Study of Investor Perception Towards Health Insurance Pre & Post Advent of The Pandemic

Study of Investor Perception Towards
Health Insurance Pre & Post Advent of the

Pandemic
Submitted in part fulfillment of M.Com (Applied Finance)
ELISA THOMAS
121319037010
St. Francis College for Women,

Begumpet, Hyderabad, Telangana State.
2020 - 2021
DECLARATION
I, Ms. Elisa Thomas, Roll Number 121319037010, a student of M.Com II

(Applied Finance), St. Francis College for Women, Begumpet, hereby declare
that the Project Work titled ‘Study of Investor Perception towards Health
Insurance Pre & Post Advent of the Pandemic’ is my own work and has been
done by me under the supervision of Dr. R. Shiny, Department of Commerce, St.
Francis College for Women, Hyderabad.
I hereby declare that the results embodied in this work have not been submitted
to any other Institution or University for an award of Degree or Diploma.
Date: 15th May 2021
Place: Hyderabad Elisa Thomas
121319037010
M.Com II (Applied Finance)
Department of Commerce
St. Francis College for Women,
Begumpet, Hyderabad-16
i
CERTIFICATE
This is to certify that this bonafide project work titled ‘Study of Investor
Perception towards Health Insurance Per & Post Advent of the Pandemic’, has
been carried out by Ms. Elisa Thomas, bearing Roll No: 121319037010 towards
partial fulfillment of the requirements of the award of Degree of M. Com (Applied
Finance) from St. Francis College for Women, Begumpet in the academic year
2020-21.
Supervisor
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ACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude to all those who have
helped me and made it possible for me to successfully complete this project,
‘Study of Investor Perception towards Health Insurance Pre & Post Advent of the
Pandemic’.
I sincerely thank Sr. Sandra Horta, Principal of St. Francis Degree College for
Women, Begumpet for giving me this opportunity to undertake this project,
which enabled me to gain a valuable exposure.
I would like to thank Ms. S. Latha Subramaniam, Head of the Department,

Commerce for her immense support.
I express solemn gratitude to Dr. R. Shiny, my project guide, for her wholehearted
guidance and supervision throughout the process of my project preparation.
Lastly, I would like to thank all the respondents of my questionnaire without

whose cooperation; the purpose of the project would not have been fulfilled.
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TABLE OF CONTENTS
Chapter Content Page

No. No.
I INTRODUCTION 1-4
1.1 Introduction 1
1.2 Problem Statement 1
1.3 Objectives 1
1.4 Hypotheses 2
1.5 Scope 2
1.6 Importance 3
1.7 Research Methodology 3
1.8 Limitations 4
II CONCEPTUAL FRAMEWORK & REVIEW OF 5 - 26

LITERATURE
2.1 Conceptual Framework 5
2.2 Review of Literature 20
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III DATA ANALYSIS 27 - 51
IV FINDINGS, CONCLUSIONS AND SUGGESTIONS 52 - 55
4.1 Introduction 52
4.2 Findings 52
4.3 Conclusions 54
4.4 Suggestions 55
References I - II
Annexure III - VIII
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LIST OF TABLES
Table Table Title Page

No. No.
3.2.1 Gender 27
3.2.2 Age 28
3.2.3 Occupation 29
3.2.4 Annual Income 30
3.3.1 Owning a Health Insurance 31
3.3.2 Duration of the current Health Insurance 32
3.3.3 Additional Covid-19 specific Health Insurance along 33

with the existing policy
3.3.4 Risk as the reason for taking Health Insurance for the first 34
time during pandemic
3.3.5 Consideration for taking Health Insurance 35
3.3.6 Inquiries to understand Covid-19 coverage in existing or 36

intended health covers
3.3.7 Change in premium amount after the advent of the pandemic 37
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3.3.8 Health Insurance is Essential 38
3.3.9 Health Insurance is Important 39
3.3.10 Health Insurance is Mandatory 40
3.4.1 Reliability Statistics 41
3.4.2 Descriptive Statistics and Paired sample t-test of Level of 42

awareness
3.4.3 Descriptive Statistics and Paired sample t-test of Sources 44

influencing the purchase of Health Insurance
3.4.4 Descriptive Statistics and Paired sample t-test of Features of 46

Health Insurance policies influencing its purchase
3.4.5 Descriptive Statistics and Paired sample t-test of Benefits 48

influencing the choice of Health Insurance
3.4.6 Descriptive Statistics and Paired sample t-test of Preferences 50

of Investor towards different investment avenues
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LIST OF FIGURES
Figure Name of the figure Page

No. No.
3.2.1 Gender 27
3.2.2 Age 28
3.2.3 Occupation 29
3.2.4 Annual Income 30
3.3.1 Owning a Health Insurance 31
3.3.2 Duration of the current Health Insurance 32
3.3.3 Additional Covid-19 specific Health Insurance along 33

with the existing policy
3.3.4 Risk as the reason for taking Health Insurance for the 34
first time during pandemic
3.3.5 Consideration for taking Health Insurance 35
3.3.6 Inquiries to understand Covid-19 coverage in existing or 36

intended health covers
3.3.7 Change in premium amount after the advent of the pandemic 37
viii
3.3.8 Health Insurance is Essential 38
3.3.9 Health Insurance is Important 39
3.3.10 Health Insurance is Mandatory 40
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CHAPTER - I
Introduction
1.1 INTRODUCTION
For any individual, health is very crucial. But today life has become very uncertain due to
various diseases and with the emergence of the pandemic, anything can happen to anyone. The
cost of treating these diseases can cause severe financial stress on an individual. This strain and
uncertainty can be avoided with the help of Health Insurance. Health Insurance is a type of
General Insurance that covers the policyholder for any medical expenses in case of health
emergencies.
As it is said “Health is Wealth”, this saying can probably be rewritten as health is the biggest
and the most precious wealth with the emergence of Covid-19 disease. This pandemic has
driven a sudden realization about the significance of Insurance, especially with regard to the
aspects of health and life security, Health Insurance has definitely taken the front seat when it
comes to securing access to quality healthcare during the pandemic.
1.2 PROBLEM STATEMENT

Health insurance is considered as a growing segment of General Insurance in India and
especially with the advent of the pandemic, it has become more prominent. The growth of
Health Insurance mainly depends on the consumer awareness and preference towards Health
Insurance, behavior, attitude, satisfaction of consumers etc. and specially during the pandemic,
these factors became more crucial as health became the prime concern for all people around
the world. In spite of this, the above factors are not critically evaluated by the health insurance
companies. This research attempts to study investors’ perception towards Health Insurance
before and after the advent of the pandemic and the various factors that influences the investors’
decisions.
1.3 OBJECTIVES
1. To study the level of awareness towards Health Insurance in Pre and Post advent of the
Pandemic.
2. To analyze the sources influencing the purchase of Health Insurance in Pre and Post
advent of the Pandemic.
3. To analyze the features of Health Insurance policies influencing its purchase in Pre and
Post advent of the Pandemic.
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4. To identify the benefits influencing the choice of Health Insurance in Pre and Post
advent of the Pandemic.
5. To identify the change in preference towards Health Insurance in Pre and Post advent
of the Pandemic.
1.4 HYPOTHESES
H0 = There is no significant difference between the level of awareness towards Health

Insurance in Pre and Post advent of Pandemic.
H1 = There is significant difference between the level of awareness towards Health Insurance
in Pre and Post advent of Pandemic.
H0 = There is no significant difference between the sources influencing the purchase of Health
H1 = There is significant difference between the sources influencing the purchase of Health
H0 = There is no significant difference between the features of Health Insurance influencing its
purchase in Pre and Post advent of Pandemic.
H1 = There is significant difference between the features of Health Insurance influencing its
purchase in Pre and Post advent of Pandemic.
H0 = There is no significant difference between the benefits influencing the choice of Health
H1 = There is significant difference between the benefits influencing the choice of Health
H0 = There is no significant difference between the preference of investors towards different

Health Insurance in Pre and Post advent of Pandemic.
H1 = There is significant difference between the preference of investors towards Health
1.5 SCOPE
The scope of the study only covers about Health Insurance. The study has been taken only to
understand the investors’ preference, importance, perception and knowledge towards Health
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Insurance pre and post advent of pandemic. This study is restricted to a small sample size and
the respondents have been taken from the geographical area of Hyderabad and Secunderabad
cities only.
1.6 IMPORTANCE
This study is important because health was the primary concern of all during the pandemic and
this study will help to identify whether the pandemic affects the Health Insurance investors or
not. This study also helps to understand the impact of the pandemic on Health Insurance and
also identify the factors that influence the investor’s decision pre and post advent of the
pandemic.
1.7 RESEARCH METHODOLOGY
1.7.1 Data
The present study is based on both primary data and secondary data. Primary data has been
collected by means of well-designed questionnaire which was circulated to 100 respondents.
Secondary data was collected from journals, research papers and websites and they were used
for the conceptual framework and review of literature of the study.
1.7.2 Time period
Data from the respondents has been collected by means of well-designed questionnaire during
March-April 2021.
1.7.3 Tools and Technique
For collecting the data from the respondents, Likert 5-point scale was used. Percentage
Analysis, Cronbach’s Alpha and Paired Sample T-Test were used for analyzing the data using
SPSS software.
1.7.4 Sample Size
A sample size of 100 was considered for this study.
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1.8 LIMITATIONS
This study is based on primary data and a sample size of 100 has been collected for this purpose,
which is a very small sample size. The data has been collected from respondents from the
geographical area of Hyderabad and Secunderabad cities only. The study is based on the
subjective perception of the respondents and not on actual behavior, hence there is an element
of bias as it is an individual’s perception.
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CHAPTER - II
Conceptual Framework
& Review of Literature
2.1 CONCEPTUAL FRAMEWORK
Meaning of Health Insurance
Health Insurance is an agreement between the insurer Insurance company) and the insured
(policyholder), whereby insurance company agrees to undertake a guarantee of compensation
for medical expenses in case the insured falls ill or meets with an accident which leads to
hospitalization of the insured. These expenses could be related to hospitalization costs, cost of
medicines or doctor consultation fees. Health Insurance reduces the risks and unpredictability
inherent in a consumer’s health care expenses and keeps the health care cost predictable and
affordable.
Definition
Section 2 (6C) of Insurance Act,1938 defines Health Insurance Business as under: “Health
Insurance business” means the effecting of contracts which provide for sickness benefits or
medical, surgical or hospital expense benefits, whether in-patient or out-patient travel cover
and personal accident cover.”
According to the Health Insurance Association of America (AHIP), Health Insurance is defined
as "coverage that provides for the payments of benefits as a result of sickness or injury. It
includes insurance for losses from accident, medical expense, disability, or accidental death
and dismemberment."
Importance of Health Insurance
Buying a Health Insurance policy for oneself and for the family is important because medical
care is expensive, especially in the private sector. Medicare or medical costs are rising year on
year. As a matter of fact, inflation in Medicare is higher than inflation in food and other articles.
While inflation in food and clothing is in single digits, Medicare costs usually escalate in double
digits. For an individual who hasn’t saved that much money, arranging for funds at the eleventh
hour can be a task and hospitalization can burn a hole in the pocket.
No one plans to fall ill or get hurt, but a serious illness can strike anyone at any time. The cost
of treating the illness can cause severe financial strain on the savings that was accumulated
over time. This can be avoided by just paying a small annual premium which would lessen the
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stress in case of medical emergencies. The following are the reasons as to why Health Insurance
is required.
• Savings:
The best part about health insurance is it helps to keep the savings intact in case there
is a medical emergency. The insurer will take care of all the expenses such as
hospitalization, drugs/medicines, etc. A Health Insurance plan is a trusted way to ensure
a healthy and financially stable future.
• Security of Family’s health:
Protecting the health of oneself and the family members or parents is necessary. One
can protect their family members by investing regularly in the family floater
plan wherein the investor can also get health cover for their parents. This type of Health
Insurance ensures that all types of medical treatments are covered.
• Medical Inflation:
The healthcare treatment cost is rising day by day due to an increase in the number of
diseases and improvement in medical technology. While the healthcare costs are not
just restricted to hospitalization costs but also includes ambulance expenses, diagnosis
tests, medicine, room rent charges etc. are also rising at very swift rate. Therefore, at
the time of medical emergency there is no need to worry about the expenses if he/she
has Health Insurance.
• Lifestyle changes:
The fast-paced lives have influenced the lifestyle choices. Work stress, indulgence in
junk food, environmental changes, etc., are affect the overall health, and this could lead
to life-threatening diseases such as cancer, liver problem, kidney failure and so on. In
such situations, Health Insurance will cover the medical and surgical expenses incurred
during an illness.
Features
• Coverage Amount:
At the time of selecting a Health Insurance plans, a person should select the amount
wisely as it covers the medical expenses for a year. Age must be taken into account, the
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younger a person is, lower would be the sum insured he /she needs. The person should
also take a look at his or her income levels to analyze the premium affordability.
• Illness Covered
A person should choose a health plan that secures him/her against a wide range of
medical problems, and provides benefits including pre and post hospitalization, daycare
expenses, transportation, illnesses that a person may be at risk of due to his/her family's
medical history, etc. If a person intends to buy Health Insurance for the family, then
they should check whether the policy meets the needs of each member of the family.
• Large Network of Hospitals:

A hospital that has an agreement with an Insurance company for providing cashless
treatment is referred to as a Network Hospital. One should always prefer an Insurance
provider that has a wide network of hospitals across the world.
• Cashless treatment:
This feature allows the benefit to get admitted to any listed hospital as per the list of
hospitals of the Insurance provider without paying anything for treatment. This saves
the relatives and friends of the person who has been admitted with stress of arranging
money in case of emergency.
• Duration of Health Cover:

When a person plans to buy a health cover, they should check for how many years the
plan will cover them and whether it offers limited renewability or not because a person
will require a health plan the most during the later years of age.
• Pre and Post Hospitalization:

Pre‐hospitalization expenses refer to costs that the insured incur prior to admission in a
healthcare facility or hospital. On the other hand, post‐hospitalization expenses
constitute medical expenditure after discharge. This feature covers pre and post
hospitalization charges for a month or 60 days and the person is reimbursed after
submitting bills and other expense related documents incurred during the period of
hospitalization.
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• Medical Check-Up Facility:
Some Health policies have an inbuilt preventive health check facility. This can be very
useful for diagnosing lifestyle diseases early on in their cycle.
• Co-payment:
Some Health Plans will mandate that the policyholder bears a percentage of the total
expenses. This feature is known as 'co-pay' and is a clear disadvantage. If the policy
includes co-payment, it should be ensured that it isn't more than 10%.
• Sub-Limit:
Sub-limit is one of the most critical features of Health Insurance to be considered while
deciding on a plan. In case of hospitalization, the total cost incurred is the sum of
various factors such as room rent, surgery fees, cost of medicines, cost of equipment
etc. Sub-limit means that there will be a separate cap on the reimbursement of each of
these factors. Sub-limits are mostly applied with an option of reduced premium amount.
• Lifetime Renewability:
As the age progresses, it becomes difficult to get health cover and also, the premium
increases. This is where lifetime renewability stands out as a welcome feature. Until
recently, most of the insurance companies had put a limit of 65-70 years of age for
health insurance. However, according to the revised guidelines of the IRDAI, all Health
Insurance providers have to offer lifetime renewability. Once the insurer offers a Health
Insurance policy plan, they are required to keep on renewing it until the policyholder’s
lifetime.
• Day Care & OPD Charges:

Until recently, the prerequisite of coverage of health insurance plans in India was a
minimum hospitalization of 24 hours. But with recent development in the health
insurance segment, certain critical procedures / treatment that require few hours’ time
such as dialysis, chemotherapy, eye surgery, lithotripsy etc. are also being covered
under health insurance. Moreover, procedures such as dental care which neither fall
under day-care, nor under 24-hour hospitalization are also being covered as out-patient
expenses.
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Evolution of Health Insurance
The health insurance concept was first suggested in the year 1694 by Hugh the Elder
Chamberlen from Peter Chamberlen family. In 19th Century “Accident Assurance” began to
be available which operated much like modern disability insurance. This payment model
continued until the start of 20th century. During the middle to late 20th century traditional
disability insurance evolved in to modern health insurance programmes. After that, with several
amendments and innovations, health insurance came into existence. Today, most
comprehensive health insurance programmes cover the cost of routine, preventive and
emergency health care procedures and also most prescription drugs.
Health Insurance in India
After independence, primary health care was given importance and it had seen a considerable
improvement. Health insurance history in India began with an Employee's state insurance
scheme (ESIS) in 1948. It was introduced as an umbrella of social security for blue-collar
workers of the organized sector. It provided health care services through a network of
dispensaries and hospitals that impaneled with ESIS. This scheme is still prevailing and
financed mainly through the contribution of employers and employees.
In 1954, a program for central government health schemes (CGHS) was also introduced. It was
a contributory health scheme to provide comprehensive healthcare services, especially to the
Central Government employees and their families. Government of India and Central
Government employees also contribute a nominal amount per month based on their pay scale,
and this scheme is still continuing. Benefits under the scheme include medical care at all levels
and home visits/care as well as free medicines and diagnostic services. But it was only in 1986
that the first health insurance product was launched in the country. The ‘Mediclaim Policy’ in
1986 from GIC is the first intervention of the Health Insurance programme in India.
Health Insurance, which remains highly underdeveloped and less significant segment of the
product portfolios, is now emerging as a tool to manage financial needs of people to seek health
services. The new economic policy and liberalization process followed by Government of India
since 1991 paved the way for privatization of insurance sector in the country. The Insurance
Regulatory and Development Authority (IRDA) bill, passed in Indian parliament in 1999, is
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the important beginning of changes having significant implications for the health sector and
the increasing demand for better healthcare facilities boosted the need for Health Insurance
policies. As of now, there are 30 insurance companies in the country that offer health insurance
products. Out of these, 25 are General Insurance Companies in India offering health insurance
plans and 5 are Standalone Health Insurance companies.
Types of Health Insurance in India
There are primarily two types of Health Insurance policies. They are
• Indemnity Plans
• Defined-benefit Plan
Indemnity Plans -
An indemnity-based health insurance plan is the traditional Health Insurance in which the
health insurance company reimburses the actual amount incurred as expenses during
hospitalization. The amount paid is subject to the maximum sum insured under the policy post
the submission of adequate proof and medical bills. This plan includes Mediclaim Insurance,
Individual Health Insurance, Family Floater Health Insurance, Group Health Insurance, Senior
Citizens Health Insurance, and Unit Linked Health Plans.
1. Mediclaim Insurance:
Mediclaim Insurance compensates the policyholder for the hospitalization expenses
incurred due to illness or accidents. It includes in-patient expenses such as nursing
charges, surgery expenses, doctor’s fee etc.
2. Individual Health Insurance:

Individual Health Insurance is a policy which is meant for an individual only. It may
cover the policyholder, spouse, children and parents. This type of Insurance policy
covers the policyholder’s medical expenses for injury & illnesses related
hospitalization, surgery costs, room rent, daycare procedures and more.
Every member covered under the Individual Health Insurance plan will have an
Individual Sum Insured. For example, if you take an Individual health policy of 3 lakhs
sum insured covering your spouse, 2 kids and yourself, then each person covered will
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have an individual sum insured of Rs.3 lakhs. This it makes the premium comparatively
higher.
3. Family Floater Health Insurance:

Under a Family Floater Health Insurance, single Sum Insured floats for all the members
covered under the policy. The sum insured is equally divided among the members. A
Family Floater Health Insurance Plan is beneficial because the premium is
comparatively lower than the Individual Health Insurance policy. This policy can cover
yourself, your spouse, children and parents.
4. Group Health Insurance:

A Group Health Insurance policy is designed for a group of employees working
together. Group Health Insurance Plan comes with a low-cost premium. Some
Insurance companies allow refilling the sum insured, that too, unlimited times, if it is
exhausted. A Group Health Insurance Plan covers the policyholder for hospitalization
due to accident, illness, critical illness, psychiatric illness, and maternity.
Buying a Group Health Insurance policy not only offers coverage to the employees but
also enhance the goodwill of the company. A very crucial point here is that the
employees are covered only till the time they work with that company.
5. Senior Citizens Health Insurance:

The Health Insurance policy which is dedicatedly designed for old people above the
age of 60 years is called Senior Citizen Health Insurance Plan. A Senior Citizen Policy
will offer coverage for cost of medicines, hospitalization arising out of accident or
illness, pre and post hospitalization and treatment. Along with these, some other
benefits like Domiciliary Hospitalization and Psychiatric benefits are also covered.
6. Unit Linked Health Plans:

Unit Linked Plans commonly known as ULIPs are investment cum insurance plans that
come with the dual benefits of investment and insurance. With this plan, a portion of
paid premiums are utilized in the stock market and the insured is offered with insurance
coverage. The returns are based on the market performance.
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Defined-benefit Plan –
In the 'defined-benefit' type of Health Insurance plan, the entire sum insured gets paid to the
policyholder if a pre-defined disease occurs. The payout therefore is not dependent on the
expense incurred during hospitalization. Such plans include Critical Illness plans and Hospital
Daily Cash (HDC) plans or any other Health Insurance plan which makes pre-defined payments
to the policyholder on the occurrence of a pre-defined event irrespective of whether and how
much expense has been incurred for the treatment.
1. Critical Illness plans:

This plan is specially designed to treat certain specific illness. A critical illness
insurance policy covers the insured against life-threatening critical diseases such as
heart attack, cancer, stroke, paralysis, kidney failure etc. This policy provides a lump
sum coverage amount that can cover exorbitant medical expenses for critical illness that
are covered under the insurance policy.
2. Hospital Daily Cash (HDC):

Hospital daily cash plan is a health plan which provides a fixed amount for each day
the policyholder is hospitalized. The amount paid is fixed at the time of the policy is
taken and would remain fixed.
3. Personal Accident Plan:

This policy covers the driver/owner against an accidental injury or death. A lump sum
amount is paid to the insured or their family in case of death, loss of income due to
permanent partial or total disability.
Benefits of Health Insurance
The following are the benefits of Health Insurance.
• Tax Benefits:
Having a Health Insurance policy can offer tax benefits as well. The premium payments
you make towards your Health Insurance plan qualify for tax deductions under Section
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80D of the Income Tax Act. An individual below 60 years can claim a tax deduction of
up to Rs. 25,000 for the premiums paid against a Health Insurance policy.
If the individual is above 60 years, the deduction limit is up to Rs. 50,000.

If the policyholder has also purchased Health Insurance for their below 60 years
parent/s, there is an additional tax deduction of Rs. 25,000. In case if the age of the
parent/s is above 60 years, the deduction available is up to Rs. 50,000. So, if the
individual is below 60 years and have purchased a health policy for him/ her, as well
as, for their above 60 years parent/s, the total tax deduction that can claim in a financial
year is up to Rs. 75,000.
• To Cover risk:
With the Change in the life-styles, work stress, environmental changes etc., the number
of diseases is increasing day by day and with a pandemic like Covid-19, Health is
completely at risk throughout the world. In such situations it is very important to cover
the risk. Health Insurance is the risk coverage which helps an individual or the whole
family to protect themselves from unforeseen situations.
• High Medical Costs:

Due to the high healthcare services cost; a person may not be able to afford treatment.
But when an investor has a health insurance cover, he/she can avail quality treatment
at the best network hospitals. Network hospitals are those wherein insurers have a tie-
up with hospitals that helps the investor get cashless treatment. With this facility, the
insurance company directly settles the bills with the hospital.
• Maternity Coverage Benefits:

There are numerous factors that couples consider before and after conceiving to ensure
a safe and healthy pregnancy, but one cannot overlook the cost involved. The cost of a
normal delivery clubbed with the hospitalization in a decent hospital in any metro city
could range anywhere between Rs.60,000 to Rs.2 Lakhs.
These shocking figures only suggest a need for proper planning of finances towards the
expenses that will incur. Hence, a Maternity cover offered by Health Insurance
companies is the best approach to tackle these costs.
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• Cashless Hospitalization:
One of the biggest benefits of Health Insurance is cashless claims. Most of the insurers
nowadays have an extensive list of network hospitals all over the country. In case the
policyholder is suffering from a health problem and get admitted to one of the network
hospitals, then the policyholder will mostly be able to take advantage of cashless
hospitalization.
This facility eliminates the traditional claim reimbursement process where the
policyholder was first required to clear the hospital dues and then get it reimbursed from
the insurer. With cashless treatment, the insurer will directly pay the medical bills to
the hospital. Thus, the policyholder will not be required to bear the high treatment costs.
In case if the policyholder is admitted to a non-network hospital, then the policyholder
will be able to use the reimbursement claim facility.
• Pre & post hospitalization cost coverage:

Health Insurance policies provide coverage for pre hospitalization & post
hospitalization expenses for a specific number of days before and after an insured
individual is hospitalized.
• Ambulance expenses:
One of the benefits of having Health Insurance by side is that it covers policyholder for
the ambulance expenses incurred on the transportation of insured. Thus, the need for
arranging a vehicle during an emergency situation gets eliminated.
• No Claim Bonus:
No claim bonus or NCB is a Health Insurance element paid to the insurer if he or she
does not file any claim for any treatment in a previous year. So, if the policyholder has
not claimed for any treatment in the previous year, he/she gets the NCB.
• Medical Checkup:
As per your plan type chosen by the policyholder, he/she become eligible for health
checkups. Free health checkups are also provided by some insurers on the basis of the
policyholder’s previous NCBs.
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• Room rent:
In case you the policyholder is hospitalized, he/she will have to incur costs on room
rent. Having a Health Insurance policy will ensure that these costs are covered to a
significant extent. Most insurance policies provide coverage for hospital room expenses
based on the premium paid by the insured individual.
• Alternative treatment:
Many insurance companies provide coverage for alternative treatment such as
Ayurveda, Homeopathic, Yoga and others. On buying a policy that covers this element,
the policyholder will be able to make the most of the offered treatment without bearing
expenses on their own.
• Online Purchasing Facility:

Thanks to the advancements in technology, an individual no longer need to visit a
branch of the Health Insurance company in order to purchase a plan. It can be done at
the comfort of one’s own home or office.
Health Insurance and Covid-19
Ever since the onset of Covid-19 in India, there are some significant changes that took place in
the Health Insurance industry. The Insurance Regulatory Authority of India (IRDAI) had
constantly taken measures to order to ensure utmost convenience to the customers in view of
the Covid-19 pandemic. Following are the key changes made in Health Insurance sector during
the pandemic.
• Inclusion of treatment of Covid-19 under Health Insurance policy

The first and foremost development that happened in Insurance following the pandemic
was the inclusion of treatment for Covid-19 under Health Insurance policies. Usually,
most insurers did not cover hospitalization due to pandemic under health insurance
policy; this created a lot of nervousness amongst the customers. However, with timely
intervention of the IRDAI, all general and specialized health insurers were directed to
cover hospitalization due to Covid-19 under a regular Health Insurance policy.
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• Cashless Payment Facilities for Treatment of Covid-19
IRDAI has asked all the hospitals to provide cashless payment facilities for the
treatment of Covid-19. The Insurance regulator had asked Insurance companies to
maintain a communication channel with hospitals for prompt resolution of
grievances of policyholders.
• Health Insurance Policy Proposals Validation through Digital Means

IRDAI allowed all general and specialized health insurers to validate Health
Insurance policy proposal forms through digital means in place of physical
signatures. Customers were allowed to give approval for issuing a Health
Insurance policy through video KYC or OTP in place of physical signatures. This
helped people to stay at home and follow social distancing rules and get the policy
issued for financial well-being.
• Covid-19 Specific Insurance Plans

In the month of July, as per IRDAI guidelines, Insurance companies launched two
standard Covid-19 Health insurance policies i.e., Corona Kavach and Corona Rakshak.
Both these policies were introduced to provide financial protection people so that they
could avail the best possible treatment for Covid-19.
• Allowance for Paying Insurance Premiums in Installments

IRDAI allowed general and standalone health insurers to give policyholders the
option to pay health insurance premiums in installments. Policyholders can pay
their annual health insurance premiums in a monthly, quarterly, or half -yearly
basis.
• Inclusion of Telemedicine
In the month of September, IRDAI instructed the Insurance companies to include
Telemedicine in the Health insurance policy. This means that anyone taking
telemedicine consultation from a doctor will be allowed to claim the expenses
under a health insurance policy provided the policy covers OPD expenses.
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• Coverage for Uncovered Ailments
As per IRDAI’s guideline, insurance companies cannot exclude diseases like
mental illness, stress or psychological disorder, illness contracted due to hazardous
activity, age-related disorder, internal congenital disease, genetic disease or
disorder. Hence, coverage for these diseases which are excluded or are not covered
in health insurance products so far will be covered by all Insurance companies.
List of Insurance Companies providing Health Insurance in India
The following is the list of Insurance Companies that provides Health Insurance policy in
India.
1. Bajaj Allianz General Insurance Co. Ltd.

2. Bharti Axa General Insurance Company Ltd.
3. Cholamandalam MS General Insurance Co. Ltd.
4. ManipalCigna Health Insurance Company Ltd
5. Future Generali India Insurance Co. Ltd.
6. HDFC ERGO General Insurance Company Limited
7. HDFC ERGO Health Insurance Company Ltd.
8. ICICI Lombard General Insurance Company Ltd
9. IFFCO Tokio General Insurance Company Limited
10. Liberty Videocon General Insurance Co. Ltd.
11. Magma HDI General Insurance Co. Ltd.
12. Max Bupa Health Insurance Co. Ltd.
13. National Insurance Company Limited
14. The New India Assurance Co. Ltd
15. The Oriental Insurance Company Ltd
16. Raheja QBE General Insurance Company Limited
17. Reliance General Insurance Company Limited
18. Care Health Insurance Ltd.
19. Royal Sundaram General Insurance Co. Ltd.
20. SBI General Insurance
21. Star Health & Allied Insurance Company Limited
17
22. Tata AIG General Insurance Company Limited
23. United India Insurance Company Ltd.
24. Universal Sompo General Insurance Co. Ltd
25. Kotak Mahindra General Insurance co. Ltd
26. Aditya Birla Health Insurance Co. Ltd.
27. Acko General Insurance Limited
28. Navi General Insurance Company Limited
29. Edelweiss General Insurance Co. Ltd.

30. Go Digit General Insurance Ltd.
Techniques used in Data Analysis
• Percentage Analysis
Percentage analysis refers to a special kind of rates, percentage that are used for
making comparison between two or more series of data. A percentage is used to
determine relationship between the series.
Percentage = Number of respondents X 100
Total number of respondents
• Cronbach’s Alpha
Cronbach’s alpha is a convenient test used to estimate the reliability, or internal

consistency, of a composite score. Cronbach’s alpha gives a simple way to measure
whether or not a score is reliable. Cronbach’s alpha tests to see if multiple-
question Likert scale surveys are reliable. The general rule of thumb is that a
Cronbach’s Alpha of 0.6 is good.
α= Nc
v + (N-1) c
18
Where,
N = Number of items
c̄ = average inter-item covariance
v̄ = average variance
• Paired Sample T-Test
The paired sample t-test, sometimes called the dependent sample t-test, is a statistical
procedure used to determine whether the mean difference between two sets of
observations is zero. In a paired sample t-test, each subject or entity is measured twice,
resulting in pairs of observations. Common applications of the paired sample t-test
include case-control studies or repeated-measures designs.
19
2.2 LITERATURE REVIEW
Priyadarsini (2013) 1, studied on the investment behavior of investors towards the Health
Insurance. This study was limited to Salem district, Tamil Nadu. The study is primarily based
on primary data which was collected through questionnaire, and it had a sample size of 200
respondents. Percentage analysis and Chi-square test were used for analyzing the collected
data. The study found that majority of investors invests in Health Insurance in order to be
protected against unexpected medical expense. It emphasized that even though most of the
people know about Health Insurance, few of them don’t hold a Health Insurance policy due to
lack of proper guidance and details or due to lack of awareness about Health Insurance. It was
also found that income of an individual plays a crucial role for investing in Health Insurance.
The study suggested that the health insurance market has clear possibility; hence the Health
Insurance companies should concentrate on the middle-income groups and also focus on
introducing innovative marketing strategies and create awareness among the people in rural
areas. The research concluded that awareness about the health insurance is lacking among the
people and also their incomes do not support for paying high premium policies.
Rath and Sahu (2017) 2, in this article studied on the growth and development of Health
Insurance in India after privatization. From the study it can be found that the journey of Health
Insurance started way back in the pre-independence era which was then in the form of health
care planning. Health Insurance in India emerged in 1999 with the introduction of Insurance
Regulatory and Development Authority (IRDA) Bill in the Parliament. It was found that during
the post privatization era, Health Insurance in India had a steady and significant growth both
in public sector as well as private sector, but majority of the consumers prefer public sector and
group Health Insurance providers due to wide coverage of services provided, office network
etc. The study concluded that there is an upward trend in Health Insurance post privatization
and the growth of Health Insurance depends on the growth of the economy and also the per
capita income. It was also found that the penetration of Health Insurance in India is lower
compared to other developing countries and this low level of penetration attracted many foreign
insurance companies to have a joint venture to hold Insurance business India which is a
potential market.
20
Kala and Jain (2015) 3, made an attempt to find out about investor’s awareness towards Health
Insurance. This study was limited to Rajasthan. The study is primarily based on primary data
which was collected through questionnaire, and it had a sample size of 120 respondents.
Frequency percentage test was used for analyzing the data collected. From the study it was
found that majority of the individuals are aware about the Health Insurance but not all of them
have purchased a Health Insurance policy. The study also found that lack of hospital networks,
trust issues, availability of ESI facilities, don’t feel the need of Health Insurance, complexity
of terms and conditions were the reasons for not taking Health Insurance policy. It was also
found that most of the individuals preferred public sector general insurance companies and
among the private sector, ICICI Lombard General Insurance Company, Star Health Insurance
Company, HDFC General Insurance Company was preferred by the people. The research
suggested that the public sector insurance companies should improve their customer support
services, have shorter claim settlement process, introduce money back policies and also issue
of health insurance card for the Indian citizens. The research concluded that awareness among
the people was high and but they don’t intend to have a Health Insurance policy, thus Health
Insurance has a huge scope in India.
Itumalla et al. (2016) 4, in this article studied on Health Insurance in India and the issues and
challenges faced in health insurance. The study emphasized that after the new economic policy
in 1991 which facilitated privatization and also the IRDA bill that was passed in the parliament,
there was a significant growth in the health sector and Health Insurance has emerged as a tool
to finance the needs of individuals seeking the health facilities. From the study it was found
that in year 2013-14, the gross Health Insurance premium collected was 13.21 per cent higher
when compared to the previous year and a major part of the Health Insurance premium was
contributed by the public sector non- life insurance companies. It was also found that higher
Incurred Claims Ratio (ICR), distorted distribution of health insurance business over different
states and the union territories, lack of awareness among the consumers, pricing of Health
Insurance are the challenges and problems faced by health insurance. The study concluded that
Health Insurance has a fast growth in India but the challenges and issues should be taken care
in a way that benefits the consumers and specially the weaker section of the society.
21
Singh and Singh (2020) 5, in this article studied on the Heath Insurance in India. This study
gives an overview of the structure of Health Insurance in India and the areas where the sector
can be improved. The study also covered the various Health Insurance products that are
available in India. From the study it was found that in the year 2018-19, the general Health
Insurance companies collected 21.2 per cent over the premium collected during the previous
year. It was also found that the premium collected by the Health Insurance companies during
2014 to 2019 was above 20 per cent, which indicates a significant growth of the Health
Insurance. The study also highlighted that Maharashtra, Tamil Nadu, Karnataka, Gujarat and
Delhi contributed to 66 per cent of the total Health Insurance premium in 2018-19. This
research study suggested that there is a need for universal Health Insurance program in India
which should be at lower cost in order to insure all the citizen of India and the Health Insurance
companies should try to attract new consumers by creating awareness about the benefits of
having Health Insurance.
Jacob (2018) 6, studied on the consumer perception towards the Health Insurance. This study
was limited to Ranny Thaluk. The study is primarily based on primary data which was collected
through questionnaire, and it had a sample size of 50 respondents. The collected data was
analyzed using percentage, tabulation, ANOVA test, ranking and likert scale. This study found
that the majority of investors invest in Health Insurance in order to be protected against the risk
of sudden medical emergencies. It emphasized that most of the people get to know about Health
Insurance though their relatives, friends and colleagues. It was also found that easy availability
of linked hospitals, prompt claim settlement process and also the reputation of the company
are the main reasons for choosing a particular insurance company. The study suggested that the
Health Insurance should cover all type of ailments, easy settlement process and should try to
create more awareness about the Health Insurance.
Joshi and Shah (2015) 7, made an attempt to study the perception of customers towards the
Health Insurance. This study is limited to Ahmedabad City. The study is primarily based on
primary data which was collected through questionnaire, and it had a sample size of 100
respondents. The collected data was analyzed using percentage, frequency, Chi square test and
Kaiser-Meyer-Oklin (KMO) and Bartlett’s test of Sphericity were applied for verifying
22
the adequacy of data for factor analysis. The study found that risk coverage, protection against
unexpected medical expenses and tax benefits were the main factors that influenced the
policyholder. The study also found that majority of the investors preferred public sector
insurance company. The research suggested that the Health Insurance companies should pay
attention on the demographic criteria such as age, income, gender etc. It also suggested that the
investor prefer to get Health Insurance policies through agents, so the Health Insurance
companies should focus on getting more agents and training them in order to get more policies.
Gajula and Dhanavanthan (2019) 8, made an attempt to explore the consumer’s behavior,
and perception towards Health Insurance policies. This study is limited to Hyderabad City. The
study is primarily based on primary data which was collected through questionnaire, and it had
a sample size of 118 respondents. The collected data was analyzed using percentage, frequency,
Chi square test, Kaiser-Meyer-Oklin (KMO) and Bartlett’s test of Sphericity were applied for
verifying the adequacy of data for factor analysis. From the study it can be found that majority
of individual are aware about the Health Insurance and the expectation of the investors in
Health Insurance is to have a good quality of health package which is accessible and affordable.
It was also found that major source of information regarding Health Insurance are through
friends which is followed by TV and newspapers and also majority of investors prefer to buy
Health Insurance policy from public sector insurance company. The study also highlights that
though majority of the individuals are aware about Health Insurance, not all are willing to
purchase Health Insurance. This indicates the potential of the market which could be tapped by
the insurance company. The study suggests that agents have a great influence on the buying
decision of the investors; hence the insurance company should try to train and develop the
agents for the future benefit of company.
Anandhi (2016) 9, in this article studied on the customers’ attitude towards Health Insurance.
The study is primarily based on primary data which was collected through questionnaire, and
it had a sample size of 195 respondents. Kaiser-Meyer-Oklin (KMO) Measure of Sampling
Adequacy (MSA) and Bartlett’s test of Sphericity were applied for verifying the adequacy of
data for factor analysis. From the study it was found that the important criteria for selecting a
23
Health Insurance policy of the company includes the policy features, amount of premium,
whether the company is a public sector or private sector insurance company, accessibility,
advertisement are some of the factors that influences that investor. It was also found that the
consumers are also influenced by the agent’s knowledge, attitude and behavior.
Goel (2014) 10, studied on the consumer behavior towards Health Insurance. This study is
limited to Rohtak District, Haryana. The study is primarily based on primary data which was
collected through questionnaire, and it had a sample size of 120 respondents. Simple
frequencies and percentages were used for analyzing the data collected. The study found that
people were aware about Health Insurance but still majority of them did not have a Health
Insurance policy. The source of awareness among these individuals was majorly through TV,
agents, newspapers etc. From the study it was found that the major reason for taking Health
Insurance policy was to protect from unexpected medical emergencies and also tax benefits. It
was also found that majority of the individuals prefer to take policy form public sector
insurance company. The study suggested that the Health Insurance companies should focus on
tapping the middle and low socio-economic groups which are a potential market for the Health
Insurance sector. Though many of the individuals are aware about Health Insurance, they do
not have a Health Insurance policy. If the private Health Insurance companies want to capture
the market, they should first try to win the trust of the people as most of the people prefer public
sector Heath Insurances.
Priya and Srinivasan (2015) 11, studied on customer awareness towards Health Insurance.
This study is limited to Coimbatore City. The study is primarily based on primary data which
was collected through questionnaire, and it had a sample size of 325 respondents. The collected
data was analyzed using t-test, Chi square test, one way ANOVA and Garrett ranking
technique. The study found that source of awareness about Health Insurance was mainly from
advertisements, agents, family and friends. From the study it was also found that motivation
that are given by the officials for purchasing the policy, the time that is taken for issuing the
policy, terms and conditions of the policy and claim settlement are some of the factors that
determine the level of satisfaction towards Health Insurance. It was also found that the policy
holders faced problems with the terms and conditions of the company, many formalities while
24
claiming and delay in the claim settlement are the problems faced by Health Insurance
policyholder. The study suggested that there should be an initiative for educating the public
about Health Insurance and also suggested that an advisor should be available in all the
hospitals for suggesting and clarifying the doubts for individuals. The research concluded that
the Health Insurance is growing rapidly, but due to the rising health care cost the only way for
financing healthcare is through Health Insurance.
Kansra and Pathania (2012) 12, in this article studied on the factors affecting the demand for
Health Insurance and also the awareness about Health Insurance. This study is limited to
Punjab. The study is primarily based on primary data which was collected through
questionnaire, and it had a sample size of 200 respondents. The collected data was analyzed
using percentage, factor analysis and Chi square test. The study found that most of the
individuals are familiar with health insurance but do not have a policy. This awareness is
mainly created through newspapers, TV, radio and agents. It was also found that formalities,
problems relating to agent, awareness, coverage issues and negative feedback were the main
factors affecting the demand of health insurance. Even though there is lot of awareness towards
Health Insurance, the level of subscription of Health Insurance is not obtained. This shows that
a majority of people are still financing their healthcare expenses without health insurance.
Sini and Karpagam (2016) 13, made an attempt to study the awareness and preference of
investors towards Health Insurance. This study is primarily based on primary data which was
collected through questionnaire, and it had a sample size of 150 respondents. The collected
data was analyzed using percentage analysis, weighted average and Chi square test. The study
found that the sources of awareness towards Health Insurance were mainly through
advertisements, friends and relatives. It was also found that the individuals are neutral towards
tax benefits, savings and risk coverage. The study suggests that if the Health Insurance
companies try to increase advertisements about different policies, it would help to increase the
level of awareness about the Health Insurance among the people and also if the Health
Insurance companies makes an attempt to reduce the claim span, then it would help to have
higher level of satisfaction among the policyholder in the future.
25
Chaudhary (2019) 14, studied on the customer’s satisfaction and awareness towards Health
Insurance. The study is primarily based on primary data which was collected through
questionnaire, and it had a sample size of 124 respondents. Percentage analysis and Chi square
test were used to analyze the data collected. The study emphasized that the inception of
awareness on Insurance products among the customers is an important task to all the insurance
companies because the customers always purchase those products that they are aware. The
study found TV, agents, newspapers, friends and relatives are the major source of awareness
for health insurance. It was also found that majority of the individuals did not have Health
Insurance policy. The research study concluded that India’s Health Insurance industry is
growing rapidly and with the increasing cost of healthcare facilities, it is essential to have
Health Insurance to finance the healthcare expenses but even though majority of the people are
aware about Health Insurance, the level of subscription of Health Insurance is not obtained.
Rajasekar and Rani (2018) 15, in this article studied on the customer perception and
satisfaction towards Health Insurance. This study is limited to Madurai District. The study is
primarily based on primary data which was collected through questionnaire, and it had a sample
size of 562 respondents. Kaiser-Meyer-Oklin (KMO) and Bartlett’s test of Sphericity were
used for verifying the adequacy of data for factor analysis. From the study it was found that
most of the people in India prefer to be on the safe zone and try to avoid any unexpected
movements in the market so that they could plan for the future inflow. Presently the Health
Insurance companies sell through different distribution channels apart from the sales by the
agents, this includes telemarketing, online and other modes. The study concluded that there is
lot of scope for improving the penetration of Health Insurance in the rural areas as various
regions in India are still not exploited. The insurance company must also evaluate their
traditional methods for attracting and also retaining the customers.
26
CHAPTER – III
Data Analysis
3.1 INTRODUCTION
The current chapter presents the data analysis and interpretation of data collected from 100
respondents pertaining to ‘Investor perception towards Health Insurance Pre and Post Advent
of the Pandemic’ in twin cities of Hyderabad and Secunderabad.
3.2 DEMOGRAPHICS
Table 3.2.1 Gender
PARTICULARS FREQUENCY PERCENTAGE
Male 66 66%
Female 34 34%
TOTAL 100 100%
Source: Primary Data
Figure 3.2.1 Gender

From the above Pie chart, it can be observed 66% of the respondents are Female and 34% of
the respondents are Male. Hence, it can be understood that majority of the respondents for this
study are Female.
27
Table 3.2.2 Age
Below 20 years 2 2%
20-29 years 43 43%
30-39 years 14 14%
40-49 years 22 22%
50 years and above 19 19%
TOTAL 100 100%
Figure 3.2.2 Age
The above Pie chart shows that age group of the respondents for the study. From the above
chart, it can be observed that 43% of the respondents fall in the age group of 20-29 years, 19%
of the respondents are 50 years and above, 22% of the respondents are in the age group of 40-
49 years, 14% are of the age 30-39 years while the remaining 2% of the respondents are below
20 years. It can also me observed that majority of the respondents fall in the age group of 20-
29 years.
28
Table 3.2.3 Occupation
Self-employed 17 17%
Salaried 73 73%
Homemaker 8 8%
Retired 2 2%
TOTAL 100 100%
Figure 3.2.3 Occupation
From the above Pie chart, it can be inferred that majority of the respondents are salaried which
is 73% of the total respondents which is followed by Self-employed respondents comprising
of 17%. Homemakers cover 8% of the total respondents and the remaining 2% of the
respondents are people who are Retired.
29
Table 3.2.4 Annual Income
Below Rs.5,00,000 54 54%
Rs.5,00,001-Rs.10,00,000 26 26%
Rs.10,00,001-Rs.15,00,000 8 8%
Above Rs.15,00,000 12 12%
TOTAL 100 100%
Figure 3.2.4 Annual Income
From the above Pie chart, it can be inferred that majority of the respondents which is 54% of
the total respondents earn annually below Rs. 5,00,000 which is followed by 26% of the
respondents earing annually between Rs.5,00,001-Rs.10,00,000. 12% of the respondents earn
above Rs.15,00,000 annually followed by 8% of the respondents earning annually between
Rs.10,00,001-Rs15,00,000.
30
3.3 PERCENTAGE ANALYSIS
Table 3.3.1 Owning a Health Insurance
Yes 75 75%
No 25 25%
TOTAL 100 100%
Figure 3.3.1 Owning a Health Insurance
From the above Pie chart, a ratio of 3:1 can be observed, that is 75% of the total respondents
are currently having a Health Insurance and the remaining 25% of the respondents do not own
a Health Insurance currently. Therefore, it can be inferred that majority of the respondents
currently have a Health Insurance.
31
Table 3.3.2 Duration of the current Health Insurance
I had Health Insurance before the advent of 71 95%

pandemic
I had taken Health Insurance for the first time 4 5%

during the pandemic
TOTAL 75 100%
Figure 3.3.2 Duration of the current Health Insurance
This question was posed to the respondents to know if they owned Health Insurance before the
emergence of the pandemic or after that. From the above Pie chart, it can be observed that
majority of the respondents i.e., 95% of the respondents had Health Insurance before the
emergence of the pandemic. It was also observed that 5% of the respondents who currently
own a Health Insurance policy had taken Health Insurance for the first time after the emergence
of the pandemic. This shows that after the emergence of Covid-19, slowly people are getting
more aware about the benefits of having a Health Insurance and also started considering it as a
protection for themselves and for their families during these uncertainties.
32
Table 3.3.3 Additional Covid-19 specific Health Insurance along with the existing policy
Yes 10 86%
No 61 14%
TOTAL 71 100%
Figure 3.3.3 Additional Covid-19 specific Health Insurance along with the existing policy
This question was posed to the respondents who had Health Insurance before the emergence of
the pandemic to know if they had taken any additional Covid-19 specific Health Insurance
along with their existing policy. From the above Pie chart, it can be inferred that 86% of the
respondents did not take any additional Covid-19 specific Health Insurance. 14% of the
respondents who had Health Insurance before the pandemic had taken an additional Covid-19
specific Health Insurance along with their existing policy. This shows that people are slowly
become more conscious about their health and wish to be protected during uncertainties.
33
Table 3.3.4 Risk as the reason for taking Health Insurance for the first time during pandemic
Yes 3 90%
No 1 10%
Maybe 0 0%
TOTAL 4 100%
Figure 3.3.4 Risk as the reason for taking Health Insurance for the first time during pandemic
This question was posed to the respondents who took Health Insurance for the first time after
the emergence of the pandemic to know if they considered risk associated with Covid-19
disease as the reason for taking Health Insurance. From the above chart, it can be inferred that
majority of the respondents i.e., 75% of the respondents considered risk associated with Covid-
19 disease as the reason for taking Health Insurance. Hence it can be inferred that pandemic
had a significant impact on these respondents who took Health Insurance for the first time.
34
Table 3.3.5 Consideration for taking Health Insurance
Yes 7 28%
No 6 24%
Maybe 12 48%
TOTAL 25 100%
Figure 3.3.5 Consideration for taking Health Insurance
From the above pie chart, it can be inferred that 48% of the respondents who do not own a
Health Insurance now may consider taking a Health Insurance followed by 28% of the
respondents willing to take a Health insurance now. Only 24% of the total respondents are still
not willing to take a Health Insurance. This shows that with the emergence of the pandemic,
the mindset of people towards Health Insurance is changing and now people consider having a
Health Insurance as important.
35
Table 3.3.6 Inquiries to understand Covid-19 coverage in existing or intended health covers
Yes 57 57%
No 43 43%
TOTAL 100 100%
Figure 3.3.6 Inquiries to understand Covid-19 coverage in existing or intended health covers
Pandemic has created a lot of tensions and worries among the people and specially health
was the major concern. People wanted to be protected both physically and financially during
these uncertainties. Health Insurance is one such protection that helps people to avail medical
facilities during emergencies and with the outset of a pandemic like Covid-19, a lot of queries
and doubts arose among the people about Health Insurance and Covid-19 coverage in the
policy. From the above Pie chart, it can be inferred that 57% of the respondents i.e., majority
of the respondents had made inquiries to understand Covid-19 coverage in the policy they
hold or which they intend to hold and 43% did not inquire about Covid-19 coverage in their
policy.
36
Table 3.3.7 Change in premium amount after the advent of the pandemic
Reduction in the amount of premium 5 5%
No Change 65 65%
Increase in the amount of premium 30 30%
TOTAL 100 100%
Figure 3.3.7 Change in premium amount after the advent of the pandemic
From the above Pie chart, it can be observed that 65% of the respondents felt that there was no
change in the amount of premium and 30% of the respondents felt that there was an increase
in the amount of premium and 5% of them felt that the premium amount was reduced. The
change in the amount of premium depends on many factors such as age of the person, numbers
of people covered under the Health Insurance policy, addition or deletion of add-on in the
policy or number of policies etc. From the above chart, it can be inferred that majority of the
respondents felt there was no change in the premium amount paid by them after the advent of
the pandemic.
37
Table 3.3.8 Health Insurance is Essential
Pre-Pandemic Post Advent of Pandemic
Strongly Disagree 1% 0%
Disagree 3% 1%
Neutral 15% 8%
Agree 47% 41%
Strongly Agree 34% 50%
TOTAL 100% 100%

Figure 3.3.8 Health Insurance is Essential
Health Insurance is Essential

60% 50%
47%
Percentage of Respondents
50% 41%
40% 34%
30%
20% 15%
8%
10% 1% 0% 3% 1%
0%
Strongly Disagree Neutral Agree Strongly Agree
Disagree
Level of agreement
Pre Pandemic Post Advent of Pandemic
From the above graph, it can be observed that before the advent of the pandemic, majority of
the respondents i.e., 47% agreed and 34% strongly agreed that Health Insurance was essential
but it can also be noticed that 15% of the respondents were neutral for Health Insurance being
essential and 4% as a whole did not consider Health Insurance to be essential. But due to the
pandemic, it can be noticed that there is a change in the mindset of the respondents. 50% of
respondents strongly agreed and 41% agreed that Health Insurance is essential in the post
pandemic times and 8% respondents were neutral and only 1% of the respondents did not
consider Health Insurance to be essential.
38
Table 3.3.9 Health Insurance is Important
Disagree 2% 0%
Neutral 13% 6%
Agree 51% 44%
TOTAL 100% 100%

Figure 3.3.9 Health Insurance is Important
Health Insurance is Important

60% 51% 50%
50% 44%
40% 33%
30%
20% 13%
2% 6%
10% 1% 0% 0%
0%
Disagree
Level of agreement
From the above graph, it can be observed that before the advent of the pandemic, majority of
the respondents i.e., 51% agreed and 33% strongly agreed that Health Insurance was important
but it can also be noticed that 13% of the respondents were neutral regarding the importance of
Health Insurance and 3% as a whole did not consider Health Insurance to be important. But
with the widespread impact of Covid-19 pandemic, it can be noticed that there is a shift in the
mindset of the investors. Post advent of the pandemic, 50% of respondents strongly agreed and
44% agreed that Health Insurance is important and no respondents considered Health Insurance
to be unimportant.
39
Table 3.3.10 Health Insurance is Mandatory
Disagree 8% 2%
Neutral 31% 24%
Agree 36% 35%
TOTAL 100% 100%

Figure 3.3.10 Health Insurance is Mandatory
Health Insurance is Mandatory

50%
39%
40% 36% 35%
31%
30% 24% 22%
20%
8%
10% 3% 2%
0%
0%
Disagree
Level of agreement
From the above Chart, it can be noticed that 22% strongly agreed and 36% agreed that Health
Insurance was mandatory in Pre pandemic era and 31% of the respondents were neutral and
11% of the respondents did not agree that Health Insurance was mandatory before the advent
of the pandemic. But after the emergence of Covid-19 disease, 39% of the respondents strongly
agreed and 35% agreed that Health Insurance is mandatory after the advent of the pandemic.
But it was also noticed that 24% of the respondents were neutral and 2% of the respondents did
not consider Health Insurance to be mandatory after the emergence of the pandemic.
40
3.4 STATISTICAL ANALYSIS USING SPSS
In order to analyze the objectives of the study, Paired sample t-test was used with the help of
SPSS. Paired sample t-test is used when the same element is measured twice which results in
pairs of observation. In this study, paired sample t-test is used to study the same factor or
element before and after the advent of the pandemic and to study if there is any change in the
perception of investors towards Health Insurance.
Cronbach Alpha
Table 3.4.1 Reliability Statistics
Cronbach’s Alpha Cronbach’s Alpha based on N of items

standardized items
0.864 0.893 46
From the above table, it can be observed that Cronbach’s Alpha value is 0.864 which is greater
than 0.6. As the Cronbach’s Alpha value (0.864) is greater than 0.6, the questionnaire is reliable
for the study.
41
Table 3.4.2 Descriptive Statistics and Paired sample t-test of Level of awareness
Post Advent of
Outcome Pre-Pandemic p t df Decision
Pandemic
3.00 3.32
Diseases
0.001 -3.361 99 Reject
covered
(1.119) (1.213)
3.12 3.36
Claim
0.008 -2.700 99 Reject
procedure (1.140) (1.150)
3.12 3.26
Tax benefits 0.127 -1.538 99 Accept
(1.131) (1.125)
Consequences 3.16 3.27

of non- 0.276 -1.096 99 Accept
payment (1.237) (1.213)
1. A paired-sample t-test was conducted to compare the level of awareness towards diseases
covered in Health Insurance Pre and Post advent of the pandemic. There is a significant
difference in Pre-Pandemic (M=3.00, SD=1.119) and Post advent of Pandemic (M=3.32,
SD=1.213) periods; t (99) = -3.361, p = 0.001.
2. A paired-sample t-test was conducted to compare the level of awareness towards claim
procedure in Health Insurance Pre and Post advent of the pandemic. There is a significant
difference in Pre-Pandemic (M=3.12, SD=1.140) and Post advent of pandemic (M=3.36,
SD=1.150) periods; t (99) = -2.700, p = 0.008.
3. A paired-sample t-test was conducted to compare the level of awareness towards tax benefits
for Health Insurance Pre and Post advent of the pandemic. There is no significant difference in
42
Pre-Pandemic (M=3.12, SD=1.131) and Post advent of Pandemic (M=3.26, SD=1.125)
periods; t (99) = -1.538, p = 0.127.
4. A paired-sample t-test was conducted to compare the level of awareness towards consequences
of non-payment for Health Insurance Pre and Post advent of the pandemic. There is no
significant difference in Pre-Pandemic (M=3.16, SD=1.237) and Post advent of pandemic
(M=3.27, SD=1.213) periods; t (99) = -1.096, p = 0.276.
Table 3.4.2 shows the paired samples statistics of the level of awareness towards Health
Insurance in Pre and Post advent of the pandemic. The lowest mean with the mean value of
3.00 is found in Diseases covered before the advent of the pandemic. This implies that the
respondents were least aware about the diseases covered in the Per pandemic era. On the other
side, Consequences of non-payment had the highest mean with a mean value of 3.16, so this
implies that the respondents were very aware about the consequences of non-payment in the
Pre pandemic era. But after the emergence of Covid-19 disease, claim procedure followed by
diseases covered had the highest mean with a mean value of 3.36 and 3.32 respectively and
Tax benefits had the least mean with a mean value of 3.26. This means that after the advent of
the pandemic, respondents were least aware about the tax benefits and highly aware about the
Claim procedure and Diseases covered after the emergence of the pandemic.
From Table 3.4.2, it can be observed that the p value for paired samples 1 and 2 is less than
0.05. Hence the null hypothesis (H0) is rejected. There is significant difference between the
level of awareness towards diseases covered and claim procedure of Health Insurance in Pre
and Post advent of the pandemic.
From Table 3.4.2, it was also observed that the p value for paired samples 3 and 4 is greater
than 0.05. Hence the null hypothesis (H0) is accepted. There is no significant difference
between the level of awareness towards tax benefits and consequence of non-payment of Health
Insurance in Pre and Post advent of the pandemic.
43
Table 3.4.3 Descriptive Statistics and Paired sample t-test of Sources influencing the
purchase of Health Insurance
Pre- Post Advent

Outcome p t df Decision
Pandemic of Pandemic
3.07 3.31
Insurance
0.011 -2.602 99 Reject
Agents (1.139) (1.277)
2.94 3.29
Television < 0.001 -4.623 99 Reject
(1.062) (1.157)
3.17 3.71
Internet < 0.001 -5.576 99 Reject
(1.120) (1.209)
3.23 3.64
Family and
< 0.001 -4.203 99 Reject
Friends (1.171) (1.040)
2.80 3.26
Newspapers < 0.001 -5.221 99 Reject
(1.015) (1.079)
1. A paired-sample t-test was conducted to compare the influence of Insurance agents on the
purchase of Health Insurance in Pre and Post advent of the pandemic. There is a significant
SD=1.277) periods; t (99) = -2.602, p = 0.011.
2. A paired-sample t-test was conducted to compare the influence of television on the purchase
of Health Insurance in Pre and Post advent of the pandemic. There is a significant difference
44
in Pre-Pandemic (M=2.94, SD=1.062) and Post advent of pandemic (M=3.29, SD=1.157)
periods; t (99) = -4.623, p = < 0.001.
3. A paired-sample t-test was conducted to compare the influence of Internet on the purchase of
Health Insurance in Pre and Post advent of the pandemic. There is a significant difference in
Pre-Pandemic (M=3.17, SD=1.120) and Post advent of pandemic (M=3.71, SD=1.209)
periods; t (99) = -5.576, p = < 0.001.
4. A paired-samples t-test was conducted to compare the influence of Family and friends on the
difference in Pre-Pandemic (M=3.23, SD=1.171) and Post advent of the pandemic (M=3.64,
SD=1.040) periods; t (99) = -4.203, p = < 0.001.
5. A paired-samples t-test was conducted to compare the influence of Newspapers on the purchase
of Health Insurance in Pre and Post advent of the pandemic. There is a significant difference
periods; t (99) = -5.221, p = < 0.001.
Table 3.4.3 shows the paired samples statistics of the sources influencing the purchase of
Health Insurance Pre and Post advent of the pandemic. The lowest mean with the mean value
of 2.80 and 2.94 is found in newspapers and television respectively before the advent of the
pandemic. This implies that these sources had the least influence on the respondents. On the
other side, family and friends had the highest mean with a mean value of 3.23, so this implies
that family and friends had the highest influence on the respondents in the Pre pandemic era.
But after the emergence of the pandemic, Internet had the highest mean with a mean value of
3.71 and newspapers and television continues to have the least mean i.e., 3.26 and 3.29 mean
values respectively. This means that after the advent of the pandemic, Internet had the highest
influence and newspapers and television had the least influence on the respondents.
From Table 3.4.3, it can be observed that the p value for all the paired samples is less than 0.05.
Hence the null hypothesis (H0) is rejected. There is significant difference between the sources
influencing the purchase of Health Insurance Pre and Post advent of the pandemic.
45
Table 3.4.4 Descriptive Statistics and Paired sample t-test of Features of Health Insurance
policies influencing its purchase
Post Advent of
Outcome Pre-Pandemic p t df Decision
Pandemic
4.28 4.42
Coverage
0.075 -1.798 99 Accept
amount (0.954) (0.819)
4.22 4.47
Illness
0.001 -3.362 99 Reject
covered (0.905) (0.688)
Large 4.05 4.36

network of < 0.001 -3.874 99 Reject
hospitals (0.989) (0.798)
3.95 4.31
Cashless
< 0.001 -4.442 99 Reject
facility
(0.957) (0.907)
Duration of 4.16 4.35

health 0.014 -2.495 99 Reject
coverage (0.884) (0.925)
1. A paired-sample t-test was conducted to compare coverage amount as a feature considered for
the purchase of Health Insurance in Pre and Post advent of the pandemic. There is no significant
difference in Pre-Pandemic (M=4.28, SD=0.954) and Post Covid-19 (M=4.42, SD=0.819)
periods; t (99) = -1.798, p = 0.075.
46
2. A paired-sample t-test was conducted to compare illness covered as a feature considered for
the purchase of Health Insurance in Pre and Post advent of the pandemic. There is a significant
SD=0.688) periods; t (99) = -3.362, p = 0.001.
3. A paired-sample t-test was conducted to compare arge network of hospitals as a feature
considered for the purchase of Health Insurance in Pre and Post advent of the pandemic. There
is a significant difference in Pre-Pandemic (M=4.05, SD=0.989) and Post advent of pandemic
(M=4.36, SD=0.798) periods; t (99) = -3.874, p = < 0.001.
4. A paired-sample t-test was conducted to compare cashless facility as a feature considered for
the purchase of Health Insurance in Pre and Post advent of the pandemic. There is a significant
SD=0.907) periods; t (99) = -4.442, p = < 0.001.
5. A paired-sample t-test was conducted to compare duration of health coverage as a feature
considered for the purchase of Health Insurance in Pre and Post advent of the pandemic. There
(M=4.35, SD=0.925) periods; t (99) = -2.495, p = 0.014.
Table 3.4.4 shows the paired samples statistics of the features considered for the purchase of
of 3.95 is found in cashless facility before the pandemic. This implies that cashless facility was
not considered that important for the purchase of Health insurance by the respondents. On the
other side, coverage amount had the highest mean with a mean value of 4.28, so this implies
that coverage amount was considered the most important feature by the respondents in the Pre
pandemic era. But after the emergence of Covid-19 disease, illness covered had the highest
mean with a mean value of 4.47 followed by coverage amount with a mean value of 4.42.
cashless facility continues to have the least mean with a mean value of 4.31. This means that
after the advent of the pandemic, illness covered and coverage amount was considered the most
important feature and cashless facility was considered least important by the respondents.
From Table 3.4.4, it can be observed that the p value for paired samples 2,3,4 and 5 are less
than 0.05. Hence the null hypothesis (H0) is rejected. There is significant difference between
the features considered for the purchase of Health Insurance Pre and Post advent of the
pandemic. Only paired sample 1 is greater than 0.05, hence the null hypothesis (H0) is accepted.
47
Table 3.4.5 Descriptive Statistics and Paired sample t-test of Benefits influencing the choice
of Health Insurance
Pre- Post Advent

Pandemic of Pandemic
3.98 4.05
Tax benefits 0.320 -1.000 99 Accept
(0.876) (0.999)
4.13 4.38
To cover risk < 0.001 -3.638 99 Reject
(0.812) (0.763)
4.18 4.34
High medical cost 0.023 -2.311 99 Reject
(0.809) (0.714)
To avail 3.55 3.70

Maternity 0.046 -2.017 99 Reject
coverage benefits (1.058) (1.030)
1. A paired-sample t-test was conducted to compare the influence of tax benefits on the purchase
of Health Insurance in Pre and Post advent of the pandemic. There is no significant difference
periods; t (99) = -1.000, p = 0.320.
2. A paired-sample t-test was conducted to compare the influence of risk cover benefit on the
SD=0.763) periods; t (99) = -3.638, p = < 0.001.
48
3. A paired-sample t-test was conducted to compare the influence of protection against high
medical cost on the purchase of Health Insurance in Pre and Post advent of the pandemic. There
(M=4.34, SD=0.714) periods; t (99) = -2.311, p = 0.023.
4. A paired-sample t-test was conducted to compare the influence of maternity coverage benefits
on the purchase of Health Insurance in Pre and Post advent of the pandemic. There is a
significant difference in Pre-Pandemic (M=3.55, SD=1.058) and Post advent of pandemic
(M=3.70, SD=1.030) periods; t (99) = -2.017, p = 0.046.
Table 3.4.5 shows the paired samples statistics of the benefits influencing the purchase of
of 3.55 is found in Maternity coverage benefits before the pandemic. This implies that
maternity coverage benefits had the least influence on the respondents. On the other side,
protection against high medical cost had the highest mean with a mean value of 4.18, so this
implies that protection against high medical cost had the highest influence on the respondents
in the Pre pandemic era. But after the emergence of Covid-19 disease, covering risk had the
highest mean with a mean value of 4.38 which is followed by protection against high medical
cost with a mean of 4.34. Maternity coverage benefit continues to have the least mean value of
3.70. This means that after the advent of the pandemic, covering risk and protection against
high medical cost had the highest influence and maternity coverage benefits had the least
influence on the respondent.
From Table 3.4.5, it can be observed that the p value for paired samples 2,3,4 and 5 are less
than 0.05. Hence the null hypothesis (H0) is rejected. There is significant difference between
the benefits influencing the purchase of Health Insurance Pre and Post advent of the pandemic.
Only paired sample 1 is greater than 0.05, hence the null hypothesis (H0) is accepted in case of
paired sample 1.
49
Table 3.4.6 Descriptive Statistics and Paired sample t-test of Preferences of Investor towards
different avenues
Pre- Post Advent of

Pandemic Pandemic
2.58 2.71
Purchase of
0.292 -1.059 99 Accept
Vehicle
(1.379) (1.313)
Investment in 2.71 2.74

Precious 0.813 -0.237 99 Accept
metals (1.289) (1.252)
3.21 2.93
Purchase of
0.013 -2.521 99 Reject
House
(1.380) (1.241)
3.23 3.99
Health
< 0.001 -5.733 99 Reject
Insurance
(1.406) (1.367)
3.27 2.63
Family outing
0.001 3.337 99 Reject
and vacations
(1.490) (1.454)
1. A paired-sample t-test was conducted to compare the preference of investors towards purchase
of vehicle in Pre and Post advent of the pandemic. There is no significant difference in Pre
pandemic (M=2.58, SD=1.379) and Post advent of pandemic (M=2.71, SD=1.313) periods; t
(99) = -1.059, p = 0.292.
50
2. A paired-sample t-test was conducted to compare the preference of investors towards
investment in precious metals in Pre and Post advent of the pandemic. There is no significant
difference in Pre pandemic (M=2.71, SD=1.289) and Post advent of pandemic (M=2.74,
SD=1.252) periods; t (99) = -0.237, p = 0.813.
3. A paired-sample t-test was conducted to compare the preference of investors towards purchase
of house in Pre and Post advent of the pandemic. There is significant difference in Pre pandemic
(M=3.21, SD=1.380) and Post advent of pandemic (M=2.93, SD=1.241) periods; t (99) = -
2.521, p = 0.013.
4. A paired-sample t-test was conducted to compare the preference of investors towards Health
Insurance in Pre and Post advent of the pandemic. There is significant difference in Pre
pandemic (M=3.23, SD=1.406) and Post advent of pandemic (M=3.99, SD=1.367) periods; t
(99) = -5.733, p = < 0.001.
5. A paired-samples t-test was conducted to compare the preference of investors towards family
outing and vacations in Pre and Post advent of the pandemic. There is significant difference in
Pre pandemic (M=3.27, SD=1.490) and Post advent of pandemic (M=2.63, SD=1.454) periods;
t (99) = 3.337, p = 0.001.
Table 3.4.6 shows the paired samples statistics of preference towards Health Insurance Pre and
Post advent of the pandemic. The lowest mean with the mean value of 2.58 is found in the
purchase of vehicle before the pandemic. This implies that purchase of vehicle was least
preferred by the respondents. On the other side, Family outing and vacations had the highest
mean with a mean value of 3.27. But after the emergence of the pandemic, Health Insurance
had the highest mean with a mean value of 3.99. Family outing and vacations has the least
mean value of 2.63. This means that after the advent of the pandemic, Health insurance was
highly preferred and family outing and vacations was least preferred by the respondents.
From Table 3.4.6, it can be observed that the p value for paired samples 3,4 and 5 are less than
0.05. Hence the null hypothesis (H0) is rejected. There is significant difference between the
preference of investors towards purchase of house, Health Insurance and family outing and
vacations Pre and Post advent of the pandemic. Only paired sample 1 and 2 is greater than 0.05,
hence the null hypothesis (H0) is accepted.
51
CHAPTER - IV
Findings, Conclusions and Suggestions
4.1 INTRODUCTION
The present study deals with the investor perception towards Health Insurance before and after
the emergence of the pandemic. For this purpose, data was collected from 100 respondents
from across the twin cities of Hyderabad and Secunderabad. The objectives of this study were
to know the different sources influencing the purchase of Health Insurance, awareness about
Health Insurance, different features that are considered, preference and benefits of Health
Insurance. For this study, both primary and secondary data were used. Primary data has been
collected by means of well-designed questionnaire and secondary data was used for conceptual
framework and review of literature.
4.2 FINDINGS
• From the study, it was found that majority of the respondents i.e., 75% of the respondents
has a Health Insurance policy and only 25% of the respondents did not own a Health
insurance policy currently.
• It was also found that 95% of the respondents who had Health Insurance had it before the
emergence of the pandemic and 5% of the respondents took Health Insurance for the first
time after the emergence of the pandemic.
• 14% of the respondents who owned a Health Insurance before the outbreak of the pandemic
had taken an additional Covid-19 specific Health Insurance along with their existing policy.
• Majority of the respondents i.e., 75% of the respondents who took Health Insurance for
the first time after the advent of the pandemic had taken Health Insurance due to the risk
associated with Covid-19 disease.
• 48% of the respondents who do not own a Health Insurance currently may consider buying
a Health Insurance policy and 28% of the respondents were willing to take a Health
Insurance now.
• From the study, it was found that 57% of the respondents had made inquiries to understand
Covid-19 coverage in their existing policy or the policy which they intend to buy and
majority of them i.e., 65% of the respondents felt that there was no change in the amount
of premium and 30% of the respondents felt that there was an increase in the amount of
premium pre and post advent of the pandemic.
52
• It was found that majority of the respondents i.e., 47% agreed and 34% strongly agreed that
Health Insurance was essential but close to 19% of the respondents were neutral or did not
considered Health Insurance essential before the advent of the pandemic. But after the
emergence of Covid-19 disease, 50% of respondents strongly agreed and 41% agreed that
Health Insurance is essential after the advent of the pandemic.
• Before the outbreak of Covid-19 disease, majority of the respondents i.e., 51% agreed and
33% strongly agreed that Health Insurance was important but still close to 16% of the
respondents were neutral or did not consider Health Insurance important, but this trend was
reversed after the advent of the pandemic, Majority of the respondents strongly agreed that
Health Insurance was important.
• It can be noticed that 22% strongly agreed and 36% agreed that Health Insurance was
mandatory in Pre pandemic era and close to 42% were neutral or did not consider Health
Insurance to be mandatory. But after the advent of the pandemic, it can be noticed that close
to 75% of the respondents felt that it was mandatory to have a Health Insurance post advent
of the pandemic.
• From the study, it was found that family and friends highly influenced the respondents
before the advent of the pandemic and after the Covid-19 outbreak and the resultant
lockdown, internet was the source that highly influenced the respondents. All the sources
like insurance agent, television, internet, newspapers, family and friends were significantly
different in Pre and Post advent of the pandemic period.
• It was also found that respondents were least aware about the diseases covered and were
highly aware about the consequences of non-payment in the pre pandemic period. But after
the emergence of the pandemic, respondents were highly aware about the diseases covered
and claim procedure. Tax benefit and consequence of non-payment were not significantly
different and on the other hand, diseases covered and claim procedure were significantly
different in Pre and Post advent of the pandemic period.
• Coverage amount was considered the most important feature by the respondents and
cashless facility was the least important in the Pre pandemic era. But after the Covid-19
outbreak, illness covered and coverage amount were considered the most important feature
by the respondents. Coverage amount was not significantly different apart from that all the
features like illness covered, large network of hospitals, cashless facility and duration of
health coverage were significantly different in Pre and Post advent of the pandemic period.
53
• In the Pre pandemic era, maternity coverage benefits had the least influence on the
respondents and protection against high medical cost highly influenced the respondents.
After the advent of the pandemic, covering risk and protection against high medical cost
had the highest influence and maternity coverage benefits had the least influence on the
respondent. Tax benefit was not significantly different in pre and post advent of pandemic
period and apart from that all the other benefits like covering risk, protection against high
medical cost and maternity coverage benefit were significantly different in Pre and Post
advent of pandemic period.
• From the study, it was also found that family outing and vacations were highly preferred
by the respondents before the advent of the pandemic. But after the emergence of Covid-
19 disease, Health Insurance was highly preferred and family outing and vacations was
least preferred by the respondents. Purchase of vehicle and investment in precious metals
were not significantly different in pre and post advent of the pandemic. Purchase of house,
Health insurance and family outing and vacations were significantly different in Pre and
Post advent of the pandemic.
4.3 CONCLUSIONS
From the study, it can be concluded that the pandemic had a huge impact on investor’s
perception towards Health Insurance. It was observed that due to the pandemic there is a shift
in investors’ mindset, from thinking that Health Insurance is a priority is now seen as an
essential, mandatory and the most important protective investment during the pandemic. The
level of awareness about the features or benefits of Health Insurance has drastically increased
due to the pandemic and the resultant lockdown mainly due to internet and other sources.
Investors realized that the strain and uncertainty can be avoided with the help of Health
Insurance and many have taken Health Insurance and also Covid-19 specific Health Insurance
after the emergence of Covid-19 disease due to the risk associated with it. A virus that cannot
be seen with necked eyes has helped to open the eyes of many people about the rising medical
cost and the relevance of Health Insurance in the current situation. Thus, the pandemic has
helped to realize the significance of Health Insurance among the investors.
54
4.4 SUGGESTIONS
With respect to the study of investor perception towards Health Insurance per and post advent
of the pandemic, the following suggestions can be given.
• Insurance as a whole is known for selling its products through agents. During the pandemic
and the resultant lockdown, every other activity from buying groceries to education or work
were remotely done by sitting in front of the glaring screens. So, any complaints or
grievances were also resolved digitally. This would impact the business in the long run as it
is losing its personal touch with their customers. During the pandemic, a lot of people were
stressed about Covid-19 disease, losing their loved once, losing job, work stress and many
other issues. Any business is not successful only by the products it offers but also by keeping
their interaction with customers real, personal and engaging. Hence during these hard times,
these agents should not only contact for selling their products but also have a personal touch
with the policyholders.
• Health Insurance companies should increase their investor awareness or education programs
in order to create awareness about its features, procedure and the relevance of having Health
Insurance during the pandemic.
• Currently the Health Insurance companies provide Covid-19 specific Health Insurance for
short period. Health Insurance companies should offer their policies for long term as it is
not known when everything would get normal.
• Currently, the second wave of Covid-19 has hit India badly. On a daily basis, many people
are losing their lives due to unavailability of beds, oxygen etc. In such a situation, Health
Insurance companies can come forward to develop an application or a website for its
policyholders based on the policyholder’s location to check the nearest availability of beds,
oxygen cylinders or plasma as these Health Insurance companies have tie ups with a large
network of hospitals.
55
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I
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II
ANNEXURE
Questionnaire on Investor’s Perception towards Health Insurance
Pre and Post Advent of the Pandemic
Name: _____________________
Age:
a) Below 20 years
b) 20 - 29 years
c) 30 - 39 years
d) 40 - 49 years
e) Above 50 years
Gender:
a) Male
b) Female
Occupation:
a) Self-employed
b) Salaried employee
c) Homemaker
d) Retired
Annual income:
a) Below Rs. 5,00,000
b) Rs.5,00,001 to Rs.10,00,000
c) Rs.10,00,001 to Rs.15,00,000
d) Above Rs.15,00,000
III
1. Do you currently have a Health Insurance policy?
a) Yes
b) No
1 i) If Yes, since how long did you have the current Health Insurance policy? [Only answer
this question, if your option to question number 1 is a)]
a) I had taken Health Insurance before the advent of pandemic.
b) I had taken Health Insurance for the first time during the pandemic.
1 i a) Have you taken an additional Covid-19 specific Health Insurance policy along with
your existing policy? [Only answer this question, if your option to question number 1 i) is a)]
a) Yes
b) No
1 i b) Is the risk associated with Covid-19 disease the reason for you to take Health Insurance
[only answer this question, if your option to question number 1 i) is b)]
a) Yes
b) No
c) Maybe
1 ii) If No, do you consider taking Health Insurance now? [only answer this question, if your
option to question number 1 is b)]
a) Yes
b) No
c) Maybe
2. Have you made enquiries to understand Covid-19 coverage in your existing policy or
intended health covers?
a) Yes
b) No
IV
3. Is there a change in the premium amount after the advent of the pandemic?
a) Reduction in the amount of premium
b) No change
c) Increase in the amount of premium
4. State the level of agreement for the following.
Pre-Pandemic
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
a) Health Insurance is essential
b) Health Insurance is
important
c) Health Insurance is
mandatory
Post Advent of Pandemic

a) Health Insurance is essential
b) Health Insurance is
important
c) Health Insurance is
mandatory
5. Sources influencing the purchase of Health Insurance.
Pre-Pandemic
Very low Low Moderate High Very High

a) Insurance Agents
b) Television
c) Internet
d) Family and Friends
V
e) Newspapers

a) Insurance Agents
b) Television
c) Internet
d) Family and Friends
e) Newspapers
6. Level of awareness for the following.
Pre-Pandemic
Not at all Slightly Moderately Very Extremely

aware aware aware aware aware
a) Diseases covered
b) Claim procedure
c) Tax benefits
d) Consequences of
non-payment

a) Diseases covered
b) Claim procedure
c) Tax benefits
d) Consequences of
non-payment
VI
7. Features considered for the purchase of Health Insurance.
Pre-Pandemic
Slightly Moderately Very

Unimportant Important
Important Important Important
a) Coverage
amount
b) Illness covered
c) Large network
of hospitals
d) Cashless facility
e) Duration of
health coverage

a) Coverage
amount
b) Illness covered
c) Large network
of hospitals
d) Cashless facility
e) Duration of
health coverage
8. Benefits influencing the choice of Health Insurance policy.
Pre-Pandemic
Very low Low Moderate High Very High

a) Tax benefits
b) To cover risk
c) High medical cost
VII
d) To avail Maternity
coverage benefits

a) Tax benefits
b) To cover risk
c) High medical cost
d) To avail Maternity
coverage benefits
9. State the level of preference for the following (Rank 1-5, 1 being the least preferred and 5
being the most preferred)
Pre-Pandemic
1 2 3 4 5
a) Purchase of Vehicle
b) Investment in Precious metals
c) Purchase of House
d) Health Insurance
e) Family outing and vacations

a) Purchase of Vehicle
b) Investment in Precious metals
c) Purchase of House
d) Health Insurance
e) Family outing and vacations
VIII

Study of Investor Perception Towards Health Insurance Pre & Post Advent of The Pandemic

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Study of Investor Perception Towards Health Insurance Pre & Post Advent of The Pandemic

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Study of Investor Perception Towards

Health Insurance Pre & Post Advent of the

Submitted in part fulfillment of M.Com (Applied Finance)

St. Francis College for Women,

I, Ms. Elisa Thomas, Roll Number 121319037010, a student of M.Com II

Date: 15th May 2021

Place: Hyderabad Elisa Thomas

M.Com II (Applied Finance)

St. Francis College for Women,

I would like to thank Ms. S. Latha Subramaniam, Head of the Department,

Lastly, I would like to thank all the respondents of my questionnaire without

Chapter Content Page

1.2 Problem Statement 1

1.7 Research Methodology 3

II CONCEPTUAL FRAMEWORK & REVIEW OF 5 - 26

2.1 Conceptual Framework 5

2.2 Review of Literature 20

IV FINDINGS, CONCLUSIONS AND SUGGESTIONS 52 - 55

Annexure III - VIII

Table Table Title Page

3.2.4 Annual Income 30

3.3.1 Owning a Health Insurance 31

3.3.2 Duration of the current Health Insurance 32

3.3.3 Additional Covid-19 specific Health Insurance along 33

3.3.5 Consideration for taking Health Insurance 35

3.3.6 Inquiries to understand Covid-19 coverage in existing or 36

3.3.7 Change in premium amount after the advent of the pandemic 37

3.3.9 Health Insurance is Important 39

3.3.10 Health Insurance is Mandatory 40

3.4.1 Reliability Statistics 41

3.4.2 Descriptive Statistics and Paired sample t-test of Level of 42

3.4.3 Descriptive Statistics and Paired sample t-test of Sources 44

3.4.4 Descriptive Statistics and Paired sample t-test of Features of 46

3.4.5 Descriptive Statistics and Paired sample t-test of Benefits 48

3.4.6 Descriptive Statistics and Paired sample t-test of Preferences 50

Figure Name of the figure Page

3.2.4 Annual Income 30

3.3.1 Owning a Health Insurance 31

3.3.2 Duration of the current Health Insurance 32

3.3.3 Additional Covid-19 specific Health Insurance along 33

3.3.5 Consideration for taking Health Insurance 35

3.3.6 Inquiries to understand Covid-19 coverage in existing or 36

3.3.7 Change in premium amount after the advent of the pandemic 37

3.3.9 Health Insurance is Important 39

3.3.10 Health Insurance is Mandatory 40

1.2 PROBLEM STATEMENT

H0 = There is no significant difference between the level of awareness towards Health

H0 = There is no significant difference between the preference of investors towards different

1.7 RESEARCH METHODOLOGY

1.7.2 Time period

1.7.3 Tools and Technique

1.7.4 Sample Size

A sample size of 100 was considered for this study.

Meaning of Health Insurance

Importance of Health Insurance

• Large Network of Hospitals:

• Duration of Health Cover:

• Pre and Post Hospitalization:

• Day Care & OPD Charges:

Health Insurance in India

Types of Health Insurance in India

2. Individual Health Insurance:

3. Family Floater Health Insurance: