LAKSHMI NARAIN COLLEGE OF TECHNOLOGY,(LNCT)

JABALPUR

A TRANNING PROJECT REPORT

ON

“STUDY OF CUSTOMER RELEATIONSHIP MANAGEMEMENT IN STAR

HEALTH & ALLIED INSURANCE, JABALPUR”
Towards partial fulfillment for the award of the degree of Masters of Business
Administration

Batch: 2016-18

Guided By
Mr. Shailesh Singh

Assistant Professor

Department of MBA

Submitted By
Monika Rai

MBA III Semester

Submitted to

Rani Durgavati Vishwavidyalaya, Jabalpur

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 ACKNOWLEDGEMENT

I would like to thank Mr.Arvind Chouksey & Mr. Siddharth Rai (Director) and
Dr.M.R.Khare (Principal) of the college for their blessings, motivation and
encouragement.I am deeply indebted to Dr.Sanjay Pandey, Professor & Head,
Department of MBA for ensuring that I work diligently on my project on a continuous
basis.

I am grateful to my project guide Mr. Shailesh Singh Assistant Professor ,

Department of MBA for being thoroughly involved in the completion of my project
right from the beginning till its completion, guiding me with even the minutest of
details helping some body out of your busy schedule, without any expectations of
return is a task of great appreciation. In course of my industrial training at STAR
HEALTH & ALLIED INSURANCE, Jabalpur the officers afforded me wholehearted
cooperation and guidance.

My feeling of deep gratitude for them cannot be expressed through words.

Firstly I thank Mr Shailendra Singh Rathor, Manager who kindly permitted me to
conduct my training in the company and looking after our needs throughout our stay
in the factory. I wish to thank Mr. Sanjay Jain director, for his wholehearted support
during the completion of the project.

I express my deep gratitude towards Time Office and Management

Information Section (Office Department) without whose guidance my training would
not have been a success. I also thank the other subordinate staff of STAR HEALTH
& ALLIED INSURANCE, Jabalpur without whose goodwill and guidance my training
would not have been possible

LNCT (Jabalpur) Monika Rai

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 DECLARATION

I hereby declared that the project entitled “STUDY OF CUSTOMER

RELEATIONSHIP MANAGEMEMENT IN STAR HEALTH & ALLIED INSURANCE,
JABALPUR” has been written & prepared by me under the guidance & supervision of Mr.
Shailesh Singh Asst. Prof. Department of MBA in requirement for the fulfillment of the
degree of Master of Business Administration to Rani Durgavati University, Jabalpur, M.P.

I also declare that this project is the result of my own effort & has not been presented
to any other university or institution for the award of any degree or diploma.

LNCT (Jabalpur) Monika Rai

Date :- 12/11/2017 MBA IIIrd Sem

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 LAKSHMI NARIAN COLLEGE OF TECHNOLOGY JABALPUR

Approved by AICTE, New Delhi & Affiliated to RGPV, Bhopal

& RDVV, Jabalpur Bhedaghat Chowk Jabalpur

Phone No.-0761-3207718.3207719.Fax No.-07612830

Date -:

Certificate

This is to certify that the project entitled “CUSTOMER

RELEATIONSHIP MANAGEMEMENT IN STAR HEALTH & ALLIED
INSURANCE, JABALPUR” being submitted by Miss. Monika Rai towards
partial fulfillment for the award of the degree of Master of Business
Administration submitted at Rani Durgawati University Jabalpur, M.P. is an
authentic record of her work.

The facts and the figures embodied in this report are original and are not
substantially the same as one which have been submitted earlier for the award
of degree or diploma elsewhere.

Dr.Sanjay Pandey
Professor & Head
Dept. of MBA
LNCT Jabalpur

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5
 TABLE OF CONTENT

S.NO. CONTENTS P.No.

1 Acknowledgement 2

2 Declaration 3

3 Certificate Of LNCT Jabalpur 4

4 Certificate Of STAR Health & Allied Insurance 5

5 Table of Contents 6

6 Company Overview 7

7 Introduction to subject 9

8 Swot Analysis 26

9 Benefits 30

10 Objective of The Study 35

11 Research of Methodology 36

12 Scope for future work 38

13 Data Analysis and Findings 39

14 Questionnaire 46

15 Conclusions 50

16 Bibliography 51

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 COMPANY OVERVIEW

Star Health and Allied Insurance Co Ltd commenced its operations in 2 006
with the business interests in Health Insurance, Overseas Mediclaim Policy and
Personal Accident. With no other insurance category to focus and divide our
attention, we use our resources to focus on service excellence, design products and
use core competency of innovation to deliver the best to our customers.

At Star Health Insurance, the company offers a wide range of health

insurance products at affordable prices to make health insurance every human
being’s right. As a company, single-mindedly dedicated to health insurance.

CAPITAL

We have built a promising path for our future with a capital base of Rs.733
crores. We have emerged as India’s first stand-alone Health Insurance Company,
dealing in personal accident, medi-claim and overseas travel insurance.

Under a decade, we have progressed by leaps and bounds. With a

nationwide customer base to boast off, we have raised the benchmark of the health
insurance sector.

Tata Capital invested in the company in 2013, thus increasing the company
total capital to Rs5.49 billion

VISION:
To Become The Largest And Most Preferred Health Insurance Company In India.
To Provide Financial Security for Health Care Management

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MISSION:

To Offer Wide Range of Innovative Products / Services. To Provide Prompt,

Courteous And Quality Service To Customers. To Leverage State Of Art Technology
For Customer Satisfaction. To Adopt Best Management Practices In Business
Operations.

PRODUCTS
Health insurance

a. Individual health plan

b. Family health plan

c. Senior citizen plan

Travel insurance

Accidental insurance plan

FEATURES

 India’s First Stand-Alone Health Insurance Company

 Pan India Presence With More Than 290 Branch Offices

 Cashless Hospitalization And Reimbursement Facility In With More Than 7000

Hospitals Across India

 24*7 hours call centre facility

 Hassle-Free And Customer-Friendly Direct Claim Settlement Without

Intervention Of TPA

 Health Insurance Company Of The Year 2015 - Indian Insurance Awards 2015

Personalized Doctor Visit For All Customers Getting Hospitalized

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 INTRODUCTION

What is Insurance?

Insurance is a mechanism that ensures an individual to thrive on adverse

consequences by compensating the individual, his/her loss financially. Every

individual in the world and all activities connected with him/her, be it life, profession,

business, travel or any other pursuits are subject to unforeseen and uncalled for

hazards or dangers. The benefit that an individual enjoys in his life by owning a car

or a house or a factory can be snatched by sudden accident which can render even

the individual immobile, and his family vulnerable. At this critical juncture, only

insurance helps him not only to survive but recover his loss and continue his life in a

normal manner, which would otherwise be unthinkable.

The concept of insurance is quite simple. People, who are in similar trade and

are exposed to the same risks, congregate and some to an agreement that if any

individual member suffers a loss, then the loss will be shared by others and

minimized in order to enable the individual member recover from the loss and cover

his ground. Similarly the different kinds of risks can be identified and separate

groups can be formed to counter such risks and reduce the impact to a manageable

proportion, in which the share could be collected from the members either after the

loss or in advance, at the time of admission to the group. This is an exemplary sign

of humanity and insurance therefore serves the mankind to a great extent; a point

most of the individuals tend to overlook, since monetary aspect is involved. Now

such is for tangible assets.The concept of insurance has been extended beyond the

coverage of tangible assets.

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 Exporters run the risk of importers in other country defaulting as well as

losses due to sudden fluctuations in the currency exchange rates, economic policies

turmoil. These risk are now insured. Doctors run the risk of being charged with

negligence and can subsequently liable for damages. The amount in questions can

be fairly large, beyond the capacity of individuals to bear. These are insured. Thus

insurance is extended to intangible assets. In some countries even the voice of a

singer, legs of a footballer can be insured, even though the advantage of spread may

not be available in these cases. Satisfaction of economic needs requires generation

of income from some source. If the property, which is the source of such income,

were lost fully or partially,

Permanently or temporarily, the income too would stop. The purpose of insurance is
a safeguard against such misfortunes few, through the help of the fortune many, who
Were
exposed to the same risk, but saved from the misfortune. Thus the essence of
insurance is to share losses and substitute certainty by uncertainty.
The different types of human activities that come under the umbrella of insurance are
as follows.
• House/Office/factory or any moveable - Fire Insurance

• Shipment or transportation of goods - Marine Insurance

by ship, destroyed in catastrophe.

• Jewellery/Cash/Household goods - Burglar Insurance

Stolen or robbed.

• Goods in transit by roads or railways Destroyed. - Carrier Insurance

• Theft or accident of vehicles - Vehicle Insurance

• Financial cover in ailment/surgery etc. - Health Insurance

All these are non-life insurance. In conclusion one can safely say that the
purpose of insurance be it life or non-life is to transfer the financial loss to the
insurance company who spreads in over to the policyholders.
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Characteristics of Insurance
 It is a contract for compensating losses.

 Premium is charged for Insurance Contract.

 The payment of Insured as per terms of agreement in the event of loss.

 It is a contract of good faith.

 It is a contract for mutual benefit.

 It is a future contract for compensating losses.

 It is an instrument of distributing the loss of few among many.

 The occurrence of the loss must be accidental.

 Insurance must be consistent with public policy.


Nature of Insurance

 Sharing of Risks

 C0-operative Device

 Valuation of Risk

 Payment made on contingency

 Amount of Payment

 Large Number of Insured Persons

 Insurance is not gambling

 Insurance is not charity

SCOPE OR KINDS OF INSURANCE

Broadly, insurance may be classified into the following categories:

i. Classification on the basis of nature of insurance.

ii. Classification from business point of view.

iii. Classification from risk point of view.

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I. ON THE BASIS OF NATURE OF BUSINESS
On the basis of nature of business, insurance may be the following types:
1. Life insurance

2. Fire insurance

3. Marine insurance

4. Social insurance,

5. Miscellaneous insurance.

LIFE INSURANCE

Life insurance may be defined as a contract in which the insurer, in

consideration of a certain premium, either in a lump sum or by other periodical

payments, agrees to pay to the assured, or to the person for whosen benefit the

policy is taken , the assured sum of money, on the happening of a specified event

contingent on the human life. A contract of life insurance, as in other forms of

insurance, requires that the assured must have at the time of the contract an

insurable interest in his life Upon which the insurance is affected. In a contract of life

insurance, unlike other Insurance, interest has only to be proved at the date of the

contract, and not Necessarily present at the time when the policy falls due.

A person can assure in his own life and every part of it, and can insure for any

sum whatsoever, as he likes. Similarly, a wife has an insurable interest in her

husband and vice-versa. However, mere natural love and affection is not sufficient to

constitute an insurable interest. It must be shown that the person Affectining an

assurance on the life of another is so related to that other person as to have a claim

for support. For example, a sister has an insurable interest in the life of a brother
who supports her.

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 A person not related to the other can have insurable interest on that other

person. For example creditor has insurable interest in the life of his debtor to the

extent of the debt. A creditor can insure the life of his debtor up to the amount of the

debt, at the time of issue of the policy. An employee has an insurable interest in the

life of the employer arising out of contractual obligation to employ him for a

Stipulated period at fixed salary. Similarly, from an employer to the employee who is

bound by the contract to serve for a certain period of time.

FIRE INSURANCE

Fire insurance is a contract under which the insurer in return for a

consideration (premium) agrees to indemnify the insured for the financial loss which

the latter may suffer due to destruction of or damage to property or goods, caused by

fire, during a specified period. The contract specifies the maximum amount , agreed

to by the parties at the time of the contract, which the insured can claim in case of

loss. This amount is not , however , the measure of the loss. The loss can be

ascertained only after the fire has occurred. The insurer is liable to make good the

actual amount of loss not exceeding the maximum amount fixed under the policy.

A fire insurance policy cannot be assigned without the permission of the

insurer because the insured must have insurable interest in the property at the time

of contract as well as at the time of loss. The insurable interest in goods may arise

out on account of

(i) ownership, (ii) possession, or (iii) contract.

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 A person with a limited interest in a property or goods may insure them to
cover not only his own interest but also the interest of others in them.
Under fire insurance, the following persons have insurable interest in the subject
matter:-
 Owner
 Mortgagee
 Pawnee
 Pawn broker
 Official receiver or assignee in insolvency proceedings

MARINE INSURANCE
A contract of marine insurance is an agreement whereby the insurer

undertakes to indemnity the assured in a manner and to the extent thereby agreed,

against marine Losses incidental to marine adventure perils of the seas, such as fire,

war perils, pirates, rovers, thieves, captures, Jettisons, barratry and any other perils

which are either of the like, kind or may be designed by the policy.

SOCIAL INSURANCE
Social insurance has been developed to provide economic security to weaker

sections of the society who are unable to pay the premium for adequate insurance.

Pension plans, disability benefits, unemployment benefits, sickness insurance, etc.

are the various forms of social insurance.

MISCELLANEOUS INSURANCE
The process of fast development in the society gave rise to a number of risks

or hazards. To provide security against such hazards, many other types of insurance

also have been developed. The important among them are:

a. Vehicle insurance on buses, trucks, motorcycles, etc.,

b. Personal accident insurance (by paying an annual premium of Rs. 12/-policy
worth Rs. 12000/- can be insured.)

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c. Burglary insurance-(against theft, dacoits etc.)
d. Cattle insurance: : Crop insurance may be purchased by farmers to reduce or
manage various risks associated with growing crops
e. Legality insurance

II. Classification from business point of view

From business point insurance can be classified into two broad categories:
1. Life insurance; and
2 General Insurance

GENERAL INSURANCE

General insurance business refers to fire, marine , and miscellaneous

insurance business whether carried on singly or in combination with one or more of
them but does not include capital redemption business and annuity certain business.
III. Classification from risk point of view

From risk point of view, insurance can be classified into four categories:
1. Personal insurance
2. Property insurance
3. Liability insurance
4. Fidelity guarantee insurance

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FIDELITY GUARANTEE INSURANCE

In this type of the insurer undertakes to indemnify the assured (employer)

in consideration premium, for losses arising out of fraud,or embezzlement

Insurance Sector Reforms:

In 1993, Malhotra Committee headed by former Finance Secretary and RBI

Governor R. N. Malhotra was formed to evaluate the Indian insurance industry and

recommend its future direction.

The Malhotra committee was set up with the objective of completing the

reforms initiated in the financial sector.

The reforms were aimed at “creating a more efficient and competitive financial

system suitable for the requirements of the economy keeping in mind the structural

changes currently underway and recognizing that insurance is an important part of

the overall financial system where it was necessary to address the need for the

similar reforms….”

In 1994, the committee submitted the report and some of the key

recommendations

Included:

i) Structure:

 Government stake in the insurance Companies to be brought down to 50%

 Government should take over the holdings of GIC and its subsidiaries so that

these subsidiaries can act as independent corporations.

 All these insurance companies should be given greater freedom to operate.

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ii) Competition

 Private Companies with a minimum paid up capital of Rs. 1bn should be allowed

to enter the industry.

 No company should deal in both Life and General Insurance through a single

entity.

 Foreign companies should be allowed to enter the industry with the collaboration

with the domestic companies.

 Postal Life Insurance should be allowed to operate in the rural market.

 Only one State Level Life Insurance Company should be allowed to operate in

each state

iii) Regulatory Body

 The Insurance Act should be changed.

 An Insurance Regulatory body should be set up.

 Controller of Insurance (Currently a part from the Finance Ministry) should be

made independent.

iv) Investments

 Mandatory Investments of LIC Life Fund in government securities to be reduced

from 75% to 50%.

 GIC and its subsidiaries are not to hold more than 5% in any company.

(There current holdings to be brought down to this level over a period of time)

v) Customer Service

 LIC should pay interest on delays in payments beyond 30 days.

 Insurance companies must be encouraged to set up unit linked pension plans.

 Computerization of operations and updating of technology to be carried out in the

insurance industry.

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 The committee emphasized that in order to improve the customer services and

increase the coverage of the insurance industry should be opened up to competition.

But at the same time, the committee felt the need to exercise caution as any failure

on the part of new players could ruin the public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the

minimum capital requirement of Rs. 100 crores. The committee felt the need to

provide greater autonomy to insurance companies in order to improve their

performance and enable them act as independent companies with economic

motives. For this purpose, it had proposed setting up an independent regulatory

body.

The Insurance Regulatory and Development Authority:

Reforms in the Insurance sector were initiated with the passage of the IRDA

Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory

body in April 2000 has fastidiously stuck to its schedule of framing regulations and

registering the private sector insurance companies. The other decisions taken

simultaneously to provide the supporting systems to the insurance sector and in

particular the life insurance companies were the launch of the IRDA’s online service

for issue and renewal of licenses to agents. The approval of institutions for imparting

training to agents has also ensured that the insurance companies would have a

trained workforce of insurance agents in place to sell their products, which are

expected to be introduced by early next year. Since being set up as an independent

statutory body the IRDA has put in a framework of globally compatible regulations. In

the private sector 12 life Insurance and 6 general insurance companies have been

registered.

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Restructuring of GIC

The GIC was converted into a national re-insurer and its four subsidiaries

were restructured as independent companies. In December, 2000 the Parliament

passed a bill de-linking the four subsidiaries from GIC in July, 2002. These are

National insurance co.ltd the oriental insurance co.ltd The new India assurance co

United India Insurance Co. Ltd.

Life insurance industry today

There are 24 insurance companies registered as “Life Insurance” companies.
The list is given below.

Non-Life insurance industry today

There are 28 insurance companies registered as “General Insurance”
companies.

There are 5 standalone Health Insurance companies.

Rest of the companies handle all types of general insurance business.

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LIST OF LIFE INSURANCE COMPANIES:

1. Aegon Religare Life Insurance 13. IDBI Federal Life Insurance

2. Aviva Life Insurance 14. India First Life Insurance

3. Bajaj Allianz Life Insurance 15. Kotak Mahindra Old Mutual Life

4. Bharti AXA Life Insurance Insurance

5. Birla Sun Life Insurance 16. Life Insurance Corporation

6. Canara HSBC OBC Life Insurance17. Max Life Insurance

7. DHFL Pramerica Life Insurance 18. PNB Metlife

8. Edelweiss Life Insurance 19. Reliance Life Insurance

9. Exide Life Insurance 20. Sahara India Life Insurance

10. Future Generali Life Insurance 21. SBI Life Insurance

11. HDFC Standard Life Insurance 22. Sriram Life Insurance

12. ICICI Prudential Life Insurance 23. Star Union Dai-Ichi Life Insurance

13. IDBI Federal Life Insurance

14. India First Life Insurance

15. Kotak Mahindra Old Mutual Life Insurance

16. Life Insurance Corporation

18. Max Life Insurance PNB Metlife

19. Reliance Life Insurance

20. Sahara India Life Insurance

21. SBI Life Insurance

22. Sriram Life Insurance

23. Star Union Dai-Ichi Life Insurance

24. Tata AIA Life Insurance

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List of standalone health insurance companies:

1. Apollo Munich Health Insurance

2. Cigna TTK Health Insurance

3. Max Bupa Health Insurance

4. Religare Health Insurance

5. Star Health Insurance

What is Healthcare
You have heard of the saying “Health is Wealth”. The word ‘Health’ was

derived from the word ‘hoelth’, which means ‘soundness of the body’.

Over a period of time, modern medicine has evolved into a complex science

and the goal of modern medicine is no longer mere treatment of sickness but

includes prevention of disease and promotion of quality of life. A widely accepted

definition of health is the one given by World Health Organization in 1948.

Definition
World Health Organization (WHO): Health is a state of complete physical,
mental and social wellbeing and not merely the absence of disease.

Determinants of health
It is generally believed that the following factors determine the health of any
individual:
a) Lifestyle factors
Lifestyle factors are those which are mostly in the control of the individual concerned

e.g. exercising and eating within limits, avoiding worry and the like leading to good

health; and bad lifestyles and habits such as smoking, drug abuse, unprotected sex

and sedentary life style (with no exercise) etc. leading to diseases

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b) Environmental factors

Safe drinking water, sanitation and nutrition are crucial to health, lack of which

leads to serious health issues as seen all over the world, especially in developing

countries. e.g. People working in certain manufacturing industries are prone to

diseases related to occupational hazards such as Asbestos in workers in asbestos

manufacture and also diseases of the lungs in coal miners.

c) Genetic factors

Diseases may be passed on from parents to children through genes. Such

genetic factors result in differing health trends amongst the population spread across

the globe based on race, geographical location and even communities. It is quite

obvious that a country’s social and economic progress depends on the health of its

people. A healthy population not only provides productive workforce for economic

activity but also frees precious resources which is all the more crucial for a

developing country like India. At an individual level, ill health can cause loss of

livelihood, inability to perform daily essential activities and push people to poverty

and even commit suicide.

Thus ‘spend’ on healthcare usually forms a significant part of every country’s GDP

Factors affecting the health systems in India

The Indian health system has had and continues to face many problems and

challenges. These, in turn, affect the nature and extent of the healthcare system and

the requirement at the individual level and healthcare organization at the structural

level. These are discussed below:

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Demographic or Population related trends
India is second largest populated country in the world.

This exposes us to the problems associated with population growth.

The level of poverty has also had its effect on the people’s ability to pay for medical

care.

Social trends
Increase in urbanization or people moving from rural to urban areas has posed

challenges in providing healthcare. Health issues in rural areas also remain, mainly

due to lack of availability and accessibility to medical facilities as well as affordability.

The move to a more sedentary lifestyle with reduced need to exercise oneself has

led to newer types of diseases like diabetes and high blood pressure.

Life expectancy
Life expectancy refers to the expected number of years that a child born today will

survive. Life expectancy has increased from 30 years at the time of independence to

over 60 years today but does not address the issues related to quality of that longer

lifespan.

Evolution of Health Insurance in India

While the government had been busy with its policy decisions on healthcare, it also
put in place health insurance schemes. Insurance companies came with their health
insurance policies only later. Here is how health insurance developed in India:

a) Employees’ State Insurance Scheme

Health Insurance in India formally began with the beginning of the Employees’

State Insurance Scheme, introduced vide the ESI Act, 1948, shortly after the

country’s independence in 1947. This scheme was introduced for blue-collar workers

employed in the formal private sector and provides comprehensive health services

through a network of its own dispensaries and hospitals.

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 All workers earning wages up to Rs. 15,000 are covered under the

contributory scheme wherein employee and employer contribute 1.75% and 4.75%

of pay roll respectively; state governments contribute 12.5% of the medical

expenses.

The benefits covered include:

Free comprehensive healthcare at ESIS facilities

Maternity benefit

Disability benefit

Cash compensation for loss of wages due to sickness and

survivorship and

Funeral expenses in case of death of worker

It is also supplemented by services purchased from authorized medical attendants

and private hospitals. The ESIS covers over 65.5 million Beneficiaries as of March
2012.

b) Central Government Health Scheme

The ESIS was soon followed by the Central Government Health Scheme (CGHS),

which was introduced in 1954 for the central government employees including

pensioners and their family members working in civilian jobs. It aims to provide

Comprehensive medical care to employees and their families and is partly funded by

the employees and largely by the employer (central government).

The contribution from employees is quite nominal though progressively linked to

salary scale – Rs.15 per month to Rs.150 per month.

In 2010, CGHS had a membership base of over 800,000 families representing over 3

million beneficiaries.

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c) Commercial health insurance

Commercial health insurance was offered by some of the non-life insurers

before as well as after nationalization of insurance industry. But, as it was mostly

loss making for the insurers, in the beginning, it was largely available for corporate

clients only and that too for a limited extent.

In 1986, the first standardized health insurance product for individuals and

their families was launched in the Indian market by all the four nationalized non-life

insurance companies Today, more than 300 health insurance products are available

in the Indian market.

The health insurance market today consists of a number of players some

providing the health care facilities called providers, others the insurance services and

also various intermediaries.

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 SWOT ANALYSIS

[1] STRENGTHS: 1.

Earlier entry:

Star health commences it business in 2006 as very much early as earlier as

compared to 4 other health companies.

2. Business Growth:

They growth is very much higher as compared to other co. 3.

Emerging Middle Income Group-India’s middle income group is rapidly increasing

and would be

emerging as a profitable market.

4.Huge population [2]

WEAKNESS: 1. Low

investment-
Its capital investment capital base of Rs.733 crores.Which is low?
2. Lack of awareness:
There is a lack of awareness about health insurance among people
.3. Increasing competition:
There is rising competition in health insurance market from other co. such as
Hdfchealth, maxbupa etc.
[3] OPPORTUNITIES:

1. Creation of stronger demand-

India’s improving economic fundamentals will support faster growth in per capita
income in the coming years, which will translate into stronger demand for insurance
products.

2. Strong future growth:

Strong growth can be sustained for 10-20 years,. There is plenty of room for growth
in personal accident, health and other liability classes.
3. Rise in Income and Awareness:
Rising household income and risk awareness will be the rise in more demand for
these lines of health business in the future.
[4] THREATS:
1. New Arrival:
There is danger of coming new arrival into market in health sector
2. Govt. policies:
There is chance of opposing rules and regulations by govt.

26
 HEALTH INSURANCE PLAN

Family Health Optima Insurance Plan

Features:

1. Over 400 Day Care procedures

2. Expenses incurred towards cost of Health Check up after 3 years worth Rs-5,000/-

3. Coverage for New born Baby after 16 days

4. Coverage for Domiciliary hospitalization treatments

5. Get auto recharge at no extra cost, up to 30% of sum insured.

A policy to cover the entire family

 Entry Age 16 days to 65 years; only renewals allowed after 65

years.
 Sum assured Rs.1 lakh to Rs.15 lakhs
 Premiums Rs.3,890 to Rs.34,700;Depends on sum assured, age,
charged family size and zone; based on age of oldest insured
member
 Bonus 15% to 35% depending on the sum assured
 Reinstatement of 100% for coverage of Rs.3 lakhs and above
sum assured
 Co-payment 20% of all claims for insured members of ages 61 to 65
years
 Covers Cataract surgery, Ambulance charges, Pre-Existing
diseases, Pre and Post-hospitalization expenses, Day-
care expenses

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Senior Citizens Red Carpet Health Insurance Policy:

Parents have spent their life trying to make our life secure. It’s time you do the

same for them in their old age. Senior Citizen Red Carpet Policy will help parents live

worry free and experience absolute security.

Features:
 For Senior citizens aged between 60 to 75 years.
 No pre-insurance medical test required. Covers pre-existing diseases from
the second year onwards
 Medical Consultations as an Out Patient in a Network Hospital Higher Sum
Insured coverage upto Rs.10Lakhs
 Guaranteed lifetime renewals

Co-Payment:
50% of each and every claim relating to pre-existing diseases and 30% of each and
every claim for all other claims

Pre-Existing Diseases/Illness:
Covered after 12 months of continuous coverage

Pre-Acceptance medical screening:

There is no pre-acceptance medical screening.

Tax Benefits:
Amount paid by any mode other than by cash for this insurance is eligible for relief
under Section 80D of the Income Tax Act.

FreeLook Period:
A free look period of 15 days from the date of receipt of the policy is available for
reviewing the policy terms and conditions.

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STAR HEALTH TRAVEL INSURANCE

Travelling is no more a rare, complicated .this is due to huge leaps in

technology, transportation and communication. Everyday there are people travelling

across borders and seas with the risks associated with travelling. Insurance

companies provide travelers with travel insurance that protect them from

unanticipated events like accidents, medical emergencies and even contingencies

such as flight delays, baggage delay and lost passport..

Types of Star Health Travel Insurance Policy:

Star Health Insurance recognizes the fact that their customers are looking for

different requirements .They offer different plans, each specially to suit these

requirements.

1. Star Travel Protect Insurance

2. Star Student Travel Protect Insurance
3. star health corporate travel health policy

1. Star Travel Protect Insurance Policy:

Health related emergencies while travelling will be covered by this policy.

Everything from flight delays, missed flights, emergency expenses, repatriation,

compensation for accidental injuries etc. will be covered with this policy

Eligibility:
This policy can be purchased for anyone above the age of 6 months. Only
Indian citizens can get this cover.

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Benefits:

Policyholders who are travelling outside India on vacation or business can

make use of this policy. General cover also includes possibilities like hijack distress,

medical emergencies, flight delay, repatriation etc.

It even covers third party bodily injury and property loss. Monetary loss

because of trip cancellation due to the death/injury of a family member will be

reimbursed by the company.

2. Star Student Travel Protect Insurance Policy:

If you are planning for education abroad, there are certain risks that you may

face such as medical emergencies, bereavement, litigation related risks and others.

Star Student Travel Protect Insurance Policy offers coverage for all these and much
more.

Benefits:
Reimbursed for tickets to fly home in the event of an emergency As

compassionate benefits, visit of an immediate family member and reimbursement of

academic tuition fee in case of sponsor’s death is offered with this student travel

insurance scheme.

The costs related to legal claims including that for bail bond (for false arrest or

detention) will be covered.

If the insured has caused bodily injury to third party or damage to third party
property, the costs will be covered.

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3. Star Corporate Travel Protect Insurance Policy:
Travelling across the globe for business is the norm now days, and there are

many risks associated with it. Everything from delayed baggage, accidental injuries,

missed flights travel-related risks are covered in this policy.

Available for a sum insured limit of USD 1,00,000, USD 2,50,000 and USD

5,00,000, this corporate insurance plan is available for travel to countries across the

world including Canada and USA.

Eligibility:
An insured person, his/her spouse and up to two dependent children below

18 years can be covered. They must all be Indian citizens.

The following exigency will be covered in this policy:

 Emergency medical expenses

 Hijack distress

 Compensation following accidental injuries

 Repatriation of mortal remains

 Repatriation in case of medical emergency Missed departure/connection

 Loss of your checked in baggage(up to the limits)

 Reasonable expenses incurred for obtaining new passport

 Flight delay

 paid for the amount you lost due to cancellation of your trip because of death

of a family member.

 Legal Liability charges; bodily injury or property damage to third party.

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Star Health Travel Insurance Claim Process:

 call the toll-free number to contact Star Health Insurance claims assistance

and register your claim.

 You will be asked to fill out a claims form and send it either by fax or mail,

 Must keep the following ready before making a claim: copy of passport with

immigration stamp, policy copy, original bills/invoices/receipts, copy of police

complaint

 Approval and reference number of assistance company, proof of expenses

and a copy of your e-ticket.

 Once the surveyor has assessed your case and documents, your claim will be

processed.

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 STAR HEALTH ACCIDENTAL CARE INSURANCE

Features:

 Cover for Accident death, Permanent Disability and temporary Disablement.

Compensation for Permanent Total Disablement is 150% of the sum insured.

Enhanced weekly compensation up to Rs.15000/- per week (maximum 100

weeks).

 Educational Grant for dependent children

 Cumulative bonus 5% per annum maximum 50%

Benefits:
I. Additional free benefits

II. Medical Expenses Extension

III. Coverage for Winter Sports

IV. Policy Benefits:

Table A – covers Accidental Death

Table B – covers Accidental Death and Permanent Disablement

Table C – covers Accidental Death, Permanent Disablement and Temporary Total

Disablement (Weekly Compensation)

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ADDITIONAL FREE BENEFITS:

 Educational Grant: Maximum of Rs.10,000/- per child upto 2 children in case of

Death/Permanent Total Disability of the insured person

 Ambulance Charges / Transportation Expenses of Mortal Remains: The limit of

Company’s liability is Rs.5,000/- only during the policy period.

 Travel Expenses for One Relative (Applicable for Death claims only): 1% of

 Total Sum Insured upto Rs.50,000/- subject to actual for the transport expenses

to one relative of the insured person.

 Purchase of Blood: Upto 5% of the Total sum insured subject to a maximum of

Rs.10,000/- towards the expenses incurred in purchasing blood through a

Hospital or Government approved blood bank.

 Transportation of Imported Medicines: Upto 5% of Total sum insured subject to a

maximum of Rs.20,000/- towards the expenses incurred on freight charges for

importing medicines.

 The above mentioned amounts are payable in addition to the sum insured.

ELIGIBILITY

 Any person between 18 and 70 years of age at the time of entry can

take this insurance. Lifelong renewal.

 Dependent children covered from 5 months

 Policy benefits are applicable individually for each person covered

under family

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 OBJECTIVE OF THE STUDY

 To know about market share of star health in Indian health insurance

sector?

 To understand about the company policy How to calculate premium?

 To assess the individual awareness about Health Insurance.

 To know the preference of individual regarding health insurance.

 To evaluate consumption patterns of health insurance.

 To assess the effectiveness of company services

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 RESEARCH OF METHODOLOGY

The procedures by which researchers go about their work of describing, explaining

and predicting phenomena are called methodology. Methods comprise the

procedures used for generating, collecting and evaluating data. Methods are ways of

obtaining information useful for assessing explanations.

RESEARCH DEFINITION:

The definition of research given by Creswell is "Research is a process of steps used

to collect and analyze information to increase our understanding of a topic or issue".

It consists of three steps: Pose a question, collect data to answer the question, and

present an answer to the question.

RESEARCH DESIGN:

The type of research chosen for the study is descriptive research. In descriptive

research various parameters will be chosen and analyzing the variations between

these parameters. This was done with an objective to find out the motivation level of

the employees.

DATA SOURCES:

The data collected for the study is mainly through the distribution of questionnaire; to

be precise the data collected for study was both primary and secondary sources.

PRIMARY DATA:

Primary data is the information collected for the first time; there are several methods

in which the data is complied. In this project it was obtained by mean of

questionnaires. Questionnaire was prepared and distributed to the employees.

SECONDARY DATA:

Secondary data needed for conducting research work were collected from company

websites, library and search engines.

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RESEARCH INSTRUMENT:

In this study the primary data was collected by survey technique. In this we

distributed the questionnaires to the respondents. The researcher structured the

questionnaire in the form of:

1. Close Ended Questions

2. Multiple Choice Questions

QUESTIONNAIRE:

A questionnaire is a sheet of paper containing questions relating to contain specific

aspect, regarding which the researcher collects the data. Because of their flexibility

the questionnaire method is by far the most common instrument to collect primary

data. The questionnaire is given to the respondent to be filled up.

DATA COLLECTION TOOLS

Questionnaire

SAMPLING PLAN

Sampling design is to clearly define set of objective, technically called the universe to

be studied. Sampling technique used is simple random sampling method.

SAMPLING DESIGN

This refers to the number of items to be selected from the universe to constitute a

sample.

UNIT/SIZE

The sample size for this study was taken as 100.

METHOD

Random Sampling

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 SCOPE FOR FUTURE WORK

The study is conducted on the employees in “IN STAR HEALTH & ALLIED

INSURANCE, JABALPUR”.

 The study will help the organization

 To know the present condition of Training and Development programmes.

 To know the expectation of employees towards Training and Development

programmes.

 To know the willingness of employees towards Training and Development

programmes.

LIMITATIONS OF THE PROJECT

 As the respondents were busy with their work, it was difficult for the

researcher to meet the respondents and gain information.

 The study was limited to a short period only.

 The data depends totally on the respondent's view, which may be biased.

 In this study the sample size is 100.

 The findings of the study cannot be applied to all other fields since it lacks

external validity.

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 DATA ANALYSIS AND FINDINGS

Survey has been done to know the Awareness, Preference and consumption pattern

of health insurance. By using Questionnaire method.

SAMPLE SIZE-100

Q.1 Do you have any Insurance Policy?

(a) Yes (b) No

Analysis:-The analysis shows that green symbolize of Insurance 68% Respondents

having Insurance Policy 32% Respondents don‘t have any kind of Insurance Policy.

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Q.2 Are you aware about Health Insurance?

(a)Yes (b) No

Analysis:-

The condition of health insurance in India is not up to mark. Most of the respondent

does not use health insurance to finance their medical expenditure. These people

pay for their medical expenditure from their pocket. As a result, many of these

uninsured individuals either end up with poor quality healthcare or have to bear

financial hardships. The awareness about Health insurance is very low due to many

reasons.

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Q.3 If yes, do you know benefits of health insurance?

Analysis:-

Because of lack of product benefit customer are not ready to purchase that product.

Lack of product awareness among distributors ,if they are not in position to introduce

the product to customer it will not be in a position to understand the importance and

uses of health insurance. it is rightly said that awareness develop brand equity , due

to awareness a customer recognized the product and purchase the same , a

customer is in position to identify the product because of such awareness.

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Q.4 Do you have any Health Insurance Policy?

(a) Yes (b) No

Analysis:-

54% Respondents having Health Insurance policy. 46% Respondents don‘t have

Health Insurance policy. Because lack of awareness about Health Insurance and

major issues in handling of Health Insurance 50%people not having Health

Insurance.

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Q.5 If yes, which companies plan do you avail?

(a) ICICI Lombard

(b) Bajaj Alliance

(c ) Star Allied

(d) New India Assurance

(e)Others

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Analysis:-

India‗s largest Pvt. Sectors Bank, which is also in Health insurance, ―ICICI

Lombard‖ is one of the best health insurance company and ―Star Allied

Health Insurance‖ company approximately equally preferred by the

consumers , It has been successfully able to sustain in this competitive

market. The company offer attractive products as per expectations of the

customers .Although the premium amount is high but customers still opt this

companies Insurance product. It has created as his own brand image. only

because of quality services. In case of New India Assurance company and

Bajaj Allianz the most target audience are middleclass and lower middle class

, as the companies premium amount is less than other insurance company.

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Q.6 How did you get this health Policy?

(a)Employer Provides (b) Own purchase (c) Family Provides

Analysis

The Analysis shows that 57% respondents purchased own Health Insurance .Single

premium provide lots of extra lifetime facility, as compare to family floater plan

customer will get maximum sum assured. very few companies are provide health

insurance for their employee and in case of family floater company charge more

premium as per the age of the family member.

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 QUESTIONNAIRE

Name of Respondent : -

Date: -

Gender

(a) Male (b) Female

Age (in Years)

(a) 18 - 25 (b) 26 – 35 (c) 36 - 45 (d) above 45

Qualification

(a) 12th (c) Graduate (d) Postgraduate (e) Professional

Monthly Income (in Rs.)

(a) Below 10,000 (b) 10,001-20,000 (c) 20,001-30,000 (d) above 30,000

Occupation

(a) Student (b) Private Employee (c) Govt. Employee

(d) Business Man

Q.1 Do you have any Information regarding Insurance?

(a) Yes (b) No

Q.2 Are you aware about Health Insurance?

(a)Yes (b) No

Q.3 If yes, do you know benefits of health insurance?

(a) Yes ( b ) No

Q.4 Do you have any Health Insurance Policy?

(a) Yes (b) No

Q.5 If yes, which companies plan do you avail?

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 (a) ICICI Lombard

(b) Bajaj Alliance

(c ) Star Allied

(d) New India Assurance

(e) Others

Q.6 How did you get this health Policy?

(a) Employer Provides (b) Own purchase (c) Family Provides

Q.7 How much premium do you pay annually?

(a) 1000- 5000 (b) 5001- 10000 (c) 10001 – 15000 (e) Above 15000

Q.8 Why did you purchase this health insurance plan?

(a) Health Expenses recover

(b) Tax benefits

(c) Recover Future uncertainty

Q.9 Kindly Rate The Following Factors Important To You In Opting Health
Insurance (More than one)
(a) Service of Insurer ( ) ( ) ( ) ( ) ( )

(b) Network Coverage of Hospital ( ) ( ) ( ) ( ) ( )

(c) Premium Amount ( ) ( ) ( ) ( ) ( )

(d) Coverage Amount ( ) ( ) ( ) ( ) ( ) 195

(e) Coverage of Diseases ( ) ( ) ( ) ( ) ( )

(f) Number of claims allowed per year ( ) ( ) ( ) ( ) ( )

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Q.10 How Well Do You Think, You Are Covered By Your Current Health Insurance
Policy?
(a) Definitely well-covered

(b) Probably well-covered

(c) Not well-covered

(d) Probably not well-covered

Q 11. Which according to you is the most important aspect that every health
insurance plan should cover Hospital care?
(a) Preventive care

(b) Maternity

(C) Health specialists

(d) Choice of doctors

Q.12 Your Experience With Your Current Health Insurance Company:

(a) Name of the Insurance Company…………………………

(b) Customer Service

(Excellent………Good………Bad………..Poor……..)

(c) Claim Refund….

Very Satisfied…Satisfied……..Not Much satisfied……Dissatisfied

(d) Complain Addressable System…

Very Satisfied…Satisfied……. Not much Satisfied…….Dissatisfied

(e) Role of TPA

(Very Satisfied…Satisfied…...Not Much Satisfied.....Dissatisfied 196 If Not…

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Q 13. What Are The Reasons, You Do Not Have Any Health Insurance

(a) It's Too Expensive

(b) Insurance Is Not Important, No Reason To Get It

(c) It Is Too Hard To Understand/Confusing

(d) I Do Not Have Trust On Insurance Companies

(e) Employer Sponsored Cover Is Sufficient For Me

(f) All of Them

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 CONCLUSION

 There are 5health insurance companies in India and the market share

of the STAR HEALTH INSUARANCE is 1.89% in insurance sector &

growth rate is 33.6% in July 2016 as compared to July 2015.

 The policy of the company is designed according to the budget and

requirements of the customer.

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 BIBLIOGRAPHY

Books Reference : Research Methodology Mr. M. R. Kothari

from New Age Publication

WEBSITES:

www.google.com

www.starhealth.in

www.wikipedia.org

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