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A Project Report Submitted In Partial Fulfilment Of The Requirements For the Award Of The Degree Of










This is to certify that Mr SATADRU BISWAS has prepared this internship report titled A COMPARATIVE STUDY BASED ANALYSIS OF MAX BUPA under the guidance of Ms.Kanika Kundu. The draft has been thoroughly revised on the basis of the recommendation of the panel of the examiners and the revision has been accepted by the internal guide. The student certifies that no portion of this report has been plagiarized or copied or quoted without permission in any form. The report has not been submitted to any other Institute/University for any other Diploma/ Degree.







Max Bupa Health Insurance Co. Ltd. Constantia Building (6th Floor), RegusBusinessCentre 11, U.N. Bhramachari Road , Kolkata - 700017




Mr Somnath Biswas Agency Manager MAX BUPA HEALTH INSURANCE Email:-somnath.biswas@maxbupa.com


Ms.Kanika Kundu


June 10 , 2011


August 10, 2011


9 Weeks


It is a matter of honour for me to express my gratitude who guided directly and indirectly in completing this project. I would like to specially thank, Mr Somnath Biswas (Agency Manager) for providing valuable data source, information and giving me an opportunity to do the project at MAX BUPA HEALTH INSURANCE & Prof. Rajkumar Dasgupta for giving valuable guidance to me throughout this project. I would like to convey my sincere acknowledgement to MAX BUPA HEALTH INSURANCE and my Institution NSHM Business School, for providing me the opportunity to work on this project. This project has been a thorough learning process for me.

Date :Place :-

(Student Name)



I, SATADRU BISWAS, daughter of Mr. MRINAL KANTI BISWAS, of M.B.A(W.B.U.T) batch 2010-2012 of NSHM Business School of Kolkata, do hereby declare that I have taken keen interest in the Summer Internship Project entrusted to me by my Institution, in MAX BUPA HEALTH INSURANCE COMPANY Ltd., and have conducted the project under the guidance and supervision of Mr. Somnath Biswas, Agency Manager, Kolkata. I have derived satisfaction from the project work and have completed the project to the best of my knowledge and ability with the help of all the required data and information available. I have furnished the sources of all the data and information which I have used in order to conduct my project. I hereby declare that I have understood and have abided by all the rules and regulations and have followed all the guidelines governing my project. I have also understood the scope and limitations of the project, and have conducted my project accordingly.

Date :Place :-

(Student Name)



The following project was undertaken at MAX BUPA HEALTH INSURANCE- Kolkata in pursuance of the Summer Internship Project forming a part of the curriculum for the in MBA Programme at NSHM KNOWLEDGE CAMPUS, Kolkata. Summer Project is a Pedagogic approach that gives the MBA participants an opportunity to apply their Managerial Skills and Classroom Learning in real life projects in an Industry. The report covers the details that about the A COMPARATIVE STUDY BASED


The report describes about the insurance sector, its different types and the features of the insurance. It also gives a brief idea about MAX BUPA and its different product. This report also describes about my training. I had done this project in a group of three. Our work was to make people aware about the products of the company, to get their feedback and to sell the product of the company. We had visited many institutes, hospitals, schools and many other places in order to meet a large number of people and to educate them about the company products and to increase the sales of the company. The data hereby collected is mainly secondary data. Sources of the data are the company records and the references for the literature are mainly based on internet, books, and journals. A list of the references is given at the end of the report.

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1.Insurance industry Overview 2.Company Profile 3.Research Objective 4.Reasearch Methodology 5Analysis of Primary Data i)Percentage distribution of salary ii)Percentage distribution of insured and uninsured persons iii)Percentage distribution of types of insurance most favoured iv)A rank chart based on non quantitative terms v)An overall rank chart based on non quantitative terms vi)Analysis of secondary data vii)Gross premium underwritten by insurers in health insurance viii) Percentage distribution of total premium underwritten ix) Percentage increase in premium x) A combined rank chart on premium underwritten and percentage increase in premium xi)A rank chart based on overall points gathered based on total premium and increase in premium xii)Chart showing claims cleared and outstanding xiii)A point gathered chart based on claims cleared and outstanding xiv)An overall rank chart based on claims cleared and claims outstanding xv)An overall rank chart based on premiums and claims xvi)A rank list created by comparing both primary and secondary data 6.Recomendations 7.Conclusion 8.Bibliography 09 18 24 24 26 27 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 44 45



INTRODUCTION Insurance is a risk management technique primarily used to hedge against the risk of a contingent, uncertain loss that may be suffered by those individuals or entities who have an insurable interest in scarce resources, by transferring the possibility of this loss from one interested person, persons, or entity to another. The scarce resources referred here fall into three divisions: Human resources, Financial resources, and Capital, or Tangible resources. In the context of insurance, scarce resources are also known as "exposures," because they are "exposed" to perils, those things, or forces, which cause destruction or reduction, in the usefulness, or value, of an exposed resource. Human resources are thus exposed to perils such as illness or death; financial resources to legal judgements that may result from negligent acts, and capital resources to physical perils such as fire, theft, windstorm, and vandalism, to name but a few. A hazard is the cause of a peril. It is that thing or condition which increases the likelihood of a peril. Thus perils and hazards are identified by the exposure that they threaten. For example a slippery roadway could be viewed as a financial hazard, capital hazard, or human hazard by automobile owners, and rightly so, since this condition increases the likelihood of an automobile accident that might result in an unfavourable legal judgement, automobile damage, and bodily injury. In the context of commercial trade, insurance is further defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for consideration, payment, in the form of a risk premium. The insurance premium develops at an actuarially-determined rate. This rate is a factor used to determine the amount of premium to charge for a certain limit, and type, of insurance on the scarce resource. The premium can further be viewed as a guaranteed, known, relatively small financial loss to the insured, paid to the insurer, in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a loss to the insured resource(s). The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be indemnified. PRINCIPLES OF INSURANCE Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be an insurable risk. The principle of insurance is based on following three factors:Insurability Risks which can be insured by private companies typically share seven common characteristics: 1. Large number of similar exposure units: Since insurance operates through pooling resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit from the law of large numbers in which predicted losses are similar to the actual losses. Exceptions include Lloyd's of







London, which is famous for insuring the life or health of actors, sports figures and other famous individuals. Definite loss: The loss takes place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements. Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be pure, in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks or even purchasing a lottery ticket, are generally not considered insurable. Large loss: The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is hardly any point in paying such costs unless the protection offered has real value to a buyer. Affordable premium: If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that the insurance will be purchased, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. Calculable loss: There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.

Legal When a company insures an individual entity, there are basic legal requirements. Several commonly cited legal principles of insurance include: 1. Indemnity The insurance company indemnifies, or compensates, the insured in the case of certain losses only up to the insured's interest. 2. Insurable interest The insured typically must directly suffer from the loss. Insurable interest must exist whether property insurance or insurance on a person is involved. The concept requires that the insured have a "stake" in the loss or damage to the life or property insured. 3. Utmost good faith The insured and the insurer are bound by a good faith bond of honesty and fairness. Material facts must be disclosed. 4. Contribution Insurers which have similar obligations to the insured contribute in the indemnification, according to some method. 5. Subrogation The insurance company acquires legal rights to pursue recoveries on behalf of the insured; for example, the insurer may sue those liable for insured's loss.


6. Principle of loss minimization - In case of any loss or casualty, the asset owner must attempt to keep the loss to a minimum, as if the asset was not insured. Indemnification To "indemnify" means to make whole again, or to be reinstated to the position that one was in, to the extent possible, prior to the happening of a specified event or peril. Accordingly, life insurance is generally not considered to be indemnity insurance, but rather "contingent" insurance (i.e., a claim arises on the occurrence of a specified event). There are generally two types of insurance contracts that seek to indemnify an insured: 1. an "indemnity" policy, and 2. A "pay on behalf" or "on behalf of" policy. Under the same situation, a "pay on behalf" policy, the insurance carrier would pay the claim and the insured (the homeowner in the above example) would not be out of pocket for anything. Most modern liability insurance is written on the basis of "pay on behalf" language. EFFECTS OF INSURANCE Insurance can have various effects on society through the way that it changes who bears the cost of losses and damage. On one hand it can increase fraud, on the other it can help societies and individuals prepare for catastrophes and mitigate the effects of catastrophes on both households and societies. Insurance can influence the probability of losses through moral hazard, insurance fraud, and preventive steps by the insurance company. Insurance scholars have typically used moral hazard to refer to the increased loss due to unintentional carelessness and moral hazard to refer to increased risk due to intentional carelessness or indifference. Insurers attempt to address carelessness through inspections, policy provisions requiring certain types of maintenance, and possible discounts for loss mitigation efforts. While in theory insurers could encourage investment in loss reduction, some commentators have argued that in practice insurers had historically not aggressively pursued loss control measures - particularly to prevent disaster losses such as hurricanes - because of concerns over rate reductions and legal battles. However, since about 1996 insurers began to take a more active role in loss mitigation, such as through building codes. 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: natural or nonmonetary economies (using barter and trade with no centralized or standardized set of financial instruments) and more modern monetary economies (with markets, currency, financial instruments and so on). The former is more primitive and the insurance in such economies entails agreements of mutual aid. If one family's house is destroyed the neighbours are committed to help rebuild. Granaries housed another primitive form of insurance to indemnify against famines. Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in which insurance is part of the financial sphere), early methods of transferring or distributing risk were practised by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practised by early Mediterranean sailing merchants. Achaemenian monarchs of Ancient Persia were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads


of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices. The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. Jahez, a historian and writer, writes in one of his books on ancient Iran. 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 deliberately jettisoned in order to lighten the ship and save it from total loss. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies. Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates.

Lloyd's of London, pictured in 1991, is one of the world's leading and most famous insurance markets Some forms of insurance had developed in London by the early decades of the 17th century. For example, the will of the English colonist Robert Hayman mentions two "policies of insurance" taken out with the diocesan Chancellor of London, Arthur Duck. Hayman's will was signed and sealed on 17 November 1628 but not proved until 1633. In the late 1680s, Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships' captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market (note that it is an insurance market rather than a company) for marine and other specialist types of insurance, but it operates rather differently than the more familiar kinds of insurance.


Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses. The first insurance company in the United States underwrote fire insurance and was formed in Charles Town, South Carolina, in 1732. Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual state insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioners' organization. In recent years, some have called for a dual state and federal regulatory system (commonly referred to as the Optional federal charter (OFC)) for insurance similar to that which oversees state banks and national banks. TYPES OF INSURANCE Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give rise to claims are known as perils. An insurance policy will set out in detail which perils are covered by the policy and which is not. Below are non-exhaustive lists of the many different types of insurance that exist. A single policy may cover risks in one or more of the categories set out below. For example, vehicle insurance would typically cover both the property risk (theft or damage to the vehicle) and the liability risk (legal claims arising from an accident). Business insurance can take a number of different forms, such as the various kinds of professional liability insurance, also called professional indemnity (PI), which are discussed below under that name; and the business owner's policy (BOP), which packages into one policy many of the kinds of coverage that a business owner needs, in a way analogous to how homeowners' insurance packages the coverages that a homeowner needs.

Auto insurance

A wrecked vehicle in Copenhagen


Auto insurance protects the policyholder against financial loss in the event of an incident involving a vehicle they own, such as in a traffic collision. Coverage typically includes: 1. Property coverage, for damage to or theft of the car; 2. Liability coverage, for the legal responsibility to others for bodily injury or property damage; 3. Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses. Most countries, such as the United Kingdom, require drivers to buy some, but not all, of these coverages. When a car is used as collateral for a loan the lender usually requires specific coverage. Home insurance Home insurance provides coverage for damage or destruction of the policyholder's home. In some geographical areas, the policy may exclude certain types of risks, such as flood or earthquake that require additional coverage. Maintenance-related issues are typically the homeowner's responsibility. The policy may include inventory, or this can be bought as a separate policy, especially for people who rent housing. In some countries, insurers offer a package which may include liability and legal responsibility for injuries and property damage caused by members of the household. Health insurance Health insurance policies cover the cost of medical treatments. Dental insurance, like medical insurance, protects policyholders for dental costs. In the U.S. and Canada, dental insurance is often part of an employer's benefits package, along with health insurance. Accident, sickness and unemployment insurance

Disability insurance policies provide financial support in the event of the policyholder becoming unable to work because of disabling illness or injury. It provides monthly support to help pay such obligations as mortgage loans and credit cards. Short-term and long-term disability policies are available to individuals, but considering the expense, long-term policies are generally obtained only by those with at least six-figure incomes, such as doctors, lawyers, etc. Short-term disability insurance covers a person for a period typically up to six months, paying a stipend each month to cover medical bills and other necessities. Long-term disability insurance covers an individual's expenses for the long term, up until such time as they are considered permanently disabled and thereafter. Insurance companies will often try to encourage the person back into employment in preference to and before declaring them unable to work at all and therefore totally disabled. Disability overhead insurance allows business owners to cover the overhead expenses of their business while they are unable to work. Total permanent disability insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance.


Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expenses incurred because of a job-related injury.

Casualty Casualty insurance insures against accidents, not necessarily tied to any specific property. It is a broad spectrum of insurance that a number of other types of insurance could be classified, such as auto, workers compensation, and some liability insurances.

Crime insurance is a form of casualty insurance that covers the policyholder against losses arising from the criminal acts of third parties. For example, a company can obtain crime insurance to cover losses arising from theft or embezzlement. Political risk insurance is a form of casualty insurance that can be taken out by businesses with operations in countries in which there is a risk that revolution or other political conditions could result in a loss.

Life Life insurance provides a monetary benefit to a descendant's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity. Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies, are regulated as insurance, and require the same kinds of actuarial and investment management expertise that life insurance requires. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. In that sense, they are the complement of life insurance and, from an underwriting perspective, are the mirror image of life insurance. Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or liquidate wealth when it is needed. Burial insurance Burial insurance is a very old type of life insurance which is paid out upon death to cover final expenses, such as the cost of a funeral. The Greeks and Romans introduced burial insurance circa 600 AD when they organized guilds called "benevolent societies" which cared for the surviving families and paid funeral expenses of members upon death. Guilds in the middle Ages served a similar purpose, as did friendly societies during Victorian times. Property Insurance Property insurance provides protection against risks to property, such as fire, theft or weather damage. This may include specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler


insurance. The term property insurance may, like casualty insurance, be used as a broad category of various subtypes of insurance, some of which are listed below:

Aviation insurance protects aircraft hulls and spares, and associated liability risks, such as passenger and third-party liability. Airports may also appear under this subcategory, including air traffic control and refuelling operations for international airports through to smaller domestic exposures. Boiler insurance (also known as boiler and machinery insurance, or equipment breakdown insurance) insures against accidental physical damage to boilers, equipment or machinery. Builder's risk insurance insures against the risk of physical loss or damage to property during construction. Builder's risk insurance is typically written on an "all risk" basis covering damage arising from any cause (including the negligence of the insured) not otherwise expressly excluded. Builder's risk insurance is coverage that protects a person's or organization's insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from an insured peril.[20] Crop insurance may be purchased by farmers to reduce or manage various risks associated with growing crops. Such risks include crop loss or damage caused by weather, hail, drought, frost damage, insects, or disease.[21] Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary home insurance policies do not cover earthquake damage. Earthquake insurance policies generally feature a high deductible. Rates depend on location and hence the likelihood of an earthquake, as well as the construction of the home. Fidelity bond is a form of casualty insurance that covers policyholders for losses incurred as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees. Flood insurance protects against property loss due to flooding. Many insurers in the U.S. do not provide flood insurance in some parts of the country. In response to this, the federal government created the National Flood Insurance Program which serves as the insurer of last resort. Home insurance, also commonly called hazard insurance, or homeowners insurance (often abbreviated in the real estate industry as HOI), is the type of property insurance that covers private homes, as outlined above. Landlord insurance covers residential and commercial properties which are rented to others. Most homeowners' insurance covers only owner-occupied homes. Marine insurance and marine cargo insurance cover the loss or damage of vessels at sea or on inland waterways, and of cargo in transit, regardless of the method of transit. When the owner of the cargo and the carrier are separate corporations, marine cargo insurance typically compensates the owner of cargo for losses sustained from fire,


shipwreck, etc., but excludes losses that can be recovered from the carrier or the carrier's insurance. Many marine insurance underwriters will include "time element" coverage in such policies, which extends the indemnity to cover loss of profit and other business expenses attributable to the delay caused by a covered loss. Liability Liability insurance is a very broad superset that covers legal claims against the insured. Many types of insurance include an aspect of liability coverage. For example, a homeowner's insurance policy will normally include liability coverage which protects the insured in the event of a claim brought by someone who slips and falls on the property; automobile insurance also includes an aspect of liability insurance that indemnifies against the harm that a crashing car can cause to others' lives, health, or property. The protection offered by a liability insurance policy is twofold: a legal defence in the event of a lawsuit commenced against the policyholder and indemnification (payment on behalf of the insured) with respect to a settlement or court verdict. Liability policies typically cover only the negligence of the insured, and will not apply to results of wilful or intentional acts by the insured.

Public liability insurance covers a business or organization against claims should its operations injure a member of the public or damage their property in some way. Directors and officers liability insurance (D&O) protects an organization (usually a corporation) from costs associated with litigation resulting from errors made by directors and officers for which they are liable. Environmental liability insurance protects the insured from bodily injury, property damage and cleanup costs as a result of the dispersal, release or escape of pollutants. Errors and omissions insurance is business liability insurance for professionals such as insurance agents, real estate agents and brokers, architects, third-party administrators (TPAs) and other business professionals. Prize indemnity insurance protects the insured from giving away a large prize at a specific event. Examples would include offering prizes to contestants who can make a half-court shot at a basketball game, or a hole-in-one at a golf tournament.

Credit Credit insurance repays some or all of a loan when certain circumstances arise to the borrower such as unemployment, disability, or death.

Mortgage insurance insures the lender against default by the borrower. Mortgage insurance is a form of credit insurance, although the name "credit insurance" more often is used to refer to policies that cover other kinds of debt. Many credit cards offer payment protection plans which are a form of credit insurance. Accounts Receivable insurance also know as Credit or Trade Credit insurance is business insurance over the accounts receivables of the insured. The policy pays the policy holder for covered accounts receivable if the debtor defaults on payment.


COMPANY PROFILE Max Bupa Health Insurance Company Limited is a joint venture between Max India Limited and Bupa Finance Plc., U.K. Max Bupa believes in nurturing long term relationship with our customers by providing the highest level of quality in service. Max India Limited

Max India Limited is a multi-business corporate, driven by the spirit of enterprise and focused on people and service-oriented businesses. The Companys vision is to be one of Indias most admired corporate for Service Excellence. It 'Protect Life' through its Life Insurance subsidiary. Max New York Life Insurance, a Joint Venture between Max India and New York Life, a Fortune 100 company; It 'Care for Life' through its Healthcare company, Max Healthcare, a subsidiary of Max India Limited; It 'Enhances Life' through its Health Insurance company, Max Bupa Health Insurance, a Joint Venture between Max India and Bupa Finance Plc, UK; It 'Improve Life' through its Clinical Research business, Max Neeman Medical International, a fully owned subsidiary of Max India. Max India manufactures speciality products for the packaging industry through its division Max Speciality Films(MSF). MSF too has a strong service excellence orientation that strives on building long lasting partnerships with marquee customers. Max India Groups consolidated turnover for FY10 was Rs. 78,360 million. The consolidated operating revenue was Rs. 63,000 million, a growth of 19% over the same period last year. The Group is on a high growth path, with over 400 offices across 300 locations in the country and with people strength of 73,000 persons as on December 2010.


British United Provident Association (BUPA) BUPA was set up in 1947, in the U.K. with just 38,000 members. Bupa has developed into an internationally respected brand. Bupa serves 10 million customers in over 190 countries, with a further 20 million lives served by Health Dialog. Bupas focus is solely on health care; its what they specialize in. This focus gives them the chance to be a real leader in the healthcarethey already take care of more lives in more countries than any of their competitors across the world. Health and life cover: Bupa offers health insurance to customers around the world. They specialize in health insurance. Their health insurance plans can cover you in your own country or abroad, giving you access to their global network of hospitals and clinics, and 24 hour medical helpline. Care services: In the UK, Spain, Australia and New Zealand they also offer personalized, specialist care to residents in their nursing and residential care homes. In New Zealand they also offer retirement villages and a community alarm service. In their care homes they aim to provide the highest standard of care and services for their residents and to use their experience and knowledge to ensure that each resident, their families and friends are treated as individuals at all times. Health services: As a broad-based health care group Bupa provides a range of services, including: private medical services for insured and self-pay customers, comprehensive health assessments with medical professionals, on-site medical services for large corporations, care management and analytic services in some locations etc. Promoting health: Besides these Bupa holds many campaigns both independently and in collaboration with some players to promote health as Bupa strongly believes that one of the most important aspects of health care is preventing illness.

Max Bupa Max Bupa Health Insurance Company Ltd. (Max Bupa) is a joint venture between Max India Limited and the UK based healthcare service expert, Bupa Finance Plc., U.K. Max has joined with Bupa to provide health insurance services to discerning Indian customers. Max Bupa believes that many Indian citizens will be looking for a high quality care and customer service that Max Bupa will be well placed to offer. This venture has been undertaken based on the synergies and unique strengths that Bupa brings into it. Bupa has the expertise in creating and delivering differentiated health insurance products and a proven ability to operate in, and adapt to, international health care markets. Max India will use its own expertise and knowledge of the Indian customer preferences. The new partnership will provide a suite of products, including in patient covers, out-patient covers, to both consumer and business customers. The products for Indian market would be kept simple, accessible and affordable unlike other developed markets where, health insurance is well understood and complex products are offered. Health insurance penetration


in India is as low as 3% Max Bupa seeks to change this scenario with its range of extremely attractive policies. Vision: To be the most admired Health Insurance Company in India. Mission: To help customers live healthier and more successful lives by providing expertise as health care partners. Philosophy: To ensure access to the best possible health care to its members, while protecting their wealth and savings so that they can realize their dreams for their family. Values: Caring: We earn trust and respect through personal care. Our customer is responsive, humane and empathetic. Respectful: We respect peoples individuality and dignity and try to respond to their individual needs. Ethical: We are committed to conduct ourselves responsibly and strive to work in the best interest of customers and society at large. Accountable: We are accountable to our customers and ensure quality services, efficient processes and providing long term value. Trustworthy: We are capable of being dependent upon. We take responsibility for our conduct and obligations. Enabling: We empower people with our knowledge and expertise to help and expertise to help them choose the most appropriate solutions. Unique characteristics of Max Bupa: 1) Direct service - no TPAs (Third Party Administrators) for claims- Customers can talk directly to the company, not through any third parties. This helps in making good relation with customers. 2) Assured plan renewal for life- It assures their customers assured renewability of their policy for lifetime. 3) No age restrictions for enrollement- It cover families across life stages- from new born to senior citizens of any age. There is no minimum or maximum age for enrollement. 4) Cashless facility at quality hospitals- Customers can access cashless facility at quality hospitals. 5) Maternity and child care benefits- It provides maternity benefits after the waiting period of only 2 years. New born babies are automatically covered till the next renewal under parent family floater. 6) Most comprehensive coverage- It covers all day care procedures. Heartbeat has limited exclusions, whether it is one year, two year or permanent exclusions. It provides covers


ranging from Rs 2 lacks to Rs 50 lacks. It covers extended family through its Heartbeat family first plan. 7) High quality service- Its 247 customer helpline (1800 3010 3333-toll free) provides its customer a wide range of services including pre-authorization, handling plan and payment related queries. 8) Proactive health management- Depending upon the type of heartbeat plan chosen, it provides regular health check-ups. Its health relationship programme helps its customers to nurture and improve their health. On continue renewal. Its customers become eligible for health services and products worth up to 10% of the premium.

Products of the Max Bupa:

Max Bupa Heartbeat Health Insurance plan can be issued to an individual customer (Heartbeat Individual), a family (Heartbeat Family Floater) or an extended family (Heartbeat Family First). Heartbeat Individual and Family Floater As per Heartbeat Family Floater plan, the family includes spouse and dependent children. Dependents means legally married spouse as long as he or she continues to be married to the policyholder and unmarried children aged less than 21 years, who are financially dependent on the policyholder and do not have their own independent households. The Heartbeat Family Floater policy is available in any of the following combination: 1 Adult+1 Child, 1 Adult+2 Children, 2 Adults, 2 Adult+1 Child,2 Adult+2 Children.

Plan Options
Silver plan 2lacks 3 lacks

Plan Combinations

Individual Plan Gold Plan 5 lacks 7.5 lacks 10 lacks Platinum Plan 15 lacks 20 lacks 50 lacks Family Floater Plan .1 Adult+1 child .1 Adult+2 children .2 Adults .2 Adults+1 child .2 adults+2 children

Fig : Policy Design Heartbeat Individual and Family Floater


Sum Insured in case of Heartbeat Individual or Family Floater plan ranges from Rs 2 lacks to Rs 50 lacks depending on the plan customer choose.

Heartbeat Family Floater/Individual:Max Bupa Heart Beat Health Insurance plan can be issued to an individual customer,a family and/or extended family.The family floater policy may be available in any of the following combination. 1 adult+1 child 1adult+2 children 2adults 2 adults+2children 2adults+1child

Family includes spouse and dependent children. Premium for the family floater depends on the age of the eldest insured customer.


HEARTBEAT FAMILY FIRST: The family includes spouse and dependent children The premium for the family floater policy depends on the age of the eldest insured customer The family floater may be available in any of the below relationship with the Proposer

Product Features and Benefits: 1.Inpatient treatment 2.Hospital Accomodation 3.Pre and post hospital medical expenses 4.Daycare procedure 5.Domicilliary treatment 6.Maternity benefits 7.Newborn baby 8.Organ donor 9.Emergency ambulance 10.Specialist consultation and diagnostic test 11.Family care benefits 12.Health checkup


Research Objective: To find the real cause of underperformance needs investigation and once when the real cause has been identified, it needs to be converted into understandable information, which can be used to rectify the problem. One such similar attempt is made here to find the performance charactarestics of a health insurer Max Bupa,by comparing its performance with other players who are in the same line of business. And judging by the performance charatarestics so derived,it can be inferred whether it is underperforming or is at par, or is an above-average performer.And inturn provide suggestions on parameters on which it is lagging and leverage its position in the market.

Research Methodology: 1.SOURCES OF DATA:A sample size of 100 people has been considered for the collection of the primary data. The sample size included members within different salary slabs of 10,000 to more than 50,000.It included people who has insurance or would like to get one. Secondary data collected from quarterly public disclosures from government websites.

2.PROCESS OF INTERPRETATION OF DATA:The respondents included mostly of those people who are already using a health insurance product and most correspondents falls within pay package of 20,000 to 50,000 The primary data conducted reflects public opinion about their likeness of a particular insurance company based on parameters like third party handling ,problems ,reliability, responsiveness, assurance and empathy. The respondents were asked to give give a point on scale of 1 to 5(1-signifying very good and 5-signifying worse) based on their experience about the above mentioned parameters *(13 comapnies has to be left out due to insignificant data collection which are max bupa,bharti axa,reliance,Apollo ,star,ecgc,orion,l&t sbi,raheja,sriram,universal sompo,future generali)* Taking all the parameters mentioned above a rank created. Now to support our market survey results,it is being correlated with secondary data collected from Public Diclosures.The public disclosures do not reflect any public opinion,but main factors which weigh heavily on performance measurement are Health Insurance Premium Underwritten,Increase in Health insurance Premium Underwritten,No of Claims Settled and No of Outstanding Claims.


A rank chart formed taking into measure parameters like, Health Insurance Premium Underwritten,Increase in Health insurance Premium Underwritten,No of Claims Settled and No of Outstanding Claims. From the rank chart we can see what is current position of Max Bupa is as of date,and try and investigate the problems facing it and how to overcome them.





60% 50% 40% 30% 20% 10% 0% <10000 10001-20000 20001-50000 >50000


Percentage distribution of salary

0.6 0.5 0.4 0.3 0.2 0.1 0 1

no insurance

Covered by insurance

Percentage distribution of insured and un-insured persons


Commuity insurance employer provided(sponsored benefits) social insurance/wellfare funds

Premium based health insurance Series1 0.00% 10.00% 20.00% 30.00% 40.00%

Percentage distribution of types of insurance most favoured among the respondents


Name of the Company



Problem Solving






2 2 2 2 2 6 10 5 11 8 9

2 1 1 1 1 4 8 10 11 9 7

1 1 1 1 1 9 6 7 8 11 10

1 2 2 2 2 11 4 10 7 9 8

1 2 2 2 2 4 7 8 9 10 11

1 2 2 2 2 4 9 7 10 8 11

1 2 2 2 2 8 7 6 9 10 11

A rank chart showing possible ranks of various companies on non quantitative parameters computed from reviews and ratings obtained from consumers* Explanation Of Parameters: Tpa-(third party administration)- quality & infrastructure of tpa. Tangibility- promptness in terms of policy issue; on time home delivery of policy. simple procedures for policy issue; Problem Solving System: knowledge of customer service representative/tpa executive Reliability: acceptability of insurance policy across the promised hospitals and medical institutions Response-quality of treatment provided Assurance: applicability of the product / policy cover on customer Empathy: provision provided for treatment during break period; personalized consulting / advisory provisions


Name of Comapnies

Over all rank 1 2 2 2 2 6 7 8 9 10 11

An over all rank chart of the companies computed after taking into consideration of the above mentioned non quantitative parameters* *(13 comapnies has to be left out due to insignificant data collection which are max bupa,bharti axa,reliance,Apollo ,star,ecgc,orion,l&t sbi,raheja,sriram,universal sompo,future generali)*





Royal Sundaram(present year) Previous year TATA-AIG (present year) Previous year Reliance(present year) Previous year IFFCO Tokio(present year) Previous year ICICI Lombard(present year) Previous year Bajaj Allianz(present year) Previous year HDFC ERGO(present year) Previous year Cholamandalam(present year) Previous year Future Generali (present year) Previous year Universal Sompo (present year) Previous year Shriram(present year) Previous year Bharti Axa(present year) Previous year Raheja QBE(present year) Previous year SBI (present year) L&T(present year) Star Health & Allied Insurance(present year) Previous year Apollo Munich(present year) Previous year Max BUPA (present year) Previous year Private Total(present year) Previous year New India (present year) Previous year National(present year) Previous year United India (present year) Oriental (present year)

Gross Premium Underwritten*

77.46 47.54 36.50 34.49 79.03 66.51 58.23 33.44 423.54 399.96 109.84 89.95 123.40 83.13 51.71 42.97 37.30 32.93 12.22 7.66 0.00 0.00 39.19 14.43 0.00 0.00 1.45 0.10 406.13 316.55 67.73 39.38 14.13 2.31 1,537.97 1,211.25 741.72 644.90 513.16 389.54 540.60 391.44 322.03

Previous year * April-June, 2011 - 1st Quarter Grand total premium(public&private)= 3,655.49(present year)



ECGC Oriental United India National New India Max BUPA Apollo MUNICH Star Health & Allied Insurance L&T SBI Raheja QBE Bharti Axa Shriram Universal Sompo Future Generali Cholamandalam HDFC ERGO Bajaj Allianz ICICI Lombard IFFCO Tokio Reliance TATA-AIG Royal Sundaram 0 5 10 15 20 25 Series1


April-June, 2011 - 1st Quarter



New India

Max BUPA Apollo MUNICH Star Health & Allied L&T SBI Raheja QBE Bharti Axa Shriram Universal Sompo Future Generali Cholamandalam HDFC ERGO Bajaj Allianz ICICI Lombard IFFCO Tokio Reliance TATA-AIG Royal Sundaram 0 200 400 600 PERCENTAGE INCREASE IN PREMIUM FROM PREVIOUS YEAR

* April-June, 2011 - 1st Quarter



Rank Name Of Company Percentage Of Total Premium Gathered In Health Insurance 10 16 9 12 4 8 7 13 15 18 21 14 21 19 20 5 11 17 1 3 2 6 21 21

Rank Percentage Increase In Premium From Previous Year 5 18 13 3 17 11 7 12 15 6 19 2 19 19 19 19 4 1 14 9 8 16 19 19 Overall Points Gathered

Royal Sundaram Tata Aig Reliance Iifco Tokio Icici Lombard Bajaj Allianz Hdfc Ergo Cholamandalam Future Generali Universal Sompo Shriram Bharati Axa Raheja Qbe Sbi L&t Star Healh and Allied Apollo Munich Max Bupa New India National United India Oriental Ecgc Aic

15 34 22 15 21 19 14 25 30 24 40 16 41 41 39 24 15 18 15 12 10 22 41 41


Name Of Company United India NATIONAL Hdfc Ergo Royal Sundaram Iifco Tokio Apollo Munich New India Bharati Axa Life Insurance Max Bupa Bajaj Allianz Icici Lombard Oriental Reliance Star health&Alliance Universal Sompo Cholomandalam Future generai Tata Aig L&t Sriram Raheja Qbe Sbi Ecgc Aic

Rank Based On Overall Points(Ascending Order) 1 BEST 2 3 4 4 4 4 5 6 7 8 9 9 10 10 11 12 13 14 15 16 16 16 16 WORST

A rank chart based on overall points gathered based on total premium collected and percentage increase in premium collected from previous year



Max Bupa Bharati Axa Life insurance 2977 2017 4994 Iifco Tokio Tata Aig Royal Sundaram Oriental United India National

Claims Paid Outstanding Claims Gross

27061 36793 63854

3545 1872 5417


6938 1902 8840

89479 8029 97508

46745 24706 75451

55444 28009 83453

Hdfc Ergo

Bajaj Allianz

Icici Lombard 1194162 394420





Claims Paid Outstanding Claims

11733 4486

19211 5792

13018 6934

6 13



Gross incurred claim








New India

Apollo Munich 11303 5278 16587

Claims Paid Outstanding Claims Gross incurred claim

Star Health & Allied Insurance 66 261 332


Raheja Qbe NA NA NA



Future Generali 7386 3639 11025

24271 21373 45644


182 4 186

* April-June, 2011 - 1st Quarter


Claims Outstanding

Claims Paid

L&t Oriental Royal Sundaram Bajaj Allianz Icicc Lombard Hdfc Ergo Apollo Munich Future Generali National Iifco Tokio Reliance United India Bharati Axa Life Insurance Cholomondalam Max Bupa Sbi


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

1 2 3 4 5 6 7 9 10 11 12 8 13 14 15 16 17

Overall Points Gathered 2 4 6 8 10 12 14 17 19 21 23 20 26 28 30 22 34

Star Health & allied insurance


L&t Oriental Royal Sundaram Bajaj Allianz Icicc Lombard Hdfc Ergo Apollo Munich Future Generali National United India

Iifco tokio Sbi Reliance Bharti Cholomondalam Max bupa Star health

Rank Based on overall points gathered 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17


WORST An overall rank chart based on claims cleared and claims outstanding


Till now the rank charts formed are Homogenous in character ,i.e. taking Claims as a parameter a rank chart is made and taking Premiums another rank chart is made. Now the next attempt is to pull together all the ranks of both Premium and Claims,and construct a different rank chart so that it will reflect the over all rank achieved as of quarter ending on 31.6.2011. But to tally the two diffrenet charts together we have to consider only those insurers which are present in both the rank charts New India,Universal Sompo,Tata Aig,Sriram,raheja Qbe,Ecgc,Aic,Sbi,L&T.


Claims Paid Claims Outstanding

Oriental Royal Sundaram Bajaj Allianz Icicc Lombard Hdfc Ergo Apollo Munich Future Generali National United India

Iifco tokio Reliance Bharti Cholomondalam Max bupa Star health

1 2 3 4 5 6 7 8 11 9 10 12 13 14 15

1 2 3 4 5 6 8 9 7 10 11 12 13 14 15

Premium Underwritten Percentage (modified after excluding the ones mentioned above) 5 9 7 3 6 10 14 2 1 11 8 13 12 15 4

Percentage Increase In Premium Underwritten (modified after excluding the ones mentioned above) 14 5 10 15 6 4 13 8 7 3 12 2 11 1 9

Over all Points achieved

21 18 23 26 22 26 42 27 26 33 41 39 49 44 43

An overall rank chart based on premiums and claims


A Rank List Created Based On Both Primary And Secondary Data

Insurers Royal Sundaram Oriental Hdfc Ergo Bajaj Allianz Icicc Lombard Apollo Munich United India National Iifco tokio Bharti Axa Reliance Future Generali Star health &allied services Max Bupa Cholomondalam


Worst Based on Analysis Primary Data Of Based On Analysis Of Good Performing Companies Secondary Data Royal Sundaram TATA AIG Oriental HDFC CHUBB Hdfc Ergo BAJAJ ALLIANZ Bajaj Allianz ICICI LOMBARD Icicc Lombard IFFCO TOKIO Apollo Munich ROYAL SUNDARAM United India ORIENTAL INSURANCE National CHOLAMANDALAM Iifco tokio NEWINDIA ASSURANCE Bharti Axa UNITEDINDIA Reliance INSURANCE Future Generali NATIONAL INSURANCE Star health &allied services TATA AIG Max Bupa HDFC CHUBB Cholomondalam Not So Good BAJAJ ALLIANZ A rank list created by comparing both primary and secondary data The two charts show positions of insurers according to data collected both on basis of both Primary Data and Secondary Data. Although a perfect match could not be achieved though care has been taken to do the analysis of secondary data as meticulously as possible but, regarding primary data analysis it can not be said with utmost conviction that, they are true representation of the characters of the Insurers,but still a more or less fair comparison can be achieved through these two types of data.


The circled companies on both sides of the chart show a more or less resemblances according to both types in matter of positioning themselves with respect to one another. Companies which show strong resemblences are HDFC, BAJAJ ALIANZ,ICICI LOMBARD,UNITED INDIA,NATIONAL INSURANCE. Max Bupa despite being a new entry(2009-2010),it has been able to increase it premium undertaking from previous year by nearly 512%,which by no means is a small feat. But still it is lagging far behind in the rank chart mainly because of four particular reasons, poor market share, low on number of claims cleared and high on number of outstanding claims yet to be cleared.

RECOMENDATAIONSThe Market share Factor-

Market share of Max Bupa-0.3865% Market share of National Insurance-14% Market Share of United India-14.78% Market share of Icici Lombard-11% Market share of Bajaj Allianz-3% Market share of Hdfc-3.37% The psu companies has an incredible market share, mainly because of reasons like 1.Well known product 2.Easily affordable premium rates 3.High penetration capacity Scope of improvement for Max bupa1.A large untapped market(mainly in urban areas or in metro cities) 2.A well diversified product category. 3.No hassles of Third Party handling.

The Claims Factor-

A good health insurance product can be good as long as it is able to live upto the expectations of the customers.A customer aways expects a quick recovery of the expenses incurred through claim reprisal procedure. Percenatage of claims clearedMax Bupa-42.37%


United India-61.95% National-66.43% Icici Lombard-75% Bajaj Allianz-76% Hdfc-72% Percentage of claims unclearedMax Bupa-57.62% United India-32.74% National-33.56% Icici Lombard-24.82% Bajaj Allianz-23.16% Hdfc-27.65% All the companies listed above are using Third party Administration(TPA) when it comes clearing the claims. This add woes to the clients worry. Scope for Max BupaMax Bupa does not provide Third Party Administration, meaning it handles its claim directly. Without a Tpa it takes lesser time to process claims. Timely disbursement of claims will put forward the company in commendable position

Other Factors: The life insurance premium is being calculated at just about 25% of GDP,while that of general insurance premium being a mere 0.65% of GDP(with the least contribution from Health insurance Sector),so there is itself lies a vast untapped market which has a huge growth potential.But the majority of this untrapped market are in rural or semi urban areas. So Max Bupas high priced premium may no find many takers. The only states(10 in total)from where it has been able to gather premium as on 31st march 2011-Andra Pradesh,Gujrat,Karnataka,Keral,Maharashtra,Punjab,Rajasthan,Tami Nadu,West Bengal,Delhi.

Channel partners used-The main channel partners used by Max Bupa are Indivdual Agents(40%),Telesales(23%),Direct Business(32.35%) Channel partner that can still be used for leveraging Banks,Brokers,Referral Arrangement,Corporate Agent.


CONCLUSIONS: The projected growth of non life insurance is at 9.60% even at constant price factor, which if considered with increasing price factor stands at 15.10% So the future looks bright for non-life insurers in the future. Also if the FDI is increased from the present 26% to 49% , the market players who have formed joint venture companies will be benefitted more. Max Bupa being a joint venture between Bupa and Max will enjoy a huge leverage with the inflow of foreign funds, which will help it to take on large competitors


Bibliography Links OF Public Disclosure:http://www.bajajallianz.com/Corp/aboutus/financial-info.jsp http://www.bharti-axagi.co.in/public_disclosures/public_disclosures.aspx http://cholainsurance.com/aboutus.aspx#15 http://www.futuregenerali.in/GeneralInsurance/GeneralOther/GeneralOtherPag http://www.hdfcergo.com/AboutUs/PublicDisclosure.html http://www.icicilombard.com/app/ilom-en/AnnualReport/publicdisclosures.aspx http://www.iffcotokio.co.in/public-disclosure.html http://www.rahejaqbe.com/Home/PublicDisclosures/Insurance.html http://www.reliancegeneral.co.in/Pages/Public%20Disclosure.aspx https://www.royalsundaram.in/aboutus/annualreportss.aspx http://www.sbigeneral.in/Internet/jsp/publicdisclosures.jsp http://www.shriramgi.com/ http://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/about_tata_aig/financials.html http://universalsompo.com/financial-information.html http://www.nationalinsuranceindia.com/nicWeb/nic/fnclInfo.jsp http://www.newindia.co.in/publicdisclosures.asp http://www.orientalinsurance.org.in/OICLStatic/OICLStaticServlet?pagesource=publicDisc& loggedIn= anonymousoicl http://www.uiic.co.in/publicdisclosure.jsp http://www.aicofindia.com/AICEng/Pages/Stat_Info_home.aspx https://www.ecgc.in/Portal/IRDA/first.asp http://www.apollomunichinsurance.com/financials.aspx http://www.maxbupa.com/AboutUs/Financials.aspx http://starhealth.in/about-us#public http://www.ltinsurance.com/financial_disclosures.htm?page=about http://www.gicofindia.com/ http://www.irda.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo984&flag= 1&mid=Annual%20reports%20>>%20Annual%20reports%20of%20the%20Authority Jornals: Insurance Industry Ahead-A study by Ernst and Young Quarterly Supplementary feeds published by IRDA Indian Insurance Industry-Challenges and future prospects-A report by Datta Sai