Chapter

CONSUMER BEHAVIOUR TOWARDS HEALTH INSURANCE
CHAPTER-1
INTRODUCTION
1
INTRODUCTION
INSURANCE
“Insurance is a contract between two parties whereby one party called insurer undertakes in
exchange for a fixed amount of money on the happening of a certain event.” Insurance is a
protection against financial loss arising on the happening of an unexpected event.
Insurance is a means of protection from financial loss. It is a form of risk

management primarily used to hedge against the risk of a contingent, uncertain loss.
An entity which provides insurance is known as an insurer, insurance company, or insurance

carrier. A person or entity who buys insurance is known as an insured or policyholder. The
insurance transaction involves the insured assuming a guaranteed and known relatively small
loss in the form of payment to the insurer in exchange for the insurer's promise to compensate
the insured in the event of a covered loss. The loss may or may not be financial, but it must
be reducible to financial terms, and must involve something in which the insured has
an insurable interest established by ownership, possession, or pre-existing relationship.
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The insured receives a contract, called the insurance policy, which details the conditions and
circumstances under which the insured will be financially compensated. The amount of
money charged by the insurer to the insured for the coverage set forth in the insurance policy
is called the premium. If the insured experiences a loss which is potentially covered by the
insurance policy, the insured submits a claim to the insurer for processing by a claims
adjuster.
HISTORY
The business of life insurance in India in its existing form started in India in the year1818
with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the
important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,with a
capital contribution of Rs. 5 crore from the Government of India. The General insurance
business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd.,
the first general insurance company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
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1957: General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973. 107 insurer samalgamated and
grouped into four companies’ viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. And the United India
Insurance Company Ltd. GIC incorporated as a company.
REGULARATORY BOBY
IRDA (The Insurance Regulatory and Development Authority)
The IRDA Act, 1999 was passed as per the major recommendation of the Malhotra
Committee report (1994) which recommended establishment of an independent regulatory
authority for insurance sector in India. Later, It was incorporated as a statutory body in April,
2000. The IRDA Act, 1999 also allows private players to enter the insurance sector in India
besides a maximum foreign equity of 26 per cent in a private insurance company having
operations in India. The FDI limit in insurance sector was raised to 49% in July 2013. It
serves as an Authority to protect the interests of holders of insurance policies, to regulate,
promote and ensure orderly growth of the insurance industry and for matters connected
therewith. IRDA role is to protect rights of policy holders & they provides registration
certification to life insurance companies & responsible for renewal, modification,
cancellation & suspension of this registered certificate.
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Role of the Insurance Regulatory and Development Authority (IRDA)
The Insurance Regulatory and Development Authority (IRDA) was constituted to regulate
and develop insurance business in India. As a key part of its role, it is responsible to protect
the rights of policyholders. In order to create awareness about IRDA, it's role, duties and
responsibilities are stated here under:
IRDA provides a certificate of registration to a life insurance company. IRDA is responsible

for the renewal, modification, withdrawal, suspension or cancellation of this certificate of
registration.
IRDA frames regulations on protection of policyholders' interests thus offering policyholders

the right to voice their complaints against insurers or insurance companies.
The IRDA has set up the grievance redressal cell to take up the complaints of the
policyholder. It specifies the requisite qualifications, code of conduct and practical training
for intermediaries or insurance intermediaries and agents.
It specifies the code of conduct for surveyors and loss assessor, also promoting efficiency in
the conduct of insurance businesses.
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It promotes and regulates activities of professional organisations connected with life

insurance, it also levies fees and other charges to carry out the purposes of the IRDA Act.
It can call for information from, undertake the inspection of, conduct enquiries and
investigations including the auditing of insurers, intermediaries, insurance intermediaries and
other organisations connected with the business of life insurance.
It specifies the form and manner in which books of account should be maintained and
statements of accounts should be rendered by insurers and other insurance intermediaries.
It regulates the investment of funds by insurance companies. The IRDA also regulates the
maintenance of margins of solvency. It adjudicates disputes between insurers and
intermediaries or insurance intermediaries.
It specifies the percentage of premium income of the insurer to finance schemes for the
promotion and regulation of certain specified professional organizations.
INSURANCE INDUSTRY
CLASSIFICATION:
1. LIFE INSURANCE
2. NON LIFE INSURANCE OR GENERAL INSURANCE
LIFE INSURANCE:
Human life is subject to risks of death and disability due to natural and accidental cause.
When human life is lost or a person is disabled parentally or temporarily, there is a loss of
income to the household. The family is put to hardship. Sometimes, survival itself is at stake
for the dependents. Risks are unpredictable. Death/disability may occur when one least
expects it. An individual can protect him/herself against such contingencies through life
insurance.
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Life insurance is insurance on human beings. Though Human Life cannot be valued, a
monetary sum could be determined which is based on loss of income in future years. Hence
in life insurance, the sum assured is by way of a ‘benefit’ in the case of life insurance. Life
insurance products provide a definite amount of money to the dependents of the insured in
case the life insured dies during his active income earning period or becomes disables on
account of an accident causing reduction/complete loss in his income earnings.
An individual can also protect his old age when he ceases to earn and has no other means of
income – by purchasing an annuity product.
There are a number of life insurance products which offer protection and also coupled with
savings.
A term insurance product provides a fixed amount of money on death during the period of
contract, A whole life insurance product provides a fixed amount of money on death.
An endowment Assurance product provided a fixed amount of money either on death during
the period of contract or at the expiry of contract if life assured is alive.
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A money back assurance product provides not only fixed amount which are payable on
specified dates during the period of contract, but also the full amount of money assured on
death during the period of contract.
An annuity product provides a series of monthly payments on stipulated dates provided that
the life assured is alive on the stipulated dates
A linked product provides not only a fixed amount of money on death but also sums
of money which are linked with the underlying value of assets on the desired dates.
There are a variety of life insurance product to suit the needs of various categories of
people- children, youth, women, middle age person, old people; and also rural people, film
actors and unorganised labourers.
Life insurance product could be purchased from registered life insurers notified by the IRDA.
Insurers appoint insurance agents to sell their products. Public who are interested to buy life
insurance products should receive proper advice from insurance agents/insurer so that a right
product could be suit particular financial needs. Thus life insurance policies offer protection
and security to families and provide happiness to society.
VARIOUS LIFE INSURANCE COMPANIES:
Aviva India
Bajaj Allianz Life Insurance
Birla Sun Life Insurance Company Limited
Exide Life Insurance
HDFC Standard Life Insurance
ICICI Prudential Life Insurance
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IDBI Federal Life Insurance
India First Life Insurance Company
NON LIFE INSURANCE OR GENERAL INSURANCE:
GENERAL INSURANCE
General insurance covers insurance of property against fire, burglary, theft; personal
insurance covering health, travel and accidents; and liability insurance covering legal
liabilities. This category of insurance virtually covers all forms of insurance except life. Other
covers may include insurance against errors and omissions for professionals, credit insurance
etc. Common forms of general insurance are motor, fire, home, marine, health, travel,
accident and other miscellaneous forms of non-life insurance.
Unlike life insurance policies, the tenure of general insurance policies is normally not that of
a lifetime. The usual term lasts for the duration of a particular economic activity or for a
given period of time. Most general insurance products are annual contracts. There are
however, a few products which have a long term.
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VARIOUS GENERAL INSURANCE COMPANIES:
• Bajaj Allianz General Insurance
• Bharti AXA General Insurance
• Cholamandalam MS General Insurance
• ECGC (Export Credit Guarantee Corporation of India)
• Future Generally India Insurance Company Ltd
• HDFC ERGO General Insurance
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HEALTH INSURANCE
Health insurance can be defined as insurance against the future medical expenditure of a
person. This means that when someone takes a health insurance plan he or she expects a
certain amount of medical expense to be there in future and that individual is paying for that
in the present in the form of premium. The main aim of a health insurance plan is to make
sure that people have enough money to take care of their emergency medical requirements
when they get old.
However, a health insurance policy does not always cover every possible health problem
someone might encounter in the future. There are certain terms and conditions agreed to by
the insured (person who is taking the plan), and the insurer (entity that is providing the plan)
and the entire procedure happens according to what has been agreed to in the contract.
STAND ALONE HEALTH INSURANCE COMPANIES:
• Apollo Munich Health Insurance Company Limited
• Star Health and Allied insurance Co Ltd
• Cigna TTK
• MAX Bupa Health Insurance Company Ltd
• Religare Health Insurance Co Ltd
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MARKETING MIX IN HEALTH INSURANCE INDUSTRY
PRODUCT: A product means what we produce. If we produce goods, it means tangible

product and when we produce or generate services, it means intangible service product. A
product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance company
sells services and therefore services are their product. In India, there are many companies
offering health insurance services to the users. There is various product of the companies
which provides various benefits to customers like pre & post hospitalization, tax rebate,
restore benefit, etc.
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PRICE:
With a view of influencing the target market or prospects the formulation of pricing strategy
becomes significant. The pricing in insurance is in the form of premium rates. There are
many factors used for determining the premium rates under a health insurance plan like pre-
existing medical conditions, family medical history, BMI, etc. The premium rates are revised
if there are any significant changes in any of these factors.
•Pre-existing medical conditions: The policyholder or applicant will need to provide your
own health records to ensure there aren’t any pre-existing medical conditions. But if, you do
have any pre -existing conditions, then the company can choose to allow it in their policies or
can even decide not to cover it, and if the insurance company cannot cover it under the health
insurance then the policyholder will need to bear the costs. Thereby increasing and affecting
the premium.
• Family medical history: If the policyholder’s family have certain medical ailments their
premiums may be higher than others. No one can do anything with their genes. If the
policyholder’s family has a medical history of illnesses such as heart diseases, cancer or any
other, that puts you at a risk and it increases the individual’s rate of premium.
•Body Mass Index (BMI): People with high BMI have a significantly higher rate of
premium than people with normal BMI. The reason again being this can lead to various
ailments such as heart problems, joint problems, diabetes, to name a few. People with higher
BMI may even need specialized treatment, for normal procedures like pregnancy. Thereby
making even simple process a little tedious and affects the premium rates.
PLACE:
This component of the marketing mix is related to two important facets
I) Managing the insurance personnel, and
II) Locating a branch.
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The management of agents and insurance personnel is found significant with the viewpoint of
maintaining the norms for offering the services. This is also to process the services to the end
user in such a way that a gap between the services- promised and services - offered is bridged
over. In a majority of the service generating organizations, such a gap is found existent which
has been instrumental in making worse the image problem. The transformation of potential
policyholders to the actual policyholders is a difficult task that depends upon the professional
excellence of the personnel. The agents and the rural career agents acting as a link, lack
professionalism.
PROMOTION:
The insurance services depend on effective promotional measures. In a country like India, the
rate of illiteracy is very high and the rural economy has dominance in the national economy.
It is essential to have both personal and impersonal promotion strategies. In promoting
insurance business, the agents and the rural career agents play an important role. Due
attention should be given in selecting the promotional tools for agents and rural career agents
and even for the branch managers and frontline staff. They also have to be given proper
training in order to create impulse buying. Advertising and Publicity, organisation of
conferences and seminars, incentive to policyholders are impersonal communication.
Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and
publicity drive through the mobile publicity van units would be effective in creating the
impulse buying and the rural prospects would be easily transformed into actual policyholders.
PEOPLE:
Understanding the customer better allows to design appropriate products. Being a service
industry, which involves a high level of people interaction, it is very important to use this
resource efficiently in order to satisfy customers. Training, development and strong
relationships with intermediaries are the key areas to be kept under consideration. Training
the employees, use of IT for efficiency, both at the staff and agent level, is one of the
important areas to look into. Human resources can be developed through education, training
and by psychological tests. Even incentives can inject efficiency and can motivate people for
productive and qualitative work.
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PROCESS:
The process should be customer friendly in health insurance industry. The speed and
accuracy of payment is of great importance. The processing method should be easy and
convenient to the customers. Installment schemes should be streamlined to cater to the ever-
growing demands of the customers. IT & Data Warehousing will smoothen the process flow.
IT will help in servicing large no. of customers efficiently and bring down overheads.
Technology can either complement or supplement the channels of distribution cost
effectively. It can also help to improve customer service levels. The use of data warehousing
management and mining will help to find out the profitability and potential of various
customers product segments.
PHYSICAL EVIDENCE:
Distribution is a key determinant of success for all insurance companies. Today, the
nationalized insurers have a large reach and presence in India. Building a distribution
network is very expensive and time consuming. Technology will not replace a distribution
network though it will offer advantages like better customer service. Finance companies and
banks can emerge as an attractive distribution channel for insurance in India. In Netherlands,
financial services firms provide an entire range of products including bank accounts, motor,
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home and life insurance and pensions. In France, half of the life insurance sales are made
through banks. In India also, banks hope to maximize expensive existing networks by selling
a range of products. The physical evidences include signage, reports, punch lines, other
tangibles, employee dress code etc.
COMPETITIVE STRUCTURE
The health insurance market was dominated by non-life insurance companies having
significant proportation of business.
Public vs. private
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Public health insurance companies were having major part of share in the industry i.e. 62%,
but the private players have almost doubled there share in last 4 years from around 20% to
38%
Mordern trends in health insurance industry
1). New IRDA Regulations

IRDA keeps issuing new regulations so as to keep the insurance industry focused on
public interest rather than blindly making profits. The key regulations issued by IRDA
for the year 2013 are going to be crucial and will lead to redesigning of the products,
not only those being planned to offer in the future but also which are already being
sold in the market. Some of the new regulations for the year 2013 are as follows.
• The insurer will be liable to pay a minimum of 50% of the cost incurred on pre-
insurance medical check-up
• Lifelong renewability is going to be a mandatory feature in all health insurance
policies
• Customer information has to be summarized in one page so that to enable him to get
through the key benefits and exclusions of a plan easily
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• NCB will no more go down to zero even after a claim. Earlier, the earnestly earned
NCB would fall to zero even in case of a nominal claim.
• The insured will no more be obliged to incur the loading charge for getting his
policy renewed (even if he makes a claim in the policy term).
2). Online Sales Channel

Insurance was once perceived as the most mis-selling product, courtesy dishonest
insurance agents. But with the advent of online platforms there has been a steep
decrease in the selling of insurance policies through agents, followed by busting of
that perception. In 2013, agents are going to lose a bit more ground to the online
comparison portals, which not only saves time, money and effort of the customer but
also makes the whole insurance buying thing more transparent than ever.
3). Adoption of Global Strategies

With all those foreign joint ventures and collaborations, Indian insurance industry is
likely to keep inculcating global expertise and international strategies leading to an
overall increase in efficiency and effectivity of the whole insuranc e sector. The claim
process is likely to become faster and more streamlined and the document submission
is expected to go online.
4). Increased Penetrability

The healthcare industry in India is growing fast. The third largest fraction of
workforce in India works for healthcare industry. There has been a continuous rise in
number of participating medical and paramedical professionals in the healthcare
network, making health insurance more penetrable at ground levels. This is further
bolstered by govt. driven awareness programs at rural levels, rising healthcare costs,
more awareness among people for health insurance and better healthcare
infrastructure.
5). Integrated Approach

Insurance sector is driven by various forces, competitors, work force, regulating
authority, customers, and healthcare network and professionals. At present, overall
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health insurance domain is going through a rapid transition. The key players are
adopting a 360 degree approach to maximize customer acquisition. Not only they are
constantly expanding their web of network hospitals, clinics and specialty care
centres, but also offering value added services on their plans such as maternity
coverage, day care expenses, lifelong renewability, 24x7 doctor helpline and regular
health check ups. Other insurers have gone a step further and tried to offer products
that integrate the features of both preventive health care plan and health insurance.
6). Specialized Insurance

As of yet, health insurance has worked quite well for the general populatio n. But when
it comes to serving people with a pre-existing condition, no insurer in India (with the
possible exception of Star Health) has come forward and taken the responsibility to
serve the niche. This is better known from the fact that health insurance cover for HIV
patients, cancer patients and diabetic patients are so few that they can be counted on
fingers. Even old aged are either plainly denied a coverage or end up paying high
premiums for getting a decent cover.
7). Employer-Sponsored Wellness Programs

As a legal obligation, employers are supposed to give cover to their employees under
a group health insurance plan. But as the health care costs continue to rise drastically,
the corporations are rethinking on how to save the money. One way most of them hav e
come up, is to penalize unhealthy individuals like smokers and alcoholics and
rewarding those who participate in healthy habits like joining a fitness club and taking
up regular exercises. In a literal sense, companies are increasingly getting involved i n
organizing wellness programs and inspiring employees to ado pt healthy lifestyle.
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ANALYSIS OF HEALTH INSURANCE SECTOR
SWOT ANALYSIS
1. STRENGTHS:
1. New Products-A range of new products had been launched to cater to different segments of the market,
while traditional agents were supplemented by other channels including the internet and bank branches.
2. Business Growth-These developments were instrumental in propelling business growth, in real terms, of
19% in life premiums and 11.1% in non -life premiums between 1999 and 2003.
3. Rise in per capita Income-India has a large population with an increase in its per capita income.
4. Emerging Middle Income Group-India’s middle income group is rapidly increasing and would be
emerging as a profitable market.
2. WEAKNESS:
1.Low investment-India is among the lowest-spending nations in Asia in respect of purchasing insurance
(China, which spent USD 36.3 per capita on insurance products & Indian spent USD 16.4)
2.Dominance of Public sector-Even after the liberalization of the insurance sector, the public
sector Insurance companies have continued to dominate the insurance market.
3.Promotion as a Barrier-In the long run, other forms of non-price competition like
aggressive advertisement wars are likely to lead increasing costs, eventually harming the interests of the
consumers
.
4. Old tariff structure-A key challenge for India’s non
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-life insurance sector will be to reform the existing tariff structure. From a pricing perspective, the Indian
non-life segment is still heavily regulated
5. Limited facilities-Reinsurance is only provided by GIC. Therefore limited facilities hamper the insurance
sector.
3. OPPORTUNITIES:
1.Creation of stronger demand-India’s improving economic fundamentals will support faster growth in
per capita income in the coming years, which will translate into stronger demand for insurance products.
2. Strong future growth-Strong growth can be sustained for 30-40 years before the market reaches
saturation. There is plenty of room for growth in personal accident, health and other liability classes.
3. Rise in Income and Awareness-Rising household income and risk awareness will be the key catalysts
to spurring more demand for these lines of business in the future.
4. THREATS:
1. Political environment-The political environment is not conducive to constructive changes.
2.Legal and financial facilities :The legal framework, bureaucracy and financial
infrastructure worsen the insurance business environment.
Pest analysis
1.Political factors:
• Insurance business in rural/social sector
• Renewal of registration
• Tax policy and insurance sector
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2.Economical factors:
• Adequacy of capital
• Interest rate
• Inflation rate
• Unemployment & poverty
3. Socio-cultural factors:
• Lifestyle
• Level of education
• Societal benefits
• Level of earning
4. Technological factors:
• Maintaining the database

• E-business insurance in India
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COMPANY PROFILE
OMNIS HEALTHCARE SERVICES PRIVATE LIMITED
OVERVIEW
Omnis Healthcare Services Private Limited is a Private incorporated on 16 October 2015. It

is classified as Non-govt Company and is registered at Registrar of Companies, Kanpur. Its
authorized share capital is Rs. 100,000 and its paid up capital is Rs. 100,000. It is involved in
Business activities n.e.c.
Omnis Healthcare Services Private Limited's Annual General Meeting (AGM) was last held
on N/A and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was
last filed on N/A.
Directors of Omnis Healthcare Services Private Limited are Kuldeep Singh, Dinesh Kumar
Suri, and Sanjay Prasad.
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GOAL:
To be the best service provider and focus on customer satisfaction.
MISSION:
We focus on understanding you and your needs, and then deploy solutions precisely based on
them. Our mission is to help you be the best version of yourself, in terms of health, and help
you become the rock star of your life.
Company Details:
• Company Status: Active

• Registration Number: 73921
• Company Category: Company limited by Shares
• Company Sub Category: Non-govt company
• Class of Company: Private
• Date of Incorporation: 16 October 2015
• Age of Company: 1 years, 9 months, 15 days
• Address: 1/4th floor Najafgarh road, Tilak Nagar, New Delhi
• Email id: Helpdesk@gmail.com
• Industry: Healthcare and wellness
• Organisation structure: Employees-149
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CHAPTER-2
LITERATURE REVIEW
25
The Various studies related directly or indirectly with the objectives of the present study were
reviewed. Gumber and kulkarni (2000) undertaken a case study in Gujarat and provided
that SEWA a type of health insurance scheme is strongly preferred by those who can’t afford
and also not access the services of various other schemes. Sanyal (1996) examined that the
burden of health care expenditure in rural areas was twice in 1986- 87 as compared to 1963-
64 and also provided that household is the main contributor to the financing of health care in
India, so the health planners would have to pay more consideration regarding this. Asgary,
Willis, Taghvari and Refeian (2004) estimated the demand and willingness to pay for health
insurance by rural households in Iran and concluded that a significant percentage of
population (more than 38%) live in rural areas, but the health care insurance currently
operating in urban areas. (Bawa & Ruchita, 2011) examined that there was low level of
awareness and willingness to join and there were seven key factors acting as a barrier in way
of opting for health insurance. This present study very closely relates to what we are trying to
achieve in our research i.e. to ascertain the level of willingness and awareness among general
population of Rohtak district of Haryana. Ahuja and De (2004) confirmed that the demand
for health insurance is limited where a supply of health services is weak. Ahuja and Narang
(2005) provided an overview of existing forms and emerging trends in health insurance for
low income segment in India and concluded that health insurance schemes have considerable
scope of improvement for a country like India by providing appropriate incentives and
bringing these under the regulatory ambit. Lofgren et al. (2008), this study conducted in
Vietnam it was found that willingness to pay for health care services was directly
proportional to the level of income, education, size of family and the number of lingering
diseases in a household. Dror (2007) examined why the ―one-size-fits-all‖ health insurance
products are not suitable to low income people in India and provided that there is presence of
considerable variability to pay for health insurance. Sbarbaro (2000) observed that the
groups of people who are most likely to face health related issues are the lower income level
group.
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ABOUT THE TOPIC
The research on the utilization of health services suggests important" independent" or

process, and "dependent" or outcome variables that might be incorporated into a theoretical
framework for the study of access to health care also. Ronald Andersen and John Newman, in
their article entitled, "Societal and Individual Determinants of Medical Care Utilization,"
published in the Winter 1973 Milbank Memorial Fund Quarterly, for example, describe a
comprehensive model of the indivdual and societal determinants of utilization that suggests
important substantive categories for the study of access. Further, they point out that
some of the determinants of utilization are capable of being altered by public policy-income,
insurance coverage, physician-population ratios-while others are not-age, sex, race. The
manipulatable predictors they call "mutable" variables and those that cannot be changed by
health policy in the short run "immutable." The basic framework for the study of access
presented in Figure I then is based on the research on social indicators, on the utilization
literature and on the existing material on "access" itself as a concept.
Process indices, as suggested in the theoretical model of the access concept, refer to
characteristics of the delivery system or characteristics of the population-at-risk that affect
people's use of and satisfaction with care. The indices which I would like to look at for
various population subgroups are (1) whether one has a regular source of medical care, (2)
the time spent waiting to get an appointment and (3) the time spent wai ting in the doctor's
office. These measures reflect something of the process of consumers' gaining entry to the
health care system and the differential burdens of care-seeking experienced by different
groups in the population.
Source of care, referring to where people report they usually go when they are sick or want
advice about their health, influences whether they seek care. More importantly, once the
decision to seek care is made, the regular source largely determines the type, site,
volume and continuity of care the patient received. Further, there is evidence that people who
have a regular attending physician are more satisfied with the care they receive than those
who do not have a particular place they can go when the need arises (Table I and Appendix
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A). Approximately 11 percent of the sample could identify no medical person or place that
they went to for medical advice or treatment on a routine basis. The majority of the
respondents reported they had a medical doctor-general practitioner or specialist-as their
regular source of care. About 19 percent of the people indicated a clinic as their usual care
source. Children were least apt to report having no regular source of care. They were more
likely to have clinics as their usual source of care, compared to the other age groups. Those
children who reported a physician as their usual source were more apt to go to specialists than
to general practitioners. Children under the care of pediatricians probably account for this
difference, since paediatricians are defined as specialists. (Those age groups most likely to
report no regular source of care were the young and middle-aged adults.) Males were
somewhat less likely to report a regular source of care than females. Women were also more
apt to have a specialist as a usual source than men. This difference is probably because
women have obstetrician-gynecologist-type practitioners (who are also defined as specialists)
as their usual source of care.
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CHAPTER-3
RESEARCH METHODOLOGY
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The word research is derived from the Latin word meaning to know. It is a systematic and a
replicable process, which identifies and defines problems, within specified boundaries. It
employs well-designed method to collect the data and analyses the results. It disseminates the
findings to contribute to generalize able knowledge. The characteristics of research presented
below will be examined in greater details later are:
Systematic problem solving which identifies variables and tests
relationships between them,
Collecting, organizing and evaluating data.
Logical, so procedures can be duplicated or understood by others
Empirical, so decisions are based on data collected
Reductive, so it investigates a small sample which can be generalized to a
larger population
Replicable, so others may test the findings by repeating it.
Discovering new facts or verify and test old facts.
Developing new scientific tools, concepts and theories, which would
facilitate to take decision?
For the proper analysis of data simple statistical techniques such as percentage were use. It
helps in making more generalization from the data available. The data which was collected
from a sample of population was assumed to be representing entire population was interest.
Demographic factors like age, income and educational background was used for the
classification purpose.
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NEED FOR THE STUDY
Health insurance has good market standing and company’s services level are good, which are
largely responsible for its position. The company has to know its market share, the satisfaction
level of customers and also its competitor’s share in the market and problems, which are faced
by the insurance company in order to take appropriate action. Hence, the study titled “Knowing
the Marketing of Health Insurance co. ltd. and Studying the Consumer Behaviour
Towards Health Insurance”has been undertaken.
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OBJECTIVE
1) To assess the awareness level and sources of awareness about health insurance.
2) To examine the type of health insurance preferred by the respondents.
3) To identify the purpose of taking health insurance.
4) To survey the barriers in the subscription of health Insurance.
5) To determine the willingness to join and pay for health insurance.
32
DATA SOURCES:
Data sources are the sources from which we get the information. Data collected through
company approved questionnaires have been used as the primary source of data and also
usage of secondary data wherever applicable.
SECONDARY DATA
This was collected through oral communication. Secondary data about the company profile
and other details were collected from the company brochures through personal discussions
with the company managers .Data pertaining to newspaper industry has been obtained
through the book “The Mass Media and You “by Desmond A.D. Abcro.
Secondary sources:
Website, journals, magazines, newspapers
SAMPLING TECHNIQUE
The location was chosen on a random basis. Even this sample was chosen by simple random
sampling. A sampling technique in which every element of the population of interest has an
equal probability of being included in this sample.
PERIOD OF STUDY
The period of study is 1 month duration (JULY to AUGUST 2017).
LIMITATIONS OF THE STUDY
· The research will be conducted in a limited area.
· The internet information can be irrelevant.
· Time will be a major constraint.
· The respondent will be limited so cannot be treated as a whole population.
· The respondent may be biased.
· Due to language problem it is possible that the respondents are not be able to understand the
questionnaire and can cause misleading.
33
CHAPTER-4
DATA ANALYSIS AND

INTERPRETATION
34
ANALYSIS OF DATA
Table I show that a significant ratio of the sample was male members. Majority of the
respondents belonged to the age groups of below 30years and were married. Maximum of
them were post graduate followed by graduation and higher education and were self
employed. As far as level of income is concerned, a major proportion of the respondents were
having annual income between Rs150000-200000.
TABLE I
PERSONAL PROFILE Frequency Percentage

OF THE
RESPONDENTS Gender
Male 85 70.83
Female 35 29.17
total 120 100
Age Frequency Percentage
Less than 30 60 50
30-40 35 29.17
40-50 15 12.5
Above 50 10 8.33
total 120 100
Marital Status Frequency Percentage
Single 45 37.5
Married 75 62.5
Total 120 100
Education level Frequency Percentage
Middle level 4 3.33
Matric Level 6 5
Higher education 28 23.33
Graduation 34 28
35
Table II depicts the purpose of health insurance as professed by the respondents when they
were queried on their awareness and knowledge of health insurance. A good majority of the
respondents (61.87%) was of the opinion that the health insurance would cover their medical
expenses.
MEDICAL COST TAX GAINS COMPULSION FROM EMPLOYEES OTHERS
TABLE II
PERCEIVED PURPOSE OF Responses % of responses

TAKING HEALTH
INSURANCE Purpose
To protect against high and 112 61.87
unexpected medical cost
Tax gains 53 29.29
Compulsion from employers 9 4.97
Others 7 3.87
Total 181 100
36
Table III shows that a significant proportion of population preferred government health
insurance schemes (52.5%) over private schemes (37.5%).
TABLE III
TYPE OF HEALTH Frequency %

INSURANCE
PREFERRED Preference of
Health Insurance
Private 45 37.5
Govt. 63 52.5
Others 12 10
Total 120 100
PVT. GOVT. OTHERS
37
Table IV shows that there are number of factors which act as barriers in the contribution of
health insurance. All these barriers were taken in the form of variables and respondents were
asked to give their response on five point likert scale ranging from strongly agree to strongly
disagree. Where 5 signifies strongly agree, 4 signifies agree, 3 Uncertain, 2 signifies disagree
and 1 signifies strongly disagree. The majorly consider being most affecting barrier in the
subscription of health insurance is lack of reliability and comprehensive coverage(51.67%).
TABLE IV
BARRIERS IN SA A U D SD Total
THE 5 4 3 2 1
SUBSCRIPTION
OF HEALTH
INSURANCE
Barriers
Lack of Funds to 44(36.67) 25(20.83) 11(9.17) 23(19.17) 17(14.17) 120
Meet Costly
Affair
Lack of 29(24.17) 31(25.83) 15(12.5) 25(20.83) 20(16.67) 120
Awareness and
Willingness to
Join
Lack of 45(37. 27(22.5) 8(6.67) 25(20.83 15(12.5) 120
Intermediaries
38
CHAPTER-5
CONCLUSION
39
CONCLUSION
Insurance is a large investment and you will most likely purchase multiple
policies throughout your lifetime. It is essential that you know what each type of
insurance covers and how it works so you can make the best decision about what
to buy. Do not base your decision on just what is cheapest, but look at what it
provides.
Take the time to shop around and find the right insurance for your situation.
People often say they cannot afford insurance, but the reality is that they cannot
afford not to have it. It can save them from thousands or more in unplanned
expenses when unexpected situations arise. You do not want to waste your
money on policies that do not meet your nee ds, but the right health insurance
policy can protect you and your family from unforeseen disasters.
The Marketing mix is a very important aspect of creating marketing strategies.
Once a company develops a product or service that will meet customers need, it will be either
through direct or indirect channels and sometimes multiple channels.
The company will determine how to communicate about the product to the public. Finally,
the company will determine the price of the product or service that ensures profit.
40
RECOMMENDATIONS
The recommendations are as follows:
An intense AIDA model needs to be adopted the AIDA model (Awareness, Internet, Desire,
and Action).
To create the awareness regarding Product through
1. Print & Electronic Media Advertisement should be done (As we can see intense ad
campaign of HDFC Standard Life and Bajaj Allianz.)
2. After the initial promotional campaign the relative advantage of Insurance Company
should be highlighted over their competitors.
3. Hoardings at prime areas should be used.
4. Regular monitoring of working of companies by IRDA
The insurance sector has largely stuck to images of happy families, carefree couples and cute
babies. We have to use a different route to break the clutter, and humour and endorsement of
celebrities is some of the routes available to us.
41
BIBLIOGRAPHY
• https://en.wikipedia.org/wiki/Insurance
• www.irda.gov.in
• http://omnis.healthcare
• www.policybazar.com
42

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CONSUMER BEHAVIOUR TOWARDS HEALTH INSURANCE

Insurance is a means of protection from financial loss. It is a form of risk

An entity which provides insurance is known as an insurer, insurance company, or insurance

IRDA (The Insurance Regulatory and Development Authority)

Role of the Insurance Regulatory and Development Authority (IRDA)

IRDA provides a certificate of registration to a life insurance company. IRDA is responsible

IRDA frames regulations on protection of policyholders' interests thus offering policyholders

It promotes and regulates activities of professional organisations connected with life

2. NON LIFE INSURANCE OR GENERAL INSURANCE

VARIOUS LIFE INSURANCE COMPANIES:

Bajaj Allianz Life Insurance

Birla Sun Life Insurance Company Limited

Exide Life Insurance

HDFC Standard Life Insurance

ICICI Prudential Life Insurance

IDBI Federal Life Insurance

India First Life Insurance Company

NON LIFE INSURANCE OR GENERAL INSURANCE:

VARIOUS GENERAL INSURANCE COMPANIES:

• Bajaj Allianz General Insurance

• Bharti AXA General Insurance

• Cholamandalam MS General Insurance

• ECGC (Export Credit Guarantee Corporation of India)

• Future Generally India Insurance Company Ltd

• HDFC ERGO General Insurance

STAND ALONE HEALTH INSURANCE COMPANIES:

• Apollo Munich Health Insurance Company Limited

• Star Health and Allied insurance Co Ltd

• MAX Bupa Health Insurance Company Ltd

• Religare Health Insurance Co Ltd

MARKETING MIX IN HEALTH INSURANCE INDUSTRY

PRODUCT: A product means what we produce. If we produce goods, it means tangible

This component of the marketing mix is related to two important facets

I) Managing the insurance personnel, and

II) Locating a branch.

Public vs. private

Mordern trends in health insurance industry

1). New IRDA Regulations

2). Online Sales Channel

3). Adoption of Global Strategies

4). Increased Penetrability

5). Integrated Approach

6). Specialized Insurance

7). Employer-Sponsored Wellness Programs

ANALYSIS OF HEALTH INSURANCE SECTOR

• Maintaining the database

OMNIS HEALTHCARE SERVICES PRIVATE LIMITED

Omnis Healthcare Services Private Limited is a Private incorporated on 16 October 2015. It

To be the best service provider and focus on customer satisfaction.

• Company Status: Active

ABOUT THE TOPIC

The research on the utilization of health services suggests important" independent" or

Systematic problem solving which identifies variables and tests

relationships between them,

Collecting, organizing and evaluating data.

Logical, so procedures can be duplicated or understood by others

Empirical, so decisions are based on data collected

Reductive, so it investigates a small sample which can be generalized to a

Replicable, so others may test the findings by repeating it.

Discovering new facts or verify and test old facts.

Developing new scientific tools, concepts and theories, which would

facilitate to take decision?

NEED FOR THE STUDY

Website, journals, magazines, newspapers