final mrp project

Customers perception toward health insurance empirical study in Ahmadabad region

MBA (FS) SEM IV Page 1

A Project Report on

Management Research Project

Of

Customers Perception toward Health Insurance Empirical Study in

Ahmadabad Region

SUBMITTED BY:-

Exam No Name

01 Anand Aarti

02 Desai Gunjan

09 Rahul Nisarta

SUBMITTED TO:-

Ganpat University

GANPAT UNIVERSITY

Center for Management Studies

Ahmadabad



Certificate from the Faculty Guide

This is to certify that the dissertation submitted in partial fulfillment for the award of MBA (FS)

of Center For Management Study, Ganpat University is a result of the bonafide research work

carried out by Mr RAHUL NISARTA, Mr GUNJAN DESAI And Miss ANAND AARTI under

my supervision and guidance. No part of this report has been submitted for award of any other

degree, diploma, fellowship or other similar titles or prizes. The work has also not been

published in any journals/Magazines.

Signature of the Faculty Guide: ______________

Name of Faculty Guide: Prof. Umesh Pithadiya



Students Declaration

I hereby declare that this report, submitted in partial fulfillment of the requirement for the award

for the MBA (FS), to Center For Management Study, Ganpat University is my original work and

not used anywhere for award of any degree or diploma or fellowship or for similar titles or

prizes.

I further certify that without any objection or condition subject to the permission of the company

where I did my summer project, I grant the rights to Center For Management Study, Ganpat

University to publish any part of the project if they deem fit in journals/Magazines and

newspapers etc. without my permission.

Signature:-

MBA Program (FS) Semester IV

Exam No Name

01 Anand Aarti

02 Desai Gunjan

09 Rahul Nisarta



PREFACE

This Project Report has been prepared in partial fulfillment of the requirement for the Subject:

Project (Financial Services) of the Semester IV in the Semester 2015.

For preparing the Research Project Report, The blend of learning and knowledge acquired

during our practical studies at the company is presented in this Project Report.

Our main focus and study was on Customers Perception toward Health Insurance Empirical

Study on Ahmadabad region.

We have put up my best efforts and enumerated every possible information while collecting

Primary and secondary data.

Lastly, we have tried our level best to prepare the best informative report.



ACKNOWLEDGEMENT

It was indeed an opportunity for us to do research Customers Perception toward Health

Insurance Empirical Study on Ahmadabad Region. To Prepare a Project Report on the same

during Semester IV. During our Research study preparation, we learn many interesting things

about the Research, along with the aspects of its process and as a whole.

We would here by take this opportunity to show our gratitude towards all our faculties for

what we have learnt during Research Study. A good response, explanation of concepts and co-

operation given by whole staff helped us in gaining knowledge and solving our queries.

I feel immense pleasure to thank Prof. Umesh Pithadiya, C.M.S. Ganpat University. For

making available all faculties in fulfill the requirements for the research report.



TABLE OF CONTENTS FOR PROJECT REPORT

Sr.No Particular Page

No.

Front Page I

Certificate II

Preface III

Acknowledgement IV

1 Chapter-1

Introduction 9

2 Chapter-2

History Of Insurance 12

3 Chapter-3

Literature Review 30

4 Chapter-4

Health Insurance In India 33

5 Chapter-5

Research Methodology 46

6 Chapter-6

Data Analysis 50

Anova Test 72

7 Chapter-7

Finding 79

8 Chapter-8



Conclusion 81

9 Chapter-9

Bibliography 83

Annexture



Introduction

1. Background:-

Over the last 50 years India has achieved a lot in terms of health improvement. But still India is

way behind many fast developing countries such as China, Vietnam and Sri Lanka in health

indicators (Satia et al 1999). In case of government funded health care system, the quality and

access of services has always remained major concern. A very rapidly growing private health

market has developed in India. This private sector bridges most of the gaps between what

government offers and what people need. However, with proliferation of various health care

technologies and general price rise, the cost of care has also become very expensive and

unaffordable to large segment of population. The government and people have started exploring

various health financing options to manage problems arising out of growing set of complexities

of private sector growth, increasing cost of care and changing epidemiological pattern of

diseases.

The new economic policy and liberalization process followed by the Government of India since

1991 paved the way for privatization of insurance sector in the country. Health insurance, which

remained highly underdeveloped and a less significant segment of the product portfolios of the

nationalized insurance companies in India, is now poised for a fundamental change in its

approach and management. The Insurance Regulatory and Development Authority (IRDA) Bill,

recently passed in the Indian Parliament, is important beginning of changes having significant

implications for the health sector.

The privatization of insurance and constitution IRDA envisage to improve the performance of

the state insurance sector in the country by increasing benefits from competition in terms of

lowered costs and increased level of consumer satisfaction. However, the implications of the

entry of private insurance companies in health sector are not very clear. The recent policy

changes will have been far reaching and would have major implications for the growth and

development of the health sector. There are several contentious issues pertaining to development

in this sector and these need critical examination. These also highlight the critical need for policy

formulation and assessment. Unless privatization and development of health insurance is

managed well it may have negative impact of health care especially to a large segment of



population in the country. If it is well managed then it can improve access to care and health

status in the country very rapidly.

Health insurance as it is different from other segments of insurance business is more complex

because of serious conflicts arising out of adverse selection, moral hazard, and information gap

problems. For example, experiences from other countries suggest that the entry of private firms

into the health insurance sector, if not properly regulated, does have adverse consequences for

the costs of care, equity, consumer satisfaction, fraud and ethical standards. The IRDA would

have a significant role in the regulation of this sector and responsibility to minimize the

unintended consequences of this change.

Health sector policy formulation, assessment and implementation is an extremely complex task

especially in a changing epidemiological, institutional, technological, and political scenario.

Further, given the institutional complexity of our health sector programmes and the pluralistic

character of health care providers, health sector reform strategies in the context of health

insurance that have evolved elsewhere may have very little suitability to our country situation.

Proper understanding of the Indian health situation and application of the principles of insurance

keeping in view the social realities and national objective are important.



2.1 HISTORY OF INSURANCE IN INDIA

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (

Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in

terms of pooling of resources that could be re-distributed in times of calamities such as fire,

floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient

Indian history has preserved the earliest traces of insurance in the form of marine trade loans and

carriers contracts. Insurance in India has evolved over time heavily drawing from other

countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of the Oriental

Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the

Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870

saw the enactment of the British Insurance Act and in the last three decades of the nineteenth

century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in

the Bombay Residency. This era, however, was dominated by foreign insurance offices which

did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and

London Globe Insurance and the Indian offices were up for hard competition from the foreign

companies.

In 1914, the Government of India started publishing returns of Insurance Companies in India.

The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life

business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to

collect statistical information about both life and non-life business transacted in India by Indian

and foreign insurers including provident insurance societies. In 1938, with a view to protecting

the interest of the Insurance public, the earlier legislation was consolidated and amended by the

Insurance Act, 1938 with comprehensive provisions for effective control over the activities of

insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a

large number of insurance companies and the level of competition was high. There were also

allegations of unfair trade practices. The Government of India, therefore, decided to nationalize

insurance business.



An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life

Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16

non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The

LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and the

consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a

legacy of British occupation. General Insurance in India has its roots in the establishment of

Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian

Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of

general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of

India. The General Insurance Council framed a code of conduct for ensuring fair conduct and

sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency

margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general

insurance business was nationalized with effect from 1st January, 1973. 107 insurers were

amalgamated and grouped into four companies, namely National Insurance Company Ltd., the

New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India

Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a

company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years.

The process of re-opening of the sector had begun in the early 1990s and the last decade and

more has seen it been opened up substantially. In 1993, the Government set up a committee

under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations

for reforms in the insurance sector.The objective was to complement the reforms initiated in the

financial sector. The committee submitted its report in 1994 wherein , among other things, it

recommended that the private sector be permitted to enter the insurance industry. They stated



that foreign companies be allowed to enter by floating Indian companies, preferably a joint

venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance

Regulatory and Development Authority (IRDA) was constituted as an autonomous body to

regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in

April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance

customer satisfaction through increased consumer choice and lower premiums, while ensuring

the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for

registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the

power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000

onwards framed various regulations ranging from registration of companies for carrying on

insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were

restructured as independent companies and at the same time GIC was converted into a national

re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.

Today there are 14 general insurance companies including the ECGC and Agriculture Insurance

Corporation of India and 14 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with

banking services, insurance services add about 7% to the countrys GDP. A well-developed and

evolved insurance sector is a boon for economic development as it provides long- term funds for

infrastructure development at the same time strengthening the risk taking ability of the country.



2.2 MILESTONES IN INDIAN LIFE INSURANCE BUSINESS

1912: The Indian Life Assurance Companies Act came into force for regulating the life

insurance business.

1928: The Indian Insurance Companies Act was enacted for enabling the government to

collect statistical information on both life and non-life insurance businesses.

1938: The earlier legislation consolidated the Insurance Act with the aim of safeguarding

the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies were taken over by the

central government and they got nationalized. LIC was formed by an Act of Parliament,

viz. LIC Act, 1956. It started off with a capital of Rs. 5 crore and that too from the

Government of India.

The history of general insurance business in India can be traced back to Triton Insurance

Company Ltd. (the first general insurance company) which was formed in the year 1850 in

Kolkata by the British.

2.3 IMPORTANT MILESTONES IN THE INDIAN INSURANCE

BUSINESS

1907: The Indian Mercantile Insurance Ltd. was set up which was the first company of its

type to transact all general insurance business.

1957: General Insurance Council, an arm of the Insurance Association of India, framed a

code of conduct for guaranteeing fair conduct and sound business patterns.

1968: The Insurance Act improved for regulating investments and set minimal solvency

levels and the Tariff Advisory Committee was set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the

general insurance business in India. It was with effect from 1st January 1973.



107 insurers integrated and grouped into four companies viz. the National Insurance Company

Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the

United India Insurance Company Ltd. GIC was incorporated as a company.

Economic policy context and imperatives of liberalization of insurance sector:

There are several imperatives for opening of the insurance and health insurance sector in India

for private investment. Here we review some of these imperatives. Economic policy reforms

started during late eighties and speeded up in nineties are the context in which liberalization of

insurance sector happened in India. It was very obvious that the liberalization of the real

(productive) and financial sector of the economy has to go hand in hand. It is imperative that

these sectors are consistent with policies of each other and unless both function efficiently and

are in equilibrium, it would be difficult to ensure appropriate economic growth. Given these facts

liberalization of both sectors has to proceed simultaneously.Indian economic system has been

developed on paradigm of mixed economy in which public and private enterprises co-exist. The

past strategies of development based on socialistic thinking were focusing on the premise of

restrictions, regulations and control and less on incentives and market driven forces. This

affected the development process in the country in serious way. After the economic liberalization

the paradigm changed from central planning, command and control to market driven

development. Deregulation, decontrol, privatization, delicensing, globalization became the key

strategies to implement the new framework and encourage competition. The

social sectors did not remain unaffected by this change. The control of government expenditure,

which became a key tool to manage fiscal deficits in early 1990s, affected the social sector

spending in major way. The unintended consequences of controlling the fiscal deficits have been

reduction in capital expenditure and non-salary component of many social sector

programmes.This has led to severe resource constraints in the health sector in respect of non-

salary expenditure and this has affected the capacity and credibility of the government health

care system to deliver good quality care over the years. Given the increasing salaries, lack of

effective monitoring and lack of incentives to provide good quality services the provides in the

government sector became indifferent to the clients. Clients also did not demand good quality

and better access, as government services were free of cost.



Under this situation more and more clients turned to the private sector health providers and thus

the private sector healthcare has expanded. Given the socialistic political thinking and populist

policy it has been generally difficult for any government to introduce cost recovery in public

health sector. Given that government is unable to provide more resources for health care, and

institute cost recovery, one of the ways to reduce the under-funding and augment the resources in

the health sector was to encourage the development health insurance.

Another imperative for liberalization of the insurance sector was the need for long-term financial

resources on sustainable basis for the development of infrastructure sector such as roads,

transports etc. It was realized that during the course of economic liberalization, the funds to

development the infrastructure also became a major constraint. Country certainly needed

infrastructure development. For this the finances are major constraint. In these investments the

benefits are more social than private. The major concern was how these finances can be made

available at low costs. In past the development of social sector were financed using government

channeled funds through various semi-government financial institutions. Under the liberalized

economy this may not be possible. One hope is that if the insurance sector develops rapidly

under privatization then it can provide long-term finance to the infrastructure sector.

The financial sector, which consists of banks, financial institutions, insurance companies,

Provident funds schemes, mutual funds were all under government control. There was less

competition across these units. As a result these institutions remained significantly less

developed in their approach and management. Insurance sector has been most affected by the

government controls. Government had significant control on the policies these insurance

companies could offer and utilization of the resources mobilized by insurance companies. One

can see that most of the insurance products (e.g., life insurance products) were promoted as

mechanisms to improve the savings and tax shelters rather as risk coverage instruments. Other

segments of the insurance products grew because of the statutory obligations (e.g., Motor

Vehicle, Marine and Fire) under various acts. The management and organization of insurance

sector companies remained less developed and they neglected new product development and

marketing. Thus one of the hopes in opening of the insurance sector was that the private and

foreign companies would rapidly develop the sector and improve coverage of the population

with insurance using new products and better management.



Last imperative for opening of the insurance sector was signing the WTO India. After this there

was little choice but to open the entire financial sector - including insurance sector to private and

foreign investors. (Dholakia 1999).



2.4 LIST OF INSURANCE COMPANIES IN INDIA:-

LIFE INSURERS Websites

Public Sector

Life Insurance Corporation of India www.licindia.com

Private Sector

Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in

Birla Sun-Life Insurance Company Limited www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com

ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com

ING Vysya Life Insurance Company Limited www.ingvysayalife.com

Max New York Life Insurance Co. Limited www.maxnewyorklife.co

m

MetLife Insurance Company Limited www.metlife.com

Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.

com

SBI Life Insurance Company Limited www.sbilife.co.in



TATA AIG Life Insurance Company Limited www.tata-aig.com

AMP Sanmar Assurance Company Limited www.ampsanmar.com

Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com

GENERAL INSURERS

Public Sector

National Insurance Company Limited www.nationalinsurancein

dia.com

New India Assurance Company Limited www.niacl.com

Oriental Insurance Company Limited www.orientalinsurance.n

ic.in

United India Insurance Company Limited www.uiic.co.in

Private Sector

Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in

ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com

IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in

Reliance General Insurance Co. Limited www.ril.com



Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com

TATA AIG General Insurance Co. Limited www.tata-aig.com

Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com

Export Credit Guarantee Corporation www.ecgcindia.com

HDFC Chubb General Insurance Co. Ltd.

REINSURER

General Insurance Corporation of India www.gicindia.com

2.5 CONCEPT AND FUNCTIONS OF INSURANCE:-

Insured, are you? The functions of Insurance will give you an idea on how to go ahead with the

approach of insurance and what type of insurance to choose. In a layman's words, insurance

means, a guard against pecuniary loss arising on the happening of an unforeseen event. In

developing economies, the insurance sector still holds a lot of potential which can be tapped.

Majority of the people in the developing countries remains unaware of the functions and benefits

of insurance and it is for this reason that the insurance sector is still to grow.

Tangible or intangible an individual can insure anything! Be it a house, car, factory, or the

voice of a singer, leg of a footballer, and the hand of an author.....etc. It is possible to insure all

these as they have the possibility of becoming non functional by any disaster or an accident.



2.6 BASIC FUNCTIONS OF INSURANCE:-

1. Primary Functions

2. Secondary Functions

3. Other Functions

Primary functions of insurance

Providing protection The elementary purpose of insurance is to allow security against

future risk, accidents and uncertainty. Insurance cannot arrest the risk from taking place,

but can for sure allow for the losses arising with the risk. Insurance is in reality a

protective cover against economic loss, by apportioning the risk with others.

Collective risk bearing Insurance is an instrument to share the financial loss. It is a

medium through which few losses are divided among larger number of people. All the

insured add the premiums towards a fund and out of which the persons facing a specific

risk is paid.

Evaluating risk Insurance fixes the likely volume of risk by assessing diverse factors

that give rise to risk. Risk is the basis for ascertaining the premium rate as well.

Provide Certainty Insurance is a device, which assists in changing uncertainty to

certainty.

Secondary functions of insurance

Preventing losses Insurance warns individuals and businessmen to embrace

appropriate device to prevent unfortunate aftermaths of risk by observing safety

instructions; installation of automatic sparkler or alarm systems, etc.

Covering larger risks with small capital Insurance assuages the businessmen from

security investments. This is done by paying small amount of premium against larger

risks and dubiety.

Helps in the development of larger industries Insurance provides an opportunity to

develop to those larger industries which have more risks in their setting up.



Other functions of insurance

Is a savings and investment tool Insurance is the best savings and investment option,

restricting unnecessary expenses by the insured. Also to take the benefit of income tax

exemptions, people take up insurance as a good investment option.

Medium of earning foreign exchange Being an international business, any country

can earn foreign exchange by way of issue of marine insurance policies and a different

other ways.

Risk Free trade Insurance boosts exports insurance, making foreign trade risk free

with the help of different types of policies under marine insurance cover.

Insurance provides indemnity, or reimbursement, in the event of an unanticipated loss or disaster.

There are different types of insurance policies under the sun cover almost anything that one

might think of. There are loads of companies who are providing such customized insurance

policies.

2.7 CHALLENGES FACING INSURANCE INDUSTRY:

Threat of New Entrants: The insurance industry has been budding with new entrants

every other day. Therefore the companies should carve out niche areas such that the

threat of new entrants might not be a hindrance. There is also a chance that the big

players might squeeze the small new entrants.

Power of Suppliers: Those who are supplying the capital are not that big a threat. For

instance, if someone as a very talented insurance underwriter is presently working for a

small insurance company, there exists a chance that any big player willing to enter the

insurance industry might entice that person off.

Power of Buyers: No individual is a big threat to the insurance industry and big

corporate houses have a lot more negotiating capability with the insurance companies.

Big corporate clients like airlines and pharmaceutical companies pay millions of dollars

every year in premiums.



Availability of Substitutes: There exist a lot of substitutes in the insurance industry.

Majorly, the large insurance companies provide similar kinds of services be it auto,

home, commercial, health or life insurance.

How to choose an insurance company?

There are many factors to probe into when an investor chose an insurance company.

The consumers as well as the investors should only focus on the insurer's financial

strength and capability to meet ongoing responsibilities to its policyholders.

The fundamentals of the insurance company should be strong and should not indicate a

poor investment opportunity as this might also deter growth.



2.8 TOP INSURANCE COMPANIES IN INDIA:-

LifeInsuranceCorporationofIndia-

The Life Insurance Corporation of India (LIC) is undoubtedly India's largest life insurance

company. Fully owned by government, LIC is also the largest investor of the country. LIC has an

estimated asset of Rs. 8 Trillion. It also funds almost 24.6% of the expenses of Government of

India.

Established in 1956 and headquartered in Mumbai, Life Insurance Corporation of India has 8

zonal offices, 100 divisional offices, 2,048 branch offices and a vast network of 10,02,149 agents

spread across the country.

TataAIGInsuranceSolutions-

Tata AIG Insurance Solutions, one of the leading insurance providers in India, started its

operation on April 1, 2001. A joint venture between Tata Group (74% stake) and American

International Group, Inc. (AIG) (26% stake), Tata AIG Insurance Solutions has two different

units for life insurance and general insurance. The life insurance unit is known as Tata AIG Life

Insurance Company Limited, whereas the general insurance unit is known as Tata AIG General

Insurance Company Limited.

AVIVALifeInsurance-

AVIVA Life Insurance, one of the popular insurance companies in India, is a joint venture

between the renowned business group, Dabur and the largest insurance group in the UK, Aviva

plc. AVIVA Life Insurance has an extensive network of 208 branches and about 40

Bancassurance partnerships, spread across 3,000 cities and towns across the country. There are

more than 30,000 Financial Planning Advisers (FPAs) working for AVIAV Life Insurance. It

offers various plans like Child, Retirement, Health, Savings, Protection and Rural.



MetLifeInsurance-

MetLife India Insurance Company Limited is another popular player in Indian insurance sector.

A joint venture between the Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and

other private investors and MetLife International Holdings, Inc., MetLife Insurance offers a wide

range of financial solutions to its customers including Met Suraksha, Met Suraksha TROP, Met

Mortgage Protector and Met Suraksha Plus etc. It has its branches situated over 600 locations

across the country. More than 50,000 Financial Advisors work for MetLife.

INGVysyaLifeInsurance-

ING Vysya Life Insurance entered into the Indian insurance industry in September 2001. A joint

venture between ING Group, Ambuja Cements, Exide Industries and Enam Group, ING Vysya

Life Insurance uses its two channels, viz. the Alternate Channel and the Tied Agency Force to

distribute its products. The first channel has branches in 234 cities across the country and has got

366 sales teams. On the other hand, the later one has more than 60,000 advisors. Currently, ING

Vysya Life Insurance has tie ups with more than 200 cooperative banks.

BirlaSunLifeFinancialServices-

Birla Sun Life Financial Services is a joint venture between Aditya Birla Group and Sun Life

Financial Inc, Canada. It has got an extensive network of more than 600 branches. More than

1,75,000 empanelled advisors work for Birla Sun Life, which currently covers over 2 million

lives.



MAXNewYorkLife-

Max New York Life Insurance Company Ltd. is one of the top insurance companies in India. A

joint venture between Max India Limited and New York Life International (a part of the Fortune

100 company - New York Life), Max New York Life Insurance Company Ltd. started its

operation in April 2001. It currently has around 715 offices located in 389 cities across the

country. It also has around 75,832 agent advisors. Max New York Life offers 39 products, which

cover both, life and health insurance.

BajajAllianz-

Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE, where Bajaj

Finserv Limited holds 74% of the stake, whereas Allianz SE holds the rest 26% stake. Bajaj

Allianz has been rated iAAA by ICRA for its ability to pay claims. The company also achieved a

growth of 11% with a premium income of Rs. 2866 crore as on March 31, 2009.

BhartiAXALifeInsurance-

Bharti AXA Life Insurance, one of the top insurance companies in India, is a joint venture

between Bharti group and world leader AXA. Bharti holds 74% stakes, whereas AXA holds the

rest of 26%. Bharti AXA has its branches located in 12 states across the country. It offers a range

of individual, group and health plans for its customers. Currently more than 8000 employees

work for Bharti AXA Life Insurance.



Objective

The main objective of the research is to know the customer perception toward health

insurance and there need and the see the insurance company has completed there

satisfaction level and the customer are willing to continue the policy for a long period of

time

Another objective that survey will make the fix target that all the age limit and the make

the awareness to all the age criteria that how health policy is important and in the that

which criteria of age and occupation and income are preferring more policy and from

number of policy holder how many are satisfied by the company and going to contuse the

policy after ending the current policy holding

Limitations

The study is confined to limited period.

Accuracy of the study is purely based on the Primary and secondary data.

The analysis and conclusion made by me as per my limited understanding and there may

be something variation in the actual situation.



Health insurance is a mechanism by which a person protects himself from financial loss caused

due to accident and or disability. Though disability is not fixed, precise and immutable state

affected as it is by numerous influences, both objective and subjective, its significance to society

is that condition of ill health arising from disease or injury that prevents the individual from

pursuing his normal routine of living. The universality of the hazard of disability is everywhere

recognized; just as uncertainty is one of the fundamental facts of life (Knight 1921).

It is may be because of this reason why the earlier society looked into health insurance as a

mechanism to reduce the uncertainty attached to disability. In no line of human endeavor does

the interdependence of men manifest itself more clearly than in insurance. Although the

insurance principle is centuries old, planned achievement of security through transfer or sharing

of risk has developed only with modern society. When man lived alone or in primitive family

groups, insurance in a formal sense was unnecessary. Each family cared for its own as best it

could. When community living became more complex, men recognized the need for a system by

which they could help each other in times of adversity. From this need to have the assurance of

help in the event of misfortune grew the earliest insurance plans (Kelly 1951).

The possible way to fund the financial loss due to ill health could be either through out of pocket

payment, by paying premium to the insurance company or by contribution from the state or

central government. The natural solution is to insure against the possibility of medical illness by

poling risk with others in population. In the case of insurance, the benefit is that the annual

consumption of the family would be reduced only by the premium, the average cost of care. By

paying a fixed amount each term consumers will be able to protect themselves from large

medical cost in future. This argument for instance is based on the expected utility theory and

the premise that people generally prefer certainty to risk (Neumann and Morgenstern 1944).

According to this theory, if consumers are sufficiently averse to financial risk, firms selling

insurance can charge premium that cover the expected coverage losses plus a loading fee, and

still sell insurance.



The top ten percent of users account for nearly three quarters of total medical spending (Berk and

Monheit 2001). Therefore, in such a situation, health insurance is one important method which

helps significantly to spread the risk.

it is one of the significant drivers of improvement in the healthcare provision by encouraging

investment and innovation. This mechanism also helps in improving the quality and efficiency of

public health care system by continually benchmarking it (Ahuja 2005).

Wang et al. (2006) examined adverse selection in a subsidized voluntary health insurance

scheme, the Rural Mutual Health Care (RMHC) scheme, in a poor rural area of China. The study

was made possible by a unique longitudinal data set: the total sample includes 3492 rural

residents from 1020 households. Logistic regression was employed for the data analysis. The

results show that although the subsidized scheme achieved a considerable high enrollment rate of

71 percent of rural residents, adverse selection still existed. In general, individuals with worse

health status are more likely to enroll in RMHC than individuals with better health status.

Most Americans purchase health insurance through employers, although the percentage of

employee-sponsored coverage declined from 69% to 60% between 1999 and 2010 (Fewer

employees getting health insurance at work, 2013). Nearly 84% of the 49 million uninsured

come from families with at least one worker; 62% include at least one full-time worker

(American Public Health Association, 2012; Kaiser Family Foundation, 2012a)

.



4.1 HEALTH INSURANCE IN INDIA: CURRENT SCENARIO

Introduction

The health care system in India is characterised by multiple systems of medicine, mixed

ownership patterns and different kinds of delivery structures. Public sector ownership is divided

between central and state governments, municipal and Panchayat local governments. Public

health facilities include teaching hospitals, secondary level hospitals, first-level referral hospitals

(CHCs or rural hospitals), dispensaries; primary health centres (PHCs), sub-centres, and health

posts. Also included are public facilities for selected occupational groups like organized work

force (ESI), defence, government employees (CGHS), railways, post and telegraph and mines

among others. The private

sector (for profit and not for profit) is the dominant sector with 50 per cent of people seeking

indoor care and around 60 to 70 per cent of those seeking ambulatory care (or outpatient care)

from private health facilities. While India has made significant gains in terms of health indicators

- demographic, infrastructural and epidemiological (See Tables 1 and 2), it continues to grapple

with newer challenges. Not only have communicable diseases persisted over time but some of

them like malaria have also developed insecticide-resistant vectors while others like tuberculosis

are becoming increasingly drug resistant. HIV / AIDS has of late assumed extremely virulent

proportions. The 1990s have also seen an increase in mortality on account of non-communicable

diseases arising as a result of lifestyle changes. The country is now in the midst of a dual disease

burden of communicable and noncommunicable diseases. This is coupled with spiraling health

costs, high financial burden on the poor and erosion in their incomes. Around 24% of all people

hospitalized in India in a single year fall below the poverty line due to

Hospitalization (World Bank, 2002). An analysis of financing of hospitalization shows that large

proportion of people; especially those in the bottom four-income quintiles borrow money or sell

assets to pay for hospitalization (World Bank, 2002)

This situation exists in a scenario where health care is financed through general tax revenue,

community financing, out of pocket payment and social and private health insurance schemes.

India spends about 4.9% of GDP on health (WHR, 2002). The per capita total expenditure on



health in India is US$ 23, of which the per capita Government expenditure on health is US$ 4.

Hence, it is seen that the total health expenditure is around 5% of GDP, with breakdown of

public expenditure (0.9%); private expenditure (4.0%). The private expenditure can be further

classified as out-of-pocket (OOP) expenditure (3.6%) and employees/community financing

(0.4%). It is thus

evident that public health investment has been comparatively low. In fact as a percentage of GDP

it has declined from 1.3% in 1990 to 0.9% as at present. Furthermore, the central budgetary

allocation for health (as a percentage of the total Central budget) has been stagnant at 1.3% while

in the states it has declined from 7.0% to 5.5%.

Table 1. Socioeconomic indicators

Land area

2% of world area

Burden of disease (%)

21% of global disease burden

Population

16% of world population

Urban : Rural 28:72

Literacy rate (%)

65.38

Sanitation (%)

Rural 9.0; Urban 49.3

Safe drinking water supply

(%)

Rural 98; Urban 90.2

Poverty (%)

Below poverty line 26

Rural 27.09; Urban 23.62

Poverty line (Rs.)

Rural 327.56; Urban 454.11



4.2 Health sector and its financing: present scene and issues for the future:-

During the last 50 years India has developed a large government health infrastructure with more

than 150 medical colleges, 450 district hospitals, 3000 Community Health Centers, 20,000

Primary Health Care centers and 130,000 Sub-Health Centers. On top of this there are large

number of private and NGO health facilities and practitioners scatters though out the country.

Over the past 50 ears India has made considerable progress in improving its health status. Death

rate has reduced from 40 to 9 per thousand, infant mortality rate reduced from 161 to 71 per

thousand live births and life expectancy increased from 31 to 63 years.

However, many challenges remain and these are: life expectancy 4 years below world average,

high incidence of communicable diseases, increasing incidence of noncommunicable diseases,

neglect of women's health, considerable regional variation and threat from environment

degradation. It is estimated that at any given point of time 40 to 50 million people are on

medication for major sickness in India. About 200 million workdays are lost annually due to

sickness. Survey data indicate that about 60% people use private health providers for outpatient

treatment while 60 % use government providers for in-door treatment. The average expenditure

for care is 2-5 times more in private sector than in public sector.

India spends about 6% of GDP on health expenditure. Private health care expenditure is 75% or

4.25% of GDP and most of the rest (1.75%) is government funding. At present, the insurance

coverage is negligible. Most of the public funding is for preventive, promotive and primary care

programmers while private expenditure is largely for curative care. Over the period the private

health care expenditure has grown at the rate of 12.84% per annum and for each one percent

increase in per capital income the private health care expenditure has increased by 1.47%.

Number of private doctors and private clinical facilities are also expanding exponentially. Indian

health financing scene raises number of challenges, which are: increasing health care costs, high

financial burden on poor eroding their incomes, increasing burden of new diseases and health

risks and neglect of preventive and primary care and public health functions due to underfunding

of the government health care. Given the above scenario exploring health-financing options

becomes critical. Health Insurance is considered one of the financing mechanisms to over come

some of the problems of our system.



4.3 Consumer and social perspective on health insurance:-

With the liberalization of insurance and entry of private companies in this business it is very

important that specific interventions are developed which focus on increasing the consumer

awareness about insurance products. One of the major challenges after privatization of insurance

would be how to develop such mechanisms, which help making consumers aware about the

various intricacies of insurance plans. As of now information, knowledge and awareness of

existing insurance plans is very limited. This is also shown by the study of Gumber and Kulkarni

(2000) among the members of SEWA, ESIS and mediclaim schemes. With Consumer Protection

Act coming in force it has become easy for aggrieved consumers to complain and seek redressal

for their problems. Consumer organizations such as CERC of Ahmedabad have been helping

consumers to get due justice in disputes with the insurance companies. Their experience would

be varying valuable in guiding development of health insurance plans that are transparent and

just.

Many a times the insurance claims are rejected due to some small technical reasons. This leads to

disputes. Most of the time the conditions and various points included in insurance policy

contracts is not negotiable and these are binding on consumers. There is no analysis on what is

fair practice and what is unfair practice. Given that insurance companies are large and almost

monopoly setting the consumers is treated as secondary and they do not have opportunity to

negotiate the terms and conditions of a contract. Many times insurance companies do not strictly

follow the conditions in all cases and this create confusion and disputes. (Shah M 1999)

The most important area of dispute and unfair treatment is the knowledge and implications of

pre-exiting conditions. A number of cases of litigation are disagreement on these pre-existing

conditions. These problems also arise because of lack of specification of number of areas and

properly spelling out the conditions. This is also because some chronic conditions such as high

blood pressure and diabetes can increase the risk of may other disease of organs such as heart,

kidney, vascular and eyes diseases. The patients with these pre-existing conditions are denied

claims for treatment of complications. This is not fair and leads to disputes.

Health insurance is typically annual and has to be renewed yearly. Policy, which is not renewed

in time lapses and a new policy has to be taken out. Medical conditions detected during the



interim period are treated as pre-existing condition for the new policy, which is not fair. This is

seen as major issue as it changes the conditionalities about what constitutes pre- exiting

conditions. Courts, however, have ruled that even if there is delay in renewing the policies it

should be considered as renewed policy. In case two doctors give different reports one favouring

consumer and other insurance company, the insurance company generally follows the later

opinion. There are several such consumer-related issues, which need to be addressed in health

insurance.

One of the planks on which the insurance has been deregulated is the gain in efficiency and

passing on these benefits to the consumers. It is very unrealistic to assume that insurance

companies will be able to gain efficiency, which helps them to reduce the price of schemes. At

least one should not be expecting this thing happening in the short-run. But providing full

information to the consumer and dealing with claims in a just and expeditious manner is the

minimum expected outcome of the deregulation process. Consumer organizations have to play

very active role in future development of the health insurance sector in India.

There are several social issues such as exclusions of sexually transmitted diseases, AIDS,

delivery and maternal conditions etc. These are not socially and ethically acceptable. "Insurance

companies much take care of all the risks related to health. The companies may charge additional

premium for certain conditions. Secondly the present mediclaim policy premiums are high and

do not differentiate between people living in urban and rural areas where the costs of medical

care are different. Thus the present policy is less attractive to poor and rural people. The tax

subsidy provided to the mediclaim is also going largely to the rich who are the taxpayers.

The newer health insurance policies have to improve upon the shortcoming of the existing

policies.



4.4 Impact of Health insurance on structure and quality of private provision:-

The experiences in liberalizing the private health insurance suggest that it has undesirable effects

on the costs of health care. The costs of care generally go up. Given the present system of fee for

service and current scenario of health infrastructure in private sector, the development of

insurance will need improvements in quality and change in structure. The new investments to

improve quality will result into high cost and therefore increase in prices of insurance products.

There would be developments in the direction of exploring options of managed care, which

would help in reducing the costs. The developments would be needed in the direction of strong

information base and accreditation system for providers. The structure of the health sector will

have to change from multiple-single doctor hospitals and clinics to larger hospitals and

polyclinics, which provide services of multiple specialities and can operate at larger scale. This

will allow them to provide high quality professional care at competitive prices. As one of the

responses to these issues Third Party Administrators (TPA) are rapidly emerging in India. Here

we can learn from the models, which have emerged elsewhere. But their applicability to Indian

situation needs to be examined carefully. These aspects of the health sector will need detailed

study.

We lack adequate information base to operate insurance schemes at large scale. The insurance

mechanism prevalent in many developed countries has their history. Health reforms experiences

in many countries are replete with the suggestion that the systems cannot be replicated easily.

Self-regulation is an important in any market driven system. The regulation from outside does

not work. Implementation of regulation in this sector is difficult. We significantly lack

mechanisms and institutions, which would ensure self- regulation and continuing education of

provides and various stakeholders. The accreditation systems are hard to implement without

mechanisms to self-regulate. For example it took 35 years in US to put the accreditation system

effectively in place. For example, it has been difficult for many States in India to put nursing

homes legislation in place. Given the deterioration on standards in medical education, lack of

regulation by medical council and rising expectations of the community it is difficulty to ensure

quality standards in Indian health care system. Given this situation health insurance systems will

have to deal with this complex issue of quality of care in years to come.



4.5 Role of regulators:-

The government has established Insurance Regulatory and Development Authority (IRDA)

which is the statutory body for regulation of the whole insurance industry. They would be

granting licenses to private companies and will regulate the insurance business. As the health

insurance is in its very early phase, the role of IRDA will be very crucial. They have to ensure

that the sector develops rapidly and the benefit of the insurance goes to the consumers. But it has

to guard against the ill effects of private insurance. The main danger in the health insurance

business we see is that the private companies will cover the risk of middle class who can afford

to pay high premiums. Unregulated reimbursement of medical costs by the insurance companies

will push up the prices of private care. So large section of India's population who are not insured

will be at a relative disadvantage as they will, in future, have to pay much more for the private

care. Thus checking increase in the costs of medical care will be very important role of the

IRDA.

Secondly, IRDA will need to evolve mechanisms by which it puts some kind of statue in place

that private insurance companies do not skim the market by focusing on rich and upper- class

clients and in the process neglect a major section of India's population. They must ensure that

companies develop products for such poorer segments of the community and possibly build an

element of cross-subsidy for them. Government companies can take the lead in this matter and

catalyze new products for the poor and lower middle class as they have done in the past.

Thirdly the regulators should also encourage NGOs, Co-operatives and other collectives to inter

into the health insurance business and develop products for the poor as well as for the middle

class employed in the services sector such as education, transportation, retailing etc and the self

employed. This could be run as no-profit-no loss basis similar to the scheme pioneered by Indian

Medical Association for its members. Special licenses will have to be given to NGO for this

purpose without insisting on the minimum capital norms, which are for commercial insurance

companies.



4.6 VARIOUS HEALTH INSURANCE PRODUCTS AVAILABLE IN INDIA

The existing health insurance schemes available in India can be broadly categorized as:

Voluntary health insurance schemes or private-for-profit schemes Mandatory health insurance schemes or

government run schemes (namely ESIS, CGHS) Insurance offered by NGOs/Community based health

insurance Employer based schemes

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

In private insurance, buyers are willing to pay premium to an insurance company that pools similar risks

and insures them for health related expenses. The main distinction is that the premiums are set at a level,

which are based on assessment of risk status of the consumer (or of the group of employees) and the level

of benefits provided, rather than as a proportion of consumers income.

In the public sector, the General Insurance Corporation (GIC) and its four subsidiary companies (National

Insurance Corporation, New India Assurance Company, Oriental Insurance Company and United

Insurance Company) provide voluntary insurance schemes.

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

Mediclaim policy: - It was introduced in 1986. It reimburses the hospitalization expenses

owing to illness or injury suffered by the insured, whether the hospitalization is domiciliary or otherwise.

It does not cover outpatient treatments. Government has exempted the premium paid by individuals from

their taxable income.

Because of high premiums it has remained limited to middle class, urban tax payer segment of population.

Some of the various other voluntary health insurance schemes available in the market are :- Asha deep

plan II , Jeevan Asha plan II, Jan Arogya policy, Raja Rajeswari policy, Overseas Mediclaim policy,

Cancer Insurance policy, Bhavishya Arogya policy, Dreaded disease policy, Health Guard, Critical illness

policy, Group Health insurance policy, Shakti Shield etc. At present Health insurance is provided mainly

in the form of riders. There are very few pure health insurance policies under voluntary health insurance

schemes.



2. Mandatory health insurance schemes or government run schemes (namely

ESIS,CGHS)

Employer State Insurance Scheme (ESI):- Enacted in 1948, the employers state insurance (ESI)

Act was the first major legislation on social security in India. The scheme applies to power using factories

employing 10 persons or more and non-power & other specified establishments employing 20 persons or

more. It covers employees and the dependents against loss of wages due to sickness, maternity, disability

and death due to employment injury. It also covers funeral expenses and rehabilitation allowance.

Medical care comprises outpatient care, hospitalization, medicines and specialist care. These services are

provided through network of ESIS facilities, public care centers, non-governmental organizations (NGOs)

and empanelled private practitioners. The ESIS is financed by three way contributions from employers,

employees and the state government.

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

problems are :-

Large numbers of posts of medical staff remain vacant due to high turnover and low remuneration

compared to corporate hospitals.

Rising costs and technological advancement in super specialty treatment. Management

information is not satisfactory.

The patients are not satisfied with the services they get Low utilization of the hospitals.

In rural areas, the access to services is also a problem.All these problems indicate an urgent need for

reforms in the ESIS Scheme.

Central Government Health Insurance Scheme (CGHS):- Established in 1954, the

CGHS covers employees and retirees of the central government and certain autonomous and semi

autonomous and semi-government organizations. It also covers Members of Parliament, Governors,

accredited journalists and members of general public in some specified areas.

Benefits under the scheme include medical care, home visits/care, free medicines and diagnostic services.

These services are provided through public facilities with some specialized treatment (with

reimbursement ceilings) being permissible at private facilities. Most of the expenditure is met by the

central government as only 12% is the share of contribution.



The CGHS has been criticized from the point of view of quality and accessibility. Subscribers have

complained of high out of pocket expenses due to slow reimbursement and incomplete coverage for

private health care (as only 80% of the cost is reimbursed if referral is made to private facility, when such

facilities are not available with the CGHS).

Universal Health Insurance Scheme (UHIS):- For providing financial risk protection to the poor,

the government announced UHIS in 2003. Under this scheme, for a premium of Rs. 165 per year per

person, Rs.248 for a family of five and Rs.330 for a family of seven , health care for sum assured of Rs.

30000/- was provided. This scheme has been made eligible for below poverty line families only. To make

the scheme more saleable, the insurance companies provided for a floater clause that made any member

of family eligible as against mediclaim policy which is for an individual member. In spite of all these, the

scheme was not successful.

The reasons for failing to attract rural poor are many :-

The public sector companies who were required to implement this scheme find it to be

Potentially loss making and do not invest in propagating it. To meet the target, it is

Learnt that several field officers pay the premium under factious names. Identification of eligible families

is a difficult task Poor find it difficult to pay the entire premium at one time for future benefit, foregoing

current consumption needs. Paper work required to settle the claims is cumbersome Deficit in availability

of service providers Set back due to health insurance companies refusing to renew the previous years

policies.

In 2004, the government also provided an insurance product to the Self Help Group (SHG) for a

premium of Rs.120 and sum assured of Rs.10000/-. However, the intake is negligible. The reasons for

poor intake are similar to those cited above.



3. Insurance offered by NGOs/Community based health insurance:-

Community based schemes are typically targeted at poorer population living in communities. Such

schemes are generally run by charitable trusts or non-governmental organizations (NGOs). In these

schemes the members prepay a set amount each year for specified services. The premia are usually flat

rate (not income related) and therefore not progressive. The benefits offered are mainly in terms of

preventive care, though ambulatory and inpatient care is also covered. Such schemes tend to be financed

through patient collection, government grants and donations. Increasingly in India, CBHI schemes are

negotiating with for profit insurers for the purchase of custom designed group insurance policies.

CBHI schemes suffer from poor design and management. Often there is a problem of adverse selection as

premiums are not based on assessment of individual risk status. These schemes fail to include the poorest

of the poor. They have low membership and require extensive financial support. Other issues relate to

sustainability and replication of such schemes.

Some of the popular Community Based Health Insurance schemes are: - Self-Employed

Womens Association (SEWA), Tribuvandas Foundation (TF), The Mullur Milk Co-operative,

Sewagram, Action for Community Organization, Rehabilitation and Development (ACCORD), Voluntary

Health Services (VHS) etc.

4. Employer based schemes:-

Employers in both public and private sector offers employer based insurance schemes through their own

employer. These facilities are by way of lump sum payments, reimbursement of employees health

expenditure for outpatient care and hospitalization, fixed medical allowance or covering them under the

group health insurance schemes.

The Railways, Defense and Security forces, Plantation sector and Mining sector run their own health

services for employees and their families.



4.7 IMPLICATIONS OF PRIVATIZATION ON HEALTH INSURANCE:-

The privatization of insurance sector and constitution of IRDA envisage improving the

performance of state insurance sector in the country by increasing benefits from competition in

terms of lowered costs and increased level of consumer satisfaction. However, the implications

of the entry of private insurance companies in health sector are not very clear. There are several

contentious issues pertaining to development in this sector and these need critical examination.

Role of private insurance varies depending on the economic, social and institutional settings in a

country or a region.

Critics of private insurance argue that privatization will divert scarce resources away form the

pool, escalate health costs, allow cream skimming and adverse selection. According to this view,

private health insurance largely neglects the social aspect of health protection. In the contrast,

supporters of private health insurance claim that private insurance can bridge financing gaps by

offering consumers value for money and help them avoid waiting lines, low quality care and

under the table payments-problems often observed when households can use public health

facilities for free or participate in mandatory social insurance schemes. Both the arguments are

correct in the sense, private health insurance can be valuable tool to compliment or supplement

existing health financing options only if they are carefully managed and adapted to local needs

and preferences.

India, with relatively developed economy and a strong middle class population, offers most

promising environment for private health insurance development. Currently, private health

insurance plays only a marginal role in health care systems but it is gradually gaining

importance.

Private health insurance is certainly not the only alternative or the ultimate solution to address

alarming health care challenges in India. However, it is an option that warrants- and already

receives-growing consideration by policy makers in the country. Thus the question is not if this

tool will be used in the future but whether it will be applied to the best of its potential to serve

the needs of the countrys health care system.



RESEARCH METHODOLOGY

Types of Research Design: -Exploratory research design

Exploratory Research: - Descriptive Data.

Primary Data: - Market survey

Secondary data: - External Secondary Data: - Private Secondary Data.

Private Secondary Data: - Internet

Conclusive research: - single cross sectional, descriptive Research.

Data collection method: - Survey (Personal) surveywith the person who has health

insurance policy holder .

Data collection instrument: - Questionnaire.

Sampling Design:- customer perception towards health insurance policy

Target Population Definition: - health insurance policy holder

Target population: -Ahmedabad city health policy holder including all mis company

survey



Sampling Elements: -

Sampling Units: -

Sampling frame: - Not available.

Sampling Size: - 200

Extent: - Ahmadabad city.

Sampling Techniques: - Non-Probability convenience method.

A study on Investors Behaviour towards Mutual Fund of Corporate Employees in Ahmadabad

city

MBA (FINANCIAL SERVICES) SEM-IV APRIL-JUNE 2015

Sample Size Determination:-

Calculation:-

A conducting research on investment behaviour of corporate employees . It is using Likert scale

for measuring service quality & also he allowed 0.11 errors in measurement. Confidence level

is 95%.

Step: - 01 calculation of standard deviation.

Se = Maximum value Minimum value

6 = 5-1

6 = 4

6 = 0.67



Step: - 02 calculation of Z value.

Z = 1.64

Step: - 03 Calculation of sample size.

N = ZS 2

e = 1.64 0.67 2

0.11

N = 199.78 = 200.

Scaling Techniques: -

Data Analysis:-

Data Analysis Software: - MS Excel & SPSS.



Gender:

Gender

Frequenc

y Percent

Valid

Percent

Cumulative

Percent

Valid male 180 90.0 90.0 90.0

femal

e 20 10.0 10.0 100.0

Total 200 100.0 100.0

Hear higher value of male is 180 and lower value of female is 20 from 200 respondence there are

less female that has health insurance

Gender

femalemale

Fre

qu

en

cy

200

150

100

50

0

Gender



Age:-

Age

Frequenc

y Percent

Valid

Percent

Cumulative

Percent

Valid less 30 years 152 76.0 76.0 76.0

30-40 years 39 19.5 19.5 95.5

40-50 years 8 4.0 4.0 99.5

above 50

years 1 .5 .5 100.0

Total 200 100.0 100.0

In age criteria there are 152 people has less than 30 years and lowest is above 50 years has 1

health insurance

Age

above 50 years40-50 years30-40 yearsless 30 years

Freq

uenc

y

200

150

100

50

0

Age



Marital Status:-

Maritial status

Frequenc

y Percent

Valid

Percent

Cumulative

Percent

Valid single 55 27.5 27.5 27.5

marrie

d 145 72.5 72.5 100.0

Total 200 100.0 100.0

In marital status there are145 married has health insurance and 55 are single they has health

insurance

maritial_status

marriedsingle

Fre

quency

150

100

50

0

maritial_status



Family:-

Type of family

Frequenc

y Percent

Valid

Percent

Cumulative

Percent

Valid joint 43 21.5 21.5 21.5

nuclea

r 157 78.5 78.5 100.0

Total 200 100.0 100.0

There are nuclear has highest they has insurance and only 43 live in joint has lowest has health

insurance

TYP_fmly

nuclearjoint

Fre

quency

200

150

100

50

0

TYP_fmly



Education:-

Education

Frequency Percent Valid Percent

Cumulative

Percent

Valid primary 2 1.0 1.0 1.0

matrix 8 4.0 4.0 5.0

higher seaconday 4 2.0 2.0 7.0

graduation 101 50.5 50.5 57.5

post graduction 80 40.0 40.0 97.5

vocational 5 2.5 2.5 100.0

Total 200 100.0 100.0

The highest value of insurer are graduated and the lowest value primary education they has

health insurance

Education

vocationalpost graductiongraduationhigher

seaconday

matrixprimary

Fre

qu

en

cy

120

100

80

60

40

20

0

Education



Occupation:-

Occupation


Cumulative

Percent

Valid employed 47 23.5 23.5 23.5

self employed 37 18.5 18.5 42.0

house wife 8 4.0 4.0 46.0

unemployed 5 2.5 2.5 48.5

professional 25 12.5 12.5 61.0

family owned business 78 39.0 39.0 100.0

Total 200 100.0 100.0

The highest value in occupation 78 family business they has health insurance and the lowest

value has 5 unemployed has has less frequency

Occupation

family owned

business

professionalunemployedhouse wifeself employedemployed

Fre

quency

80

60

40

20

0

Occupation



Annual Income:-

Annual income


Cumulative

Percent

Valid less the 50000 24 12.0 12.0 12.0

50000-100000 17 8.5 8.5 20.5

100000-150000 18 9.0 9.0 29.5

150000-200000 46 23.0 23.0 52.5

above 200000 95 47.5 47.5 100.0

Total 200 100.0 100.0

The hugest value in 95 income that has above 200000 income has preferring more health

insurance and the lowest value 17 there income come between 500000-100000 preferring less

health insurance

income

above 200000150000-200000100000-15000050000-100000less the 50000

Fre

quen

cy

100

80

60

40

20

0

income



Q.10 who is your insurer?


Cumulative

Percent

Valid public company 42 21.0 21.0 21.0

private company 157 78.5 78.5 99.5

any other 1 .5 .5 100.0

Total 200 100.0 100.0

The high value 157 has there health insurance in private company and 42 lowest value has health

insurance in public company

Who_insurer

any otherprivate companypublic company

Fre

qu

en

cy

200

150

100

50

0

Who_insurer



Q.11 what type of health insurance policy you have?

Frequenc

y Percent

Valid

Percent

Cumulative

Percent

Valid individual health

insurance 132 66.0 66.0 66.0

group health

insurance 32 16.0 16.0 82.0

family floater

health insurance 35 17.5 17.5 99.5

other 1 .5 .5 100.0

Total 200 100.0 100.0

The highest value 132 has taken individual health insurance and the lowest value 1 prefer in

other

Type

otherfamily floater health

insurance

group health insuranceindividual health

insurance

Freq

uenc

y

125

100

75

50

25

0

Type



Q.12 what are the reasons for going in for health insurance policy?


Cumulative

Percent

Valid tax planning measure 13 6.5 6.5 6.5

travelling abroad 7 3.5 3.5 10.0

employers contribution 48 24.0 24.0 34.0

existing illness 4 2.0 2.0 36.0

avail good quality

medical treatement 42 21.0 21.0 57.0

risk coverage against

future illness 86 43.0 43.0 100.0

Total 200 100.0 100.0

The highest value of 88 prefer health insurance for risk covering against future illness and the

lowest 4 existing illness has taken health insurance

Reasons

risk coverage

against future

illness

avail good

quality medical

treatement

existing illnessemployers

contribution

travelling abroadtax planning

measure

Fre

quen

cy

100

80

60

40

20

0

Reasons



Q.13 who persuaded you to purchase the policy?

Frequenc

y Percent

Valid

Percent

Cumulative

Percent

Valid insurance officials 126 63.0 63.0 63.0

relative 39 19.5 19.5 82.5

friend 30 15.0 15.0 97.5

advertisment 4 2.0 2.0 99.5

income tax

advocate 1 .5 .5 100.0

Total 200 100.0 100.0

The highest value 126 has insurance official has health insurance and the lowest value of 1 that

take insurance for income tax advocate

Persuades_purchse

income tax

advocate

advertismentfriendrelativeinsurance officials

Freq

uenc

y

125

100

75

50

25

0

Persuades_purchse



Q.14 what approach was adopted in seeking health insurance coverage?


Cumulative

Percent

Valid insurance agent

seeked you out 144 72.0 72.0 72.0

you seeked out

insurance agent 56 28.0 28.0 100.0

Total 200 100.0 100.0

The highest value 144 has insurance agent seeked then out asnd the 56 lowest value you seeked

out insurance agent

Apprch_hlth_insu_covg

you seeked out insurance agentinsurance agent seeked you out

Fre

qu

en

cy

150

100

50

0

Apprch_hlth_insu_covg



Q.15 Do you agree that the services provided by the insurance companies are delivered

effectively?


Cumulative

Percent

Valid yes 105 52.5 52.5 52.5

no 67 33.5 33.5 86.0

indifferent 28 14.0 14.0 100.0

Total 200 100.0 100.0

The highest value 105 has think that service has delivered and lowest 28 has given indifferent

about the health insurance delivered

service_delver

indifferentnoyes

Fre

qu

en

cy

120

100

80

60

40

20

0

service_delver



Q.16 what is the chance of renewing the service after the health insurance expiry of present

insurance policy?


Cumulative

Percent

Valid 100% 95 47.5 47.5 47.5

50% 48 24.0 24.0 71.5

25% 43 21.5 21.5 93.0

0% 14 7.0 7.0 100.0

Total 200 100.0 100.0

The higest value has of renew 95 respondence will 100% they will renew policy and lowest

value of 14 they will not going to renew the policy

Renew_police

0%25%50%100%

Fre

qu

en

cy

100

80

60

40

20

0

Renew_police



Q.17 Are you willing to pay more for additional service, which can be included in your

health insurance package?


Cumulative

Percent

Valid yes 78 39.0 39.0 39.0

no 122 61.0 61.0 100.0

Total 200 100.0 100.0

The highest value 122 has answer no for additional pay in health insurance and 78 has response

yes pay more for health insurance policy

Pay_more

noyes

Fre

qu

en

cy

120

100

80

60

40

20

0

Pay_more



Q.18 Do you think the promotional efforts being taken by insurance company are sufficient

?


Cumulative

Percent

Valid yes 113 56.5 56.5 56.5

no 87 43.5 43.5 100.0

Total 200 100.0 100.0

The highest value of 113 response yes and lowest value 87 select no for promotional efforts

being taken by insurance company

promotion_sufficient

noyes

Fre

qu

en

cy

120

100

80

60

40

20

0

final mrp project

Documents

management study

research project report

research customers perception

research study preparation

award of mba fs of center

summer project

best informative report

project financial services