the following distribution channels to map the
country and make their insurance solutions available such as:
 Agents
 Corporate Agents
 Strategic Partners
 Travel Agents
 Sales Associates and
 Direct Sales Force
 Apollo Munich currently has a network of over 12,000 agents
across the country.

Apollo Munich also has exclusive tie-ups with NBFC’s for

distributing their insurance solutions.

The other channels that Apollo Munich employs are database

marketing, Internet etc. across the country; it has tied-up with travel
portals for domestic travel insurance along with a tie-up with
“www.Insurancemall.in” for selling its products through internet.

About Apollo Hospitals groups

Mr. Reddy started the Apollo Group of Hospitals to change the way medical care was perceived
in India. The Group started with only 150 beds in a hospital in Chennai, in 1983. The number
has currently gone up to 8065, world-over. At present the Apollo Group of Hospitals own and
manage more than 42 hospitals, more than 600 retail pharmacies, 60 primary care clinics.

The supplementary interests of the healthcare group include, overall well-being and disease
management, IT in health care, clinical research, holistic medicine, Medical BPO, Medical and
paramedical education and third party administration of health insurance.re clinics.

About Munich Health

Munich Health, which is a new business segment of Munich Re, has taken on the
responsibility of making the world a healthier place, by providing easy healthcare solutions to
one and all across the globe. Munich Re, a German based insurance and re-insurance
company,is the world’s largest re-insurer.

Their vision is as follows: We are the first choice for health risk solutions worldwide.

Munich Health works towards the development of new means of alliances between insurance
and medical care. The company supports public-private partnerships, the establishment and
reform of public healthcare systems, new service and product portfolios for both, primary
insurance and consulting services.

About Apollo Munich

Apollo Munich Health Insurance Co. Ltd., erstwhile called Apollo DKV Insurance Company,
is a joint venture between Apollo Hospitals Group and Munich Health. The joint venture is
poised to make good the conviction of both the partners that Indian health insurance market is
on the brink of explosive growth. Apollo Hospitals Group is the largest integrated health
provider in Asia and Munich Health is the new business segment of Munich Re, a Germany
based Reinsurance Company.
Apollo Munich has its headquarters in Gurgaon, Haryana. Apollo Munich India came into
being because of their re-branding purpose. This is also the first time that a leading hospital
group has entered into a completely different entity, namely health insurance.

The name change from Apollo DKV Insurance to Apollo Munich Health Insurance is seen as
a re-branding exercise, since in peoples mind Apollo name was very popular and
synonymous with quality health care but the same could not be said about DKV. The
company has strong growth plans and with their expertise in the industry, they are planning to
penetrate deeper in the retail insurance market.

“Let’s Uncomplicate” is the new motto for Apollo Munich Medical Insurance and the company
wants to simplify all aspects of health insurance for clients; whether it is buying, understanding
the contingencies, or making claims.

Vision

Company’s vision is to be a trusted leader in the health insurance sector by providing

innovative solutions to the citizens of India Our VISION is to constantly introduce
innovative health insurance and wellness solutions that meet customer needs. Our
product philosophy emphasizes the incorporation of wellness and prevention
components into health insurance with the goal of moving the current market, which
is largely addressing "curative" needs, to a "preventive" focus.

Mission
Company’s mission is to constantly introduce innovative Health Insurance and Wellness
solutions that meet customer needs.

 Build an organization on the principles of transparency, trust and integrity.

 Create opportunities for our employees to learn and grow in an enjoyable work
culture.
 Constantly deliver on our commitments to all the stakeholders.

Values

 Inspiring passion
 Delivering on our promises
 Being responsive to our customers
 Thinking and acting transparently
Apollo Munich Health Insurance Co Ltd. (Apollo Munich), the comprehensive health
insurance company, today announced the launch of its new advertising campaign titled “Let’s
Uncomplicate”. Beginning on January 5, 2010, the mass media campaign aims to simply
communicate health insurance – from buying it, to understanding what will be covered, to
making claims for Indians across the country.

The new campaign focuses on the easy process that Apollo Munich offers for people seeking
comprehensive health insurance for themselves and their loved ones. A series of four
commercials will showcase Apollo Munich as a user-friendly and hassle-free health insurance
company. The advertisements will be aired across all news and entertainment channels and will
tackle the general concerns faced by people when it comes to healthcare.

Speaking about the new campaign, Mr Antony Jacob, Chief Executive Officer of Apollo
Munich, said “As a niche player in the health insurance sector, Apollo Munich in interested in
simplifying the insurance process for every Indian citizen who is interested in taking care of
their family’s future. With this new advertising campaign, we want to show how easy and
friendly insuring your health can be. All our policies are comprehensive and cover almost every
gamut of the health needs of individuals. As the campaign states, we wish to take the fear out
of faces, the jargon out of words, the bitter out of medicine and trouble out of treatment. Apollo

Munich aims to uncomplicate health insurance in India .”

Management Profile
SNO Name of the person Role/Designation
1. Dr. Pratap C. Reddy Chairman
2. Ms. Shobana Kamineni Whole Time Director

3. Ms. Suneeta Reddy Director

4. Dr. Wolfgang Strassl Director
5. Dr. Wolfgang Diels Director
6. Mr. Antony Jacob Whole Time Director &
CEO
7. Mr. K. Srikanth CFO & Company Secretary
8. Mr. Ravi Vishwanath CMO
9. Mr. Krishnan Ramachandran CIO
10. Mr. Herbert Meister Consultant Actuary

Dr. Prathap C.Reddy, Chairman, Apollo Hospitals Group

Two and a half decades ago, Dr. Prathap C Reddy lost a patient who could not make it to
Texas for an open-heart surgery. This was the turning point in the Indian Healthcare Industry.
Today, people in the Indian subcontinent have the opportunity to receive the best that
healthcare has to offer worldwide.

Driven by a deep urge to provide affordable world-class medical infrastructure in India, Dr.
Reddy opted to give up his successful practice in the United States of America and returned
to India in the seventies.

In order to provide improved, accessible and affordable healthcare for the millions in the
country, Padma Bhushan Dr. Reddy campaigned relentlessly for privatization of Health
Insurance in India. He has been instrumental in the amendment of various legislations
including amendment of the legislation for cadaver transplants in the country. Over the last
decade, Apollo under the stewardship of Dr. Reddy has demonstrated that Indian skills are
equivalent to the best in the world.
 He is a much feted person and his awards include:

 The Harvard Business School had published a case study on the achievements of Apollo
Hospitals in the year 1996. Late Mother Teresa awarded Dr. Reddy the Citizen of the Year
award for the year 1993-94
 The Royal College of Surgeons, Edinburgh awarded him with Fellowship to The Royal
College of Surgeons.
 Dr. Prathap C Reddy was also presented with the Sir Nilrattan Sircar Memorial Oration
Award for medical excellence by JIMA in the year 1998. The same year, he was nominated
by Business India as one of the Top Fifty personalities who have made a difference to the
country in the fifty years since Independence.
 The Ernst & Young Entrepreneur of the Year Award was conferred on Dr. Reddy on 27th
September 2001 at Mumbai.
 The Lifetime Achievement Award was conferred on Dr. Reddy by HOSPIMEDICA
International on 19th February 2002 at Delhi
 Dr. Reddy was also invited by the Government of India to become a member of the working
group on health financing and management constituted by the steering committee for the 8th
Five Year plan in the planning commission.
 Dr. Reddy has also been awarded by the Government of India with Padma Vibhushan,
India’s second highest civilian honor.

Ms. Shobana Kamineni, Director of new initiatives

Ms. Shobana Kamineni has a degree in Economics and 20 years experience in

the healthcare industry. She was employee number 3 at Apollo Hospitals and is
part of the founding family.

Ms. Suneeta Reddy, Director

Ms. Suneeta Reddy received her Bachelor of Arts degree in Economics and
Marketing. She holds a diploma in Financial Management from the Institute of
Financial Management and Research.

Dr. Wolfgang Strassl, Director

He was born in Munich in 1956. He obtained a bachelor’s degree and doctorate

in economics at the University of Munich and the degree of Master of
Philosophy in economic sciences at the University of Cambridge in the UK.
Mr. Wolfgang Diels, Head of Munich Health/Global Markets 2

Wolfgang Diels was born on 7 December 1954 in Goeppingen/Northern

Wuerttemberg, Germany. He obtained his degree in law from Tuebingen and
Munich in 1983.

Mr. Antony Jacob, Chief Executive Officer

Antony brings on board 24 years of rich experience with corporates such as ITC,
the Continental Grain (now part of Cargill) and RSA group having worked in
major Indian metros and in Europe, Middle East, Asia and Australia.

Mr. Krishnan Ramachandran, Chief Operating Officer

Mr. Krishnan Ramachandran was born in Chennai, India. As Chief Operating

Officer he handles Underwriting, Actuarial, Claims & Provider Management,
Customer Service and Technology.

Mr.Ravi Vishwanath, Chief Marketing Officer

Ravi Vishwanath has over 13 years of global experience in Insurance sector. He

has worked with different economies worldwide like Mid East, Africa, and Asia.

Mr. Srikanth K, Chief Financial Officer and Company Secretary

Mr. Srikanth anchors the finance functions of the company. He is a versatile

finance professional with over 18 years experience in BFSI space. He handled
several intricate assignments spanning across finance, accounting

Dr. Sriharsha A Achar, Chief People Officer

Dr. Sriharsha A. Achar (Achar) brings in experience spanning 23 years and his
vast experience covers several industries, such as Manufacturing,
Pharmaceuticals and Electronics. Apart from this, he had also worked with
BPO/ ITES.
Company’s partners

Muthoot Pappachan Group (MPG)

The beginnings of the Muthoot Pappachan Group can be traced back to Kozhencherry – a
small town in the Southern state of Kerala, India. In 1887, Ninan Mathai Muthoot started a
retail business which was later diversified into a finance business by his sons. With their
youthful vision and combined strengths business soon flourished. In 1939, the brothers
established the Muthoot Chit Fund Enterprises that provided small and medium loans to
farmers and merchants.

Within a short span of 10 years Muthoot Chit Fund Enterprises became the largest business
house of its kind in Kerala and a household name. The brothers soon moved into full fledged
banking operations. They specialised in gold loans and advances to small enterprises and
individuals on quick and easy terms.
The brothers then decided it was time to part ways in business and, Ninan Mathai Muthoot’s
younger son, Mathew M. Thomas or Muthoot Pappachan, as he is fondly known, founded the
Muthoot Pappachan Group.

The Muthoot Pappachan Group is today a significant Pan-India financial services provider,
with branches throughout the Nation. The focus has not changed, however. Tradition,
transparency, reliability, innovation through experience and good standing in the community
remain embedded in the Group.

The Group has over 5,000 people serving more than one million loyal customers at offices
and establishments across the Nation.
In addition to finance and insurance, the Muthoot Pappachan Group has significant presence
in other sectors of business, such as hospitality, IT infrastructure, automotive and renewable
energy
INDUSTRIAL REVIEW
INDUSTRIAL REVIEW

INSURANCE
MEANING
In law and economics, Insurance is a form of risk management primarily used to hedge against
the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk
of a loss, from one entity to another, in exchange for payment. An insurer is a company selling
the insurance; an insured or policyholder is the person or entity buying the insurance policy.
The insurance rate is a factor used to determine the amount to be charged for a certain amount
of insurance coverage, called the premium.

The transaction involves the insured assuming a guaranteed and known relatively small loss in
the form of payment to the insurer in exchange for the insurer’s promise to
compensate(indemnify the insured in the case of a large, possibly devastating loss. The insured
receives a contract called the insurance policy which details the conditions and circumstances
under which the insured will be compensated.

History of Insurance
In some sense we can say that insurance appears simultaneously with the appearance of human
society. We know of two types of economies in human societies: money economies (with
markets, money, financial instruments and so on) and non-money or natural economies
(without money, markets, financial instruments and so on). The second type is a more ancient
form than the first. In such an economy and community, we can see insurance in the form of
people helping each other. For example, if a house burns down, the members of the community
helps build a new one. Should the same thing happen to one’s neighbor, the other neighbors
must help. Otherwise, neighbors will not receive help in the future.

Turning to insurance in the modern sense (i.e., insurance ina modern money economy, in
which insurance is part of the financial sphere), early methods of transferring or distributing
risk were practiced by Chinese and Babylonian traders as long ago as 3rd and 2nd millennia BC.
A thousand years later, the inhabitants of Rhodes invented the concept of the ‘general average’.
Merchants whose goods were being shipped together would pay a proportionally divided
premium which would be used to reimburse any merchant whose goods were jettisoned during
storm or sinkage.

Insurance as we know it today can be traced to the Great Fire of London. The devastating
effects of the fire converted the development of insurance “from a matter of convenience into
one of the urgency”. A number of attempted fire insurance schemes came to nothing, but in
1681 Nicholas Barbon, and eleven associates, established England’s first fire insurance
company, the ‘Insurance Office for Houses’. Initially, 5000 homes were insured by Barbon’s
Insurance Office.
 Insurance classification
Insurance companies may be classified into two groups
 Life insurance companies, which sell life insurance, annuities and pensions products.
 Non- life insurance, General, or property/Casualty insurance companies, which sell
other types of insurance.

INSURANCE

NON LIFE LIFE

INSURANCE INSURANCE

EXCESS STANDARD
LINES LINES

GENERAL INSURANCE

General insurance: A form of insurance mainly concerned with protecting the policy holder
from loss or damage caused by specific risks. Example includes Property/Casualty Insurance,
Health/Disability, Business/ Commercial Insurance.

General insurance or non-life insurance policies, including automobile and homeowners

policies, provide payments depending on the loss from a particular financial event. General
insurance typically comprises any insurance that is not determined to be life insurance.

General Insurance companies can be further divided into these sub categories.

 Standard lines
 Excess Lines

Standardline insurance companies are “mainstream” insurers. These are the companies that
typically insure auto, homes or business. They usually have lower premiums tan excess lines
and can sell directly to individuals. They are regulated by state laws that can restrict the
amount they can chargefor insurance policies.
Excess lines insurance companies (also know as Excess and surplus typically insure risks not
covered by the standard libes market. These companies have more flexibility and can react
faster than standard insurance companies because they are not required to file rates and forms
as the “admitted” carriers do. However, they still have substantial regulatory placed upon
them.

In most countries, Life and non-life insurers are subject to different regulatory regimes and
different tax and accounting rules. The main reason for the distinction between the two types
of company is that life, annuity, and pension business is very long-term in nature- coverage
for life assurance or a pension can cover risks over many decades. By contrast, non-life
insurance cover usually covers a shorter period, such as one year.

Types of Non Life Insurance

o Auto insurance
o Home insurance
o Business insurance
o Marine Insurance
o Health Insurance
o Accident, Sickness, Unemployment Insurance
o Casualty
o Property
o Liability
o Credit
o Other type (Pet insurance, Kidnap insurance and Ransom insurance, Legal expences
insurance, etc.)
o Insurance financing vehicles
o Closed community self insurance

Growth of Non Life Insurance in India

India’s non- life insurance sector is on an upswing. The industry witnessed growth of 8% in
the first half of 2009-10. There iis vast untapped business potential, especially in non-metro
cities and semi- urban areas. However, it CAGR from 2001-09 has been 15%.

Performance in first quater(in crore)

9000
8500
8000
7500 years
7000
6500
2007-08 2008-09 2009-10
The total premium underwritten by the general insurance companies in the first half of 209-10
was Rs. 16819.95 crore as compared to Rs. 15571.72 crore in the year ago period. This it can
be seen that it has been showing the increasing trend.

The general insurance sector rose at a rate of 13%per cent 2009-10, but according to the
General Insurance council of India, it is expected to grow at a massive rate of 18% this year.
This is a remarkable growth and various factors have added to achieve such impressive results.
The value of general insurance sector insurance in India is around Rs 29000 crore and it is
expected to cross Rs 35000 by the end of this year.

Health Insurance
Health Insurance, like other forms of insurance, is a form of collectivism by means of which
people collectively pool their risk, in this case the risk of incurring medical expenses. There
are currently 17 General Insurance/Non life insurance companies in India offering various
Health insurance products and Services.

The major health insurance companies in India are

 National Insurance Company

 New India Assurance
 United India Insurance
 ICICI Lombard
 Tata AIG
 Royal Sundaram
 Star Allied Health Insurance
 Cholamandalam DBS
 Bajaj Allianz Apollo
 AG Health Insurance Company

Growth of Health Insurance Sector

The health insurance market represents one the fastest growing and second largest no n- life
insurance segment in the country. The Indian health insurance market has posted growth in the
last two fiscals (2008-09 and 2009-10).

Health Insurance is emerging at a rapid clip. According to C.S Rao, ex chairman, Insurance
Regulatory and Development Authority (IRDA), the gradual removal of tariffs would give a
boost to health insurance. “The premium from the fire insurance is likely to drop while the
premium from health will increase following the removal of tariffs,” he says. Moreover, as per
the report, the health insurance premium is expected to grow at a CAGR of over 25 per cent
for the period spanning from 2009-10 to 213-14. The health segment recorded the highest
growth (49.67 per cent) in the first quarter of the 2008-2009 over the corresponding quarter of
2007-08. Health insurance premium collections touched US$ 1.31 billion in the previous year,
the Insurance Regulatory and Development Authority (IRDA) said in its annual report for
2008-09.

Health Insurance Premium 2004-2009

(rs. Crore)

Insurers 2004-05 2005-06 2006-07 2007-08 2008-09

Non-Life Public 1366 1683 1974 3136 3824
Non-Life
Private 304 539 1224 1832 2266
Standalone health
Insurers 11 156 535
Total 1670 2222 3209 5125 6625

Performance of Health Insurance

7000

6000

5000

4000 performance of health

insurance
3000

2000

1000

0
2004-05 2005-06 2006-07 2007-08 2008-09

Contribution of Health Insurance in General Insurance

As per the reports of IRDA the contribution of health sector in general insurance has shown an
increasing trend. According to the report general insurance increased 13 per cent in 2009-2010
which was mainly due to the health insurance sector which increased 57 per cent last year.

PREMIUM (WITHIN INDIA) UNDERWRITTEN BY

NON-LIFE INSURERS-SEGMENT-WISE
SEGMENT PREMIUM IN CRORE(2007-08) PERCENTAGE(2007-08)
 FIRE 3459 12.43
MARINE 1799 6.47
MOTOR 12685 45.59
HEALTH 4894 17.59
OTHERS 4986 17.92
TOTAL PREMIUM 27824 100

SEGMENT PREMIUM IN CRORES(2008-09) PERCENTAGE(2008-09)

FIRE 3383 11.14
MARINE 1957 6.45
MOTOR 13336 43.94
HEALTH 6088 20.06
OTHERS 5588 18.41
TOTAL PREMIUM 30352 100

50 45.59
43.94
45
40
35
30
25 2008-09
20.06
20 17.59 17.9218.41 2007-08
15 12.4311.14
10 6.47 6.45
5
0
FIRE MARINE MOTOR HEALTH OTHERS

Thus we can see that the premium contribution of health sector in general insurance was 17.59
in 207-08 which has increased to 20.02% in 2008-09.

Future prospects of Health Sector

In general prediction about future health – of individuals and population – can be notoriously
uncertain. However all projections of health care in India must in the end rest on the overall
changes in its political economy.

 On progress made in poverty mitigation (health care to the poor)

 Reduction of inequalities (health inequalities affecting access/quality)
 In generation of employment/ income streams (to facilitate capacity to pay and to accept
individual responsibility for one’s health).
  In public information and development communication (to promote preventive self care
and risk reduction by conducive life styles.)
 In personal life style changes (often directly resulting from social changes and global
influences.)
 Progress in reducing mortality and the likely disease load, efficient and fair delivery
and financing systems in private and public sector.

These changes will in return effect the health sector.

Growth drivers of Health Insurance

1. A series of policy reforms will be needed to provide subsidized for the country’s poorest
citizens.
2. Efforts to encourage competition among health services and to extend to lower income
citizens will also be beneficial.
3. Innovation in the product is essential. Today, most them offer only limited services,
limited reimbursements, or both and don’t cover preexisting conditions or outpatient
expenses.
4. To cover more people insurance firms need to design products that cater to several
income classes and health groups, cover alternative therapies, and provide more
comprehensive coverage.
5. A regulatory environment that regulated health insurance as distinct from other lines of
insurance is necessary to boost the sectors growth.
6. The intense competition brought about by deregulation has encouraged the industry to
innovation all areas; from underwriting, marketing, policy holder servicing to record-
keeping.
7. Allowing insurers to issue their own policy wordings and set their own rates will enable
underwriters to tailor products to meet client needs.
8. Aggressive marketing strategies by private sector insurers will buoy consumers’
awareness of risk and expand the markets for products.

Analysis

Health insurance has shown a rising trend and gradual removal of tariffs would give a
boost to health insurance. But, the growth rate of the premium fell down sharply in
2008-09. Health insurance sector recorded the growth of 59% in 2007-08 which fell to
29% in 2008-09.
With the removal of tariff health insurance sector is expected to grow. Removal of tariff
has led to the increase in the premium collection of health sector. Until December 206
a very large proportion of premium income (64.4%) came from tariff segments. Post-
January 2007, this portion declined sharply, and was 14.5%. The discounting of fire
rates also reduced its premium contribution. But, health sector saw the growth, its share
increased from 12%in 2006-07 to 16% in 2007-08. Before the removal of tariff health
contributed a much greater proportion of business for private players that were the case
for public firms, but after the removal of tariff public sector took the lead.
If we talk about the overall business of Nonlife Insurance (within and outside India), it
has shown irregular pattern of growth.

Gross Direct Premium of Non Life Insurance (within and outside India)

Years Premium(crore) Growth%

2001-02 12724
2002-03 15245 20

2003-04 17357
2004-05 19522 12

2005-06 22472
2006-07 27135 21

2007-08 30480
2008-09 33565 10

In the first segment was 20% which fell by 8% in next segment. In 2005-07, it showed
a sharp increase of 21% which again fell sharply to 10% in 2007-09
The penetration of insurance Market in India as compared to the other Asian markets
has been very low. In 2008 the penetration of non life insurance sector was 60% where
as in South Korea it was 3.70% in the same period.
Some of the weaknesses of insurance sector in India are
Public and Private sector insurers’ greater reliance on their investment portfolios to
generate sufficient income and gains for net profits would subject them to the volatility
of the financial markets.
Private insurers need to raise more capital, otherwise growth could be constrained since
reliance on reinsurance for capital relief is not always viable or available.
Traditional distribution channels, especially tied agents, need to be improved to match
the new product offerings.
There is general lack of transparency as financial and operational data for insurers are
not readily available as none of India’s insurers are directly listed on stock exchange.
PRODUCTS OFFERED BY THE COMPANY
Products offered by the company
Apollo Munich, offer a broad range of health insurance products to facilitate quality healthcare
protection. The company has its branches in almost all the major cities of the country. Our
products are offered on a 'cashless basis' in more than 4000 hospitals across India and on
'Reimbursement basis' across all hospitals in the country.

There is an array of products that fits the lifestyle of the common man. Easy Health, Easy
Travel, and Personal Accident Plan have been carefully designed keeping in mind the needs of
individuals, families and groups.

In addition to these products, there are value added services for all our clients. These are
cashless hospitalization, Healthline and Health Risk Assessment
These value added services simply make sure that the customer is able to cover the preventive
aspect of healthcare with ease.
Since the main aim of the company is to ‘Uncomplicate’ healthcare solutions for customers,
there are a number of steps that have been taken in the same direction. The plans and the value
added services provide customers with several benefits that are meant to enable the customer
to get complete healthcare without having to undergo any fiscal blow. The health insurance
plans provide benefits such as coverage for pre- and post-hospitalization expenses, day-care
procedures coverage, and several other such benefits.
The Personal Accident Plan also provides lump sum amounts for the family in case if death or
disability of the insured individual by an accident. Similarly, Easy Travel provides customers
with more than just coverage in times of medical problems. The plan provides customers with
access to the company’s helpline where customers can gain assistance (referrals for embassies,
interpreters, medical centers, etc.) with any kind of problem.
However, all the plans come with Great customer service, 100% lifelong renewal, clear policy
wordings and conditions, cashless access to the best 10,000 doctors and 4500 hospitals in over
800 cities, tax deduction under Section 80D, our healthcare and health insurance expertise and
one of the fastest claims settlement in the Industry.
To make it simpler for the customer to choose, the plans have been divided into

 Individual Plans
 Family Plans
 Individual Plans include
 Easy Health Standard
 Easy Health Exclusive
 Easy Health Premium
 Insure Health
 Maxima
 Personal Accident Plan
Family Plans include

 Easy Health Standard

 Easy Health Exclusive
 Easy Health Premium
 Maxima
 Optima Cash

Individual Plans
Easy Health Standard
 Comprehensive coverage for hospitalization
 Coverage offered for Pre & Post-Hospitalization
 Coverage for specific 140 day-care procedures
 10% cumulative bonus for every claim-free year accumulating upto 50%
 Daily cash for choosing shared accommodation (Rs. 500 per day, maximum Rs. 3000)
 Expenses for Organ donor
 Emergency Ambulance - upto Rs. 2000

Easy Health Exclusive

 Comprehensive coverage for hospitalization
 Coverage offered for Pre & Post-Hospitalization
 Coverage for specific 140 day-care procedures
 10% cumulative bonus for every claim-free year accumulating upto 50%
 Daily cash for choosing shared accommodation (For Sum Insured 3.00, 4.00, 5.00 lacs:
Rs.500 per day, maximum Rs. 3,000; For Sum Insured 7.50 lacs: Rs. 800 per day maximum
Rs. 4,800)
 Expenses covered for Organ donor.
 Emergency Ambulance - Upto Rs. 2000
 Daily cash for accompanying an insured child (For Sum Insured 3.00, 4.00, 5.00 lacs: Rs.300
per day, maximum Rs.9,000; For Sum Insured 7.50 lacs: Rs. 500 per day maximum
Rs.15,000).
 Additional coverage for Critical Illness
 Coverage for Maternity expenses
 Coverage for new born baby

Easy Health Premium

 Comprehensive coverage for hospitalization

 Coverage offered for Pre & Post-Hospitalization
 Coverage for specific 140 day-care procedures
 10% cumulative bonus for every claim-free year accumulating upto 50%
 Daily cash for accompanying an insured child (For Sum Insured 4.00, 5.00 lacs: Rs.300 per
day, maximum Rs.9,000; For Sum Insured 7.50 lacs,10.00 lacs: Rs. 500 per day maximum
Rs.15,000).
 Daily cash for choosing shared accommodation (For Sum Insured 4.00, 5.00 lacs: Rs.500 per
day, maximum Rs. 3,000; For Sum Insured 7.50 lacs, 10.00 lacs: Rs. 800 per day maximum
Rs. 4,800)
 Expenses covered for Organ donor
 Emergency Ambulance - Upto Rs. 2000
 Additional coverage for Critical Illness
 Coverage for Maternity expenses
 Coverage for new born baby
 E-Opinion for Critical Illness.
 Coverage for Outpatient Dental Treatment
 Coverage for Spectacles, Contact Lenses, Hearing Aid

Insure Health
 Coverage of all hospitalization expenses.
 Simple to buy: fill the proposal form and get the policy.
 No medical examination required.
 Comprehensive and affordable.
 Loyalty Discount of 5% on the renewal premium of the Insure Health Policy can be availed at
the time of renewal, as a cross selling credit to buy any other Apollo Munich product within
365 days from the renewal date.
 Coverage for inpatient Ayurveda, Unani, Sidha and Homeopathy treatment up to 10% of the
Sum Insured

Maxima Health
We all visit hospitals more often for small problems than the big ones. But most health plans
work only when you’re hospitalised or undergo major treatment. That’s why the
 new Maxima, a plan with unique out-patient features to take care of your regular illnesses
and little niggles. Here’s what it covers:

 Doctor Consultations: 4/6/8 consultations as per plan opted for you and your family
anywhere
 Pharmacy Expenses: Your pharmacy bills are covered as well
 Diagnostics: Cost of diagnostic tests taken by you or anyone covered in your family will also
be paid
 Specialist Services: Dental treatment, Spectacles and Contact lenses are all taken care of up
to a certain limit
 Health Check-ups: Any person above 18 years of age is provided with an annual health
check-up. (person above 45 years can avail this benefit from second year)
 Pre-existing illnesses under OPD Benefits, covered: If you need medicines or a Doctor’s
consultation for any pre-existing illness, it’ll be covered without any waiting period
 Flexibility: Enjoy freedom from sublimits. Use the OPD vouchers as per your needs and
requirements without worrying about any sublimits
 Tax benefits: You have the advantage of saving an optimum amount under Section 80D of
Income Tax Act

Individual Personal Accident Plan

 Affordable insurance plan with premium based on occupation

 Coverage for injuries sustained anywhere in the world
 Lump sum payment for death due to an accident
 10% discount for two or more members covered
 Cumulative discount of 5% for every claim - free year upto 50% of the accidental death sum
insured
 In case of Accidental Death or Permanent Total Disablement get 50% of Sum Insured per
Dependent Child up to a maximum of two Dependent Children for pursuing an educational
course.*

*Provided that such dependent child is pursuing an educational course as a full time student
in an educational institution
 Weekly allowance in case of Temporary Total Disablement
 Family Plans

Easy Health Standard

 Comprehensive coverage for hospitalization
 Coverage offered for Pre & Post-Hospitalization
 Coverage for specific 140 day-care procedures
 10% cumulative bonus for every claim-free year accumulating upto 50%
 Daily cash for choosing shared accommodation (Rs. 500 per day, maximum Rs. 3000)
 Expenses for Organ donor
 Emergency Ambulance - Upto Rs. 2000

Easy Health Exclusive

 Comprehensive coverage for hospitalization
 Coverage offered for Pre & Post-Hospitalization
 Coverage for specific 140 day-care procedures
 10% cumulative bonus for every claim-free year accumulating upto 50%
 Daily cash for accompanying an insured child (For Sum Insured 3.00, 4.00, 5.00 lacs: Rs.300
per day, maximum Rs.9,000; For Sum Insured 7.50 lacs: Rs. 500 per day maximum
Rs.15,000).
 Daily cash for choosing shared accommodation (For Sum Insured 3.00, 4.00, 5.00 lacs:
Rs.500 per day, maximum Rs. 3,000; For Sum Insured 7.50 lacs: Rs. 800 per day maximum
Rs. 4,800)
 Expenses covered for Organ donor.
 Emergency Ambulance - Upto Rs. 2000
 Daily cash allowance for accompanying an insured child.
 Additional coverage for Critical Illness
 Coverage for Maternity expenses
 Coverage for new born baby

Easy Health Premium

 Comprehensive coverage for hospitalization
 Coverage offered for Pre & Post-Hospitalization
 Coverage for specific 140 day-care procedures
 10% cumulative bonus for every claim-free year accumulating upto 50%
 Daily cash allowance for accompanying an insured child.
 Daily cash for accompanying an insured child (For Sum Insured 4.00, 5.00 lacs: Rs.300 per
day, maximum Rs.9,000; For Sum Insured 7.50, 10.00 lacs: Rs. 500 per day maximum
Rs.15,000).
 Daily cash for choosing shared accommodation (For Sum Insured 4.00, 5.00 lacs: Rs.500 per
day, maximum Rs. 3,000; For Sum Insured 7.50, 10.00 lacs: Rs. 800 per day maximum Rs.
4,800)
 Expenses covered for Organ donor
 Emergency Ambulance- Upto Rs. 2000
 Additional coverage for Critical Illness
 Coverage for Maternity expenses
 Coverage for new born baby
 E-Opinion for Critical Illness.
 Coverage for outpatient Dental Treatment
 Coverage for Spectacles, Contact Lenses, Hearing Aid

Optima Cash

 Upto 25% discount for online customers

 Coverage for Hospitalization due to Illness/Accident
 Daily cash benefit for hospitalization
 Double Daily Cash benefit for ICU and Joint hospitalization
 50% Daily Cash amount for 10 identified Day-Care procedures
 Option to choose Policy period of 1 or 2 Years
 No medical tests required
 Convalescence Cash- Lump sum amount for hospitalization beyond 7 days
 Coverage for additional expenses like attendant’s food, travel and accommodation
 No medical bills required for claim
METHODOLGY
 METHODOLOGY

The study is done by gaining practical experience of 30 days at APOLLO MUNICH

HEALTH INSURANCE COMPANY LIMITED. Working in any organization is a beautiful
experience and it adds to my knowledge.. I have been able to learn many things during this
period.

Method of
collecting data

Secondary
Primary data
data

Observation of
Internet
employees

Querying with
Brochures
employees

Observation of Application
customers forms

Method of collecting data

I have made use of both primary and secondary data. The collection of material for study has
been done through continuous queries from the project guide and the employees of the firm. I
also scrutinized the employees and the customers closely. The sources of secondary data
were Internet, the application forms, the brochures and the software tutorials. After collection
the matter has been analyzed and worked upon.
FINDINGS
I worked under Mr. SHREE NIVAS who gave us the project on health insurance
products of the company. I did a detailed study of company’s health insurance
product and found out –

HEALTH INSURANCE PRODUCT

EASY HEALTH INSURANCE

Easy Health Insurance Plans are designed in a way to suit your need and fit your pocket.
They will not only guard you against the spiraling medical costs but will also guide you on
the path of wellness, providing you a double protection of prevention and cover. The Easy
Health Insurance Plans are available for Individuals (Easy Health Individual Health Insurance
Plan) and Families' (Easy Health Family Health Insurance Plan). These Plans manage you
and your families health-related needs right from consultation and hospitalization to the post-
hospitalization.

These policies are available on a cashless basis in over 4000 network hospitals thus managing
your expenses and providing hassle-free transactions. To let you decide the right policy that
suits your needs, we have made three variants available, which give you a choice and
freedom to decide your premium.

The Easy Health Insurance policies are power-packed with unique features like cash credited
on daily basis on choosing shared accommodation, daily cash for accompanying an insured
child, maternity expenses, health check-up, spectacles, contact lenses, etc. and out-patient
dental treatment.

With Best in class benefits

Wide options Choose from the wide choices of the sum insured starting from Rs 1 lac
to 10 lacs.

Portability-A customer-friendly policy that ensures that you avail most of the accrued
benefits when you opt for Apollo Munich Health’s Easy Health Insurance Plans.

Pre-Hospitalization and Post-Hospitalization cover Takes care of medical expenses

incurred before and after the hospitalization.

Cumulative Bonus-Get special incentives on every renewal after a claim-free year.

Tax Benefits Get tax benefits for the premium amount under Section 80D of the
Income Tax Act.
With Value Added Services

Health Risk Assessment

We offer our customers maximum health benefits with minimum efforts. The globally
validated online health risk assessment is provided to all our customers. This helps
them to profile their health status, and will also offer personalized wellness
recommendations on diet, lifestyle, nutrition, etc.

Cashless Hospitalization
Our policies, in addition to reimbursement of claims at all hospitals, are valid on a
cashless basis in over 4000 hospitals.

All insured members can call the Healthline and quote their unique customer ID
(provided with the policy) to reach our experts and avail primary consultation, health-
related consultation, individual referrals, health information, nutrition and diet, at no
extra cost.

With Wide Choices

We offer three plan variants, to help you choose what’s best for your needs. The cover
amount ranges from Rs. 1,00,000 to Rs. 10,00,000 according to the product variant you
choose.

Standard Plan
A plan that is tailor-made especially to fit every one’s pocket. Starting at just Rs. 3/day.
Health insurance was never so accessible before…

Exclusive Plan
This plans covers maternity, which makes it unique in its class. Starting at Rs500 Per
day….

Premium Plan
Take e-opinion from our expert panel of doctors who will guide you through this
critical time starting at …..Rs. 5000 per annum.

Terms of Renewal

 We offer life-long renewal unless the Insured Person or any one acting on behalf
of an Insured Person has acted in a dishonest or fraudulent manner or any
misrepresentation under or in relation to this policy or the Policy poses a moral
hazard.
 Maximum Age –There is no maximum cover ceasing age in this policy. For
Additional cover of Critical Illness maximum cover ceasing age in this policy
would be 70 yrs.
  Waiting Period - The Waiting Periods mentioned in the policy wording will get
reduced by 1 year on every continuous renewal of your Easy Health Insurance
Plan.
 Renewal Premium- Renewal premium are subject to change with prior approval
from IRDA.
 Sum Insured Enhancement – Sum Insured can be enhanced only at the time of
renewal subject to no claim have been lodged/ paid under the policy. If the
insured increases the sum insured one grid up, no fresh medicals shall be
required. In cases where the sum insured increase is more than one grid up, the
case shall be subject to medicals. In case of increase in the Sum Insured waiting
period will apply afresh in relation to the amount by which the Sum Insured has
been enhanced.

INSURE HEALTH

Insure Health is an inpatient EASY TO BUY Health Insurance product that is

specifically designed for you who understand the need for good health and would opt
for a health insurance cover that is easy to buy and use. Insure Health brings you the
simplest buying process devoid of any lengthy procedures such as medical examination
etc. You can buy Insure Health from any of the Apollo Munich Health counters by
filling a simple proposal form* and getting it authorized and activated at the counter
itself. Insure Health comes with various Sum Insured options to suit your budget and
suffice your health insurance needs.

*Policy would be issued at the point of sale for accept cases and any adverse
declaration will result in rejection.

Who all can opt for Insure Health?

1. The policy can be issued to an individual and/or family for the period of 1 year.
2. The family includes spouse, dependent children and dependent parents.
3. The policy covers individuals from the age of 5 years onwards. A child
dependent can be covered from the 91st day if both parents are covered under
this policy. The maximum entry age is 50 years.
 Premium Table (In Rs.) (Excluding Service Tax)

Age Group
SI-25,000 SI-50,000 SI-75,000 SI-100,000 SI-200,000
(In Yrs)
91days-35 530 743 902 1,061 1,593
36-45 849 1,168 1,433 1,646 2,124
46-50 1,380 1,911 2,336 2,708 3,983
51-55* 1,540 2,336 2,655 2,974 4,568

56-60* 1,805 2,496 3,080 3,505 5,046

61-65* 2,974 4,143 5,152 5,843 8,552

66-70* 3,930 5,524 6,852 7,755 10,996

71-75* 4,515 6,268 7,808 8,871 12,218

Benefits
Benefits you can access through Apollo Munich Health’s Insure Health are:

1. In-patient treatment: This includes all hospitalization expenses.

2. Pre-hospitalization: Through this the insured is eligible for lump sum amount
equivalent to 1% of admissible claim amount towards pre-hospitalization expenses.
3. Post-hospitalization: Through this the Insured is eligible for lump sum amount
equivalent to 1% of admissible claim amount towards post-hospitalization expenses.
4. Day-Care procedures: This provides the insured with the cover for the medical
expenses for 140 Day-care procedures which do not require 24 hours hospitalization
due to technological advancement.
5. Organ Donor: This entitles the insured for the medical expenses incurred for an
organ donor’s treatment for the harvesting of the organ donated.

Discounts
a. A family discount of 10% can be availed if 2 or more members of a family are
covered under the same policy on Individual sum Insured basis.
b. Loyalty Discount of 5% on the renewal premium of the Insure Health Policy can be
availed at the time of renewal, as a cross selling credit to buy any other Apollo
Munich product within 365 days from the renewal date.
 Terms of Renewal

 We offer renewal unless the Insured Person or any one acting on behalf of an Insured
Person has acted in a dishonest or fraudulent manner or any misrepresentation under or
in relation to this policy or the Policy poses a moral hazard.
 Maximum Age – Maximum cover ceasing age in this policy would be 75 years.
 Cumulative Bonus – No cumulative bonus is offered under this policy.
 Waiting Period - The Waiting Periods mentioned in the policy wording will get
reduced by 1 year on every continuous renewal of your Insure Health policy.
 Renewal Premium- Renewal premium are subject to change with prior approval from
IRDA.

Sum Insured Enhancement – Sum Insured can be enhanced only at the time of
renewal subject to no claim have been lodged/ paid under the policy. If the Insured
increases the Sum Insured, no Pre Policy Check-up will be required but the case will
be subject to medical underwriting. In case of increase in the Sum Insured waiting
period will apply afresh in relation to the amount by which the Sum Insured has been
enhanced. However the quantum of increase shall be at the discretion of the company.

MAXIMA HEALTH

MAXIMA UNIQUE

 Doctor Consultations: 4/6/8 consultations as per plan opted for you and your family
anywhere

 Pharmacy Expenses: Your pharmacy bills are covered as well

 Diagnostics: Cost of diagnostic tests taken by you or anyone covered in your family will also
be paid

 Specialist Services: Dental treatment, Spectacles and Contact lenses are all taken care of up
to a certain limit

 Health Check-ups: Any person above 18 years of age is provided with an annual health
check-up. (person above 45 years can avail this benefit from second year)

 Pre-existing illnesses under OPD Benefits, covered: If you need medicines or a Doctor’s
consultation for any pre-existing illness, it’ll be covered without any waiting period

 Flexibility: Enjoy freedom from sublimits. Use the OPD vouchers as per your needs and
requirements without worrying about any sublimits
 Tax benefits: You have the advantage of saving an optimum amount under Section 80D of
Income Tax Act

MAXIMA COMPLETE

 Wide in-patient cover: Maxima offers 300,000 cover for in-patient treatment, pre and post
hospitalisation, daycare procedures, domiciliary treatment, daily cash for choosing shared
accommodation. We also pay for expenses for organ donor, emergency ambulance charges,
daily cash for accompanying an insured child, maternity expenses and care for a new born

 Wide out-patient cover: An out-patient benefit up to the limit covering expenses for doctor
consultations, pharmacy expenses, spectacles, health check-up and diagnostic tests. All these
are available throughout the Apollo Munich network on cashless basis and on reimbursement
basis any where else in India

 Cashless Hospitalisation: Cashless transactions across the Apollo Munich network of over
4000 hospitals across 800 cities in case you need hospitalisation

 Life Long Renewal benefit: The good thing is, once you are covered under Maxima, you
can renew your cover life long. So there’s no cover ceasing age

 Additional critical illness cover: You have the option to choose an additional critical illness
cover as per your needs. This provides for additional coverage against 8 specified critical
illnesses and is always paid as a lump sum benefit in addition to any medical expenses you
may incur for hospitalisation

 Renewal Benefits: For in-patient treatment : Maxima offers a cumulative bonus of 10% for
every claim free year accumulating to a maximum of 50% of your in-patient sum insured. In
the event of a claim, the cumulative bonus is reduced by 20% on the next renewal

 For out-patient benefits: Maxima offers the advantage of carrying forward 50% of any
unutilized entitlement certificates to the next policy year. This excludes the Annual Health
Check-up

Benefits of Apollo Munich Maxima health insurance plan

Some of the benefits of Apollo Munich Maxima health plan are as follows:
 Offers wide in-patient hospitalization coverage benefits.
 Offers OPD benefits which covers outpatient treatment that do not require hospitalization.
 Offers excellent flexibility for using OPD vouchers without the need to worry about sub-
limits. Also, offers the flexibility to choose an optional Critical Illness Cover based on
requirement.
 Offers critical illness cover.
 Offers comprehensive health check-up.
 Offers life-long renewal policy
 Offers tax benefits as per the section 80 (D) of the Income Tax act.
  Offers cumulative bonus for claim-free year.
 New born and maternity benefit is offered but with a waiting period.

Premium:
For an adult the premium for the Maxima Premium is Rs. 15,216 and while for the two
adults it is Rs. 21,105! While the tax benefits, OPD entitlement certificates will pay for
themselves and according to them the actual effective premium is Rs. 480 and Rs. 1570 for
one adult and two adults respectively. This is for the sum assured of Rs. 3 Lakhs.